Welcome to worldwide exchange. Im ross westgate. And im kelly evans. These are your headlines from around the world. Beijing steps up social spending in its latest budget in the bid to boost Living Standards and build out chinas domestic economy. Europe agrees to an antimoney laundering audit of its banks. But the finance minister says the originalin borders on racism. For us, a depositor is a depositor. It does not matter where they come from. A 10 decline in car registrations in february overshadowed the auto show in geneva. Plus, hammer jeanie showcases the 4. 5 million that is a cool looking car. Standard chartered sets this dividend on the back of pretax profit earnings. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. February pmi, 47. 9. 47. 3 was the flash. Its still lower than the 48. 6 in january but the pick up from the flash, the Employment Index 46. 5, 46. 3 was the flash. The final composite pmi, 47. 9. Both germany and france contributed to the higher revision. 53. 3 to a little better. France is a little better, but its still deeply in contraction at 43. 137. Spain actually got worse. 44. 7. That was worse than we were looking for. 45. 5. And italy, also. So, you know, if theres any growth, it doesnt really matter. Bit of a problem, that. Could do with a little bit of growth. Its interesting because weve seen this pattern where risk on risk off, is it giving away to a dollar on dollar off trade . If you look at what happened yesterday, it wasnt a consistent theme. We have spanish tenyear yield holding okay. I think theres were still searching for the new regime. Whats the new regime for it . Its a coalition parttime. We have parttime correlation. Parttime correlation. Thats what weve got. So on todays show, were talking about that. Well be speaking to some of the biggest names in the Auto Industry at the geneva auto show. Carmakers unveiling their latest models. Well be in brussels. David camerons relationship there in the spotlight. And the reserve bank of australia kept Interest Rates on hold at 3 , fighting an improved Global Economic outlook. Well speak to the prudent i cant tellal ceo who says the market is improving upon optimism on the u. S. Economy and ongoing supply. New car registrations in germany plunged 10 year on year in february, signaling slowing Consumer Spending. This is gms vice chairman Steven Gursky defended its decision to keep its European Union opal, saying that the firm is beginning to make progress and to think that you dont have to be in europe is naive. Our man on the road if he Geneva Motor Show is steve. Lets move straight into those comments from steve gursky previously. It is an operation, of course, that people many times have said why are they continuing with the opal operation . Its a hard market share to try and make any headway and europe is producing too many cars and weak demand, as well. Lets speak to steve gushgky, vees president of gm. Lets talk about gms commitment first and foremost to opal. Youre trying to turn this one around, but youre doing it against a back drop which is devastating, as far as i can see. We know the environment is difficult. Europe is among the most sophisticated car consumers in the world. And we feel like were going to be able to win here and win globally. We should be able to make money with this. Youre being squeezed by the Premium Brands on one side, the value brands on the other. Youve got 26 new brands coming out. How are you going to fight back with these models . The way we win is Pay Attention to the customer. We have great new products. Our products win award. We have a brand new convertible here which is dynamite. Were pretty excited about this stuff. Carl thomas, youre the man who has to take over this european operation and continue working with the customers, with the management teams youve got in place and with the unions, as well. And its the latter point that at the moment, if you have to cut costs aggressively, which you do to compete, how is that relationship with the unions going to last . Because do you need to do what you did stateside and basically cut a lot of capacity. We did have a lot of achievements in the last year in volvo, britain and germany. We have an agreement now how to go forward with all the locations in germany. But the most important point is the product. We are launching four premiers here and the product will make the difference. It will make the difference. But the overcapacity in europe is staggering. I read a statistic. I think it was 83 of usage in 2007. We didnt have a crisis then, by the way. Now we have a 75 usage. There is still massive amounts of overcapacity. Why not do what gm did in the states and cut, cut, cut aggressively . Well, i think we are cutting, but also were trying to fill the factories. So were entering into a new segment. Were entering with 90,000 autos already. We created a new segment for small suv and our adam is a beautiful lifestyle car. Its part of an all new segment. We did announce that we are not going to be producing cars after 16. So we are taking care of some capacity. Weve talked about producing nonopal branded product in our plants here, so we are addressing our capacity issues and were addressing our cost issues. Do you know morrey sailor . Ive read his comments. Im sure you know him, as well. Why is he wrong, then . Hes been having a pop at french workers, hasnt he . Why is he wrong about european workers . Its about productivity. Cost is one piece of the equation, quality and another piece of the kwakz. In our german facilities, we get good called yeah and good productivity. Again, i say its the product. What else could you want . Lets talk about financials. I said a couple stats off camera and you are swift to come down on me there. Youve said its going to be break even by 2015. Thats not quite correct. Is it . We said were going to be break even by mid decade. Thats the plan, thats the goal. Sales are still being in 2013 after 2012 which was the worst year for 17 years for european automotive, as well. Do things get