hello. you're watching "worldwide exchange." here today, gone tomorrow. chinese gdp rebounds in the third quarter. stocks around the world are trading higher. many now betting the taper talk is dead until next year. u.s. sector releases a flood of economic data that's been

postponed because of the economic shutdown. the jobs report is now due on tuesday. and investors are going gaga over google. the internet giant posts first quarter earnings that easily beat forecast. >> so welcome to the first hour of "worldwide exchange." here we are, just an hour into the european session and around about 7 to 2. the ftse yesterday was just up 4 points. we close at 6,576. we saw the dow fairly flat. that's giving us a bit more of a boost on the ftse. up 0.25%. the xetra dax up 0.1r5%.

cac 40 up 0.3% and the ftse mib is down 0.1%. google is posting its best profit growth in more than a year reporting earnings. but a full in the prices paid for each click. google stock in frankfurt, up 7%. angela merkel down 2% today. it's talking about third quarter copper production, which jumped 32% year on year. but the british based multi national reported a full in iron ore output. loreal is up nearly 2%. it's followed confirmation that the business is in talks to buy two of japan's french companies and its french stocks investors appear to have backed a cause

organization, kelly, up around 4%. this is despite the hotel firm reporting a 3.1% revenue for the first quarter. let's get more on those two companies, stephane is in paris. >> stephane. >> i will kick off with loreal, ross. exclusive negotiations for the french company to sell two of its businesses based in paris. one company is specialized in skin, body and hair care treatment. it's specializing in the cosmetic aroma therapy. loreal is offering $213 million for the acquisition. the final price is still part of the negotiations with sishedo. for the japanese group sishedo, it suffered last year its first

net losses in eight years and, therefore, the group has decide to refocus its forces on the most profitable part of its business, obviously. loreal is the number one cosmetics business in the world and it's a way to increase its professional sales. it's the first acquisition for loreal this year. the company announced two acquisitions in april and china. this would be the third acquisition for loreal this year. quite briefly, that's the good news for the company because the demand is picking up in europe, especially on this segment. the brand is edis. the company reported almost a 4% increase in saves for the third quarter to $1.4 billion euros.

the trend in the last part of the year would remain the same for the budget hotels in europe. a good level of bookings for october. the budget chain to the most expensive and comfortable one, which is the soffitel chain. over to you. >> thanks for that. that's the latest on the corporate front. u.s. treasury, ten-year yielding 2.55% preshutdown. we're yielding 2.61%. we got down to about 2.59% post the nonfed taper decision. and here we go. we are down in sort of new recent territory here with these lower yields. italian yields steady at 4.211%. lower yields on the gilt, as well, 2..11%. we'll keep our eyes on that for the treasury move, of course.

on the currency markets, euro/dollar back up to 1.3684. up to near the highs for the year. remember, we hit 1.37 in february. and we are down at 1.7472 on weapons. it was a two-week low. aussie/dollar now 96.35. and pound against the dollar is back up to 1.9632. we see treasury yields continue to de-china. let's get more on the final asian trading session of the week, as well. >> thank you, ross. asian markets, china is revering its gdp growth data. but the nikkei 225 ends down by just a touch after a seven-day winning streak. investors are keeping an eye on

the u.s. job status slated to come out next tuesday. south korea's kospi gained 0.6%. meanwhile, australian shares are -- the euphoria end ago five-year high ending higher by 0.75%. now for some winners, on the hong kong bores, sands china shares soared to a record high on better than expected q3 results with net income dropping 89% on the year. this boosted by strong trend at its mccow and singapore operations. numbers show mccow's gambling revenues this year increased nearly 17% from last year. so other gaming stocks also on a hot on streak in today's session. back to you, ross. sixuan, thank you for that. let's get more on china's economy.

that was an improvement from 7.5% in the previous thee months. other monthly data was in line with estimates. industrial output 2.1% in september. retail sales up 13 is.3%. the statistics bureau is warning it may be difficult to keep that pace in the fourth quarter. eunice yoon has the latest reaction for us in beijing. what does this data mean, do you think? >> well, the numbers actually were pretty good and hit what everybody expected. 7.8%. this is the best quarterly result for this year. so people were happy that it met expectations. at the same time, as you had suggested, a lot of people are looking beyond the set of numbers. they are looking beyond some set of weakness in the retail data.

also the industrial production number, we had the export figures that came out several days ago which people got concerned about. basically what people here believe is that you are going to see a bit of weakening going forward. there's a lot of uncertainty right now. there's been a lot of chatter about the u.s. debt ceiling debate. what is all this uncertainty going to mean for sentiment in the united states? the global trade picture hasn't been very good. it's been looking relatively volatile. what they're looking at here sha has been the upcoming meeting in november. officials here all get together and then they start to form policies and lay out a possible reform. because of that, there's this feeling that we could see some interesting reforms, at least some type of economic road map, but that the government would value a slower, sustainable growth and possibly engineer that in order to make sure it's able to push through these

economic forms in tandem with that economic growth. >> all right, eunice. so we'll see what happens now. do you think policy -- what is the biggest concern right now for policymakers, political policymakers? >> oh, it's really difficult to say. i think what most people are talking about right now is this november meeting. there's this expectation that we will see more in terms of broad strokes and outlines in terms of reforms for the financial sector. that's really what people are hoping to hear. there's been a lot of discussion about possibly seeing some reforms to other social issues including the one child policy. that's really the focus at this stage of what the market is hoping to see. at least we aren't getting a lot of detail because these movies don't have a lot of details. but it could set the course as

to what this administration is all about as opposed to the previous administration which has been heavily criticized for talking about economic reform and really not following through with it. >> eunice, thanks for that. that's the latest from beijing. ben, you described this as a modest recovery, but only tepid at best. why? >> look, the economy remains fundamentally unbalanced. if quarterly gdp print is pretty much what we would have seen two years ago. mining, metals all contributed significantly to the growth. what we need to see is a recovery in light industry. the fact that exports are weak just underscores the imbalance. but we have yesterday to see a fundamental rebalancing in growth. so, again, this is not enough. it's really just chasing growth targets. >> what do you want to see? what's happening with the

smaller, the mid size companies? well, what we would like to see are go spill over to these smaller companies. the latest pmi results underscore that divergence with the reading for large companies rising steeply. but the reading for small to mid size companies relatively flat. what we would like to see is a slower rate of growth near 6% which is consistent with debt and demographic challenges. we want to see more genuine economic reform as a result of this november meeting. the sort of reform that targets more credit to these small sized enterprises, the sort of reform that breaks up monopolies and the sort of form that encourages moving out of manufacturing into services. >> yeah. inflation, 3%. are you comfortable with that? >> look, it's low for now, but the starting point is still high given that growth is only around

