we have had news today from banks here, hsbc based in london and the swiss bank ubs they will be movingng them from london, on to the european continent, because britain would be out of the single market and that would mean that some of their service, they provide from london, would have to be provided from within the european union, and as you say, kirstie, noises off from the foreign secretary, some negative reactions from france, to the comments by borisjohnson and really a negative thought today, from davos.

swiss bank ubs has a four to 22% drop in net income for the fourth quarter of 2016, net -- compared toatitor 49 million in the past years. improving investor confidence in the united states could boost its wealth management business this year. quarterly profits rise 3.6% at u.s. tech giant microsoft. revenues in the second quarter came in at $24 billion. the company says its acquisition of linkedin boosted revenue, but dragged on profits. microsoft has been shifting its dependence from software to broader services, including cloud computing. that's the business news. back to you, chris. chris: next up, the press review. time now for a look at what's making headlines in the papers in france. the presidential race is heating up, and the mainstream rights contender finds himself in hot water. reporter: he does. let's start with the front page or it. a rather clever jibe at the expense of the wife of the social right candidate. the phrase translates roughly as assisted by parliament, as opposed to parliamentary assistants. she claims to have undertaken the role in exchange for a rather hefty

the swiss bank ubs says around a thousand of its london jobs could be affected. to frankfurt. a teenager snatched from a hospital in florida when she was only eight hours old, has defended the woman accused of kidnapping her. lexis manigo, who was named kamiyah mobley at birth, was tracked down after a tip—off. she says the woman she believed was her mother raised her well. she raised me with good morals, respect. she made a big impact on my life. i could go to her about anything. i could tell there was love. it hurt me more that she was in cuffs. like some animal. i don't... that's not her. i've never seen her in cuffs, never. so that moment there was so surreal for me. i understand what she did was wrong, but i don't feel like... just look at my life itself, you know? i understand it was one mistake, but it wasn't all bad. everything that came out of it was not bad. i'm fine. i'm managing. i have another family. that's more love. for the people that have missing kids, this gives them hope, so that makes me feel great. stay with us on bbc news if you can't. much

in swiss bank ubs reported a 22% drop in its fourth-quarter net income. here and the u.s. look at this. dow futures are now down just one point. they were higher by one point. this is but a historic week but the first week of donald trump. they had gained at least 1.1% this week and the dow is ready to snap a two-week losing streak. oil down 41 cents at 5337 a barrel. and gold which has been trending lower over the last sevel days is down six and half dollars a half dollars at 1186. >> 7.7% yesterday. overnight after the trump hannity interview. it is throwing the strength across the board here. and the correlation of the dollar and the yield is back. and now were seen entire right now you can see the yield at 2.5 1%. we had shares of google parent company alphabet down about 2% right now in premarket trading. investors were disappointed with a lower than expected earnings. they were driven down. such as cloud computing and hardware. but at the revenue did rise 22% and that was better than expected. after the company posted gains. microsoft had an 8% increase in its cloud

finally, a big focus on banks today with ubs reporting. reat chart comparing european bank performance over the past year. you can see how ubs has performed against various peers. this is the first book that i wanted to bring up in terms of stocks that i'm watching today. profit more than tripling in the fourth quarter as the banks less money aside for litigation while rising interest rate and stocks boosted the securities unit and u.s. with management. we will talk more on that in just a moment. stockup, we saw this dropped the most since 1986 earlier this week. it cut its outlook and tripled its italy right down, a sharp drop in third-quarter profit, 53% drop in profit. bt is opening slightly lower. ubs stock taking more of a hit. lv mh moving higher. you've got lots more on ubs, matt. let me pick up, actually. we will talk about one of mats favorite subjects, the u.k. grocery sector. piers hillier is still with us. i'm just waiting to see the price of tesco this morning. this book or transaction will be very well-received because it allo

we have had news today from banks here, hsbc based in london and the swiss bank ubs they will be moving jobs or are looking at moving them from london, on to the european continent, because britain would be out of the single market and that would mean that some of their service, they provide from london, would have to be provided from within the european union, and as you say, kirstie, noises off from the foreign secretary, some negative reactions from france, to the comments by borisjohnson and really a negative thought today, from davos. don't forget here, most businesses supported britain remaining in the european union. so it is a particular type of cohort you get in britain, which doesn't mean they speak for the whole of british business. earlier today i interviewed the head of the international monetary fund, christine lagarde, who has been negative about brexit in the past, and i started by asking her if the uk leaving the single market would be bad for britain. you have to look at all the parameters. you have to look at the monetary policy, the exchange rate, the interest that w

and stocks boosted the us wealth management and securities units, whilst the bank also put less money aside for litigation. ubsll facing a us probe into sales of mortgage securities. the bank has $3.2 billion in reserve for legal matters. always good to see you. happy friday. ali bacher doing it again. didn't they recently buy something in the states? they are making a big push in the states, but the country we are talking about today, the affiliate is called ant financial. they are buying moneygram. ant is china's biggest online payments company, and it's one third owed by the boss of eilidh barbour. it's an interesting deal. the business of international payments is a really tough one. it looks quite counterintuitive given that the world is deep globalising. ultimately, this is what ant financial get through this purchase of moneygram, a big brand name and network in america as well as immediate expansion of the global remittances business. how do you say happy new year in china? right back at you. chinese new year tomorrow. let me show you those numbers. the dow on wall street continued extending those gain

