i'm chloe cho. here in asia, the nikkei closing 2.5% lower. >> i'm becky meehan. in europe, officials say need to be ironed. >> and i'm julia boorstin.

the good news is that job losses likely slowed last month. the bad news is that unemployment is still on the rise. >> hello and warm welcome to "worldwide exchange." let's take a look around the markets right now. the ftse cnbc global 300 index is down about 0.0 r 7%. and close to the lows of the session, as well. how that translate to the european bourses, the ftse is suffering the least, really, at the moment. declines of almost 0.7% for the dax in germany and in france, the cac is moving lower by over 1%. so is the smi across in switzerland. quick check on the forex markets, as well, dollar/yen, 89.38 is where we're standing at the moment. euro/dollar, 1.4537. sterling/dollar, 1.5885.

chloe, how is it looking in asia today. >> a difficult session given that it was a double whammy on concerns over what the jobs numbers might indicate in the united states and weekly jobless claims. a lot of concerns about the strength in currency. a lot of ex ports from consumer electronics, the nikkei down by 2.5%. the kospi, the indian markets as well as the shanghai markets closed today for their public holidays. the s&p/asx 200 down by almost 2%, as well wp. also the singapore smi, as well. moving on to the energy complex, nymex light sweet crude currently dopg by more than $1 at $69.80. of course, this on the back of geopolitical concerns over iran and its nuclear development program. brent is trading off about $1 at

$68.18. hello and good morning to julia. good morning to you, chloe. here in the u.s., we're pointing to a lower open. futures have moderated a bit even in just the past few minutes. dow is pretty much flat with fair value. the nasdaq futures are slightly higher than fair value. the dow jones industrial lost 200 points over 2% which is the biggest point in percentage drop since july 2nd. so we'll see if those losses continue or if that was one day of profit taking or how long that downward trend lasts. looking at the bund yield, the 10-year bund yield is down to 3.13%. the 10-year note is down to 3.22. gold is below the $1,000 the mark as investors await today's

jobs data. spot gold is down to $997.05. chloe, over to you. >> thank you very much. joining us now for market strategy is tim harris, the ceo of harris capital and nicu harajchi. nicu, what happened in the asian trading session is that we had a double whammy on top of concerns about where this growth story is going to pan out. we had concerns about the strength of the currency, especially the japanese yen. how could investors play out their strategy? >> first of all, good morning from london. it's great to be here. i think that's a very good question. as you say, we've seen a double whammy the last few days or the last few trading sessions. i believe that the japanese economy doesn't look too bright for the fourth quarter. i believe that we have both a domestic investors. the japanese investors haven't believed in the markets i would

say for the past two years. now we're seeing the strengthening of the yen. so that is, in fact, a double whammy. i think japan is in for the longest time in order for them to recover and i think we're going to see a difficult fourth quarter. however, we are pessimistic on 2010. this is when we think that all that liquidity that has been pushed into the markets by the central banks, by the fed, at some point they're going to come into the market and need that money back. we've seen 2007 banks going bankrupt and this year we're almost around 100 banks going bankrupt. we think 2010 is going to be a much worse year. >> tim, what do you think? it's not about the japanese yen any more. it's about the korean won. ultimately, the asian markets have been running based on this idea that they were placed for a

v-shaped recovery. but is that possible given the strength we're seeing in a lot of the asian currencies? >> well, i think what we're seeing is deficits funding becomes a focal point in the western european and u.s. economies is the rebound on the domestic side of many of the asian economies which has to be reflated. that is a global theme to a degree because with public expenditure, naturally likely to roll over, the liquidity story is pretty path at the moment, but at some stage the private sector has to do the heavy lifting. so far, what we've seen is a cost cutting story. next year, we'll see an inventory build story. what i'd like to see is a cap ex story coming through and obviously, the jobless story is a given going ahead. but investment, which runs through inventory and through cap yex is critical.

and the earnings momentum has to be positive going forward from here. >> tim, you mentioned the september jobs report. the september month turned out to be so much better in the stock market than expected and it seems like this report today could set the mood for the month of october. in this cu, what are you expect to go hear from the jobless numbers today and how important are these numbers to the market? >> julia, i think that is one of the most important things. i think the unemployment rate is important from a fundamental point of view. we know the u.s. consumer is a consumer-driven economy. we expect the numbers to increase. it's difficult to say on a month on month basis. but we believe going into the fourth quarter, we're going to see increased unemployment and i also think that in 2010 we're

going to see some between 12% and 15% in the u.s. >> those are pretty high numbers. tim, do you agree? >> well, the u.s. has destroyed 7 million jobs almost in this drawdown and a jobless recovery is what we would perceive going ahead. the short-term numbers will be volatile, obviously. we would be looking at something like minus 225 for the last two months. i think we saw the weekly numbers coming out yesterday. that underwrote negative mention still there. but cost cutting is something that is improving things across the board in the u.s. and europe and that is underwriting earnings right now. if liquidity conditions remain

good enough, then four price earnings multiple at 15 since something that has me running for the hills just yet. >> what's a sensible strategy that investors should be taking at this stage? >> at this stage, i think we've seen such a good rally for the past -- especially the last two quarters, we think people should take very tight stuff. see how the data is going to improve. what we truly recommend is that before we get long-term, we think we should see at least three quarters of positive, fundamental, economic data before going back into the equity market. after that, i would recommend that people have been making money this year, tight stuff, be happy and see where if these cross border capital injections of the g-20 of $5 trillion have really worked and if they pro claim that we're out of recession, then we're in for many years to come. however, i don't believe in three positive quarters.

>> tim, is that too cautious, do you think? >> we've not been over risk through the year but i think we've built risk as we've gone. money and cash are not working very hard at all. the flows we've seen in the u.s. through money market funds, into bond funds, shows me there's the potential for a lot of people still to come through. if we get setbacks in the markets, i think there are flows that could yet come through. the microon the market is less encouraging. if you look at the defensive sectors, they're pretty much priced for a full earnings cycle. so if you're putting new money to work in markets today, you have to believe in that recovery coming through. we are just through the dip, the macro dip, and i think this is where we seek to build the global story and i think we've been saying the markets are a macro trade for some time. so i'm not -- my negative sides

come on the w session story. we can't gather enough evidence on that one yet. we know what could happen, but in the meantime, i think there's something on the table, too. the reflation trade is still alive. i think it's too early to be leaving the markets. >> okay. thank you for showing your thoughts. tim harris, ceo of harris capital and nicu harajchi. 2009 is difficult and 2010 looks highly uncertain, according to the president of the world bank. mr. zoellick said the real danger is complacency. mr. zoellick told this channel that banks will increase lending. >> we started this crisis in a good position. we are very well capitalized. and so we've been able to expand

