politics is huge now for foreign-exchange. we cannot ignore that.f themain a stable foreign-exchange market. guy: thanks very much. v,onnie?y joining us vonnie: here is courtney donohoe. courtney: from vladimir putin during his annual state of the nation speech, he signaled russia will aim new weapon that the u.s. if the u.s. missiles in europe after abandoning in arms control treaty. wastone of dunes speech less belligerent than a year ago. in other news, conservative members of parliament are working away -- walking away from the party. the move probably does not theresa may's brexit deal through parliament. they were likely going to vote against her anyway. minutes of the last federal reserve policy makers meeting should shed light on the biggest reversal in years. last month, policymakers pledged to be patient on the timing of what it called rate adjustments. that backed away from the december statement about further gradual increases. we will have more coming up at 2:00. global news 24 hours a day, on-air at tictoc on twitter, powered by more t

aside $900 million to cover separate investigations, mostly into breaches of us sanctions and foreign exchangeues. the amount also covers a $132 million fine from the uk's financial conduct authority related to a lack of sufficient financial crime controls. the $900 million provision will also cover standard chartered's recent $40 million fine from the new york department of financial services, after some of the bank's traders were found to have used chatrooms to rig and manipulate foreign exchange trading activities. bill blain, who is a strategist at shard capital, joins me now. lovely to see you, bill. thank you, sally. so standard chartered, it would seem, a long list of fines and bad behaviour. that doesn't put standard chartered in a class of its own, many banks have suffered a series of fines but this is especially true of banks that have been involved in some of the more risky markets. hsbc was under the cosh for many years from us regulators. not quite as bad at standard chartered, the real questions at standard chartered were very different, though. going forward , very different, th

i think it is the swamp of liquidity to foreign-exchange markets. euro-dollar has not moved in four months. it is not a race to the bottom that people expect with regard to monetary policy, should the situation in global markets that worse. it is an important point, should. what we are seeing with equity markets, it would be interesting if you consider it in the broader context. what we have seen and a last and months with the moves particularly the u.s. indices, very similar to what we saw in late 2007, similar to what we saw in 2000. it is a question of whether the ,arkets natural pessimism taking away monetary policy stimulus can be dealt with now by what the central banks do, if they can give enough to ease the situation. i think that will be critical to the dollar-yen and everything else. you have highlighted some of your research, and are seeing more volatility in the u.k. than the dollar-yen. simon: there have been a couple days where that happened, the irony is fingers point steadily to china with currency manipulation. if you look since 201

whatever russia is going to do isn't going to make that much difference if they provided more foreign exchange or some aid that could help they've already been getting you know food aid in the past they've gotten some from china and if anybody any of the countries that are allied with the united states in this regime change effort if they wanted to actually help venezuelans there would be no problem delivering aid through the united nations or through a third party a neutral party but again the u.s. and its allies really see this as just one part of their effort to topple the government and that's what they're actually trying to do as as they've said so if the sanctions are at the core of all of this what is the way out of the situation that venezuela finds itself in the moment if as you say the backstop to all of this is the financial pressure that the u.s. is putting on the venezuelan economy. and the venezuelan people i think that's part of their goal is to make it inside you know intolerable the suffering there so that people and the army will overthrow the government i think the way out i

which has the rand and the rand you know depreciated against the dollar so they were earning foreign exchange in rounds and of course when the rand was depreciating against the dollar that meant that zimbabwe had even less dollar reserves so when they established their current this bowl note in twenty sixteen that didn't work because of course it was pegged to the dollar very briefly is it a good idea or just a step in the right direction where we go well we'll see what people do or what they respond like of course if they trust this new currency the. dollars it's been cold then yes it is a step in the direction but they need those foreign reserves they need those dollar reserves in order to be able to support this new currency and they don't have that and that's where we probably have a problem to punish a bit of you very much. creating jobs is one of the biggest challenges in economies all over africa and if you count environmental protection and you get your classic two for the process one here's a young man from god next business student who's doing exactly that and just throws another ke

