you're now watching "worldwide exchange." i'm ross westgate. the headlines, investors cautious in early european trade as president barack obama vows to explore diplomatic options. but it's not a guarantee that russia signs up to get rid of chemical weapons. >> too early to tell whether this offer will succeed. and any agreement must verify that the assad regime keeps its

initiative. >> two new iphones from apple get a mixed reception. agents discuss pricing over emerging markets. shares surge. chinese premier kicks off the summer davos in dalian. we'll hear from major players at the event. and verizon is expected to raise nearly $50 million from its bond sale and it could end up being the biggest corporate set deal ever. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. a warm welcome to today's program. plenty to get through, coming up. mining retailers help post solid growth, but will it increase pressure? the country's finance minister

joins us on a first in cnbc interview in half an hour. also, we'll hear from the cfo of the italian notebookmaker. find out why he says germany is the country to watch. but back from the brink, berlusconi's political career is not over yet as the italian senate committee delays a vote from parliament. and are we in september or sep-taper? we'll preview next week's fomc meeting. but first, u.s. president barack obama has delayed the congressional vote on military action in syria and will instead pursue a diplomatic path. >> over the last few days, we've seen some encouraging signs. in part, because of the credible threat of u.s. military action as well as constructive talks that i had with president putin. the russian government has indicated a willingness to join

with the international community in pushing assad to give up his chemical weapons. i have, therefore, asked the leaders of congress to postpone a vote to authorize the use of force while we pursue this diplomatic path. >> the white house has both france and britain backed the decision to try diplomacy. russian president putin has once again warned against the unilateral actions for the oois. >> undoubtedly, it can function, it can work. but only in the event we hear from the american side and those who support this rejecting the use of force. it's hard to make any country, syria or any other country disarm on a unilateral basis if an attack is being prepared against it. >> all right. first of all, the president delayed the congressional vote. congress decided they're going to delay the vote, didn't they? >> exactly right.

and this was a speech originally meant to rally the american people to rally a vote on action in syria. now the president says they've agreed to delay this vote. let's be frank, this wasn't a vote he was likely to get, anyway. at least not in his favor. so you have the international community almost breathing a sigh of relief that they have more time to figure out what to do about syria. but now they're going to be meeting tomorrow in geneva, secretary kerry and his russian counterparts will be talking about this. how do you get what could be as much as 1,000 tons of chemical weapons out of a country that's in the middle of a civil war? >> the resolution that they're talking about tabling, was this a political device to try and show the russians up? >> i think there's definitely political posturing on both sides of this. the russians, you're hearing president putin saying any threat of military intervention will take this completely off the table and we'll be back where we started and the united

states is saying we're certainly going to use force to deal with the russians if this is not something that's really for real. i think at this point you're seeing the u.s. as well as the international community come to some kind of on consensus as to whether or not this can be done, can they remove these chemical weapons and in what time frame? >> in the meantime, this is what this u.n. report is saying. syrian forces have massacred civilians, committed other war crimes and widespread attacks to recapture territory in recent months. this is the u.n. human rights investigators. they say opposition forces have committed war crimes, including executions, as well. and that is what they said in the last report of july 15th. they said these violations are on all sides acting with international law. they feel justice is imperative.

>> pretty damning words from the u.n. i think the only people that seem to have a problem with this are the gulf arabs. they're saying determinant measures need to be taken against the assad regime. now they seem to be the loan voice in the woods. >> and it's such strong comments from the u.n. i'm wondering whether that changes the public's view and narrative. >> well, remember, it's pretty much a govern whether you agree or disagree as to whether assad used chemical weapons. everyone seems to be at the same place. they agree on chemical weapons for use. whether you're in the uk, america, in europe, no one seemed to have the political will to do anything about it.

>> hadley, for now, thank you. on the heat map, pretty even stevens this morning, as you can see. so about five to four, really, advancers outpacing decliners at the moment. the ftse 100 yesterday was up over 50 points. we tried to start firmer this morning. at the moment, just down nine. this is despite, of course, the u.s. having its second day of triple gains on the dow. xetra dax is up 0.25%, cac 40 down 0.25%. we're waiting to see what the senate committee does as far as mr. berlusconi is concerned. apple stock in frankfurt down 3.75%. arm is doing fairly well. app apple is not so hot, as you can see. the country is failing to fire the imagination with its

so-called cheaper phone. meanwhile, nokia, as you can see here, up 2.5%. burnsburg listing the country to a buy claiming it's well placed for a looming battle in the telecom space. keep your eyes on the bond rates, as well. treasury yields have been heading higher. the unemployment report will be out in a few hours' time. sterling/dollar, pretty strong, 1.5729. dollar/yen, still on the 100 mark exactly where we were this time yesterday. and euro/dollar, 1.3259 in a

24-hour period. that's it in europe. sixuan is with us from singapore. >> thank you, ross. still some consolidation in today aes trade. despite today's big manufacturer confidence at a four-year high, the nikkei 225 gave back its morning gains ending flat to some profit taking for recent outperformers such as those olympics related stocks, but the index still gained about 4% this week so far. the shanghai deposit, higher by a modest 0.2% and has gained nearly 5% this week. we know china's bank loans in august beat market forecast and the country's total social financing almost doubled a month ago. it assured markets that china will not hold back its reform. all these helped market sentiment in the region. and on china's factory, dealmakers staged a valley while the latest industry report

pointed to a better environment. we saw weakness in asia's tech space. apple suppliers followed apple shares lower after the somewhat disappointing losses. apple's major assembler tumbled almost 5% off the hong kong bores. some other componentmakers in taiwan, south korea and japan took the brunt of the selling. the new i phenomenon phones are reportedly compatible with standards of china mobile. china mobile shares lost 0.8% today. back to you, ross. >> thanks for that. now, can money make us truly happy? that's the question robert gadelski posed in the new edition of this book, how much is enough? it's a study into modern capitalism where they redefine the relationship between wealth

and happiness listing seven steps to a good life. thanks very much indeed for joining us. why pose the question? why start with this project? >> well, because, as you said, you asked the question can money make us happiness? and the evidence is that it doesn't. and that in itself is a question we should be asking. the evidence we get is that we get rich and richer, but we don't get any happier. >> is this the start that started off with the idea if you transmit growth, it's all this idea to again rate growth one generate sort of happiness? >> yes. he did think that. but what he also thought was as we got to a certain point of wealth, then we would start working less because we would have enough.

and what set out going was we have got a lot richer since he wrote. but it hasn't actually dropped. >> why is that? >> well, there are a number of possible reasons. one is that we have an insatiable desire for more and more because we're comparing our situation with other people and wanting more than them. another reason is that basically the job market is controlled by employers, not employees, so people that have the power to set their own conditions and terms of work, these are both explainses we look at. >> and what is it in the end that makes us happy? is it health? house, measure, friendship, nature, a good life, once you have enough money for those, you have enough. and to carry on working for more -- >> there is actually no, you know, how much is enough.

i looked and said, well, how much is enough? >> it would be followish to give a figure because obviously it's going to vary. >> you could have done a nice -- i don't know, you could have done some quantum physics mathematics equation. >> the question to ask is do i have these basic goods? and if you've got them, you have enough. >> what are we supposed to do with this knowledge? >> we're supposed to organize on our life in such a way as r, our collective life, that we don't just go on more and more and more and more. at the moment, we're on a treadmill, a work treadmill, for what end isn't contemplate. we don't even ask the question. well, what are the ends of the -- what's the meaning of life? it's just more and more accumulation.