some offous basic lending by about three fold. but one of the issues we're going to face, i think over the next few months we'll do more, we'll probably to more lending. >> and we'll speak to the president of the imf, as well. so it's worth watching out for that one, too. the so-called stress tests that show that the eu have enough capital to handle a severe macroeconomic deterioration. banking supervisors said that the banks, which represent 60% of eu banking assets could survive 400 billion euros in losses this year. no further details were provided. >> more worries about dwindling appetite for ipo shares today after glorious property plunged 18% in their first day in hong

kong. the chinese property developer raised $1.3 billion this year. analysts say that the firm has to selling point. glorious property's performance follows a string of lackluster ipos, including china's south city which saw shares mrupging 23% on weapons. akio toyoda says a full year loss of about $8.4 billion, assuming the yen remains at around the 92 levels. toyota reiterated his company is working on a quick return to profit even as it predicts global sales will fall 18% this year. in the meantime, toyota expressed regret over the recall of the floor mats in the u.s.

take a look at how toyota got hurt by the stronger yen today. down 3.7% in japanese trading. staying with japan, the country's jobless rate dropping from 5.5% in august from a record high of 5.7% last month. but the jobs to applicant ratio remained at 0.4%. household spending posted a surprise gain of 2.6% from a year ago versus expectations for a 0.2% drop. economists expect the signs will continue as the effects of government spending could be fading. the yen is trading below that 90 handle at 89.36 at this moment. julia. >> thanks. you're seeing claims, chloe, with the string of consecutive monthly job losses continue in october. the labor department releases the numbers at 8:30 a.m. new

york time. forecasts call for nonthe farm payrolls drop by 175,000. it would bring the total jobs lost in this recession to more than $7 million. the unemployment rate is expected to particular up to 9.8%. average hourly earnings are forecast to rise 0.1%. a top banking analyst says small businesses in the u.s. are still facing a credit crunch. meredith wis whitney says that's expected. whitney says another $1.5 trillion in credit lines could be removed from the system by tend of next year. whitney says without access to credit, they can't grow, can't hire and too often end up going out of business. you can get more news, videos

and blogs on all of today's market-moving news at cnbc.com. coming up on "worldwide exchange," the u.s. jobless rate is expected to rise to a 56-year high in september. should we get used to the idea of a new economy? plus, all eyes are now on the imf as they meet in turkey. 

hello, everyone. welcome back to the show. as you can see, we have an ensemble of experts joining us to help us understand what's going on around the globe. patricia is with us on the german markets, stephane on the markets, as well. before we get to those three, we're going to start off with joshua raymond for a bit of insight as to what's going on here in the uk. it wasn't an aus suspicious start to the quarter. how is it shaping up today? >> another pretty poor day's trading for the morning. it's been a real interesting

last 24 hours because the week didn't start too badly, obviously, but we have got four days of straight losses on the fits fits 100. the ftse is off just under 3% so far in those four days. what we see is a lot of clients pulling out of the riskier equities. it's mainly because a lot of the numbers have not been good. what investors are thinking right now is there's a little bit of hesitation. obviously at 1:30, we have the all-important nonfarm numbers. since then, a lot of people are playing a bit more of a defensive game. >> joshua, we have been looking towards some renewed m&a action to stir a bit of activity, as well, which seems to have occurred in the past couple of weeks or so. today we have an announcement that there's a portable shut up

ruling in place on the angelo/xstrata deal. what impact do you see this having on the markets? on the sector, in general. >> on the sector, it's been positively over the last couple of weeks. the xstrata/angelo thing, that hasn't had too much impact on share prices because xstrata is up around 3%. there was a bit of a bul pullback in the long run. the insurers have rised up to 3% in the last week. certainly in the long run, it

can help. >> joshua raymond, thank you so much for that. let's move further away from the studio here in london, at least, and get out to patricia szarvas who is in frankfurt with more on the german trade. >> becky, the market definitely nervous over the last three trading days. we are down over 4% which is exactly the gains we've managed to gem rate in september. so the market is nervous. and the nonfarm payrolls today could turn this picture around to the positive or we could take another leg to the downside. at the moment, under pressure are exactly those stocks that have been performing according to the market and much better than that. infineon is down about 4%. lufthansa losing almost 3%. deutsche bank and siemens among the main stocks putting pressure on this market.

the only real outperformer here is munich re and volkswagen. volkswagen in the u.s. was down 8.7%, however, that was much better than audi, bmw or daimler. now over to stephane in france. >> we're seeing a negative french session in the markets today. eads, the french electricity producer has launched a process to sell its uk different beauty network, as well. the company saying that the sale should take place in the first half of next year and that the price would be at least a $4 billion euro. edf said it may sell other assets to reduce its debt level. the stock is dounl 1%.

standard of care again raised its recommendation on the stock from sell to hold and still in the emerging sector, an offer was made for the transmission and distribution unit of ariva, the french nuclear company. gm will compete with toshiba and areva. it's up 1%. it's one of the best performing stocks this morning on the french market. let's have a look now at the asian markets with, of course, adam in sing important. in japan, this market fell on very heavy volume, with down about 2.2 billion shares in the first section of the tokyo stock exchange. it should come as no surprise, of course. the auto exporters were under a

tremendous amount of pressure because the jap please yen increased against the dollar. also, the september sales numbers came in weak. yesterday it outperformed the double digits. what was interesting, though, hyundai motor recorded a 21% jump and the korean market was shut for the public holiday. we'll take a look at that for reaction. and the retailers, we're kicking off the reporting season and the largest retailer coming up with those numbers. operating profits down 20% to $1.3 billion. overall weak session in the asian session. we turn our duty and you'll be watching very, very closely, indeed. >> that's right, adam. we will be watching et very,

very closely. investors are paying most of their attention to the jobs report at 8:30 a.m. new york time. august factory orders will be released at 10:00 a.m. new york time. boston fed president eric rosengr ren will be speaking about the boston markets at 8:15 a.m. new york time and dallas fed president fisher will be in durham, north carolina, to talk about the new global economy. coming up on "worldwide exchange," china's sectors boosted hope of a sustainable recovery. can the people's republic boost the world to recovery? >> plus, going for gold. we'll be live in copenhagen ahead of the 2012 olympics decision.