been discouraged by unclear regimes as regards customs it's troubled by the fact that access to foreign exchange is not good that access is required if you wish to repack treat your profits it's also being hampered by a perception of security that is indeed true the incoming government must first and foremost solve the security problems in the country since president bush declared boko haram defeated twenty two thousand people have been killed two asian has to change jeremy i understand obviously whoever wins the next election has a lot of work on his plate to jam against the coordinator of the nigerian german energy partnership thank you so much. the president of ghana has called for a revolution in the mining sector to quote make it africa prosperous president to monaco for other was speaking to the indaba conference in cape town in south africa he said mining firms and governments need to increase their collaboration he told delegates africa that made the rest of the world rich with its minerals and it's now time for africans to feel the benefits. almost two hundred million people live in nig

steven: in the speech itself, i do not suppose there will be specific mention about foreign-exchange, thing that is noticeable and the market is looking at, the relations between u.s. and china with respect to trade. and the u.s. has made it clear in these negotiations, and in previous negotiations, about trade with canada and mexico for example, that currencies are an important part of the deal. and we would expect president trump to suggest that he is driving hard for a deal on that. and the market does seem optimistic of that something will come about. one question for the market that will not be answered tonight, but in the future, is to what extent has the u.s. managed to pin china down with respect to any issues of sort of currency manipulation. my view is that china will rebuff those efforts from the u.s. they will not derail the deal, but that could be the context in which tonight and in the future i would look for some currency comments on the administration. vonnie: not specific currency comments, i mean will people take a position on the strength of the u.s. dollar based on

brink in recent months saudi arabia has helped keep pakistan's economy afloat by propping up its foreign exchange reserves with a six billion dollar loan that gives islam about breathing room as it negotiates a bailout with the international monetary fund the two day visit to pakistan comes amid high tensions in the region india and saudi arabia's arch rival iran both bordering pakistan have accused islamabad of backing militant groups which have carried out bloody suicide attacks on the soil in recent days. you're watching news coming up after this short break the bundesliga with pablo fully ileus where you'll find out about match day twenty two highlights and analysis of the match including a clash between liberties and dusseldorf with goals and goal or so be sure to stay tuned you are now up to date thanks for watching us here at. how about taking a few friends who could even take a chance on love. don't expect happy endings. the church. it's. not often. just sometimes i am but less than nothing when. i think stephen.

we faced over $1 billion of commodity headwind for the year and foreign-exchange challenges in southmerica as well. . but against that, but we are seeing is from volume, to your point, volume was up in the fourth quarter with the rollout of our new trucks. pricing was a big factor. we are continuing to see discipline in our own pricing, as well as this plan from a perspective of cell down of the old trucks as well. cost optimization played into that as well. you put all of that together, we saw some pretty big challenges, but we were able to offset that through execution. david: take that and apply it to china, which you mentioned. as i understand, you had some real softness in units sold overall in the market there, down for the first time in 10 years. and yet, you sold a lot more cadillacs. are you making up in price what you might be losing in volume? guest: i would say in china, if you take a step back, fourth quarter was a volatile quarter for the entire industry. what we were faced with was, and addition to the volume pressure, the normal pricing pressure you see in china as we

investment fund services and foreign exchange in commodities. >> talking about m&a again, what kind ofizes do you -- you know i don't give in. what kind of sizes are you looking at >> indeed, we have the size of roughly 1.5 billion euros. right? we have performed in the year 2018 too small i think it's nice. they don't turn the needle wresh we are monitoring the market structurally very systematic way. as soon as something is coming in the areas of fixed income, commodities foreign exchange data analytics, or investment fund services, we are keen to grow and organically via acquisitio acquisitions >> thank you so much with that i'm sending it back to you guys thank you. >> all right thank you for bringing us that interview with the ceo of deutsche there >>> elsewhere it is valentine's thursday earnings. astra zeneca beat the top line thanks to strong product sales the results were boosted by solid demand for cancer drugs. however, net profit fell 21% in the fourth quarter astra says it has made extensive preparations in the event of a no deal brexit having done additional finish stock