>> if you ask the question, what makes us happy, you can't get a precise answer. it's just a state of mind, a feeling. to say our goal is happiness seems rather vacuous. >> we brought this out, of course, at a time when it's fairly low. should governments be trying to do more than achieve growth targets? is that what you're suggesting? >> yeah. the happiness index is good in a sense. it's a sign that governments are trying to move beyond gdp. but we think it's the wrong index. we should be looking at concrete goods like health, education. >> focusing on the nha is the right thing even if we go about

it the right way inspect. >> health is definitely a basic human good. >> yes, but, again, you can have too much. if you say our aim in life is to get everyone to live to be 200, that does not seem to me to be a valid definition of health. and so you can always have too much of everything. it's to have enough of these basic goods so that you can say this is a -- this is now a good life. that's the aim of it. >> have you had response from policymakers to see we're on to something here? do you have any hopes that this might feature into -- well, people are interested in the idea. there is a satisfaction with what's going on. and, you know, in a slump, satisfy extends to grow. people tend to ask these questions. why are we working? what's the purpose of on it all?

>> the and the other thing is expectations, right? defining what people should expect about what makes them happy? >> our goal is to change the climate in the long-term, not have an -- >> no on, but the part of that is people think if i own a lot more money, i'll be happy. people are striving. we have to change what people strive for? >> this is our book. there are a lot of books that have come out in the last two or three years. >> the other ones, they're not fear as good. >> of course not. it's an indication. >> for one thing one need education for measure. there's a great fear. people say, if we give our work for less, we'll be bored. we won't know what to do. that's because people at the moment are educated for jobs. >> holiday. a lot of people say -- >> that's the theory. and then the idea of leisure comes in as breaks. you have breaks from work.

but we want work to be breaks from leisure. >> well, and the education is interesting because some people said the education was developing at a time when people would go into very regimented work, i.e., into factories, automotive processor offices that would clearly be a system of structure. and that's the current education we have. life is changing. you know, we need to educate people to be able to look after themselves, to be responsible, to be much more entrepreneurial. do you think that's fair? is that would help? >> that's responding to the needs of the job market, for sure. but it's not responding to needs of life. >> no, it's not. it's responding to the fact that people have to be prepared to move around. >> and it's self-reliant, come back to your point about -- >> what we need to do is educate people for leisure. you know, to a world in which work is going to occupy an increasingly small proportion of their time. that's what we're not doing. >> and, you see, the thing about

multi tasking people is actually the job security has declined. jobs are much more insecure. and one of our basic goods is security. >> you see people are going to be working less, they're not. retirement ages are going up. >> the long-term trend has been down. it's true, it has petered out in the last five or ten years, but people are working less, not a lot less, but less. >> the people at the top, the workaholics, they work 60 hours a week or more on. and then you ask, why are they working more? they have more than enough money. then people at the lower enare finding it hard to get jobs. >> we're a time machine, right? look, it's a fascinating subject. thanks so much indeed for coming in to talk about it. and thanks very much.

>> thank you. >> thank you. apple's iphone 5c may have disappointed investors, but we'll get the latest from beijing with eunice, after this. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker.

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z. you a wait a year for a new apple iphone and two become available. apple used an event in beijing to launch a cheaper version or a value version is probably how they described it. the 5c will be unashamedly plastic and comes in the range of five bright colors in a move to allow apple to compete with android phones in emerging markets. eunice has been at that event in beijing. eunice, people are saying the phone is not cheap enough or it's gon going to cannibalize the more on expensive end. what is the reaction that you have heard? >> well, it's a little bit of both. i mean, a lot of people here have been talking about how the 5c is still very expensive. there is a joke online that said

that we thought that the c would stand for cheap, but it stands for costly because the price isn't really low enough to make much of a difference in terms of capturing a different segment of the market here. a lot of people had expected that apple was going to launch a budget model, a cheaper model to try to expand their customer base here, but that really didn't happen and it's leading a lot of people to believe that perhaps that is the game plan, that apple wants to stay at the premium end, it doesn't want to tackle the low end part of this market, ross. >> yeah. and at the same time, we're waiting, really, for them to tie up a formal deal with china mobile. where are we now with that? >> well, that was really interesting because separately, i mean, the event itself with apple was kind of a snoozer. not a lot happened. it was a replay of what happened in the u.s. despite all the buzz around it. separately, then, we were able

to confirm that the chinese regulators did, indeed, issue a license for apple to go ahead and create the iphones which work with the china mobile wireless standard technology. and that was really interesting for a lot of people here and it's created quite a bit of buzz because that is another final step for apple to be able to set its hand sets, it's iphones and particularly the 5s and the 5c on the china mobile network. so people are very hopeful about this. i called china mobile, the pr person declined, wouldn't confirm or deny the information, but did say that they're in the process of working out a deal with apple, which as you guys know has been going for years. everybody is hoping apple will be able to close some sort of deal with china mobile because it is the largest carrier in the country and has access to 700 million subscribers.

ross. >> and surprise taking something of a drubbing today. they assemble the new iphone 5c down nearly 7%. there's the other stocks, you can see, as well, off 4%. let's get more, as well. stay there, eunice. also joined by wietek lewis. thanks for joining us. let's pick up on the china mobile side of it. we know eunice is explaining why apple needs china mobile. how much does china mobile need apple? >> hi, ross. china mobile is the only telco within the big three in china that do not carry iphone. so china mobile definitely needs iphone to compete with the other guys. much has been said about the 14 million subscribers that china mobile has, but the fact is this, only one-fifth of those users are on 3g network.

so what china mobile can do with the iphone 5c is that they can convert the existing feature phone users into samsung users. >> yes. so, look, is this important for them, as well? i mean, how much do you think sales of iphones in china are going to increase? >> these are now forecast in 2014, we expect iphone to increase market share by almost 24%, primarily driven by iphone 5c. >> wee tek, this is eunice in beijing. how encouraged are you by the fact that the chinese regulator, the ministry of industry and information technology has on their website posted that information that they have granted the licenses to apple to run some of those iphones on the

china mobile network? >> that's actually been a long process to convince apple to adopt china mobile's proprietary wireless technology. so, yes, it is exciting news for both the consumers in china and for china mobile itself. >> and wee tek, with the low-cost iphone, you know, the people are saying it's too expensive. let's get to your view, though. is it going to sell in other places like indonesia, vietnam? and what is the market for this? >> okay. it's not a cheap phone. it is a cheaper iphone. so i think it is not to apple's advantage to compete in the lower end segment. there's always -- to compete in that particular category.

