good morning, everyone. today is day two of the fomc meeting. that means a softer or easier monetary policy for longer. that is what the markets want. that's why we saw that rally in the s&p, the dow at record highs.

the sfox europe 6 hurn opening up, modest gains this morning. many would argue even if we get that dovish fomc announcement latered to, we may not be seeing too much of a reaction in the markets because much of the dovishness has been priced in. we'll see what we do. let's get back out to steve because we've got some spanish data crossing the wire. spain emerges from a two-year recession in the third quarter. according to the national statistics institute, the gross domestic products rose 071% on a quarterly basis. now, look, this is initial data. the subject revisions, but is up from a contraction of 0.1% in the second quarter. we have to take positives where we can. the smallest possible increase in gdp. but it is an increase. i'll talk about this briefly and then we'll move on to cpi. >> what concerns me about that,

if i take your point, it is an increase, can your growth in normal gdp sustain your budget deficits over the long-term? in other words, on a three-year view, are you going to get to the point where your budget deficit is the same as gdp growth? based on those numbers, i don't see clear evidence that we will get there. some of the concerns about the he periphery have necessarily gone away. >> it's the direction of travel. and the same goes, of course, for the employment market, as well. it's moving in the right direction, according to recent data. the other flash, which i don't think is quite as encouraging, but you can correct me. you're the economist now. >> i have an economic degree. >> i've got a woodwork -- no, actually, i haven't, but i'm not carp.ter. spain consumer prices rose by

0.1% year on year in october according to initial data there. hcpi up 0.1%. that's more disappointing, isn't it? that's not good, is it? >> i'm kind of relaxed about the inflation numbers considering we stay out of the deflationary world. what matters most to me, as you said earlier, is what matters the most. at the moment, they see value, they're searching for yields. i'm not convinced the underlying economics necessarily match up with the story i'm hearing for the investors. >> all right. allen capper, thank you so much. >> we'll keep you in touch with the markets. it is a risk on day. health care, telcos and media. some of the more defensive stocks are seeing a little bit

of underperformance today, but only in theory. health care off by around 0.1%. we have news out by sanofi, probably not taking too well by the markets. you've got oil and gas up by 0.75%. remember, one of the best performers in yesterday's session after we got the better than expected results from bp, but autos, stand out performer, up by 0.8%. if you look at one of the chips here, you have vw. if i can see that correct ly, after its backed view for 2014. let's take a look at the individual markets. the ftse 100 is up by 0.3%. now, barclay's is, of course, one of the stocks that we're looking at this morning as the banks came out with earnings, up around 2.5%.

in part driven by a reduction in fixed income currency, commodities income. bank income as a whole was down 0.7% on the quarter. this was a slight beat in terms of the investment bank. why are shares up this morning? >> i think it's kind of what the markets expected. so a lot of the information has been well flagged. as you said, the investment bank is down, in fact, quarter on quarter. if you look at the thick, which is what we were talking about before, that's down 22%. but if you look year on year, it's actually down about 44%. tease quite a hit. interestingly, the bank has shown that equities has been up 27%. so that is some positive news there. but for the quarter, the pretax profits did fall from 1.35 billion from 1.87 billion last

year. it's not great news. news has fallen across the sector. it's what we've seen. the retail bank did quite well, up 3%. but remember, with barclay's, 40% comes from the investment bank. they've also said that in terms of rwas have come down on a basis, it's come down $24 billion. there's a transformed programmed in place and that is all of their cost reduction, things like the tax structuring business that they've come out of. that's cost them about $741 million which is part of why they've been hit with those costs. but it's all about capital for barclay's. >> i have to make an apology to you. allen is not a sales commercial pilot. that's what he wanted to be when he was a child. he's actually a failed actor, right? >> that is correct, yes.

