hit after nomura holdings said it was going to issue more shares after second sale tranche after it bought up asian and european operations. a lot of concerns about banks there dragging down the sector. the kospi is down marginally. the shanghai composite down 0.5%. the metal stocks getting hit and the hang seng is down 0.13% and the australian market is up 0.26%. nymex light sweet crude is up $66.29 and brent is up, as well, $65.31 a barrel. good to see you. >> hi, christine. good morning to you. let's take a look at how stocks are trading. thursday, stocks dropped lower. now it looks like the dow futures are pointing to a slightly higher open. nasdaq futures are slightly lower and the s&p futures are

pretty much flat. so we'll see how the market moves today. we are going to get quite a bit of different economic news. in terms of treasuries, let's look at the bund yield. that is down to 3.28%. in terms of the ten-year note, it's a pretty robust auction of $29 billion in seven-year notes yesterday. today the yield on the 10-year note is down to 3.37%. gold is hovering near two-week lows today as the dollar's rebound has dampened the safe haven appeal of the pressure metal. spot gold is up to $995.95. g-20 leaders say they won't withdraw economic stimulus measures prematurely and will wait until a durable recovery is under way.

in a draft statement seen by reuters, g-20 nations have agreed to bring a new set of international rules to raise capital standards in the financial sector and discourage rules breaking. president obama is said to hold a new conference at 8:30 a.m. new york time. becky. >> well, a g-20 communique also spells out that the 20 should become the key's key coordinating body on key issues, shifting the move from the g-8. there is some confusion regarding to imf rights. the united states has asked for a change in the number of seats that would favor the european delegation. meanwhile, if financial regulation continues to be discussed at the summit, christine lagarde reiterated her support of the banking sector to cnbc. >> but i think the banking

industry is very special, very special because it is a custodian of the public goods such as our currency and second it has an implicit guarantee that we're not going to let major financial institutions down and we're guaranteeing deposit. so that industry has a huge benefit out of that particular posture and position. we cannot do without that. >> well, a shift in voting power in the imf could give china and india a bigger say. china has welcomed the move. its foreign affairs ministry told cnbc that the key to an effective global economic governance framework is to represent the changes in the global economy and bring in the equal participation of developing nations. ensure their say and decision making power, china is open to

discussions of a new global economic governance framework and reforming/perfecting current frameworks. to join us now, we have our panelist mark farber, editor and publisher of the gloom, doom report and michael gurka joins us from london. mark farber, let me start with you first. what do you make of this growing clout of china on the economic stage? what role do you see them playing in the economy? >> i think it's clear for the last 0 years and serve since 2001 that the emerging economies of the world have not only had the rising powers of living, but have become an economic block. for the first time at present, we have had more car sales than in the industrialized countries of the west.

and so the markets had expanded dramatically. just look at china. they produce over 40% of world steel or 30% of world aluminum production comes out of china. so these countries, whether brazil or china or india, they want to have a larger say in international affairs and that will, over time, obviously lead to operating tensions. >> do these bric countries play a larger part in your portfolio, too? >> well, i think that in general people, say, in the united states, they may have had an allocation of 20 to 50% to foreign markets and of that they may have had 20% or 50% in emerging economies. i think people have to rethink the world and that they should

have little money in the united states and say over 50% of their funds in emerging economies. i'm not suggesting that they should rush out today and buy across the board emerging economies. but as a long-term target, i would have at least 50% of my money in emerging economies. i have more than that. >> michael, let's bring to you another pair of issues that affects the g-20 discussions so far. let's start with regulation. regulation of the banks and bank capitalization measures, as well. as we see the financial sector returning to normal, how do you think this push for changes to bank capital equalzation measures, what impact will that have on the shape of the banking sector? >> if we only go back one year from today, someone will be held accountable for what happened. i'm not saying this is an area where someone is pointing to

specific companies, but we know who that is and why it's happened. it is regulation that's going to make you accountable after the fact. it is the time and it's the drum roll and this is a very important time for government. this is where you want to see that come into the marketplace and you want to see how it's addressed. you know, this xhotdty markets in themselves, not just within the credit markets and, of course, within the equity markets, you're starting to see a reasoning of not only why regulation became somewhat loose, also why did monetary policy, and the markets intertwine themselves into a situation where no one was held accountable in a scenario where exchange traded funds or exchanges in themselves were letting liquidity drive the market and that was the basis. i think at this point, regulators are starting to say now that not only do they not

want to see bank failures, but they want markets to be more accountable, not only in the crash of '87 where you think how circuit breakers and economists stop these situations. i think what happens is that is the return to stability in the marketplace are these types of actions and more importantly, what is going to happen when we start to quote/unquote return to normal? i think it's not what it was six months ago, clearly not what it was two years ago. the question is now, will regulations start to hamper out and dry these markets? i think that's when you see volatility go flat and take over here. >> banksers, the notices, how likely is it that we'll get any real action of bankers bonuses or is this just a side show? is it political posturing, do you think, this issue? >> i'm not going to say that that was the latter, but it is the latter. the one thing as far as big

banks and financial services, they are the life flood of commerce because earth way, trade or business are going to float through that and, of course, it started with the lending practices. that being said, i think what happens now is if these bonuses start to eek back out, that means someone is accountable. wait a minute, there's money being made. isn't that my money, i'm a taxpayer. it's not just going to become some sovereign state. people are make big decisions in these banks that make prosperous growth in the companies happen. they should reap the rewards for that. the question is, how many zeros are going to be too much in this case and right now, at least, these pay schemes are no longer what they were baub it's putting your finger on a large rat trap when it goes off. >> mark, julia boorstin here in the united states.

trying to get your thoughts on that banking regulation and whether or not you agree. do you think we're going to see any real impact here? >> well, first of all, my view is that this g-20 meeting is a complete and total waste of time. nothing will be achieved exception they want implement regulations that are even worse than the regulations that brought us all these problems. if you talk about accountability, they talk about discouraged leverage. but now, what is happening? the private sector is deleveraging. the government is filing up this huge fiscal deficit, which as far as i'm concerned will increase over time. and the monetary policy is precisely encouraging speculation and leverage by having interest rates at zero

and by stating that for a long time they will not increase the interest rates. what caused the cry sess? unbound and uncontrolled credit growth, but that is not being addressed by the central bankers today and the regulators, the ones that you provide, fannie mae and freddie mac, they're now implementing new regulations that will be even worse. it's a total and complete disaster. and the crisis we had is just the appetizer to the big, total breakdown of financial markets and of governments in five or ten years' time when the whole system goes bust. >> marc, mike gurka here. one of the things i enjoy so much is how you get to the point. what i want to ask you is in this type of scenario, do you think these metrics are exactly what leads to bubbles? are those completely within

markets themselves? >> well, i think if a market is completely free, you can have bubbles. what is extraordinary about the 2002 to 2008 expedition to bubble land is that mr. green span and mr. bernanke managed to create the bubble in everything, just everything. stocks went up globally, real estate went up global ly, art prices went up, bond prices went up, the only one asset class that went down was the u.s. dollar. and then, 2008, the double burst and then the dollar is strong. so there's an inverse correlation. but especially in the 19th century, we are seeing bubbles in railroads, securities, railroad construction, sometimes in canal construction. but we did have a double that was universal in the 70s. we had a commodities bubble.