8%. clearly with food prices rising, that bites into purchasing power. the risk as we move forward, just a couple of percentage points. that would threaten the consumer spending over the next few quarters. low for now, but a concern given the level of the starting point. >> what is the reform that you would like to see from the government? >> look, clearly everyone is talking about the financial sector and that's great. again, what we need to see are reforms that target the private sector. we need to see the government step in to break up those powerful state monopolies that prevent the private sector from effectively competing in sectors and winning all-important government contracts. that's the reform we need to see. we haven't heard quite enough about it yet. >> in the lost decade for the particular government, that's

one thing. the latest export data, we saw big decline exports to southeast asia. you're alluding to the squeeze on the medium sized company. we have seen a pickup in iron ore exports. do you think that's going to be sustained? >> well, i do insofar that what's driving the cover is a mini stimulus. in turn, it's beaten through to heavy industry, in particular the railway sector. iron ore imports should be well supported. that doesn't tell the story of a economy that is rebalancing. it tells a story pretty much the same as we've seen over the last few years. not quality of growth. ben, good to see you today. have a great weekend at silk road associates. i have some comments out from the ecb policymaker. he says he's relieved by the u.s. budget deal, only a

short-term measure will remain. the growth would suffer as a result. euro will play an increasing role as a reserve currency and says that the -- for the u.s. would be if oil is not priced in dollars. that is still far away. the situation in europe is calm and focuses talks with u.s. and emerging markets. we'll have more on those comments. meanwhile, head to our website fob more on china's best gdp number this year. also check out how the country is revising its one child policy and how that would boost the world's second economy. also on how china's ratings slash on u.s. debt shows the growing frustration over how america handled its debt ceiling debacle. don't forget, you can follow us on twitter, of course, all of that @cnbcworld. meanwhile, the performance

of pension funds has a royal critic. the future king of england, prince charles, lass weighed into the debate for failing to provide adequate return for those looking to build a nest egg. those in the city were more focused on the short-term view. >> with an aging population, and pension fund liabilities that are, therefore, stretching out for many decades, surely the current focus on quarterly capitali capitalism is becoming increasingly fit for purpose. >> so does the pension fund industry fully serve the interest of future retirees? if you want to join the conversations, e-mail us, worldwide@cnbc.com or tweet us, @cnbcwex or direct to me @rosswestgate. is buying government bonds the right strategy for pension funds, as well?

plenty to get into in that debate, as well. meanwhile, also on today's show, buying art is an expensive business. is borrowing from banks more tricky than ever? we look at another way for buyers to expand their collection. sweet safe haven, the world's chocolate craving shows no sign of abating leading to soaring cocoa prices. how will chocolate trends change? we'll be joined by a master chocolatier. my producer doesn't really like chocolate. i'm not sure why we're doing that. and an awesome drama could unfold today as fox prepares for its annual meeting. activist investorses ready regular pools for rupert murdoch to be ousted as company chairman. goldman sachs saw its company shares plunge over the dow yesterday despite being the first quarter profit following a week of various results.

morgan stanley is out today. we'll take a look for what the future holds in the sector coming up at 11:30 cet. i love having a free checked bag 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.

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the u.s. government is finally getting back to work after two weeks on the sidelines. >> the barricades that triggered outrage at the world war ii memorial in washington were removed today. combat vets no longer need to fight to get in. >> it is an experience that every veteran should have. >> i'm proud of you, dad. >> after 16 days of being shut down, the federal government rumbled back to life. federal agencies, parks and man ewements reopened around the country. the cdc in atlanta went back to work fully tracking flu and other outbreaks. the shutdown went into effect midnight on october 1st. 16 weeks later, standard & poors roughly estimates the price tag at $24 billion, including $3.1 billion lost in government services. more than $2 billion lost in travel spending and more than a

billion at national parks alone. hardest hit, hundreds of thousands of furloughed federal workers. in chicago, we first met epa employ elizabeth leidel as the shutdown began. >> congress needs to be turned over somebody's knee and spanked real hard. >> today she was relieved to be back on the job, but still worried about making ends meet. >> i'm living on about $150 to the end of the month and that's not a whole lot of money. >> while most government workers will get back pay, eventually millions of federal contractors will not. david walden works for the navy. >> i don't have the vocabulary to discuss my anger about it. i'm actually have been we very livid that you have representatives that go to washington and they just cannot get things done. >> but no price can be put on what the mccurtains went through. >> we won't stop at anything until we get her on the treatment that she needs and that she deserves. >> their desperately ill daughter was forced to wait for

an nih clinical trial. abby is one of some 200 patients a week involved in federally funded medical treatment, including about 30 children. most of those patient res now waiting for a phone call. then there are intangible costs, like the country's reputation with foreign investors. >> america's political system has been exposed to the world once more as both polarized and dysfunctional. >> the founding fathers signed the constitution in philadelphia, predicting that the government would hit some stumbling blocks down the road. but it's unlikely they ever thought it would turn into this. >> meanwhile, investors can start investing with a flood of economic data postponed due to the government shutdown. the labor department will release the september jobs report now on tuesday. the october payroll data is being delayed by one week november the 8th. september import prices are out on wednesday. produces prices in cpi have been

produced to the following week. it will publish a revised calendar soon. there are concerns about the quality of delayed data. economists at the cleveland fed are concerned that it might affect the outcome of cpi into next year. joining us is charles dumer at lombard street research. charles, good to see you. thanks for joining us. because of the delayed data now, because of the fact that we're going to be back discussing washington politics in the new years, how long is tapering going to be off the table for? >> we always said tapering wasn't going to happen until the winter in any kind of style because the economy is pretty slow through the third quarter, which we expected. although we haven't gotten the numbers, we presume it's delayed like all the others. fourth kwarer, we were expecting an improvement from 1.5% to 2% growth. now we think it will be more like 1% due to the loss of output, consumer confidence, a

little bit of housing, a little bit of business cap ex, etcetera, etcetera, probably inventories, too. should be a decent rebound next year. we're fairly bullish about 2014 growth. really, i think we're at the top end of consensus or above it. because the housing is still very low by historic standards. cars demand is well below replacement level let alone anyone actually getting a new car. and the energy story remains good. it's undermining oil price toes some extent which helps real incomes. and then you've got the fact that the u.s. is now much more competitive in terms of the dollar. so much of the cap ex is now happening in america rather than in china. so all of those are plus points for next year. but even so, we don't expect above tren -- we probably will get above trend growth in the first quarter because there's a little bit of rebound in there. the question is how much is rebound and how much is the fact as i've just mentioned?

obviously, we're saying that a lot of it is for real and will multiply through the year. on that basis, you get fairly heavy duty tapering, probably in the spring and summer. but i doubt they will be able to achieve the july objective having reviewed qe to nothing. this doesn't, of course, constitute a tightening of government -- of monetary policy. in the sense of interest rates. >> the question is whether the market, of course, makes it a tightening monetary policy vibe because it's so binary, which is what we saw over the summer, isn't it? >> yeah. well, i think people got -- people -- in a way, people have been in position for a bull market until the spring in the bonds and then they adjust their position. so a whole lot of people have been living under the assumption that you're in a bull market, which means on top of the yield you make a couple of percent a year, which is good for bonds. once you take that away, then

the yield has been more adequate. so i think there's one shot adjustment that we've to some extent had. the other side is that although china seems to have done pretty well in the third quarter, the basic growth rate there is slow. the other -- the desperate emerging markets have been forced into fairly substantial cutbacks because of what happened with taper tantrum. europe is flat, dead in the water as usual. >> jonathan, we'll get more from emerging markets, as well. also, on the streets of new york city last week, a bank -- was available to anyone for a few dollars. there's another way for serious

collectors to unveil the value. join us as we speak with olyvia kwok. plus, we're asking you to let us know what crazy candy concoction would you create if you could? would a pizza truffle do it for you? caramel chocolate bar? tweet us @cnbcwex with your dream flavor. and paul young will join us and we'll put some of your ideas to him, as well.

