Forecast. That sent shares down by more than 20 . And president obama seek toes jump start his agenda pep told lawmakers hes eager to work with them, but hell go around them to get things done. And america does not stand still and neither do i. Wherever and whenever, i can take steps to expand opportunities for more american families, thats what im going to do. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. All right. Warm welcome to todays show. Were going to kick off with a look at Deutsche Bank. Were waiting for a press conference of the coceos of this morning. Were seeing general european shares a little bit firmer on the back of what happened in turkey overnight. Deutsche bank preparing to hold the press conference, of course, after that rather short profit warning when they brought forward earnings ten days early because, of course, theyve seen big declines, a lot of one off and declines at fixed income trading in particular. Were going to get the breakdown for the press conference right now, as well, from who are in frankfurt. So well listen into that in just a few moments. That will be getting underway. Dont forget, of course, well be speak to go ashley jane a little bit later and bring you an interview at 13 30 cet is the time that that will start. As far as markets are concerned ahead of that, this is where we currently stand at the moment. European equity res much firmer. The ftse 100 is up from 20 points from yesterday. Theres around about 30 stocks in negative territory. Were well over 9 1 advancers outpacing decliners. The xetra dax is up 1 . The cac 40 up 1 . The ftse mib is, as well. We saw treasury yields at 2. 106 . Were now back up to 2. 78 . The fed will conclude its meeting. Its widely expected theyll continue tapering at around 10 billion a month. And on the currency markets, dollar has rebounded against the yen. Were back up to 103. 15 after hitting that sevenweek low of 101. 77 earlier in the week. Sterling not far away from its 2 1 2 year high that we hit at the end of last week. And euro dollar steady at 1. 36 at the moment. As we watch that Deutsche Bank press conference, resources are having the best of it this morning and indeed they are. Up 2 . There are no sectors at the moment that are in negative territory. Technology, telecoms, banks all doing fairley well. The weakest are industrials and oil and gas, theyre up 0. 5 . Well get to sixuan in just a few moments. Its full speed ahead for subsaharan economies in africa. Lets find out why economies are lagging behind the emerging market race. Ukraines president accepts his Prime Ministers resignation, but the pressure is still on as moscow plans to review its bailout bill. Well get a wrap up of the latest in around 30 minutes time. And ahead of chinas Lunar New Year celebration, find out who plans to benefit. Eunice yoon has the story from beijing. Plus, all eyes are on the Federal Reserve later this morning. Find out what it could mean live from new york at 11 30 cet. On plus, as weve heard, president obama is vowing to push on with Economic Reforms that congress has failed to support, including a higher minimum wage. Well have analysis from washington with the economist greg ip. Thats coming up in the second hour of the program today. Meanwhile, well wait for that press conference with Deutsche Bank. Well have it right after this. That its given me time toabout reflect on some of lifeseen biggest questions. Like, if you could save hundreds on Car Insurance by making one simple call, why wouldnt you make that call . See, the only thing i can think of is that you cant get any. Bars. Ah, thats better. Its a beautiful view. I wonder if i can see mt. Rushmore from here. Geico. Fifteen minutes could save you fifteen percent or more on Car Insurance. Hanes burys ceo justin king has decided to step down this year in july. He will be going. The Group Director with skreed here as ceo. Hes going to step down on the 9th of july, 2014. Investors dont like it an awful lot. Initially, we gapped down around 5 on that news. So the sainsbury ceo justin king stepping down the 9th of july. Weve been listening to Deutsche Bank press conference this morning. They say 2014 will be a further challenge as they reaffirm the 2015 target as they had done when they brought their numbers up. They will take steps towards a leverage reduction target around 500 billion euros. Deutsche says they expect further costs from settles major Outstanding Litigation matters, but they are well positioned to lead the european sector consolidation after 2015. Joining us with his thoughts, from keppler, dirk. Everything weve heard over the last week or so, how do you think theyre managing it . How will do you think theyre doing, the coceos . Clearly, when they presented the financial target 2015 we got hoping it would go quicker and the burden would not be quite as bad as it now turns out to be. I think there are probably many think it already considering the amount of work they have to do. So im probably pretty happy. As long as they now make 2014 the last fed year and get better results in 2015, thats the way to duck them, i guess. Do you think they are going to be able to do that . I dont think they will fully reach that target. After all, they want to get net roe for the group. I think that is fairley ambitious and i cant see them doing that. But what i firmly believe is that they can make the bank much better, they can earn between 4 and 5 euros per share and this would be the cause for much higher share prices. Its very difficult toupd banks when they release so many numbers, you know. Deutsche is a very complex business. Should we be concerned about we had the pretaxes of on 26 million, 11. 3 billion in adjusted profits for the core business . Which numbers are we supposed to be focusing on . Yeah. I think we should leave 2013 behind and not try to overanalyze this. The number i was most focus on was this 8. 