Welcome to todays worldwide exchange. Im kelly evans and these are your headlines from around the world. George osborne is set to make plans to break up banks. Well bring you live coverage of that highly anticipated speech. A Corruption Scandal weigh owes mario rajoys party as he prepares to step down. We should assume that might win this discussion. It will completely break down. And the other side of the story from bumis cofounder. And its extraordinary comment for the chairman of a British Company to make. That seems to be the main thrust of his argument to win this. And its wrong. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. An extraordinary back and forth there on this monday morning. Welcome to todays worldwide exchange. Ross westgate is away but well do our best without him. We have Michael Brown to help us through things. Coming up on the program, well head out to hong kong where china is requiring a reinstruct during of the economy. After that, of course, the super bowl wasnt just one of the on biggest sporting events of the year, it was one of the biggest days of the year for madison avenue. Well take a look at which ads were touchdowns and were ads were fumbles. Mariana rajoy meets Angela Merkel. Plus, Upcoming Elections that Sylvia Berlusconi has called his last Great Electoral and political battle. The power to split up uk banks if they fail to activity. George osborne is expected to give the bank of england the responsibility to make sure banks are involved in these activities. You have to love the extended analogy. Watch the George Osborne speech live here at 10 30 local for those of you here with us in the uk. In the meantime, there are more charges at the top over at barclays. Last night, the banks financial chief and financial chief announced their leaving. Tomorrow, barclays ceo Anthony Jenkins will face questions in parliament over banking standards and next week he will present his long awaited plans for transforming the bank. And a number of stories about rbs also in the weekend press. The sunday times reporting the bank will announce a 500 pound settlement with u. S. And uk regulators later this week. Rbs will cover the bonus pools after a warning from the government that taxpayers should not foot the bill. Rbs is planning to float the 316 branches of santander it has so far failed to sell. According to the papers, an ipo would allow the bank to dispose of that unit cleanly. Lots going on. Were pleased to be joined by Michael Brown. Welcome. Happy monday morning. I know you want to talk about the super bowl. Well, that would be nice given i was up watching it. Im impressed. I should have been up staying up all night. My sister lives in baltimore. There are plenty of bank stories to get to in the meantime. Absolutely. Were going to hear from George Osborne in just a couple on hours time. What does this mean . The idea is, of course, that we should have capital in both parts. But the problem is, there isnt enough capital to go around and, therefore, you dont want to spook the Financial Markets by saying, by the way, yes, you do need to have this. How do we get to where we want to be, i. E. Enough to be able to be separate businesses, without actually undermining the whole market preseptember about the banking stocks. Its incredibly narrow bridge to be walking over. What osbourn is trying to do is satisfy the political aim but actually not completely over the banks at the same time. Will he achieve it . The devil will be in the detail and it wont be in todays speech. It will be in the bill that we get to see. My sense is that the time horizon will be so great so much regulation. Well, no, thats accelerated, hasnt it . Last month, weve seen a number of pieces of regulation pushed out further and further and further. You could argue that Bank Management should not take it on board. They said, no, were going to do this now because once thats done, i can go back to running my own business the way i want to. I still think that pressure is on individual managers. But the regulators and particularly last week backing off. This comes at a time when there are certain types of proposals in the u. S. This is not just a uk issue. It seems around the world, there is no appetite. But practically speaking, what will be the impact of this . I think of two elements. Retailers have pretty much moved to very high margines and this product. Those products are not necessarily totally restricted, but its nothing like what is available in the early part of the season. Youve got high margins, Retail Banking creating a lot of cash flow, but its a very, very low growth business. You cant grow the business so far, your return will be 7 , 8 , 9 yield as an investor. The trick side is, how do you get from where you are to where you should be or where youre being told to be . I think in rbss case, theres a better chance of getting there quicker. Well leave it there. Spanish Prime Minister march anna rajoy is meeting with Angela Merkel today in berlin. This ahead of parliament talks. This comes amid a Corruption Scandal at home that has called widespread calls for his resignation. He came out on saturday and vehemently denied receiving any payments. Have you been following this story . How can i not . What does it mean for the political instability now . The question is, whats the truth . Well see rajoys tax documents come out later this week. There is clearly a problem here. We have one Senior Member of the party and the significant investigation. If rajoy is removed, what is the alternative . Would we go into a general election and would that alter the economic positions that spain finds itself in . Some will argue it would because they dont take it on board, introduce the external controls and if you like wrap up the situation. So theres a bull argument within the bear argument. Where do you fall on that spectrum . I think its going to be business as usual from a political point of view. And do you like your investments here . Yes, i do. At what point do you start to take profit . I think the credit markets are telling you that. I think its beginning to say a run for the spanish bull market which could go further, but its not the same in the last three or four months. Theres a ten year, 5. 