so i think the iphone 5c is not for that segment nor is it met for markets where consumers are buying the product at full price without contracts. what is mentioned is that what is important for the iphone 5c is that the telcos to bundle together with the iphone 5c. if you look at telcos in emerging markets, the revenue from voice and text are declining. so telco's banking on that basis, so it should drive revenue. and if you look at any online matrix, you will see for iphone users spend more time online and more money on services as compared to android users. >> and, look, just sort of rapping this up, is the basis

fact going to be that android phones are still going to dominate? >> definitely. it is our forecast they will have almost 70% of the total market even in 2014. but the smartphone market is growing almost 24% in 2014 compared to the previous year. so there is not -- growth. >> all right. thanks for that. joining us from singapore, eunice, always good to see you. we'll catch you a little later for now. thank you. now, i don't know if eunice has one of these, but if your idea of a good time is to solve a rubik's cube, bang out your time on your iphone or unleash your creativity on an etch a sketch, the largest ever lava lamp will

be unveiled. we want to know what is your favorite retroaccessory? e-mail us, who wouldwide@cnbc.com, or tweet @cnbcwex or direct to me @rosswestgate. but first, we'll get the latest unemployment report out of the uk. this is a much more important piece of data since a 7% unemployment rate became a threshold. we have the unemployment data, as well. let's bring that to you. the jobless claims down 32,600 at 4.2% of the workforce claims to forecast at 20,000. so that is a little better than the claimant rate was forecast at 4.3. the wider unemployment figure is the one we're most interested in. july to the three months of july, unemployment down 24,000.

the rate, 7.7%. we were 7.8%. that's a nudge down. sterling immediately reacting to that. 1.5808. the average earnings was 1%. it was forecast at 1%. so unemployment is reducing and employment is increasing. unemployment rate is notched down and average earnings have stayed flat. so that takes us a notch closer to one of the bank of england's key knockouts. remember, at the moment, the bank of england's forecasting we're not going to hit that for about three years. and gilt yields are ridesing. they're up to -- the ten-year gilt yield is now up to a ten-year high of 3%. sterling as you can see, up to a fresh seven-month high against the dollar. we have a tick down in unemployment, the numbers better than expected and the markets are deciding we're going to get to that level quicker at the moment than the bank is forecast.

so we are going to challenge this forward guidance. of course, if the markets decide forward guidance isn't worth very much, will that be more? the uk economy seems to be doing exceptionally well. they have exceptional pmis of any sector in the world at the moment. very unexpected. the uk as important as perhaps the employment report in the united states because of the bank of grnd's kick out. we'll keep our eyes on more in that reaction to that, as well. still to come, as well, it's the world's biggest copper exporter and investors, but can chooil sustain growth? the country's finance minister joins us in a first on cnbc interview right after this.

the u.n. finds evidence of syria war crimes, but are un able to on chemical weapons use. president barack obama warns there must be a guarantee on the

russian deal to give up the chemical weapons. >> it's too early to tell whether this agreement will succeed. and any agreement must verify that the assad regime keeps its initiatives. but this has the potential to remove chemical weapons without the use of force. apple shares are down. and verizon is expected to raise nearly $ 50 billion from the planned bond sale and investors flock to the offering which could end up being the biggest corporate sale ever. as far as union y'allan equities are concerned, fairly flat. the ftse we'll talk about in just a section. down 0.1%. big reaction in the pound and gilt. xetra dax off 0.3%. the cac is down 0.1%. the ftse mib is up 0.7%.

now, on the bond markets, really, focus right now is on gilt yields. gilt yields are up to ten-year highs. sterling is above 1.58 against the dollar, as well. big move higher after a better than expected employment report. we did go over 1.58. the claimant count, much less people claiming unemployment benefits than we thought. 32,000 was expected to be around 20,000. july was revised, less people claiming unemployment in july and the unemployment total dropped by 24,000 in total. the rate dropping 7.1, down 7.7%. and, of course, the reason that's important is we want to get the rate down 7%. markets clearly believe the guidance is keeping rates low. it isn't going to be met because the unemployment rate is going

to go much quicker. we've also been looking at syria this morning on. and we've had this u.n. report, which covers the period may 15th to july 15th. it does not cover the period about the less use of chemical weapons. but they say the syrian forces have mass occurred civilians, bombed hospital ones, committed other war crimes and attacks to recapture territory, as well. they say opposition forces including islamic fighters have committed war crimes, including shelling neighborhoods. the u.n. says the perpetrators of these violations and all sides act in defiance of international law and refer to justice is imperative. we'll get to more on that. >> right now, let's talk about chile. it's driven by its mining sector

and strong retail sales. the emerging markets takes the p he so under pressure. can the world's biggest copper market sustain? joining us now is the chilean finance minister. let's talk about copper and concerns about a weakness in chinese demand. how are you going to deal with that? clearly, it's a massive exporter for you. >> well, absolutely. we have been able to diversify away from copper in the early '70s. expert revenue was about 0.75% copper. now we're about 50% copper. but still, very dependent on copper. and, you know, not only in terms of exports, but also in terms of revenue. we have been able to diversify away from mining revenues and into a more generalized and broad based revenue base.

but truly, we are suddenly following very closely what's happening in china. we have to get used to a china that grows closer to 7%, 7.5%, and not the 9.5% or 10% that happened for many years. this means lower demand for commodities and a particular lower demand for copper. we certainly can live with it. we're not seeing, you know, a slump in the copper market on the copper price. current copper prices around 3.20, 3.30 per pound. our, you know, something that we can certainly live with. what this means in terms of growth, growth is affected by this, but it's also affected by another factor by what's happening in the developed world. we're seeing better signs in europe, particularly here in the uk, and we know the uk is having an economic revival with the signs which are, you know, very

much more optimistic than they were a few years ago, even a few months ago. and also, what's happening in the u.s., the u.s., you know, has a recovery. it's not a, you know, very aggressive or solid recovery, but, you know, things are looking slightly better in the u.s. and we are, though, concerned with qe, tapering. this is something that is -- you know, not only chile, but the emerging markets have floating rates, floating currencies, will be under some kind of pressure from the taip tapering of qe. >> the tapering concern in general, because clearly, you know, emerging markets are concerned when qe launched. they saw a rise of evaluation in currencies, and in some ways, if we take some of that rise back out, which is what we've seen, that may be a good thing. is it not the direction of travel that concerns you, but the volatility? >> it's -- you're right. we were critical in part of the