. >>> banks show renewed strength in the new year after barclays raises its price target on ubs, credit suisse and deutsche bank. >>> another bad day for apple suppliers. stmicro nears the bottom of the stoxx 600 as morgan stanley cuts the chipmaker to underweight. >>> good morning. let's kick you off with some eurozone services pmi numbers. the final december composite pmi was 54.4. pmi pointing to fourth quarter gdp growth of 0.4% and prices charged rose at the fastest rate since july 2011. finally inflationary pressures coming through. let's look at some of the services pmi. eurozone december pmi at 53.7. the forecast was for a print of 53.1. easily beating expectations. to tell you across the regions we saw in germany a services pmi at a five-month high. italian services pmi was below expectations and showing slowing in december. we did see an uptick in spain and in france an 18-month high. mixed picture here. this following a strong manufacturing pmi earlier in the week. prices ticking up. that's something we have been seeing in the uk. let's give you a view of the european bourses

bank with a custody -- the dividend yield of 4% or 5%. it is probably are kind of framework. the president of ubss told bloomberg his organization will also have to move people out of london. >> we will have to. the question is how many and that will depend on the agreement that the u.k. will reach with the eu. we will have to move bankers and frankfurt, and an appropriate up in spain. we have flexibility to decide where to go but we will definitely have to move. anna: deutsche bank has reached a settlement with the u.s. justice department over its handling of mortgage backed securities before 2008. the bank agreed to pay seven point $2 billion and admitted to misleading investors resolving one of the biggest indication risks. it will pay $4.1 billion in relief for homeowners while the balance is a civil penalty. home prices increase last month in the fewest cities in the musty year. prices including -- gained.g housing that compares with 55 in november and signals that measure deflating a potential housing bubble. they are taking effect. governor saidral the fed may accelerate measures to shrink

and swiss bank ubs said some staff would definitely moved to frankfurt or spain.ng errors. before the watchdog stepped in, ee had decided not to reimburse the majority of affected customers, instead proposing to give their money to charity. the majority of customers have now been refunded. now, if you're looking for a sizeable return on your cash, your options might be limited at the moment, with interest rates at rock bottom levels. well, if you think money doesn't grow on trees, then think again — uk forestry has been one of the best performing asset classes durings the past decade, delivering returns of 19% a year on average. joining me now is anthony crosbie daswson, investment manager at fim services. hello. let's start off about why returns are hello. let's start off about why returns a re pretty hello. let's start off about why returns are pretty good. timber prices are helping returns. and also we are looking at the uk, where actually in terms of demand to supply, actually in terms of demand to supply, there isn't a huge amount of forestry. therefore deman

hsbc said it was preparing to move 1000 staff from london to paris, and swiss bank ubs said some staff to november compared with a year earlier. and its 2.7% if you minus bonuses. that means wages are rising faster than inflation, so we should have more money in our pockets. meanwhile, the number of people looking for work fell slightly by 52,000 to 1.6 million. mobile operator ee has been fined £2.7m by the telecoms regulator, 0fcom, for overcharging more than 30,000 customers a total of around £250,000 in billing errors. before the watchdog stepped in, ee had decided not to reimburse the majority of affected customers, instead proposing to give their money to charity. the majority of customers have now been refunded. a new report today revealed that science research, engineering and technology jobs will grow at science research, engineering and technologyjobs will grow at double the rate of other occupations. it will create 140,000 extra jobs between now and 2023. students currently choosing their gcses are expected to start entering the workplace then. joining me now is clare cannin

and swiss bank ubs said some staff would definitely move to frankfurt or spain. is it usually surprising? -- is it and ubs, is it usually surprising? —— is it hugely surprising. are the of many announcements? it's not necessarily a surprise, we have seen this happen beforehand, with hsbc touting even before the referendum result coming in that they would consider moving some businesses away from london. we have to remember, this isn't moving a lot of business away from london. it's not necessarily going to affect the bottom line of the tax that comes into the uk. this is talking about moving jobs from london to other areas. which of course is talking about moving jobs from london to other areas. which of course isn't fantastic news. is going to change. we don't know how for hsbc or ubs, the business that the uk does with europe, how that is going to change their business and what is done here in london. it may be a case of very much like everything else with brexit, it's waiting to see what's going to happen, waiting to see how this business is going to be done.