but the bond market went down and so what is unusual about the last few years is that central bankers have created a bubble for everything. it's like mr. krugman recently said in an interview, the world needs another bubble and then let's deal with the consequences later on. he said that already after 2000 and we know what the consequences are. but this is the frame of mind of politicians and of policy measures. do something and do something very bad. that's watts. >> gentlemen, we'll pick up this conversation in a little while. i know you're both staying with us in the next 45 minutes or so. marc faber, thank you, and michael gurka, global strategist at empire global funds. angela merkel looks likely to win a second term in this weekend's poll. the last-minute trip to the

summit will help her election bid. she'll get a boost by the latest poll of german confidence which hit its highest level in 13 months 37 christine. >> rebecca, shares of nomura holdings have been asked only in trade today. they're following a glut of sales orders after a $5.6 billion shares sale was announced thursday. the sales will dilute existing share value by about 30%. now, the brokerage says the funds raised will be used for investments and loans to subsidiaries. nomura's tier capital was up 5 percentage points. fed govern kevin worsch says the central bank may have to hike rates before the need is clear. he says, quote, policy likely

will need to begin normalization before it is obvious that it is necessary, possibly with greater force than is customary. >> echoing the fed's statement from wednesday's meeting, he says inflation remains in check. he says the financial markets could provide a better guide than traditional economic data in forecasting growth tends and possible price pressures. research in motion's second quarter profit dropped. revenues did fall short of analysts forecast and r.i.m. issued a weaker than expected third quarter outlook. the company says it could ship nearly 10 million new phones in the third quarter as it introduces new versions of the blackberry gold. 80% of subscribers are consumer instead of corporate customers. analysts say the stock has run up quite a bit in recent weeks. you can get more news, videos and blogs on today's market

moving news at cnbc.com. coming up, it's said the central bank will act aggressively if it has to plus the new economic world order. the g-20 looks to phase out the g-8, reflecting a shift in power to emerging economies. but can such a diverse group reach a consensus? and weak u.s. home sales knock wall street yesterday. was the pullback a turning point in the market? stay with us. a man who

welcome back to the show. let's get straight to our roundup of the equity markets. we're going to check in on the ftse. they're going to help us understand what's going on today. the ftse has seemed to struggle for direction this week. we haven't got any particularly clear indications of what's going on. >> we're down 1.5% for the week. although the ftse 100 remains up 15% year-to-date. we've had quite a movement since the march lows of 40%. that's been some of the reason for the breath this week. what's tended to emerge over the last day or two is a slight

concern in the markets about where the next capitalist is coming from. even the small move, we've seen some tactical switching back into defensive-type stocks. on the other hand, we've had unileave saying they're bidding for sara lee's personal unit. most likely, the positive catalysts which we're going to see in the next few weeks is as we run into the third quarter reporting season and what the market is very much looking for is an increase in sales and revenues as opposed to the cost cutting programs we saw in the second quarter. >> that was definitely the theme in the second quarter, the cost cutting. let's see if that will change this time around. we did some have figures this morning. what did tate mile have to tell us? >> basically, they were going to downgrade their halftime profits, the high interest rate charges and lower commodity prices. neither of those things work in their favor. having said that, the shares have been on a bit of a run

recently. if you look over the last six months or so, shares were up 60%, 70%. while it isn't a great surprise, the shares are probably full enough for now. >> we have seen some m&a activity coming back in. the kraft/cadbury story seems to keep rumbling on. where should we keep looking for m&a activity? >> well, the two places in particular which is courting a lot of interest at the moment is number one in terms of technology, there's been some speculation over the last day or two surrounding the likes of microsoft and oracle. and, of course, with all the reforms currently going on, there is inevitably going to be some sort of consolidation in the health care sector. so those are probably the two areas where most guys are currently looking for any further sort of m&a announcements. >> and it doesn't have a big impact on the stock, so we should keep our eyes peeled.

thanks very much for that, richard, ahead of uk equities. let's get around the rest of the global markets now. reporters are lined up and ready to go. stephane pa cartzy is here and we're looking at the paris markets today. >> we're down on the french market despite what we have this morning. the confirmation of the gdp, we had an xwres improvement for the consumer confidence in september. it's rirch minus 56 minus 59. in terms of stocks, we have france telecom trading higher on reports that the company may consider a partnership in switzerland to better compete with the sector. that is orange, the network would team up with its rival, sunrise. also trading higher, a drugmaker on the back of positive comments from the ceo, reuters was told the revenue will be boosted by

the swine flu vaccine in 2009 and 2010. let's have a look at the german market with sylvia in frankfurt. >> not much going on in terms of corporate news. we can put that aside. we've lost whatever momentum we had in early trading. and there is a bit of a tendency in here that we take it a nudge up and then we start taking profits. also no big news there. we had the gfk consumer climate index out today, better than expected, better income expected. economic recovery expected. and they plan to do more spending in the economy so that should all be good news. it hasn't helped the market here today. we are within the waiting loop like everybody else. g-20 and the german elections on the weekend. so we are probably going to be flat lining it more or less throughout the day. adam, what's up on your end? >> that you can very much, sylvia. it was a fairly weak market

picture particularly in japan. the big fat al fant in the room and today's trade were the financial stocks there, particularly nomura holdings. it wasn't traded today, but it was overwhelmed with a lot of sell orders and that would indicate that the stock, when it does get up to trade on monday, will fall about 15.9% on concerns it's raising more money for the second time this year. 5$5.6 billion in the share sale. they'll apply some of the money to subsidiaries in asia and the u.s. remember, the financial institutions are facing stricter capital adequacy requirements. this was the communique out of the g-20 finance summit out ofland and guilty by association, the big cap banking stock fell heavily on the backs of nomura news having to raise more money because they will likely, as well, have to face the prospect of boosting capital

ratios in japan. on that note, it's back to julia in the u.s. >> thanks so much, adam. investors will get a slew of economic reports to wrap up the trading week following a 5% surge in july. at 9:55 a.m., the final report for consumer sentiment for september will be released. analysts look for a reading of 70.5 up slightly from the preliminary estimate. then at 10:00 a.m. new york time, august sales are up, forecast at 1.6% to an annual rate of 440,000. fed chairman ben bernanke will give brief economic remarks in washington. at 9:00 a.m. he'll then take part in a question and answer session with california congresswoman maxine waters. that's your global stock watch. becky. >> still to come on "worldwide exchange," india and china get the biggest say in the economic order as the g. 20 decides to phase out the g-8.

