And the french government says it is honorable and they should get on to growth. Weve been having manufacturing pmi data out this morning from the likes of france, germany and italy all disappointing. 4 4 it was forecast at 50. 8 and its come in at 50. 6. So a little less than was expected. 50. 6 is that number. A fourmonth low with the manufacturing number and as far as the french numbers, too. Indeed. And that is contrasting to ireland. Slightly lower than the number did come in at 53. 8 marking 13 months of growth. The german number, as we touched on 50. 2 versus 49. 5. I suppose the interesting thing about this is its no longer that simple call strong call weak periphery. Theres a lot of divergence and it makes it hard to know what the right course of action is. I believe its really simple. Europe is struggling. There is no growth in europe. Its a very easy decision to make i think, snars qe is concerned in europe. Look at disinflation inflation, arguably, some of that is needed. Even though mario daggy said theyre ready to do that the issue he said was the government and physical policy as well. So the germans are going to continue their rhetoric saying you dont deserve quantitative easing until you start making difficult choices. Do you think very interesting, we were talking about italy earlier in squawk box and some of the reforms that theyve done. The new jobs act with matteo renzi. Were talking about a country that has one of the most explosive and public sectors in the world and hes reducing the amount of impact its going to make on his called revolutionary jobs act. I have to agree with you on that point. In december, new orders weakening. The number coming in through december 49. 4 from november which is 49. 1 but remains below the crucial 50 mark suggesting that we were still in a decline period at the moment. For the stoxx 600 as we stand is just off 0. 5 . Its weakened steadily throughout the day as the pmi data has. Mario draghi to see about the germans to qe. Well continue to watch that with baiteded breath. Lets take a look at whats coming up on the show today. For more details, obviously, i have no idea about that, of course. And its the new year yes. With our website, cnbc. Com where youll find 2014 and planned for the year with health and fitness. If you have any comments, you can email us, Worldwide Exchange cnbc. Com. Dont believe a word of what julia just said. Lets have a look in at the markets which are in the red. We kicked off in disappointing fashion. Last year he with kicked off in positive fashion. We were up slightly at the open. Were down 0. 45 and that has come, really as we just touched on. Some of the pmi data coming out, more disappointing than expected. Particularly france and italy. Although there were some positives, indeed including germany and ireland. But nonetheless, the markets in negative fashion, the stoxx europe 600 down 0. 4 . Germany off 1 . France off just under 1 . Italy down 0. 3 . Lets look at bond rates. The last three trading rates of 2014 did see a little bit more of the yields. Bond buying really off the back of the greek and a decline in the oil price despite concerns in libya. We saw yields just below the level at 2. 9 . Germany is at record lows again today. The uk is below that of the u. S. , even though both of those countries have the prospect of rates going up but nonetheless, we are lower in the uk than we are in the u. S. And italy and spain on the back end of the trading year both hit record lows on the tenyear in italy. Lets look at forex rates. The year of 2014 was one of Dollar Strength. The broader dollar index rose 12 over the course of the year. Thats the strongest year for the u. S. Dollar over the last nine years. Weve kicked off with Euro WeaknessDollar Strength. Down 0. 5 at 1. 2043. Weve got a bit of strength in the u. S. Dollar similar amounts against the yen at 1. 23. Aussie dollar is off 0. 5 . Sterling is at 1. 5522. The iranian Deputy Foreign minister has called on saudi arabia to intervene to help halt the price of oil prices. In an interview, they called saudi arabias lack of action its hurt numerous countries across the middle east. Neal, great to have you on the show. Happy new year. Happy new year to you. A strategic mistake . The iranians would say that wouldnt they . They want because theyre in the direct economic situation. However, for those of us that have been around the Oil Market Analysis game for a long time should harp back to 1986. Back then the oil price collapsed from 30 to 10 quickly. During 1986 saudi arabia and its colleagues successfully cut production to prop up the price. All that did was provide a path for the growth production at that time. Fast forward to 2014 we have weak demand opec faced with a dilemma. Weve got the u. S. Growing its production quickly. They have not put a floor under price giving the u. S. A free pass. Just giving away market share. Exactly. What about what we saw in the last couple of weeks of trading are concerned . We saw further weakness. Are we at the floor yet . No were not 37 i likened this to a bit like a bungee jump. The market has jumped off a cliff and it goes down and down and down. But were not clear that weve reached the bottom yet. In 0809, it was around 36, 37. On monday of this week the supply side started to get a little outlet. Where about will that floor come in where demand really kicks back . Point one, its guesswork. Point two, if you look at the underlying demand numbers for the first half of 2015 what the numbers show at the moment is they continue to be a fairley significant surplus of supply and demand. On the basis, that dynamic doesnt change then theres nowhere else for prices to go other than down. Four far down they can go frankly is guesswork. Who knows that the same thing could be repeated. As you considered in your question, the impacts of lower prices will, of time do a combination of two things. Number one, it should