here today, gone tomorrow, chinese gdp growth around the w high he as the resale in washington allows investors to turn their attention back to the fed with many investors -- releasing a flood of economic data that had been postponed during the government shutdown. the government report is due on tuesday. investors are going gaga over google, pushing the stock to a record high after the internet giant posts third

quarter earnings that easily beat forecasts. china's economic growth picked up 7.7% in the third quarter. other monthly data was roughly in line with estimates, industrial output up 10.2% september, retail sales up 13.3%. china's statistics bureau warning it may be difficult to keep that pace in the fourth quarter. charles dumas is still with us. you're less optimistic about china. what's the big problem? >> the big problem is that investment is measured at 48% of gdp, probably contains some fluff, those numbers, but it's still wild by high compared to any historic comparison. and china is no longer

particularly competitive. it's -- as we estimate, about 30% overvalued. the result is that chinese exports have been flat r flat for about a year now or more, actually. when consumer spend sg only about 36% of total income, it has to do a lot of work to keep up with 48% coming down, because the exchange rate is too high and the interest rates are very high in real terms. that's the underlying problem. profits are being squeezed and people intending to cut their investment which is a big share of gdp. it's fair to say in the second quarter on the previous estimates, we actually had real gdp falling on a quarter to quarter basis, which we recalculated to chinese gdp using their own data on prices. the third quarter number looks very strong. i'm not sure quite how strong, but it could easily be an annual rate. the two together represent more

or less what we're talking about here, which is probably about 4% or 5% growth. now, it could only be that strong on two conditions. export prices have fallen a lot, so real exports are better than they look. second, the government went out there and spent a huge amount on of money on this stimulus program, more than anyone understood. that may well have happened, but we don't have the data to verify. >> you talked about there would be a gradual limitation of choin he's capital controls on the outflows. how will that change where chinese money goes? from 2011, the last fiscal had in the states, chinese and japanese holdings of treasuries up about 16%. >> yeah. well, the thing is, right now, virtually all the money that comes out of china because of their services takes a normal build up of reserves.

now, as they get rid of all controls, which they're not going to do on one fell swoop, then chinese individuals and corporations would actually take a lot of money abroad and would almost certainly not be buying treasuries, they would be buying things like housing and the s&p and other things around the world. in other words, real assets. this is a positive development for the world economy. toss joutd plays would be funded. which means what you get is a huge bubbling up of real asset prices. that goes against what i said earlier because we're talking about a structural change in the world economy. you have to remember that out of the total savings in the world, one quarter is in china. it's 4.5 trillion a year.

as that switches course towards real assets, then that changes the gaild game worldwide. >> a fair point. jonathan, good to see you. thanks so much for that. we had some lending data out of the uk. cml's growth mortgage lending, 16.2 billion pounds in september versus 16.4 billion in august. normal means of borrowing prove difficult for all types of businesses. one sector suffering has been the art world. added difficulties is the continued resilience of art as an investment class, making it expensive for serious buyers to add to their collection. london base dealer olyvia kwok says she has found a way for investors to unlock their value

of art, as well. how do you unlock people's -- get cash out without taken it to the pawnbrokers? >> we are doing the collateralized lending against art or collectibles. i think this service is quite bemusing in europe. it's quite a few people doing that in america, but in europe, i think people generally speaking are still a little conservative and i think we are one of the first ones doing this. >> so someone comes to you with a work of art, you value it and lend a percentage of it? >> how it works is actually quite simple. first of all, i think auction houses are very professional these days. and they probably have over 08% market share. so we very much value their opinions. and we lend 50% against value.

>> thought quite high. >> traditionally speaking, auction houses are very conservative in their estimates. >> what sort of duration? >> 18 months and then we'll review on the values and the situation again. >> and you would expect the money back in 18 months? >> no. in 18 months, we'll review the terms. 18 months would be quite a long time for value to change. with the global growth, we would like to think that within 18 months, it has a small adjustment that things -- has a little yield a little more. >> okay. and you often do this against german do you sfp. >> yes. i don't know if you follow the auctions in hong kong. >> there's been some really steep prices. >> i think the same thing has

been said that the rich are getting richer. we focus on things that are more collectible, which means the colored diamonds or the untriggered price of stones or the significant size of like diamonds. >> okay. now, is this just your money or investors are coming in and -- >> investors. >> so you have a fund or how does this work to help give you the money to lend against the art? what returns are you making? >> there are credit lines with several funds in america. most of them are for the specialized in debt lending. >> okay. that's all fairly standard. >> i think it's very attractive. >> yeah, okay, well, you would. it's your business, actually. that's what you're supposed to do. moon while, how important is this freeze art going on in london at the moment?

>> i think it's important. you see the result and talk with eunice whether they are selling that. >> what is really going on? >> i think people are selective. i can't say it's booming, but it is elective. it is important to understand what trends are going on. from the dealer perspective, you don't have to be first one to get if, but don't be the last one to get out. and on that front, we are quite trend stockers. we -- what's the trend at the moment? >> right now? we think it's american abstract and english pop. english pop is quite undervalued. i think that showed in the auction results last night. >> now, who -- throw me a name

out for english pop. >> david hopper. >> good. okay. that's all you need to say. >> thank you very much. >> olyvia, good to see you. thanks very much. it's an interesting business, for sure. olyvia kwok, founder of top management. meanwhile, you can log on to cnbc.com to read up on which artists are commanding top dollar. follow us on twitter @cnbcworld. but, if modern art doesn't satisfy your appetite for alternative investing, how about classic or in this case rare cards? you remember the famous bond car? it has a new owner. the tesla ceo was the secret buyer. he shelled out nearly $1 million for this item. the fully functioning under water vehicle which in the 1977 classic had been discovered in a long island locker and purchased for less than $100 before being

auctioned off in london last month. quite something to find. i'm going to go and check my locker. european equities today are a little higher. not by much. up about 0.25% for the ftse. flat for the xetra dax. cac 40 up 0.3% and the ftse mib up 0.10%. the treasury yields, down 2.6% on the ten-year. we might put that up for you. maybe we won't. there we go. thank you. and saudi arabia turns down a u.n. security council seat. sterling/dollar getting back up to 1.62. in japan, fushiko has more for us from the nikkei. >> hi, ross.

sony's latest data is called the smart watch 2 designed to work with a variety of smartphones. the new wearable device goes on sale next friday in japan. with a three to four-day battery life and a 1.6 inches display, it let's users check e-mails, texts and social net, woulding updates. you can't talk through your watch, but you can send out messages using your gadget. the device can display images and list of music on the linked phone and it costs about $14,8el 00 yen, about $150. sony was at the forefront of wearable tech, release ago phone-linked watch. but it's now up against samsung's smart watch. the sony ceo says he wants the company to make it into the top three smartphonemakers by coming up with distinctive products, like a wireless device that sharply shortens smartphone battery charging time. ross, back to you.

