Is going to move back up to the 60 to 80 range then certainly Second Generation ethenol will continue to move and i see investments coming into that area. A different story for s. A. P. After slashing its Profit Guidance for 2017 due to trouble with its cloud transition but the ceo tells cnbc that revenues are on a steady path. What i wanted to model for the investors is show them that the core is still going to grow. That cloud will grow even faster and the Business Model makes its full transition will you have more predictable revenues after 2017. Now our attention turns to Morgan Stanley. Earnings taking center stage in the u. S. After the Holiday Weekend with investors honing in on fixed income and the banks commodities business. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. And to our top story, chinas Fourth Quarter gdp held at 7. 3 growth year over year. While the reading wasnt lined with Third Quarter growth missed the official target for the First Time Since 1998. A good break down on what weve seen in terms of growth in china over the last couple of quarters. Eunice is live with the latest. Interesting to see this number of course missed estimates excuse me Beat Estimates but still nothing to get too excited about. This is the worst expansion in growth in 24 years for china. Thats right. A lot of people were focussing on that gdp number for the year. It came in at 7. 4 . That was more or less in line with the governments target of about 7. 5 but its the slowest growth the country has seen since 1990 . We have the weakness in the housing sector and also the soaring debt. Not only that but some of the overcapacity in several different industries. Those issues are likely to plague the economy for the coming years and, in fact the imf was the latest voice to weigh in saying that theyre concerned about a multiyear slow down. They downgraded their forecast to 6. 8 from 7. 1 and for 2016 they see the economy slowing down to 6. 3 . Now the report card today really intensified the debate over what beijing should do and what beijing will do. There were several reports of brokerages coming out saying that the economy needed a boost. That the beijing policy makers would have to come in with some level of stimulus however the imf said the main reason for the downgrade is because they believe that the authorities were willing to now make sacrifices to shortterm growth in order to reach the longer term goal of pushing through reforms and rebalancing the economy. So they say that they believe that beijings policy makers are going to take a more careful approach when it comes to policy. Well be watching. Thank you so much. Lets talk more about the china story. Is it a good Investment Opportunity with Stewart Richardson partner at rmg wealth management. Thank you for joining me in studio. Interesting data. China growing at 7. 4 . Slowest since 1990. Does that confirm that the central bank will step in and do more to stimulate the chinese economy in 2015 . We have been hearing stories for several quarters and they have been nudging around the sidelines. But its clearly a match process. Imf is right in terms of the direction. Growth will be coming down and theyre right to point out we cant go back to the old ways of printing money and Infrastructure Investment and so on. There has to be a real balancing of the economy. As well as the structural concerns highlighted by a reporter we have the chinese currency being one of the strongest currencies in the last 12 months so from a trade point of view china is struggling. Without the domestic consumption pick up there will be very little growth compare to history and demographically china is seeing a peak in the working population. So i think the overall picture for china is very difficult and they cant go back to the old way which is is taking on debt to build infrastructure and so on. It could be a bumpy road ahead for the chinese economy. A lot of concerns when you look through the data around the gdp report that came out this morning. What does this mean for chinese stocks . China was the best performing emerging market in 2014. Does the rally continue because were betting on former Central Bank Intervention or can this rally be derailed . I think you hit the nail on the head. People betting on chinese equities are betting on support from the chinese bank. That may well workout but the problem was youre seeing a slowing economy. A slowing global economy. That too. So you havent gotten the fundamental support behind aggressively rising asset prices. Who knows what they will do . Theyll stimulate less than the bullish people expect. So i expect them to at least slow down and not stall out. I wouldnt be chasing them at the current price. At the end of the day should markets be moving on central bank policies. Should fundamentals move and drive the market higher or lower. Certainly the last five or six years Central Banks trying to intervene to influence asset prices and china hasnt been immune to that and that narrative begins to be challenged after switzerlands move last week. You believe you put on trades and have the backing of the central bank behind you. Thats going to be as we know quite a big loss. Theyll be questioning other trades which i have on purely with the support of a central bank so this is a new chapter where support from Central Banks are the seoul reason or main reason to invest in certain assets. Putting more on the poc and ecb might be announcing further stimulus announcements on thursday. Were following all angles of this story on cnbc. Com so be sure to log in online. Is the era of 7 growth over for china . Economists are now suggesting investors get more familiar with the number 6. Find out why on our website. Plus after markets stabilize following mondays plunge find out why analysts say its not time to bargain hunt just yet. Also want to get you headlines coming out of sweden. Sweden cut its 2015 gdp forecast to 2. 