Good morning. Welcome to Worldwide Exchange. Im sara eisen. Im wilfred frost. Good morning to you from me. Its throwback thursday. Were throwing it back with a super bowl theme between some of the best half time show performances in history. Have you ever seen a half time show . I have. On tv. Do you watch the super bowl in the uk . People do but you have to stay up late to watch it. Its the highlighted of the game for nonfootball fans. First the half time show, then the ads. Which also trend widely. I have seen some of them, but not all of them. You will tell me which ones . Coming up. I dont remember a lot of them. Beyonce was a highlighted. Gaga this year. Congratulations to beyonce. Yes. Pregnant with twins. Well lead with that instead of the markets. Nice to mention it. We will move on to the markets because i dont have much else to say other than warm congratulations. Lets check in on the markets. They are lower. 72 points on the dow. The s p down by 8 points. Nasdaq down by 23 points. We did see fractional gapes for u. S. Markets yesterday. Very high volume as well, which is no surprise given the amount of information coming out, whether its politics, Company Earnings or the fed. And that slight positive tone was flattened by reports by apple. Main take away from the fed was that the market expectation of three hikes as opposed to two slipped slightly, but no clear conviction outside of that. Tenyear treasury note, didnt move much. Thats partly why i say that, nor did the dollar move much. 2. 46 at the moment. Weve been around that sort of 2. 45 to 2. 5 level for the last couple of weeks. They didnt send strong signals about whether the next hike will come in march. Theyve just sort of in wait and see mode, which is this feds default position. Jpmorgan said 20th and c street, the most boring address in washington. Thats the address of the federal reserve. Paul donovan writing this type of release is not long enough to answer the questions we got which is so focused on fiscal policy and politics. Thats the swing factor for the fed. A simple statement, they dodged the bullet in terms of what they think about politics. Its hard to know. Not a groundbreaking change in opinion from investors. Because theyre waiting to see whether there is a real change. This is a market mover. Facebook, the company reporting Quarterly Results that topped estimates. The results were bolstered by a 51 increase in overall revenue. 53 in ad revenue. Well break down the results with facebook follower in just a moment. The metrics continued to blow away expectations. The key, that Revenue Growth number high double digits. And Monthly Average users, 1. 86 billion, 17 increase from last year. People focus on the numbers, and worth mentioning that the share price jumped significantly when they came out is now slightly negative ahead of the open. Well dive down into the explanations of why investors have changed their tune over the last 12 hours. Breaking economic data, eurozone ppi rising 0. 7 on the month, 1. 6 on the year. Both numbers hotter than forecast. Uk construction pmi dropped sharply in january. Mark carney will be a great person to draw all of the late of the uk data together and give his forecast for the year. 7 00 a. M. Eastern time is the bank of england decision. The press conference comes later. No expectation for a change or any change in Interest Rates at the moment. The latest qe package expired yesterday, and not expected to bring on another new one. European markets today, slightly negative. Quite a lot to of owni inearnin coming out. Lots of banks reporting. Some moving sharply the other way. Earnings in europe picking up the pace this week, having a diver divergent performance. Volvo was good yesterday, siemens was good. Consumer confidence in japan increasing to a 3 1 2 year high. The nikkei down 1. 2 following in the footsteps there of the dollar yen. Hong kong closing lower a half percent. China remains closed for the Lunar New Year holiday. Australia and new zealand down a bit lower. Australia down a little bit after extraordinary comments from Malcolm Turnbull and President Trump. As for the broader markets, oil prices, lets look at that this morning, jumping a half percent. 54. 2. Moving on to the dollar, which did move a bit yesterday. Up around 0. 1 following the fed. As i said earlier, not a huge change in sentiment following those minutes. We have had three negative weeks in a row for the dollar and were lower again this morning. Could be set for a fourth negative week in a row for the u. S. Dollar. The big mover today is against the yen as sara said. That hurt the nikkeis performance today. The y yesterdays clear vote in parliament that mps are carrying out the will of the people and invoking article 50. That sense of clarity that the government will have a strong negotiating position and not be ham strung by its own mps allowed the pound to rally yesterday adding 0. 3 today. Gold to round things off, flat yesterday. Up about three quarters of a percent today. Gained in the last half hour. Now up 1. 3 . 1. 