hello there. i'm chloe cho. fueling concerns that investor demand for new listings is fading fast. >> and i'm becky meehan. the imf is hurting. >> and i'm julia boorstin. in the u.s., the good news is that job losses will likely slow

last month. the bad news is that unemployment is still rising. >> now, we are waiting for uk pmi data coming out. we also had nationwide house price data which came out, as well, first thing this morning. it seems to show here in the uk, at least, house prices are starting to stabilize. not all of those metrics necessarily agree with each other, but certainly that is what the nationwide house prices said. many people believe that many of the economists believe we need a bit of stability in the housing sector to get any proper recovery on track, certainly, as far as the consumer is concerned. that is uk construction pmi data should be out any second. we'll leave it a few moments while it does come out. let me just tell you that james shugg is joining us now.

he's to my right waiting in an equally excited fashion for the data to come out. james, why don't we talk about what's going on in the housing sector with these figures. are we right to find stability in the figures? >> let me put it this way. there are a few key things. it's true more mortgages are being issued in the idea. we're up to around about 50,000 a month. but the conditions under which those mortgages are being issued are much more stringent than previously. there are fewer houses being sold. that's limiting the supply of houses going on to the market. because of that, mortgages are picking up a bit, but the supply constrained.

we're seeing upward pressure on prices. i've got a friend who has been looking to buy something around the 250,000 market. but supply is very constrained. if the supply were to increase, he think you would start to see this upward pressure on prices diminish. >> it's a bit late. maybe we're just very pungtal is the way i prefer to see it. construction pmi index, 46.7 was the rebate in september. what is the -- >> well, it's telling you that there's still ongoing contraction in the construction sector in the uk. now, construction, of course, is more than housing. nonresidential is a big chunk of that. but the overall picture is still one of contraction in that sector. we do believe that the manufacturing sector is pretty much stabilized now and services are probably growing in the uk. add that all up together and for the third quarter, you get positive growth for the uk

economy, even with that contraction and construction going on. >> let's take a look at it geographical. clearly, in this particular downturn, the housing sector and various tax to the housing sector in the -- in subprime, as we used to call it. the housing sector is seen as being a requirement for stability there for the rest of the economy to begin stabilize. you mentioned in the uk, we are seeing how price gains, even. how about some of the other major economies, particularly in the u.s. where the supply/demand picture is very different. >> that's right. in the uk, there is an underlying shortage of housings. that's a big positive for the medium to longer term prospects for uk housing. in the u.s., there is a big glut of numbers. we've seen on a whole range of indicators, existing home sales, housing stuff, particularly single family housing starts,

home builder sentiment and on some of the house price measures, as well. all of those indicators are telling you that the housing market in the u.s. is finding a kind of a base. it's starting to turn. the level of activity is still way down on where it was for the level of this decade. so the early conditions sort of coming into place for a housing recovery to eventually emerge in the u.s. but a big part of the story, i think, is the phenomenal stimulus that's been throwing at the u.s. economy via physical policy and housing is one of the sectors that are starting to respond to that. but i can it's too early to say that those signs of emerging activity in those sectors justify pulling back that stimulus. >> james, it's julia here in the u.s. if housing is starting to respond to the stimulus, the big question today, of course, is

jobs. are he with going to see any improvement in the jobless numbers? and yesterday we got some pretty disapointing news on the jobless numbers and manufacturing. what do you expect to hear today? >> look, even with yesterday's ism and taking the jobs component within that, which showed a bit of slippage compared to the august rating, if you take all the regional surveys, the ism and feed them into our demand label, we get a minus 37,000 decline in payrolls. that's not our forecast. we're forecasting minus 150,000, which will still be the best outcome since july of last year. other factors, such as adp and consumer confidence with respect to the late market have been less optimistic. as you rightly point out, the recent jobless claims trend, although it's been improving,

it's not up to the certain point where you say that the u.s. economy is no longer shading jobs. my gut feel about the u.s. labor market is that it's still too early to be talking about the stabilization or even jobs being created in the u.s. we're getting closer to that point, make no mistake, but i don't think we're going to be quite there yet. so we're looking for a 150,000 fall in payrolls today, the best outcome in over a year, but not quite back to job creation just yet. >> how long do you think it will take to get us to that point of job creation? you earlier mentioned the stimulus. do you think it would be driven by government stimulus programs? >> it's possible. but the problem is, some of those stimulus programs have run their course or are close to running their course after talking, of course, about cash for clunkers, that's out of the way now. we saw yesterday a big drop in auto seams. that's captured in figures like retail sales, personal spending,

industrial production numbers going forward. you've got the tax credit for first time buyers that runs out i think in november. that's going to remove some of the sources of support for the u.s. housing market. so the risk is that in the fourth quarter, the u.s. economy decelerates somewhat from the 2% to 3% annualized pace. and if that's the case, it actually might make it a little bit more difficult for the u.s. economy to get back into the sustained jobs creation phase before the end of this year. so our sense is we're going to be close to zero, modest declines over the next few months in payrolls, but job creation is probably going to more be the story for 2010 and not 2009. >> and james, good morning, this is chloe in asia. what is interesting to note is that recently we've been talking about this new growth model where asia relies on higher consumer spending instead of relying on external growth. if you take a look at the jobs

numbers out of japan today, unemployment lower to 5.5%. but job availability, only four available for ten seekers. do you believe that this is actually this new growth model is possible here in asia? does japan need another stimulus package? >> well, asia is -- firsts of all, i feel like the thorn between three beautiful roses here today. i have to say, when you're looking at asia, it's a whole range of different economies and you can't lump japan and china into the same group. their proximity is very close, but they're two extraordinarily different economies. some of the demographics are similar. both have aging pop legislations. but we can talk about an emerging consumer-driven economy. it is something that is going to have to happen over the next decade or two if china is going to continue to maintain a decent pace of growth and if that's in

turn going to create job creation in china. i think the stronger household spending numbers that we saw in japan overnight, i think that is a sign that there is some response coming through to the fiscal packages that have been put in place. i think the judgment will ultimately be made that maybe further fiscal packages will be needed in japan, but i'm not sure it's the capacity to deliver them. so i think that the japanese story is one that i'm much more pessimistic about going into 2010 and beyond. >> james, thank you very much. what a champer. we'll have you back. we'll have you back more often, james shugg, senior economist and my favorite senior economist now that he's told us how beautiful we are. let's take a check around the markets starting with the ftse cnbc global 300 index, which is close to the lows of the day, down about 0.8%. in terms of how that translate into the european bourses,

declines, as well. the ftse 100 0.6% lower. the dax lower by 0.75%. the cac and smi down over 1% now. the forex markets are looking like this. the dollar against the yen, 89.31. 1.4540 sfor euro/dollar. sterling/dollar, just about 1.5898. chloe. >> it's the strength of the japanese yen that hammered the japanese markets today. take a look at the nikkei 225, down 2.5% and below the 10,000 level. on top of that, concerns about what the jobs numbers will be later tonight in the u.s. take a look at the hang seng, scaling back 2.8%. certainly not a glorious debut for glorious properties

