And the Tropical Island of puerto rico cuts the debt to junk status and warnings of more downgrades. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. And a warm welcome to today. Youre wearing green, very appropriate. Exactly. The final pmis out of the eurozone, january final services bmi, 51. 6. It was the flash, 51. 9. So it has come down slightly. New business pmi, 51. 8, the flash is 50. 1, and the final composite, 52. 9. A little weaker than the flash of i was trying to pull up the french number, as well. The composite employment pmi in line, as well, on that one is worth pointing out, as well. So its the high final reading since june 2011. It separates expansion from contraction. A little weaker than the flash number. But an encouraging start to the year, so says Chris Williamson in for market who was in on monday. Well get the visit breakdowns on that. Im very interested in the french number in particular. Hang on. 47. 8. January services pmi, 49. 4, stronger than the forecast, as well. So the french number, encouragingly a little better than we might have thought. Euro dollar, 135. 14. Now, plenty to get through on todays show. And gente suffers from a drop in profit. Well hear from the ceo a little later and hair how hes dealing with markets like brazil. And nadella will get nearly double the salary of his predecessor, steve balmer. Is he worth it . More on that, coming up. Just over an hour and 20 minutes into the doppler radaring day here in europe. Advancers outpacing decliners at the moment around 6 3 the. 3 2, in other words, and matching julias dress. Im not allowed to touch the wall, but i just did. They dont like it for some reason. The head of our Technical Development gets very upset. The ftse 100 is up 16 points at the moment. It was down some 16 points yesterday, so flat over the last two sessions. The xetra dax is flat. As is the cac 40 and the ftse mib up 0. 5 . Yields, 2. 58 later on mondays session. Well move this on for you, it will magically appear here. We have nudged up from those threemonth lows on the yield. As have tenyear bund yields, as well. Oi ats, 2. 655. Very Important Services pmi number coming out in the uk in around about 30 memberships time. Of course well keep our eyes on sterling as a result. 1. 6310. Slightly weaker today. Aussie dollar, a big bounce yesterday after the rba came in and look and said were getting rid of our easing. 86. 60 was our 3 1 2 low. Currently 0. 8903. Dollar yen, 101. 26. And euro dollar, 1. 3512, not far away from the twomonth lows that we hit on monday. What about whats happened in asia and in tokyo after that big selloff previously . Adam is with us out of singapore. Hi, adam. Good morning, ross. We saw a rebound here today as we saw markets pretty much normalize after the previous day. We actually really did see a volatile trading session for the equity markets here in japan with the major benchmark, the nikkei 225 meandering out of positive and negative territory. And if you overlayed a dollar yen rate versus with the nikkei 225, it was pretty much a move that mirrored or moved within the shadows of the currency. In the meantime, theres a lot of caution in the equity markets up in japan. Were a long, long way off for making up for that huge beating we saw at the beginning of the week with the index climbing back up. Many of the technical analysts suggest that the 200day moving resistance is providing a significant resistance to the equity market. That stands about 14,425. So we did see the dollar yen bounce back at already the euro yen. However, in the course of the trading day in asia, weve seen those gains unwiped. Were almost back to where you just put it at the 101. 20 plus levels for dollar yen. Notwithstanding that pullback, we saw a very strong session up for japan. The showstopper had to be panasonic. Up at one stage, almost 18 plus percent as it unveiled its ninemonth numbers, back to the black, first time in three years. Very strong showing, up about 20 profits to about 700 million u. S. Dollars. Sony in focus on media reports suggesting that the company, according to people familiar with the matter, may be looking at selling off its pc business and could reap in about 40 billion to 50 billion yen, the company obviously not confirming those reports, but thursday sony will be coming out with october to December Numbers. Many expectations, including that of bank of America Merrill lynch that they could potentially reduce their full year estimates for the second time in as many months, as many as three months. In the meantime, a number of corporates coming out with profits today in japan after the market closes. So you want to watch out for the orders, particularly mazda and mitsubishi and fantastic numbers, just like toyota, which was a stellar performer in terms of Market Reaction today. Their numbers moving up five bold in terms of net profits, mazda like toyota hiking their full year forecast for net profits and also operating profit on the back of the weaker yen. The operating profit numbers have been tremendous, obviously, because of the weakness in the japanese yen and the october to december quarter. The dollar yen was standing at about 100 to the u. S. Dollar. As you well know, they have fallen a lot more since then, down to about 105 levels, ross. But weve come back from the 105 levels. So long as abenomics is going to work, japanese will want to see a weaker yen and those outlooks rather rosy. Adam, thanks for that, joining us from tokyo. British retailer top shop is betting even bigger on the u. S. The fashion chain has unveiled plans to unveil five new stores. Youre a better person than helia to brush us up with that. Yeah. Actually, its a massive expansion and its a huge stop on fifth avenue. Its 40,000 square foot. Thats huge. Its all about phillip Greens International expansion. No ego. No, why would i say that . Topslop, a really profitable nd of arcadia. In the last few years, hes been pushing forward in the u. S. , especially after the 2012 deal with leonard green, who bought 25 of arcadia. Hes in a good mood, isnt