4 from 3 . Cutting its 2016 forecast to 2. 7 from 3. 2 . The recovery around the world going slowly which means slow recovery for the swedish economy. We have been tracking all parts of the Economic Growth path for europe and heres one of the economies that have been hit. See how the swedish krone is trading against the u. S. Dollar. Down 13 against the u. S. Dollar. After sizable gains in europe on monday lets look at how stocks are trading in europe. Were in the green once again. It did close at a 7 year high and continues to move to the upside. Gains around. 6 . What mario draghi will unveil in terms of the Bond Buying Program and how much will be put in place in terms of how much money will be put in place in terms of bond buying and especially which countries bonds will be bought. That will be a big catalyst. The other factor to put all of this into perspective will be the german sentiment data coming out in the next hour. Driving into that were looking at europes largest economy. Germany up about 40 points in todays trade. The cac 40 up 30 points. Interestingly enough the swiss index another day of green. The second day of this rebound in swiss equities continue after last weeks move to the down side when the snb made that unexpected policy reversal. Seeing a gain of around 1 . What does this mean for currencies which has been the story ahead of the ecb meeting on thursday . We did look at the euro hit an 11 year low, 11459 versus the dollar. Plunging from its high it hit in may of 2014. Got you that stat. Lets look at how the euro is trading right now. Its weakening trading at 1. 1578. That could change depending on how strong the survey number comes out in the next hour. Commodities a big part of the story has been the significant decline in the price of oil. What does that mean for equities . Specifically the Energy Sector which continues to weigh on stocks over the past couple of weeks. Were down once again. A lot of that has to do with whats happening in china. Crude trading at 3714. Brent crude also below 49 barrel down about 9. Keep in mind last week wti crew did settle near the highs managing to halt seven weeks of consecutive losses but it doesnt seem like the losses are over just yet. You can see we are lower across the board when looking at the Commodity Index and interestingly enough spot gold seeing a little bit of a green right now or bright spot up about 1 after losing in yesterdays trade. Bonds where were seeing the action but of course you have been seeing the flight to safety ahead of the ecb meeting driving bond yields slower specifically when looking at the 10 year german bond. Sri is live for us. Take it away. Thank you for that. Most of the major markets in our region in rally mode. Eunice was talking about the gdp data out of china. The markets over here taking it in their stride and front running and building the case of further policy accommodation by the authorities in beijing over the course of the year but the emphasis is going to be on a very graduated fine tuning. No bold moves here given the fact that they don want to create asset bubbles. The nikkei 225 is the one to watch this week. Ill add to the alphabet soup and give you the boj tomorrow. Very interesting commentary. Cheap oil creates a challenge for inflation targets. So it raises the questions in the minds of many. Are we going to see further policy initiatives and the boj easing further to counter cheap oil or are they going to end up tinkering with their inflation target . Just ahead of this very interesting developments in japans Government Bond market. Weve seen record highs for prices and the five year rate in the negative zone for the first time so perhaps the bond market is pricing in some further action by the bank of japan tomorrow. Theres also a lot of foreign interest in the japanese bond market as well. So all in all a fairly positive session. Most of the major markets in rally mode but id say a degree of caution ahead of the boj and the ecb in your neck of the woods. Back to you. Thank you for that update from asia. Coming up on Worldwide Exchange president obama heads to capitol hill for the state of the Union Address. Will the big speech set the stage for a two year fight with republicans . Plus twitter snapping up zip dial. Is this a sign for more acquisitions to come for the struggling social media giant . And we get a check on the face of the growth. We get that at the top of the next hour. Right now youre gonna ask for my credit card so you can charge me on the down low two weeks later look, credit karma are you talking to websites again . This website says free credit scores. Oh. Credit karma yeah, its really free. Look, you dont even have to put in your credit card information. What . credit karma. Really free credit scores. Really. Free. Credit karma, i love you . Welcome back to Worldwide Exchange. Lets get you up to date on some of the big stock movers in todays session. Shares trading at an all time high after Fourth Quarter net profit beat analysts estimates. The leader raised its 2014 dividend and said they expected good underlying sales growth and high profitability in 2017. Speaking earlier on squawk box europe the ceo discussed the impact on Lower Oil Prices on the bio fuel market. If you assume like a lot of people do that the oil price is going to move back up to the 60 to 80 range then Second Generation ethenol will continue to move and i see investments coming into that area. Now on the flip side take a look at uniever sales lower after missed expectations growth was hit by weak demand from emerging markets including a 20 sales