>> and it's formula one season at the lion city, but will the event help that city roar? uuuuuu

i'm christine tan. the g-20 scrapped the g-8, giving emerging neighs more say. >> and i'm becky meehan in europe. they have not yet limited the bonuses in the financial sector. >> and i'm julia boorstin in the united states. some analysts say the interest rates will have to move before the need is obvious. >> markets are looking pretty steady, down 13 points on the cnbc 300. the ftse is up 0.15%. declines, though, for the dax, cac and the smi. the smi remains the weakest, losing about 0.75%. the forex markets, taking a chem check on the major currency action, dollar/yen at 90.51 with

the yuan strengthening against the dollar. euro/dollar, 1.4672. sterling is losing ground against the dollar, around the 1.60 level and euro/sterling at 0.916 been christine. >> here in asia, most of the markets were lower despite the fed to keep stimulus measures in place. the nikkei 225 down more than 2%. the banks leading declines there after nomura said the was going to issue $2.65 billion in shares. the kospi is down 0.1%. the shanghai market down 0.5%. hang seng down marginally, 0.1%. aussie market marginally higher at 0.3%. overall, not a lot of direction here in asia. julia. >> thanks, christine. in the u.s., we're coming off the market moving lower on thursday and, of course, you have a number of different pieces of economic data out today. let's take a look at how the

futures are trading. actually, the futures have moved down over the course of the morning and the dow is pointing to a slightly lower open. the s&p looks like it will be about flat at the open. let's take a look at that ten-year yield for bonds. we had a robust sale at $20 billion yesterday. it seemed like the 10-year note didn't move much on those comments from fed governor kel warsh. 10-year note is down to 3.36%. christine, over to you. >> julia, g-20 making the headlines today for leaders at the world's top 20 economies have pledged to keep emergency stimulus measure necessary place until a durable recovery is secured. according to a draft communique obtained by the reuters news agency, g-20 nations will draw extraordinary measures in a cooperative and coordinated manner when the time is right. >> well within leaders have agreed to introduce the new sets of international rules over improving the quality and level

of bank capital. new regulation will focus on discouraging excessive leverage that will be phased in as global financial conditions improve with the aim of implementing them by the end of 2012. >> there has been no final agreement on bankers' bonuses. according to the draft communique, the endor endorsing bonuses to link long-term success. joining us now is sarah hewin. what do you think about those comments that kevin warsh made about the possibility that we're going to have to raise rates sooner than we think and sooner than people are talking about? what's your perspective? >> well, we know that within the fed, that there is a split between those two fooem feel that the inflation risks are not

existent and others who feel that the extent of quantitative easing does bring about some inflation risks for the future. so i think this is an ongoing debate within the fed. it's an ongoing debate amongst all policymakers about what point do you stop stimulating, at what point do you stop quantitative easing and start to withdraw that stimulus. so i think it's more a reflection of the discussions that are being had by central bankers at the moment rather than a clear signal that there's going to be an early end to qe in the major economies and in the u.s. >> sara, that raises the question of what the g-20 has suggested in terms of how there is going to be a coordinated effort to figure out when the stimulus has been effective and when they can stop withdrawing the stimulus. how do you see a coordinated efforts happening? is that possible as different economies are emerging from this

recession at different times? i think it's very much a case of keeping communications open, central banks discussing very much what's happening on the ground in their particular countries. as you say, some countries are going to be emerging from -- are emerging from recession earlier than others. some countries are going to need to raise policy rates earlier than others. some countries will have to keep policy rates low for a very long time. so i think that when they discuss coordination, it's not as coordinated rate hikes as such because that wouldn't make sense if a country is still suffering. i read it much more as being aware of what's going on on the ground in each country. >> sarah, i'd like to ask you a question. it's right on the borderline between is there inflation out there, let's say in a u.s. scenario or here in the uk versus was it a scenario where things what got this way because of the housing market.

do you feel as though right now because of commodity prices and the way they are that you see using interest rates as an example maybe halfway out the curb that there is a little bit too much inflation priced in and really, you don't see it yet to justify these kind of rates moves if necessary? >> i don't really see inflation pressures building. if anything, the higher commodity prices that we've seen are a risk to the economic recovery and this is something that was raised earlier by one of the monetary policy committee members here in the uk. the underlying inflation pressures still seem very muted. if we look at the u.s. example, obviously, we have headline inflation negative now. we're likely to see it staying negative into 2010. but our view is that core inflation is going to fall close to zero so that we'll still see overall inflation flat by 2011. that doesn't suggest that there will be any great hurry for the

fed to have to tighten. it's a slightly different story here in the uk where inflation will pick up as a result of higher direct taxes earlier in 2010. having said that, the extent of the gap in capacity which has opened up suggests that inflation pressures are going to stay muted for a very long time. i don't see inflation as a problem. >> swr marc, this is christine. do you share with sarah the same idea that inflag is not going to be a problem? >> well, i have a slightly different view because i have a different definition of inflation. i don't consider only consumer prices and core inflation without energy and without food to be relevant. i look at the u.s. dollar. whenever a currency is weak, it is weak because of some inflationary pressures. so 2002 to 2007, the u.s. dollar was very weak and it buries inflation in the system in the united states.

and then 2008 we have deflationary pressures and the dollar is strong. and now since march the dollar has been very weak and by the way, also, the pound, sterling, and we have, again, inflationary pressures in the system in the sense that some prices have been going up substantially. the price of oil is up from $32 at the end of 2008 to over $70 and other prices have also been rising. so it depends very much on your definition of inflation. and i'd like to add one comment that people frequently misunderstand. in the western world, we didn't have higher inflation, but certainly we had higher inflation that the than the government published in their statistics. but where the world got inflated is in emerging economies. because as a result of the trade and the current account deficit in the u.s., going up from 150

billion dollars to $800 billion, it flooded the worl with liquidity and it led to some very significant price increases. if many of you traveled around the world 20 years ago, there was a huge price difference between, say, emerging economies and the united states and western europe. now i can tell you to many capital cities of the world where the price level is as high as it is in europe and in the united states. >> well, mark, you know what? i would agree with that wholeheartedly, but for the same reason for me, i've always snickered when i would sit on the trading floor and see a lot of these numbers come out, looking at inflation ex food and energy because really, back in the states and i'm sure here where petro prices are even mother, it's hard to take out something like gasoline when you're pumping it into your car and telling yourself this is not an inflationary standard going forward. i look at commodities a lot.

and i think to myself, you know what? right now at least, right in line with what we're seeing here at the g-20, it's the fact that not just the bric nations, but we're looking at brazil a lot here with commodity prices. the whole fact that you're able to export so much of the grain markets and fruit and things of those sorts, right now, at least, if that demand continues and you start to see the massive inflows from etfs, how could you not look at the stabilization of how these inflations grow, look at gdp numbers and know that they're going to be substantially better. think to yourself that the next inflation, because of these monetary ip flows coming in are not going to make a trickle effect back in. i'm not going to say it's a circular loop, but the question being, do you feel as though taking crude oil as an example and maybe looking at corn and things like that, that that is going to be the next level of investment for maybe the next deck az because where else are

you going to see these kind of pressures? >> michael, we have a lot to talk about. let's give mark a chance to come back auto that matter and let's go to another story. we're looking closely here in singapore. we have practice sessions for the formula one grand prix. they are earn way. ticket sales for the event have been reduced this year. so far, we've seen hotels slashing room rates to pull in the crowds. how will this affect singapore this year? we have in our studio someone joining us on the set who is all raring to go. >> indeed. >> how successful do you think the race will be this time, this year? >> well, i think the big difference this year and obviously last year the recession. what i've noticed significantly is the big cutback in spending by the banks, but the big corporates who have to watch their bottom line. the positives, however, is we're starting to see more tourists coming through. last year the hotel rate was sky

high. they've been cut this time, so they're manageable. we're seeing a lot more intertravel taking place, more budget arrivals, planes coming through, as well. so that is giving a little bit of hope, at least, from a scenario where three months ago we were a lot more pessimistic. this time, i think you'll probably be able to handle in there despite the reduced number of tickets and the, i suppose, lower hotel -- >> why do you think the numbers are better? is it because the prices are a little more realist in, hotels have come down a little bit? is it because the whole pricing scenario has changed? >> i think relative to the last six months, it's still probably down year on year compared to a double digit decline start of tourism. i think the big different is a budget that rivals from india, from other parts of the region. certainly, we have had helped in the recession, but we have

rebounded quite smartly i think and as a result, confidence has come back and people are more willing to travel around, take advantage of the cheap fares, etcetera. >> it's julia boorstin here in the united states. i know here in formula one and racing is dependent on advertising in corporate sponsorship. how is that market faring over there? >> well, i think that has been -- in singapore's case, local, i think, sponsors have still basically standing behind the advertising as far as the singapore is concerned. we've got the big major sponsor being a government linked company. so i think so far, the major sponsors are still there, but what we are starting to see is for those big sponsors that used to be sponsoring teams, for instance, the bank related or perhaps next year we'll see a bit of a cutback.