worse before they get better . Actually, i dont think so and i dont hope so because we were able to grow in eve r europe with recommendivety to the market. And as i said, with entering the new segment, that can make the difference. How far are you from where you want to be having got yourself back on track from the events of 2009 . How far is gm away from where it used to be . Well, the u. S. Is doing great. Our china operations are doing great. Latin america is improving. We know we still have more to do. Our Profit Margins are the where the best in class are. But we have a plan to get there. At the corporate level and indeed at a consumer level, do you think the events were seeing at capitol hill, the lack of progress and the stumbling were doing, one sequester to the next, do you think that is preventing Companies Like yourself and the consumer at the end of the day from buying products . I think uncertainty is never good for the consumer. Were seeing a lot more places here and in italy where you have significant kwern with regard to recovery. But so far so well, the economy seems to be doing recently well. I had one coo on earlier who said whats going on in italy . Theyve pulled the rug out from under our feet. We are strong in germany. Germany i think is doing a little better. Same is true for britain and also are we going into new market like russia and turkey, emerging markets. Guys, we have to leave it there. Thank you so much for your time. I really appreciate it. Thomas and steve, were on the opal stand. Well speak to carlos gohsn in a few moments time. What were asking is what car model or feature are you most excited about v. The lamborghini, i could that be yourself . I didnt know this, all the car name res named after spanish bullfighters. Yeah, of course. Gave us a heads up about that. Not the bullfighters, the bulls. Oh, the bulls themselves. Yeah. It took 24 staffs, tough guy, that one. Oh, wow. It doesnt even look like a car. It looks tech logical batmanesque. I think id have trouble getting in and out of that, one, as well. Yeah. I think ill stick with the bus. Moving on, beijing says its ready to deliver boost in spending of 7. 5 this year. Wen jiabao stresses its important to keep the economy on its toes. China is looking at fiscal deficit of over 190 billion this year, or about 2 of gdp. We know says china is aiming for a cpi increase of 3. 35 . Eunice is covering this for us and joins us now from beijing. Which one are people seizing on most . People are seizing on that 3. 5 target that he was looking at for the broad money supply, as well. So its an indication in the government year is going to be more aggressive about innation. People have been focusing on that number on the budget deficit that is it is going to look bigger. But its still 2 of gdp, which some economists here say isnt too alarming and especially if you look at the breakdown of how theyre spending the money. It looks as though the government wants to allocation money monies to the Health Care System and it looks as though theyre putting their money where their mouth is in order to try and make sure they address some of the important issues that premeem wen jiabao had talked about this morning at the opening ceremony. Most leaders take a look at what happened in the past year and lay out the goals for the coming year. This time today, premier wen jiabao recently defended his record but also talked about some of those challenges ahead, especially some of the social issues. This is what he told the delegates who were there. We are facing many problems. The Economic Development is increasingly in conflict with resource conservation and environmental protection. The Development Gap between urban and rural areas and between regions is large. So are income disparity between individuals. Social security, medical care, housing, the environment, food and drug safety, Workplace Safety and public order affect peoples interests. Some people still lead hard lives. There many systemic and constitutional obstacles developing in a trvrmational. The some areas are prone to correction. Another number was the military increase in the budget. The chinese have decided to increase their military budget by 10. 7 . Now, this number is less of a rise than the Previous Year and the year before that. But it still is double digit growth. That is concern among the region as well as with the folks back in washington. Guys. Eunice, thanks very much for that. Italy sparking a lot of chatter on the social media website, as well, about whether theyre doing enough on human rights. The latest data shows pmi fell last month. There is also swelling in indias Service Sector as the services pmi came in at 54. 2 in february down from 57. 5 the month before. Analysts say theres still, as well. Its stilly a bright spot in its economy. Ross. Meanwhile, here we are, an hour and 15 minutes into the trading day. Theres a lot of green on european stocks. Only about 25 stocks in negative territory. The ftse and 1100 yesterday was down 0. 5 . Right now, were up nearly 11 , 6,403. Banks, resources doing particularly well today. So despite continuing negative news, these markets wants to keep line up. Xetra dax 1. 6 . The ibex up 1. 4 . Even the ftse mib up around 2 , 300 points higher. Gilt yields backing up, steady at 4. 74. Tenyear spanish yields, 5. 03 is where we stand. So just still under that 27, 26 basis point spread which we hit. Currency markets, that friday low was 1. 2966. Dollar yen, still in the range between 9 0 and 1933. Reserve bank of australia kept rates down. The aussie the priced in a slim change. That is where we are right now in this european trade. Lets recap what happened in asia today. Sixuan joins us for the first time today. Hi, sixuan. Thank you, ross. Asian markets reclaimed some of yesterdays loss round ending in the green. The shanghai composite rebounded from a twomonth low. Banking shares made of combat as striking fears began to ease. This after outgoing premier wen jiabao said china will increase its fiscalpending to keep growth at 7 . She could then gain 11. 