The board of for you, if we can. Staggering numbers. 52. Down 1. 28 . The implications is being felt in other asset classes. Lets talk about what is happening. U. S. 10 year, some they 2014 could be painful in 2015 as well. The u. K. Gilts, we will have data out and 9 30 a. M. Its a solid push below and equities taking a knock. Thats on the back of Energy Stocks. And the ftse down by 5 . The 30 day of declines the third day of declines. The number of the eurozone better than expected. Whether that data is enough to move the dial given what crew has done, we will have that story. Ryan chilcote, what exactly is the benchmark we are looking out for . How low can it go . Really, brent, the global benchmark, we saw wti fall below 50 and that is the u. S. Benchmark. When we see brent hit 50, we know we have a real global story and perhaps a oneoff u. S. Story. When is that going to happen . That is anybodys guess. What i cant tell you is in the financial crisis, we saw brent cut touch fortified dollars a barrel in 2008. One thing is clear, the decline in the oil prices is hitting equities and we saw that. The dows 300 point decline and 20 5 was Energy Chevron down 4 . At sundown 3 . It really happened through the date yesterday. Chaperone chevron down 3 . Itll be something for all of the Oil Companies to Pay Attention to. How is affecting the exploration store . You think about this as a game of chicken between the middle east and the United States it doesnt like the u. S. Is losing just yet. They are decreasing their spending, taking risks offline to the tune of, i guess about 290 three and in the last three months of the year. 17 rigs off of the last week. That expectation is another 200 will be taken off in the first three months of the year. Rig wise, we we are where we were nine months ago. Americans are cutting back on the and rigs and spending. Record Oil Production last month in the United States. This is the issue. Shell production is yielding a more despite the fact that some of the less profitable, less productive fields are coming off line than anyone anticipated. They are more effective in getting oil out of the ground. What we have is a slow boil story. What isnt getting explored are completely green fields where they do not know where the prospects are. They are continuing to drilled and find it. The u. S. Hit a record, biggest production in at least 30 years will top russia, postsoviet high. And iraq as well producing more oil than at any point since the 1980s. There is a glut on the market and no signs of it stopping. Thank you for that. The oil stored or almost all of the oil story. The dubai index is down more than 5 and though most in the world. Elliott gotkine joins us with the very latest. Elliott . Francine, how the Oil Companies are being hit and the economies particular in the gulf they derive their revenues from oil and they are taking a big hit. It is evident in the stock market. All of the stock markets in the gulf are down. The worst in the world is dubai. Almost down 6 at one point and now around 5 . They have not had a single day of climbs all year. The plunge in oil price is obviously one reason. Were also seeing a slight aversion to risk given the eurozone. And talking about big lots in oil, there is concern that perhaps some of the declines are a factor of a down a decline in demand. That would have broader ramifications not for only the middle east but the world economy. Elliott, any sense of which is stocks are being hurt . One company taking a big not and met knock and maybe all of the oil flowing into the by is trickling in little bit into dubai is trickling a little bit. The biggest in dubai a big hit with the financial crisis and never covered quite a fair amount since then. A lot of money going in there has long from other gulf economies. And money to spend and perhaps looking to take some of their profits. Dubai, and economy, unlike awful dobby ill dobby abu dh abi, not reliance on oil and gas in terms of production and witnessing across the board a bit of a selloff and the gulf economy to oil money has been hit harder. To why so much. Elliott gotkine on the troubles in the middle east. Thank you so much. I think dubai is good for the oil price and given it is exposed to the rest of the region and thats where a lot of the money comes from. And we will see how it plays off. Lets put all of this into expects if perspective. Good morning to you. Is it a happy new year if youre in the equity markets . That it is, that will be fine opportunity. Aware. [laughter] enough to put things into perspective. We still have an environment where things are pretty liquidity. 2015 will be a year where we have take the fear factors whenever we have the unfolding of what wouldve had the multispeed economy down to phase three of market development, the crisis. Once you have that in mind finding those stocks that you want and targeting and keeping on the structural shift going on, will talk about oil. It is actually a landmark. What does it mean mark some positive and some negative. We have a lot of shifting and politics with what is happening in russia is important china, clearly europe with greece and potentially and france as well with the populist vote rising. A lot of interesting things to find out. Oversimplify and saying if you understand the oil price and can understand where it will go next thats the easiest way to make money . I think you are right. It is important to understand if we have an oil price below 50 or between 60 and 70. Deflation, something we have talked about before, the rise of the dollar, clearly created a deflationary you know, impact around the world. That clearly has had an impact on commodities and oil but if we are below 50 in a sustainable manner, people will think about dividend payments. How Many Companies cannot pay from organic sources . Potentially need to borrow to pay the dividends. When it happens, while interesting buying opportunities. You will