ppi gaining the most since 2011, cpi more moderate.producer prices for china's corporate earnings given that cpi still modest? >> the report in march will be key for investors in terms of guidance, the results themselves. if we take a step back this time a year ago, the world in terms of china itself was looking more negative come a ppi did surprise is for upside, consensus ppi to spill over into cpi. what this means for companies, cost inflation, price hikes in terms of consumer electronics, so it is really about margins, compressed margins, and what roi. means for ou yousef: so where does that leave the trajectory of u.s. dollar strength? >> in terms again, the u.s. dollar will be the leading indicator for many currencies this year, whether it is the , or the yen. yuan forget that the global trade environment remains fragile, one point 7% global growth last year, so any key disturbances could see panic in the markets again from a trade perspective. shery: thank you so much for joining us today and breaking down the markets for us of

ppi inflation up 69%.ing commodity prices and tightening of that flight demand we had industrial level and the weaker yuan feeding inflation in china. deflation on that factor gate for four years and now we are getting a clip the lob pass -- the last few months. exploit 9%. -- 6.9 percent. >> looking across the asset classes, maybe the aussie dollar, that was high. we are pushing towards session highs on the aussie. .35 there. mix across the currency market. we sell the dollar strengthened overnight. apart from what we are seeing in the aussie dollar, it is ethically flat across markets. this is one cross i am following. -- just about the push and the pool across the currency market. ,his rally across say metal iron ore was up 6% overnight. still sing a rally in shanghai of 1.5%. -- thislooking across is going through the floor. 21 month low, 38 right now on that cross. it opened about an hour back, i would say there is a lot of momentum going through. when you look at the eight shares. when hundred percen

given that ppi in china has means aositive, this recovery. think policy typing is happening in china. -- cting liquidity it doesn't mean that the central bank now shifting to a broad-based monetary. fiscal stimulus is still going to supplant growth in china. >> thank you. of next, the president's enthusiastic use of twitter has not been enough to boost the platform's bottom line. this is bloomberg. ♪

prescription ppis are only recommended for up to eight weeks.or over the counter versions, the fda says 14 days, no more than three times a year. >> if you do need to stay on them, maybe we should consider checking kidney function periodically. >> reporter: kim takes a different type of acid reducer and is considering diet changes to control her reflux. for her, a second chance, after a silent danger that could have been much worse. kristen dahlgren, nbc news, new york. >>> up next here tonight, the new major did you make that? i did... n't. hey, come look what lisa made. wow. you grilled that chicken? yup! i did... n't. mhm, lisa. you roasted this? uhuh... n't. introducing smartmade by smart ones. real ingredients, grilled and roasted using the same smart cooking techniques you do. you own a grill? smartmade frozen meals. it's like you made it. and you did... n't. cking up for kyle. here you go. you wouldn't put up with part of a pizza. um. something wrong? so when it comes to pain relievers, why put up with just part of a day? you want the who

now, last year, like ppi insurance payments. now, last yea r, lloyds like ppi insurance payments.oyds had to set aside about £4 billion for compensation for pment pi mis—selling, payment protection insurance, this year it is just £1 protection insurance, this year it isjust £1 billion protection insurance, this year it is just £1 billion and that elevates the profits. if you look at underlying profits, it is slightly worse than last year. so although we have had the enthusiastic response from the markets, underneath it all, you know, the bank is still trueing along reasonably well, but not in a spectacularfashion along reasonably well, but not in a spectacular fashion just as along reasonably well, but not in a spectacularfashionjust as hsbc yesterday when you stripped out the one off items, the writing off the value of businesses that haven't performed well, underneath it all, it was doing pretty much the same as it was doing pretty much the same as it had been the year. so reasons to be optimistic, but it depends really for lloyds, it is a boring bank and the investors seem to l

more than 15 million americans suffering acid reflux, heartburn have ppis and many take them over the counter like nexxium without a doctor's supervision. there may be side effects you may not recognize if you don't follow the directions. here's nbc's kristen dahlgren. >> when her doctor told her to take a pill for acid reflux -- >> he just said take it once a day and i'll see in you six months to a year. >> reporter: -- she had no idea her kidneys would be slowly shutting down. ppis sold over the counter under brand names like pred va sin and prilosec, more than half of them who develop kidney problems show no obvious warning signs. >> if the kidneys get bad enough, it can shorten your life and increase risk for heart attacks and strokes, so we definitely don't want kidney function to go unnoticed. >> reporter: kim lucked out. a routine bloodwork picked up a change in her kidney function. >> i had no symptoms and that's the sdariesda scariest part of this. this could have gone into something even more serious. >> reporter: the makers of the drugs only looked at prescription strength