debuting, down 15%. banks and mining stocks are not doing well on the back of lower commodity price that's we saw. the taiwan market is lower by 1.8%. julia. >> chloe, that jobs report has been hanging over the u.s. markets yesterday. the dow did drop 200 points now. we're pointing to -- futures are point to go a lower open. the dow is down a little bit over 10 points from fair value. nasdaq futures are down slightly. we'll see if the dow continues its drop down or if there's a reversal to those gains that we saw in september, really trying to take the pulse of october and where the market will be headed. let's take a quick look at the u.s. ten-year note yield. first the ten-yield bund yield. it's down slightly on the yield on the ten-year note is down to 3.16%. becky, over to you. >> well, it's the home straight for four cities bidding to hold the olympics in 2016. delegations from those four cities will address the

inter-national city in copenhagen. rio de janeiro, tokyo, chicago and madrid are all vying to host the 2016 summer games. barack obama and his wife, michelle, are back in chicago. but critics say it's now time for south america to host the game. will rio steal the olympic flame this year? our very own ross westgate is on the ground and joins us with the latest. ross. >> hey, becky. i can tell you, the tokyo presentation is under way at the moment. the newly elected prime minister of japan is here and has just concluded his opening remarks. it's not a bad story to tell, particularly in a global recession. they have $4 billion in the bank already to pay for the games. they have the most compact games out of any of the presentation bids. they're talking about a minus

carbon game. so on paper, a very solid, saich game. it may be too conservative and there's not much support about them locally. they're more concerns about the government concentrating on getting out of the financial issue. i don't envy them at all for coming in after president barack obama. >> so i've come here today to urge you to choose chicago for the same reason i chose chicago 25 years ago, the reason i love the city i still call home. and it's not just because it's where i met the woman you just heard from. although after getting to know her this week, he know you'll all agree that she's a pretty big selling point for the city.

>> he compared the american dream to the essence of the olympics. for instance, until he'd decided to live in chicago, he had never really had a proper home and how chicago and the diversity of it mirrored the rest of the world. a very strong bid, indeed, of course. the biggest medium market in the world, as well. it's the right time zone, but i think chicago is going to get its toughest competition from rio, extraordinary enthusiasm amongst the rio bidders. i was at a press conference yesterday with them and they truly believe they're going to win. and, of course, the biggest well known sports man is telo, the sport player. this is what he had to say. >> there are several well known games in the united states, several games in europe. now we have in asia and new mexico. but in south america, we never have. i think the moment to bring the game for this is now.

>> but, of course, to secure an olympics, you have to have more than mug and turn. what is important is that the head of the central bank has been key to the rio bid. i can't imagine mervyn king or anybody else at the central bank being part of it. he's been there pressing the brazilian economic story. the united states says they will be the world's fifth biggest country. they are now financially ready to host these olympics. becky. >> and we actually had the head of the brazilian central bank on "squawk box" probably a good couple weeks ago. it's good to see him get involved. obviously, each country, city, i should say, is enthusiastic about their own bid. what is the buzz you get out there? when which country or which city seems to have the popular vote? >> well, i think the romantics would undoubtedly go for rio. there's no doubt about that. everybody would like to go to rio, anyway, for a holiday, let

alone go for an olympic games. they have a number of things. i think actually the commercial sponsors wouldn't mind rio. the beijing olympics is a huge emerging market that is now turning mature. rio is after beijing perhaps the best next emerging story in some ways. they have a huge media market. it's the right time zone. they have a mass growing media market, as well. so that's economically speaking. and for the partners of the brazilian movement, it's not a bad story, either. >> thanks for that. we'll come back to ross westgate live in copenhagen a little bit later on. >> more worries about dwindling appetite for chinese ipos today after glorious property plunged 18% in their first day of trading.

the chinese property developer raised $1.3 million in the offering this year and analysts say that the mid size firm has no selling point and that sharp drop on wall street overnight, in the triple digits, weighed on the stock. glorious property's performance follows a string of lackluster ipos, including china south city which saw shares plunge 23% on thursday. not a glorious debut for this stock, becky. >> 2010 looks highly uncertain, according to the president's of the world bank. zoellick said the real danger is complacentsy. >> this child was told banks would increase lending. >> we started this crisis in a good position. we are very well capitalized. i've been able to expand our basic lending by about three fold. one of the issues we're going to face is over the course of the

next 12 months, we'll probably do about $40 billion or more type of lending. >> now, we'll be talking to dominick straus-kahn coming up at 11:20 cet. >> bank of america's board is reportedly looking for an outsider to replace ken lewis ceo in the short-term. reports say directors have brought in an outsider for about two years to give their list of external ceo candidates more time to develop. b of a fell 4% on thursday. today in frankfurt, the stock is trading down about 2.5%. sales of apartments in manhattan increased by 65% after buyers sat o sidelines in the first part of the year.

the prices of a condominium f l fell. but deals are taking longer to close. the average apartment stayed on the market for 167 days. >> well, there is plenty you can check out on our website at cnbc.com. news, videos and blox, it's all out there. dr cnbc.com. check it out. coming up, jobs, jobs, jobs, we'll assess whether the nonfarm payrolls will deliver another blow to wall street. >> let's give you a quick look at what's going on with the major dollar rates before we go to break. !d!d!d!d!d!d!d!d!d!d!dd

welcome back. let's take a look at top stories coming out of asia. dalian port plans a $494 ipo. they plan to offer up to 1.2 billion a shares. the deal would make dillon the first to have an ipo listing.

in the meantime, dalian ended the week 1.25% lower. the chinese markets closed today and the rest of next week for the national celebrations. becky. >> okay. let's get a check on the currency markets, joining by felix for a bit of analysis. let's think about the equity market declines we're seeing, a fairly poor start to the fourth quarter compared to the third quarter. what does that tell you about what's going on? what's the feed through in the currency markets? what with does it tell us about where we stand on risk? >> good morning, everybody. this is always a big question. we believe that the correlation

between the u.s. dollar, for instance, and equity market at the moment is lack when the equity market goes down, the dollar goes up. that shows us pretty much what happens tonight. and we think that we're going to remain for some time. >> felix, where do you see the dollar/yen going? at these levels, japanese companies cannot make any profits. >> i think it's always a difficult bat to take, but the fact is, we are in pretty low levels already and dollar/yen, there's a lot of mortgage expect ages. but we know, also, that companies have to hatch if it goes to certain levels. i think the dollar/yen is

actually has reached a level, probably difficult more to the downside. i think we're rather going up sooner or later and i still believe if it goes up, it's probably not dollar/yen which is going up. it's probably more euro which will come down and dollar will go up against the euro. i don't think -- about the yen, i would think it's holding relative levels. i don't think we go far below 90, but you never know. i think overall, if something goes lower than euro/yen. >> yesterday treasury secretary geithner said a strong dollar is very important to the u.s. do yagree? and what role do you see the dollar playing in global currencies in terms of its position now as a reserve currency? >> well, i mean, it is just that you're raising the question. it just shows up. it is a topic more and more and i think this topic will remain for the next years.