31 . Are you sticking with it until it goes below five . Technically, if you hold rates where they are and germany around 2 at 4 , 4. 5 , but thats not the move from 7 that weve seen in the last month. Missed the easy money. Stay tuned. In just under half an hour, well be live with that meeting on merkel and rajoy. Silvia wadhwa will join us for that. First, lets get the latest from asia. Sixuan joins us for that. What are markets doing today . Its a mixed day of asian bourses. The nikkei ended at a 33month high. Finally the yen split is still a priority. Even as dollar yen trades near the 93 level. Panasonic shares jumped at 17 after turning to a quarterly profit in q3. The shanghai composite ended higher by 0. 4 . Official services pmi data confirmed a mild recovery. Coal miners soared on higher demand and a new policy to improve mining efficiency. Liquormakers took another beating after the Public Sector was urged to stop posing boozy banquets in the upcoming lunar new year. Ping an insurance slipped nearly 3 today despite hsbc repeating the okay from beijing to sell its remaining stake. Investors are afraid that hsbc might have sold its given how much market has value since the deal was first announced on december 5th. Elsewhere, technologymakers brought the south korea kosty poundy by about 0. 25 . Meanwhile, Australian Shares ended lower ahead of the rba meeting down by housing data and job advertisement. Indias sensex now trading lower by about 0. 1 . Back to you, kelly. Sixuan, thank you so much for that. Well see more for you in just a bit. Bankia, theyre leading the market up about 6 after we saw last weeks bain allowing the short selling ban go away. Not necessarily putting appreciate pressure on those shares today. Weve been on extended runs for a lot of these indexes. Cac 40 giving up some ground this morning. Ibex 35 down about 0. 3 . The ftse lower down, as well. The bottom space is where weve been focusing lately and even today, the tenyear in spain, 5. 3 . Well see what happens with the latest round of political instability. Italy, though, 4. 4 just about. So it is holding below the 4. 5 levels. For ex, this is the one to focus on. Look at this. 93, a 2 1 2 year high for the dollar against the yen. Another 0. this morning. But, again, that 93 level weve just been crossing so this is the highlight of trade this morning. Talk about the impact thats having on the nikkei. Quick look at commodities, over in the u. S. , gas is trading at its highest price in february ever. The rally in stocks has lifted oil prices. There are some talking about nymex here which is concernedly just under 100 going to 105. Thats going to put a lot of pressure on the u. S. Consume perpendicular copper, giving about 0. 3 today. Now well take a quick break. When we come back, chinas biggest Search Engine reports earnings today in the fierce competition. Well discuss the battle for search in china when we come back. [singing] hoveround takes me where i wanna go. Where will it send me. 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Bumis cofounder is being called to return his shares. It comes as the battle to control bumi is set to play out during an Extraordinary Shareholder Meeting on february 21st. In an interview earlier, bumis chairman stepped up calls for shareholders to vote against the rothschild proposal. We should assume if Nat Rothschild comes to bumi, the separation will completely break down and as a result, buckley will compete on the shoulders in what i can tell was just months and months if not years and years of litigation among the various parties. And this is just a destruction of blc. You have a very Whiting Party to try to separate. I believe if this board wins, the relationship with buckley will be such that we can manage the assets. Now, rothschild, though, joined cnbc shortly after those comments to defend his position. Its an extraordinary comment for a chairman of a British Public company to make. That seems to be his main the main thrust of his argument to win this egm. And its wrong. Because, first of all, there is a Takeover Panel ruling. That says that the counter party, of which he is a paid up member has to sell down to 29. 