>> you have to shut down your foreign exchange workers.e will be trying to fly out of your currency if there is no vehicle that they can do it, it does not happen. michael: the outlook for inflation, you did suggested that there is something to maybe about.cerned phillipsr not the curve is nonlinear, and we will suddenly see a breakout of inflation and unemployment continues to fall. do you think that is the case? >> the phillips curve is [indiscernible] it should not be unemployment, it should be unit labor costs. you cannot really measure unless you know what productivity is strenuoouslyd months of 1990 that we should not be concerned about the unemployment rate declining because we had growth in productivity. as we came down from 6% unemployment down to 4% and lower, nothing happened. why? because labor costs. you were a big baseball fan for years, and the baseball season is about to begin. any predictions? --whatever team i vote for [indiscernible]. michael: thank you very much and congratulations on the volcker award. your birthday is

with me is jane foley, senior foreign exchange strategist at rabobank.your thing but i know you have been keeping a close eye on the uk political situation, and a difficult time for the labour party yesterday. seven members quitting the party. pressure now on the labour leader jeremy corbyn. some people saying this will change everything. 0thers say it doesn't mean much. there is a lot of analysis on happens next. there is an awful lot that could happen. there are comparisons on the 19805, that happen. there are comparisons on the 1980s, that was something they didn't want to draw against. they said they were not too many comparisons. acting for now, a lot of this literature is about brexit. does it change their strategy for brexit? there will be a by—election in wales. we have the death of paul flynn. what happens if labour loses? it could have implications to the brecon strategy. it particular report is saying that if the strategy does alter, as

there is still a lot of volatility in the foreign exchange market.e need to see how inflation expectations are. in 2018, inflation expectations implantond two to four -- percent inflation target. we need more time to digest what this -- what is unfolding before our eyes. 175 basis points, increasing the policy rate of the central bank last year and we want to make sure how this tightening works itself out through the banking system and the real sector, including the labor market. , including the so you want to see how the data plays out. all central bankers do. at the moment, would you say you are more on pause or the biases toward the hawkish or dovish side? >> we are more on the hawkish side in that we recognize the risks in the market. we recognize the possibility of oil prices surging again. we are trying to be more cautious about this potential risks that could impinge on our ability. have theo make sure we benefit of time and more observation that there is really a trend toward a leveling off of inflation in the next two years. based on our for

the department of justice is investigating issues, foreign exchange problems that happened through 2017. so i could keep going, but that think, how much is the culture changing, what is new and what is old, why are the responses still the same and for a journalist, it makes me want to keep probing keep asking the questions and when they say they are taking the issue seriously, i just look at the facts. >> judge rakoff, lawyers and onsultants taking responsibilities to investigate and diagnose problems and propose remedies in the private sector. you describe the ecosystem as an the pt to rehabilitate company's culture. investigators and reports by are one go banking example. nd overseeing settlements also "outsourced" to lawyers and consultants. what is your view of how well system of corporations investigating and rehabilitating themselves work, does this rocess serve the interests of in eholders and the justice the corporate context? i dofirst want to say that not want to comment about wells fargo. say should be taken as reflective of that, under law i'm precluded from that isng on any

a foreign exchange student. from iran. she's a doctor student at nearby usf. they didn't know if their apartments had survived and the information that these folks are getting is kind of sketchy. back live. they are taking down the police tape. where i am standing. i believe they are going to move us down the street perhaps closer to the scene. so we can get a closer look. in terms of information some of the folks are hanging out here. trying to figure out when they can go back. and what they have to return to. >> okay. thanks very much. >> the clean up of the fire and the investigation means one of the businessest streets in san francisco is closed. >> we continue the live team coverage. the impact on the commute. >> look what's happening here. that's the number 38 bus. we have been talking about this for several hours now. this is good news. what this bus is doing remember they the 38 bus was not running. that's one of the busiest buses in san francisco. what that bus is going to do in about 16 seconds is going to make a right here. and then make a left. and