he . Hes in a very good mood and i caught up with him yesterday asking about this expansion plan. Well, i think its sort of you know, this store, fifth avenue, probably one of the most relevant streets in the world as far as retail, tourists, local people. Its our second biggest store after this store. So pretty key in terms of building our u. S. Business. How is the tie up with nordstrom going . Are you still in business there . Were in discussions to grow there. I think we can do business in a way inside the Department Store and our Flagship Stores will be different. Different piece of business. And what about other brands alongside topshop, will there be rooms for things like wallace and Dorothy Perkins . Its not on our radar at the moment. And theres been some talk of a deal with macys. Is that o cards inspect. I think there are discussions going on from time to time with different brands to see what we can do. I think those are ongoing and if something comes to fruition, well do it. You said your u. S. Expansion is going to deliver you 1 billion in sales in the near term. Is that realistic . No, not this year. These five stores are opening over i think 15 months and hopefully we grow our online business. I think we have a bit of a way to go. You said one of your regrets wasnt moving into emerging markets fast enough. Youre now in honk hong kong trying to recreate the success of h m. Has a recent slowdown in those markets and concerns about emerging market currencies, does that worry you . Well, if it was a slowdown, why would we regret it . We would be happy. But are you still as enthusiastic as growing your business and i think the answer is were enthusiastic about going to market. We think weve got longterm Sustainable Growth, not doing anything crazy. And as those opportunities arise, you know, when were offered, well have a look at them. Were currently negotiating on a couple new stores in hong kong. It will take us to three. We continue having china dialogue. We just havent got there yet. No doubt we will. Youve achieved a lot already. Are you still ambitious . 40,000 feet on fifth avenue is not ambitious, is it . As well as very serious subjects like the emerging markets, i also asked phillip green about his recent meeting with kim kardashian. Last week, you were you had lunch with kim kardashian. Did i . Apparently. Apparently she flew into london just to see you. Not that i know. You did business with her and her sisters with Dorothy Perkins. Could there be an opportunity with the kardashians and top sddz shop going down forward . No. Definitely not . Who knows what the future holds, but that wasnt the purpose of our meeting. What was the purpose of your meeting . Do you have lunch . What did you eat . What did we eat . I cant even remember now. Some fish. He also had a go at the government over business rate taxes. Theyre paying lip service. He also went ahead and talked about internships, unpaid internships, hes been a big advocate. Obviously, top of my agenda was asking about his tieup with these women. He didnt know where to put himself, did he . He was shifty eyes and then smiling the whole time. Is he still working with kate moss . I think he not at the moment, but they obviously, they have a very successful tieup. And they had a tieup with the kardashian sisters with perk yips. He said nothing is on the line. But arcadia last year, the results that they had down by bhs and some of the other brand. Hopefully, topshop will be the flag ship in boosting those earnings. He was quite coy about emerging markets, wasnt he . He must be very relieved, right . Yep. Sometimes its better to be lucky than good. Sometimes. Not all that often. Like helia. Shes good and lucky. Moving on. Now, good thing youre not doing an interview today because commuters in london are facing chaos because of 48hour tube strikes protesting the closure of Ticket Offices on the underground. Were be outside a Central London underground station later in the show to check on all the people who arent there. So we want to know, who do you think has the best public transport infrastructure . Oh, yes, with who has the best Public Infrastructure and why . Please email us, worldwide cnbc. Com, tweet cnbcwex or direct to us rosswestgate or jchatterl jchatterleycnbc. Theres plenty of new cities, singapore, the Transit System in london, any of the big major capital cities. The gap between the train and the platform. You wouldnt know. Exactly. How would i know . Jules has no idea. Got my heels stuck. And when i tie my horse up, i dont really care, either. His chariot. Look, we want to know what you think. Still to come on the show, were going to be in basul. An 11 drop in his company for syngenta. Emerging market turmoil . Thats something new. Welcome back to worldwide exchange. Lets have a look at where markets are recapping right now. Were in the green. Completely unwinding the losses we saw in yesterdays session. The italian market adding to yesterdays gain between 0. 2 and 0. 7 in trading today. Joining us now, the chief Investment Officer of axis investment, johnny, good morning. Good morning. In your notes, you said youre still comfortable right now being long large caps, equities and property. Heading into futures and options right now is very cheap. Tell me what your net position is right now. I think weve had this ongoing debate as to whether the equity market has rolled over and is it time to consider the party over. On a longterm view, it will be difficult to replace the asset holdings. One could argue bonds have had a bit of a resurgence. Its been a spliet flight to qu. We dont view sovereign debt as having any longterm value. Irrespective for your forecast for long run inflation, i cant see any value of having longterm debt. As a third long run, third place in our portfolio, we probably have corporate bonds. How hedged are you at this moment . What is your risk profile looking like . Were probably majority hedge, id say probably at least 80 hedged at this point. We do vary it. We ran a few different variety of spreads. And we