Hello. Welcome to the final Worldwide Exchange of the week. Im ross westgate. And im kelly evans. These are your headlines from around the world. Eu leaders are nearing a historical deal in brussels which could see the regions spending reduced for the first time. Chinese trade going gang bust ner january while inflationary pressures ease off thanks in part to the Lunar New Year effect. This company must not disappear. Thats the french government. It says it may invest in peugeot. And the yen says the currency has weakened too much. Welcome to the final program of the week. Im pleased weve got to this day. Weve had a lot of time together this week. I have. And thats not why im pleased we got to this day. Yeah, yeah. Strong numbers out of china. Thats right. We saw a big improvement there. But i have to say frankly, most peoples attention whether its here or on the other side of the pond is the snowstorm. It seems like winds, 50 miles per hour. Blizzard conditions in the u. S. We know when theres a storm like that headed for the biggest media market frankly in the world, its probably all youre going to hear about for a while. That doesnt mean there arent other things, too the. Thats true, in other parts of the world. China is ushering in the year of the snake. Im not sure what that means, but well talk about it. Should investors brace for a slippery return . I have to say, previous years of the snakes havent been that great since the big historical events happen. Maybe we should call it year of the strong. Peugeot reveals massive writedowns as reports suggest the company may nationalize. Well have details live tr paris at 10 10 cet. Sxwt latest on the blizzard threatening to bring chaos to the east coast. Well have the latest from atlanta. And are investments as pretty as a picture or a still life . Ross, theres been a couple of big auctions here lately and its always a good gauge of how well people are doing, how hard assets, real prices are doing and i love to see where the demand is coming from. The west, emerging markets. And its online. What do you mean online . David hotney, his list of collection was ipad up. It was basically digital up. Well, you know, there was a series, he did them on his ipad. They were beautiful. It was like jose yeah. You can take it with you, i suppose, is the point. So eu leaders are nearing a deal on longterm spending. Julia is with us in brussels or she will be with us in a few moments time. What is key about this is well, well wait for julia. Its being portrayed as a victory for David Cameron. Right. Because cameron wanted to at least freeze the eu budget. Whats interesting, though, if this does happen, what it suggests for britains contribution, will it be going up . There are a lot of different ways in which this could play out. Infrastructure, research and development, those kinds of things. While we wait for julia, lets bring in marshall alexandervich. Marshall, thanks for joining us. How much does it matter what happens with the eu budget . For governments, its easier for them to go back to the lecture and say youre dealing with austerity, dont worry, weve cut the budget. Well, i think its a political move more than anything else. The sort of cuts were talking about are purely symbolic. The eu budgets, 1 more, 1 less. I think what does matter is that they take home a victory from brussels saying we have austerity here. It gets them a few points in the uk prep. But beyond that, im not quite sure how much impact it will have on the european economy. Okay. Stay there. Julia is ready, as well. Julia, is this a victory for the british Prime Minister . Well, its interesting, isnt it . If we get an eu budget of 960 billion euros, then yes, its a longterm cut. Arguably, we can walk away and say we got what we asked for. The question is what happens with the eu contributions . Do we still walk away with our rebates, too . We are starting to see information filtering through now. The italians on a Growth Income national basis, theyre the highest contributors. Theyre probably happy with the latest contribution. The dutch are set to lose a third of their rebate. So the question is, in this tit for tat world that we have here in brussels, what would appease them . They have been arguing for cuts to the administration. That is one of the suggests that well see, big cuts for that, too. 3,000 eu officials earned more than the dutch Prime Minister. So the question is, in this negotiating process, who comes out best . And, you know, all this right now is speculation. But i have to say, underlying all this speculation is an optimism right now that were still here and we are actually going to get a deal. So we wait and see. Guys, back to you. Julia, just curious if you can talk to us a little bit about what youre seeing, the power broker behind the scenes. The price implications from the budget might not be all that great. But what does matter is the relationship between, say, hollande and some of the Southern States and the northern core that is pushing for more austerity. What can you tell us about this, especially in light of the fact these meetings started so late way through the night and are still carrying on right now . Absolutely. It was delayed last night because there were bilateral meetings going on and actually they stopped around 1 30 this morning and the french, the uk and the germans went into a separate meeting. Yes, its important. But these countries are the biggest contributors. If we cant get a deal among these three, how on earth are we going to get all 27 to dwrae. It is who gets what and ultimately everybody wants to walk away from here flying their individual cup aes flag and say, yes, can he wam out with a deal. One of the big things from the polish Prime Minister is that perhaps the agriculture spending would be protected so in particular thats one of the key things im going to be looking out for later today if we eventually come to an agreement, how these interactions play out. Now back to you. Great from julia there from brussels. Well let her get back to the hallways, shd say. The euro is trading near twoweek lows against the dollar after mario draghi said hell be taking the Exchange Rate into effect for its currency decisions. The ecb will, quote, alter its Risk Assessment as far as price stability is concerned. Marchell is still with us. Draghi, did he succeed in talk up the eurozone while talking down the euro . Im not sure he did. He has to frame his decision in terms of the inflation mandate. Obviously, they have a new set of projections coming out in march. At that point, mr. Draghi has to put forward numbers which are credible and consistent with ecb policy. At the moment, theyre forecasting inflation at 1. 