brink in recent months saudi arabia has helped keep pakistan's economy afloat by propping up its foreign exchange reserves with a six billion dollar loan that gives islam a bad breathing room as it negotiates a bailout with the international monetary fund the two day visit to pakistan comes amid high tensions in the region india and saudi arabia's arch rival iran both bordering pakistan have accused islamabad of backing militant groups which have carried out bloody suicide attacks on their soil in recent days. well staying in south asia mumbai has been india's boom town for years now and if you invested in real estate there well you did pretty well at least that's been the case until fairly recently something's changed back in twenty seventeen real estate prices there fell by five percent in the last year and twenty eight thousand it was about seven percent the dip there are so what's happened will the next global real estate crisis be made in india here's a report from mumbai. the property consultant. he has been in the business for a long time he was always said that you couldn't go wrong with

beneficiary big time what a difference a day makes as they say both companies cited pressure on foreign exchange rates and increasing effective tax rate from eighteen point five percent to twenty one percent and increased investment in advertising as the drag downward on expected twenty nine thousand or so. we were for. extensively with our correspondent sara the oco on herbicide roundup made by chemical giant one santo now known by germany's bear a.g. last year a plaintiff was awarded two hundred eighty nine million dollars after a california jury found his terminal cancer was a direct result of exposure to quite a degree in roundup well now it appears cosco the multinational membership only warehouse club and the second largest retailer in the state's behind wal-mart has banned round up the aforementioned saramago to open joins us so what do you make of this with regard to costco locations they have them all over the world is round up going to be banned in the u.s. and around the world do we know all costco does have over seven hundred locations worldwide france spain over five hundred of thos

according to the consulting firm metals focus ltd the buys which will help the banks diversify their foreign exchange assets in a time of extraordinary political volatility signal a growing confidence in the metals value moving forward of course as bloomberg so they know focus on the metals value the price just like bloomberg and c m b c will focus on the price of big coin but the point is it's the change of the monetary system that we're seeing right here remember they're saying that it's a time of extraordinary political volatility the same thing in the seventy's at the end of the sixty's and seventy's when the u.s. went off the gold standard and only did we have the domestic political volatility of the civil rights movement and the assassinations which we as a nation would invade another nation if they had similar problems as we did in the sixty's but right now we don't have that sort of domestic volatility but we certainly have the same sort of war as that time we had multiple wars going on and certainly in vietnam obviously but across latin america we're back in latin america and we're back to a

analysts are expecting again of 3.1%, excluding fuel and foreign-exchange.ommerce sales, investors expect high-growth as this part of the business is not yet profitable. that makes operating margin another number to watch. it has been on a downward slide of late. walmart has been growing its online business and keeping prices competitive while facing higher expenses. this is the first full quarter to include the flip card deal, walmart $16 billion that india's e-commerce market. they are battling amazon for market share. india has just announced new e-commerce regulations that favor homegrown retailers. expect lots of westerns about this on the analysts call. guy: thanks to emma chandra. let's stay with the fast-moving consumer goods sector. by andreaned now falstaff. the stock is up nicely. the market broadly welcoming what is going on. your sense is it is not that great. >> no. it is certainly better. there has been a terrible couple of years. it returns to growth. soft?hy is it is he leaving the job half done? >> he is. this potential split of the busines