they have to talk about ppi. i want to bring up cpi inflation.t is well below the government's four-year target, but it is still creeping up to the highest expected since may of 2014 which is 2.5%. we are up to likely to .4% since january of this year. 2.1% since december. high demand raising those prices ahead of the lunar new y ear. food prices coming down a bit so that has maybe tempered what could have been a higher rise. now to ppi, this is likely rising, quite sharply, for a fifth consecutive month after four years of deflation. the forecast is for 6.5% rise year-over-year. commodity prices feeding into the input cost. flat at industrial markets. it helps boost profits for these chinese industrials, but raising the prospect of tightening. betty: it does indeed. we were talking about with our last guest, but it also depends largely on these prices creeping into consumer inflation. stephen: that is right. these industrial companies will have purchasing power. why are we not seeing a sharp rise in ppi inflation, which could be down the road. i

but i think we are getting towards the end of ppi provisioning now.nna: that was manus speaking to the rbs ceo. -- cfo. more lines coming out from the ceo. a reminder of what happens when things go wrong. also confirming there will be job cuts coming through in the introduction to the interview. there will be job losses around the business. will be fewerhere branches than the business has today. 7:40 in london. coming up, investors pour over the u.s. treasury secretary's comments. we got reaction, next. les, the 60 billion euro brexit bill, that is what the austrian chancellor says written will be charged to leave the eu. we will have the reaction from mps. above bsf earnings coming expectations. of thek to the ceo company at 8:30 u.k. time. this is bloomberg. anna: welcome back, this is the european open. that's have a look at the big business stories of the moment. here is juliette saly with your business flash. thank you. saudi arabia has said oil giant saudi aramco is worth more than $2 trillion. the industry executives, analysts and investors hav

for ppi, february of 2013. i could go more on ppi, but i found cpi more compelling.line up 2.5%, that's not flat. and 2.3 on year over year core, that's now 15 months in a row 2% or higher. 2%, of course, is that arbitrary federal reserve level that they consider important. i don't know, legislation just says stable prices. all right, but there's a lot of other things that affect what's going on between this relationship. and when we talk about investment buyers, yields may now have gotten juicy, especially when you look at minus 90 basis points in the european two-year. so, what does this do? they actually pushes rates down. less hedging! that 3450e7means as stocks go u there's not much selling in treasuries because of let nervousness in stocks. think vix here. that pushes rates down. overseas rates, the relative value trade. it might not be pulling one for one, but it's pulling nonetheless. that actually brings rates down. and central bankers, their balance sheet's still bloated, qe still being done at many central banks, runoff, u.s. federal reserve's still buying

exampleook at ppi as an , we have gone from negative to positive. profits are improving.oving which means bad debt will be less going forward. >> shadow banking is rising. the shadow banking side of things seems to be a dark corner that people are buried of. -- are weary of. >> shadow banking is a concern. bringere is a desire to it back into the proper banking system to allow capital to be applied in regulators to stay on top of it. in markets like china, that is what we are starting to see. youook at total financing are seeing a lot of this coming back onto balance sheets which i think is positive. u.s.,nging it back to the i'm curious about the trump policy and the protectionist policy. headwind play into any in your bullish view on china? >> i think it is a really interesting question. the natural response is protectionism will be bad. from one aspect, protectionism -- the negatives but it u.s. wants to make things that are barred from overseas it needs to build the capacity. i think it is a double-edged sword. it is not always what people are actually thinking about.

these are proton pump inhibitors or ppis.hey're sold under brand names like prevacid, prilosec, nexium. these drugs have been linked to kidney issues before but a new study from washington university finds that half of patients who experienced chronic kidney damage had no idea they had it until it was too late. they say those people did not experience any problems that would tell them that their kidney function was in decline. researchers say patients should always tell doctors when they are taking these ppis because they're over the counter and only consume them when absolutely necessary. >>> parents know boys and girls can certainly act differently. now new research suggests those differences may begin before birth. sometimes women carrying girls may deal with more sickness during their pregnancies. and researchers at ohio state university in a study, scientists looked at the mother's immune cells and exposed them to a bacteria in the lab. cells from women carrying baby girls showed greater inflammation. >> this means infla