bank is launching a five—year plan to win more business off the wealthiest women in the world swiss bank ubss managing director at ubs wealth management. so, what is happening now that isn't serving female clients well? well, women are world creators. influences of world and we believe the financial services industry can do more. actually what is happening now, what is not working is that the women don't feel properly served. they don't feel properly spoken to. they don't feel properly spoken to. they don't feel properly spoken to. they don't relate to their world managers and hence they don't use the tools of the financial industry to their advantage and we are determined to change that. not by pushing out yet an additional financial product for women, but which getting long—term change and revisiting our processes and putting in place a financial confidence programme for women and obviously living internally what we voice externally, which is implementing the female view in everything we do through a gender balance workforce. we believe it will not be the women that will benefit from this,

ubs. they settled some of the high profile cases like the libor case. we have got credit suisse, deutsche bank now settling with the department of justice in the u.s. ubs still needs to do that. however the total tally for ubs is expected to be a lot lower. this quarter, for example, they only set aside 170 million swiss francs. the total tally for litigation provisions in the u.s. is 3.1 billion swiss francs, compared to ubs. we are still waiting for that issue, we are still waiting for french authorities on tax matters. i asked sergio ermotti about that this morning. he didn't have much more clarity on that. ceos of banks are quiet on that type of thing because they can't talk about litigation issues. hopefully this will be settled for ubs in 2017. >> thank you, carolin. stay warm and happy birthday. >>> elsewhere, if you're looking for another reason to celebrate, coming up we will be talking about the year of the rooster. that's right. asia is getting ready to celebrate the chinese new year. we're asking what's in store on the geopolitical front and investors. get in touch with the show, s

bank yet they have done well. when you compare what is happening with ubs with some of the wall street banks, say goldman sachs, orncerned that maybe it does not have the right business model for the next phase? michael: certainly for this quarter, it was definitely a different story than what you saw at the u.s. banks. it did better than the u.s. banks on the equity side, and people were pleasantly side -- surprised. on the fixed income side, they are a lot smaller than they used to be and they did disappoint on that front. they were down in fixed income trading whereas most u.s. banks were up significantly. they attributed that to more of a business makes issue, but certainly the question, if bond trading comes back in a big way, i have been kind of rewarded for getting out of that business. is that trend reversed? tic michael moore, tick by with the uproar we see whether it is brexit, the new trump america, do you see an adjustment in animal spirit or capital investment by banks into 2017? has there been an amendment since november 8? has there been an amendment since june 23? michael: i think there is a swing

deutsche bank and ubs among others seeing big gains here on friday.n the flip side, let's talk auto. shares falling. french prosecutors have opened a probe into whether the auto maker cheated on emission tests. analysts are seeing if there are any parallels to draw to the volkswagen scandal. this comes a day after fiat tumbled 16% on news that the u.s. epa hit that company with a similar accusation. the ceo insists the software is compliant. we are seeing fiat shares come back by about 4% recooping some of yesterday's losses. let's also finish a look with how european stocks are fairing against the s&p 500. we're about two weeks in. you can see stocks in europe up about 1%. slightly underprmpling. >> thank you so much. coming up, the nasdaq hitting another record high. what's the trade heading into next week's inauguration. >>> plus be sure to tune in next week for the exclusive interview with jack lew. that's tuesday at 10:00 a.m. eastern right here on cnbc. we'wn r thes a s we'wn fce >>> good morning, everybody. here's your cnbc news update. secreta

two banks — hsbc and ubs — have confirmed they will transfer jobs from london to europe, after the primexit would mean britain would leave the european single market. our business editor simon jack is at the world economic forum in switzerland. simon, hsbc have talked about this before, they were not bluffing? no, it seems they were not and have been saying for months if we left the single market they would move about 1000 high—paid bankers to paris and we also learned today more about how much business they will take. they will take 20% of hsbc‘s european banking revenue. they would not split it out but it is in the hundreds of millions, potentially billions of revenue, which is not the same thing as profit but a big chunk. ubs confirmed on plans they could move up to 1000 bankers, most likely to frankfurt. this will be a hit to the exchequer. there will be few violins for bankers leaving but these are among the highest—paid people in the country making hundreds of thousand pounds each. the exchequer will see a hit, there will be erosion of london's place in the global marketplace for f

they have to be acutely worried because we have already seen two big banks, hsbc and ubs, signallingir poise to relocate thousands of jobs. —— they are poised. the boss of toyota equally signalled disquiet about how his company, which implies 3000 people in britain, is going to remain competitive post—"brexit". for all theresa may's continued criticism of the so—called international league, the very people in her audience, international league, the very people in heraudience, she needs those people on board to make a success of "brexit" and make sure britain's continued economic prosperity, because like it or not they have in their hands thousands ofjobs in britain, they bring in billions of pounds of investment, and are absolutely central to our economy. it was significant, i think, that theresa may did not repeat her warning earlier in the week that if we do not get a deal we will walk away and have to rely upon world trade organisation rules, raising the terrifying prospect for many of tariffs. she has the hope that business will give her time as well to flesh in some of the detai

