How will the plunging Oil Price Effect statoils earnings . Plus the first interview of the day with the chief executive. Social climbers. Twitter and linked in shares soar after beating estimates. Welcome to countdown, i am mark arden. Barton. I am manus cranny. The u. S. Nonfarm payroll figures. We infer those. In the meantime, lets give you the numbers for stat oil. They are breaking across the terminal. He will be made with me a little later. Net income for the fourth quarter. Comes in at 9 billion kroner. The key is the dividend will be flat for the first three quarters of the year. The dividend remains for the first three quarters, no change. Capital expenditure, the other key issue. The trend is the same at statoil. A Capital Expenditure program reduced. 218 billion this year. The Cost Reduction program they will lift. To 1. 7 billion. Lift that to 1. 7 billion. They will provide total cash improvements of around 5 billion. The dividend remains intact for the next three quarters. Capital expenditure has been reduced by 2 billion this year. Those are the banner headlines. We will get into that conversation with the ceo. He is in the building. It will be a first on bloomberg. It is his third day in the seat as ceo. French president and german chancellor merkel heading to russia to press for a ceasefire. Officials are skeptical a quick resolution is possible as more troops and firepower from both sides pour into the conflict. The ukrainian economy getting pummeled as a result. The country devalued its currency in efforts to stave off the fault. Ryan chilcote is on the ground in moscow. What is on merkels agenda today . Both Francois Hollande and Angela Merkel arrived later today. They will be here for talks with president putin at 5 00 p. M. To read that is there 5 00 p. M. That is after their trip to visit the ukrainian president. Theyre calling this a lastditch effort before an escalation in the crisis. There is a proposal that would maintain the territorial integrity of ukraine while bringing peace to the east of the country. There is deep skepticism. Also in kiev was secretary of state john kerry who said, i have my doubts is going to work. Have a listen. As i have said there have been a number of off ramps for russia to take over the course of the past months. Unfortunately, they have been left in the rearview mirror. Just in case you had any doubt how ruinous this has been for ukraine more than 5000 people have been killed in the conflict. Hundreds of thousands have been displaced. Ukraines currency has lost half of its value in the last week. That is because the central bank has decided to let it go in an effort to win 50 million in Financial Assistance from the imf and eu. That is on top of it losing value before that over the course of 2014. Give us a sense of the consequences if the efforts fail today. Got a little bit of problems technically on this and. What is at stake here is extraordinary. We have on one hand the u. S. Threatening to harm ukraine. Arm ukraine. President obama is set to make a decision in the coming days. The incoming nominee to be the next secretary of defense has said he is inclined to support such a move despite the fact that president obama is saying he has concerns and in no final decision has been made. You have the european union, the informal summit of leaders. That starts third in a thursday. On the table, possibly more sanctions. The greeks watered down the language. They removed the words restrictive measures. That is code in the eu for more sanctions. That does not mean they couldnt slap more sanctions on russia. Ryan chilcote in moscow. The u. S. Is coming off the best annual jobs growth in 15 years. We got the data for january. A survey estimates that the economy added in the region of 230,000 jobs. Unemployment rate holding at 5. 6 . To discuss this, the u. K. Managing director at charles schwab. A big day with markets. We sit with bated breath in terms of how many jobs the u. S. Will produce. We do know and nine out of the past 10 years, the initial number is lower than the estimate. It is a tough month to make the call on. Yes, it is. As you pointed out, it is indisputable that the u. S. Economy has been creating jobs. Wage growth has not started to kick in. We saw 1. 7 wage growth. The expectation is 2 this year. What the fed is looking for is 34 . To feel comfortable. While jobs are being created the issues are that the unemployment longterm unemployed are not being taken up. Can the fed raise rates with wage growth so low . In todays report, they raised 0. 3 . Can they raise rates with wage growth static . The consensus has been pushed out further and further. It is interesting what happened with the currency. A 10 increase in the strength of the dollar. It is normally the equivalent of 75 basis points for Interest Rates. The currency mightve taken some of the options to do that out of their hands. You have said you can expect the possibility of a decent sized stock market correction. I like a guest that stands out from the crowd. Why . We have an army of analysts. We have been 3. 5 years without a correction. On average, you get one every 18 months. There are number of factors external to the u. S. Valuations are rather rich. You wonder how much more with deans earnings can do to keep the market expanding. External factors, oil, currency greece. One of these things could push the market into a correction. We had a pullback that was almost a correction. We are long overdue want to read other factors at play. Will is one of the factors. Oil is one of the factors. A fall in the price of oil could occur. We have been saying all along, the u. S. Economy is made up 60 is dependent on the consumer. The Oil Price Falling is a net positive to the economy because the consumer. The money the consumer has been saving, some of it has paid back debts. Savings rates have gone up. The concern is what that does to the unemployment number. On a net basis, the oil is a net positive. In europe would you still be as