we definitely don't want kidney function to go unnoticed. >> so ppis are sold over the counter under names like prilosec and nexium. they are safe when used correctly. >> mazda recalling about 460,000 cars worldwide. they have issues with the diesel systems. mazda is recalling cars to fix several diesel engines that could cause them to stall. the recall affects the cx 5 and mazda 3. >>> the city of san jose will reveal the damage estimates. those will determine how much money the city can get the state and federal government to help as the evacuations are mandatory several neighborhoods in san jose. >>> where to begin if you need to clean up your property after the flood? tips from the city of san jose. you're watching today in the bay. -just gonna do a little cut. -jim? -yeah? -i think you need to let go of the ab booster. why don't we sell it on letgo? [banging on door] i'll take it. it's time to snap, post, chat and sell. it's time to letgo. >>> right now at 6:30, we continue to follow a developing situation in san jose where thousands are still under mandatory evacuation orders f

of the big thing that has moved the dial is ppi, ppi costs have fallen out of the equation. —— the bigttom line, part of that is down to management, some of that is down to management, some of that is down to management, some of that is down to the way that we're banking now, a lot of us are doing more online banking so that reduces the need for a presence on the high street. that's what a lot of people are getting frustrated with this morning, certainly online, we talk about branches like that but they're disappearing because it is trying to save £1.5 billion. all banks are doing it, it's not unique to lloyds, but that's the difficulty for the big banks, the balance between a high street presence and the online stuff it wants to do that is cheaper. absolutely, that isn't exclusive to lloyds, it's happening across the industry and across a lot of industries where we're changing the way we behave, notjust banking but shopping as well and that's having an effect on all businesses across the uk. i mentioned in the introduction that we own quite a lot of lloyds, we bailed it out at the hei

ppi, 1.6 near on near. almost 13% month on month. >> look, these things are -- what we've seen is when we had the oil move to the 50s, it comes back. then we come back to gasoline when we see big inventories, which is what we'll have built up, i think, rather soon. the main thing, my take away about oil, is we are drilling a lot but we're not letting the -- the oil is staying in the ground until needed. it is entirely possible if oil were to go to $55, $56, you'd see a flood gate of oil. i think this range, $50, $57 is what we're stuck with and the gasoline won't go higher. not to fret about s&p, 40 days move up or down. that is the longest such streak in history. as the s&p and nas have had five days up and the flurry of all-time highs yesterday. there's the opening bell. the s&p at the bottom of the screen. wbiy inve investments. the asian supermarket chain in the u.s. celebrating its listing. fresh. >> we have a presidential tweet for the first time in a while, carl. >> say it again? >> the president has

reported its highest annual profit in a decade, helped by a reduction in payment protection insurance, ppi increased to £4.24 billion, a level last seen in 2006 before the financial crisis. the uk government's stake in lloyds has now fallen below 5% and it has said it wants to return the bank to full private ownership this year. the cost of essential repairs to school buildings in england has reached almost £7 billion, according to the national audit office. in a report published today, it warns that figure could double by 2020. it also says that ministers' plans to create 500 new free schools adds up to a bill of £2.5 billion simply to purchase the land needed to build them. the white house has issued new guidelines designed to multiply the deportation of illegal immigrants from the united states. officials have been told to enforce existing laws more strictly, and more quickly, and to target undocumented people arrested for minor offences such as shoplifting or traffic violations. president trump's spokesman, sean spicer, said the new rules would make immigration officers' work easier. t

this is a company we are looking for an update on ppi.ny has taken 17 billion pounds of provisions since 2011 on the subject of ppi. they have been trying to fight against the record low interest illuminatingent by jobs, expanding at a higher margin lending with the acquisition of bank of america and the mbna credit card business in the u.k. when it comes to the detail here, we will see the government getting out of the stock where it bailed out the company at the height of the financial crisis. u.k. replaced it as the largest shareholder last month. that is the retail around the lloyds story as the numbers come through. that is the banking story. we will get two more of that in a moment. we are getting money -- numbers out of hayes. giving us an update on their numbers. 's.ting the basic epf i will bring up the right page on the bloomberg. they are talking about net fees net fees% rising 17% to 465.5 million pounds. a rise of 3% on a like for like basis. pretax profit for the rising at 17% also. we are going to be speaking in just a mome

point tould clearly the fact that there is no ppi charges in the fourth quarter.ndal sort of dogged the large retail banks in the u.k., lloyds is setting aside money for this over the past few years. quarter, no charges. that is one of the things that helps their bottom line. there is a little bit of conduct charge in there, 475 million pounds. that contributes to the statutory miss on earnings. on an underlying basis, it is very strong, paying the dividend. things are generally quite good if you are a lloyds shareholder today. manus: that sets them apart from rbs. challenge. it is the difference between the two, isn't it? it is still difficult to envision a dividend prospect with rbs versus lloyds. richard: absolutely. rbs is some way from paying dividends. their chief executive gave an interview to a newspaper today saying 2018 would be the year they would become profitable again. they are expected to post a 6.5 billion pound loss on friday, huge numbers. they are still taking massive provisions for a u.s. mortgage investigation. they have got huge restructuring