in the banking sector, ubs falling, despite net profit falling, total operating income at its wealthagement unit falling 5% in the fourth quarter. credit suisse also falling in today's trade. overall we're looking at european stocks set to end the week higher but still underperforming u.s. stocks in 2017. european stock index up 1.3%, the s&p 500 up about 2.5%. kayla? >> thanks so much, seema. >>> straight ahead on "squawk alley," we'll speak with the head of microsoft's commercial business on the heels of an impressive quarter. his take on the business and the competition, coming up. >>> plus, the mayor of los angeles on the record when it comes to president trump and a trade war with mexico. his take, coming up next. >>> i'm morgan brennan with your "cnbc news update" this hour. a senior iranian clerk is warning president trump not to make mistakes in identifying terrorists, this during friday prayer services in tehran. the cleric also called on trump to refrain from warmongering and arming terrorists. >>> u.s. and south korean troops holding military exercises this week in the mou

jonathan: joining us is bloomberg intelligence senior bank analyst alison williams. looking at ubsice of some of these banks the optimism has yet to be seen. the c.e.o.'s aren't seeing activity among clients has picked up yet. will that happen? alison: they're talking about confidence and that's the leading indicator and they've been hearing it from their corporate clients. goldman was optimistic about that. if you look at this measure of c.e.o. confidence, it's the high nest 10 years and all is a good leading indicator and helpful to activity. however, with ubs, i think the issue really relates to their global wealth business. they're the leader in this business. it's a business people like because it's higher revenue and more stable but they've been having outflows and margin pressure is a concern. jonathan: the concern is the market down 3%age points. what's the options for the c.e.o. now? alison: part of it is the issue of regularization which is referring to money coming out of the bank due to customers having to comply with local taxes. so that is something the c.e.o. said wi

swiss banking is not too big to fail. we are joined by someone from ubs. and mr. trump considers if nato is ancient history. in this hour, the prime minister of sweden. sweden is not a member of nato. neither is russia. good morning, everyone. from a meeting of the world economic forum, i am tom keene. francine lacqua will join me in a moment. it is called today. -- it is adapting to the new world order. we will catch you up on the news in london, with sebastian salek. europe's biggest bank, hsbc, says trading operations that generate about 20% of revenue for the investment bank in london may move to paris. speaking exclusively to bloomberg, stuart gulliver and -- was confident about london's future as a financial capital. stuart: this is a decision british people made, so we need to execute it. but london will return -- london will remain a global mental center. ofelieve the revenue impact brexit on financial services will be made good in two or three years time. i do not see the foreign exchange market moving, the equity market moving, the high-yield bond market

banks. big news. shares at ubs fell 3.8%, the biggest since august last year.s pulling out $15 billion in the final three months of last year. margins at the wealth management business declined for a third straight quarter. sergio ermotti, the she visited, says the closing reflects clients repatriating before the government starts sharing data with pretax abroad. the securities unit -- the companies putting less money aside for litigation. there is a litigation overhang. barclays, in the, up by 29%. ubs come up by 18. ubs, -- credit suisse down. look at the switch from last year. these banks were down 30% to 50% over that period. at the rising rate environment is boosting all shifts. tesco-booker -- a deal that but -- caught many by surprise. and analysts said it is a game-changing deal. it came completely from left field. andrea will tell us more. love this chart -- love divergence. equity volatility is low. investors are preparing for more turmoil ahead as european elections come to the four. the white line, three months. blue line, looks at euro volatility.

that would be a disappointment for banks. the ubs chairman, axel weber, says he thinks banks will lose access, but that it is too early to turn contingency plans into action. >> i think it has been pretty clear from the start that it is very hard to renegotiate the stance of the u.k. with the european union. being in switzerland, we have seen that over many years -- if you are outside the eu, it's har beor every issue to renegotiated. sometimes they are long and winding. the european market rules had to be taken into swiss national wall before we were compliant and comparable with european regulations . this is a hard thing to achieve. life view has always been that britain has to start somewhere, and the there are two things they need to d. it's clear that the european relationship will be status quo minus, not as good as it was. they can negotiate many things but it is important for britain to step aside and renegotiate with the rest of the world their relationships on trade and financial services. i think the europeans are in an e

banks. look at bianco popular moving lower after ubs downgraded the spanish bank from neutral to sell. can see bank of popular down about 1% on the day. another rough session for lufthansa after the german airline said higher than expected fuel costs could affect profits this year, shares down 6%. and speaking of currencies, the turkish lira also grabbing a lot of attention, falling to another record low. it's certainly not a happy new year for the currency. moody's today said that turkish bank profits will be hit significantly this year. the lira is down about 2% today. but already down 5% in 2017, making it so far the worst performing emerging market currency this year. carl? >> all right, seema, thank you very much for that. seema mody at hq. >>> let's get a news update and go to sue herera back at hq. >> hi, carl, thank you. here's what's happening, everybody. esteban santiago, the iraq war veteran accused of shooting and killing five people at the ft. lauderdale airport on friday escorted out of jail for his first court appearance later today. the hearing will focus on getting him