early rounds of qe and, you know, we were very concerned because our currencies were under pressure. but under a different kind of pressure for appreciation. and that was hurting our export sectors. now the correction that has happened since then, at least in terms of chile, it's about 6%, 6.5% correction. like other markets in india, it's significantly higher, the depreciation. we regard this as healthy, the correction that has happened. but, yes, we are following it very closely because the markets react, you know, with a lot of -- with some nervousness at the prospects of qe gradual demise, gradual tapering. meaning that, you know, the $85 billion that are put into the -- you know, into the economy every month will decline. we don't know exactly when or on at what pace, but it's something that markets are getting prepared for. >> yeah. and look, while you face that

pressure and go back to this point about china and slower demand, as well, presumably, you have to reign in your expenditure plans a little bit. because what's key at the moment for foreign investors and emerging markets is that those with excessive deficits are getting hammered by emerging markets. presumably, you're going to have to be careful about your spending. >> well, yes. and fortunately we have a fiscal policy that doesn't react to the short-term movements in corporate prices or in revenue. we spend according to long-term revenue. this is what we call a structural balance rule. and this is something that the markets understand very well and put physical policy in a long-term framework, in a long-term horizon, it provides certainty for people that are investors, economic agents and so on. but you're right. in an economy where corporate

prices take a downturn, certainly it will affect the ability to spend and we, for example, what we do for fiscal policy, we convened a panel of experts to tell us what the long-term corporate price is and we take the corporate price to make revenue projections. based on those revenue projections and not on the current copper price, we make our expenditure calculations. and in the last -- i can tell you over the last three years, we've been in office with the government, government spending has increased by about 1 percentage point less than output. and this is about 4.8% increase in government spending. on average, we probably will see something lower than that in the budget that we will unveil and send to congress by the end of this mop. >> minister, good to talk to you. i hope you drum up the interest you want while you're here in london. thanks very much. >> thank you.

thank you very much. we've had a couple of excellent days here in london with the business community, with government, and today we had the honor of inaugurating the london stock exchange. >> great. thank you, minister. thank you. >> thank you very much. >> now, over the corporate news, shell is reportedly putting a stop to its $13 billion refinery project in china. the tie-up with china national petroleum will be suspended because of an apparent lack of political support. the plant would have produced 20 million pounds of crude annually. >> and the main shareholder uralkali is in talks to sell its stake. the russian company was dropped out of the part with become belarus. he hopes it will resolve a bitter conflict over the giant's

perceived betrayal. sticking can commodity webs the aluminum price hit a low in june weighing on rusal, which posted a net loss in the carter. we caught up with the rusalceo and asked him about if state of the economy. >> we have a lot happen in 2008 and 2009 about transportation sector collapse and we have a lot of material which found its way to warehouses, still there. quite a lot. but now we have a very good consumption for the last, you know, four years. even this year, we have consumption. we expect consumption above 7%. it's to be better. the markets, you know, may show

a lot of new challenges. no one knows how it would be. so fears so far, but fears could drive the market, as we know, as we've seen in the past. but in the same time, you know, our economists emerging market economists, they're stable. of course, we have currency fluctuati fluctuation, but in reality, you know, our people need service. cars, home, foods, we're a growing population. i think, you know, finally ever since we settle, it will keep the growth and the stable economic outlook for the next five, ten years. >> for more on that interview, head to cnbc.com. find out what the russian billionaire and ally vladimir putin says about the relationship with rusal. staying with commodities, with the resource quarterback mongolia sent the head of its

cabinet there to drum up support. the key foreign investment law threatens miners elsewhere. bernie sat down with its minister and asked what would -- when that reversal would happen. >> now, it worsens because we're trying to establish for foreign business. and without foreign investment, it's difficult for mongolian development. all politicians are looking at this declining foreign investment to get flowing. it's pressure to think again and mongolia is becoming more and more open. and just to also saying is not enough. we need to act. and i am also hearing goodness for that just this week we

cabinet meeting, government, we are going to issue new investment law. and this law is passed through parliament. the main conceptualizers of this law is that we are no longer going to divide in -- >> so it's going to be at least in this new system, it will be -- everybody will be in the same pitch or the same field. >> yes. >> do you fear, though, that foreign investors who have shied away since the law was put into place will worry about a country that can change policy so quickly? we tried policy on, it didn't work, so we will go to this that's why we put special clause into our new investment law. all members of parliament, it's only to change investment law. we have sh kind of law, a couple of this laws and it's almost impossible to change this kind of laws. >> mongolia has always been

considered a land that was very, very rich and will always be very, very rich in resources. but because of internal politics and perhaps flip-flops, has never been able to realize the potential. now that you have that kind of political stability, do you think this is the open? do you think this is the starting point of that -- >> we hope so because really want to give message to rest of world that mongolia is open for foreign investors and this is high time and it will continue, predictable and sustainable for all foreign investors. there's some disputes between government and our piece project, sch ch is our copper site. and we're going to discuss it. we are going to discuss it sitting around the table and that's a project that's going to give some kind of -- to continue to shift second phase. and the next issue is that we're going to give -- for all this

gold miners. because in the past, because of this law and particular environment, there's some kind of -- and government is going to solve this problem and gold miners are going to enjoy, also. they somehow are going to continue their exploration. >> that's from dalian. meanwhile, on the agenda tomorrow, we'll get central bank policies galore, indonesia and the pill philippines all set to come up with data. india releases cpi, korea's bok decision will be up, as well. we went out and asked people a simple question:

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stephane has all the details. how is that going to go down? >> not yet. >> not yet. >> not yet, ross. we are expecting two announcements. first of all, we are expecting new targets for budget deficit, of course, but also for the economic growth in 2013 and '14.

yesterday, the finance minister warned that the country would need an extra year deficit below 3% gdp, which means it will be in 2015 instead of 2014. and in the meantime, we are expecting, ross, the government to increase slightly its growth target for this year. after the good surprise we had in the second quarter, remember, we had an increase of 0.5% for the gdp. and based on the forecast for the third quarter b from the bank of france, which is expecting on 0.2% of growth, that's to compare with a much weaker target for this year. back in april, the government was expecting the growth to be at 0.1% for this year and is.2% for the next year. now, in terms of public deficit, the target 3.7% of gtp for this year and 2.9% for the next one. so that the first top of the announcement, we also expecting today, ross, some details about the taxes and cost reduction

plan. basically, that's the tax hikes for the next year would be very limited. we don't know yet what will be the scale, the original plan was to increase taxes by 6 billion euros for the next year and to cut spending by 14 billion euros. now, of course, the question mark is how the government is going to reduce the deficit without increasing the taxes. according to a recent survey, 69% of french people believe that the government won't be able to make a fiscal pose next year. that's the csa survey. we'll have the answer this morning from the budget minister. >> all right. thanks for that, stephane. we're also hearing local media reports, stephane, that they will revive down the 2013 growth forecast to 0.9% from the previous forecast of 1.2% and

keep the 2013 forecast unchanged. this is a local media report. it's just come out while you were speaking. >> yeah. the target for this year was 0.1%, but it was above the average target price for economies, because most in paris believe the government won't be able to have a positive growth this year for france. so what probably the finance minister and the budget minister will announce today is that they stick to the target growth for this year, but it will be what's expected for target economies. next year, perhaps we will have a lower forecast than the original plan. >> stephane, thanks for that. we'll take a short break. the second hour of "worldwide exchange" coming up right after this.