we, of course, america had to, you know, the guy in the hat to talk about. he goes for a strong dollar policy. just imagine what would happen if you would not say that. so that is very obvious that he has -- i mean, older financial politicians, they go for stabilization of the financial system. that means that the dollar has to remain somehow stable. but i thought more important for politicians is they do not like to have any currencies at all. it's not moving higher. so they will like to have a stabilization in the currencies

at all. the currency is not moving too much so that the economy can run and there's not more travel coming up. >> felix, imf and the world bank are meeting in turkey. lots of talk about global rebalancing. are the markets factoring in this global rebalancing story and the effect that's going to have on global currency flows? >> what we're going to have is i don't think the rebalancing will ever have to be moved around. but the fact swb it's changing in the currency market. we're going to get new currency pairs coming in, which are much more important. it's even less than emerging market currencies, not even 40 tradeable. there are new currency pairs coming into the market and i think that is more dominant than if you shift around investment

occurrences to cap more or less all having problems. i think the key problem for the futures is how that is going to be handled by reserve allocation when the new pair is coming into the market. >> felix, thanks very much for your input. have a great weekend, felix adam from act currency partners. here on "worldwide exchange," there is light at the end of the tunnel. that is light at the end of the tunnel. plus, the dow and s&p 500 suffered their worst one-day far in three months after disappointing and jobs farm numbers.

china's recovery, will it weigh heavily on stokes? the nikkei closing 2.5% lower today. >> i'm becky meehan. in europe, 2010 looks uncertain as it meets with the imf in turkey. >> and i'm julia boorstin in the u.s. the good news is that job losses likely slowed last month. the bad news, unemployment is still rising.

>> if you're just joining us in the united states, welcome to the start of your day in the united states broadcast live from asia, europe and the united states. dow futures pointing slightly lower. nasdaq and s&p 500 futures also just slightly off from fair value. we are going to be watching those numbers as they have been bouncing around a bit this morning. let's take a quick look at the bund yield. the 10-year bund yield is down 0.015 to 3.13%. in terms of 10-year treasuries, treasuries ten to rise as stock markets fall as they did yesterday. the 10-year note now is down to 3.15%. becky, how is it looking in europe? >> let's take a quick. the ftse cnbc global 300 index has been looking fairly weak this morning and continues to hover around the levels we've seen since we came on air. the european bourses have looked weaker this morning. the swiss markets have been

weaker. let's take a check on the individuals. the smi is down by over 1.5%. over 1% lower for the cac while the declines on the ftse and the dax are just off over 0.5%. dollar rates, we just spoke to our guests a few moments ago, but just to recap, dollar/yen, 89.34. euro/dollar, 1.4553 and sterling/dollar, 1. 35904. chloe, how is it going in asia? >> very difficult session out here in asia. the nikkei falling to a fresh two-month low, down 2.5% in hong kong today. ipo concerns, a glorious property, a mid sized chinese company not having a glorious debut at all end of the of the trading session. china, south korea and india closed for their respective holidays. a lot of unease about what that jobs number will indicate. in the u.s., take a look at the

closing scores. turning to the energy complex, nymex light sweet crude off about $1, $69.86 but on the back of the concerns with geopolitical developments involving iran, still, hovering close to that $70 a barrel. brent crude off at just 86 cents. the strong of consuktive monthly job losses is likely to continue. forecasts call for nonfarm payrolls to drop by 175,000. that would be the smallest decline since july of last year, but it would bring the total number of jobs lost in this recession to more than 7 million. the unemployment rate is expected to tick up to 9.8 ers, highest level since july 1983. joining us as a guest host today

is james bevan from ccla investment management. james, thanks so much for joining us. big day here. obviously, there's a lot of attention for this jobs number. we started off in october with a dramatic drop yesterday. what do you expect to hear from the jobs number? what kind of tone is it going to set for october? >> well, the jobs data is likely to be pessimistic in terms of the short-term outlook for people looking for work. that said, i think by november, we should beginning to see an improvement. i think there's a bigger issue for markets. if you said, well, what's been driving markets? where has the price been coming from? what we have seen is that up until the end of june, we saw a significant revaluation of people saying to themselves, we'll have to pay more to anticipate. since june, we've been following the route for earnings. and the big question the market

is now facing is what would the trajectory recover be looking at? that simply is not enough to justify the pricing of some stocks that have taken on a very optimistic where recover is going. i have to say, well, though, there are plenty of equities supported by balance sheets, strong cash flows, decent dividends all left well behind in the big charge yun since the march lows. that is where i think investors should focus their attention. >> james, meredith whitney writes an op-ed in the wall street journal today that there isn't enough credit in the system and another 1.5 trillion is going to be pulled out of the system in the next year 1/2 or so. do you agree? >> i think that's absolutely a problem which is why we have to have toss banks on the core level sheet. the levels of indebtedness have

never been fully worked through. what we have are governments coming to the table and saying, we will support a much more gradual process and the debt problem in essence was transferred from the commercial sectors and the private sectors to government sectors. that will to be worked out in the overhead and i think there will be some sort of fashioning for credit. >> let's get into some specific strategy with you. i understand you have no personal holings in these companies. >> we are actively advising our clients on the names we're going to discuss, quite correct. >> interesting to see what you had to say about european autos. we had some autos data out yesterday in the states and today here in europe. i mean, i guess the cash for clunkers if you look at the u.s. ankle is begin to go cause the

hangover, if you like. what should we take away from the auto sales figures that we're beginning to get out now. what does it tell us about which part of the auto sector, if any, are appropriate to get into at this point? >> i would make two oukzs. i'm certainly if you have two pulling numbers, i think that the pricing of automobile stock sess simply way too high and we are likely to see, in my view, a tailing off of the automobiles as the cash for clunkers programs are retired on a global basis. i think the stocks themselves count in far too much optimism. so i think almost all of european's automobile companies need to be looked at carefully. i will certainly be underweight in the sector. >> james, chloe in asia. we've been seeing a pick up in

m&a activity. you think this could offer a cushion, another bounds of shorts? tell us more. >> i am certainly of the view that merger and acquisition is going to be important. i would i think contrast the current cycle of m&a activity with what we saw in 2007. in 2007 been it was driven by cheap cash and based on financial engineering opportunities, the capacity to use that to enhance shareholder return. now we're seeing merger and acquisition activity being proposed that is much more commercial in nature that has business logic on the pinning d ed. i think that will be well received. i think, however, it is going to be better for shareholders in stocks that are taken out because the reorganization and the difficult business environment is getting taxing

for the acquirer. so my guidance would be to fully participate in the upside of m&a, but be prepared to sell after the acquisition has been made. >> james, we're going to have to leave it there for now, but we'll continue this conversation as you are sticking around for the rest of the hour. still to come, the ipo season isn't over in asia. but is it the wrong time to list? we'll take a look. plus, 22 european banks have reportedly failed therefore stress tests. chloe is 9 months old.