the money will cover separate investigations into breaches of us sanctions and foreign exchange tradings change. this is a warning from a committee of mps. they says it needs to "level the playing field" for high street retailers possibly by raising taxes on online giants such as amazon. the mps also called for lower business rates and more regeneration in town centres. the food giant nestle and several other big companies have pulled their adverts from youtube following claims they appeared next to offensive content. the firm, which shares a parent company with google, has been criticised for not removing offensive content fast enough in the past. the ftse100 has been weighed down on this morning by a clutch of disappointing results for some of the markets biggest companies. centrica, which owns british gas, has warned it will struggle to meet cash flow targets this year. that‘s all the business news. raf and us air force planes will perform a fly—past above a park in sheffield tomorrow where an american bomber crashed during the second world war killing all ten men on board. a young b

england will be as close as it can be without spooking foreign exchange markets.nie: it is always fascinating to speak with you, sebastian. thank you for joining us sebastian mallaby, senior fellow for international economics at the council on foreign relations. this is bloomberg. ♪ vonnie: it is a risk off day, with the dow down 1%. s&p 500 dow .7%. -- down .7%. the nasdaq down .5%. is up year treasury 2.60%. we will talk a lot more markets in a few moments. this is bloomberg. ♪ talk about what is happening in europe. lineing on the dax, a key to have gone through because it is a head and shoulders formation. we have gone to the 50 day moving average. this rally we have seen for the german market today coming very much unstuck. it will be interesting to see how it go into the close. negative position for the german market. ♪ to go, have 30 seconds the german market is the focus today, as you can see a bright red german market. and we also see some losses in france and of the ok, not doing too badly relative to counterparts. but we do have some fairly bleak number

things they can no longer import and this is providing a source of tax revenue, much-needed foreign-exchangeo maintain his army and so forth. rob: china has a lot of these ideals as well. if he has been shown this many times before this isn't going to be eye-opening to him. he knows what could be. if he hasn't been on it yet how do you sell this in a new way? >> the example of vietnam is so vivid. america has been in enemy so to speak for 75 years. china has been an enemy for several millennia. the koreans are not going to threaten us with nuclear weapons because the guy would be dead from the retaliation. nuclear weapons are to keep beijing at bay. rob: there is a lot here and it is very interesting. thanks for your expertise, see you later. 45 after the hour. before round 2 begins, this kim jong un impersonator is getting the boot. and vietnam kicked this been out of the country. let's check in with steve doocy for what is coming up on "fox and friends". >> no coffee places are open-ended at this point. starbucks across the street. a lot of live events coming this morning, the president wi

all of this really points to, in an environment where you see commodity challenges and foreign-exchangelenges, the earnings resiliency of the company and our execution in this environment. yousef: toyota cut net income forecasts for the fourth year, citing losses from equity sales. as much as the initial batch of stingers would suggest very dramatic change in the outlook, there were some positive patches in this report wasn't there? , >> there were for sure. they left their full year income and revenue targets in place for the full-year. that's a sign that it's full steam ahead in terms of sales and in terms of operation of the company. this change in net income outlook was based on huge loss in their securities investment. ¥310 billion, that's coming on $300 billion. that's a big chunk in money. there's also the big tax factor that affected the year on your -- year on year comparison. as you recall a year ago, the tax cut they had in the u.s. ended up in a big paper gain for them, as well. it made the comparison for this quarter particularly tough. ♪ nejra: this is "bloomberg best." i'

companies citing some kind of negative impact of foreign exchange as the headwind we're trying to see the clear picture of what's happening today. dom mentioned a lot of they companies gave poor guidance, but is the dollar part of that that would help explain -- the chicago pmi was fantastic this morning. that's about as forward-looking you can get for the u.s. could that explain the mismatch? >> i think there's a multitude of headwinds that is certainly one of the reasons from ibm, apple to procter & gamble have brought down the earnings expectations for the next quarter the other big factor is the slowdown great stuff, seema the commerce defendant reporting -- steer liesman is any washington to dig into this more for us. >> kelly, thanks a pretty strong number two was the average on the street it came in at 2.6, which is half a point plus one, which was better than the estimate business investment was also stronger than expected the residential numbers were negative that's been hit by higher interest rates government, not much of a factor, up 0.4, though that spending did help we'll