cpi data in south korea and taiwan, and ppi did in china as well.hike? mark: we have got to a point where the rate cutting cycle is over. india for example, you can see inflation pressure rising there as well. it is not just about commodity prices. it is also about the fact that interest rates haven't low and policy rates haven't loose and that is leveling out and we will eventually talk about rate hikes. shery: a big part of it is commodities. you just showed us that beautiful chart. commodity price inflation running above zero for the first time in five years. , thatn see the white line would be fuels and primary commodities excluding fuels, both above 0%. if the bulk of these inflation is -- would that mean inflation would dissipate in asia? mark: what happens generally is whenever commodity prices pick in for example you saw korea's numbers and you have seen it in the chinese numbers and the ppi figures. got does not necessarily through cpi. quite often it hits margins. it is not necessarily the case that you get a quick increase in inflation, a

i'm not an economist even though ppi have advocated trade policy's for a long time. i want to put donald trump's approach to trade into context. in his inaugural speech i learned something which is his worldview can be described as a coherent world and i don't agree with that at a large national economic 70 years of internationalism predicated on trade liberalization, international economic cooperation as a pillar of american security and economic interests in the world. as part of our leadership strategy. that's now being directly challenged by president trump and mr. bannon in favor of this america first idea which by the way used to be until trump resurrected it was a discredited idea in american history because it was connected with charles lindbergh on the eve of world war ii and it had a bad aura around it. now mr. trump, what is being proposed not just a radical change in trade policy. it's a radical change to our leadership world over seven decades since franklin roosevelt so this is huge. now i'm not opposed to radical change necessarily if it's based on sou

bit of concern that these big rallies we have seen could have been overdone, and as we saw, cpi and ppiame in faster than expected, a little bit of concern we could see tightening monetary policy from the pboc. toshiba, it ist one stock that has been plummeting today, down 8% in tokyo trade. we did here in the last hour that it has applied for an extension of its earnings that were supposed to come out today but will now come out on march 14. in singapore, reports that -- we saw nikon coming under pressure following a profit forecast. quite a bit of movers in the asian session today. anna: juliette, thank you. juliette saly with all the big movers in the asia session, joining us from hong kong. just over three weeks into trump 's presidency the white house national security adviser michael flynn has resigned, amid allegations of improper contact with russian officials. manus: general keith kellogg has been named acting national security advisor. he was his chief of staff, joining us now on the phone on this subject is our executive editor for bloomberg news, craig gordon. thank you so m

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who thought that we'd be paying, as an industry, 40 to 45 billion for ppi insurance? is very likely that rbs will make another loss next year, they have too settled with us authorities over the rbs role in the sub—prime mortgage crisis, so more to come. underneath the wreckage, there is a decent bank, £1 billion of profit every quarter, lending to uk businesses and homeowners, but we have some way to go before we get there. thousands of jobs have some way to go before we get there. thousands ofjobs could go over the next year, pain ahead but also some light at the bank today, they said for the first time they we re they said for the first time they were confident they would make a profit in 2018. thank you very much, simonjack. police are questioning a man and woman over the escape of a convicted murderer in liverpool. they're being held on suspicion of helping shaun walmsley, who got away from guards during a hospital visit. let's get the latest from our correspondentjudith moritz. still no sign of him? that's right. shaun walmsley escaped from here on tuesday aftern

given that ppi in china has means aositive, this recovery. policy typing is happening in china. -- cting liquidity it doesn't mean that the central bank now shifting to a broad-based monetary. fiscal stimulus is still going to supplant growth in china. >> thank you. of next, the president's enthusiastic use of twitter has not been enough to boost the platform's bottom line. this is bloomberg. ♪ ♪ this is daybreak asia. twitter shares dropping the most in nearly four months after revenue growth slowed to just 1% , suggesting efforts to win more pay off.ng is yet to our check reporter joins us now from san francisco. i think what happened half an hour ago is emblematic of what is going on with twitter. trump takes to twitter first to let the country know what he thinks about this ruling by the appeals court, but that is not enough. that is not enough to save the company. what is going on? >> the company has really never been more influential in the global conversation about what is happening, especially propelled by trump. but has not made a de