>> what does a failed actor do? >> i'm not the best person to ask. >> that's what it says. that sounds like a risk controller or an accountant or a chief financial service. >> at the time, he was involved with schemes. i think the degree of intellectual aptitude for mathematics you need -- >> would it have been more interesting for you to become an actor? >> absolutely not. a career in the city is much more interesting. >> steve, what have you failed at? >> everything. that's why i'm here. >> christian is joining us. well, i will ask you, what did you want to be when you were a child, christian? >> i wanted to be a writer at the time. i remember when i was 10 years old, i wanted to be a writer and here i am, i'm a writer.

>> have you written a book yet, a hard back? >> no. tease still in the making so i'm still kind of thinking it over. >> and in the meantime, we all have to think about momentum trading. buying on blue, selling on red. it's all about momentum coming into the year, isn't it? >> yeah, yeah, called window dressing. it's an exciting exercise. it's a simple strategy because basically what you do is think about what you're going to talk about after the year-end. therefore, you want to be -- not to be caught with any dogs in your portfolio. so basically sell the losers and buy the winners. that's a pretty simple way to put it. >> but let me get this you're. you're saying a lot of these guys that haven't made their

benchmark, they're going to make sure they own the right stocks so when they have that conversation with those investors and people who put money with their funds, they're going to say, look, we've still got the right stocks even though we haven't made the money. is that part of it? >> well, we're really talking about managing. i think it's a natural strategy. it's good academic research on that. it's maybe not the best way of proposing it to the investment world, but it's actually what happens in the fund managed floor. >> now, one of the things you mentioned earlier, which is worrying me intensely is you said towards the end of the year they're turning to the losers and buying the winners. surely, would you know one should do that every day. surely what you are describing

as being the year-end process is something that should take every day of the year the make sure the strategy is optimized. what different about the month of november and december here? >> well, the difference is there's a cutoff day and that's something where you really have to take your sonlt and the rest of the year i think -- i mean, that's at least what the academic research shows. investment manager res a lot more open to take risks and maybe also going against the crowd. and i think what you're describing is pure momentum. always kind of sticking to the winners. but there's also some value guys out that pooh people have sudden buyers towards growth. but certainly, if they risk didn't pay out, they would so rethink, how would they claim it in front of their clients? i think that's the effect they're talking about year-end. how would on you frame 2014 in

front of your clients? what is your strategy right now for next year? >> for 2014? for 2014, we think it will have to kind of overcome your fears again. so i think if you want to make money in these markets, you probably have to overrule some of your deep emotion, your gut feeling, and go into some areas where you might not really like it. so i think there will be a further upside to risky stuff. there would be junk rallies. there will be high yields on the front page. everybody will like. nol not really like, but will have to buy some of the local. and in between, you will be safe with a severe correction. but i think the overall trend is up. christ yap, i get your point about winner takes all, about momentum trading, by buy the hot stocks. but what happens when this

market bearing in mind the reality. discounting, underlying economic and corporate conditions, as well. we're in danger of running too far, but with that momentum you're talking about, are we setting ourselves up for a problem early in next year? >> thanks for reminding me of the fundamentals. with all this liquidity, we're really in the kind of burden moment of this major, major exercise in paper money creation by the central bank. i think that's what will keep us busy into first quarter 2015. but you're right. growth doesn't look too promising. i think we should kind of remain in this -- some kind of goldie locks stage on the control and growth is so-so. not really doing too well, but doing something between 1% and 3%, 3 and a half with a global scale. basically, we're not doing really well, but this is good enough to keep things going and

keep to kind to have liquidity environment going for global equity and some risk assets. >> we're going to leave it there. go and write that novel. it's never too late. a glass of red wine, your type writer here, i can see you doing that. it would be great. good luck, sir. >> thank you. >> so we've got christian who wanted to be an author. allen wanted to be an airline pilot. karen, what did you want to be? a ballerina or something. >> of course, i wanted to be a princess. what else would you expect? >> oh, kate got the job, i'm afraid. >> i know. it's too bat bad. but you know what? when i was 7 or 8, i wanted to be a financial analyst. >> no way. >> geeky, huh? >> for some reason, i only made it to cnbc. >> no, you have plenty of time.