bank cutting interest rates, you have an attractive capital inflows story. rishaad: eric, thank you so much for joining us here it standard chartered there in singapore. ubslks to boost holdings and its china business, we hear exclusively from the banks chairman next. -- the bank's chairman next. ♪ ubs has confirmed it is in talks with its chinese partner to boost holdings in its securities business on the mainland, holding its greater china conference, and axel weber retains every confidence when it comes to the mainland. >> i can't give you that many details because the talks are ongoing, but we are talking to our partners and have a strong ourerest in increasing presence in china. we will increase our headcount over the years to calm. run,nt to build a long steady presence in china, and that is part of our strategy, yet we do like locally partnering, so it is all about shifting, but talks are ongoing and i can't tell you more than that. you aboutdoes it tell where ubs sees opportunities in china and expansion plans, particular capital markets? the investment banking businesses one-day are committed to continuing to build in china. china is still the fa

that are a number of banks we do own in europe that we think are significantly undervalued. mark: and david, let's get to them. ubs is among them. is there a temptation to love this bank in with some of the more fragile lenders in europe? david: there is a temptation to do that. speaking, with the advent of eds, where all banks get lumped into the same trading patterns, a good, healthy organization like ubs, it is the largest wealth manager in the trillion has $1.1 worth of client assets that they manage and a very low capital intensive operation, that is worth a very high multiple of earnings. while it gets lumped in with other banks that are much more capital intensive, much more regulatory driven in terms of the amount of capital that they must retain, and, as a result, it trades at a multiple priced to books, it does not really reflect the underlying quality of its business. mark: i've got a chart here theh shows samsung share of south korean stock market. it is up to 20%. in 2016, thea year stock rose by 43%. has it managed to salvage its reputation after the note 7 debacle? i know that you have said it proba

they have made it clear that that will happen, they will take 20% of the uk banking revenue with them. the chairman of ubscould move up to 1000 workers from london to, probably, from third. some people would say, so what? but there are two important messages. two big banks have decided that london, outside the single market, is -- is london, outside the single market, is —— is not the optimal place to provide services to european clients. these are very highly paid people. whether you like it or not, they are paid hundreds of thousands of pounds each and they pay a lot of income tax. with the revenue from the bank they are taking mba can tax being taken away, there will be a hit to the exchequer. these are not contingency plans any more, they are plans that are becoming a reality. simon and damian, thank you both. the united nations says it believes 40,000 people have returned to their homes in eastern aleppo, the city devastated by years of civil war. most are living on aid in very difficult conditions. aleppo is syria's largest city. it became a major battle ground in the summer of 2012. as recently as

bank. got involved in ubs, jp morgan. got down to the preferred stock. those trades are still working.h yield at 17% last year, up 1.5% this year. merging markets. so that trade is still working. >> you say bond markets are saying -- i'm reading from the notes we got from you. getting ahead of themselves in terms of the economy. >> exactly. a lot of things were priced to perfection. ten-year treasury yield, dollar, risk markets in general. this year started we saw a flattening of the yield curve. ten-year was up to 1.65. now it's up to 2.48. creates opportunity. >> what if the bond market is telling us nothing because it's so distorted by the activity of the fed that you can't get a good read on anything? that the equity market deserves to be where it is based on the economy being better than where people think and on the agenda of the president. >> the economy is starting to improve. it will improve gradually. i think the fed wabts to move but they'll move fwradually. no move tomorrow or at the fed meeting in january. most likely positioned to move in march. they came into the year. m

banking is with us up top with a blue line. data the bottom is the green line, bnp paribas and ubs and deutsche bank bringing up the ,ack here let's pieces of fortis banking of belgium, why can't that happen now? >> in europe there are potentials, the ecb governors want mergers within the eurozone , the challenge is that you have a couple of things -- thanks talks are trading below book value, it is expensive to raise equity so what the emphasis from shareholders to do that? regulatory uncertainty is second, we should talk about, what a biggest inflections of 2017 is whether banks get more clarity on the rules and invest more confidence to put their money into banks. francine: thank you. we're talking about the banks and news on carmakers, breaking news from -- the paris prosecutor has opened a probe --o run no diesel emissions admissions, for fiat, it was admissions of file asians act was a stash accusations that were similar to we saw with vw. we are just getting the headlines, just the paris prosecutor being concerned about diesel admissions and we will have plenty more of that but it is impacting the renault share prices. ♪ go

ubs shares trading lower. beat profitbank estimates, the bank says outflows reflect primes repatriating money at a faster pace. but a positive picture was painted when he spoke to >> iterg earlier today was more challenge thing -- earlier today. >> it was more of a challenge that in 2016. of these -- proclivities once -- once again contributed to this environment. and investorsient about it. we do see a readiness and , noting for investments only potential financial markets but also the underlying businesses. it is quite clear investors are looking for concrete actions by the new u.s. administration's in order to go into investment mode. >> have they physically changed and moved to transaction? >> not really in a meaningful way. there is a bit of a better momentum. i do have to say the fourth quarter in the u.s. was a positive one. i think the situation hasn't really changed a lot. look at the situation in europe in general, particularly on the political side. there is still room for improvements. wealth management and with management america. are we seeing the end of this regularization? is this the end of th