but perhaps if asian company res going to do better, we may see more asian companies stepping out here. we've got the korean f-1 race coming up next year. so it's starting to look like the strength will be coming more from the asian economies as long as we don't see a double dip, i hope, going forward. >> so do you have a good seat in the house tomorrow? >> i hope so. hopefully the right car will win this time. last year they were -- so they should be the one. >> have fun. >> all right. we will. >> thank you so much for dropping by. right now, let's head over to india and check in on the markets there for the mumbai india business report. we have ream ma tendulkar. >> we're sitting on a bit of correction for the markets right now. but it's the broader universe which has managed to hold its

head up in the fwreen. the ratio currently stands at 3 to 2. there is a lot of fund-raising that is taking place. reliance has fired the dhrp. the shareholders have approved raising fund up to $400 million. there is an exclusive that jp hite is looking to raise about $ 00 million. there is a lot of money which the markets are looking to tap at least from the retail and the institution side. apoort from that, it's the entire metals space. on the flip side, it's the defenses gathering some interest. on the losing side, hindalco about 2.5%. on the gaining side, pharma is doing an exceptional job. ranbaxy and the nifty up about 4%. with that, it's back to you.

>> reema, thank you very much for that, ree ma'am tendukah. julia. >> and coming up, g-20 leaders say they won't withdrawal emergency stimulus measures prematurely. >> and we'll be talking about the currency markets, too. get the latest on what's going on there.

let's focus on the currency markets now. we're joined by ulrich flieshman from commerzbank. still with us, michael gurka is here and marc farber, as well. ulrich, let's start off with you and get your thoughts. i want to start seeing the base here in europe. let's get your thoughts on what's going on with the euro at the moment. obviously, we're seeing some of the euro zone countries beginning to emerge from recession, but some still shuttling. how do you think the euro is going to react to this as we go through the next few months? >> well, you're right. the problem for the euro in the next few months will be that the speed of recovery will be very

different in different euro zone countries where germany might lead spain, for example, will see only a sluggish recovery. t and the problem with the ecb is that they have to make a monetary policy that fits all. that is a very difficult task. therefore, while the ecd does a good job, it has a different environment than the fed. the outcome of the fed policy will be superior to that of the ecb. >> ulrich, this is christine here. we have china expressing xerns about the dollar stability. where do you see the dollar heading? >> well, it's an ongoing story for months now, that chinese officials are enquestioning the dollar stability. i think it's the main motivation there. china has every interest in a weak dollar. everything they can do in terms of language and speech, to speak the dollar weaker. but i think this will not work in the future as good as it has

in the past because over time, the market will concentrate on the fundamentals, especially on the question when will the fed start to hike rates again. what we saw from fed officials in the last couple of days versus what is very aspiring in the sense and to market is more and more getting cautious about selling the dollar. >> and mark, i want to bring you in on this. are you selling the dollar, as well? >> well, i think we've been very, very oversold in the dollar and we've been overbought for stocks. so for maybe a month or three months, the dollar could rebound somewhat. but i think it's important to understand that the fate of the dollar has little to do with china and foreign central banks and everything to do with u.s. monetary policies. they want a strong dollar, they can keep money tight, and that has obviously negative

implications for economic growth in the united states and employment in the united states or, as i believe, they'll keep on printing money and keep interest rates below the rate of cost of living increase. it's the way they kept interest rates artificially low after 2001. don't forget, in 2004, almost three years into an economic expansion, we still have the fed fund rate of 1%. they increase it in baby steps, but there was never any monetary tightening taking place because credit growth accelerated and it was also visible in the weak u.s. dollar. so i don't believe that the federal reserve and the administration in the united states has any wish to have a strong dollar. they'll print and print and print and the vowel of the dollar will go down. the question is against what. i think it will go down against pressure metals and probably in the long run against asian currencies.

>> michael, i know that you share the view that equity mark -- they're bearish on equity markets, as well. does your view of the currency markets, therefore, fall into the same category? >> it is. and i agree with mark whashg just said. it's just a different parameter of how you see that. i agree with what ulrich was saying is it's in the best interest of china to do lip service and to weaken that dollar. a coordinated effort or any intervention in the past was only a momentary pause to watch something spike and turn around. on that interveng scenario where we were hearing earlier this week that the dollar was going to be supported and that would be maybe 0.of the things that maybe the g-8 was going to do, not the 20, but once again, is that the counter trade? because right now, it seems as though the consensus, and we were just talking about this earlier, was the fact that stocks were doing really well and in one day, we saw the trade. dollar is getting smoked, big,

strong move. is it profit taking or is it a move to the end of year, where we're starting to see a mental shift? i think right now, at least, the dollar now that it's becoming more of a focus is one of the reasons why people have to start paying attention to the fundamentals. that is going to get us through this recovery and i think that's one of the reasons when the dollar starts going to the front of the pack, and like i just mentioned, i think that's when you see the dynamics change. for me, that maybe is the new normal, which is not watching it get pounded, but at the same time, sterling against the dollar with a 1.80 handle or higher, i don't see that for quite some time and i think that would be shocking if we saw the other way. >> michael, julia here in the united states. we've been talking over the past couple of days about the possibility of the dollar replacing the yen is that funding currency. what do you think the chances are of that happening and what will that mean for the dollar looking forward? >> i think that that dynamic would be well embraced. right now, at least, the dollar is the most adaptable currently for any one of those situations.

but for the same reason, i think that's never going to be a good reason to do it. i think that just as another example, there was a lot of chatter years ago. i know mark will remember this about basically we're going to start pricing crude oil in euros and not dollars and it didn't materialize because it's that big, big, big demand we're seeing down the block. that's china fp. if they have all that interest in our i think that is not going to work. for those reasons, i think wealth back to the old standards. i think that's why we look to gold as an ig flagz device and i think that's why people look at the dollar and the yen on that carry trade scenario. fx traders will love that volatility. >> bob, what about you, do you think the dollar is going to replace the yen as a funding currency? >> well, i mean, i think what is happening, i agree with everything that mr. gurka has

said. but i also feel that if you have interest rates at zero, essentially you discourage people to save and you encourage them to speculate. now, when interest rates are at zero, then i say to myself, do i want to hold dollars that can be increased in their quantity? in other words, the supply of dollars can be increased or do i prefer to own a ton of copper or crude oil or a ton of gold because there's no opportunity cuts in holding these assets and these are assets that you can't hold very much. it's very slow in the commodities industry. so i think that actually the zero interest rate policies that we have essentially in most countries of the world to stabilize the economic growth, what it leads to is money flowing into other assets and it's very difficult to tell

where the next bubble will occur. i'm the most bearish person about the global economy. but because of that, i think that stocks will go up because they'll keep on printing money. and don't forget, the pattern has been to keep interest rates lately below the rate of inflation, below normal gdp growth and try to stimulate economic growth to monetary policies. it doesn't work, but that's the aim, essentially. >> very insightful there, mark. gentlemen, thank you very much for your views. we have to leave it there, unfortunately. marc farber, michael gurka, thank you very much, as well. and ulrich, thank you, as well, for your views. coming up next in the next hour of "worldwide exchange," we will bring you up to speed with all the top stories making headlines across the globe. >> plus, after new york and london, it's now malan. we'll go live to italy to get the latest on fashion week. t.