a new study focusing on prescription strength ppis says more than half of those who develop kidney problemshow no obvious warning enough, it could increase the chance of heart and strokes. we don't want kidney dysfunction to be unnoticed. >> a routine physical picked up a change in her kidney function. >> i had no symptoms, this could have gone into something even more serious. the makers of the drug point out the study looked only at prescription strength doses and said they are safe and effective when used correctly. they are only recommended for up to eight weeks. for over the counter versions, the fda says 14 days, no more than three times a year. >> if you do need to stay on them, maybe we should consider checking kidney function sperdically. >> kim takes a different type of acid reducer and considering diet changes. for her a second chance of a silent danger that could have been much worse. kristen dahlgren, nbc news, new that the martin luther king junior memorial library in d.c. is a big music venue. the library will close for a major renovation and won't reopen until 2020. your las

hillary tells me that no cpi's for chocolate, only ppi.sn't seen much ,nflation, which will suit ali -- dolly, is wine. save yourself some money and by the wine. some sense because i was going to say i think that index might be outdated with movies. i am going to be netflix and chilling and that is a lot cheaper. i have something that is pretty great. .t is called i love you s it is a love panic index. i am getting serious here. we have the technical signal of the heart pattern. you have seen the love of panic index get more and more bearish with sentiment very bearish on u.s. stocks. it was up until spring of this year and then we had the sharp rebound and now we are at the highest level in two years. it could be a contrary him -- contrarium sign. i feel pretty good on valentines day. julie: i like both of these, only one of the suitors can get a rose. i think i prefer this chart, however, mark barton far above on the flattery part. mark barton, you have got it and hillary as well. mark: hillary clark, the queen of charts with us today. j

breaking economic data, eurozone ppi rising 0.7% on the month, 1.6% on the year.oth numbers hotter than forecast. uk construction pmi dropped sharply in january. mark carney will be a great person to draw all of the late of the uk data together and give his forecast for the year. 7:00 a.m. eastern time is the bank of england decision. the press conference comes later. no expectation for a change or any change in interest rates at the moment. the latest qe package expired yesterday, and not expected to bring on another new one. european markets today, slightly negative. quite a lot to of owni inearnin coming out. lots of banks reporting. some moving sharply the other way. earnings in europe picking up the pace this week, having a diver divergent performance. >> volvo was good yesterday, siemens was good. >>> consumer confidence in japan increasing to a 3 1/2 year high. the nikkei down 1.2% following in the footsteps there of the dollar/yen. hong kong closing lower a half percent. china remains closed for the lunar new year holiday. australia and new zealand down a

and our partners at ppi from women to men. it is under our company.hed wonderful businesses. it is our experiential component of our business. wonderful people. marty kress is on our board. out of north carolina, incredible people. >> so let's take men's line as an example. do people come to you with a need? do they come to you with an idea? or are you looking at the market and seeing an opportunity? >> primarily hearing from our customers. hearing what the demands are. that's how we started our brand. and it has been wonderful and powerful to work in ways that are different and to have partnership that's are truly different and allow us -- >> is it under your name? >> no. not everything. that's something that is exciting, too. to work with companies. some that we own, some we have partnerships with that don't necessarily bear my name. >>> so what is the opening you would have seen in the men's had wear area? >> improvements upon it with. quality. with price to value ratio. great looks fashion. >> you want fashion. >> we have a vast channel of distrib

tomorrow we'll get january ppi, wholesale inflation. yellen will deliver they are monetary policy.wednesday she gives the same testimony to the house financial services committee. we'll also get january retail sales, cpi, and industrial production. on thursday look out for jobless claims, housing starts, and the philly fed survey. also more than 50 companies in the s&p 500 will be reporting this week. the list includes cisco, pepsico, kraft heinz, t-moblie, marriott, and campbell's soup. >> 10% of the s&p 500. >>> today in washington president trump will meet with canadian prime minister justin trudeau. they are expected to discuss jobs, economic growth, and trade. but also to discuss things they disagree on including global trade, immigration, and refugee policies. >>> in entertainment news, adele and the late david bowie were winners at the grammy awards. landon joins us with more. >> adele and bowie taking the home five awards while chance the rapper got three for a record that was only available online and for free. beyonce one won grammy. sony resigned adele and beyonce last y