5 after the lender which is controlled by Hsbc Holdings reported a better than expected 15 rise in its 2012 profits. In japan, the reflationary xwraut further momentum as the leadership gets under way at theback of japan. The nikkei end dollars modest. Unipost posteded a nearly 10 year on year jump and domestic sales elsewhere last month. South korean chipmakers helped the kospi in the green, but only marginally. In aus trail yab asxs 200 finished stronger by a 3 with banks and retailers leading the rally following retail and export data. Indias sensex still in action now trading higher by 1 is. 3 . Back to you. Okay. Sib want, thank you very much for that. Still today on cnbc. Com, chinas demand for resources might be volatile. Wine they cant get enough of. Why out why one sessy group thinks the trend will continue. There was considerable doubt of when the pay plan will be implemented into law. More details on our website on that, as well. And president hugo chavez stems down and it could create volatility in Global Equity markets. Is that the up or down side from current levels . Cnbc. Com for more. Ross. And still to come on the show, the future of chinas growth lies in the wallets of its consumers, according to our next guest. See you in a few moments. [ male announcer ] ah. Retirement. Sit back, relax, pull out the paper and what . Another article that says investors could lose tens of thousands of dollars in hidden fees on their 401 k s . seriously . Seriously. You dont believe it . Search it. 401 k hidden fees. Then go to etrade and roll over your old 401 k s to a new etrade retirement account. We have every type of retirement account. None of them charge annual fees and all of them offer low cost investments. Why . Because were not your typical wall street firm thats why. So you keep more of your money. Etrade. Leor us. More for you. Welcome back to the program. Chinas we know jaw boy set out a program which places consumers at the heart of the countrys economic future. Joining us now is Lucas Phillipo chief economist at natixis. Nice to see you again. Were you surprised to see such strong focus on consumers here in this outgoing speech . Surprised . No. I was more surprised by the action than the words. Let me be clear. So basically, there has been this montra about increasing Consumer Spending and consumer contribution to gdp growth in china for many years. But its mostly been words. And apart from increasing minimum wages to where no real measures to make this happen, to make the contribution of consumption, of private consumption to decrease over increasing gdp in china. Two or three days ago, some new curbs on real estate, all these are measured factuality and actual measures that are going to have an impact on consumption. So i am surprised by the action. Im positively surprised about the action. Words, we have been listening to them for five years and Nothing Happened until today. Following your point about property curbs are going to help bolster broadly speaking consumer push chasing power in the years ahead. You ask any chinese why they are saving so much. One of the reason is the absence of social security, especially for private sector employees. But the other reason is that they have to secure a home for their family. House price ves increased so much that the effort that is required in saves money for purchasing one home is significant. Many, many years of next. So if you are able to curb house prices, if you are able to give, really, affordable houses to Young Chinese, then Young Chinese will consume more. This is what they should do because young people consume more of their income. This is what should happen and this is what we lack in these prices are curbed by policy china. I guess then the question becomes whether or not these measures dont sound like theyre necessarily a game changer will be successful in that regard. Really, how much is youre talking about very fundamental, the sense that the chinese have to save in order to have a home for their families down the road. Will the chinese, then, do you think become much more aggressive to help change attitudes here . Kelly, this is gist a drop in the ocean, basically. This is the beginning, but this is action. Then, of course, also the plan that was announced three weeks ago is just the beginning. Because this cole cope and the breath of the plan is not yet enough to reduce significantly come the Income Distribution inequality. So more action will follow. Im not saying that you just curb prices. Im just saying that house purchase and the worries about the continuing increase in house prices was one of the main factor of consumption, of savings on the young people. Especially in the cities, especially in the large cities in china. And so this is just encouraging news. One reason. I know youve mentioned these growth targets will be telling. Time will tell. Thanks so much. A number of earnings out well focus on today. Standard chartered shares posting higher. The company showing an increase in full year profit. It raised its dividend and said its still a good start this year. It hiked its dividend more than 10 , 8 cents a share. Standard chartered reported a drop of 7 in the bonus pool to reflect performance as well as the impact of legal settlement in the United States. Shares in dhl rising. Its eecting an improvement after posting better than expected q4 results. Taxes were up 38 . Speaking earlier on cnbc, the ceo says he sees continued strength in demand at home and abroad. Definitely asia has helped us. But also the business in germany has continued to grow very, very strong. Joef all, we have seen the same trends as we have seen in the previous quarters. So its all intact and we dont expect any major change for those trends in 2013. All right. We just got uk services pmi about to come out, as well, at the moment in the uk. Kelly, youve got a oh, my wait a minute. February services pmi, 51. 8el, the highest in september. I thought that 67. 6 figure was the headlines.