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they're gonna be there waiting for us. that's a good idea. yeah. you have a nice flight. thank you. (announcer) print online...you upload your document -- we'll take care of the rest.

i'm christine tan. g-20 sur plants g-8, giving emerges nations more say. >> i'm becky meehan opinion in europe, there's still no clear agreement on a shift of voting rights of the imf to give greater weight to emerging

nations. >> and i'm julia boorstin. in the united states, a big rate hike is in the cards pap analyst says the central bank may have to move before the need to do so is obvious. if you're just joining us here in the united states, welcome to the start of your global day with "worldwide exchange," broadcast live from the u.s., asia and europe. here in the u.s., we'll take a look at how futures are trading. it looks like the dow is pointing to a slightly higher open, nasdaq is down slightly and the s&p 500 is pretty much flat. the futures have been moving around quite a bit though rng po, though, hovering around that flat line mark. let's take a quick look at the bund yield. pull that up there it is down 0.025 for the 10-year bund yield to 3.28%. and yield on 10-year treasuries on the heels of a robust auction of $29 billion in 7-year notes yesterday is down to 3.36%.

becky, how is it looking over in europe? >> well, let's take a check on the ftse cnbc global 300 index as we try to get a feel of what's going on in the equity markets. we have been lower this morning by just a fraction. since the last time we checked in, just down 0.2% overall. the european bourses, we've seen a bit of a mixed trade today. it adds 0.4% declines, oh. the smi has been kind of the major european market which has suffered this morning, still down by 0..7% as far as the forex markets are concerned, plenty of action this week in that respect. dollar/yen, we look at 90.47. the yen is strengthening against the dollar today. euro/dollar at 1.4885. sterling is moving a little lower against the dollar at 1.6022 is where we currently stand and 0.9165 for euro/sterling, christine, let's

get a look at the asian markets. >> a little weaker here despite the g-20 do keep stimulus measures in place. the nikkei 225 leasing the losers there. the banks are in focus after nomura holdings said it was going to issue shares. lots of concerns about the banks there. the kospi is down marginally, the shanghai margin down 0.5%. the aussie market up just a touch, 0.3%. this is how the picture is looking for oil. oil putting on gains just a little it bit, nymex light sweet crude trading at $66.2 is 1 a barrel. brent is tacking on gains, as well, $65.28. >> we've had loads of guests on the show today. joining us for market strategy and staying with us hopefully for the whole of the rest hour, andy bruk, fund manager at schroeder's. g-20 is very much on the agenda

today. there are a couple of other issues which have been hanging around for a while, perhaps the climate change agenda, the dohar trade tacks agenda, as well. i guess they've been pushed to one side of anterior because of the g-20 meeting. >> there are trade talks that have been going on forever. in everyone's interest, everyone can trade with each other. when you see a sort of global meltdown that we've had, pem don't want to trade with each other. you can see what's happening with the sort of bust up over what's going to happen, is it going to end up somewhere else? and where the jobless is going to be. so i think the dohar thing will be on the back burner for quite a few years, actually. climate change, if you're barack obama and you've got your sort

of cash flow statement for the u.s. government and it has a little column which says, please send the middle east $375 billion a year and you think, well, what's that for? for oil. well, surely it's going to be read and to not only sort of get into renewables the last time i was in california, i did notice it was quite sunny and going to solar power and all these sort of things. actually, i would be a fan of renewables and this whole climate thing drift up and reducing reliance on the middle east and other things where oil tends to be. >> andy, julia boorstin here in the united states. i'm curious for your thoughts on the g-20. we've gotten a lot of information in this communique of over what this strategy is going to be. >> well, i think people sort of have given up what the g-20 is going to be. obviously, gordon brown saved the world and won the prize recently for that.

but putting this in was a short-term measure. and sooner or later, someone has to say, we're going to take the stimulus out. you can't bringing forward demand. you know, the cash for clunkers and all these things dragging forward demand and the g-0 is really down to sort of in a holing pattern now, saying, well, actually, let's just keep people thinking that the stimulus is going to be there, because the last thing they want to do is say we're drawing the stimulus and markets going back into free fall. so the g-20, the best thing they can probably do is say nothing, actually. >> andy, hi. this is christine here. china and india are getting more say on a global stage. how bulis are you on emerging markets as an investor? >> you have to look at the stats, don't you? china and indonesia just around the corner. then you've got a massive chunk of the world's population is going to be spending far more money. you've got to look at emerging

markets. one of the reasons that kraft has come out to buy cadbury is cadbury has amazing exposure to emerging markets around the world. in the uk, a lot of companies with emerging market exposure are probably going to do a lot better than those in just the countries they're in. a, they have to money, b, they have the opportunities to grow. you have to be more positive long-term on emerging markets than perhaps you have to be on the developed markets. >> andy, let's get to a bit of strategy before we move on and plenty more g-20 to come in this round. but has your strategic positioning changed much over the summer? >> i think the world has changed quite a lot. but going into the summer, this week talking to the heads of m&s, there is no doubt that the consumer has been in a honeymoon period.

if you had a job, track a mortgage and you drive a car, they've got a massive boost to your disposable income. and you go back and look over the last ten years, then disposable income would go up or down plus or minus 2%. these are massive, massive injections into the system. but the consumer would start to reappear. what i would be doing is refocusing my portfolio into companies which could weather a consumer downturn or which have more exposure to emerging markets and who can be beneficiaries for further falls in sterling. so i feel there's been a bit of a seismic change in the markets and one of the reasons you've seen a huge rate issuance from people like hash builders reflects that, actually. >> andy, we're -- to be build your balance sheets. >> andy, we're going to leave it there for now, but we will continue this discussion later.

an andy brough. still to come, some members are clashing over changing the imf. plus, later in the show, we'll go live to pittsburgh. these days every penny counts with everything you buy. every head. every bite. every gallon. every shoe. every book. every cereal. well, maybe not every cereal.