244. The white house putting iran on notice an apparent threat in retaliation for Ballistic Missile tests. The launch went against u. S. Security council resolutions. Flynn pointed to President Trumps disapproval of the Obama Administrations agreements with iran calling them weak and ineffective. President obama inked a deal with iran to lighten sanctions in exchange for not developing weapons. An uncertain outlook between President Trump and angela merkel, very different than president obama and merkel. Thats the big surprising one across europe. Its an odd fight to pick. Why are you making a fight with an angela merkel. Theres the nato issue, but that can be solved easily. Given the warmth he has shown to theresa may, why is he favors them with brexit out there. Its causing a lot of consternation across europe. The other one, australia. Saying its a dumb deal that obama made taking refugees from mideastern countries that made their way to australia and suggest suggesting that would be torn up. Another key ally. These are not the countries he need to negotiate with. People fear is this really his point of view. Its not like with china and mexico, where a deal may need to be struck. The hardest part for all of this is what investors do with this. Clearly its a big change. Were not used to this kind of leaking of information and contentious relationships with key allies. The currency markets have been the forefront of where the geopolitical tensions have paid out. Harder to gauge the impact on the stock market, especially in the middle of earnings. Absolutely. The interesting one is the navarro comment did lead to a surge in the euro. That is something we have to take note of. If youre moving fx markets all of these factors get mixed in, and theyre moving, and they have an Economic Impact and theyre being used as political weapons already from this administration and from other countries. One man that might pick up the slack of some of these International Negotiations can rex tillerson. He was sworn in as trumps secretary of state last night. It follows the closest confirmation vote in a half century. Speaking at the swearing n the president said it is time to bring a clear focus to foreign affairs. He also addressed the middle east. Though you inherit enormous challenges in the middle east and around the world, i do believe we can achieve peace and stability in these very, very troubled times. Wilfred just eluded to this, but lets tell you what happened. Were learning more about that contentious call between President Trump and the Prime Minister of australia. The conversation happened last weekend. Reports say trump told his australian counter part their conversation was the worst call of his talks with foreign leaders by far, before abruptly ending it. Trump blasted the australian Prime Minister over an agreement he made with the Obama Administration to allow about 1200 refugees into the u. S. Saying i dont want these people. He tweeted last night, do you believe it, the Obama Administration agreed to take in thousands of Illegal Immigrants from australia. Why . I will study this dumb deal. The starting point of this deal, australia had huge immigration issues itself. Seen as coming from a lot of middle east issues they didnt create. Thats why this deal was struck. Its a small number relative to how many australia has already taken in. A president strikes a deal with a country, thats meant to stand. The speed with which he apparently is willing to unwind it, as we said earlier, a key ally. Thats what i think is worrying people around the world. I would point out on the economic front and the trade relationship, usaustralia not o of our Major Trading partners, but the u. S. Is a big trading partner for australia, a bigger one is china. Anything that moves some of these countries closer to china, the u. S. Stepping out of tpp, leaving some say china to have more of a super regional trade deal. Australia moving closer to china. We have to watch these things. Trade deals and politics have geopolitical complications and vice versa. It may be harder for australia to move closer to china than the philippines or other countries. Reports surfacing about the president s phone conversation with his mexican counterpart. Trump said he was ready to send u. S. Troops to mexico to stop bad hombres down there. Mexico is denying that President Trump made that threat. To some corporate implications of the Trump Administrations policies. Politico reporting that the Iraqi Government is warning a pair of pending deals with General Electric could be at risk from President Trumps new travel ban. Ge already has Significant Interest in iraq and hundreds of employees in that government and the baghdad government was preparing to sign two more deals with the conglomerate. But the travel ban calls into question whether g ese and the. Could be reliable partners saying cooperation could be hurt by this new visa policy. Learning more about the corporate implications of some of these policies. Back to the top corporate story, that would be facebook Fourth Quarter earnings beating forecasts, revenue rising 51 . Mobile accounts for 84 of facebooks total ad revenue. That was 80 a year ago. 1. 86 billion average users, up 17 from a year ago. On the call, Mark Zuckerberg said he expects to ramp up hiring and spending this year as facebook invests in more video. Were looking for ways to grow the ecosystem of video content on facebook. We want people to think of face book as a place for interesting and relevant video content from professional creators as well as their friends. Were planning to do more in 2017. Yesterday we found out that a jury ordered facebooks Virtual Reality unit oculus and other defends to pay half a billion dollars to a video game publisher over allegations that facebook stole its technology. It is said that the company is considering options for an appeal, but the suit is not material to financials. Richard kramer joins us. What did you learn from the call . All the analysts were asking about metrics, how to measure where facebook wants to move the ball to video. Anything new out of that beyond those core numbers, which surprised and impressed to the upside again . Thank you very much for having me. I think the call was an endless series of repeated questions about video, which is still a very early phase for facebook. As wall street tends to move on to the next thing, somewhat ignored the fact that facebook grabbed 10 billion of incremental digital ad spend this year and had an unprecedented 52 margin. I think the question now is with 30 billion of cash, in which directions do they move . I think video is one part of what theyre doing. The 7 billion theyll spend in c capex for data centers is the first step on the road to building the video business that everyone is obsessing with. Sticking with the video point, making progress there. 