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welcome back to "worldwide exchange." we're going to take a look at the equity markets now. we're joined by joshua raymond. a bit more on what's going on with the ftse 100. >> very good morning to you. we're relatively unchanged. we are still lower. there is still a very big focus towards the big day throughout this afternoon. a lot of investors at the moment are positioning themselves for this. going with a few of the defensive stocks.

but the main weakness we've seen is the financial stocks and the miners. copper prices are off well over 1%, as well, and the financial stocks. so you've got the banks lower and the insurers which, of course, have had a terrific rally this week due to profit taking. we are positioning ourselves ahead of those nonfarm payroll pes joshua, we're close to that 5,000 level again. what's the significance of that? >> yes. a big significance, it's a big psychological level in the market. if you're looking at the low on the day already, we're at 5,001. so we've bounced off that level already today. and the key is whether we'll finish higher or lower than that, it is a key indicator of where we could be next week. and the nonfarm numbers will look towards it. if we get a worse number, and there's no real reason why the ftse couldn't go below 5,000.

and that's when people think, man it's not that consolidation. >> joshua, let's take another check, as well, on the miners. the big news today is that ruling from the uk takeover panel in relation to dealings between ex trat ta and anglo american. what should -- i guess it could be a bit of movement in the the last few weeks. >> there is a bit of a debate going on. xstrata share prices are lower today. they're leadsing the fallers in the mining sector partly due to the uk takeover panel this morning, but also due to the fact that they're following the money sector, which is lower as i've said today. whether or not they will come out with a bid by october 20th remains to be seen. and then if they don't, it will

start to make a pit fall in interesting debate. it could be interesting how the market is going to power the nkts couple of weeks. >> let's check in now with adam. some of the motorcycles have been closed today, haven't they? >> yes, they are the. india, and it was a bleak session for these markets. the ones that were least open, japan and hong kong. take a look at the hang seng. the index was down 580 poirchbts or close to it to 2,325. a lot of the boopging sectors were down. the chinese h shares traded on the h-share index, that was down about 2.8%. and the ipo doesn't looked

doesn't know. the stock price today was down. a lot of these that have come to on the market are moving up to their debut. moving on on the newest in asia dwra, the nikkei 225 shump can to a fresh two-month low. 2.2 billion shares would trade today in the equity sectors. we had the yen stronger once again versus the u.s. dollar to the tune of about 60, 70 bafls points where where we were sitting about 4 hours ago. this is a big problem from the equity markets. also, the september sales figures coming out.

the europeans weren't too good. double digit declines for the u.s. having said that, hyundai motor, they recorded a 2 % in september. so that stock was not traded today. we'll check on those notes on monday. >> thanks, adam. there are a few eem we'll be watching the kal dash boston fed president eric rowsengren will be talking about the financial markets and dallas fed president richard fish he will be at duke university to talk about the new global economy. that's your global stock watch. >> well, julia, you can get more news, blogs and videos on today's market-moving stories at

cnbc.com. check it out. in fact, i see julia right there. we're going to talk tosome meek southkhan very shortly. and we would love to tower

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welcome back to "worldwide exchange." in copenhagen, rio day gentleman nair wrote, chicago, madrid and are vying for the 2016 olympics. the president and his wife are back in his hometown. will rio, the favorite, steal the olympic flames this year? joining us live now from koben haguen is ross westgate with the latest. ross. >> becky, thanks very much. right now, it's tokyo who is giving their presentation. quite a tough act to follow after chicago went first this morning. a very solid, and very professional as you might expect presentation. but it was really the obamas

that injected the passion that they needed. michelle obama talked about how she grew up in the south side, how much the power of the movement would mean to the city and then the president coming in and giving this coupe degra regarding the spirit of the olympics. >> so i've come here today to urge you to choose chicago for the same reason i chose chicago nearly 25 years ago, the reason i fell in love with the city i still call home. and it's not just because it's where i met the woman you just heard from, although after getting to know her this week, i know you'll all agree that she's a pretty big selling point for the city. >> and he went on to talk about how chicago was the place that he really first called home, talked about the ethnicity, how it's a symbol of how the rest of the world should get together,

as well. but of course, we didn't know if he was going to come until earlier in the week. and we managed to ask how much different he can make if he's only here for 4 hours and 10 minutes. >> he can show his tremendous commitment, support and belief in the olympic movement and support of chicago's 2016 candida candidateure and show the respect to the members and that he wants to show and will show. and i think he'll achieve all those goals. >> there is no doubt that the members are absolutely thrilled that the president showed up. shortly after the presentation, he said, we did as well as we could possibly do. we're going back to our hotel now and celebrate the fact that we've almost had no sleep for the last week working on this particular bid from chicago. of course, then they have to

wait until around 6:30 this evening in copenhagen to find out who has actually won. >> ross, how does this process work? clearly they're going up there and giving a presentation and bringing out all the big names. once that is done, what happens snx? how is the outcome decided? >> the final presentation will be around just before 3:00 copenhagen time. and then just after 5:00, the voting will begin. now, no olympic city has ever won in the first round. so basically, to win, you have to get a simple 50% majority or 51% majority of the vote. so what is crucial is not necessarily what happens in the first round, because every city l its base report. it's then what happens to people that voted for -- let's say madrid going down the program. we don't know. let's say they duke it out in

the first round. what happens with all those people who voted for madrid, who do they then vote for in the second round? the thought is that a lot of the votes will go to the latin american countries. so it's about dissuading those with the second and third rounds about what happens to their vote once the original city goes out. that's where the lobbying becomes important. when we get down to the final two cities, we'll get the announcement around about 1830 local time. >> ross, great to see you there. chloe in singapore. how much is star power a factor for the judges to decide on which city gets to host the games? >> it's a very fair point. i think if the president hadn't come and chicago had lost, they would have said, well, it's because the president didn't show up. it's different for the united states because the federal government doesn't have any -- they're not putting any money into it. they can't get involved directly

with the games. but to make a showing was very important. we know it was tony blair's injection in singapore when london won the 2012 games which we believe was part of that. we believe it was vladimir putin up some of the games in 2004. i think now you have to turn out, you have to shake hands, you have to show the commitment. at the end of the day, what actually sways an ioc member to vote, that's very difficult to say. a lot of them are former athl e athletes. they're all individuals. so what actually persuades them at the end of the day, we don't know. but you have to have the star power here showing that commitment. i think that's pretty clear. >> well, it's tough than a general election, isn't it? we'll be watching out for that result later today. coming up, finance ministers and central bankers around the world in istanbul today, we'll

