Pounds to the fca, and thats to settle a russian laundering probe. U. S. Stocks suffering their worst day so far this year after Donald Trumps travel ban rattles investors. The president also fires acting attorney general sally yates saying she betrayed the department of justice by refusing to enforce immigration orders. Good morning, everybody. Welcome to the show. Good morning. Another eventful 24 hours in terms of that political direction. European markets this morning a bit higher. Yes, it is worth noting we did, indeed, see some weakness out there. Stocks at sixweek lows heading into the session but well above where we were before the u. S. Election on the 8th of november. Keep that in mind as we look at the markets. Some of the bigger movers out there, youre looking at ocado. Shares leading the way in europe after fullyear revenues hit almost 1. 3 billion pounds. Pretax profits jumping by 21. 8 . This online grocer said it is busier than ever in talks with overseas partners and that they expect to sign multiple deals with multiple partners in the medium term. And we need to talk about h m. Shares in the company are getting a boost after surprising the street with Fourth Quarter numbers, reporting a rise in pretax profit to 840 million, versus the 2 fall forecast by analysts. The swedish fashion retailer set a new growth target to increase local currency turnover by 10 to 15 annually and announced that it plans to open around 430 new stores over the next year. Lets get more analysis on this with tony shirrat. Is this more than a cosmetic change when it comes to increasing the forecast . I think thats both h m and o ocado are the same story, scalability. Today they have changed their longstanding target for growth from a storebased target to a salesbased target. New stores typically dont convert into sales at one to one rates. So they increased their medium term sales growth targets. So its fairly significant. Thats also to account for the rising importance of ecommerce. The underlying issue with the likes of h m is they have falling margins and the returns from existing stores is not enough. How can h m get the profitability up, not just the sales . That is a very, very good question. Over the last seven years, their ebit margin has fallen from 2. 7 of sales to 12. 4 . That is a pretty material change. Some things theyre doing have injected more cost into the business, much more ethical than they were seven, eight years ago. Thats grown the cost base. Theres a big investment phase going on in h m and thats been expensed into the p l, and we look for that to even out so we can see the sales growth coming through to the bottom line. Investors liking what theyre hearing. The stock up 5. 5 , 6 . A real fall from grace over the past two years compared to where the share price was before that. What do you think they need to do to keep this investor momentum going . You know, the longerterm trend has been disappointing. We went from 3. 60 to 2. 50 swedi swedish korona per share. They beat on the Fourth Quarter expectation by 4 , 5 , but they only had a 4 increase in profit in the Fourth Quarter. The first three quarters were down. The full year down 12 . So sort of not out of the woods yet frankly. The rollout, thats pretty extraordinary always. I think back to all the years weve been covering h m, it always seems like theyre announcing were rolling out an additional 450 stores, 500 stores, 300 stores. How long can they continue at that pace . The announcement today, 430 new stores. Yeah. Sorry to be a bit of a mr. Miserable, but they actually opened 427 last year, so its not actually a big increase. You need to keep increasing the amount of stores that youre opening, not keeping it the same. So the presumption is that theres going to be more growth coming from the online than the stores. Thats a reasonable thing to expect. Tony, one issue you always focused on is the importance of currency. You say in your recent note that h m has not benefited from the depreciation of the renminbi. When do you think that will come through . Im glad someone reads my i actually do. I would not like to say at this stage. We move on to ocado what is your target for h m . A target price of 3. 05 korona. So what are your thoughts on ocado . Ocado is a scale story. The issues are that its facing a difficult uk market. Theres been some negotiations with morrisons over time. So it needs new business, new, more profitable business to let people justify the view theyll make in the longterm. How big a chance do you think there is for us actually seeing a material new deal with overseas partners . Youre probably asking the wrong person, but its been going on for two years now. They need to bring something to the table. Tony, thank you very much. All right. Lets talk about givaudan, that company at the bottom of the stoxx 600 after reporting a miss on the top and bottom line. 2016 net profit came in at 644 million swiss francs. Despite this, the swiss fragrance brand kept midterm guidance on hold. Shares down 3. 4 . Not smelling too good, i would say. Excuse the pun. A friend of mine said if you cook fish you should put vanilla sticks out in your home at the same time. Is that true . Yeah. 2016 sales at luxottica rose by almost 1 . The groups total revenue for the year came in roughly in line with analyst estimates at 9. 1 billion euros. Earlier this month luxottica announced plans to merge to establish an eye wear powerhouse with 15 billion euros in joint annual sales. Not a lot of movement on the share price. Well take a small gain of 0. 