>> okay. thanks for that. good to see you. have a great weekend, fushiko. after months of market rumors, lenovo has signed a nondisclosure packet to look at the hand setmakers books, but reports differ on whether lenovo wants to buy all or just part of blackberry given the high regulatory issues around such a deal. south korean lcd panelmakers lg faces issues as governments raise demand for subsidies. lg display earned $3.65 million in the third quarter, its most profitable ever. and google shares for a record high in after hours trade flirting with the $1,000 a share level following a solid set of earnings from the search engine giant. jon fortt has the story from

silicone valley. big q3 for google, the company blowing past analyst expectations, particularly on earnings per share. here are the numbers. wall street expected less than $14.89 billion in revenue that google turned in. .expected around $10.36 in earnings per share. google turned in $10.74 nongap. the stocks shot up to $957 per share by the time the earnings call was over. that's up 7.7%. google revenue was at $1.18 billion,

which is exactly what the street was looking for. cost per click down 8%. that largely dreven by the growth in mobile. people tend to click more on ads, but the pricing is lower on those ads. on the conference call, the ceo larry paige announced that he won't be on every conference call going forward. he's going to allocate his time differently. he also gave a few interesting stat including mobile is now 40% of youtube traffic, up from 6% two years ago. the enhanced campaigns are teague together various mobile and desktop platforms that google is running continue to go well. driverless cars now look to be pretty much inevitable, though they're still quite a ways away from being a commercial product.

but said investors should be asking him to spend more on highly speculative projects like that. and calico, the health care initiative that he and google have funded because it's good for the future, good for future investment and google is doing so well. reven revenuewise, it's hard to find a speculative investment that would really make a dent. for cnbc, i'm jon fortt. >> elsewhere, bad loan res on the rise an bangkok bank. siam com bank and bank of ayudhya have missed numbers. analysts are warning that thailand's smaller businesses could find repayment difficult in an economic downturn. also in the sector, a u.s. federal judge has order a unit of on hsbc to pay investors $2.4 billion. the judgment against household

international is the largest in a class action case of its kind. the suit, filed in 2002, claimed households misled investors about the quality of its loans. hsbc is expected to appeal. the stock pretty flat in london. the weekend is coming so here's a look at what's on the agenda in asia on monday. economists will be watching japan's record high trade deficit. indonesia will post third quarter investment data while key corporate earnings include hutchison, port, bursa malaysia and mahindra financial. still to come, we're asking you to let us know wa crazy candy concoction would you create if you could? would a pizza truffle do it for you? would you be tempted by a camel's milk chocolate bar? let us know. this is paul a. young, master chocolatier and creating

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now, the price of cocoa has soared more than 20% since january as the world shows no sign of losing its chocolate

craving. but our consumption of the sweet stuff is changing. smaller boutique manufacturers are beginning to challenge established operators. that trend has boosted worldwide chocolate expo landing in london today. it's going to be in brazil, south korea and japan next year. joining us with his expert thoughts and tastes, paul a. young, a master chocolatier at paul a. young signed chocolates. paul, you're about to launch your fourth. >> yes. koubl it? >> what's going on in the chocolate world? >> people love really good chocolate. the cop infection has groan 17% in the last five years. it's huge. are a fordable luxury. some of it is reassuringly expensive. so it's that luxurious feeling. everybody loves it. it makes you smile, it makes you feel good, so the growth is massive. but for really good quality and creative products.

>> and who is buying in your shops in london? is it a mix of tourists or home demand? >> in the city, that is all city guys and girls and they're buying for gifts and presents for family and friends. in our soho shop, it's lots of tourists. in l.a., they're spending on british chocolates with british ingredients. >> and you make some interesting ingredients, right? >> there is a pizza truffle which launched this week. >> i've got a box here with a piece. can i try this? >> yes. >> this is a pizza truffle. >> that is pizza based, a sour dough pizza base. >> my goodness. >> but completely natural. everything is about natural and intensity of flavor. >> that's really weird because the outside actually does -- it does taste like pizza. >> it takes likes a pizza and

then i've got clock la in the middle. >> yes. and this is out starting today, blieft or not. this is about promoting amazing chocolate to everybody at every level. >> i can't really spare my hands, sorry, but that's just the way it is. >> and it makes you smile, it makes you feel good. >> it pushes buttones and gets people talking about chocolate. >> gee, that is -- the whole thing is really weird. >> it's intense, isn't it? >> that's one way of describing it. i've got pizza with chocolate. >> and it works. >> i don't know if it does, actually. to be fair, i'm not sure if that does work. but -- >> i'm glad you tried it. fine chocolate and good chocolate is all about getting people to understand what it is. and you said the price has gone up a lot this year. this is chocolate the first time in london this weekend to show people, the growers, the beans, the chocolate how it's made and there's even a fashion show this evening made out of chocolate.

>> you have to do it somewhere fairly chilly. it is extraordinary. there's a million people going on this shuttle there. how important is growth in new markets? >> there is a worry there may be be enough cocoa to support it. but if we buy direct, buy from the grower, get the money to the grower, then they're more likely toni vest back into it. the younger people are more likely to go and grow it. because the average age is about 62, believe it or not. >> if you're buying direct from the grower, can you prove that you're being sustainable about it? fair trade sort of stuff, can you get involved in all that? >> the key word is sustainability. we have to announce the sustain and input into it to make it grow. so there is enough cocoa. there's huge growth. they're now really wanting our

style of chocolate. the only way is to grow more cocoa. because without cocoa, i don't have the business. >> no. >> we need more. >> and we don't have any pleasure. >> exactly. exactly. i love having my chocolate business because it makes lots of people very, very happy, very easily, with one little chocolate. >> it's fascinating, paul. thanks very much indeed for coming in. i said i don't know if that works or not. it is an extraordinary thing to try. i think everybody should try it. what other interesting flavors were -- >> in the box there, sea salt caramel, which is the best sea salt caramel in the world. and i find out tomorrow night if it's won again. it's the chinany dome. >> that one? >> no, further down. keep going. there's a long line of them. >> this one? >> no. the next one down. >> that one? >> that's it. that won the best soft carpaling in the world. >> best soft caramel in the world. >> salted caramel. >> in the world. >> so this is a world winning --

this is a global award winning chocolate. >> it's my biggest seller. it really is. >> we'll try that later. thank you very much. >> thank you. >> it's great to meet you, paul. i wish you all the best. >> thank you. >> paul young, master chot lackere. what a great job. what a great job. now, a reminder, our viewer exchange today is should royals be giving -- he likes it, the odd chocolate, prince charles. i presume. should royals be giving investment advice? join the conversation, e-mail us, worldwide@cnbc.com, tweet @cnbcwex and direct to me @rosswestgate. this is after prince charles came out and questioned the short-termism of pension funds. he has to be able to invest sustainablely in the long-term to help returns. we'll take a short break while i clean the chocolate out of my system. china sees a rebound in ddp

growth. could they see more in the fourth quarter? after the break.