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welcome back to "worldwide exchange." i'm julia boorstin. here are some of the top stories we're watching from around the world. in the u.s., the good news is that job losses likely slowed last month. the bad news is that unemployment is still rising. >> and i'm becky meehan in europe. trillion world bank is meeting with the imf in turkey. >> happy friday, with everybody. in asia kra, concerns about the global recovery weigh heavily on stocks, the nikkei closing 2.5% lower at a two-month low. >> let's take a look at the u.s. open. the question is whether all those gains in the third quarter, we got ahead of ourselves. now, the dow future is pointing

a hair lower. nasdaq futures are up about 2.5 from fair value. s&p 500 is pointing to a lower open. let's take a quick look at the u.s. 10-year yield. the yield on the 10-year note is down 0.022 to 3.16%. becky, how is it looking in europe? >> let's take a check on the european bourses to find out exactly what's going on here. the ftse cnbc global 300 is down by 32 points, the european bourses themselves, we're seeing declines of about 1.5% for the as many, over 1% lower for the cac, too. quick check on the forex markets, dollar/yen, 89.40. euro/dollar, 1.4551 and sterling/dollar, 175881. joining us now from istanbul

where the imf is meeting with the world bank, of course, mr. straus-kahn, thank you so much for spending time with us today. i know you must be very busy. yesterday we heard that you are upgrading your growth forecast globally. how sustainable do you believe the recovery is at this stage? >> well, i think the good news is good news and the problem is that even if growth is coming back, the employment will lag behind around 10 months to 12 months, sometimes 14 months between the time where growth is rezuming and the peak in unemployment. it's good that growth is coming back, but still we have to be

cautious. moreover, there is some possibility of a double dip. i don't believe it's the main scenario. it's not the main scenario which we believe, but it may happen. and so we have to be sure it's a secure recovery before claiming victory. >> we do have to be sure it's a secure recovery, don't we? there's been a huge amount to stimulus, very low global interest rates. how can the economists be sure to get it right when they come to return interest rates to somewhere back to where we previously believed to be normal? how can they get that balance right? >> well, it would depend from one country to another. in my view, when we're sure employment has reached its peak, then it would be the right time to unwind stimulus. it may happen at different times for different companies, so it's

difficult to give a specific date. but what is sure is that it's too early to exit now. and in august when the first good news came, most governments will say, oh, the choir is over, it's behind us. it's time to unwind what has been implemented and to exit the stimulus obviously to have been too early. this was the case in g-20 in pittsburgh, the leaders agreed that they all understand that even if we have some good news, it's too early for those to be implemented. so i know that we will go on pushing the public support to demand until the private demand will take over. and so i'm reasonably confident in the scenario that we have that growth will resume from now on and that in one year from now, in most countries, the crisis will be behind. >> the coordination, the

corroboration between major economies in this downturn was i guess almost unprecedented. you raised an important issue, i think, that countries are recovering at different rates. they'll need to remove those extraordinary measures at different times, but we need also for countries to continue to coordinate the response and the exit from that response to avoid the possibility that you brought up, the double dip recession in some countries. isn't that the risk that as soon as things do tart to improve, as you say, countries may put their hands up and say, right, it's back to normal with b and then we end up in the mess we started with. >> yes, that's absolutely right. the two points are right. as unprecedented cooperation among countries and that will probably be a big thing in the economic history book in the coming decade to realize that never in the past has it happened to have such a high level of consensus and

cooperation among countries. but the second point, which is when we're talking about the exit subsidy, the risk of having the countries doing it all on their own and not taking into account what happens in other countries, it's a big risk and that's the role of the so-called framework which has been decided by the g-20 ahead of state and government to try to organize as much as possible the exit strategy when -- in due time. and it has been part of the imf to be the machinery working behind the g-20 of the head of state to have providing analysis, policy advise and also follow-up on global policy decisions which is going to be made so that all this will work. you know, one of the big draw backs of the g-7 in the past was that only it was only 7 countries that were presenting the emerging and low income countries as the g-20, but also that there were no follow-up. and so the g-7 was a bit just

out of the blue and making decisions which very often were not implemented. so it's a very important decision which has been made in pittsburgh to go on working together. but at the same time, to ask the imf to be the tool of the framework to make it possible to implement the decision made by the leaders. so the risk you're quote sg a real risk, but i'm confident that we will be able to control. >> now, the imf has taken on a much bigger role since we've had this global economic crisis, but i know not everyone is happy with that role. i know there was a protest where students threw a shoe at you. such was the force of his feeling and i believe shouted imf, get out of turkey. clearly, some people aren't happy about the role the imf is

playing. how do you respond to those kinds of feelings? >> well, you know, i used to be university professor, so i'm used to students wanting to protest. and frankly, i find turkish students rather plight on starting protest on my last question, not at the beginning of the last question. so it's normal protest and i think it's good for the imf to go to university, to go to meet unions, to go to meet the business organization to explain what we're doing and how we're doing something new compared to the past. we've obviously not been doing everything well in the past and even today, which doesn't mean we're doing everything as we should. so i'm very much prepared to listen to criticism and also to explain how the imf has changed, how much we take into account the specifics of a country, the

history, the political situation of a country, getting rid of the one size fits all policy which was a bit too much to wait. imf also taking into account the most vulnerable and trying to rebuild the safety nets which are needed when you ask for fiscal consolidatioconsolidatio. you know what it may harm more of the poorest people in the country. that's what we're doing in our program today. you need to have special resources dedicated to this part of inflation to help them to mitigate the fact of the rebuilding of the economy. at the same time, we are helping the low income countries in an unparalleled way. we are now lending at zero interest rate to low income countries, including african countries. it's never happened in the past. so this example is to show that the imf is chaenging.