restrict the growth of product, particularly from the nonopec countries, and number two, it should encourage a faster way to demand growth. If both of those things happen in some combination, the market should find a balance and it should find a floor. Frankly, whether that floor is 50, 40, 30, im afraid nobody can tell you that with any degree of what about as we head into earnings season . Weve heard a lot from the oil majors in particular. Goldman sachs had a trillion dollars of risk right now. What are you looking at here and what are you expecting . Its a long life is cycle. These are very very longterm projects. The companies arent going to switch things off. Yes, theyre going to look at all their projects. They will run areaos that if the price stays at 50 60 40 whatever it is for a significant period of time then they go look to see if there are ways in which the projects can be made more efficient and most costeffective. Number two, if they think there isnt going to be sufficient price over the next day five years or so then dwre they will put projects on hold. But these are longterm projects. And in the longterm, for gas and goal Energy Demand is going to rise simply because of the population growth. And in time as Production Growth will start to peter out in countries or the geology doesnt allow for an increase in production and prices will start to rice again. But that may not be for five years or maybe ten years. And who is the biggest beneficiary of this . Well countries such as china and indonesia are if some are already taking advantage of lower prices which cost them a huge portion of the gdp. It is going to benefit any country which is importing oil in any form of large quantity. It is a massive wcht to those economies. The economies of the middle east, however, thats another master. Theyre usually dependent on oil for no mc. Theres a lot of speculation with regard to the king of saudi. There is al of speculation this could have some kind of impact as far as the saudis are concerned. It was interesting. Harkening back to 1986 in 1986 the saudis cut their production down to about 3 Million Barrels a day. The previously unassailable sheikh was sick. Fast forward to 2014. What the saudis are doing now is not the oil Ministry Working by itself. However, if for the sake of argument the price were to slide significantly lower than it is today and look like its going to stay there for some time there are other members of the royal family other interests that might desired that this is too much pain to take domestically even though they have significant reserves. And perhaps if there were to be a change dwb then perhaps the policy could change. But that is speculation at this stage. Speculating when oil prices are going to rise will be a crucial factor. Neal, great to have you on. Indeed. Just one final comment before we move on we just got a flash coming out Iraq Oil Exports reached 2. 76 Million Barrels per day, a record high the Oil Officials have say, the highest since 1980 coming from iraq. Impressive numbers, neal just quickly before you go. What wove seen consistently since 1991 is there has been no interruption to exports from iraq at all. And as long as the fields that produce the oil which goes to the Pipeline System flows uninterrupted and thats been the case for the last six months exports should continue to grow and indeed they go grow further. General motors closed out 2014 by issuing more recalls. The largest involves ignition switches which can affect engine power and air bags. Gm says no crashes have been reported. This affect 30 million cars worldwide. In frankfurt trade, it is up 1. 3 . A new 10 fall in december sales compared to the same next year. Elon musk has divorced his wife for the second time. This time the billionaire did not take to twitter to share the news. They later remarried in july 2013. He has great to give her 60 million in catch as part of the divorce. The couple say they remain friends. The hype over the wearable market apples watch could be a big slot according to one start up investor. And snapchat picked up close to 5 million in spending. Well find out what that means for the value of the social media app. Stay with us. Were back in two. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back to Worldwide Exchange. Germanys newspaper, draghi underlines that the ecb would be ready to act against those early in the new year. Qe was still on the cards. Eurozone inflation is currently at 0. 3 a far cry from the 2 pergs target. A lackluster performance in 2014 ending the year down just over 2. 7 . This despise an improved economic picture in the united kingdom. Prime minister David Cameron warned the year would remain uncertain. Andy did morning, happy new year to you. Good morning. Happy new year to you. The ftse 100 probably has the best Economic Outlook in the eurozone. Why was it the performance . When people look at the ftse 1 hunl been they assume if the uk is doing well the ftse 100 is doing well its all big pistons. They have to drive forward and they need to be working together. Its rarely fallen on all four systems. And you look at the ftse 100, youve got the miners traveling around the country this year all over christmas i found no evidence of mining activity. So that depends on whats happening around the world. Youve got telecommunications the drug sector and youve got the banks. Theyve done well with the activity. Then youve had the miners doing badly because of chinas slowdown. Its been very hard for the ftse to drive forward. Its up on the year and that is very much for a uk focused area. A lot of those have populations of countries growing. The social demand twice in the uk, and the price of the uk stocks particularly the ftse 100. And i mentioned it there because what you havent mentioned is particularly with regard to sterlings weakness. Its political uncertainty. Well, yes. I think no one really believes were going to have