6 billion which they claim is the operating underlie pretax profit for the core bank. Because this is what will be left once all the legacy items are behind us. And if you calculate this on a net basis per share, this would be around six euros. And i think the more we progress towards 2015 and beyond, the more we see the results getting cleaner and the results per share moving towards their six euros. Yeah. I suppose we should applaud them. It costs to cut costs. Weve learned that, havent we . Yeah. Cutting costs is probably one of the big things that shareholders always wanted them to do. The costs to achieve and impairments and intangibles and what have you. I think on an underlying basis, they are probably doing okay. Can they really cut 4. 5 billion costs compared with 2004 . Im not sure. But certainly, they are doing the right thing. Thanks for that. Good to see you, dirk. And doimt dont forget the Deutsche Bank ceo will be speaking to cnbc as soon as the press conference includeds in frankfurt. Turkeys central bank has built a series of lending rates. The lira rates were lifted sharply higher. Michelle has moved over to istanbul to join us for more. Michelle, good to see you. Raised effectively the corridor. What does that mean in terms of effective policy tightening on the interbank rate and i wonder how this government are feeling about it . Well, basically, all Interest Rates went up, right . The policy regime here is what you would call unorthodox and within central bank terminology, thats the kwif lend of saying, you know, your mother wears army boots. Its a confusing Monetary Policy scheme that they have here. They set four different Interest Rates. Bottom line, ross, all of the borrowing and lending rates went up sharply, anywhere from 400 basis points to more than 500 basis points. As you say, the stem the decline in the currency to try to keep foreign capital in the country. Offer them a more attractive investment based on what is perceived to be higher risks. The Prime Minister before he left for ran says he was against the rate hike. But now weve just seen with an exclusive on cnbc in turkey the finance minister getting on the air saying that this was good for the economy, they dont think this was necessarily going to hurt growth, but that it was important that the central bank was independent, that it stabilized the currency and that would be good for the economy. Weve spoken with several Business Owners this morning who said to us they import a lot, they export a lot. We dont care if its higher or lower, be just need it to be stable. Making purchasing decisions has been incredibly difficult because of the decline in the lira. Michelle, thanks for that. Joining us in the studio, jesse sherman. Good to see you. Thank you very much, ross. Are you surprised that the decisiveness . Just what investors wanted, right . Stop messing around, do something concisive . Yes, i would agree that it was unexpected. We clearly saw overnight the currency tightening by the 4 . I think its softening a little bit right now. But theres been a clear signal. I think as michelle just said, the central bank has had a very unorthodox policy. And this is bringing it much more into an orthodox system. That definitely underpins the market. And so what we expect is shortterm theres going to be a bit of a relief rally because valuations have become so discounted. But the other question here is with rates going up so high, what you are doing is on one hand controlling inflation, but the other side of it is growth is going to be impacted. When we entered the year, the expectation was about 4 growth noup were probably looking at 2 , the. 5 . They still have a large current account deficit, an external debt burden limited to foerp exchange reserve coverage. What does the government have to do to back up what the central bank has done . Well, i think what has been happening for the last two months, youve seen this in the currency and the markets, there has been a crisis of confidence. This is the first signal that the cet does have independence and it gives us a signal of institutions in turkey have independence. But clearly when youre looking at the market, you have to look at it in the medium term. Theres a lot of volatility in the market. What we need to do is we are in an election cycle. March is going to be a very important time period. Our expectation is despite the near term kind of support, theyre still going it is interesting, we got this action just hours before they announced it. So thats pleasing . Because if you want to know that the institutions can stand up and be counted, thats one way of doing it. Some people would argue that maybe the he said it on purpose. Yes. It was staged to give them credibility. That being said, it is a true signal and it is a big shift in policy. You know, this cbt has actually been in this very unorthodox policy for a very long time. And even last week we saw a small move in the corridor. They were clearly small steps, not enough to stem the tide. I think this will start a signal. We hit the 239 was the record low on the lira against the dollar. We hit, what, 218. The important thing is how this announcement has rippled out. Why do you think that is . I think theres been a crisis of currencies, and this has been one of the leading lights, especially in the context where countries with large current account deficits with funding shortfalls, this has been the leading light. So to see this come through and to see such a strong policy move by a central bank, you know, i think sends a signal that we might start to see that ner on countries. We will wait to see what happens with this. Thanks so much. Justin king, the ceo of sainsbury, is stepping down. He is going to be replaced by mike coop, currently the commercial director. Sixuan has the latest on asian markets for us today. Thank you, ross. Gold markets responded to the turkish Central Banks massive rate hikes, lifting asian bourses up, as well. The nikkei 225 snapped a fourday losing streak posting its biggest daily jump since october. In china, the shanghai composite gained 0. 