. >> foreign exchange is a big headwind for a company like yours and others macroeconomy generally, how would you characterize what's happening globally >> there are certainly some challenges in some markets and certainly the note that came out from the fed last week helped on the currency side a little bit or we expect that it will some markets, probably the biggest area where consumers are under a little bit of stress is in latin america where they've had significant inflation. in fact, we moved argentina, hyper inflation accounting last year brazil consumers are under stress as well the thing for me, what i'm seeing broadly is the consumer is very, very resilient. and our categories are very, very resilient you know, we -- our vision is we're going to provide essentials for our consumers to live a better life our products tend to be necessities. and so they're critical for our consumers on a daily basis and we're ready for that mission. >> what about the u.s. in particular we've gotten mixed signals on consumer spending. walmart has its best u.s. comps in a decade but december retail

of being in sync of the headlines hearing about how the talks are progressing, whether it's foreign exchangetability or, of course, all the i.t. issues there is one area on the treasury curve to give us information on china that's the complexion of the yield curve and hopefully see it steepen and see the long end wake up a little bit once that deal, if that deal gets verified and we see some meat on the bone. >> mike, there's been some fears domestically in the u.s. of earnings not delivering the same growth in the year ahead as the past year. which sector in particular stands out as one that will deliver solid earnings growth for the rest of the year >> you know, it is kind of interesting. i'm not so sure i buy into the earnings being weaker. yeah, earnings revised lower as q1 -- as we went through q4. but for the full year 4.7% growth at the consensus but if you look at the median stock you are looking at earnings of 10.2%. if you look at the sectors, all sectors outside of one had their earnings revised lower throughout the q4 earnings season and industrials were the only sector that saw

upwards in a quicker momentum i guess the answer here is there's always so many turnstyles with foreign exchangehe financing of others trying to purchase dollars, what they're invested in, the capital issues involved and then add in central banks, logistics and widely traded in open interest and gets a bit confusing at the end of the day i really think that it isn't so much trump. i think the issue with the dollar mostly is that traders really do believe that the dollar is most likely not going to be able to bunch through and that they have been dogging a major short position globally on and off for many quarters. >> thank you, rick and thanks to lindsey bell and kevin nicholson. >>> the first meeting since trump nominated pow toll the post and since complained about him a few times. senior economic reporters steve liesman with more on what was discussed and what they dined over, steve. >> yes it was a much awaited meeting of jerome powell and president trump last night the two sat down for a 90-minute dinner and others were there steak was served, sara and they talked or chatted and discussed a

dollar even though the fed is backing off so the domestic companies are not subject to whims of foreign exchangetherefore their earnings are real. we have a good economy. we have a fantastic consumer sector. we have earnings in the u.s. doing well. very little inflation. charles: ask but the consumer sector, after the retail sales report, which everyone is starting to believe something was wrong, right? no way internet sales are down 4%. followed by a strong walmart report, whether serious pricing power, you think u.s. consumer is still in good shape? >> i think u.s. consumer definitely in good shape. we have strong labor market. you have wage gains. you have wage gains at the bottom quintile of income spectrum. people at the lower quintile spend their wage gains. i'm very confident in consumer discretionary. charles: i say hallelujah, long time coming for the lower quintile, finally get a piece of the action. i hope the fed doesn't mess that up. heather, where do you think we go from here? >> i think we head higher from here, charles, if we get a deal on china, i know they will not address stru

i think it is a very good -- >> premium ad revenue peruser down 6% year over year, ex-foreign exchangetherefore it kind of led to revenues meeting expectations but not exceeding them. >> i like where the subscribers were from. north america 30%. latin america 20%. r rest of the world 10%. they remind me of netflix. and periodically netflix went down and you had to buy netflix. i think we're going to hear from this man and i think we're going to like what we hear. >> i'm looking forward to meeting mr. ek wasn't here the day that he actually -- they listed the stock. so great to have him >> yes. >> with us. >> thank you for that. >> up next, get ready, a mad dash coming up i don't know what you're planning on doing there. let's give you one more look at futures before we take you to a quick break and we're back with more "squawk on the street" in a minute (baby crying) ♪ ♪hold on, i'm comin' ♪hold on, i'm comin' ♪hold on don't you worry,♪ ♪i'm comin' ♪here we come, hold on♪ ♪we're about to save you i'm comin', yeah♪ ♪hold on don't you worry,♪ ♪i'm comin' why go with anybody else? we know