bullish with qe coming into play . And the euro falling . What will drive your perspective on europe . By ua should are rich in the u. S. Even more so in europe valuations are rich in the u. S. Even more so in europe. Spain was one of the standouts. That is one of the only two countries that dealt with structural reform in the labor market. I would like to see other countries do the same. The greece situation has proven immensely volatile. On monday, we had the Stock Exchange rise 4 . Tuesday, falling 3 . Are they going to have their tails between their legs . There is a big speech do sunday. We have we will get a that are sent then. Get a better sense than. Since then. It is all political posturing. From an economic perspective, europe can deal with greece leaving the euro. But it is the president it sets for spain and italy and other countries like that. Spain is a big country as his italy as is italy. You can find out more on the story and a complete guide to the u. S. Jobs. Go to bloomberg. Com. Lets look at some of the other stories we are following to read the australian Prime Minister saying he will oppose a motion seeking a vote on his leadership. Comes after a party member sent an email saying they must address concerns about him. The ballot will go ahead. If half of them back the motion a decision to bestow a knighthood on prince philip. We are not the labour party. We are not the labour party. We are not going to repeat the chaos on instability and instability of the labor years. Australia has lowered their growth and inflation forecast and predicted inflation will rise. It comes following a collapse in the price of iron or, which generates one out of every five austrian dollars of export income. Twitter forecast the number of users will pick up. The company says revenue increased 97 , with a net loss narrowing to it is projected adding between 1360,000,000 users in the first quarter. And faster than the growth in the prior. Revenue projections sparked concerns among investors. Shares fell 15 . Executives announced a profit range for the Current Quarter that trailed estimates. Firstquarter estimates are expected to fall 46 from the fourth quarter. Abandoning to the euro would be unthinkable. They said there is no limit to how Balance Sheets can be. Adding, it would go on for as your with forever with efforts to defend the euro p eg. If anybody starts having doubts about the paid, we will have an issue about the peg, we will have an issue. We will keep to the peg. Do whatever it takes. We can go on forever. There is a report of fourthquarter profit over a year earlier. The largest French Network equipment maker boosted margins. And stay with countdown, because we will be speaking to the cfo of a patel lucent alcatel lucent. Tell us what you think about the show. What many call the biggest piece of Economic Data in the world. The u. S. Jobs report, also known as nonfarm payroll. Just a duo. Manus cranny and mark b arton. Coming up next, the statoil ceo. We brought you the earnings of statoil. They reported a Net Operating Income at 109. 5 norwegian krone. We are joined by the chief executive, eldar saetre. I think it is day three for you in the job. This is a tough set of results to deliver. This has been a tough quarter. Why . Apart from the obvious . The obvious, which explains the Net Operating Income. We have seen the drop of oil and gas prices of 10 . That is having a Significant Impact on our company. Summary said we were going to have a conversation. The alpha and the omega of the oil industrys Capital Expenditure, which you have cut right to billion dollars. The second piece the dividend. You are sticking with it for the next three quarters. You are scrapping a policy to raise the dividend. Why are you dropping the policy and can we be sure that dividend is secure for the best the year . We are not scrapping the policy. We are highly committed to the policy. We remain a flat dividends. That demonstrates we are highly committed. I think it is a very competitive dividend. The flat dividend is reflecting the current market environment. I appreciate that. But there comes a point in the oil market where usa ceo have to be brave and say, i have got to cut this dividend if im going to protect the longevity of this company . Where is the bandwidth for oil that puts pressure on that dividend . Not one ceo has dared to give an answer. We are highly committed. We are also demonstrating a financial framework, flex ability within that framework. Which makes it possible for us to safeguard the dividend. We are trying to find a balance in oil. I am reading 5060 dollars. Where would you project im not asking you to guess the price of oil pretty see oil trending . In the short term, i am highly uncertain as to what kind of price environment we will see. We will see volatility. We could see a low price environment for quite some time. Fundamentally, we are in a part of the cycle. We will see a rebound at some point. Whether there are structural changes for the longer term it is too soon to say. We dont see any changes in the fundamental leaf in our commodities in the fundamental belief in our commodities. What concerns you in terms of the supply side of the picture . Opec is still there. We have to look at an annual decline of 56 . U. S. Production will be absorbed into the declined. We will have a situation where it balancing supply and demand and the cost of the supplies will define the oil price going forward. Which brings me to Capital Expenditure. It was originally 20 billion. It is down to 18 billion. Will that be domestic . Norwegian . Or international . Where will we feel that squeeze . We are investing in a highquality portfolio. We have sanctioned a lot of projects that are ongoing. We have a project ahead of us which hopefully will be stationed this year. A short timeframe. This will provide us with profitable growth going forward. We are using a lot of the flexibility we have any flexible part of our portfolio, including a significant reduction in the u. S. Onshore business. Reduction in u. S. Onshore. What about was ill, angola u. K. Brazil, and glaucoma the u. K. . On short will continue and we will add a new worldclass project. That represents an increase of 10 from last year. Quite significant flexibility we have in the portfolio. What is the risk here . There is a figure about your offshore workers being paid 150,000one 70,000. Do you need to negotiate the onshore offshore . Surely that has got to give. In such a Turbulent Oil environment, can you are continue to enjoy that kind of privilege . That is the best in the world. My main focus is the work on the underlying improvement can read the kind of improvement we can sustain in terms of cost efficiency for a longerterm. How we Work Together with our suppliers that is my main progress. Is to billion dollars the nadir . 