have resource rich companies, probably sold off. A manner of really knowing which companies you want to target. Possibly, what have a rebound but what is important to understand if the the nymex where russia and iraq are producing more. At a time where Energy Efficiency it again, something will talked about for years as well as weaker demand with neutral. The secular outlook of being neutral, meaning lower rates need a because growth is lower. All of this combined to tell you that this should go on. Markets will start if markets and believe that your price stated below 50 for sustainable piano period. Will stock is the lower . I think you of opportunity. Because of that next thing we need to talk about, what is the impact on inflation or fear of inflation . You are a time in the First Quarter where the year on year effects for inflation even in the u. S. Could be quite pained. People although it is easy to forecast that, people might be surprised. If i am sitting on cash, do i do it now . Is the moment now or do you think stocks will fall further . It is hard to say. In the First Quarter, you should identify companies and well diversified. You definitely want consumers. The most pitiful show impact as the most beneficial impact is on asia and will meet in cars. Car buying and the consumers are feeling the benefits of this. Some countries, more than others. European and emerge markets or emerging markets stocks but mark globally, u. S. Companies, the consumer in the u. S. If at an advantage because of the Lower Oil Price is very strong there. Like in europe where we have more taxes so it takes more times exporters from europe will continue to do well because it seems clear to me that the pressure on the euro will continue. The euro dollar. If you think of japan, the pressure on the yen and japanese exporters and of course, as you might remember, more positive on china in the last year. What china offers at this point, with its currency being resilient and inward looking growth support and finally, some positive news continuing the anticorruption campaign. But showing some news in terms of small packages which are not scary the markets. All of this means you have on the double basses, nice opportunities. Thank you so much. Stay with us. Back with us. Snap elections in greece. The u. S. In recovery. And the ecb may go for full qe. But we will see what happens later in the month. Experts, a cargo ship on the isle of wight and a way to refloat the vessel according to a number of reports. It was run aground to avoid capsizing. It is Holding Millions of pounds worth of cars and 105 jcbs and one rollsroyce. One, we spoke to the ceo. China is spending 1. 1 trillion for infrastructure. The government approved it. 400 ventures until 2016. And the Australian Dollar rose on the news. The sony ceo made his first Public Comments on the hack attacks began at the Consumer Electronics show in las vegas. He called temperatures criminals. He called the perpetrators criminals. They were unfortunately the victims of the most malicious and victor a vicious attack we have known. I have to say, i am very proud of all of the employees and certainly no partners we worked with as well. Against desk. Again some of the extortion is efforts of the criminals that attack Sony Pictures. Coming up, more from ces and we want you to join the conversation on twitter. What will you buy . Tweet us. When will it be . Five years . 10 years . Never . You never know. Tell us what you think. Welcome back to the pulse. We are back with the chief Investment Officer for global equities. Lets talk about greece. Markets seemed a little bit concerned about it. The greek assets have been suffering. Elsewhere, it has not been in the story. Has it gotten into position and that is what the markets are signaling . For me, good news bad news how markets anticipate. Meaning, is the fear of an exit putting pressure to have expectations of qe be on january 22nd and elections on january 25 and the other thing to think about it even if you are elected it will be moderation once they are in place. It seems like no one is interested clearly not the greeks interest after six years all paying in recession to actually put yourself in this situation where you have a currency no one buys and you are in default. This is not practical. Chris and they could take the view that nothing could be worse. I agree, the situation has been tough. Some of the members, because of the unofficial numbers it is clear it is a difficult situation and do you have what is happening. What we are saying is chance of moderation if the election goes in that direction are actually quite high. Clearly europe is in a different state where it was compared to 2011. I think theres some element of fear but not panic. And i think that is justified. Is it a Political Risk and something we touched on yesterday, is greece goes to an extreme party, theres a very big chance that spain, france, italy would follow suit. That is the fear that people would have. And a country like italy has a higher debt level than greece has when we started talking. It is very serious. At the same time, the desire for europe to continue for the core countries would be possibly tested but it is there. An element of bargaining, a new year and not every body is back. You have fear in the market that is very clear. All of you is thinking about the neutral, how we see the global economy, that it will be moderation even if it is elected. And good news bad news so what would we see in terms of qe before that announced around january 22. That is the important thing. The risk of geopolitics, which you alluded to, is some we over the next 35 years must deal more with. Of course, Equity Investors find it quite difficult for costs because by definition, it tends to be with that in mind, unlike with going back to stocks. I like i. T. Digital defense, digital securities, for me, a longterm aim theme of forces around the world. I think those