it was meant to be at 2.7% so that's not as high as the cpi and ppi.rling has dipped a little bit off the back of that. meantime euro's trade surface coming in at 28.1 billion euros. that's up and ahead of consensus. what does this mean for european markets. they are higher today. yesterday the broad stock 600 was just in positive territory. essentially european markets were flat or slightly down. they didn't enjoy the yellen bounce which started to come late in the day's trade in europe and, thus, they're playing a little bit of catchup this morning, the european markets. >> despite some concern about the continued political uncertainty. >> yeah, absolutely. i think that manifested a little bit more in the bond markets. it has equity markets over the last five or six days similar to u.s. markets. we've seen more risk on. decent rally in the last week. >>> quick check on the broader markets and let's start first with oil. you're seeing oil prices pressured a little for wti and brent crude. there are some concerns about whether or not opec's production

we also get december ppi data this morning. look for results from dr.napple, molson coors and after the bell, we hear from insurance giant aig. >>> front and center is president trump's national security adviser michael flynn resigning. the departure came hours after the justice department learned that flynn was subject to blackmail because he misled mike pence and other senior officials about his communications with the russian ambassador to the yig united states. keith kellogg, a top policy adviser for the president trump campaign is now acting national security adviser. this may have come as a surprise, but it did seem like some traders are pegging the weakness in the dollar to this abrupt resignation of michael flynn. >> i think it came as a surprise relative to the last week or so. during the course of yesterday it was starting to point that way. all eyes, as edward lawrence was telling us, on the various names heading to the white house today, including david petraeus. >>> credit suisse reporting a wider than expected loss. revenue fell 7% in the

then finally is will marshall who is president and founder of the progressive policy institute, the ppi, which is very well established here as one of the chief intelect movements. we need you now, will. i am begin with gary with the lead off questions. what are you opinions about the direction things are taking? >> thanks, bob and thanks very much for organizing this. thanks to everyone who has come and who is listening. the first point i would make and i have six quick ones. this will be a period of opportunities lost. no tpp and no trade and service agreement. these are opportunities lost. we talk today of the benefits that could beed be had. it is loosing something you might have it. second point is trump has enormous power as i have written on our website to restrict trade. he has much less power to liberalize trade because the liberalized trade has to go back to congress. to restrict trade he as unilateral power going back a century. however, he is clear with the u judiciary in using the powers. there are nevertheless checks and balances in the system. the first check is the congr

whether it is indian, chinese, ppi up at the highest levels, and a german gdp number with cayman -- whiche in less than the market. the road to 100 million euros. how do you do it? bunds will go down to zero. you have a crash in yield, a rise in price, and the trade is spreads, so it allows you to take advantage of any drop in yields on the netherlands. what is happening with global markets, the msci all world index. i know people say, forget about that. over..day rsi is msci, all within one person of a within 1% of its all-time high. bank of america merrill lynch saying, you do not want to underestimate the dutch elections and the feds for cody to tightening -- said's proclivity for tightening. fed's proclivity for tightening. the ceo joins us and he talked about global diversification and getting through. they all say that in the front. let us see what they say when the results passed through on march 15. guy. guy: manus. thank you very much indeed. in terms of the rotation we are seeing this morning, miners generally on offer today, so they had been welded over the last few sessions. y

am i correct to assume we are seeing the final moments of ppi doggedly hitting rbs?ok another 200 .illion pounds to provisions i think that reflects a conservative assumption about how long it may take until we sca, buten out of the i think we are getting out of provisioning now. rbs. that was the cfo of also bank earnings, we've got that. good morning to you. profits expected in 2018. some 10 years after the financial crisis. how did obvious do this time around? onif we look at the results an annual basis, the ninth annual loss in a row. they made a 3 billion underlying profit, but that was wiped out i 10 billion in exceptional items. took more ppiey charges in the last quarter and have to take another charge as well as for the nondisclosure of the williams and glenn branches. anna: just the conduct charges, 5.9 billion pounds. isphen: this is a bank that still restructuring. it is nice that they think they 10 get to a profit after years of losses, but that remains to be seen. consumer spending, no one knows what structure rbs will look like. they have identified an

just to put a plug in there, very interesting study out there by ppi, sort of a centrist think tank that focuses on tech issues. i think it is called something like investment heroes where they look every year, they look through corporate financial statements at who the biggest investors in infrastructure are in the united states and list the companies. and the numbers are kind of staggering. so i think the biggest investor in the united states is at&t which spends $20 billion a year on capital investment. that's where we need to look if we get more infrastructure investment. >> i'll agree with chris. i think that adding another program is going the exact wrong direction. i think we need to look and reform the existing programs that we have. many of which including tiger are -- i view them as earmarks in disguise for the most part. before we go, adding more spending, we need to reform the existing programs. question over here. >> thank you. my question basically is from -- [ inaudible ] >> we have a microphone for you. >> sorry. on now? you hear? yes, i'm with the arlington transportatio