this is "worldwide exchange." i'm ross westgate. here are the headlines today. here today, gone tomorrow. chinese gdp growth rebounds in the first quarter, but officials warn the economy is likely to run into headwinds again in the fourth quarter. stocks around the world has been trading higher as a restart in washington now allows investors to turn their attention to things like the fed. many assessing tapering talk is dead until next year. and the u.s. is set to break open the dam, releasing a flood of economic data that had been

postponed during the government shut youp. the jobs report is now due on tuesday. and investors have been going gaga over google. it's pushed the stocks to a record high after the internet giant posted third quarter earnings easily beat forecasts. >> 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 to the start of your global trading day. the last one of the week. and we start with the s&p at an all-time high. the dow is fairly flat. weakened a little bit by the likes of ibm, goldman sachs and united healthcare, as well. the fass dak up at 13-year highs right now. the dow is about 10 points above fair value. the nasdaq at the moment is some 21 points above fair value and the s&p at the moment is about 2 points above fare value.

european economies. and here in europe, the ftse was just up 4 points. up another 19 points today just below the 6,6 of 00 level. this morning, the xetra dax fairly flat, cac 40 up 0.25% and the ftse mib is fairly flat, as well. focused on corporate news, google, in frankfurt up 7.5%. flirting with the $1,000 mark, as well. had a jump of third quarter earnings of around 36%. mixed news on the revenue models, there's a 26% rise for paid click for ads but a fall in the prices paid for each click. angela merkel has concede the miner down today. corporate production was up 32% year on year. however, the british based multi national reported a fall in iron ore output.

loreal, because it's worth it, is up 2.3 the% today. tease because revenues are up more than 2% following confirmation the cosmetics is in exclusive talk toes buy two of japan's based shiseido companies and staying in france, accor up 4.5%. new ceo sebastian basan is currently reorganizing the hotel operator by reducing its shares to ended properties to 20%. that's corporate news at the moment. keep your eye owes this. ten-year treasury yield, now down 2.55%. remember, just post the nonfed tapering decision, we only got down to 2.59% for the yield on the ten year. treasury yields are continuing a rally post the government shutdown. before that, we were up with the yields around 2.72%. italian yields are steady.

ten-year bund yields are lower and 10-year gilt yields are lower, as well, mirroring that move in treasuries. the dollar is on the back foot. now, remember, on wednesday, during the session, we hit 1.3472 on euro/dollar. we're now at 1.3688. not far away from the highs for the year on euro/dollar. dollar/yen is back below 98. and the pound getting back towards near eight-month, nine-month highs just below 1.62 at the moment. that's where we stand here in european trade. li sixuan has more on how we finish the week in asia. >> asian markets hit a five-month high on this friday as investors cheer. china's robust gdp data. and in the 11-hour u.s. debt deal. but the nikkei 225 ends today down by just a touch on some profit taking after a seven-day woining streak. and investors are keeping one eye on the u.s. job status slated to come out next tuesday.

and in china, the shanghai deposit gained a modest 0.25% and the hang seng gained over 1%. south korea's kospi gained 0.6%. australia shares are feeling the euphoria from the positive china data, ending higher by 0.75%. now for some winners. on the hong kong bores, china shares were among the biggest gainers, soaring over 9% today. to a record high on better than expected q3 results. with net incomes jumping 89% on year. this boosted by strong trends at its macau and singapore operations. numbers show macau's gambling revenue in the first three quarters of this year increased nearly 17% from last year. so other gaming stocks also on hot streak in today's session. all right. that was sixuan with a wrap in asia. sands china had an improvement

in the 7.5% in the previous three months. industrial output up 10.2% in september while retail sales jump 13.3%. china's bureau is warning it may be difficult to keep that pace in the fourth quarter and inflationary pressures will likely pick up. eunice yoon is with us from beijing. eunice, put this data into context for us. what does this mean for policymakers? >> well, people are just talking about how we did see a very good set of numbers for the third quarter. this is the best quarterly performance for the year. so if you are happy about that, that is driven by citi. infrastructure spending. but the big question, as you had noted, is what is going to happen for the rest of the year? we are starting to see some signs of peaking out. the september data, especially the retail sales figure, a little softer than what people had expected. 13.3%. also, the factory output was a little bit softer, staying with the september equity port data

that we got out a couple of days ago. overall, people are wondering what is going to happen for the rest of the year? there's a lot of uncertainty right now. there's been a ton of focus on a november party conference. it's big policy setting meeting. people are wondering what type of economic reforms might be coming out of that. and on top of that, there is still a lot of uncertainty surrounding what is going to happen in the united states. over the debt debate. people here have been talking about it. the chinese government on an official level said that they are very happy with the resoluti resolution. but at an unofficial level, the editorials came out critical about the whole deal. they basically were saying this was a band-aid temporary fix, that was only prolonged the -- what they called the u.s. debt bomb, or one inch longs. so there's been a lot of criticism about that. and one other thing people have

been talking about here has been the fact that chinese ratings agency has downgraded the united states because of all this politicking. now, that company is not well known internationally. and it doesn't hold as much sway or credibility, of course, as, say, fitch or moodies. but it does give you a sense of what china is thinking and it sends a signal about how china's feeling about all the politicking going on in washington and what that could potentially mean for their investment, that is u.s. treasuries. ross. >> okay. thanks for that, swish win. that's the latest out of beijing. joining me in the studio is miranda karr. miranda, nice to see you. how would you describe china's economy at the moment and the government's biggest challenge? >> well, this is what every invest he is wondering about this. what we saw in the q3 data is a lot of it was for the old

fashioned trainer. >> and that's the problem. >> exactly. investment, property, all of the state sectors very strong. that's why you saw the investment as a portion of gdp was 55.8%. so you are basically going back. it's artificial stimulus. >> how are they going to reign in government or government owned stem ewe husband, data and enterprises and allow the private sector to flourish more? >> well, that's if you like the billion dollar question. the big thing that's happening is happening in november. and there's going to be a -- sort of quite a big focus on this. we're expecting to see a reduction in gdp target from 7.5 to 7% next year. they're basically going to slow down growth. the big question is whether they can then reform it to make it more consumption based. that is getting the government out of a lot of the major sectors and liberalizing the

financial markets, liberal liezing the soe and taking -- you know, doing a lot of destabilizing things potentially but in the hopes of getting the longer term. >> and how destabilizing would it be? i mean, how gently can they do this? >> well, obviously, china does things step by step. >> yeah. >> you know, it's all -- >> it's incremental. that's a good thing, though, isn't it? >> it's good. but the -- where a lot of the reform happens is in the financial sector. so this is the bond market, liberalizing currency, liberalizing the interest rates. so you're no longer relying on cheap cost of capital closed economy, which is basically protecting it during times of trouble. that seems to be happening pretty quickly. and there's very little for that. where the big changes are is in things that the local government putting a property tax is, which is a massive -- you know, it's similar to the battles they're having over obama care.

but it's all going on behind closed doors. you don't see it. but that's the kind of thing they have to introduce and that's where the political resistance is. >> there's been a lot of chatter, of course, about china holding treasuries post the government debate in the u.s. and the shutdown, as well. as they gradually eliminate capital controls, what will happen to the outflows of chinese mining and where else it might end up as opposed into reserves just being part of u.s. treasuries? >> well, obviously, the uk is going to get a lot of the investment, sort of trying to get as much in as possible. it can go into alternative investments and also it can go -- it has gone out into a lot of the property sector. so the government is trying to do a balancing act where it encourages money back in, things like the shanghai free trade zone. you get money coming back into the economy, investing in sectors it had previously been limited in.