i will ask you the same question i asked the foreign exchange guy.ctical opportunity, is there an ability to buy italian banks? nick: they are high risk. if you look at banks across europe, they are trading on seenples that were last in the global financial crisis. since then, banks have raised equity. than theyess risky were in 2007, 2008, 2009. there is opportunity but you need to see confidence you get less political noise in italy, france and the ecb. you have to get a feeling that somewhere you can search you see the ecb raising rates because that is killing bank net interest margins. tom: let me show you this chart. the cds for unicredit is beneath deutsche bank, this is unicredit here and more fear in deutsche bank in white. this is a remarkable lack of trust in the greater continental financial system, isn't it? nick: i think the individual banks, people look at individual banks, what we have seen is weak under performance by the sector and that is something that investors look at. it is almost 20% of the index. we need to see financials doin

think about the discussions, the negotiations, the foreign exchange manipulation, it all seems to fitems to represent a rubber stamp so far on some of the confidence now all we have to see is a done deal and how much is actually priced in and the surprise left in the equity markets. jim, david, carl, back to you. >> we'll talk to you in a bit. rick santelli, dow enjoying a nice monday morning. s&p 2808, back to november 8 back in a minute imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call, we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks. shipsticks.com saves you time and money. and everyone i've ever opioloved away from me.thing everything. i blew my ankle out and i got prescribed pain pills by my do

coke, the company issued a weaker forecast because of foreign exchange pressures pepsi up 3% after coke's awful day yesterday. >>> deer is blaming the trade war for an earnings miss citing higher costs for raw materials. deer's revenue beat forecast shares were down 2%. 2.5% despite that. nvidia is higher that stock still down 35% in the past year but up 2% for the session today. over to sue herrera. >>> here's what's happening at this hour. acting secretary of defense pat shanahan says he foresees growing the international coalition that's been fighting isis in iraq and syria this after meeting key members of the u.s.-led coalition in munich . >> today my fellow ministers and i took steps to not only solidify our progress in the middle east but to look beyond it we discussed what the future of our coalition looks like i, for one envision a bigger and stronger coalition going forward. >> justice ruth baden ginsburg is back on the bench the 85-year-old justice has returned to work at the supreme court building for the first time since lung cancer surgery in late december she's attending th

sanctions and foreign exchange issues the standard charter shares up by .2% swiss r's annual profit rose7% despite claims from natural and manmade disasters. however, those results missed forecasts last year, and it wasn't as severe as 2017 when a number of hurricanes, fires, and earthquakes in north america made it the costliest year ever for the insurance company. shares up by 1% in european trading. shares of lenovo hitting a nearly three-year high in hong kong trading the world's biggest maker of pc's swung to a profit in its third quarter beating forecasts. lenovo says it is optimistic about future growth in china and plans for focus on the high-end market those shares were up by about 12% in asian trade zbrierj >>> we are just getting started here on worldwide exchange up next, a housing pulse check the best global opportunities in real estate for your money we'll lay them out for you ahead. plus, johnson & johnson under fire yet again the dow component slapped with federal subpoenas over its baby powder the full details when "worldwide exchange" returns after isth and saying, "rea