you're watching "worldwide exchange" been i'm ross westgate. the u.n. finds no conclusion in syria on the use of chemical weapons. investors are cautious in early european trade after u.s. president barack obama says there must be guarantees that russia signs up to a deal that syria gives up chemical weapons. >> it's too early to tell

whether this offer will succeed. and any agreement must verify that the assad regime keeps its initiate ifs. but this has the potential to remove the threat of chemical weapons without the use of force. asian supplies sink on doubts in emerging markets, but shares of the chip designer are rising on the news. and remember vison is expected to gain $50 billion with its bond sale. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. if you've just joined us stateside, a warm welcome. we had a second triple digit gain for the dow yesterday, the best two days in three months. right now, up four points fair value from the dow. the s&p has been up six days in

a row. right now, the nasdaq, trading up at a 13-year high, just a point below fair value at the moment. the s&p is trading on fair value. so it's all up for grabs as far as futures are concerned. european equities, meanwhile, a little mixed this morning. the ftse 100 is down 0.1%. the ftse mib is up 0.5%. a t bill auction is coming out fairly shortly. the movements this morning, though, so far has been in uk assets. we had a better than expected employment picture out this morning. down 30,000. the unemployment dropping 24,000 in total. the rate, more importantly, nudged down 7.7% from 7.8%. now we know the bank of england is saying a 7% rate is a knockout for its guidance. it doesn't think it will hit that until 2016. markets now betting, of course, that we'll hit that a lot earli earlier. we were up to 3.04%, now at

3.01%. the spread between gilt and yields over here hit 100 basis points for the first time in they're years, as well. we did get up to 1.5827. meanwhile, dollar/yen still around this 100 mark. we're exactly on this set point yesterday. and euro/dollar, just below 1.33, still very much in the ranges. that's where we stand in europe. sixuan is here to recap the asian session for us. >> the nikkei 225 gave back its morning gains ending flat. to some profit taking of recent outperformers such as those olympics related stocks. but the index still gained about 4% this week so far. and the shanghai composite closed around its three-month

ties. and more positive economic data. premier league assured markets at the dalia economic forum that china will not hold back its reform. some fuelmakers surged limit up by about 10% while the latest industry report pointed to a better supply/demand environment. but asia's apple suppliers followed apple shares lower after the new iphone launches. taiwan stocks tumbled today on the boards. some other componentmakers in taiwan, south korea and japan took the brunt of the selling. the new iphones are compatible with china mobile's wireless standards, but no official deal announced yet between the two. china mobile shares lost 0.8% today. back to you. >> all right, swiixuan, thanks r that.

we'll keep our eyes on syria, as well. president obama has been taking his case for action to the american people. in a prime time speech tuesday night, he said he'll put off a military strike to work with china, russia and u.s. allies on a diplomatic solution to try and force syria to hand over its chemical weapons. he says the syrian regime's chemical attack is a danger to military security and violate tess world's conscious. the president has pledged not to send any u.s. troops into syria, but will order them to stay in the region to keep pressure on president assad of syria. >> let me make something clear. the united states military doesn't do pinpricks. even a limited strike will send a message to assad that no other nation can deliver. i don't think we should remove another dictator with force. we learned from iraq that doing so makes us responsible for all that comes next. but a targeted strike can make assad, or any other dictator,

think twice before using chemical weapons. >> the president addressed critics who says the u.s. shouldn't get involved in other country's affairs. he says while america isn't the world's policemen, it should act when international standards are being violated. hadley is with us in the studio, as well, with her own assessment. so we've now moved from the imminent strike into diplomatic and chemical weapons inspections. >> exactly. and we're basically waiting, once again. we're going to be waiting on this meeting between secretary ke kerry tomorrow in egypt. we'll hear what the plan is, if there is a plan, how they could go and get a thousand tones of chemical weapons out of a country that's in the middle of a civil war. human rights inspectors are saying there are obvious atrocities that have taken place in syria whether those be the rebels or syrian forces. several accusations there. >> they have come out and said

there are war crimes? exactly. >> and it's worth pointing out on this went up tomato july. it does not cover the period of alleged chemical weapons. >> right. and you also have to remember, obviously, it's been two years, 100,000 people are dead. also, the fact that these weapons -- not weapons inspectors, these u.n. human rights inspectors have never been allowed inside syria. though they're taking all this information from the refugees coming into lebanon and turkey. >> one presumes, though, they wouldn't make that statement unless they were confident. >> exactly. but it does mean it's a much more complex picture than we can tell at this point in terms of who is doing what to whom. secretary kerry was saying our gulf allies. if they are frustrated by the fact that there is no u.s. strike, that the u.s. doesn't do anything about the syrian situation, they could continue to arm rebels. and as well, the russians have made no statements that they will stop any of their defense contracts with syria at this

point. so, you know, there's no indication that any kind of funding of these weapons and moving the weapons into the country is going to stop. >> yeah. so where does that leave us? that leaves us waiting? >> it leaves us waiting and it basically means this argument is still about chemical weapons in syria. we're not talking about going in and any kind of regime change. even though these atrocities may well be taking place, that has nothing to do with what the secretary of state is going to be talking about tomorrow. >> thank you. meanwhile, the chinese premier, his key note speech at the world economic forum in daily ya, china, which gathers leaders and decisionmakers from top ranking multi national countries will keep you updated. that's the latest. he's not speaking at the moment. at the same time, the other big event in china today has been launch of apple's low cost phone, which there's some concern the company's aggressive

drawing into china may fall flat. the new iphone 5c may fall without a contract. we'll get more from beijing from eunice. we'll talk to the chief investment officer to find out what he thinks of the stock. at the same time, we're asking you this monk, do you buy the new low cost iphone? it comes in a range of plastic colors. go online at cnbc.com where you can vote in our latest poll. also, verizon is expected to sell between $45 and $49 billion in bonds to make it the largest corporate debt deal. the price guidance is virtually unchanged from the initial suggestions. verizon stock in frankfurt is up 0.8%. for more, we're joined by brian

reynolds, chief market strategist at rosenblack securities. brian, good morning to you. how attractive is this verizon debt? >> well, to the pension funds in the u.s. that need to make an above market yield, it's very attractive. right after the vodafone deal was announced at the start of september, verizon debt yield rose between 50 and 90 basis points. in that environment, that type of a rise would attract a tremendous amount of borrowers. rumors have it that they have over $90 billion worth of bids for this deal. and by the time it prices today, it wouldn't surprise me to see over 100, maybe even 120 billion worth of bids. it will be vastly oversubscribed. >> what will that mean then for where the yield ends up? >> it means it will be a slightly above market yield, probably 50 -- you know, probably 50 to 75 basis points, depending on which tranch of the deal you're looking at.