logistics, all that sort of stuff. so they're trying to give people an opportunity to put money back in. but yes, in terms of the where the domestic money goes, it's into other asset classes, it's into property and into overseas companies. so a big risk. >> miranda, good to see you, as always, miranda carr, head of msbo. the performance of pension funds have found a royal critic. prince charles has weighed into the debate. he slammed some managers for failing to provide adequate returns for those looking to build a nest egg. the prince said the city's short-term views are partly to blame. >> with an aging population and pension fund liabilities that are, therefore, stretching out for many decades, surely the current focus on quarterly capitalism is becoming increasingly unfit for purpose. >> so we want to hear from you. should royals be giving investment advice? actually, is prince charles correct?

if you want to join us in the situation, worldwide@cnbc.com, @cnbcwex or direct to me @rosswestgate. is that the right thing to be doing? should they be having a wider spread, as well? a big debate there, don't miss out. meanwhile, the agenda on the united states, the agendas are going to get slightly more full now that the government is back up and running. we've got september leading indicators up at 10:00 a.m. eastern. they're forecast to rise 10.7%. the fed official is speaking throughout the day. we have richmond fed president jeffrey lacker, tarullo, phil dudley, charles evans and fed governor jeremy stein. ge reports earnings before the open and we'll get results today from schlumberger, baker hughes, honeywell, morgan stanley and suntrust. "worldwide exchange" continues right after this.

stocks around the globe rebounding. china posts its fastest economic growth of the year, but is it a stimulus driven blip or the real

deal? and google gains following an earnings beat, sending the stocks to record highs. and other stories we're looking at today, after months of market rumors, lenovo appeared to be tire kicking on a blackberry bid. the chinese hardware firm has designed a nondisclosure packet to look at the hand setmaker's books, but reports differ on whether lenovo wants to buy all or just part of blackberry given regulatory hurdles around the deal. jpmorgan put the 60-story tower up for sale as it centralizes local operations, but will remain a tenant in the building. the deal by china's biggest conglomerate marks the second major property purchase by chinese rise in new york this month. last week, green holdings say it's taking a 70% stake in a $5 billion brooklyn apartment project. toyota is recalling nearly

900,000 vehicles, mostly in the u.s., because of a potential air bag issue. the carmaker says air bags in some 2012 and 2013 camrys, avalon and benza vehicles could suddenly inflate back of an electrical fault. two minor injuries have been reported. you might remember the famous amphibian bond car. it has a new owner. the tesla ceo was the buyer, shelling out nearly $1 million. the fully functioning under water vehicle featured in the james bond classic "the spy who loved me" a roger moore film, was discovered in a long island locker and i was purchased for less than $100 before being auctioned off in london last month. pretty amazing deal. we'll take a short break. still to come, rupert murdoch is preparing to send off another

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class ek fall drama set to play out today as rupert murdoch prepares for another annual meeting. they're expected to repeat calls for the peat ya mogul to be ousted at a conference later today. despite attempts this year to bolster the entertainment giant by splitting it from new corp.'s media properties, major firms have advised shareholders to oust murdoch and his sons from the company board. with me on the set here in london, ian wiska. welcome to you both. simon, do you think he should go from the board completely or do you think he should split one of the roles up, chairman and ceo? >> i think the starting place is the question of chairman and ceo. and some people are going to say this is a complicated issue. i'm not sure i understand why splitting roles matters, why

dual class capital structures matter, but it's a common sense issue. mr. murdoch control tess group that sets his pay. while many of us would like to work in a situation where we control a group that sets our own pay, common sense tells us that you don't get to have that. that's why the rules need to be split. it's high time it gets done. >> a lot of the critics cite the lapses at news corp., the news of the world phone hacking. the thing is, that group has been off. is that issue being dealt with? >> yeah. i think, you know, we have this pattern of what we would call high risk behavior, whether it's the phone hacking scandal or the myspa purchase or the implosion of the bskyb deal. and the problem is, there's no one held to account because mr. murdoch, while he only owns 14% of the company still holds 40% of the votes. and we think it's time for

investors like us who have a long-term view who are concerned about shareholder value over decades to be put at ease that the murdoch discount won't continue to hurt our returns. >> is this a fair point, do you believe in the murdoch discount, as simon puts it? >> that has always seem to have been the case. you've got two issues here with news corp. historically. you're absolute lit right, there has been an exception that murdoch has run the company pretty much for his own benefit and shareholders have gotten impacted. on the other hand, no one can doubt that from an understanding of the industry, and some of his moves, that he knows what he's doing in many cases. i think it's a little bit unfair on some of the commentary to say if, for example, there has been a -- or if there had been a split between the ceo and the chairman role, then, for example, the myspace acquisition wouldn't have happened or, for example, what happened with bskyb would have been

successful. these things happen all the time with companies like the chairman whether they're split or not. but certainly i think when you have an independent chairman, you know, there are two benefits. one is obviously to represent the other shareholders, you know, dealing with the management. but also, as well, can act as a good point of advice. an independent point of advice. and i think one of the issues that you do have with news corp. is, of course, a very tight family structure. very close family and friends. and sometimes that tends to mean that you get to unity of thinking. which is not always great. >> would the -- if there was less murdoch influence on this business, do you think the stock would be higher? which is what basically investors -- that's what we sort of want to know, really. >> well, again, there are two as specs to this as the influence of murdoch, whether it's depressing or increasing the share price. and then there's the structure, as well. i think if you have a single

voting structure, no doubt the share price will be higher. there's also a -- you can see those stocks. people don't like to buy into those types of stocks. so i think on the second point, absolutely right. on the first point, a little bit of a tough call. the personal view is it probably would be. rupert murdoch has added a lot to the business. yet at the same time, there are certain people who will not invest the business because of its position. >> simon, the company will say, look, that they've made big progress in terms of bolstering shareholder value, they've strengthened the compliance policy. despite your objection hes, what do you think is actually going to happen? >> well, you know, we see each year now more and more institutional investors, people like us who have an eye on long-term shareholder value. so we're not satisfied with short-term increase in the share

price, which is good. we really have an eye on the long-term future. i think unless you see some fundamental changes at the heart of how the business is done, we're fought going to be satisfied. and my hunch is that today we won't see the kind of action we want on the part of the murdoch family, each though you'll see very high levels of support for our proposals in terms of higher account nlt and transparency. but i do hope in time you'll start to see changes, the split of the company was a step in the right direction and we hope there's more to come. >> simon, thanks for that. you're sort of investor prince charles would like after his conference today. simon, ian, thank you very much. still to come, it's been a stormy week for u.s. banks. could morgan stanley buck the trend? we'll get into it right after this.

this is "worldwide exchange." i'm ross westgate. here are the headlines today from around the globe. here today, but gone tomorrow. chinese gdp growth rebounds in the fourth quarter. the economy is likely to run into problems again in this fourth quarter. stocks around the world are trading higher as a restart in washington allows investors to turn their attention back. many now betting the taper talk will be dead until well into the first quarter. plus, the u.s. is set to break out the dam.