4 . If the euro continues to climb, at that point, they have to end up revising down the Inflation Expectations for the year. Why are you not cutting the refi rate . Why are you not thinking about a negative deposit rate . Dragdy has a difficult balancing act. But he framed the discussion in terms of, you know, lets wait until next month. Lets look at the new stock projections and to from there. Hes putting off any serious decision until next month. Fiscal policy is on the one side being agreed and brokered in brussels and Monetary Policy on the other side coming out of frankfurt is pretty clear still. All that matters are those three words in july. Whatever it takes here. Its still a Monetary Policy driven world and it seems as though its frankly become more of a side show between whats happening with the leaders between these countries yesterday and today. Yeah. I think the eu is not a huge event. Its an interesting story, but its not something thats going to influence draghi. I think there is a disconnect between Financial Markets and the real economy and i think thats been pretty clear over the last six months. Ever since draghi said those three words, Financial Markets with their sovereign spreads or whether its equity markets, its been one way risk on. The euro area economy remains in recession and there are not really any clear signs of an imminent improvement. Draghi, when asked about whether do you expect your area to recover were he was vague about giving that answer. In previously months, he said youll see a recovery in the second half of the year. When asked yesterday, he said youll see it at some point. I company give you a time. It was meant as a skroek, but draghi i sense is et going more pessimistic on the outlook for the economy. Theres plenty of room for them to do so. They can cut the refi rate. Marcello, thanks for joining us this morning. Thank you. I just got some comments from fitch saying the spanish reform is mixed for the big utility, talking about essentially the reform of spanish regulation last week. What its like to have a mixed impact on the bigger utilities. Youll have pretty poor industrial production, again, spain producing its 8el. 5 loss in december less, sorry, in december than it did a year ago which is worse than the weak november data. So the fundamentals are still deteriorating in spain. A slightly different story in china where trade data showed the mainlands economy rebounding. Both exports and imports up 20 from a year earlier topping expectations and pushing the surplus to nearly 29 billion. China has released its Economic Data for the first two months in march to help to try and iron out nv any distortion. Chinese Lunar New Year holiday, shoppers over here theres major celebrations over on the west end, i understand. Ill have to go and catch that. Hoping there would be a lot of shoppers from china flying in. When people wonder why arent sales weaker, its because of the demand from china and other ininvestors. Investors in european goods. China cpi hesed off a sevenmonth high in december to a 2 gain on the year. Prices are likely to pick up again in february because of rising food costs around, yes, the Lunar New Year holiday. Also, prices down 1. 6 but they are set to rise again with warmer weather. Well have more on what investors can expect from china in the coming year of the snake. Also, china has been less vocal about the rise on the yen from than other countries. But beijing is taking action of its own to head off unwanted pressure to appreciate. Find out more about china quietly joining the currency wars on cnbc. Com. And in australia, a cocktail of slowing mining investments, Government Spending cuts and the high aussie dollar has been crimping the economy a bit. Chi slower growth. Theyre leaving the door open for more rate cuts if they are needed. The french budget minister has hinted at a possible stake in peugeot. It will write down assets by 4. 1 billion euros. Stephane joins us from paris with the very latest. I can tell you how this is going to go. The french are nationalizing something again. Is this really the best move for this ailing car measure . This will be the last resort option. This is clear what the budget minister said this morning. He indicated that the government would buy a stage in peugeot citron when the carmaker would launch a capital hike. This could be an option since the carmaker announced later that it was going to write down the value of its on automotive and financial aspects in europe. Its going to take a charge of the last year. Its a massive amount. Its about twice the market value of peugeot citron. In a statement, peugeot saysite purely an accounting adjustment which has nothing to do with its operations. The chairman will not impact the cash position, the solvency and the liquidity of the company and it doesnt change the guidance. Peugeot citron still expected that level to be at the 3 billion euros at the end of the year. And the carmaker is confident that the announcement will not change its Credit Ratings with the main credit agencies. In a research known to the list of bnp paribas, the writedown is reflecting that peugeot citron is not expecting an improvement of the car sector in europe. Basically, the analysts believe that peugeot has revised the forecast for the Market Industry not only for this year, but over to the next one. And ross makes the point, its not just france where people have nationalized automakers in the last couple of years. Ross. No. I think you will find the u. S. Government might have been heavily involved in that process post financial crisis. So people in glass houses, kelly. Right. Here we go. Were just over an hour and 15 minutes into trade. European equities. Weighted to the upside, 8 to 2 advancers currently outpacing decliners to the session high. Lets recap where asian markets have closed. The nikkei, down 1. 