had the tenyear u. S. Treasury. Those are the authorities we use to endue late ourselves from unforeseen events. Youre accumulating out sectors. I like to do that. Which is the staple, the caps, the drillers. What kind of time horizon are you looking at there . We would be Comfortable Holding even medium term. So our universe is always a quality run business universe. We dont really do a dash for trash. Thats not the thing we tend to go for. The reason being is that the margin for error and the scope for disappointment with a company thats so highly valued or so niche, its too risky for us. E even with a huge amount of money, the expectations for a company thats so high and you have that with all companies with these hundreds of pes and peg ratios. Youll find the smallest amount of disappointment or the slightest bit of investor nervousness is going to result in a 5 to 10 growth. Do you have a view on acadia . Obviously, the pe multiple is rather different. I watched it. And i have mentally screened it out of my universe completely because so many years have gone by with no revenue that i can pretty much, you know, value. Its nice theyve done a deal with morrison. Morrison is a company we might see as having a bit of a selfhelp story. But ricardo, im not key. Were going to come back to that. Dont move a muscle. We want to get a quick earnings update. Swatch is trading at the top of the stoxx 600 after the watchmaker reported a 20 drop in profits for 2014. Shares in the swedish Banking Group seb jumped after the Company Posted a better than expected profit of 5 billion swedish crowns for the fourth quarter. The group says it will pay out four crown aes share for 2013, way above analyst expectations. Dont forget, at 10 40 cet, the qfo of seb will be speaking to cnbc about the companys results. A 6 fall in revenue for broker icap. The british banker activity is reducing activity and new regulations hurt the firm. Meanwhile, syngenta has announced it will step up its cost cutting exercises. Carolin is in basul and has been speaking to the ceo. This is an amazing market for turmoil yet he seemed to play it down. Not really. Syngenta has long been everyones darling, shares have done fairley well except for last year. So far, everyone has been banking on those markets. 20 of the revenues come from brazil. With the brazilian real falling steadily since last year, it creates a huge headache for the company. Part of that is also unhedged. So i spoke to the ceo this morning. Mike mag told me that despite those headwinds, hes fairley sanguine about those markets. 52 of our sales now in emerging market, it has what has powered the firms revenue up. Weve had exposure all along. Weve been here before with brazil, weve been here before with argentina. Weve got some hedges, sure, and thats cost us money. By and large, this is something weve seen before. Its not just emerging markets, but its the fact that commodities have come down drastically. Corn and wheat are trading at multi year lows. That gives farmers less incentive to invest in crop protection. The ceo says there is concern about that. There is plenty of concern out there. On that note, back over to you. Thanks, carolin. Thanks for sticking around. Shares in London Petroleum are trading down. They did return to profit in the last three months of the year. Joining us first on cnbc is ashley heppenstyle, the ceo of lundin petroleum. Thats the wrong still, but anyway, ashley is with us. Revenue, 282 million versus 246 million a year ago. Why has the revenue fallen . Basically, our revenue is pretty much in line with last year. Oil prices last year close to 115. This year were slightly below 110. Our production is down about 5 to 10 this year from last year. And what well see, that will double over the next year as we bring new projects on stream. As you produce more oil, whats happening on the cost side . What will happen to your margins . This field we found in norway has probably the lowest cost in the industry. This is the largest discovery made in the north sea since 1985. It will have cost curves in the bottom part of the lower quartile. Obviously, when uven 250 Million Barrels of oil brent based in the north sea clothe to infrastructure and a cost for barrel higher than what you would have seen still very low relative to our deep water and harsh environment projects. Ashley, theres been uncertainty still around the project, the cap ex, the production. Can you give us any further clarity on that and what were looking at over the next 12 months in particular . Yeah. Well, the front end engineering product has been awarded to acker. Ourselves and our partners are very much aligned and ready to move forward with that project. I think what we have said, there will be more details available when that announcement is made, but this field will produce at over 500,000 barrels a day when it reaches plateau. That will represent between a quarter and a third of all Norwegian Oil production. So its material not only for norway, but for ourselves. Its a very transitional time for the company to a full cycle ent business, and i guess that takes time for the value to be monetized. The stock fell over 32 last year. Is this a case of the shareholders needing to stick with you . Very much so. My opinion is that the future for the Company Looks fairley bright. Well double or projection. By 2015, well exit at 75,000 barrels of oil per day and that will probably double. I think that the International Independent enp sector has been badly hit as the u. S. Counterparts have done very well. The valuations for some of the other independents look quite compelling at the moment. From a business perspective, things are going extremely well. I think when we deliver on this is projects, then the market will take care of itself. Ashley, great to chat with you. Ashley heppenstall, ceo of lundin petroleum. Services pmi, 58. 3 in january, 58. 8 in december. There was an expectation it might actually kick up to 59. Thats the lowest since june. The expectations component, up to 74. 3 in january. Thats the