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woirve to "worldwide exchange." g-20 leaders say they woken withdraw economic stimulus p prematurely. this is a picture of president obama and first lady michelle obama welcoming leaders last might. the aim is to fully implement the rules by 2012. president obama is said to hold a news conference at 8:30 a.m. new york time. >> the communique spells out the group's 20 should become the worl's key volume on economic issues. this shifts the focus from the g-8. separately, there is some confusion regarding changes to imf voting rights for developing nations. joining us now for a bit more analysis, global issues analyst and we still have with us andy

brough from schroeder's. gentlemen, let's start with you. talk about when withdraw measures should be -- story, when stimulus measures should be withdrawn. how practical do you think it is for countries to say, we've got it covered, we'll withdraw the stimulus when the economies start to recover, bearing in mind that economies recover at different paces. >> that's preshould it sightly the problem. the communique mentioned from the earlier finance meeting earlier this month that they're looking for a durable or sustainable recovery. that's going to mean different things in different places. so it would be very difficult for them going forward, especially as g-20 politics become more consentus, perhaps more acrimonious to coordinate a developmentive withdraw that all of these countries have put into place. national interests will start to

assert themselves including at the two meetings that have been announced for next year. >> what do you think of a properly coordinated approach? >> the great thing about the g-8 was that everyone needed the money. everyone in the g-8, economists were not good and they needed the key stimulus. once you start expanding it into the give-20, they've already got money, haven't they? so it's slightly possible to see how the g-20 could function as a body, given the conflicts between those that have lots of money and those that are virtually broke. do you agree, john? >> no. indeed. and one thing that will be interesting to watch going forward is how the g-20 encroaches on some of these other multi lateral processes that have gone into affect. it's strayed into climate, trade negotiations, imf and global governance reform and those issues which have been handled at the bilateral level.

may become increasingly part of the g-20 and that in and of itself could create problems for achieving the consensus on the core economic and financial issues. >> you've got a situation where you might look at a championship football league whereby if you're doing well, you get promoted to the g-20 or just pick a number. but if you're doing badly, you get demoted. so, you know, tensions over the imf, are the british and the french going to be thrown off? you shouldn't always have a right to a seat because you've always had a seat. you're in better shape if you have countries which say, it's move positive if there's a chance to get in. >> and further, you will see

tensions increase among developing countries in particular starting to wonder whether china, india, brazil, south africa are truly representing their interests at the global and multi lateral levels, particularly when it comes to trade negotiations, climate negotiations and other issues. >> julia has a couple points she wants to raise. >> jonathan, i want to hear your thoughts on the g-20 regulating banks and putting in some requirements for a higher capital for the banks to hold. what is your sense of what the g-20 can accomplish there? >> we've seen from the draft language that was released that they are planning to approach some of these issues which are relatively noncontroversial. so increasing the quality and amount of bank capital, regulate ing executive bonuses and several other things. but the question is going to be how will these be implemented at the national level? the financial stability board which was reformed during last year's g-20 meetings has made

general recommendations that i think everybody agrees upon, but actually translating those into national legislation will force individual countries and the leadership that's currently at the g-20 now to confront powerful domestic political forces and that could mean that consensus is actually hard to achieve in practice. >> jonathan, this is christine. one of our previous guests said increased regulation is going make things worse for the financial sector. you agree with that? >> increased regulation will have some dramatic impact on the financial sector. we've already seen that some areas such as certain types of trading have been prevented as a result of reforms to come out of the financial crisis. but it's important to remember that further reforms will probably have some unintended consequences for financial markets generally. and it's a little bit premature to say what exactly those might be. but understandably, industries, the financial industries is representing itself strongly in these negotiations.

>> jonathan, thanks so much for joining us. we're going to have to leave it there for now. andy brough, you're going to stick around. don't forget, you can follow all of the coverage on the g-20 on our website. cnbc.com. well, the world's fashion events have joined in milan. italian ex ports have dropped dratticly, too. sales to russia have dropped more than 29% and sales to the united states have fallen by 26%. cnbc's claudia pensotti is covering the event for us and joins us live now from milan. >> yes, rebecca, it is 97 shows,

78 presentations, 150 collections. what's important to note is that the number is unchanged here. while the industry is clearly hurting, that means that things have not yet radical byly changed. the feeling you get is that compared to a few months ago when the winter collection was presented, today there is more optimism here. there is nothing revolutionary. there's nothing that really strays from the beaten path. a lot of these passion houses aren't taking any risks and kind of going with what you've already seen, so not too much news. so it's clear that the industry is far from recovery, but there are signs of improvement. this is a key time for fashion houses, three-fourths of the orders for the season are brought in right after these weeks, so we'll see what happens there. this is have important industry for italy. 40 billion euros of ex ports. but it's important to see how these italian brands are doing.

>> i'm just back from new york and i was surprised to see the results of my store, new york and los angeles, dallas is a 90% more than last year. and i feel i am positive. i love it. that's all. >> so for many companies, it's time to rethink strategy. kavali has decided not to sell the majority stake to private equity funds. ic holings is on the brink of bankruptcy. there are debt payback pay lines and prada has canceled his ipo and has taken on a costly ru structuring of its debt. it's important to keep investing in these brands. the speed of recovery will be important for the survival of many of these brands. becky. >> claudia, thank you very much for that. and it did say glamorous, but gloomy.

that refers to the fashion week, not to claudia, who is beautiful. thank you so much. coming up after this break, we'll get updates on what's moving markets across the global. and tension in pittsburgh, police have been clashing with protest protesters. but the delegates themselves have been clashing with the policies. using a mifi--rom the d a mobile hotspot that provides up to five shared wi-fi connections. two are downloading the final final revised final presentation. - one just got an email. - woman: what?! hmph. it's being revised again. the copilot is on mapquest. and tom is streaming meeting psych-up music - from meltedmetal.com. - ( heavy metal music playing ) that's happening now with the new mifi from sprint-- the mobile hotspot that fits in your pocket. sprint. the now network. deaf, hard-of-hearing, and people with speech disabilities access www.sprintrelay.com. here you go. whoa! that's some serious insurance. ding-ding-ding! ding! ding! fun fact -- progressive is the number-one truck insurer. yeah, great service at the right price. and nowadays, my business depends on it.

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let's get to our global roundup of the equity markets now. we're starting here in the uk. stewart, thanks for coming along today. looking at the ftse 100, we seem to have been struggling for direction earlier this week, edging higher today. and there's specific data looking at vodafone. what do you see going on at vodafone at the moment? >> interesting. we have lacked direction all week. i think on that basis, a lot of investors now are beginning to think about reallocating their portfolios, perhaps moving towards stocks like vodafone. premarket today, priced on the upgrade to 160, bank of america, indication of how others are bulis about the stock. and i think it's a good sign, as well, as they're likely to be releasing this new 360 software on limited fund pre-christmas, which i think could help them with their revenues. >> an important time of year for them, i'm sure. we like to pay attention to what's going on in the resources

sector. it's such a big part. how do you think that those particular stocks have been performing this week? >> well, it's been a real diversion today with a bit of a slip. b but even with oil parting below that $66 level, we've got billiton leading one of the biggest gainers. i think the real bottom line here, though, is that we're in quite tight ranges. volumes have been been that restrictive and people are cautiously optimistic, perhaps. >> thanks so much for coming to speak to us. let's get out to the german markets now. silvia wadhwa has the latest on the german markets today. >> g-20, of course, and the upcoming german elections over the weekend, we kind of stop

picking our way through here. for a number of days yesterday, of course, we took a bit of a plunge today. we started in the more cheerful, but already we're flat lining it. gfk consumer climate came in better. the german client remains resilient in terms of job expect ages, spending expectations and today nobody wants to go in there with grander positions into the weekend. the outcome of the german elections maybe not that questionable in terms of angela merkel returning to office, but it may make a difference in the kind of coalitions she can form. adam. >> thank you, sylvia. let's take a look at the shanghai composite. ending the day lower. steeler plays were dragged down on that market pulling the shanghai composite on to a

three-week low. we saw a recovery in the banking stocks. hsbc recovering from the day's lows and separate news reports said that the group's ceo will be relocating to hong kong. they're going to be keeping the domicile all clear. it is up in london trade by 0.8%. moving on to the north asia, japs niece equity markets were very, very soft indeed today, dragged down by the financials. it was a terrible day really for them given that nomura holdings is looking to raise another 5.6 billion u.s. dollars. so far this year, taking the eye ta italis and boosting its capital ratio which will take it up to 12.7%. and the big caps fell lower on this news. on that note, back to the u.s. with julia. >> thanks, adam. here in the u.s., investors will get a trio of economic reports

to wrap up the trading week. durable goods are out at 8:30 a.m. new york time, expected to rise by 0. %. at 9:55, we'll get consumer sentiment. analysts are looking for a reading of 70.5. at 10:00 a.m., new home sales are expected to be out expected to come in at 1.6% higher. at 9:00 a.m., fed chairman ben bernanke will appear before the congressional black caucus annual legislative conference in washington. coming up, we should expect to end the year higher according to some. what do you think? send us your thoughts. e-mail us worldwide@cnbc.com.