it's releasing a flood of economic data that had been postponed during the government shutdown. the jobs report, that's now due on tuesday. and investors have been going gaga over google. it's pushed the stop to a record high after earnings that easily beat forecast. >> if you've just joined us stateside, hello and welcome warm to the final day of trading for the week. the dow a little bit flat yesterday. not helped out by a drag from ibm and goldman sachs amongst others, as well, and united healthcare. right now, we're called a little higher. the s&p is about 3 points above fair value at the moment. the nasdaq is currently around

21 points above fair value. and the dow, as you can see, currently some 30 points or 32 points above fair value at the moment, as well. so that rally looks like it's going to continue. it has global equities. the ftse cnbc global 300 currently up 12 points, 0.2%. european equities slightly more mixed today. slim gains. the ftse 100 yesterday was up just 4 points at 6,576. it's now up another 20 points, 0.3% higher this morning. xetra dax fairly muted, performance only up about 11. same for the cac 40, up about 0.3%. couple of stocks there outperforming today, loreal, hotel chains doing fairly well after their numbers. ftse mib, fairly flat as you can see. that's where we stand as we get back to looking at things like economic data. we're going to get a flood of releases coming out.

five fed speakers talking today, as well. here are some of the thoughts of some of the guests that we've already had on cnbc today. >> came out with its q3 booking update and that had 120% growth in there. stock core fusion, another recent ipo. if they deliver what they said they would do in their last trading upset, they're going to do 32% revenue growth rate. so you can find quite strong growth from the uk, smaller companies. >> i look at something like standard charter now which is lloyd's. 5%, i told you that 18 months ago. you would have thought there was something wrong with me. that's astonishing. prudential is quite relative. growth still remains very much there.

>> it has weakened the last 36 hours in expectation of tapering being pushed back further. we think it's not likely enough to be strong enough to warrant tapering in december. it is likely to be based on relative to the other countries. we think the dollar could come back, particularly against the euro but the ecb is being dovish, and particularly against sterling which had a very good run. >> morgan stanley updates investors before the opening bell today. this comes after goldman sachs blamed the economic outlook on its drop in revenue. its fixed income revenue collapsed down 44%. chris katowski joins us from new york. thanks for joining us. >> good morning. >> goldman sachs, talk about a

bottom line beating as missed revenues. what's the key take away? what's the implication? >> well, i think it was a generally a weak quarter in trading. we saw it and, you happen, trading comes and goes. i've followed these stocks for a long time and i'm fairly philosophical about it. but what's actually interesting is that this will probably be the 10th quarter where we have industrywide where we have trading revenues down out of the last 15. so in the post crisis era, what's interesting is that precrisis in general trading revenues in the industry, they bounced around quarter to quarter. but generally, industry revenues kept pace with the growth of financial assets on the planet. and here we have a situation where post crisis 10 out of the last 15 quarters trading revenues have gone down on an industrywide basis. >> what's weird is when you wrote about this is that

management sort of said, it's just a difficult environment, we're not that happy with the results, but they didn't actually give us an awful lot more than that. why do you think that is inspect. >> well, they never give you an awful lot more than that. it's one of the frustrating things about following a company like goldman. you know, it is what it is and, you know, i've been in management at oppenheimer's equity business. i will say it does happen that some quarters you miss it. but i suspect what happened here is you had this violent pullback in rates in june and july and when markets dislocate that much, it's easy for some company -- you never know which one it's going to be, but somebody is going to be stuck on the wrong side of the trade. >> compare the investment banks to commercial banks right now, chris. >> well, the commercial bank -- and i'm, in general, much more favorably disposed to either the

commercial banks or the private equity companies. the investment banks, like i said, ten out of 15 quarters it's been negative comparisons. for the commercial banks, on the other hand, you have this tremendous tailwind from improving credit quality. so, you know, mortgage delinquencies peaked in january of 2010. and they've been coming down, you know, roughly a third si over the last 45 months. there's this enormous tailwind. it's probably going to keep getting better. as that happens, expenses will come down, loan losses still have a little room to come down. but that's why i've always called good credit quality is the gift that keeps giving. you'll have good trading quarters and bad trading quarters. but when i look at my industry right now, loan lows this quarter will be around $8 billion or $9 billion. back in 2010, it was $30 billion. >> and would more than outweigh,

chris, any impact from rising rates or a slowdown in re-fis. >> well, i mean, the slow yoen in re-phis, yes. but, you know, the mortgage business is not a great business. it's a lot of revenues without a lot of profit. and even in the great times, i never particularly liked the mortgage business. that's not so worrying. i do think that once interest rates start rising, then there's risk because, you know, even though the central banks always think they're going to have this neatly managed process where rates only go up 100 or 200 basis points, if you look since 1960, once rates start going up, and i set the benchmark at 200 basis points over two years, they don't just stop there. what happens on average is you get rising rates for 36 months and on average they go up over 500 basis points. and, you know, when rates really start moving and if it moves in a discontinuous way, that's the next time you're going to have stress in the financial system. >> yeah. and that may be years off.

but, again -- >> i'm confused as to -- >> never as neat as people think. >> at the beginning of the cycle some people say it's a good thing for the banks. they're going to make more money. and rates are riding because the economy is healthy. so, you know, which way -- >> okay. so i think absolutely, the first 100 basis points of rising rates are going to be great because what will happen is that the banks will lag deposit costs on the way up. they'll earn more money on free balances like checking accounts. the first -- and it will be happening because the economy is getting better. so the first 1100 or 200 basis points are going to be great. but the problem is rarely does it stop there somehow. and it's the second 200 basis points i worry about. again, that may be three or four years off, but that's never a

good thing. >> chris, thanks for that. still to come, google gains ground following an earnings beat. more after this. [ woman ] if e the audacity to believe your financial advisor should focus on your long-term goals, not their short-term agenda. [ male announcer ] join the nearly 7 million investors who think like you do. face time and think time make a difference. at edward jones, it's how we make sense of investing.

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shares of google might shine today.

the company posted better than expected results after the close. cnbc's jon fortt has been running through the numbers. >> after that dismal report from ibm, google has turned the frown upside down. google turned in revenue of $14.89 billion, well above wall street's expectations. earnings per share, $10.74 above the $10.36 that the street was looking for. some notable areas here, google website, the largest revenue category clocked in at $9.39 billion above the $9.14 billion. that was the street's consensus. motorola money, still losing money, but revenue clocked in at $1.18 billion, which is exactly what the street was looking pore. in terms of advertising metrics, paid clicks were up 26%, better than the 22% we saw them up in

q2 and cost per click down 8%. that's because the growth in mobile has more clicks coming in, but they don't pay quite as well. but the more clicks, that's good news. the stock was up to $957 per share after hours by the time the conference call ended. that's up 7.7%. legislaturery tauing about the future, he said he won't join every earnings call going forward. going to allocate his time differently. also, gave some stats on youtube, saying that mobile makes up nearly 40% of all youtube traffic these days, up from 66% just two years ago. also saying driverless cars now look to be pretty much inevitable, so they won't be a commercial product any more soon and investors should be asking them to spend more money on highly speculative projects because those are the sorts of things that move the needle. he's having trouble finding

those big, wild ideas to spend all that money on. guys, back to you. >> jon fortt with a goo at google. meanwhile, blackberry has been shopping itself around to buyers. they may have found a potential suitor in the far east. bertha is with us this morning. who is looking at them, bertha? >> good morning, ross. lenovo has money to spend and they have a target. they've reportedly signed a nondisclosure agreement to take a look at blackberry's books. "the wall street journal" says the chinese pcmaker is actively considering a bid for the company. mrb said it was exploring options that could include an outright sale. last month, the struggling smartphonemaker got a blim $9 a share offer for a consortium led by its largest shareholder fairfax financial. but shares have traded well below that price on doubts that that deal would ever go ahead. other suitors may include cisco and sap. lenovo has long been rumor ed to be interested in blackberry.