we're just minutes away from ppi, and we'll bring you those numbers.e on the table. we talked fed and market strategy with blackrock's rick rieder. that's next. "squawk box" will be right back. . . retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests. sign up at etrade.com and get up to six hundred dollars. ♪ >>> welcome back, everybody. we are just a few seconds away from the producer price index. the futures this morning have been in the green despite this holiday. valentine's day today. still, you're looking at dow futures up about 26 points above fair value. let's get right over to rick. >> oh, boy. there was a gasp behind me. up 0.6. yes, up 0.6 on headline january ppi. if you strip out the all-important food and energy, up 0.4. month over month on the trade side is up 0.4 as well. now, let's strip out

on the economic agenda, tomorrow we'll get january ppi. fed chair janet yellen will deliver her semiannual report on monetary policy. that happens at 10:00 a.m. eastern time. on wednesday yellen will testify before the house financial services committee. we have january retail sales, cpi and industrial production. on thursday you have to look for jobless claims, housing starts, and the philly fed survey. and we have more than 50 companies in the s&p 500 reporting results this week. that list includes cisco, pepsico and campbell's soup among them. >> the dam, there was erosion -- because we were in northern california. >> and you evacuated to new york. >> there was some rain. that's all i'm going to tell you. >> i saw the rain. >> and there had been rain two weeks ago, too, that people thought, good it, it's out of the way for the tournament. >> the roads shut down all over the place. >> i'm still wet. i will tell you something about rain gear. it fails. have you ever tried -- oh, i have my rain gear. i have my rain gear. it goes through fi

here in the uk there is still the remnants of the ppi compensation it is paying out people.e are one of the biggest shareholders. we need banks to do well to lend to businesses to be able to give us decent customer services and rates. cost cutting comes in somewhere. we have been hearing about £2 billion of cost cutting and that could well hitjobs across the business. thank you. leicester city has sacked manager claudio ranieri just nine months after he led the clubs to its first premier league title. the foxes are only one place above the relegation zone with 13 matches left. 0ur sports editor dan roan has more. he masterminded one of sport's greatest miracles, but less than a year after claudio ranieri's leicester city became the most unlikely premier league winners ever, the man who achieved the dream has been dismissed. leicester city are the premier league champions! last season's celebrations have turned to fears of relegation. having swept all before them, this season the euphoria has evaporated. the champions losing their last five league matches. and with leicester

christopher -- and by the way, my first name is christopher, so chris christopher, inflation numbers, ppiesterday highest in quite some time, are you concerned that inflation may prompt the fed to move faster, quicker, higher, sooner, and that that might make the market stumble? >> not really. for the most part, you know, the cpi report today, which was for the month of january did show that inflation is gaining traction with the pretty strong employment record we had for january as well. we think that a fed hike is more likely in march, but we sort of think our baseline scenario is for three hikes, but starting sort of in june. >> a little inflation is a good thing, right? >> it's -- >> wages go up? >> yeah, that's true, however, for consumers for the on most part they don't like to see food prices higher or gasoline, even a lot of good prices that they've been enjoeing. they have been in an inflationary mode for the most part, especially lower-income households. >> certainly not. >> but for the overall economic environment, it is sort of a good thin. the fed wants tore higher inflation.

some of the most popular ppis which are also available over-the-counter are sold under the brand names 15 million americans use the medications regularly. david, good morning. >> good morning. >> what are the risks that the study found with the drugs? >> what the study showed is continued use of the drugs studied over five years in the veterans administration. so a big data study found that if you took these for a long period of time that the rate of chronic kidney disease went up. chronic kidney does doesn't have signs and symptoms until it's too late. these were the prescription brands but they are also available over the counter. classically people aren't even checked for kidney problems. >> heartburn is a real thing. 10 to 20% of americans suffer from it. what's the advice? >> well, 7.8% of americans in the last 30 days took this class of drugs. we all take it. much of the heartburn is avoidable by following what you eat. avoid fatty foods, eating too much, alcohol, tobacco. they can all make that valve weaker to allow acid into the esophagus. try av vovoidance and talk to y docker

the study look at patients with a prescription for proton pump inhibitors, some of the most popular ppisr many other brands, and none of the maers of the drugs responded to request for comment. an estimated 15 million americans use the medications regularly. our dr. david is in los angeles, dave, good morning. >> good morning, anthony. >> what's the risks, exactly, that the study found with these drugs? >> what the study showed is continued use of these drugs and studied over five years in the veter veteran's administration, a big data study, if you take them for long periods of time, chronic kidney issues go up. then it's too late. it's worrisome. these are prescription brands and over the counterment over the counter, classically, people are not checked for kidney problem. >> heart burn is a real thing, 10-20% of americans suffer from it. what's the advice? >> 7.8% of americans in 30 days took this class of drugs, so we all take it, but what we know is much of the heart burn is avoidable by following what you eat. avoid the fatty foods. avoid eating too much. alcohol. tobacco. they can

