Partys big defeat in recent state polls. Plus, its a virtual Winter Wonderland in the northeastern u. S. Major storm dumping up to two feet of snow in some areas causing a travel nightmare for drivers and airlines. Announcer youre watching cnbc world news, bringing you Business News from around the globe. A warm welcome to worldwide exchange. Its january 3rd. Advancers outpacing decliners. Trending around the flat line, just above it as you can see. The ftse 100 today is flat, just down three points. Nationwide saying weve seen the biggest monthly jump in over four years last month, a 1. 4 surge in house prices in december means the average price of a home was 8. 2 higher in 2013 than in 2012. The xetra dax is up 0. 11 . The cac 40 up 0. 25 and the ftse mib up 0. 5 . Next, up 9 on the stock today. Sales up 11. 9 from the november to december period, significantly ahead of the guidance that the retailer gave in december. The firm upped its forecast range to 684 to 700 million pounds. Telecom italian is up 4 had . Remy cointreau is down 2. 28 . The ceo has resigned. The group said he was stepping down for personal reasons. And fiat chrysler, the stock after yesterdays jump is down 1 today. Its looking to list in new york, it comes after the italian carmaker gained full control of chrysler yesterday or announced it would be doing so. Lets recap what happened with the u. S. Equity markets. The worst day in two months for the dow. Down 0. 8 . The s p 500, the nasdaq having their worst day in three weeks. Volumes were fairly light, off 0. 8 and 0. 9 respectively. Asian equity markets in response to that have been all down today. Shanghai composite down 1. 2 appears. Hang seng off 2. 25 . S p asx 200 off 0. 3 and the kospi is off 1 , as well. Tenyear treasury yields, 2. 97 . Look at this spread, below 200 basis points for the First Time Since december 2007. And on the on currency market, a little bit of Short Covering from the levels that weve seen. So euro dollar, back down to 1. 3636. And sterling here just down at 1. 5442. Got a lot of data coming out in 25 minutes out of the uk. Construction pmis and a lot of mortgage approvals and lending data, as well. And well take a look at where we are with commodities, as well. All spiking higher off the low. Spot gold up to 1231. Brent up to 108. 53. Weve got Inventory Data up, as well. Now, the new year, of course, comes with new resolutions. Its tradition. But can you make money . What most people want to change in 2014. Cnbcs dominick chu has been taking a look at what he calls resolution trades. Tis the season for new years resolutions. Can the idea of new years resolutions turn into investing ideas . First, physical fitness, eat better, exercise more. On the diet front, theres Weight Watchers international. During the last three years, the Company Posted healthy gains. Its a different story for the gym rats. Talent Sports International which owns new york, Boston Sports Club among others post healthy gains in january and those gains gather more steam as the year progressed. Second, getting your finances and investments in order. Take a look at shares of the worlds biggest brokerage, morgan stanley. Its posted strong gains on average over the last three januarys, but thats about it. Shares were relatively flat for the rest of the year. Different story for personal Software Company ip tuit which posted modest gains for the month, but got stronger each year. Third, for education stocks like devry and language learning company rosetta stone, the numbers were mixed. The bottom line here is take a moment before just buying a stock because the company play aes role in your new years resolution. Dominick is joining us for the first part of the show today Andrew Goldburg from jt morgan fun. Happy new year. You, too. Nice to see you. Any investment resolutions . Yeah, theres a couple. Theres a couple that weve been talking about. One important one i think is to rebalance the stock market in the u. S. , up 30 last year. Markets up around the world, particularly in the developed world significantly. And then back over the last 12 months, youve seen one of the biggest gaps between Stock Performance and bond performance in a while. So as much as it pains me to say, it is important to go and make that rebalance and actually pair out of equity and into fixed income. Youve got to do some of that. If youre overallocated to fixed incomes, dont forget, there was a lot of bond buying going on in the last few years and if you go the other way. But if your equity allocation is swelled too much, you do have to do the responsible thing and pear it back. Our Research Shows thats the way to get ahead over the long run. When you say long run, what do you mean by long run . If you look over a five, four or tenyear cycle or somewhere in between, even though one given year youll do better in equities, lets say, the reality is if you rebalance over a five or tenyear period youll do better. But hasnt the last decade been the fixed income decade . Its been a great year for fixed income. One thing investors need to understand is youre not going to get a decade like that again from fixed income mathematically. While you have to make that rebalance, you have to think carefully about where in fixed income youre going to go. Also, i think using equities to some sten as a substitute where possible for income. You cant think of it as yields any more. You have to think of it smartly as income. This is a harder year, isnt it now . Yeah, much harder. Last year, we didnt know and no one expected the moves that we had. But if you are just going to roll the dice and, you know, bought index, youre as happy as larry. Yeah. The reality is i would by much more comfortable