ubs takes out some of the other european banks but meanwhile you have guest after guest telling us the u.s. financials are a bit of a trade. >> there's a dichotomy here. as dom said, ubs is a wealth manager. look at what morgan stanley's done, the retail banks and brokers have been doing well. i think it's an overhang of never having purged the system. they're well below their highs as dom said. i feel as if there's almost justification for that divergence. we're arguably with our financial sector a couple of years ahead in terms of the healing process. >> the real question is are they going to catch up. >> that is the question. >> thank you, dominic. 40 minutes to go into the close. >> we still have modest losses on the major indexes. we have the dow hovering holding most of its gains but not quite to be able to hold that 20,100 mark. >>> up next, dow component chevron which you can see on the bottom right of your careen is lagging. it's the worst performers in the industrials. >>> also up, teamsters james hoffa has his take on donald trump. ♪ we're drowning in information. where, in

and we speak to the ubs ceo regarding the bank's latest work.his is bloomberg. ♪ anna: welcome back everyone. looking at live pictures of hong kong. beware that many markets in the asian equities session are into monday asd well. 6:19 a.m. in london. here is juliette saly. ubs profit more than tripled in the fourth quarter as rising interest rates and a rise in equities boosted the security unit. 800 48 million francs, far exceeding estimates. thosel be talking about numbers at 640 5 a.m. with ceo sergio ermotti. missed estimates. alphabet reporting more than $3 billion in capital spending. shares fell more than 2% in extended trade. microsoft quarterly sales and profit beat as to -- estimates. upe consumers are signing for cloud services and stabilization in the personal computer market. shares gained at -- in after hours. toshiba's board meets today to discuss a range of turnaround options. the sale of part of its chipmaking business will be on the agenda. the company is facing up to $6 billion in right downs. to sheba will hold a press confer

in about five minutes time, featuring the bosses of bank of america, lloyds, jpmorgan asset management, ubs and vtb as well. that's just about to start. i know the guys are getting lined up in davos for that panel. it doesn't end there. we have davos programming back-to-back throughout the rest of the day, from our crew on the ground and our u.s. colleagues on the ground as well. we'll continue into tomorrow as well. we have the data out and janet yellen speaking later today. be sure to stay tuned. we'll be back with the banking panel imminently on cnbc. >>> good morning. the new world order, investors look to process earnings, global economic data and the incoming trump administration. we'll turn to carlisle founder david rubinstein for guidance. >> earnings alert. net flex soars amid new subscriber growth. >>> ait's thursday, january 19, 2017, and "worldwide exchange" begins right now.

and the top story here in the uk — two investment banks have confirmed they will transfer jobs from london to mainland europe. hsbc and ubsd it was a response to theresa may's plans for britain to leave the eu single market. now on bbc news all the latest business news live from singapore. as us president—elect donald trump prepares to take the helm we find out what businesses in asia are expecting. from the air to do some fun empire is granted a —— the edge of the samsung empire is granted a reprieve for his role in the countries of scandal. good morning and welcome to asia business report live from singapore. withjust and welcome to asia business report live from singapore. with just two days left until donald trump is sworn in as the 45th president of the united states and dad deeply divisive figure means that many are now looking at his cabinet picks resident bodies policies will be. earlier a billionaire investor said their top priority is to re— negotiate another the trade deal with canada and mexico. the president—elect has made no secret in his public remarks, nor have i in earlier remarks during the campaign that

ubs suffering $15 billion in client withdrawals last quarter. the bank'sxecutive tells bloomberg he is optimistic about the future. german prosecutors doubling the number of people they are investigating in a diesel emissions cheating scandal. among those under investigation, former ceo of volkswagen martin winterkorn. mark: a closer look at donald trump's campaign promise to rewrite trade policies. will it help or hurt the u.s. economy? ubs says clients pull more than $15 billion in the last quarter and profitability in what management businesses declined for a third quarter. still, sergio ermotti was optimistic. the most important thing for me is to see that our clients are optimistic. there is some positive momentum, particularly with u.s. investors and clients. i think this could be a turning point, but it's very important to see the new administration plansuts in action their and to give our investors even more confidence. prosecutors in germany are extending a criminal probe into volkswagen diesel emissions cheating scandal to include the former chie

michael: now let us head to the ubs greater china conference in shanghai. banks their foothold on the mainland. they talk about risk and opportunity in china. >> what you see as the key risk or key challenges for 2017? >> the first one is the leadership change we are going to see in terms of policy priorities we are going to see. the current administration and central-bank leadership has been in control rather long. remember the central bank governor was there when i joined in 2004, and he is still there today. the chinese monetary policy has followed a very steady path. they want to open up and become part of the international community. it is now part of the special growing rights of the imf and that requires china to be part of the international community. >> given what we have seen on the capital control, the yuan has taken a big step back, hasn't it? >> i think you see that these processes are not smooth. never a straight line. thingsre periods when move more easy, and there are periods when things move in a more rocky way. when there is a large amount of un