the time about doing his job. I think this is the most interesting general election that weve got. In the past it was pretty easy to see who was going to win. The dream coalition ticket, or is it going to be sort of the steel, as well. Uncertainty over labor. The businesses in the uk economy are doing well. The epic game on new years day. Epic in terms of german who are in the construction industry. And, you know its happening in that particular industry. That could be good news. We see one area of the economy and they cash theyre going to be splashing it around and thats going to start feeding through to the rest of the economy. We have to see some wage improvement, as well. Tesco, theyve got strategic plans coming out next week. What are your thoughts there . You know that is obviously the hardest job to turn that around. You wouldnt start from where you are, would you . And its just it is already cheap for tesco. Back in november she dragged me down there and you could buy booze at 50 a bottle. Prices are still quite low. The dynamics of the industry are such that its going to be a real challenge to drive that forward. Why have they suffered so badly . If we forget about the internal issues b, its not just that the discounters are cheaper, but is it form of their operations are going to suffer . I think so. If you become a Market Leader and any Wildlife Program you want to watch, the young cubs coming in and as soon as they start stepping out of line, theyre squawked or eaten. Rather than saying, you might be a danger jump on them then. They grow and get some traction just as jjb with let exports directs grow and consumed themselves. If you see an you better jump on it straightaway. If you look at the dividends, is it something to stay the heck away from . You know that boor guy has all these factors. A 3 billion pound bengz deaf sigz as well. Just very quickly, a one liner top picks as you head into 2015 . I would still say uk domestic but keep an eye on that currency. Its 155 against the dollar now. I think longterm, its a great win in 2015 with the currency what it is. Its going to be very beneficial to them. Achdy, great to have you on. International experts have joined the search for the crashed air asia jet black box. Analysts expect the pilot may have made an Emergency Water landing before being overcome by treacherous seas. The Operations Director of indonesias search and rescue agency told reporters that there is evidence theyre getting closer to finding the flight fuse language. Chinas government is being criticized after 36 people were killed in shanghai on new years eve. The government took responsibility for what it described as a lack of vigilance and sloppiness. Theyre questioning why thousands of people flocked to shanghais water front to celebrate the new year and there werent more people on duty. A diplomate has been fired in president xi jinpings organization. The diplomate has not been charged. We have to take a quick break. Still to come, the italian president says he will step down down. We ask what it will mean when we return. Stay with us. Mario draghi says the ecb is at greater risk of not its mandate as he and the Government Council stand ready to act early this year. French italian and spanish manufacturing data split sending European Markets into negative territory. Theyve recovered from a 17month low. General motors forced to recall another 83,000 suvs and pickup trucks due to more problems with ignition switches. The french government talk about growth. We have just had uk december manufacturing pmi, which has come in at 52. 5. It had been forecast at 53. 9 so it has come in below expectations. Kweef seem sterling fall against the back of that. Down 0. 3 on the day. So that comes in as i said at 52. 5. The november reading has been at 53. 3. Weve got more coming out on lending, the lending data has gone up. Plus the mortgage approvals have gone down. Consumer lending, beat economists and an annualized rate to december. A significant boost in consumer lending. Did fall and had been expected to fall a bit more. It came in at 59,029 in november down from 59,511 in october. So that is the lowest level since june 2013. We did see gains this morning, now turned to lows. The ftse 100 down 0. 7 . The german markets relatively flat. Italy weaker today. The most level in 19 months. Lets have a look at bonds, as well. The last three or four trading sessions have been risk off ones. Mainly in europe bond buying but the correlation of global bond markets have continued in the u. S. As well. Germany is at 0. 5 . Italy now means that the spread between well sorry. And spanish yields as well which arent on there. But the spread between spanish and german tenyear are below basis points for the first time. Italy is pushing lower and also narrower. Euro dollar this morning trading at 1. 14. Weve gone through that june 2010 low. Taking out the low, its 1. 20 who. Over in germany, suggesting there is more risk now than six months ago of not meeting their price stability and that qe remains on the table. A quick check on dollar yen. The Dollar Strength in the trading session today. Economists Thomas Picketty has refused ets it shouldnt be the governments will to decide who is honorable and they should focus on reviving france and europes economy snet. The book made the amazon best sellers list having sold more than 11 million copies. Louisa spoke to the author about his predictions for inee quality. We give to a regime of below growth which, naturally, we stand to return to its situation which we had prior to world war i where the rate of return to capital tends to be and the growth rate of the economy. And this time to push throughout a large concentration of wealth. This means the large share was going to the middle class and, you know i think this is a concern for many people right now. A lot of arguments, were seeing it all over the place. Hasnt this always been the case,