2 . Email the show. Yesterday we got plenty of controversial emails, thats because we spent a lot of time talking about trump. The address is streetsignseurope cn streetsignseurope cnbc. Com. We appreciate feedback, whether positive or negative. You can also follow us on twitter, and tweet us directly at louisabojesen. Or carolincnbc. Coming up, youre fired. President gives marching orders to his interim attorney general. More on that story after the break. Take one. Directv now. Stream all your entertainment anywhere anytime can we lose the all. Theres no cbs and we dont have a ton of sports. Anywhere, any. Lets lose the anywhere, anytime too. You cant download onthego, theres no dvr, yada yada yada. Stream some stuff somewhere sometimes you totally nailed that buddy. Simple. Dont let directv now limit your entertainment. Only xfinity gives you more to stream to any screen. Good morning. Welcome back. Youre still watching street signs. Shell will be selling a number of assets in the uk north see to chrysaor for 3. 8 billion. Sanofi, nova nordisk and eli lilly are being sued by patients for price fixing for diabetes treatments. The lawsuit claims the drugmakers lifted the price of insulin by 150 in five years. Uninsured patients are particularly vulnerable to the rising prices, according to the plaintiffs. However a sanofi spokesperson said the lawsuit has no merit. Unicredit says it expects to book a net loss of 11. 8 billion euros for 2016. The italian lender said its ct 1 ratio would fall 8 . And more Spring Cleaning coming from Deutsche Bank. The bank agreed to settle claims relating to its part in a russian Money Laundering scheme, they will pay 425 million fine. They were found to have moved money out of russia with a mirror trading scam. Shares up by 1. 7 . I guess any news that removes litigation is good news for Deutsche BankShare Holders now. The french president ial elections pose the greatest existential risk for europe. Thats according to strategists at credit suisse. They said the victory of Francois Fillon would be a positive for the economy, and emanuel macron could also be constructive for growth. Even if Marine Le Pen were to win, her powers would be limited as her party would fail to gain a majority in frances lower house. Now tens of thousands of people continue to rally in cities and at airports across the u. S. Voicing their opposition to President Trumps executive order on immigration. Protesters gathering in cities including new york, washington, boston, also here in london where thousands of uk residents gathered outside 10 downing street, which is where the Prime Minister resides. Some of them chanting shame on may for the Prime Ministers invitation to mr. Trump to visit the uk on an official state visit. Earlier President Trump responded to reports of chaos at airports across the country in a tweet. He blamed the disruption on a delta computer outage. Protesters and the tears of senator schumer, a reference to the new york centers Emotional Press Conference where he choked up while speaking about the executive order. The delta computer issues did not begin until sunday evening. President trump also fired the interim attorney general, sally yates after she said the department of justice would not defend his executive order on immigration in court, effectively defying his directive. In a statement the white house said yates betrayed the department of justice by refusing to enforce a legal order designed to protect the scitizens of the United States. Good morning, everyone. Reporter after she announced she would not defend the president S Immigration order, President Trump fired acting attorney general sally yates. A statement from the White House Press office called yates weak on borders and very weak on illegal immigration. Dana boente, the u. S. Attorney for the Eastern District of virginia has been appointed to replace yates. Yates refused to enforce the president s executive order which bans travelers from seven predominantly countries from entering the u. S. I happen to think this is a terrible mistake. But how i feel about it, or more importantly how a federal judge feels about it, is not the issue. The issue is whether the president can do it. And historically the answer has been yes. The ban ignited protests across the country which continued monday night. Trumps new pick for acting attorney general, dana boente issuing a statement saying he would rescind yates guidance and direct the doj to defend the lawful orders of our president. He will be serving until the senator, jeff sessions, trumps pick for the post is confirmed by the senate. Sessions had been questioning yates before she took over the role of attorney general on whether or not she would be willing to go up against the president if she deemed the president was doing something unlawful and illegal. She said yes at the time. Now shes doing it and sessions is taking over. Reminds me of the nixon episode when he removed an attorney general, not that i remember it personally. President trump said he would announce his choice for a Supreme Court justice tonight at 8 00 p. M. He is considering neil gorsuch, and thomas hardiman. Head to cnbc. Com to see why President Trumps pick is likely to spark another battle in the senate. The bank of japan kept Monetary Policy on hold, but policymakers are more bullish on the economy forecasting stronger growth in the coming years. Following a twoday board meeting, the central bank raised the gdp forecast and said it remains on course to meet its 2 inflation target by 2018. Did a minute pass already . Simon derrick, lets bring trump back into the picture. The bank of japan leaving rates on hold. Indicating we would be looking at stronger growth. Does that mean we switch into yen trade, the safe haven trade, the economy trade from the japanese . As always with dollar yen its about the yield differentials but equally about the issues what those yield differentials are being used for. Listening to mr. Kuroda how many times did he say were not targeting