10 billion of ad revenue, but some suggest this is at the moment the kind of low hanging fruit in that space. To take this meaningfully further over the next five years, they need to boost the quality of their content. Whats your view on that and how expensive that might become for facebook . It is a good question, though to say that a business doing 27 billion or 28 billion of sales is plucked, low hanging fruit is absurd. I would say there are a number of areas where they can grab further time spent by consumers in which to show them advertising. Our view is that they should look to make acquisitions, for example, spotify i think would be a great fit. Activision might be another one, because gaming and music along with video are the big buckets of time spent. The problem with video is youre competing not just with all the traditional studios and networks, but also with netflix, amazon and apple, all of whom stated the same aspiration to go and find the highest quality professional video content, and to capture that all important detention paid to video. The best news for facebook, yes, they had good earnings, might have been this. The cover of the new york post, the Beyonce Instagram post that she has twins. 7. 5 million likes. The update on monetization of instagram especially as we look ahead nearterm to the snapchat ipo and what instagram has been doing to compete on stories. Thats been a very interesting sort of response to snapchat by facebook, Instagram Stories now has 150 million users. They have gone 400 million daily active users on instagram. Clearly it provides a richer content platform for brands and celebrities than certainly the longforgotten notion that these celebrities would be tweeting all the time on twitter. It is a big challenge to snapchat and the proposed ipo. Its interesting when you think of a potential acquisition of Something Like spotify, when you look at a taylor swift who has 100 million instagram followers, beyonce. This is the only place they can go to aggregate, and if you look at an adele video with 1. 5 billion views, thats the target for facebook to take on that Youtube Video usage inside instagram. Richard, great stuff. Richard kramer joining us there. The stock up 0. 8 in the premarket. Emaculate conception. I posted a selfie last weekend, it got over 200 likes. Is that a record . I think it might be. Moving forward. Another earnings story. Deutsche bank falling in european trading this morning as the Company Posted a bigger than expected Fourth Quarter loss. Germanys biggest lender was hurt by costs for legal fines, and losses from the sale of its abby life business. Deutsche bank agreed to pay more than 7 billion over the sale of mor mortgage securityies, down 5 . Three quick takeaways. Another loss for the quarter. Another loss for the year. That just rehighlights the profitability crisis they face. Added to that, this comes in a quarter where their fellow u. S. Global investment banks killed it. They did see some gains in trading, but meager compared to the u. S. It does suggested theyre losing market share and makes it harder to boost that profitability when they get through this. The Silver Lining, the Capital Position is the best in three years. One analyst saying he felt they prioritized capital as opposed to profitability this quarter. Small Silver Lining in what is a bad quarter. Disappointing numbers for them. Uk consumer giant Reckitt Benckiser is confirming that it is in advanced talks to buy baby food maker Mead Johnson Nutrition for 16. 7 billion. The stock clearly is surging on that news. Big play on the chinese baby market in terms of baby food. When we come back, a slew of earnings out late yesterday. Well round up the big movers, not just facebook. Youre watching Worldwide Exchange. This is where i trade andrs. Manage my portfolio. Since i added futures, i have access to the oil markets and gold markets. Okay. Im plugged into equities trade confirmed and i have Global Access 24 7. Meaning i can do what i need to do, then i can focus on what i want to do. Visit learnfuturestoday. Com to see what adding futures can do for you. Welcome back. Corvo taking a hit after weak guidance for the current quarter. Smartphone delays are expected to hurt over the course of the quarters earnings. Shares of cirrus logic getting punished. The company beating the street, but guidance disappointing. All state posting mixed results for the quarter. Profit rising 29 following a drop off in catastrophe losses. Up 2. 6 . When we come back, well reveal who is making a comeback and flipping the coin at the super bowl. Well be right back. At bp, we empower anyone to stop a job if something doesnt seem right, so everyone comes home safely. Because safety is never being satisfied. And always working to be better. Good morning. Coming up on the show, the top stories, and a round up of Global Markets under pressure today. And our top trending stories. Well tell you about the co who lost a bet and ended up with a tattoo on the back of it. Youre watching Worldwide Exchange. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to tal