ppi own cpi in the next couple of days. that's bye too the upside. one thing, rates have been much more tame. there's less corporate supply once repatriation is in the rear view mirror. >> what about tomorrow and the next day when the fed chair is on this. is that an opportunity for her to start to set the table for maybe march and is tomorrow a breaking point for the down side of rates and do we think they are actually going to start to rise potentially beginning tomorrow? >> well, i think the fed, of course, always has the ability to move markets. but when you say set the table, the fed at -- considering we're at 420,000 that table would look like that spidery web table in "great expectations." >> seriously, do you think that march becomes a real option and the fed is more than likely or not to do it and she starts set the table for real. >> i don't know if she will set the table but if anybody thinks the fed is, is short sighted. >> you mentioned some of your picks for this market, renee. what are they? >> i'm a big believer in index investing. i

march 10th and then we have the two inflation reports on exactly the two days of the fed meeting, the ppie were the two things that disturbed the market and, you know, put on the table again a march increase which had pretty well been factored out before. i think those three data points will really dictate what the fed is going to do on its march 15th meeting, which is important. >> yeah. you know, meantime, dennis, on a slightly different note but this plays into the larger discussion about the market, you know, jpmorgan was talking about how a lot of this has been retail investors getting invested and doing so in stocks and bonds which helps explain why the price of both are rising. they're talking about how everybody getting into passive funds is increasing, the influence those funds are having on the market. it's even increasing the amount of trading happening on the closing bell. so, you know, that's the kind of shift that's underway. it's not necessarily a great rotation from stocks into bonds, it's actually people getting from cash into assets, period. >> well, few important things

reported its highest annual profit in a decade, helped by a reduction in payment protection insurance, ppiinancial crisis. the uk government's stake in lloyds has now fallen below 5% and it has said it wants to return the bank to full private ownership this year. an extra £200 million in emergency humanitarian aid has been promised by the government to tackle a famine in south sudan and somalia. the cost of essential repairs to school buildings in england has already reached almost seven billion pounds, according to the national audit office. in a report published today, it warns that figure could double by 2020. but ministers have also spent money on creating places in new free schools, some of which are under—subscribed. jon ironmonger reports. for a full summary of the news you can go to our website and get more on everything that we are discussing here, including those income rules forforeign spouses. it's nearly 20 years since the death of diana, princess of wales, but now a new exhibition celebrating her life opens at kensington palace, her home for over 15 years. diana — her fashion

a number ofh in industrial metals after that cpi and ppi data out of china.g a look at the msci all country world index, this is near an all-time high reached in the spring of 2015 even though it is flat today. i am looking at the 14 day relative strength index, suggesting the current rally maybe getting a little overstretched. in the fx space, i talked about the weaker dollar. we saw the aussie strengthening in the asian session, boosted by business confident data and the data out of china, particularly the producer price growth. we are talking about that feeding into the global reflation story. yen.ker dollar, stronger we are seeing a little bit of push and pull because the reflation trade not holding up entirely as you are talking about a weaker dollar and yields ticking up on treasury. one.nal chart, i love this i have been waiting for a good moment to pull it out and what a time as we are looking ahead to u.s. cpi data and yellen testifying. it is about u.s. breakevens breaking down. mark: just want to tell you about tartan motors, the parent company of

if you look at a two-day, you know, yesterday we had ppi, but that wasn't that spike.at spike was at 10:00 eastern on janet yellen. let's look at november 1 st for all the charts. ten minus bunds. i told you this chart tells you the direction of the curve. it started moving up and so did tens you see on the next chart and the dollar index. tens are now up five sessions in a row. as david pointed out the 11th session up for the dollar index. one week of the dollar index clearly shows you it is ramping up. to put it in perspective, we've gone from just under 100 to 101.5 in 11 days, basically a penny and a half in 11 days. one other thing to point out you want to pay attention to the steepness of the curve as well. we are reversing on some of the flatness. carl, jim, david, back to you. >> rick, thank you very much. when we come back, we'll talk all things president trump with ambassador john negroponte. s&p 2336, apple another all-time high. we're back after a break. ♪ ♪ ♪ ♪ whether you're after supreme performance... ...advanced intelligence... ...or breathtaking style