2 billion the nadir . We could take it down in the u. S. To even lower levels. Looking at having a Sustainable Business and the outlooks ahead of us. This is the best judgment. Flex ability within that part of the business. You said yourself you initially were not understood in becoming a fulltime ceo. What changed . Human nature. That is good great . I changed my mind. I had four months of experience and it change the way i looked at it. Im glad. We wish you well in your tenure. That is eldar saetre ceo of statoil. Check in on the Foreign Exchange markets. It is job is they. Jobs day. These numbers should come in around 230,000. The biggest miss was in 2011. Must night, the federal government or fed governor of philadelphia said can indication too long and confusing. There was no agreement about dropping the word patient. Keep an eye on the dollar. Aussie dollar. The market is not remotely bothered by the challenge to tony abbotts leadership. The aussie dollar has had the biggest weekly gain in almost a month. The rba produced the growth forecast 1. 75. They kept the inflation target. If they had wanted to say they are more dovish, they would have dropped their inflation guidance. Squeeze the neck of the turkey. Morgan stanley said, you have rates at 1. 75 percent. There is the euro dollar. They allowed the Greek Central Bank to attribute 59 Million Euros worth of liquidity. Did they have the right to cut off the funding . The top stories on bloomberg at this hour. Angela merkel and Francois Hollande will head to russia to press president putin for a ceasefire. John kerry says america is working to change russias behavior. Tony abbott the yesterday and Prime Minister, says he will oppose a measure by liberal party mps seeking a vote on his leadership. It comes after an email saying they must address concerns about him. The ballot will go ahead. If more than half of the 102 liberal mps back the motion. A decision to bestow a knighthood on prince philip. Greeks have held a rare progovernment rally in athens. This came as a person familiar with the ecb said it will allow almost 60 billion euros in emergency funding. Prime minister alexis is sitting out going to set out the most detailed plan yet. What exactly was he not able to come to terms with . And they cant even come to an agreement on what the terms are or the timeframe. They are arguing about so much. He wants to keep greece in the bailout program. They want to have a discussion about a temporary bridge loan to get through to may. What he has seen in terms of new moves from the greek government he is not impressed. We didnt even agree to disagree from where i am it standing. We agreed to interinto deliberations as partners with a joint orientation to a european solution for european problems. We did not even agree to disagree. That was in response to a statement where they said, we did agree to disagree. He said he wanted to say greece stay in the program. He is concerned about their most. The rhetoric coming out of athens. He was back in athens, greeted by protests. They were progovernment protests. This gives you a sense of the tension the push and pull, that the new greek government is going to get. They are not getting love from german officials. They are facing pressure to stick with the antia stare antiausterity message. How will the banks fund themselves . How much spending do they have . This is the latest out of the ecb. They are going to approve 50 billion euros for emergency liquidity assistance. On top of that another 9. 5. That get you close to 60 billion euros. This is a rotating, so it is not like they have to refinance. It does seem there is enough space as long as the banks and the Greek Central Bank is off the hook. They are responsible and assume liability. They have had some money cut off. The Interest Rate is 1. 55 . The old window,. 05 . Hans nichols. It is friday. Some of you might be considering a night out at the opera. Our next guest runs one of the grandest and greatest opera houses in the world. We are joined by that man who runs britains leading company the Royal Opera House. Great to have you with us. It has been a long time since i have been in your hallowed institution. I have been to a variety of houses. It is a very grand event to go to the opera. How you run a business like this . It is a mixture of philanthropy and government in ticket sales. Talk to us about the business of the Royal Opera House. We are a interprize that relies on a huge range of sources. Philanthropy. Ticket sales. Also, commercial partnerships. Touring fees. Coproduction arrangements. That is the crucial thing about our enterprise. It is a mixed economy with many lakes to the table. You were hurtling towards bankruptcy 18 years ago. Things have looked up since then. How is the business doing . Not bad but it is a high wire act in any form of theater. Lyric theater in particular. We have achieved a small surplus every year since 1999. We are about to publish our annual report for last year. We have achieved a small surplus. That is a tough achievement and read it requires a lot of focus. In america, here in america, europe is a little different. How hard is it to