will do well during that time period because of shifting geopolitics. Thank you so much. Virginie maisonneuve chief Investment Officer. We will take a brief. Take a break. Rising tensions in germany. Well have more on how Angela Merkel deals with that and what comes next. That is later on the pulse. The bad weather across the middle east is causing delays in airports across the region. Turkey has canceled 44 flights. Crocs the mediterranean affected, israel and up into turkey flights across the region. Lets talk about how the stock markets across the middle east have been performing as well. Unrelated to the weather certainly related to oil, the major markets are down. That is what has been happening in saudi. The south, what is happening in dubai, generally index absolutely crushed. The markets over the last two days. Wait until you see the dubai market. A significant low the worstperforming market in the world at one point today. Pretty punchy. Money flows out of the rest of the gcc into the by is the effect. Markets on the slide around the world, asia down. You can follow both of us on twitter. We will see you in just a couple of minutes. We have a lot to get through. A little bit of technology in las vegas. Welcome back. Selling off, pmi data significantly weaker than anticipated. 55. 8 compared to last time around. 55. 5 . Sterling on the back of this. Down by 0. 3 . Treasuries back down. You are seeing sterling continuing to fall on that, the u. K. Economy weaker than expected. And of course, pmi on a thursday. The top headlines. Jpmorgan chase agreed to pay 100 million on a lawsuit and its role of the 40s changing market. It was one of a dozen been sued by Institutional Investors over the pricefixing. Jpmorgan agreed to pay 1 billion for the investigation by regulators in the u. S. , u. K. , and switzerland. Verizon has approached aol about a potential venture. Verizon is primarily interested in aols Advertising Technology which could have a future online video product. Russian Opposition Leader has taken to twitter to declare an end to house arrest. He tweeted he has remote the electronic bracelet used by authorities to track his movements and said he has no plans to travel except for going to work and spending time with his family. He violated the terms of his house arrest last week after attending a protest. Ok, u. S. Carmakers report strong sales making 2014 their best year since 2000 its. Ryan chilcote joins us. Draw a line between this and oil prices. Take a moment to think about and we will come back to you. Can you hear me . A voice in my head was say you are not ready. Lower gas prices mean americans are happier to buy cars and a large car. We saw that yesterday. We got data from december and it was a good december. All other carmakers did better last december than a year before. G. M. In particular, did well. Bucks troublemakers so it play to their strength and people happy to get into the big suvs. They saw a 19 increase in sales. Their yukon suv and it is then. Though sales were up 30 . When i say chrysler, 50 . Really good news further sales a yet, we had a broad a lot yesterday and today were upon us as well. Investors unmoved by the numbers. Jim got about one point g. M. Got about 1. 5 . Rollsroyce had record sale in u. S. The best year in their history. You can say the same by 2013 2012 2011 and 2010. This was their fifth consecutive record year in sales thomas sales are up 12 . They sold over 4000 rollsroyce. That is a car they introduce in 2013 and sales really taking off for it in 2014. You know, they also had a lot of Custom Orders this year personalized expressions of bling. Rollsroyce, the biggest carmaker in the above 200,000 euro space and people in 2014 were quite clearly philip wealthier and were not ashamed to be seen in their wealthier very expensive cars. A good year, goodyear in the United States, their biggest markets and a good year in germany and uae. That wouldve helped things there but not good everywhere. And question marks about the future especially in russia. Have a listen. We are watching russia, what happens in that market it is an important market for us. Early days into early maybe to make a forecast of what happens in this market. It is hard to forecast what will happen in russia. Well Lower Oil Prices are good for the lower end of the car market because it means cheaper prices at the pump, i do not think too many worries customers really care. They are probably getting hit in place like they uae and thats something for rollsroyce to think about as well as a petition from barely hold will have the most expensive suv and dimer with the maybach. Back to you. Thank you, Ryan Chilcote with the latest on oil and rollsroyce. Yeah, lets go to vegas. Yeah cars are a bit player active sts in vegas from the bmw showing off how they are driving into the future. The very latest. We are focused on cars. Is size for Consumer Electronics show a could be car Electronics Show is in the dna. It is called Consumer Electronics show but they could be car Electronics Show it is in the dna. It is not a building. We had a mustang being unveiled by ford. This year the spotlight is on mercedes and daimler, the owner took to the floor and we got that comment up and giving us a view of what his idea of the future is for the mercedes driverless car. They unveiled their new car which is the luxury and less have a look at the vision. The key to achieving this is idle moments. This technology will give everyone inside of the car, opportunity to spend their precious time, sleep, work, all with the latest need for speed edition. Cars will turn into modern homes in the very best sense of the world and will be exclusive cix \\ cocoons on wheels. Impetus will be you can swivel the seats arond. That is the vision. And they are pros at automated driving on the end of the decade. [laughter] kind of like this. Lets talk about sony. We hearing more of the background story about what happened wi