interesting comments from george osborne. he spoke in wales and said a dangerous cocktail of global threats faces the british economy. he sensed complacency in throwng to take hold -- into the mix the upcoming referendum. that is causing a lot of banks to push back their expectations for rate hikes this year. in markets think will happen february 2017. the pound fell to its lowest level since june of 2010 against the dollar. the classic reasoning, the fed is heading in one way. u.k. is not moving at all. betty: thank you so much, mark barton. let me get to julie hyman. we're bouncing off our lows. julie: a similar trajectory in the u.s. futures shows the trajectory overnight in the course of the training. u.s.ight, that dip in stocks. since then, we have climbed back up. in this shows a more longer-term view. look at the three major averages right now, the training we are seeing, there are declines. they are much smaller. at one point, futures were indicating a drop for the nasdaq. it is less than half of that. it is lower, b

i'm pleased to welcome george osborne, the u.k. chancellor of the exchequer. what's so much about going on in the world. china is slowing down. we have economies on the brink. is going toent it be a tougher year? mr. osborne: definitely a tougher start to the year. i would look a bit beyond the markets and say, what's driving these things? china is moving to a consumption-based economy. energy is cheaper. that is a good thing for most families, businesses, and countries in the world. not everyone. got here in europe, you've the eurozone and the european central bank acting like a central bank does in the united states or united kingdom. i would look behind the volatility. there are some pretty positive transitions. francine: china is transitioning and it might take five years. there's going to be a bumpy road. we might look at valuations impacting world deflationary pressures. this cannot be a positive. mr. osborne: if you take the 5-10-year view, we are moving from an unsustainable model of growth in china to this consumption-based economy. i would say we sho

talking to george soros, talking to george osborne -- no big deal.ncine: it all depends on the timeline. this is true for investors and businessmen and for finance ministers. when i asked george osborne if he was concerned about market turmoil, he said, "i do not want to comment because i do not want to exasperate -- i do not want to exacerbate anything." george: behind the volatility, we should welcome that. francine: he says volatility but longer-term we should have the confidence that they would increase consumption like china will he is confident but then he is a politician, and he said it is better to be confident than not be confident. david: all the economists say that brexit is the biggest threat to the european economy. what does he say about that? francine: he is confident. we did to ceo's, and wpp, martin sorrell was saying that it is a concern because it goes to whether the u.k. can remain stable. this is the anglo-saxon darling of the european union. it creates a problem if the u.k. decides to leave the e.u. for the partners such as germ

george osborne warns that in 2017 -- 2016, there's a dangerous cocktail of new threats. the confidence level of recruiters in the u.k.? paul: let me give you a couple parts. it has been coming through since july. we see this before any other business. we talked about a start of slowdown in growth in the u.k. we've seen much more caution from clients. what is great for george osborne path,k about, the toxic this government has caused parts of that. if you look at the increased costs in the u.k. over the next four years, it is more than $15 billion worth of costs. manus: is there a recession on the way? paul: no sign at all. public debt, much more cautious. there are some cuts to do. growing by sector, 3% across the whole of the u.k., that there is greater uncertainty. program, andr surprise, surprise, coming into the start of this year, they are being more cautious. some anna: of the increase in costs is coming from staffing. you might be removed from the minimum wage story, but is that what you are referring to? paul: i do more than 50 breakfast seminars on year. i go ar

we will have the asian infrastructure and investment bank, and george osborne. and bank of japan governor, mr. juroda. we will speak to the chairman. that is coming up next. ♪ manus: it is 6:20 a.m. in london. let us get straight to the point of action in davos. >> thank you so much. a very cold day and we have to thank our guest because he is braving whening -- you look at the prices, there is no good news out there. when will we see prices stabilize? >> in our situation, i am in india. india is always important. i can see every growth. in copper. in iron ore. aluminum. world.look at the >> it is very tough. vedanta has heart -- has had to cut costs. cost have reduced our about $67. copper, we are trying to cut our costs. have got to do more. stock is down 22% so far this year. investors are going through a lot of pain. what can you say to reassure them? --this is the only company the new government has, with a two thirds majority. this government is determined. >> that is good for the economy. it is not good for the company's investors. growth, wewe have will