other thing people are surprised about, how big of a hit coke is taking from foreign exchange it is exposedbut -- >> it had to be they had a hedge that went the wrong way. >> how do we know given that pepsi's ramp up in marketing costs when they have taken enough share to take the pedal off the metal on that front? >> once they get to higher growth targets they're growing. 4% organic growth is sort of 4% to 6%, jim, is the target, that's a step up from where they are. they just turned around north american beverages. >> plus 2. sodastre sodastream, let's watch this they're going after lacroix, millennials, they had lacroix at fyre fest. >> you keep bringing that up. >> it is most exciting thing -- it is the end of the millennial -- their whole shtick they had >> chico is also -- >> cannot stock it they cannot -- they can't beat demand and i had to beg for it, with the distributor, they had the new bubbly, the inew grapefruit >> you like pepsi better >> i like neil patrick harris and he's the spokesman for -- >> very nice guy industrial production, rick santelli hello, rick. >> january read

country's natural resources as collateral now though it's in the fold strict control of foreign currency exchanges restricted people's ability to access foreign produced goods this imbalance has led to hyper inflation that means inflation running at a million percent and it's rendered the ball of our worthless latin america editor lucien newman is on the ground in paternity correctness talking to people. about what it's like to fight for survival in venezuela right now i'm standing in a line in pit that a that is one of the largest slums in all of venezuela and these people have been waiting so that they can buy a treat it's called sardines one of the very few things that they can actually afford these days well they must sell to too expensive we can't afford anything they raise the minimum wage to eighteen thousand last month but you can't buy anything at all a kilo of cheese costs fifteen thousand voters and there goes practically you entire salary i mean everybody here is holding loads of bills in their hands but their apps they're almost worth nothing which you see here are fifteen thousand be

associates claimed the foreign-exchange research bob l.a. did not disclose the relationship. believes he was dismissed without cause. the woman involved was also fired. that is your business flash update. caroline: let's shift our attention. demand is booming. joining us from san francisco, from bloomberg intelligence. from intel worries and micron. that didn't seem to come through when it comes to ashok cloud providers. market rightt the now, anywhere from 350 to $200 billion big. a big block of that spending is in software. microsoftwith the growth rates are suggesting what amazon growth rates are suggesting, they are holding onto their own pretty well. in comparison to $2 trillion of spending, we're still over here. we anticipate the cloud markets and microsoft, google, and amazon are the beneficiaries here. classic may be the case, the chipmakers, downcast outlooks. >> they might be moving longer-term. >> the disconnect is because they are just different ends of the business, or micron and intel have been overoptimistic about how quickly things will grow, or other measure

are management problems that we wrote about in the investigation is adding the aml issues and foreign-exchange problems through 2017. so, i could keep going but that leads me to think how much is the culture changing? what is new and what is old and wire the scripted responses the same and as a journalist it makes me want to keep probing and asking questions. when they say they are taking the issue seriously, i just look at the facts . >> great. judge wyckoff, lawyers and consultants now take responsibility to investigate, diagnose problems and propose remedies in the private sector. you describe the ecosystem as a chance to rehabilitate the company's culture. the investigations and reports by wells fargo bank are one example. overseeing settlement are also a source for lawyers and consultants, what is your view of how well this system of an corporations rear to live in themselves work. does this process serve the interests of shareholders and the broader goal of justice in the context? >> so, i first want to say that i do not want to comment about wells fargo and nothing i say should be taken

they do things in areas like commodities, trading, foreign exchange market always managed to lose moneymight be quite good value, but we just don't see them as long-term growth businesses. so they have to look at it in that context. anna: i thought that one of the lessons was that banking could be boring and that was ok. various measures of volatility coming down in recent weeks. is this a pause before a storm? a lot of people kept saying the volatility is just back to stay. we have to get used to that. we returned to that volatile world westmark --? >> if i return in terms of equities and some of holy this was coming down, that's fine, do i see volatility, absolutely if you look at results and miss expectations, the stocks are down. if you do well, they could be up. i do not see it disappearing. what do you think about the sharpe ratios in stocks? they're relatively high and the return you can get, what does that mean to you? i worry about some of the models we look at. the quantitive easing of the last years could make the models, like everything. if you take ported in you get ported