Welcome to worldwide exchange. Im ross westgate. Here are your headlines from around the world. The g20 looks to avoid harsh rhetoric. I dont think we should be losing any time in talking about the currency wars. Theres no currency wars. With we are furthest away today from a currency war than we were two or three years ago. The end firms also underpinned by expectation tess japanese Prime Minister is close to selecting his nominee for the governor of the bank of japan. And get out your binoculars. Its time to go what he will watching. Plus, shares in Commerce Bank at the bottom of the dax, the Bank Warnings it will have to make more provisions on toxic loans. Okay. Warm welcome to you. Im flying solo today. You might have seen kelly was on squawk box. G20 finance ministers of the central bank is kick off officially those weekend squawk in russia. Theyre expected to deliver a pledge of Monetary Policy while focusing on measures to boost global growth. Steve has been there all week and he joins us again this morning. Steve, we actually finally start the meetings today. Weve had comments out from the russian finance minister, as well. Whats he saying . Well, hes trying to get us back on track on to a growth agenda, which when you look back at what the agenda was a couple of meetings ago back in toronto in 2010, that was sorely missing. That was about harboring deficits and having firm targets. It hasnt really worked, has it . What theyve said is our growth estimates were slightly optimistic. Listening to what some of the policymakers are saying this time around, the likes of mario draghi, im scratching my head a little bit. Theres some uncontentious stuff. I can live with that. Range of Financial Market indicators showing situation normalizing. But what about this bit . Currency chatter is inappropriate, fruitless and selfdefeating. Hang on a second, mr. Draghi. It wasnt us, the journalists that started this. It was policymakers. It was the g 7. Its incestble were going to start rumbling about this. I cant help but thinking mr. Draghi is missing the point here. If they start this debate, were going to carry it on. Theres a lot of contention as to how we go forward. Anyway, i spoke to the russian minister yesterday. Jobs, economic stability, Financial Market regulation, regulation of the energy market. He wants a focus on longer term growth goals and thats what the oecd is looking at, as well. Theyre going to release a 292page document looking at Company Specific reforms and structural issues that need to be looked at Going Forward. I dont think we should be losing any time in talking about the currency wars. We are furthest away today from a currency war than we were two or three years ago. Today, our in the oecd, our Research Shows that were pretty close to balance with most of the with the biggest currency, the most important currencies. So we dont see why we should be talking about currency wars. This currency war is no longer operational. Were using jargon from the past. Were fighting an old war. Today, we should be concentrating on productivity. We should be cobs traiting on competitiveness and we are being distracted by this currency discussion. Were not talking about decades. The 2010 are talking about brazilian wars. It was three years ago already. Its decades. Its centuries ago. Were in the middle of this crisis. And three years ago was toronto 2010 and the communique then had the wrong focus at the g20. It was focused on deficit reduction. It did not have the wrong focus. What it was was overestimated growth. They got it wrong. No. What we we were optimistic about growth. But now we should not give up on the deficit reduction. We should not give up on the Fiscal Consolidation. But we should string it out over a longer period of time so that we give a chance to the automatic stabilizers to come in because we have less revenue because there is less growth. We should adjust the program so youre not talking about it sounds to me, and correct me if i am wrong, it sounds to me like youre talking about kicking the deficit reduction target into the long grass, youre talking about 2016 as the potential era where we can have a meaningful cut in deficit. If 2010 was a long while ago, 2016 is long into the future. That is indeed what im saying. Pushing forward the time when you are going to arrive at these targets for this reason. If you have less revenue, it is because you have less growth. If you want to compensate the less revenue by cutting the expense, then you have even less growth. Youre going to be chasing your tail all the time into a downward spiral. To avoid that, you say, okay, i keep my deficit reduction target, but i string them out longer so you would not have such a painful adjustment. I thought it was very interesting his interpretation versus mine. I said they got it wrong. He said they got their growth estimates slightly optimistic. I said youre kicking it into the long grass, he said were adjusting that. I think were talking slightly in different ways the. One thing i would say is one company and perhaps the most systemically important is the United States. Were going to speak to the top u. S. Official at this meeting. Ross, back to you. Steve, good stuff. Plenty more to come. Lets get more from darah from hsbc. Darah, are countries involved in currency wars or is it just the result of Central Bank Policy which they need for their own domestic economy . Well, i think actually both, really. But our assessment is that there is evidence of this currency war. The number of players is rising, the number of tools theyre using to deliver it is grog. And just the scale of players. You have the japanese yen in the currency in maneuvering position and its far more significant. There are far bigger players in the fx market than what weve seen in the past. Youve done this chart. The most active is switzerland and japan. Now, swisserland because they have a peg which theyre defending. In japan, one could easily argue that their currency was