ubs has the euro bank in frankfurt that they set up. it seems that the infrastructure is in place.hey just want to see how negotiations are going before moving people, i imagine. again, it could go very quickly. thes: we will get into story this morning, suggesting that goldman sachs may be making preparations more aggressively than we think. have a great day, francine. we will see you throughout the hour. when it comes to aerospace, there is a deal on the table. aerospace, zodiac it's at the bottom of your screen right now. for zodiacdding aerospace at a premium of 24.6%. we will have their numbers. fourth-quarter numbers for the netherlands. toot of this comes back janet yellen's preparedness to move up a few times per year. yellen,an upbeat janet bucking against the trend of what donald trump wants. focus on this, because tenure government bond yields had one of their biggest moves in almost a month. 2.43% is where we traded so we've come back a little bit from that. francine was mentioning china and policy. they reduce their holdings for november 11.e nymex crude is up by point

ubs. up next, the banking sector. front,ing the pain up 3.1 billion pounds worth of pain.e tied to u.s. mortgages. this is bloomberg. ♪ matt: welcome back to the european market open. i am matt miller into berlin. you are looking at a gorgeous shot of the brandenburg eight in the german capital. german day ahead. an idea of how the economy is faring when gdp figures are published in 45 minutes time. timeis nine: 30 a.m. u.k. and 10:30 a.m. on the continent. also, at 9:30 in the u k, the brexit secretary, david davis, takes questions in parliament. a new bill seeking parliamentary approval to trigger article 50 could be introduced as early as today, so you will want to keep tuned in for that./ watch on top . discuss greece's bailout program and they will be discussing the ireland,play in portugal, and spain. now, royal bank of scotland says it will take a 3.1 billion pound charge in its fourth-quarter results as it moves closer to resolving a u.s. probe into sales and mortgage securities. is continuingit to cooperate with the u.s. department of justice. joining us now i

this is information based on the bank of england and very clear economic forecasts. ubsirman, some of the voices from the world economic forum in davos switzerland. take a look at the european markets as we are heading towards close of this tuesday session. theresa may, big takeaways for the parliamentarians getting about on the single market. some relationship with the customs union. the big movement is in currencies. look at sterling against the dollar. it is rising against its major peers today. look at that move against the dollar, biggest gain since 2008. you heard it correctly. this is bloomberg. ♪ mark: live from london and new york, this is the european close. i am mark barton with julie hyman. stoxx 600 down by 0.1%. it is all about theresa may. i love this chart. poundtage daily move for against dollar. they move today. the biggest move since 2008. 2.9% move for sterling against the dollar. takeaways, goodbye single market. parliamentarians will get a final say on the brexit deal. some sort of relationship with the customs union. what a change it makes. 1.1% lo

bank. is it going to be ubs? davide: i think ubs in europe is the clear winner. hey were the first one to shrink fixed income, focus on the client to read wealthy clients, institution, we focus on retail banking, asset management, investment banking. morgan stanley followed suit pretty quickly and see what they have achieved? i think ubs will keep on being the winner in europe. erik: let's talk about the universal banks. stuart gulliver was talking to john mikel's weight. he said a 10% return on equity is as good as a universal bank can deliver. really? with the current interest rates environment, the answer is yes. , they were built over the last 30-40 years with shortened interest rates. about half of the stability of the institution, that was coming from the liability. longere liability is not , ranches lose money in getting deposits. the capital structure had to double in terms of capital needing to lend money. levelk 10%, the capital has gone up five times. there is multiple expansion. actually investing in financials over three years is the right thing to do

and not the only bank to be talking in these terms? ubspreviously said they would move 1500 out depending on what deal or how looked after we left the single market. they think that number may be a bit lower, around 1000, and they're saying that is worst—case scenario and we will see how things pan out. but privately a significant number ofjobs are said to be going and again very high—paying and so we lose that tax revenue. a wheelchair user has partially won his case at the supreme court against a bus company. doug paulley took legal action because he couldn't board a bus in leeds when a woman with a pram refused to move. our disability correspondent nikki fox reports. as he makes his way to the supreme court on one of the most important days of his life, doug paulley is about to find out whether his nearly five—year legal battle will end in victory for all disabled people who need to use a wheelchair spaces on buses. hi, jeff, nice to see you. this all began back in 2012 when doug was unable to catch a bus because the space for wheelchai