Foreign Exchange rates. Theres more driving dollar yen differentials. You only have to look at whats happened since they brought in yield control back in october, the way they controlled the jdb yields and how dollar yen soared when you start to see u. S. Yields going up. Its interesting this is happening now because we have mr. Abe visiting in the not too distant future, and the last thing japan wants to be is called Something Like a currency manipulator. So far were ten days into office for donald trump. Just under ten days. Hes fulfilled so far or is attempting to fulfill all the pledges that he promised before the election. He also has indicated hesitation with regards to the strong dollar. Is that another thing we should be taking seriously h . And again, should we look at the yen twice about that . We have to look at the dollar over the course of the last 12 months. It is a very consistent thing. We heard President Trump talking to the journal, i think it was in early january. He mentioned strong dollar. Mr. Mnuchin mentioned it. Its been raised by a number of other officials or potential officials that it is at least in the shortterm potentially an issue. Thats the hint. So, clearly its a concern. Your question is if youre concerned about a strong dollar, how do you deal with it . One thing you can do is go directly to the people you think are manipulating those currencies and pressure them to ease up on policy. The thing you can do, and the easiest and most effective thing is take easier Monetary Policy. Monetary policy that lags behind inflation. Thats why i think tomorrows meeting matters. Thats why i think the issue about who comes in to fill those other board member places on the fomc board matters. Lets talk about the fed. Given the gdp growth in the last quarter, that was a bit underwhelming, only 1. 9 . The slowest growth rate in a couple years and a wave of protectionism coming from the trump administration. Does it mean the fed should be hiking three times this year . Isnt that a little bit too far . I think if youre looking at their mandates, purely in terms of the inflationary story, theres a gap between where headline inflation is and where the yield is. So, if you look at it purely from that perspective, what janet yellen is arguing certainly makes sense. The question is how concerned she is and how the other Board Members are concerned about a strong dollar. Remember, they themselves have over the course of the last few years raised Dollar Strength as an issue on a number of occasions, specifically the impact its had on international markets. I think what happens is if you look at what last friday tells us, it maybe does tell us about the economy thats slowing down, maybe some of those inflationary pressures do start to ease. Equally we have to wait to see whats happening with the nonfarm payrolls number. The key is theyre going to get three moves, maybe they have to Start Talking about a march move, so theyre under a lot of pressure to come up with a carefully balanced statement tomorrow. Thats the key. What they say tomorrow will color what we think about the fed and dollar. As a currency investor, where do you put your money now . It seems like the dollar is in a crowded trade that also seems to be petering out and is also of course hit by the protectionist comments by trump. The yen is probably oversold. What do you do . The comment about a strong dollar to me says you have to be cautious about this highly crowded long dollar trade. Ive been looking at the other side, which of the currencies are the most heavily shorted over the last couple of years. Thats the pound . The pound. Okay. Simon, thank you very much for that. Simon derrick from bny melon. The french Canadian Student has been charged with the attack on a mosque in quebec, canada. The 27yearold is the sole suspect in the shooting and faces six counts of first degree murder and five of attempted murder. Kevin tibbles reports on the latest from quebec city. Reporter gunfire erupted amidst evening prayers at the Islamic Cultural Center in quebec city. Some 50 worshippers were inside as police and paramedics rushed to the scene. Six members of the mosque, men ranging in age from 39 to 60, were killed. Eight others injured. Shot by a lone gunman in what police are calling an act of terror. The suspect is alexandre bissonnette, charged with six counts of murder. Tonight police searched his home where his family has lived for decades. Im really shocked by all of this. Reporter canadian Prime Minister, Justin Trudeau who pledged to assist those barred from the United States condemned sundays shooting. Adding canadians will not be broken by this violence. Tonight in spite of the frigid cold streaming through the streets of quebec city for an outdoor vigil as security is stepped up at mosques in canada and the United States. Kevin tibbles, nbc 6, quebec city. We need to take a quick break. Find us on twitter, carolincnbc or louisabojesen. Also live on the World Markets live blog. It runs throughout the european trading day. Much more to come on street signs. Hello. Youre still watching street signs. Im carolin roth. Im louisa bojesen. These are your headlines. Shares in ocado leading the way in europe as the online grocer said it is busier than ever in talks with potential overseas partners. H m shares on course for the best day in three years as retailers earnings beat and it pledges on opening more than 70 new stores. More Spring Cleaning for Deutsche Bank. Its paying 425 million to u. S. Authorities and 163 Million Pounds to the fca, and thats to settle a russian Money Laundering probe. U. S. Stocks suffering their worst day so far this year after Donald Trumps travel ban rattles investors. The president also fires acting attorney general sally yates saying she betraye