telling you about investing in 2014 if we didnt get a return in 2013. So i tell will be a tougher year. Will earnings be growing versus the excitement over some bad things which didnt happen which is what i think the markets were responding to last year. If you put money in the u. S. , youve done absolutely fine. Do you need more global exposure . You do. And thats true not just in the u. S. , in the uk, people are very bias in the developed world. And, you know, people have to understand their portfolio you have to think of your portfolio as a jet setter. Its really tough in spain. If you live in spain, you have to think of your portfolio everything else, as well. Thats important. Andrew, good to have you on. Now, more better returns im sorry, youre quite a good looking guy. The university of wisconsin found attractive chief executives receive higher pay and boost Stock Performance when they appear on tv. For a full round, check out cnbc. Com. Its statistically proch, you do better if youre better looking. Plus, we want to know who do you think is the most attractive ceo . Get in touch with us, email us, worldwide cnbc. Com, tweet cnbcwex or direct to me rosswestgate. A number of on discussions among the Production Panel today. Now, for the northeast and midwest is getting slammed by a major winter storm. Forecasters say areas just north of boston have been hit with two feet of snow and new york city is expected to get around 8 inches. Temperatures are expected to drop to minus 10 degrees fahrenheit which is around minus 23 celsius. More snow is predicted in some areas. At least 4,300 flights have been canceled today. Up to 2,500 were canceled on thursday. Britain is bracing itself for some extreme weather. And in northern ireland, police have warned some resident toes be prepared to evacuate their homes. Also on todays show, the u. S. Auto industry has moved into higher gear in 2013. It had its best Sales Numbers since 2007. Whats going to happen this year . Well discuss at 11 45 cet. Indias Prime Minister has revealed he wont seek another term and will retire after this Years National elections. Well get the latest from mumbai after the break. And the Festive Season may be winding down, but the sales are still in full swing. At 10 40, well find out which gadgets flew off the shelves literally this christmas. Plus, car manufacturing in the uk hit a sixyear high in 2013. Experts predict growth will continue into this. At 11 20, we find out why all that and plenty more. Welcome back. How is everything . Theres nothing like being your own boss and my customers are really liking your flat rate shipping. Fedex one rate. Really makes my life easier. Maybe a promotion is in order. Good news. I got a new title. And a raise . Management couldnt make that happen. [ male announcer ] introducing fedex one rate. Simple, flat rate shipping with the reliability of fedex. Everything looking good. Velocity 1,200 feet per second. [ man 2 ] your looking great to us, eagle. 2,000 feet. Still looking very good. 1,400 feet. [ male announcer ] funny thing happens when you shoot for the moon. Ahh, thats affirmative. [ male announcer ] you get there. Youre a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. Remy cointreaus ceo has resigned for personal reasons after just three months. The chairman of the board will assume the responsibility ones of the chief executive office while mr. Flanz is set to remain in the company as share director. Publicis ceo gave us a recap on the year before giving us a taste of whats in store for this one. We started this year the forecast was 4. 5 for the industry. The latest forecast grows to 3. 5 , which is 100 business points below what we were expecting. When it comes to publicis, the nine first month has been excellent and we are in line ahead of our objectives. The last quarter, the fourth one, is always a quarter of uncertainty. They are pushing through january and february some of the launches the. How do you see the advertising markets in 2014 . Do you think that the Olympic Games or the fifa world cup will boost the markets . There is three elements which may drive the market up. The first one is the forecast for gdp and gdp growth is expected to be better than the one we experienced in 2013. The second one is fifa world cup and the third one is winter Olympic Games. Winter Olympic Games is never a big deal, but the fifa world cup is something which is driving a lot of sponsorship, a lot of activity. So we expect that next year will be about 5 for the industry. If you convert the media expenditure into agency revenue, it is above 3 . We expect that can be probably ahead of the market. We have some very good wins. We have a new Business Plan which is very good. So we expect next year, which will be better than 2013. How do you see the macroeconomic environment next year . U. S. Seems to present a very good profile. There are some issues regarding the bric market where it seems it is slower than what we are used to. There are still some issues regarding brazil as well as india. So its something which is quite complicated and europe is not yet taking off and we dont expect europe to reach the average of the industry or the gtp growth. So we have a contracted picture. Africa but not the big market that has been doing extremely well. As well as the gulf countries. Pimco suffered its biggest annual loss since 1994 according to data from morning star. Total return loss of almost 2 , compared to gains of over 10 the previous year. Andrew, if you want income, you say you want to look to income, not yield. Explain that. Historically when people find that income in their portfolio, its from traditional sources such as conservative fixed income, government