it's over 30 minutes past the hour. here are the top business stories from around the world. g-20 leaders agree to wait until

the time is right to withdraw stimulus measures. >> and the g-20 surpasses the g-8, giving emerging countries more weight. >> and there is still no agreement on shift in the imf voting powers. >> let's take a quick look at where the market is heading this morning. the futures are bouncing around quite a bit before. now it looks like the dow is pointing to a higher open. nasdaq, slightly lower open and the s&p, pretty much flat, maybe a little higher open. futures have been moving around quite a bit. joining us now for market strategy is eric marshall, portfolio management, andy brough is sticking around and still with us. let's start with you, eric. i see in your notes that you say there is still cash on the sidelines, that you expect to drive equity markets higher. you also think profit taking is

healthy. what is your perspective on the market? where are we headed? >> i think longer term, there is still good reason for the market to go up. i think ekts look more attractive than sitting on cash or buying bonds right now. and i do think that it's healthy for the market to see a bit of rotation and for there to be a little bit of profit taking along the way. >> and do you think we're going to head past that key 10,000 mark? >> oh, eventually we will, but the timing of it is pretty unknown. what we're doing is we think that there will be a rotation, maybe more into some of the higher quality names. the biggest moves in the equity market have been in the lower quality stocks. it's almost been like a survivability trade. and now it's probably a good time to start looking at some higher quality names within the

different industry groups and market cap sizes. what we're doing is really focusing on the companies that have staying power that competitively could be better positioned coming out of this economic downturn than maybe they were going into it. >> andy, what's your perspective, do you agree? >> yeah, i agree with some of that, actually. i think we've had a pretty good run in a lot of stocks if you've been a high quality company and you've been left behind in the uk, this sort of flight to companies on the sustainability argument while they're going to be here, shares have been oversold. to me, i agree with him actually a bit that you want to be moving back into companies where they're growing their top line. there have been a lot of rescue runs attracting a lot of attention. growth is available on the top line which then feed into growing dividends. i think a lot of the recovery stocks, it's going to be a long

haul in a low growth environment. >> eric, this is christine. which sectors are you looking at? which sectors would you particularly be interested in that would help move the markets higher from here? >> well, you know, we still like a lot of the basic materials and energy areas, which should do better in a more inflationary environment, which we're likely to see sometime over the next decade. you can make an argument that maybe we'll see inflation a little higher than in the previous decade. and then we're finding opportunities in individual companies, in everything from consumer to airlines, really, across the board. and we think now is really a good time to focus in on the individual businesses that are best positioned once the economy returns. >> you know, our previous guest, eric, was saying that emerging markets should make up at least 50% of your portfolio, given how

booming and growing these economies are. do you agree? >> well, one thing, you know, we're at the hodges funds we're focused mainly on u.s. equities. but we think it's important to pay attention to companies that have exposure to those emerging markets. and there are a lot of small cap and large cap companies here in the u.s. that do a surprising amount of business in those emerging markets. and we see various opportunities to invest in everything from steel companies to technology companies that should participate in the trends that are going on in emerging markets. >> eric, andy just mention dollars the potential for companies to show real growth moving forward. as we wrap up this third quarter, we've seen companies really improve their margins by bringing down their costs. but do you think we will see top line growth? >> i think we will.

i think 2009 will represent the trough for most industry sectors and we'll start to see some top line growth in 2010. we're definitely going to see material stocks xwroch. we need to see some of that earnlings improvement materialize. in 2010, earnings are going to look a lot better for most companies than they did in 2009. >> andy, what do you think about what eric just said about earnings improvement? >> i can't disagree, really. i think a lot of companies have made their earnings by cutting costs. i think a lot of companies during the good times have added on lots of costs and during the bad times found it quite easy to take it out. and i think the real key for any sustainable move back in the market on a long-term basis is

you need to see unemployment coming down and employment turning positive up. in the u.s., for example, you've lost all the jobs you created in the previous seven years, in the last 18 months. and employment turns positive, then i can't really see the market making a big headway. >> so you think unemployment is the key. how about unemployment lagging indicators? how prices seem to have been a big factor here, too, in items of consumer confidence. is unemployment in this recession really the place to look? >> unemployment is accelerated quickly. unemployment has gone up 50% in fact last 12 months. in july, 210,000 people lost their jobs. so you take 210,000, average salary at 25 grand, call it 16 1/2 grand after tax, put a multiplier and you're taking $24 billion out of spending.

so i don't think the impact has been seen for a lot of stocks on the effect of unemployment. i expect that to be over the next 9 months, 12 months sxwb you know one i would ask anyone to give me a prediction of which which month, in which year employment will turn positive in their country. >> eric, if andy is focusing very much on unemployment numbers, what are you focusing on some of we have a range of different numbers coming out today, including consooent assumer sentiment, durable goods. where are you focused? >> we're really focused on, you know, at the hodges funds we're bottoms up investors. so we're really focusing on earnings and really focusing on where we're seeing earnings xwompt and what the risk/reward is of those earnings. >> all right. eric, thank you very much for your views. we want you to continue staying with us, eric marshall, portfolio manager, hodger

capital manager and is andy, you, too. right. we're going to take a look at the japanese market. we have nozomu kitadai from the nikkei. kitadai-san. >> hi, christine. tokyo stocks took a beating today with the nikkei index closing 2.4% lower. most traders blame the plunge on nomura holdings massive fund-raising plans. last night, the brokerage unveiled plans to unveil up to a little more than half a year since similar offerings in march. nomura stocks went limit down on shares dilution concerns finishing the day nearly 15% lower. nomura's changes are seen as a rush to bolster their capital basis before regulatory changes are enacted. with speculation amounting that the ongoing g-20 summit may agree on tightening bank capital standards, investors dumped mega bank shares.

meanwhile, japan airlines shares continued their sharp decent, falling nearly 10% at one point. on thursday, president matsu was asked for. jal shares, however, managed to finish above its lows after the government announced it has laushed a task force of corporate turn around experts to help revive the firm. that's a rap from tokyo. >> thanks for that. you have a good weekend. >> thank you. there's serious tension in pittsburgh. still to come, we'll look ahead to today's key data releases, including home sales. here is a quick look at how the futures are trading.