rising 10.7%s after the nikkei reported that ge will be looking to ube for jet engine material. and keep an bankat is going on -- an eye on what is going on with samsung today. faa reports airlines no longer llc to notify on samsung note 7 and samsung has recalled and 97% of note devices, earlier of course, we had that rise on the asx 200. miners leading the charge their. the likes of rio tinto, and fortescue. of course,l surges given what we saw china data and what we have around expectations of trump's and the structure spending plan. anchor: you talked about metals having a good day, but we continue to see the diversion with oil. oil clogging its worst two days in four months and on the flipside, copperhead it's best to two days -- best day in two months. take a look at the terminal showing the divergence between copper and oil continuing this week. we -- tweak. the blue line in and oil in the white line. that is when the oil divergence started to become apparent. we will see how this plays out in currencies with metals being a big theme this wednesday. kamaruddin on the markets. the best-per

and the top story here in the uk — two investment banks have confirmed they will transfer jobs from london to mainland europe. hsbc and ubs

bank. first this is today on nbc. ube forced to help rob a bank. first this is today on nbc. forced to help rob a bank. first this is today on nbc. as ceo of exxonmobile... rex tillerson put exxon's interests before america's i'm not here to represent the us government's interest. instead, tillerson sided with putin. with billions in russian oil deals... he opposed us sanctions on russia... ...for war crimes forced to pay hundreds of millions for toxic pollution... ct rex tillerson. and protect american interests not corporate interests. >>> coming up, nothing easier why you're probably doing it wrong. >> what? >>> 65 years of politics here on "today" as we count contrary to ancient wisdom, the sun doesn't rise. we do. yet, the more we travel, the more the world pushes back: corralling us and controlling us. so we seek a place... where we're given a choice not just to get up. but to rise. ♪ and we're partnering with cigna to help save lives. we are the tv doctors of america. by getting you to

picked up a lot of market share, attracting some of the key talent such as goldman sachs, ubs, and deutsche bankn you decide what you want to do, it may not be quite so comprehensive as he used to be. you are saying also that people are now going into tech, established technology companies, google, amazon, facebook. do they have the same compensation? >> no, they don't. they are definitely competing, but this brings to light another dynamic around why people are shying away from the industry. there is a reputation or stigma associated working in investment banks that did not exist pre- financial crisis, but there are dynamics about what banks offer in terms of a holistic value proposition, and this is where banks have left a lot on the table. is their fundamental proposition beyond compensation. the banking industry needs to think seriously about the talent proposition. they still need to retain their best and brightest talent to be successful, and unless they are fundamentally addressing those concerns, they will go through much more of a rough time. very muchhank you indeed. right, coming up,

let's head to the ubs greater china conference and shanghai, where the chairman confirm banks are inks with partners to increase its footprint on the mainland. he talked with tom mackenzie about risk and opportunity in china. for what is the key risk china for 2017? >> the leadership change we will , and the policy priorities we will see formulated. the current administration and current central bank leadership has been in control long. he is the longest-serving central bank governor. the chinese monetary policy is following a steady course of opening up, becoming a member of the international community. the renminbi is part of the special rights of the imf, and that requires china to become part of the international community. tom: was that the right decision or premature by the imf? >> i think what you will see is that these processes are never smooth and straight line. there are always setbacks. there are things to go easy and when things moving in a rocky way. a large number of political uncertainties materializing. , ayou look at the u.s. totally different china policy is a risk

bank of america, jp morgan chase, morgan stanley, and ubs are lead advisors.loomberg has learned that alibaba's agreement to sponsor the lyrics through 2028 is said to be worth $800 million. olympice biggest in history and would put them on the same level with coca-cola and u.s. electronics. that is your business flash update. joe: up next, we will look at u.s. manufacturing data. ♪ scarlet: i am scarlet fu. "what'd you miss?" toufacturing activity seemed end on an upstream according to surveys. you are looking at dallas, richmond, empire state, which is new york, kansas city, and philadelphia. all had expansionary postings in november and december. if you go to the far right of the chart, you see the pickup. they all point to higher simultaneously. the last time that happened was in november of 2014. the problem is even though this is survey data, we have not seen a followthrough in hard data. in factory orders and industrial production. joe: that is a striking chart. most of the data looks pretty good. here is one minor piece of not as exciting data that cam

the ceo of ubs will join us to talk global banking, brexit, and the trump transition.f the hour, at 8:00 a.m., bank of america ceo brian moynahan will join us live from davos. as we head to break, take a look at u.s. equity futures. improving just a little. down just 27 now. and the wolf huffed and puffed... like you do sometimes, grandpa? well, when you have copd, it can be hard to breathe. it can be hard to get air out, which can make it hard to get air in. so i talked to my doctor. she said... symbicort could help you breathe better, starting within 5 minutes. symbicort doesn't replace a rescue inhaler for sudden symptoms. symbicort helps provide significant improvement of your lung function. symbicort is for copd, including chronic bronchitis and emphysema. it should not be taken more than twice a day. symbicort contains formoterol. medicines like formoterol increase the risk of death from asthma problems. symbicort may increase your risk of lung infections, osteoporosis, and some eye problems. you should tell your doctor if you have a heart condition or high blood