bonds and things of that nature. First of all, within fixed income, i think its important to spot and this is tough for people because you have to move down on the risk spectrum as you age and move down the requirement. But the reality is you cant. You have to start broadening your horizon, not just corporate bonds, but its high yield corporate bonds, maybe even emerging markets, convertible bonds. But then moving into equities, certain equity thats behavior or feel more you mentioned sort of high yield and emerging market debt. They look very richly valued. And you cant my 6 or 7 group, how much risk am i take for that . If he end of the day when you look at high yields, it is a riskier investment than government bonds unless Interest Rates rise. One of the things we look at closely is the likely impact of rising Interest Rates on different types of bonds you hold. And the reality is you have more cushion, more protection because of that bigger yield in a high yield bond when Interest Rates go up. Generally speaking, thats good for companies. So i think first its important for people to diversify within their fixed income portfolio. But then when it comes to income to start broadening, keep it in perspective, a 3 bond isnt the end of the world, is it . Not yet. Not yet. Fair enough. Lets return to india. The Prime Minister has announced he wont seek another term as leader and retire after National Elections due to take place later this year. The twoterm leader held a Rare Press Conference earlier where he told fortis he would hand the baton over to a new Prime Minister who he hopes will be chosen by the current coalition. Joining us is the executive editor in mumbai. Hi, letta. Hi. If you are looking for the key take aways for how the Business Community understood the Prime Ministers speech, the stock markets didnt react much at all. The dollar got slightly more expensive and bond was up by one basis points. The markets regarded the speech largely as a nonevent. In terms of take aways, the fact that the Prime Minister is not throwing his hat in the ring for the next term is not very significant from all trends that have been extrapolated from the elections that just got over the current coalition, not even expected to return, not by a long shot. So that is offering his hat in the ring, not very significant. But nothing was announced just yet so the market is actually relieved. Thanks very much indeed for that. Rob ford, who previously missed his smoking crack has run for reelection. His campaign election, ford more years. He says its up to the voters to decide on his track record and his personal problems. Still to come, weve got uk construction pmi plus data. Well get full reaction from the guests who say investors should now prepare themselves for British Economic to disappoint. Well find out why. And the headlines from around the globe, equities seeing a little bit of red. U. S. Stocks drop on the first trading day of the year for the first time in 2014. Europe is trying to hold the flat line. Spanish tenyear yields is at its lowest level in nearly three years. Spain reveals unemployment dropped more than 2 in december. Indias Prime Minister says he will not seek another term following his partys big defeat in recent state polls. And its a virtual Winter Wonderland in the northeastern u. S. , a major winter storm dumping up to two feet of snow, causing a major problem for travelers and airlines. Quite a bit of data coming out in the uk in just a few moments. Construction pmi, money supply data, as well, and mortgage approval date data. Also heard from a number of retailers. Could be floated on the stock market by the end of the year according to a new report. Ceo john king revealed his hopes for a 2014 listing, even as the firm remain necessary exclusive talks regarding a potential takeover by its french gallery. Valuation s follow record results. It was a very Merry Christmas for next, the retailer raising its profit forecast and launching a special dividend. This after Fourth Quarter sales were up almost 12 for 2013, significantly ahead of on expectations. The stock today up nearly 10 . A big reaction. And nationwide houses were out earlier, showing the biggest monthly jump in over four years for british house prices. Up 8. 4 . For the year in december from december 2012. 1. 4 surge in house prices in december alone. Joining us for more, david owen, chief european economist at jeffreys international. Andrew goldberg is still with us, as well. Well get data out in few moments. How much is the house prices contributing to a stronger consumer consumption pattern . At this point, not really a lot. One has to remember the housing transactions as consumer durables remain depressed. They are picking up. But this trend is now more positive. One has been underpinning the consumer is about real households versus incomes beginning to accelerate. How is that happening . Employment games. Its an interesting dynamic. Youve seen strong Sector Employment gains. The Public Sector highlighting the public Sector Employment didnt continue declining into the First Quarter of last year. What the abr was expecting. So the labor market tight nts in terms of the Employment Data has helped the consumer. Obviously, wages remain pretty weak, indeed. So were coming off a very low base. But recovery in the uk can you see any point where wages will start to rise . At the end of the day, thats the one thing the bank would respond to. They want to see Wage Inflation picking up and Wage Inflation at this point is incredibly weak. Were going into this crucial dynamic pay round on. But one would expect this year Wage Inflation to rise and for the battle to be placed from employment gains to and is