so on a relative basis, it's an attractive bond for pension funds that needs to get extra yields. it's still a very low yield. even with the rise in yields we've seen this year, the yield is still very low. bonds aren't a great investment. but if you're a pension fund, this is pretty much where you need to be. and the credit funds that limit long-term capital management that pension funds are still hiring, they're viewing this as an extremely attractive relative value. that's where they're going to pour money into it. >> yeah. we got the sprint deal, the 2e7b-year portion of sprint deal came in at 7.75, that was over the 7.5% hurdle that many pension funds have as their mandate to make. that still looks pretty expensive or pretty cheap depending on your point of view for that type of company. >> this was even more instructive of what type of a credit boom we're in in this verizon deal. because sprint came last week right after their chief

competitor, verizon wireless, said it was going to become more dominant with the acquisition in full by verizon. sprint came to the bond market and southbound asked to borrow $4 million. the investment demand was so strong we ended up giving them 6 6.5 million. demand was so strong, it ended up being the biggest junk bond deal in over five years and the yield was only a little bit more than the typical bogey for a pension fund. that tells you we're in a tremendous credit boom and the verizon deal solidifies that deal. >> and this boom, with higher treasury yields, as you say, this credit is going to increasingly focus presumably more on -- investors are going to move out from the government space into corporate space, are they? >> exactly. credit booms become more intense after yield rise.

so this feels to me like 1995. when four years into a credit boom, after yields have begun to rise, we started to see the telecons led by world come start to get active in the credit market. and it shifted into another higher gear and the result was terrific stock price performance. so the entire market, from '95 to 200, and it really feels like we're on the cusp of that. we're shifting from what's been a pretty good credit boom the last 4 1/2 years to when that's going to shift into a higher gear. >> thanks very much. for now, stay there. brian reynolds. we also just got the latest italian debt auction results. they've been selling is a 3 billion treasury bill. the average yields, 5.509%. it was 1.34% on -- sorry. that's the flexible treasury bill. the 12-month average t bill is

1.4% versus 1.35%. the yields have backed up and we're still waiting for this senate committee hearing into whether they decide to kick berlusconi out of the senate. we'll have a discussion about that fairly shortly, as well. but yields are a little bit higher for the first time since 2012. spanish ten-year debt has been yielding below that of italian ten-year debt, as well been more to come on italy. at the same time, the chinese premier league there's an economic speech in dalia in china. we'll keep you updated, as well, with his comments. as i mentioned, italian lawmakers are delaying a vote in the senate. our next guest will tell you what continued political turmoil means for the economy sxin investors right after this.

i've just had an italian auction t bill come in moments ago. it was higher than august yields. 1.3 4/%. we'll talk more about that in a few seconds.

right now, let's recap the headlines for you today. and show you where we stand on the heat map at the moment, as well. stocks at the moment are fairly national here in europe. about 5-4, advancers outpacing decliners. sterling doing pretty well, as well, on the back of employment data. we will talk about italy and get more of a view, as well, from u.s. credit markets, after this. with my united mileageplus explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles

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italian lawmakers have delayed a vote which could expel berlusconi from the senate. the hearing is now due to resume on thursday. danielle from morgan stanley joins us now. thanks for that. and at the same time, we've seen yields on italy or yields on spanish ten-year debt fall below for the first time since 2012. how concerned are you about this senate hearing and the prospects

of the government being broken apart? >> this is about political instability, for sure, and whether this will translate into a full blown crisis remains to be seen. but shortly, one of the possible scenarios. i think financial markets concern is that as long as the political uncertainty continues to stay, then the reform for italy's growth prospects remain quite low at this stage. the other angle is that stability is not necessarily positive. it is to the extent that government policies are effective and intlemted, but its stability means im mobility, then that is a negative. and the reason dynamics in the spread of italy versus spain seem to suggest, at least part of italy's widening might have to do with the political situation. >> and this is the phrase you use, stability could be im mobility won't be very helpful.

i'm not sure whether there is the ability to deliver them, is there? >> for now, we are quite cautious. i think there have been times where some reform have been implemented. the government has put in place a number of policies. for example, down government arrears, that is important, but the previous ticker government, too, has been doing structural reforms, even though they haven't reached a critical mass. so at this juncture, i think that the chances are that italy, after this recession will continue to speculate, will not grow that quickly, even after it exits formatly a recession. the other concern is about the public finance minister. italy is facing a budget surplus that physical policy right now seems to be lacking precise action. there's been an attempt to weaken the fiscal tightening and

the fiscal consolidation to ease pressures on the cycle, but at the same time, chances are the surplus might not increase as quickly as officials project at this stage. >> we also have to try and change the electoral law. that might be a bigger fight, might it? >> there are a number of political tests ahead of us. my view is that as long as the rules of the game remain as they are today, that is unlikely to generate large and stable majorities, just like we have seen this winter with italy's election. it will be very important to make a number of institutional changes, including modifying the low in that direction. such that should there be a new election or when the time comes,

then there is a list, the possibility to have a more stable political situation. that has been difficult so far. it was one of the pledges of the government. there seems to to be consensus that this law has to be changed, but it was proved difficult to do so at this stage. >> thank you so much. let's check in where we stand with the ten-year yields this morning. remember, we hit that 25-month high on friday of 3%. right now, ten-year is yielding 2.94%, as you can see. we'll keep our eyes, of course, on what's going on. there is now a consensus that fed tapering may be coming down from 15 billion to 10 billion. treasury is issuing a lot of dates, as well.

the s&p and nasdaq have been up six days in a row now. the dow, which has had its secretary triple digit gain, the best two-day actually in three months, 127 points yet was currently down points, the nasdaq is currently off seven points, as well. italy is up. .it's worth recapping, the uk data this morning which has helped to boost the pound, sterling up against the dollar, over 1.58. gilt yield today, 3.04% was the three-year high. this is after employment data came in better than expected. the unemployment rate dropped down 7.7%. still to come on the show, with a week to go until the long awaited fed meeting, will bernanke announce a reduction in

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this is "worldwide exchange." i'm ross westgate. ininvestors are cautious in european trade after president barack obama vow toes explore diplomatic options in syria. he has warned there must be guarantees that they sign up for the russian deal to give up chemical weapons. >> it's too early to tell whether this offer will succeed. and any agreement must verify that the assad regime keeps its commitments.but this initiative has the potential to remove the threat of chemical weapons without the use of force. >> there's a mixed reception to apple's new iphones. asian supply over doubts and pricing in emerging markets. and verizon is expected to raise nearly $50 billion with its planned bond sale. investors are flocking to the offering which could end up

being the biggest corporate debt deal ever. all right. if you've just joined us this morning stateside, a very good morning. it comes after second triple digit gains for the dow yesterday, the best two days in three months. we've had six days of gains for the nasdaq and the s&p right now. futures are suggesting a pretty flat start for the s&p. the nasdaq is, what, 7 points below fair value. we are on fair value for the dow, as well. european equities, meanwhile, pretty flat. just down 0.1%. we had improvement in unemployment today in the uk. unemployment rate dropping. it's now a key target for the bank of england. we went from 7.8% to 7.7%. but markets betting it ain't going to be three years before the bank of england puts up rates. xetra dax is up 0.4%. cac 40 is fairly flat at the moment. so what are investors to do today? here is a recap of some of the

thoughts we've already had on cnbc. in terms of financials, the financial insurance companies, they are actually the only bank we do have in our portfolio at the moment from our point of view. highly interesting investment. 5.5% dividend yield and overcapitalized sheet. this is a bank where we know exactly what the capital requirements are, actually. . >> one stocky really like here is bg group. it's a company that really does have a lot of growth in front of it and some pretty significant changes in the amount of cash it's going to be bringing in. we also like bp here as sort of contrarian. we think it's good value here.