9 of the economics of the business. That is the first point. The second point is that the bacrie family, put bluntly, owe 550 million against the pl shares, therefore, they are not in a position to pursue a scorch surge strategy against minority shareholders. And the third point is, why should the backrie family be interested in what happens after they leave . If there is no side deal between samitan and the backrie family, why is the backrie family so interested in what happens after their exit from this company . Extraordinary back and forth there. And on camera. Unheard of. What do you think about this as an investor . Look, these are some of the situations as an investor you cant get involved in. As an outsider looking in, its so complex, its so detailed. And how on earth can you really get full information in situations like this . So not just a situation like this would i avoid, but situations where politicians are getting involved in companies and redefining companies because i cant predict what they will do. Do you think they generally destroy value for shareholders, these kinds of situations . I think you have to look at each one individually. And im not an m a man. Im sure the m a guys are all over it. This is exactly their meat and drink. They live for it. But im just a poor old fundamentalist. And theres a lot of shareholders caught in the middle of this. We want to ask you what you think about the back examine forth. Do you jump in on one side or the other, steer clear altogether . You know how to reach us, cnbc. Com or tweet us, cnbcwex. Julius baers profits came in better than expected, but shares are trading lower, down by about 2. 4 . Doesnt sound like investors or shareholders are all that thrilled with julius baer this morning, though. Certainly not. Julius baer is the biggest loser on the smi at this point. It could be a bit of profit taking because this share or this stock like all the other stocks have had a really good run in the month of january. But you mentioned that. 7. Billion swiss francs, that still translates into 577 annualized growth. Kelly, this is still at the upper end of julius baer target, 4 to 6 growth. This is not too worried. The fact that growth margins were under pressure in 2020 12. They came in at 96 basis points. When i talked to the ceo this morning, he said, look, activities has been picking up in terms of equityivety, but whether that growth margin can exceed 100 basis points, that remain toes be seen. Timely, the ceo said that the integration of Merrill LynchsWealth Management business internationally, that was well on track and this year it will have a neutral to slightly negative impact on group results. Keep in mind, ubs earnings are out tomorrow and Credit Suisse reports Fourth Quarter earnings on wednesday. Sounds like it will be a busy week for you. In other news, Merrill Lynch says its expecting a revenue range of 1. 7 billion to 2 billion in revenue and that would leave sales flat at best in the second quarter. Htc now says it will concentrate more on emerging markets. Now, chinas largest search end baidu reports Fourth Quarter results today. Analysts said expect a jump to around 1 billion. The nasdaq listed company is facing new competition from upsaturday kihu, i think thats right, to capture more eyeballs and ad revenue. Baidu expects costs to rise as it spends on the cloud and data centers. Shares up about 0. 3 on friday. Jin yu, thanks for joining us. Lets start by talking about baidu earnings. What do you expect from the company . Do you like, generally speaking, its prospects here . I think heading into tomorrows print, i think expectations are pretty low. Obviously, baidu has been doing well this year. However, given the fact that the Fourth Quarter numbers, the guidance is a bit of a kitchen sink number where we think in q1, the guidance should be better than expectations. We think that the First Quarter guidance, when they report tomorrow, should be better than expectations. So we would be owners into the print tomorrow. Can you talk about how this transition from a peace to a mobile world is affecting baidu . Yeah. You know what . We think that mobile is an opportunity rather than a threat because if you look at kind of google, who is three or four, five years ahead of baidu in terms of mobile platform and mobile search, we noticed that google, for example, has seen click come down, but youre seeing more click because a lot of the mobile has been instrumental. Baidu frankly does not have a platform like android. But in the long run, we see mobile as an opportunity rather than a threat. So its interesting you say baidu is three to five years ahead of google. Google has done quite well. Are there opportunities for investors to look overseas to tap into some of that continued growth . Actually, i meant to say google is three to five years ahead of baidu in terms of mobile. But its very, very hard for new entrants to make significant market share in markets where you have an incumbent with 50 , 60 of market share. And for badu to gain market share in other countries where google is dominant, its going to be very difficult. New entrants has not gained a significant market share. Weve seen their shares up. Im just looking here at a price chart over the last couple of years. Theyve outperformed google, outperformed the nasdaq. So what do you think baidu needs to say here to investors to convince them that there is potential . Well, you know, i mean, baidus biggest risk is not necessarily the transition to mobile. Its not necessarily competition from chihu because chihu doesnt generate a lot of revenues on the search side. Market shares in terms of page view is less than 10 . The biggest risk for baidu is frankly baidu. How are you going to grow . The only way you grow is if the pie gets bigger. But the pie, obviously, because of the base effect is growing at a rate. Baidu needs to invest in peripheral products, including mail, video, mobile and so forth. And i think baidu gets there, but it may take some time for a lot of these investments to be fruitful. I think it will remain in the nearly term range bound trade. But certainly as these guys continue to press forward in terms of mobile, now they consolidat consolidated. We think theres more up side in the near term, in the future. Perfect. Well leave it there. Jin yoon, appreciate your time. Those baidu results will