i'm no spliced as having this shoe throw yesterday. >> and i believe he missed, so maybe he needs some target practice. dominique strauss-kahn, thank you so much for talking to us today, managing director of the imf fund. >> joining us now is charles lemonides and james bevan from ccla investment management is still with us. i think we should start off as returning to what dominique strauss-kahn said employment will lag growth. charles, we're waiting for the jobs numbers today. do you think we're headed toward a jobless recovery? >> well, you know, clearly, employment will lag growth. i mean, i think the economy could well be growing as we speak, yet we're seeing job declines at today's number, 160 low end, 210 high end.

it will be a big number relative to bag number. but the economy is still already growing. so you're already seeing that and i think you're going to see it for some time to come. >> james, i know we just picked up on the jobs on the lagging indicator aspect. but another point that we were talking about there, the withdraw of stimulus, clearly, it has to be done. what's the likelihood do you think it will be done in a fashion that it won't destroy the recovery that it engengerred? >> i think they're focused on making sure it takes proper root. they are certain to avoid deflation. therefore, i suspect that we will have very low interest rates for at least another year. and then only a gradual move up

towards after that. we should begin to see better jobs numbers coming forward in november or thereabouts and, therefore, what we're going to see today is sort of already in the bag 0.shouldn't come as a major surprise unless the numbers are a million miles away from what it broadly expected. but by november, we will begin to see whether the recovery is real or not. the second issue is that we're still seeing companies repairing margins through expected costs. the pressure to keep job numbers lower is very much to the front. the third issue is, of course, china. we have spent a lot of time thinking about domestic job recovery. don't forget, any policy shift i think is very important. that means the jobless recovery in the west may be part of a transfer of jobs to the east. >> charles, good morning.

this is chloe in singapore. given how far we've come in the equity markets since the march lows especially with the dow where it is, which sectors are you looking at given that we are seeing a lot of jittery sentiment over what the third quarter earnings numbers will provide along with that jobs number, as well? >> i know people are focused on the fact that we've come up a long way from the march lows. in my view, the march lows are really important as a benchmark, but not as important as more normal valuation levels. and quite frankly, i think we're way outside of normal valuation levels. we're still down significantly year over year and until we get past those short of levels, i think the whole market is really, really attractively priced. >> i think it's hard to identify specific leaders, but if i were to suggest, i would say maybe pharma.

and let's cross over live to tokyo and check in on what happened in the trading day there with makika. a very weak session there today. >> indeed, it was. tokyo stocks settled with a bill setoff today. the nikkei 225 plummeted almost 2.5% and hit a two-month closing low. the sell-off was triggered by the continuous strengthening of the yen moving in the 89 range against the dollar and the sell-off in the west. the exchange rate was expected to be around 90 to 95 yen a dollar. the approximated president of together together said the kurnlt change keep them in an extremely difficult position. >> electronic stocks which had

contributed to the ramally were sold by investors seeking to lock in profits. sony fell 5% in both toshiba and tokyo electrons over 4%. meanwhile, mitsubishi heavy industries rose 3% after it was reported that their aircraft had received the first overseas order for its new small passenger jet. that's all, back to you, chloe. >> thank you very much, kakhi. still to come, price prices have plummeted in the oouts. are we live from a recovery? i'm robert shapiro. over a million people

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welcome back to cnbc's "worldwide exchange." i'm julia boorstin. here are some of the top stories we're watching from around the world. sales of apartments in manhattan surged in the third quarter by as much as 69% from the previous quarter after buyers sat on the sidelines for the first half of the year. reports say the average price of an apartment fell about 10% from a year ago to $1.3 million. buyers were attracted by the lower prices and lower mortgage rates, better consumer confidence and the government's $8,000 tax credit for first time

hoel home buyers. but deals are taking longer to close. the average apartment stayed on the market for 167 days. becky. >> let's get a final thought now from james bevan who has been with us for the past hour. any thoughts you want to leave us with today? >> i think when we're trying to tie together what we're hearing about the economy, the uk economy is weak. be much more bulis on the global companies. about the global farmer, absolutely, i think that's ul there. i think in global bank terms, we feed to think about where one is exposed to growth. hsbc would be a bick of choice? >> quality companies like s.a.p., cash flow, paying high real dividends, that's the sort of thing i think we need to loot in these difficult times.

>> thank you so many for joining us today, james bevan, cio, ccla investment management. coming up, we'll take a look at the trading day on wall street. !d!d!d!d!d!d!d!d!d!d!d!dd

welcome back to "worldwide exchange." u.s. "squawk box" follows "worldwide exchange" for viewers in europe, asia and the united states. joe kernen is here to tell us what we can expect. joe, what have you got for us? >> we have the monthly employment report. it happens every month, it seems like. it's that time again. we have our team assembled to do the numbers, but also a preview. and then live from the labor department at 8:30 a.m. eastern time, we'll have those numbers as well as the instant reaction. we'll talk to bill gross from pimco. we'll talk to the chief of adecco about hiring trends. he's quanticoing everywhere. we'll get some job report plays, ways to play it.

ratings agent continue on the hot seat. the moody's wessel blower will be back on "squawk box" to explain his concerns about the credit ratings industry and what he claims is still happening as moody's, his former company. the markets will be all over it@as "squawk box" begins right at the top of the hour. back to you. >> joe, thanks very much. we would expect nothing less of you, lfk. >> joining us now for a look ahead, charles elementarinidies. charles, how do you think the market is going to react to the numbers today? how do you think it's going to trade? >> we had a tremendous rally and because becau because we've had these low numbers, we're likely to pause for a moment or two. >> looking ahead to earnings

season, do you think we'll see any top line growth or will it all be like cost cussing like it was last quarter? >> i don't think the issue is so much top line growth, but i think top loin stability. they're there are sore of a bellwether in term of where they are. it like lick grew in the third quarter or if not grew, is slowing. so i think you start to see that in top line stability. >> meredith whitney wrote an op-ed in the wall street journal saying he sh doesn't think there is enough credit out there. do you think that st a problem, as well? >> you know, i think the banking

system has been a problem. i think her approach to evaluating it doesn't mean that much sense to me. and i think the fact that money is being provided to the financial companies at virtually zero cost is the right strategy by policymakers and i think that's the strategy that's working and flow through the economy. so i don't agree ta that sector lr problems going forward. >> charles elementarin elementa, thank you so much for joining us. let's look at futures today. the dow down slightly a little over a point from fair value. the nasdaq is up slightly from fair value and the s&p 500 is

down a little bit more than 2 points from fair value. so be watching those jobs numbers closely. that's it for today's show. i'm julia boorstin in the u.s. >> and i'm becky meehan in europe. >> i'm chloe show in washington. >> have a great day, everybody. and thanks for wchg "worldwide exchange."