>> you can will say look at these and say who is there for china? these guys could be players in europe. >> well, that's a recap of the trade of the day. keep our eyes, of course, on events in the middle east. president obama has been taking his case of action against syria to the american people. in a prime time speech last night, the president said he'll put off a military strike to work with russia, china and u.s. allies to work on a diplomatic solution to try and force syria to hand over its clem kal weapons. he said the chemical attack last month is a danger to american security and violate tess world's conscious. the president pledged not to send any u.s. troops in syria, but will order them to stay in the region to keep pressure on president assad. >> let me make something clear.

the united states military doesn't do pinpricks. even a limited strike will send a message to assad that no other nation can deliver. i don't think we should remove another dictator with force. we learned from iraq that doing so makes us responsible for all that comes next. but a targeted strike can make assad or any other dictator think twice before using chemical weapons. >> president obama addressed critics who say the u.s. shouldn't get involved in other countries' affairs. he says while america isn't the world's policemen, it should act when international standards are being violated. that was the u.s. premier last night. the chinese leader meanwhile is giving his key speech at dalia in china. he says china won't expand the budget deficit to boost growth. excuse me. and essentially saying the chinese economy is well and stable. what about the u.s. economy?

it's being dubbed as one of the most anticipated federal reserve meetings since the great recession. what's going to happen? could the cup be as small as 10 billion? are investors set for a priet to global markets? while i drink some wa water, you explain to me. the consensus has come counsel from 15 to 10 built tapering. does that make sense to you? >> that's what we've been talking about as a token taper. this transparency which the bank of england has practiced, which the fed has practiced, it has some advantages. but as the events change, it's difficult for them to change their minds. i think the economy is maybe a little weaker now than they thought it was going to be from last spring. but if they don't taper next week, then we're going to see gee, maybe this problem is worse than we thought it was.

so the 10 to 10 billion which i've been thinking for several weeks now seems to be developing consensus -- >> i learned initially over the weekend, a former member of the ecb governor council, he made that same point. if you say you're going to act, you have to act. >> it's like obama and his red line. it's the same kind of problem. >> so the most they could do would defer to october. but what would that be even if they did that? >> they don't want to do october because there's no press conference. i was trying to figure out why he couldn't just have his -- if the head of the fomc wants to have one, he could have is one. >> you'd be there. >> but they apparent don't want to do october. but i can any postponement looks like a negative comment. >> yields, we hit 3% up on fri, which was that 25-month high. will the fact of it, if it's 10 billion and the fact of it actually make everybody relax a little bit?

because, you know, we've been waiting for this for so long, i sort of feel like fantastic, okay, we can now deal with this and move on. >> and who who knows what the market will do in a given hour or a day. i think the market would be -- i think that wouldn't away surprise and i think the market would take that in stride. give it 24 hours to respond. it takes a $10 billion tapering in stride. >> yeah. and you say the economy is not quite strong as we thought. >> it's economy is more sensitive than people give it credit. the u.s. economy and probably, you know, the other economies, to significant change. we had a 100 basis point increase in interest rates, which proves a 100 basis point increase in mortgage rate. now, by the way, we had a housing boom when interest rate mortgage rates were 00 basis points higher than they are now. so it's not going to stop the

housing market. >> and the refinancing seems to have -- >> so we're not taking cash out so the economy has flowed. >> come back for a little bit more in a second. jerry is from oppenheimer funds. in the meantime, if your idea of having a good time is to solve a rubik's cube, you should probably head down to london today. this is where the world's biggest love lava lamp is going to be unveiled. this is our graphic's department's idea of what a lava lamp looks like. do you have a lava lamp around? >> you know, in the late '60s, we had one. we put towels under the door. it was fascinate to go watch. >> towels under the door? >> i don't want to go into why -- well, you know, we had to be a little careful about things. again, that was a long time ago. we were all young.

>> okay. >> i was younger then. >> fair enough. i'm not going to probe. >> please don't. my kids might be watching. >> yeah, good. in celebration of that, we're asking you what your favorite et row item was. 1995? that's modern. she says it's still working despite the outdated screen size and she can still get "worldwide exchange" on it. i'd like to get an old fashioned sheepskin coat. that's what i think about from the early '70s. >> i thought mine was still fashionable. >> it's coming back. you know, the tan -- >> very good and you're never cold for chicago winterses. it loved it, it was great. >> that's what i'm going to bring back, my retroitem sheepskin coat. let us know what you think.

worldwide@cnbc.com or tweet us @cnbcwex or @rosswestgate. the biggest corporate deal ever, details on the company's mega bond sale coming up right after this. [ male announcer ] ah... retirement. sit back, relax, pull out the paper and what? another article that says investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! seriously? seriously. you don't believe it? search it. "401(k) hidden fees." then go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. we have every type of retirement account. none of them charge annual fees and all of them offer low cost investments. why? because we're not your typical wall street firm that's why. so you keep more of your money. e-trade. less for us. more for you.