5 today. And the hang seng index in hong kong rebounded nearly 1 from its fivemonth lows. But a luke warm for hong kong electrics ipo ending down by 2 , despite shares being priced athe lower end of this range. Australia gained 1 after bargain hunting. Shares of advantest fell 4. 4 after the company slashed its guidance. An lenovo revealed the plan to buy ibm, this Chinese Business giant has decided to restructure its operations. Creating an enterprise product and one for software and Cloud Services division been shares jumped almost 5 nearing a 14year high. Mulberry, heavy discounting have led to a deteriorating environment. Now, antofagasta reported a surprise jump in full year copper production, which includes a 4. 3 jump in the Fourth Quarter. The firm confirmed the record performance of banks with strong shoers across its operations. Novart novartis, up 0. 6 . It expects competition for its Blood Pressure pill diavan to kick in in the second quarter. Reporting a 2 jump in sales in the fourth. He said the firm would not change its emerging Market Strategy, despite currently fluctuati fluctuations. There are definite currency headwinds. And you can see from our Fourth Quarter results in terms of the Constant Currency relates versus the actual reported u. S. Dollar results that we did take a currency hit. But at the same time, we have to think about this in the longterm. Were in the business of discovering and developing new and innovative medicines and helping those emerging markets improve the health of their populations. So there is going to be currency fluctuation. But this is something were going to live through. If we pull back in those markets and try to get back when currency goes the other way, its just not going to work. We have to have a consistent strategy and continue to drive our business in those emerging markets. And in the u. S. , yahoo s Fourth Quarter earnings beat forecasts. Revenue fell 1. 7 excludeing fees from parter ins to webb traffic. Its the fourth straight quarterly decline in revenue. Display ad revenue fell more than 5 . Also a concern, alibabas revenue is slowing. Ma ris is sa mayer says shell become more involved in growing sales. She says the recent decision to oust the coo was regrettable, but had to be done. She says his position will not be filled. Its actually trying to tick slightly higher. At t has swung to Fourth Quarter profits. The firm has added more wireless subscribers and benefited from a big tax gain. But the Free Cash Flow target fell short of estimates. The cfo says the u. S. Buying scandal is hurting business, regardless of any effects it may have on oversees prospects. At t is down 2 in the states, off around 0. 6 in frankfurt. And ea is cutting its outlook as new video game sales are hurting games for older devices. Ea says its been surprised by how quickly demand has dropped for games made for the xbox 360 and play station 3. Staers down 2. 5 after hours. Also in the united states, president obama is vowing to act alone on measures to help u. S. Economy. In his fifth state of the Union Address, the president stressed hell no longer be content to wait for congressional approval after a year mostly marked by inaction on capitol hill. Hes challenging lawmaker toes Work Together on large scale initiatives by boosting the minimum wage and increasing a new Retirement Savings program called myra. The president outlines several ways in which he intends to use executive power toes bypass congress altogether. The cold, hard fact is that even in the midst of recovery, too Many Americans are working more than ever just to get by. Let alone to get ahead. And too many still arent working at all. What i offer tonight is a set of concrete, practical proposals to speed up growth, strengthen the middle class and build new ladders of opportunity into the middle class. As president vows, income inequality wants to hear from you. Is a higher men mum wage the answer . Join the conversation here. Get in touch with us. Worldwide krn worldwide cnbc. Com, cnbcwex or direct to me rosswestgate. Still to come, canan has falling camera sales in 2013 as it try toes focus on European Equity markets this year. Well cross to tokyo after the break. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. The headlines from around the globe, turkey sparks a global rally, surprising investors with a huge rate hyme hike to stem its currency. Basic resources are the best performance sector. Deutsche Bank Warnings of ongoing challenges this year. This raises further litigation costs, although it has reaffirmed 2015 targets. Sainsbury shares dropped, the retailers announced the surprise departure of ceo justin king after its decade at the helm. Hes leaving on july 9th. President obama seeks to jump start his agenda. He told congress in the state of the Union Address that he would like to work with lawmakers, bull ego around them if he has to get things done. America does not stand still and neither will i. So wherever and whenever, i can take steps without legislation to expand opportunity for more american families, thats what im going to do. European equities are bouncing up today. We did climb 211 points yesterday. About 0. 6 for the german and french markets. The ftse mib up just under 1 . The bond markets, a little high. Treasury yields, 2. 77 . Further away from that twomonth low 2. 706 with which we started the week. And on the currency markets, dollar yen s has bounced off the low of 101. 77. Were back to 103, just about. And euro dollar steady at 1. 3676. Sterling dollar not far away from its 2 1 2 year high, just bel