earlier this year, the company's cfo casually suggested management had given some thought to making an offer. a few months later, lenovo's ceo told a french paper an acquisition would make sense. the company has a strong track record, foreign acquisitions, buying ibm's pc business in 200 5, german pcmaker midion in 2011 and a majority stake in a join venture with japan's nec. and a blackberry deal could face major regulatory hurdles. most experts believe the company's top assets will likely be sold to a north american company. and here is the reason why. turned investment, canada act, the government has wide power toes veto any foreign takeover of the canadian asset or company deems the deal won't bring a net benefit or threatens national security. just last week, canada blocked a

bid by an egyptian telecom firm opinion let's take a look at blackberry shares and see if they are moving this morning. a nice 2% bump in the adr's trading in germany. you know, a lot of us who are still adicked to our blackberrys are really watching this closely. it seems like there's bad news coming off the time from blackberry. you wonder how long a lifeline they have. >> i thought the northbound new nebs were pretty good. bertha, for now, thanks very much, indeed. have a good day there. and a recap of the headlines, stocks around the world up on washington's restart. speculation takes default well off the table until next year. china posted a growth, but is it a stimulus blitz or the real deal? google gaining following an earnings beat sending the stock up to a record high.

meanwhile, the rest of washington is back to business. we're expecting a slew of data next week, including the all important nonfarms report comes out on tuesday. we'll look ahead to what it all means for investors after this. ♪ ♪ [ male announcer ] more room in economy plus. more comfort, more of what you need. ♪

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is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. taper talk is being pushed into next year. this as the dallas president richard if issuer said it would be difficult following the uncertainty.

lindsay, they said employment growth was fairly modest. what did you think was going to happen? >> growth has been very modest. i think it's been very clear that the u.s. economy has been losing momentum since the start of the year. despite the government shutdown, businesses are hesitant to invest. manufacturing is directionless at this point. we still have a tremendous amount of barriers and burdens that we're facing here in the u.s. economy. so from the fe standpoint, it does not suggest that they can justify a change in policy at this point. >> yeah. look, the other thing that mentioned was that contact said they were cautious to expand payrolls because afford fordable care act and fiscal policy. so in some ways, is kicking the can politically further down the road mean that that is going to weigh on people's desire to hire? >> that's exactly right.

there's a solution that washington came up with is not a solution at all. it's a short-term fix and we will simply revisit this conversation a few months from now. what that does is it leaves this overhang of uncertainty for consumers, for businesses, for the market in general. so it's really disappointing that despite the fact that we had months of discussion and weeks of government shutdown, we don't have a long-term certainty or outlook for what our taxes are going to be for the costs surrounding health care, what government spending is going to look like. this will very much keep businesses and consumers on the so i had lines. >> take there, lindsay. we'll come back to you in a moment. meanwhile, republicans are turning their focus back to problems with president obama's health care program. the health and human services sector kathleen sebelius will testify next week. they sent her a message demanding she make officials

available for a hearing on thursday. reports earnings before the open. we get results from shum ler shay, baker hughes, honeywell, morgan stanley and suntrust. we're waiting for a flood of data as the markets reopen. the payroll data, of course, delayed by one week to november the 8th. import prices are now to wednesday's ppi and cpi have been published still pushed to the following week. and the commerce department says it's going to revise the calendar soon. besides lindsay, we're joined by todd horowitz. todd, look, got out of the shutdown, the s&p at an all-time

high. what's going to happen now? >> good morning, ross. it's hard to fight the tape, hard to fight the fed. now with the problems in washington, it doesn't look like there will be a taper even a year from now. it looks like the fed is painted into a box. and this free flow of money is going to continue. we are still able to climb the wall with lack of growth. i'm shower that this jobs number is going to be pretty bad, as well. i think this is also going to be a bad number so -- >> why -- you've just issued a whole list of problems been why are stocks going higher?

>> free money. it's monopoly money. although interest rates for the wealthy and the very rich. they're taking money at extremely low rates. but the big guys, they get all they want. there is nowhere else to go. >> do you really think we could have tapering off the table until back end of next year? >> you know wa? i think the market is loving the idea of further fed accommodation. and i think you're very right, bernanke opened the door for tapering to become a 2014 event. in the press conference following the september meeting, he clearly said even if we begin to taper this year, he's opened the window for tapering to begin in 2014. fed officials have been very clear that they're willing to taper sooner than later if

market data continues to improve. but there is so much slack in the data right now. september is expected to be lat lackluster at best. the october jobs report is likely to show more of the same which is not that continued improvement that the fed needs to justify a change in policy. >> yeah. it's interesting. joe, we just saw ten-year yields there on the treasury. we're down to -- we put it up again, 2.55%. we're now below, sorry, todd, where we were post the fed nontapering decision. how much lower do you think yields could go? >> you know, there's talk that they could go a lot lower. i don't think so. i think we're probably going to base somewhere around here, 2-4 to 2.5. i think that will probably be the near term low. certainly it looks like they can go lower. i think they'll base somewhere around here because i think interest rates are going to go up on their own. >> todd, always good to see you.

thank you. that's it for today's edition of "worldwide exchange." "squawk box" is coming up in a few moments time. whatever happens, we hope you have a profitable day. bye for now.

good morning. the washington fight is over for now, so investors are shifting their focus to earnings in the economy. we're going to get a jobs number on tuesday. >> tuesday. >> tuesday. today is friday, though, october 18th, 2013. "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. i'm andrew ross sorkin along with joe kernen and michelle caruso cabrera sitting in for

becky quick this morning. let's begin with the markets. stocks coming off a bullish session yesterday, the s&p ending at a record high. meanwhile, the dow staging an impressive comeback, as well. a triple digit loss to finish near flat and the so-called fear gauge, oh, the fear gauge, the vix slumping below 14. take a look at futures this morning and see how things are setting themselves up. we're going to check it out right over here. the dow, up about 12 points. s&p 500 up about 3 points and then the nasdaq up close to 22 points. on today's agenda, here is what we've got. earnings central, quarterly reports due before the bell. here is what's coming up. dow component general elect, morgan stanley, honey well and a couple of others. we'll bring you the numbers and instant analysis. as for the economy, september's leading indicator set to hit the tape at 10:00 eastern time. and then there's the issue of all of the government data that hasn't been released during the shutdown. the