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welcome to cnbc's "worldwide exchange." here are some of the top stories we're watching from around the world. hewlett packard is expecting flat 2010 revenues. they expect the i.t. industry to return to growth last year and believes the company will outpace the market.

hb has been carefully managing costs during the recession, while at the same time prepping for the turn around in i.t. spending. shares fell 1% in after hours and in frankfurt, they're down 1% to $31.61. twitter is reportedly set to raise about $100 million in new funding. that would value the company at about $1 billion. if you break it doin', the microbloging site is worth about $7.1 billion per character. reports say the new york venture capital firm insight venture partners is leading the group of investors in the news funding which includes fund manager t. rowe price. it's unclear how it will use the cash. angela merkel puts election campaigning aside to attend the g-20 in pittsburgh. the german chancellor looks unlikely to the poll. she'll get a boost from the

latest poll of consumer confidence, german consumer confidence which hit its highest level in 16 months. what is fast for certain with is what kind of coalition she'll have to form. now, the european union has slapped anti-dumping terrorists on foil from china in the latest stamp to stamp out protectionism. reports suggest alcoa aluminum will be affected. >> what do you expect? >> reuters has announced plans to build a factory in china. it will be jointly managed with ford's partners in china. the new setup will cost ford $419 million and will kick off production in 2012. the new plant will significantly boost production capacity for both ford and mazda. elsewhere, shanda has reportedly priced its ipo shares at $12.50,

which is at the top of its indicative range. it will raise $1 billion in the largest ipo in the u.s. this year. the deal was more than ten times oversubscribed and would be the largest fass dak ipo ever by a chinese company. the offering is capitalizing on china's red hot online games market and industry revenues could jump as much as 50% to $4 billion for this year. >> well get a final thought now from andy brough. he's been with us for most of the past hour. what kind of nugget would you leave us with? >> i think you have to prepare your portfolios for two things, first of all, significant cuts for government spending the government spending in the uk hasn't been cut for 32 years. it was a group of portfolios for a reduction in stim use husband,

which means you have to focus down on those companies capable of growing their top line because they're exposed to growth industries and haven't relied on the bank's bailout. >> wa kind of companies are they? >> i think some of the pharmaceutical companies would fit into that same. ad sourcing will be a massive industry as everyone tries to get off their p&l. consumers will still remistaken under pressure opinion. >> is there value in those companies or has the recent rally already taken steam out of that strategic direction? >> no. i think we've seen a bit of a move. we've seen it come off a bit and some of the retailers come under pressure. but you know, these shares have doubled, tripled, quadrupled this year. i think there's a lot for that trade to unwind. >> and what risk of another dip? >> well, if my daughter was -- my 12-year-old tower was talking to me about the recession. she said, dad, i think it's going to be a whatever

recession. i think it's highlightive of a dip back down sometimes in 2010. as the financial stimuluses come off, growth, if it's there, can come through. >> how serious do you think it will be if we get another dip in 2010. are we looking at another risk of oblivion or is this going to be a blip on the way to a profit sustainable recovery? >> we're in a trough of heavily indebted consumers, corporates cutting, and we can go one of three ways. we can go straight down latvia lane where everything comes to an end. we turn left and governments stond spending or we turn right and gordon brown ends up being the best funds manager ever. he sells the shares for a huge amount on the stock market, you can finance the deficit. i had that dream again last night. so we're going round and round and round about. i'm not sure which way we go,

but i'm preparing for the fact that life is going to get a lot tougher. >> okay. andy, thanks very much for joining us today. >> research in motion is pulling the nasdaq features down after issuing a worse than expected third quarter outlook. we'll let you know exactly what to keep an eye on in today's u.s. trade right after this break. uuuuuuuuuuuuuuuuuuuuuuuuuu

let's get a look ahead to the u.s. trading day and bring back in eric. eric, yesterday those numbers on the existing home sales really rattled the markets. today we're going to get numbers out on new home sales. do you think those numbers will have the same effect and what kind of numbers are you expecting? >> well, we don't spend a lot of time trying to forecast any given data point like that. i think a lot of expectations are not too high and i wouldn't expect that to have too much of

a dramatic impact on the market. >> we also with are going to be getting out those durable goods numbers and some consumer sentiment. how do you think the market is going to move in the wake of that information? >> well, i think, you know, the market has been climbing a wall of worry here. and i think there's still a lot of cash, there's about $3.5 billion still sitting in -- i'm sorry, 3.5 trillion still sitting in u.s. money market funds. and some of that money is still going to come back into the equity markets and if you look at mutual fund flows, there has been a lot of the flows recently going into fixed income and bond funds, but very little going into funds that are actively managed. and we think going forward, active portfolio management should be able to do a lot

better than passive management and etfs and things like that. >> now, looking ahead to next week, we have that all-important september jobs report. do you think the market is going to continue to trade in its level just under 10,000 or do you think we'll be able to break through that 10,000 mark? >> i think stocks have a good reason to go up here between now and the end of the year as things start to improve. you know, the jobs number is obviously a lagging indicator to the economy. you're likely to see the economy really turn up. earnings improvement with companies long before you start to see those jobs numbers improve. so we still think that there's good reason for stocks to go higher between now and the end of the year. >> and any quick recommendation sectors, stocks that you particularly are fond of? >> well, we think at the hodges funds, you know, we're focusing on the companies that have the ability to quickly leverage fixed costs once demand returns. one stock we like, we're

focusing on several different sectors, but we like kirby corp., the inland barge company here. they have about 33% of the u.s. domestic inland barge capacity. they should see a benefit from a restocking of inventories that is starting to occur after a record destocking in the first half of this year. >> okay. eric, thank you so much. we're going to have to leave it there. we're wrapping up now, but eric marshall, portfolio manager at hodges capital management. thank you so much for joining us. let's take a quick look at u.s. futures ahead of the market open. dow is pointing slightly higher. nasdaq looking lower and s&p 500 pretty much flat. that's it for today's show. i'm julia boorstin in the u.s. >> i'm becky meehan in europe. >> and here in asia, i'm christine tan. thanks for your company here on "worldwide exchange."

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good morning. the central bank may have to raise rates sooner than may have thought and there is a critical period of unknown duration. shares of rimm disappointing investors with its latest forecasts. plus, carl, still down there reporting live from the g-20. carl. hey, joe, the signs plastered around the city says it all. pittsburgh welcomes the world. today, global leaders are ready to get to work on a range of issues dominated by the xwhe as "squawk box" begins right now.

>> good morning, everybody. welcome to "squawk box." i'm becky quick with joe kernen and carl quintanilla who is reporting live from pittsburgh this morning. that's where we begin this morning. >> would he tell we'll get to some of the policy initiatives in a second. last night the president and the first lady welcomed the g-20 heads of state. in the meantime, the treasury secretary greeted all those finance ministers. there were separate working dinner for the two groups at the fifth conservatory. as the leaders were landing yesterday afternoon, demonstrators tried to make think way downtown. security is very tight. hundreds of protesters were met by police in riot gear. many of the marchers were advocating against capitalism themselves. they did not have a permit. after a few blocks, police declared it an unlawful

assembly. they played an announcement over the loud speaker telling people to leave or face arrests. some of those protesters were split into smaller dpups. others rolled big metal trash cans at police. windows of some businesses were smashed, including a bank branch at a boston market vaunt. officers fired an occ gas, kind of like a pepper spray. there are about 50 arrests in all. then last night, police tell nbc news there have been about 50 arrests, at least six businesses were damaged, includes a rite aid, subway, mcdonald's and a fedex. today, the president and other leaders will make their way to the convention center behind me where some official meetings will begin. we'll get more on what that means to the markets this morning. john harwood will be along. we havav a copy of the draft