decline in china. They dont see a significant improvements in the markets this year and also trading lower in the red despite a robust Fourth Quarter. They continue to boost its market share despite a route in prices. Lastly look at s. A. P. Cutting the 2017 guidance for operating profit. The German Software group says its expansion into the cloud will reduce profits into the shortterm but the ceo told cnbc earlier his business is evolving and he expects improvement in two years time. What i wanted to model for investors is to show them the core is still going to grow and the cloud will grow faster and the Business Model makes its full transition where you have more routable and predictable revenues after 2017. Still with me to discuss earnings and what to expect is Stewart Richardson partner at rmg wealth management. This is the second big week for earnings in the u. S. The focus will be not so much on financials but we have to gauge the consumer with mcdonalds, ge honeywell and netflix reporting. U. S. Earnings season sets the tone for the whole Global Equity market and first of all i think the market is still trying to catch up with the lower s p profile. But it was one of the bigger head winds for the global exposed hedges. So were looking for earnings to be relatively disappointing. Of course for some consumer sectors, especially domestically they may be okay. You begin to see consumers away from gas and toward other consumer goods you could see some particular sectors do well. So you dont have a strong forecast i guess i should say for earnings season this quarter despite the acceleration in the u. S. Economy, 3 gdp and a pick up in retail sales that confirm the u. S. Recovery is here. The u. S. Q3 was 5 . That will be revised down. Estimates will start coming down for the u. S. The u. S. Cannot be an island of serenity when you have the rest of the world in economic malaise. Were expecting the global head winds to begin to impact the growth picture looking forward. When you look at the Energy Sector the consumer probably benefits from that but they were seeing big job cuts and cutting back and so on so its not a very easy situation in terms of who wins and who loses but the overall impact. So we expect u. S. Growth actually we think trend growth is 2, 2. 5 we expect Earnings Growth expectations to be cut for 2015 as a whole. Thats not been factored in. When looking at the Energy Sector analysts brought their expectations down a lot. Do you think that provides an opportunity to outperform expectations this season . I think we do. Maybe the quarter after as expectations come down they just overshoot for the shortterm. Oil price versus more than halved in value and i think the market has been keen short oil, short Energy Sector. He was last week telling squawk box u. S. Hes joining oil. Its become a popular trade. Also within the market were beginning to to see it hunting out of short positions or popular trades so we could see some short squeeze on those trades. Oil might be moving back toward 60 for the trade. Back to eight years but you could see a shortterm bounce which could see energy out perform for a short period. It was the worst performing sector down about 5 . We want to get you a check on which companies will be reporting. U. S. Investors get back to work with a busy day of earnings on the agenda. Morgan stanley reports ahead of the open. Johnson johnson also in focus. After the bell we get results from ibm and netflix. A lot of focus also on the fed. The fed is still on track to raise shortterm rates later this year even as longterm rates are falling. Lower Consumer Price inflation also will be the focus. The wall street journal says the fed is likely to repeat. They can be patient about rate hikes at their meeting next week. Fed fund futures are pricing in a more than 50 chance of a rate hike in october. The imf is calling on governments and Central Banks to step up reforms and support growth as it cuts the outlook for 2015. Lower oil prices and the depreciation of the euro and the yen will help boost the economy but says these benefits are more than outweighed by risks including euro zone stagnation and chinas slow down. Stewart youre still with us. That stagnation in the euro zone, some of that might be cured, i guess i could say, given ecb and what theyre expected to unveil on thursday. That Bond Buying Program. Everyone wants to believe the narrative that qe is good for the economy and so on. Frankly were 10 trillion of qe in the last years from global Central Banks. And were still having the debate about wheres the growth. Were seeing the imf cut their forecast. Were not even have the debate about the longer term consequences of this policies and what are the costs to them and so on. It may have a marginally positive effect for a quarter or two or three. Will it solve the longer term head winds . No it wont. We have a declining population in germany, greece stagnant populations elsewhere. Lack of productive and cap x and investment. Theres serious issues not even talking about the debt that europe is facing. And a little bit of qe here and negative eights there isnt cutting the mustard in terms of the real economy. I guess it helps a little bit. Weve seen this with japan for two decades. Monetary policy can become very ineffective and when theres no physical offset. Thats a big scare that europe will enter this japanese style deflationary trap. Its now the japanese trap. Dipped into negative territory the First Time Since 200. The question is will it continue to see prolonged proration of lower Consumer Prices . What happened with japan, we had a burst bubble with them and a demographic problem where the population is declining and an aging society and increasingly problematic debt pile. This is leading