far too overvalued. Yeah. And oversold of their own. They dont dispute that. Im sure its a starting point when japan began this promise of radical monetary easing. And talking down its currency because they talked about it being overvalued and needing this adjustment. We had said at the starting point the was an overvalued one. But where they have now moved to is borderline undervalued. The toughest g20 conference, we can only identify with currencies that are more undervalued. So justify, yesterday, perhaps in starting this process, but can they sustain it . We would argue not. Thats why, if you like, theyre at the top of the scale in terms of appetite, but their starting point is perhaps a more justifiable one. That is given some reaction today. Bear in mind we appreciate since november the dollar against the yen. What actually is how much more is there in terms of the moves cross rate . Honestly, i dont think very much. Our yearend target on dollar yen is 80. At the moment, its looking rather distant. We dont think the bank of japan is going to deliver the radical easing and seismic shift. The market will perceive him as the least dovish of the three. Nonetheless, a bit of a disappointment there. It doesnt feel like theres much juice in there. Its difficult to say theres not a currency war, but its a bit like a child putting their hands over their eyes and saying, look, ive disappeared. Theyre under pressure not to do much more. Interesting. We take a look at the rest of your least active chart here in the currency wars. Canadian dollar is next and the euro, as well. Draghi has obviously been speaking this morning saying currency chatter is inappropriate. Inflation is not a policy target. Its important for growth. But if they wanted to do anything to weaken the euro, what policy actions could they actually take . Well, i mean, on paper, they have not options. They can cut Interest Rates and they could, of course, embark on quantity tative easing, not omt, but buying bonds across europe. But to strike us at likely prospects at this point when talking about the recovery moving to a more stabilization stage. The euro would strike us as an obvious safety buzz. It would rise to currency weakness elsewhere. I think that will be a problem for europe and its one that theyre trying to mitigate now and one theyre trying to talk down now it seems from draghis comments. And the german finance minister saying Exchange Rates should be market oriented. So it looks like the euro will remain least active. I also want to pick up on comments we had from the rba board member edwards overnight saying the aussie dollar was extremely high. Is that a hint that, you know, they will they wont have a cut in Interest Rates to weaken the dollar, but is that an indication . Its a bit like the bank of england saying we dont mind if the currency weaknesses. Were not going to be worried about the impact of that. This is what ivengd peculiar. Some like to argue weaker currencies are a side effect of Monetary Policy. If youre acknowledging that in the way that this is the transmission mechanism, then im sorry, you are using Exchange Rate and australia could be i wont say accused of that, but im sure they dont mind a weaker aussie. The uk i think would be equally comfortable with the weaker sterling and overnight saying they might cut rates. I think it is a global theme. Im sorry to disagree with them and multi nationals heads out there omcdf, i think we are in the midst of a currency war. Clear enough. Thank you for joining us first thing this morning. Lets bring you up to speed with where we stand in the currency markets. Weighted to the downside. Around about 6 to 4 decliners outpacing advancers. Pretty flat, truth to be, really. The ftse is down about five points. And we saw this yesterday. There was the push pull from those much weaker growth rates for the eurozone but, of course, still fairly good corporate numbers coming up. Take a look at the bond markets there. We got through the auctions this week fairly comfortably. 10year gilt yields have come back. We hit 2. 2 yesterday. Were back down to 2. 15 mers. On the currency markets, dollar yen has strengthened begins both the euro and the dollar. Not a huge reaction to the composite. Sterling dollar, just below 1. 55 yesterday Holding Steady ahead of the retail sales numbers, as well. Brent towards nigh neck, not far away, just coming back 1. 70. And well talk about gold on the spot price. Thats why we stand with these asset prices right now in european trade. Lets recap the day week whatever you like in asia. Sixuan is with us. Its lackluster day of trade in asia. Focus remains on moscow with all eyes on the g20 meeting. The nikkei eased 1. 2 today while the yen strengthens as japan continues to grab the headlines. Investors are fretting over g20 currency. Kiri this holdings slipped after cutting its full year operating forecast and toyota shares lost nearly 2 after they reached a settlement in the u. S. Over the safety recalls back in 2009. Other currency sensitive automakers sun as honda and suzuki shares draft. Volumes remain close as some markets are still closed for the lunar holiday. Bearing in mind the stock has surged 7 since may. Elsewhere, south koreas kospi managed to hold around a threeweek high ending higher by a such. Meanwhile, Australian Shares eased a touch at its 4 1 2 year high. Mining giants reported its first annual loss after the closing bell. Indias sensex is trading lower by a modest 0. 