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verizon is guessing set for a monthout bond sale today. it's expected to help pay for the rest of vodafone ael deals with verizon wireless. kayla is breaking it down for us. demand seems to be hot. >> biggest deal ever. investors looking to put money to work. verizon is expected to sell the debt today. it would easily be the biggest bond deal ever, dwarfi inin inis $7 billion sale in april. verizon initially intended to sell backside 20 billion of debt this week and repeatedly raised that target as the orders kept flowing in. verizon's purchase price for verizon wireless, the rest is

primarily in stock. it has ads 61 billion bridge, that's a short-term loan. $12 billion of that will be paid off with a longer item loan. the company is going to meet with lenders today to market that loan to ininvestors. verizon is going to sell bonds ranging in maturity from three to 30 years. verizon's ten-year bonds are expected to yield 5.21% and 30-year bonds at 6.54%. that's anywhere from 2.25% to 2.6% above treasury yields and that's roughly around where verizon debt is trading right now. it indicates investment interest in corporate bonds in a time when the u.s. economy remain near historic lows. the expansion of the sale shows the eagerness of companies to issue debt ahead of next week's fed meeting. some investors expect the banks to increase its mortgages. but today's sale, ross, will make verizon the largest nonsale

financial borrowing with $is 00 million outstanding in debt. that would bolt it past rival at&t, which has roughly $76 billion in outstanding debt. ross, pretty amazing to think that they are able to issue north of $40 billion in one go to cover nearly all of the cash portion that they're paying for this deal, isn't it? back to you. >> that is amazing, yeah. 40 billion in one day is extraordinary. and it will be interesting to see the ranges, as well, of the yield. >> could be north of 40 billion. could be as high at 90 billion. >> if you've got the demand and you can issue the paper at a decent price, maybe you just say, hey, here's some more. >> that's right. and there's been so much money, ross, coming outs of the bond market that investors who do play in this fixed income space will be looking for something of this size to come out. we'll definitely see how it prices today. >> great. plenty more from kayla and the

rest of the team on cnbc. meanwhile, a recap of the headlines. president obama vows to hold out of syria right now saying he's open to a diplomatic plan from russia. stocks will supply army boosted in uk trade. and verizon as we've just heard gets ready to place the biggest ever corporate bond papers. meanwhile, the canadian government has sold nearly 25% of its stake in general motors to around $1.1 billion. it's all part of a longer term plan to shed the stock it acquired when it helps bail out the automaker in 2009. canada still owns more than $126 million common and preferred shares. last year, they said they plan to sell its entire gm stake over a period of months. gm stock in frankfurt is pretty flat. and americans are often willing to give people a second chance, but new yorkers don't seem to be quite so on giving to

politicians. eliot spitzer lost his bid. anthony weiner quit congress in 2011 after sending nude text messages to women and was caught sexting again after his latest sxan. spitzerry ziened in 2008 after being caught in a prostitution ring. and a group of more than 200 economists have written an open letter in favor of janet yellen to become the next big name. they urged president obama to pick yellen to replace ben bernanke, noting her willingness to hear multiple points of view and make clear on the standing of how labor markets work. joe weber is still with us. would you sign that sort of letter? >> you know, any of the people who have been nominated are okay to do it. i'd rather see someone who is

not as associated with the administration or any administration as larry summers is, professor summers. ben bernanke, don't forget, came out of the bush white house and has been able to be pretty nonpartisan there. but we have a bad history of the president's man -- and it's always been a man up until now, becoming fed chairman. so i would urge the president, you know, to find someone who has not got all those great political connections as larry summers seems to have. >> i mean, certainly that he'd get, you know, congressional approval for that. >> i've got to think they do the vote count carefully in the senate before obama sent the name up. but that's going to -- that's a risk. yellen would be a great pick. >> and i suppose investors would like yellen because they know it will be a continuation of policy, whereas if you get someone like summers in there,

the game might change. >> well, you know, sounded a little more hawkish, a little more critical of quantitative easing. interestingly enough, probably a lot of the financial community in new york is more on that side of the view, but continuity for the time being is something we value, the market would like. >> joe webman, thank you very much. still to come on the show, consumers may be excited about the new iphone, but we'll look at when this company can look past some viewers' letdown. has it's ups and downs.

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they then used an event in beijing to launch a more value version, a chapter version. the 5c will be what they call unashamedly plastic. it will allow apple to better compete with android smartphone necessary emerging markets. joining us for more is hank smith, chief investment officer at haverford investments. now, let's talk about the unit first of all for the reaction in beijing. euni eunice, how has it gone down? someone criticized it saying it's not on cheap enough. >> well, yeah, that's testify natalie the case. there was an online poll here where people were asked to vote for, you know, what they thought was the coolest feature of each phone, whether or not they thought that they were priced well. and people were talking about how for the 5s, they were

impressed by the fingerprint scan, but that the 5c was too expensive. the voft majority of people said they thought this phone was going to be cheap, and it turns out to be very expensive, only about $100 cheaper than a 5s. and it comes in at it is 730 here, which is an expensive phone. there were a lot of people who were hoping apple would come out with a cheap model to go after some of the more budget conscious consumers here. but that doesn't seem to be the case. people are start to go wonder whether or not that's the idea, that apple wants to stay at the premium end of the market, even as they see all this competition from budget smartphones. ross. >> yeah. they want to stay at the premium end of the cheaper smartphone market. maybe that's what they're going to do. eunice, thanks for now. hank smith from haverford investments is with us, as well.

hank, what's your reaction to this? >> well, look, i don't think the term cheap and apple go together. so let's call the 5c less expensive, not cheap. but, no, really we were talking about something that's evolutionary, not revolutionary. and so, therefore, there is not the wow, the oh-my-god factor that you might have in a revolutionary type product. and it remains to be seen whether this pricing strategy will work. but i think the big factor in the sell-off yesterday was that there was not an announcement of a formal deal with china mobile. just the expectation that that is to come. >> how important is get ago china mobile deal announced?

>> i think it's 700 million customers important. it's hugely important. >> yeah. so, look, we'll have to wait and see. as far as the stock, then, is concerned, which i think you have us own, what's the outlook. >> yeah. well, look, the stock remains very inexpensive. and we know that each year you're going to get a substantial dividend increase. you're going to get a substantial share buyback. so it affords you to be patient and allow for the new 5c, 5s. and coming up in ra couple of months, the new ipad and the i mini to come out. and who knows with an iwatch and what else apple has. so i think you can afford to be patient with a good decent dividend yield, a great growth

of dividend and share buybacks. >> any concern about whether they can keep their margins? >> well, i think this pricing strategy is all about keeping the margins. and apple doesn't want to be a bottom basement discounter. again, it has a very, very high end brand. and they want to preserve that brand. they don't want to be viewed as cheap. so time will only tell if that strategy is the correct one. we think it is. >> i think most people use the phrase value, don't they? is how people like to discuss it. >> right. >> a slightly less expensive. hank, good to see you as always. thanks very much for that, hank smith at haverford investments. we've been asking viewers what's your favorite retroitem was. shoeman said a penguin ice bucket. john trennor tweeted his hs.

that's it for today's edition of "worldwide exchange." "squawk box" is coming up next. keep it here on cnbc. have a profitable day.

good morning. the markets taking notice of president obama's dovish speech. >> i have therefore asked the members of congress to postpone a vote while we pursue this diplomate ek path. and investors failing to be wowed by apple. and in the nation's biggest city, new yorkers reject the two

tabloid twins. no redemption for elliott spencer or anthony weiner as "squawk box" begins right now. >> good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. the president said that the u.s. will pull off a military strike and work with russia, china and american allies to force syria to hand over its chemical weapons. but he also made the case for action. >> this is not a world we should accept. this is what's at stake. and that is why, after careful deliberation, i determined that it is in the national security interests of the united states to respond to the assad regime's use of chemical weapons through