8 and weve snapped the longest winning streak in 54 years. The nikkei snapping a 12week winning streak. Down today. The yen has been weaker, as well. Maybe some feeling that the japanese government will have problems appointing a govern who will stimulate the economy the way they like. Bombay is fairly flat. The hang seng and shanghai making some mild gains this morning. European stocks, meanwhile, the ftse down about 1 yesterday. Currently up 0. 6 . The ibex up 0. 8 , as well. The ftse sharp outperformer this year. The dax fairly flat. Up 0. 5 . Dollar yen, 92. 82. Aussie dollar, still on this 1. 03 mark. Sterling dollar, just above 1. 57. So weve moved away from the 5 1 2 month lows. Quick look at where we are pt wond market in italy. Italy, 4. 55. Tenyear spapish yields, 5. 38 . Take a look at nymex. Brent has been tracking around the 119 level. At the moment, 117. 65. There is a moment when Oil Prices Start acting like a bit of a break on the economy. The eu leaders, as weve been saying, have been burning the midnight oil to make compromises on the budget. What will the eu look like in the future . Find out what the president of the bundestag told me late last night. Great, everybody made it. We all work remotely so this is a big deal, our first full Team Gathering i wanted to call on a few people. Ashley, ashley marshall. Here. Since were often all on the move, ashley suggested we use fedex office to hold packages for us. Great job. [ applause ] thank you. And on a protocol note, id like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh im sorry guys. Ah sometimes the caps lock gets stuck on my keyboard. Hey do you wanna get a drink later . [ male announcer ] hold packages at any fedex office location. The eu summit is ongoing in bristles. What will the eurozone look like in a decade or so . I sat down with the president of the bundestag and asked him how he sees it evolving in the years to come. We need more political integration in order to avoid turbulences due to the structure of both fields. I understand that nobody objects to the economic integration we have, but there is some reluctant to tell the political consequences. This is a serious point which we have to debate. I think its unavoidable to debate in this context that even if you prefer an efficient single market, you have to define the rules within this single market. Lets talk a little about the about sovereign. But this, there was the assumption that the Eurozone Bank was just that. Post the crisis, we came to understand there is no such thing. Are we ever going to get to a stage where we recreate shared liability for the Banking System throughout the eurozone . The political question is whether countries like germany, other countries not being directly affected, but probably indirectly affected are better off if they insist on this legal construction or if they support without such an obligation. And this is a complicated process to some extent a frustrating process. By the way, for both sides. Its neither an enthusiastic met for for germans nor for greeks. But it seems to be rather successful procedure. Britain, of course, is now germanys biggest trade partner within the eu. So when you hear threats like, we need to have repat reezation, how does that make people feel . How does that make you feel in germany . We very much like to have britain being a member state of the european union, but this cannot mean that we would accept any circumstances in addition to keep the Member States being a member of this union. And our understanding of the european process of the European Community is more than just creating a single market. It does make sense to open a serious debate on the status quo of the union and the future prosecute speculative. What this community should go on and under which the condition. It is now up to the British Government to explain what this could and should mean in concrete terms. My expectation is that nearly nobody would refuse a serious debate, but i expect as though some other Member States might also have proposals for readjust ing present structures or agreements. He did spend quite a bit of time speaking to conservatives mps from all wings of the debate. And he was saying, you know, there are those who really would like to renegotiate and those who see the process of renegotiating leverage to get the threat of the referendum as a you mentioned to get more power back. And he would have been a hawkish group for it. Weve met with all rings. This doesnt mean we would expect any circumstance. Whats being set up here, frankly, its looking at the negotiations happening right now in brussels. Its a test of David Camerons political power, his ability to push for changes. The message i got from him, as well, they clearly support camerons plans to make the eu more competitive. A lot of what was in this speech get a lot of support. And germany, you know, now acknowledges britains trade relationship is very important. But the question is where the red lines are. And also weve seen what was it, the bruin london pack is deepening. So in some ways, it seems as though its deepening. Just a bit of news here following the discussion we had with stephane just a few minutes ago. The French Finance Ministry is now saying the state is not its taking a stake in peugeot. Its not on the agenda. Peugeot shares are down about 2 currently on the cac 40. It says an asset writedown doesnt mea