12 . Thanks for that, sixuan. Warren Buffett Berkshire hathaway and 3g castle teamed up to buy heinz for 23 billion in cash. Thats a 19 premium to the stocks alltime high, including debt. The Buffett Heinz deal is the largest ever acquisition in the food industry. Now, mr. Buffett counts dairy queen among his food holdings. What iconic food brands should mr. Buffett be joining next . Send me an email, tweet me. What else should mr. Buffett put on his buffet . So is it war and peace for currencies at g20 meeting . Still to come, well speak to lael brainard. Weve got retail sales out today in the uk. The manager director of giesen hawks will join me to size me up at 9 40 cet. Geeld touches a sixweek low in asian trade. Well discuss the opportunity for the Precious Metals market at 9 to. Plenty more to come on worldwide exchange. To grow, we have to boost our social media visibility. More likes. More tweets. So, beginning today, my son brock and his whole team will be our new senior social media strategists. Any questions . Since we make radiator valves wouldnt it be better if we just let fedex help us to expand to new markets . Hmm gotta admit thats better than a few likes. I dont have the door code. Whos that . He won a contest online to be ceo for the day. How am i supposed to run a business here without an office . [ male announcer ] fast, reliable deliveries worldwide. Fedex. Where will it send me. One call to hoveround and youll be singing too pick up the phone and call hoveround, the premier power chair. Hoveround makes it easier than any other power chair. Hoveround is more maneuverable to get you through the tightest doors and hallways. More reliable. Hoveround employees build your chair, deliver your chair, and will service your chair for as long as you own your chair. Most importantly, 9 out of 10 people got their hoveround for little or no cost. Call now for your free dvd and information kit. You dont really have to give up living, because you dont have your legs. Hoveround replaced the legs. And now every hoveround comes with this handy tote bag and cup holder for access to your favorite items. And right now, get this limited edition hoveround America Travel mug free with your hoveround delivery. [singing] hoveround takes me where i wanna go. Call or log on to hoveround. Com to find out where a hoveround can take you the s. E. C. Is reporting looking into unusual trading after yesterdays takeover of heinz by berkshire hathway. There was a suspicious spike in heinz on wednesday. Activity was soaring this week as news of the deal circulated. Heinz closed up to 72. 50. The price berkshire and 3g are paying for the foodmaker. Warren buffett has been pretty busy. Berkshires menu of companies, an s. E. C. Filing shows he bought news stakes in adm and as well as holds in u. P. S. Gm directv, amex and verisign. Whats happening to that portfolio today, General Motors and directv are the fallers and Archer Daniels and verisign are the gainers. George soros is out of tech and loaded hi position in the spider gold trust. Paulson also saw his stakes, though, in etna and alpha natural. Hes signaling hes really to start help put the company in play. The move puts him in direct competition with blackman. The two famously fought on cnbc last month when icahn called ackman a major lose r. Korean Airlines Says it may bid for a 44 stake in czech airlines. A spoke person said its conducting due diligence, but hasnt decided whether to do the deal alone or deal with a consortium. Theyre looking to sell the struggling airline over the next few months, probably in april or may. Still to come on the program, while the u. S. Has seen anl n a frenzy, what does it deal look like . Analysis from hong kong in around 15 minutes time. Angelo american swung to a net loss of 1. 5 billion for 2012. Thats compared to a net profit of 6 billion in the previous year, but underlying earnings beat forecasts as production rose across all key divisions except platinum and diamonds. The outgoing ceo Cynthia Carol said she was optimistic about the companys future. Its a transition. And i think weve got a great future and i think the outlook for the fundamentals of this industry is very strong. Commerzbank says it will be forced to increase provisions on toxic loans this year and its warned that its unlikely to pay a dividend. Earlier in the month, they reported a full year profit of 6 million euros. Shares in French Luxury Group ppr show the highs in paris. Stephane has got more on the details for us out of paris. Hi, stephane. Hey, ross. For the First Time Since last year, dp posted its results without snag which is cultural goods in electronic retailers and thats really a sign that the transformation of the company from a retail group to a luxury group and that was a good choice because luxury was really what drove profits higher last year, up 6. in line with expectations. The Luxury Division which includes gucci at a 15 growth last year. The brands were the most dynamic ones with nearly a 0 growth and gucci remained the most profitable one with an operating income of 1. 1 billion euros. Thats nearly a 20 increase in 2012. The sport and life Signs Division which has a central grand puma was a bit weak last year, 3. 3 increase. But the ceo of the Company Remains confident that the sport and lifestyle unit will be able to post in the future as the luxury brand. Pbr is confident that it will increase again sales and profits in 2013. There is no precise guidance. The company will propose a guidance of 3 euro 75 per share. Thats an increase from 2011. Reaction is very positive in paris. Share price is up 5 . And, stephane, we understand, you know, that airbus now is not going to have lithium batteries in the a350. What are the implications for that . Does that mean there will be a delay in that program or not . Its to avoid delays, actually. Sometimes the new technology is not sure enough or is not is too much to be a safe bet and its exactly the choice that airbus has made after the problems with the batteries of the dreamliner. It will use the traditional batteries instead of the new technology, the lithium batteries. The choy was made to the prevent further delays in the release of the airbus 350. Airbus would like, for instance, to ignore dramatic consequences in case regulations would change for the use of lithium batteries in aircraft in the future. Yeah, okay. Well see what happens. Thanks for that, stephane. Catch you a little later. He has the full story on our website, go to cnbc. Com for