chancellor george osborne and harry ito kuroda. the sunny but freezing doubles, switzerland. ♪ >> from china, i am positive. the market has to accept the positive because it is possible that is impossible -- part of the functioning of the market. guy: the ceo of credit suisse speaking to francine lacqua a little bit earlier on. positive on china. compare and contrast what he had to say about china with what we heard in francine's conversation with george soros overnight who says he is currently watching the hard landing happen in china the big subject of davos. let's talk about what is happening right now. draghitalking in -- talking in's right now. -- talking in davos right now. we are up across the piece this morning. not as much as tokyo, 5% plus. center.mains front and that is the focus. that is what we are going to talk about. let's get back out to davos and francine lacqua. francine: thank you so much. we are pleased to say we are hit -- where with ahead of -- jin liqun. this is an economy that will do great. are we overoptim

the comments from george osborne certainly made me take notice. -- retail cutting jobs.l be talking oil as crude falls to its lowest level in 12 years. we will be comparing the u.k. and new york luxury housing market. i know you like your luxury housing. now that i know what car your drive. what: we are talking about is less expensive, essentially, between london and new york. mark barton in europe for us. for a look at the u.s. markets, abigail doolittle has the latest . a lot of stocks getting hit to date. -- getting hit today. down are all the top five tech members. these five comprise 24% of the composite index. --h of these top five microsoft and facebook. microsoft in a global selloff. there doesn't seem to be anything specific here. kind of surprising kids it is the most mature of the bunch. considering -- kind of surprising considering it is the most mature of the bunch. what to do with tech, buy or sell? the head of technical analysis at oppenheimer called the idea that we would see a correction in the first half. he says he expects to see the selloff continue b

george osborne spoke to us earlier today to discuss one of the hottest topics on his agenda.rendum. + many -- >> many people would like to stay in the european union but that is not their decision, it is the decision of the british people. we want to achieve reform and european union to make europe more competitive and a forum to protect countries like written that do not have the euro to make sure this organization works for members like the u.k.. if we get the reforms we will say to the british people, let's stay in this reformed europe. >> are you not risking the stability of u.k. for the next eight to 12 months for renegotiation which are important but possibly not crucial. >> it is poor and -- it is important to britain's future that we are in a reformed european union and our continent is in price with the world economy. it is important that if we will be in european union we can coexist alongside a eurozone that is integrated migrating a financial union. i do not detect at the moment that it is deterring investment in the u.k. we are one of the bright spots of the glob

a bounce back from george osborne when he was speaking about being more cautious.llspect they are taking on depreciation. in the short-term, these market moves can hit sentiment. we have got to make sure that people realize that the developed world is still functioning very well. oil has been down for a wild. china is going to be exporting deflation for quite some time. at four times this year. that is against the backdrop of a global economy that they say they do not pay that much attention to, but is very from china,wing flowing from the emerging markets, incredibly powerful. you wonder if the markets have it right rather than policymakers. >> i think we have to wait and see in the next 12 months. particular this reserve board has been more receptive to listening to the markets. i think janet yellen is sensitive to the noise that comes out of the market. if you are a policymaker, you have to interpret noise and moved through that noise and look at longer-term as well. it is balancing those two together. if you expect the fed is not going to do what it has said it

julia joins us speaking to george osborne. that's one you won't want to miss. >>> china moves to inject $50 billion into the market. the ecb meeting with a policy decision over a few hours. >> media giant viacom slashing compensation for the ceo. this as the company faces increased pressure from shareholders. it's thursday, january 21st, 2016 and worldwide exchange begins right now. ♪

making headlines this morning imf chief winning support from british finance minister george osborne.inate her today for second term as managing director of the international monetary fund. at this point she has no major challengers and she said she would serve another term. her term expires this summer. >> still to come here on worldwide exchange, a live market report from london. the story behind deutsche bank's big loss and it's 8% fall. 7.3% fall in european trade. we'll have that for you in a couple of minutes but first check out the global markets in bear market territory. they're not the only ones. in fact, also the likes of germany and spain joining china in bear market territory and more analysis on that and much more here on cnbc after this break. >>> good morning, another wild ride. u.s. stock futures swinging again after yesterday's 1,000 point move on the dow. >> a scary economic sign from the baltic dry intex coming up next. >> plus general motors makes a move into the fast lane with a new car sharing program but can it pass the competition? it's thursday, january 21st,

you have marked tiny -- mark carney saying the growth could be worse by george osborne said we do not signs of investment getting slower or people getting -- where businesses getting worried about a brexit scenario quite yet. you need to play that into your portfolio. not only have these companies done three times better than the ftse 100 since the financial racist, so there is obviously a valuation issue. also, what companies are going u.k. isbusiness if the isolated from the european union? these are companies that are depending on the european rebound at a time when it is showing signs of accelerating. for them it is the worst possible scenario. jonathon: i spent last week in davos and i spoke with some u.k. corporate leaders. where there is consensus, it is the in between moment and it will be damaging and there is consensus whether you see the future is bright. for a u.k. investor do you deal risk -- de risk? we have seen the currency weekend. the studies i have seen would suggest that if we do have brexit then we will lose about 1% of u.k. gdp for a couple of years. that is a bi

this is basically george osborne saying he is not sure how to read the financial markets.y which expect more volatility. tom: when we have these moments, there is a linkage between institutions and is the bank of england involved in this? the way we see it, the bank of england is here to provide some stability. it has a mandate on inflation. in this turmoil, when you look at the referendum, they do not want to give political signal. bank'sok at the regulating, but they do not have a say and when the government sells it off or not. deutsche bank reporting a fourth-quarter loss. fixed income in currency rating fell 16%. >> in spite of continuing of low or negative interest rates, revenues held up well. progress with an increase in 20%. posted aeutsche bank net loss of 7.4 billion u.s. dollars. time warner cable fourth-quarter results better than expected. tops $6 billion. another big quarter for facebook. fourth-quarter sales rose 52 percent. about 4/5 of the revenue is from mobile devices now. a 1.6 billion users at this point. tom: you wonder where this will be in five yea

manus: you have george osborne morning about the headwind and he will make that speech later today.tinues to have a fragile upturn. that is the word from the bank of europe. what a want to get a sense of from you is that in the u.s. are in lockstep. tick for tick at the moment. it has been an inauspicious start. world inlook at the terms of that fragile upturn from an investment perspective how do you position? >> i think that correlation will break. as i said the big thing we will see is a break in the world's population. some european countries are doing very well but we are in a different part of the cycle in mainland europe then the united states and that will the verge. matterents are going to in what currency were based in. one was negative in one was positive. going back 20 years, d correlated economies and d correlated currencies -- d decorrelated currencies. anna: you mention the u.k. doesn't have quite the same headwinds but short osborne will be speaking in wales later today he will be talking about headwinds coming from china and sang it is mission-critical on the econom

george osborne warning us we are facing a cocktail of risk. that encompasses a broad church. the odds of donald trump winning the nomination in the united grade comes up at 34% when you think of 2016, i mean, what are your biggest debt when you finish the former board meeting, you look at statistics like this, what are you worried about? michael: clearly, there are geopolitical issues that worry us. we really would like to see as businesspeople, there has to be some solution to the situation in the middle east. when we look at what is happening in libya, syria, we look at the immigration debate problem, critical issues arising from that. these things are very disruptive politically. we are very concerned when we see moving to the left and the right, when we the a movement that when we move for a period of time, it there is much more consensus. we see that separating a bit from a to the left and right. it creates instability or inconsistency of policy. business does not like that. anna: some of that driven by china, arguably because of the actions, rightly or wrongly, being ta

chancellor george osborne, given the market turmoil, and given the fact that we are in a worse placese of the concerns over brexit, how he viewed china. >> it's definitely a tougher start to the year, and we see that in the financial markets. i would look beyond the market and say what is driving these things. china is moving to a consumption-based economy. that is a good thing. energy is cheaper. that is a good thing for most families and most businesses in most countries. not everyone, but that is a fundamentally good thing for the global economy. francine: you know, tom, we started off our davos coverage asking whether or not there were too many optimists. ceos don't want to talk about china -- focus on the turmoil, china will get better. tom: i'm getting a more adult view by policymakers and economists. what strikes me, the new effects of low interest rates and what they mean for business, and also what they mean for china. it pushes against the hard landing certitude you heard earlier. francine: right. there was really nothing he was optimistic about. he said there was almost a