>> how can any 7 or 8-year-old want to be a financial analyst? >> don't ask me. don't ask me. >> that is amazing. anyway, give us some financial analysis on the wall. >> i'll do my vest best. let's take a look at the french market. we are seeing a modest increase of around 0.1%. 4,284 is the level we're trading at. sanofi in san francisco has lowered i said earnings guidance for the second time this year after seeing a slowdown in sales in emerging markets especially in china. some traders were saying we could see these shares getting hit to the tune of 3%. but it is only down by 0.3% and that's why the impact on the french market is limited, as well. keep in mind sanofi has the second is highest market cap on that specific market. moving on to the norwegian

markets where -- oh, it's over here, the obx is up 0.5%. the third quarter adjusted operating profit came in higher than analyst forecast rising 1% to 40.4 billion norwegian krona. it will spend more in 2013 than previously expected. shares up marginally by a third, 0.1%. let's continue with dutch markets. tom tom is one of the companies that came out westernings this morning. third quarter profit beat expectations and the company listed its full year outlook. it now expects revenue for the year to come in towards the top of its 900 to 950 million euro forecast. shares in the company are seeing a nice jump to the upside, buying more than 5%. all right. we've been focusing on the data this morning that's been

crossing the wires. stephane is the man on the ground in madrid. the data confirmed spain has emerged from recession after two years. what's the breakdown in gdp? >> the problems are far from being over from spain. market reaction is extremely limited. that is the main driver to the spanish economy. the result of the policy complemented by the spanish prime minister who implemented some structural reforms, including some deep reforms of the labor market. these made spain more competitive and helped to sell its production outside the country. this is the most important and most positive signal for the spanish economy. on the other hand, the internal demand remains weak and ma may be because of the extremely

high -- in spain. consumer sentiment has been falling for three years. it seems to be let me thinked to some technical ek because last year in september there was a vat and that's the reason why the comparison basis was favorable. but the internal demand remains very weak. it will remain very weak according to a private economist. the imf believes the unemployment rate will remain about 25% in the next four years in spain. pel be filling spain with various cargo areas. stay with us. >> stephane, thank you so much for that. let's continue our check of the markets across europe. the dax in germany is up by 0.3%. still above that 9,000 level. it is seeing record high after

record high. one of the companies we're looking at this morning is vw. the company says it still predicts higher revenues this year than 2012. this is in part because operating profits beat expectations. and i guess there is some relief out there, the company did back its 2013 guidance. let's head towards the austrian market. the atx is one of the best performers this morning, up by 1% at 2,591. atx bank has confirmed 2013 guidance for lower operating profit around 5%. it sees risk costs falling as central and eastern economies improve, particularly in romania. and stay tuned. closing bell will have an exclusive interview with the ceo

of axa bank coming up appear 7:30 cet. omb is up by 1.85%. jeff is standing by to talk to the firm's ceo. take it away. >> absolutely, carolin. before we pick up on that, i'm sure they will be delighted to hear the share price is higher this morning. not quite a thoroughbred, by hardly apply iing -- it has hal the average unemployment rate, 4.5% here. 1% growth penciled in for 2013. and the deficit, well, are rather low 2.3%. 2.5%. somewhere around there expected for 2013.

so by and large, not in bad shape. in that context, worth focusing on the euro and the recent euro strength and whether it is going to have a larger impact on growth prospects running into 2014. now, we caught up with an analyst on these markets earlier this morning. dr. valentine hofstatta. and i raised that question with him. did you see any from him on strength? >> we're not too much worried yet. what we have seen in europe and western europe is the session because of the prices. so the current euro strength can be be -- in its recovery.

>> so while we're here in vienna, ger heart voice is with me. thank you so much for joining us on cnbc. results were in last week. i think we saw slightly lower production numbers and an issue, i think, surrounding what's going on in libya and some of the operations in north africa. the strategy, it seems to me increasingly is for you now to move your upstream focus away from the middle east and the north african market. can you talk to us a little bit about why you've taken that decision? >> yes. omv is a fortune 500 company. as such, we have moved into downstream and now we have changed much more going into up

stre stream. therefore, made decision recently to move into the -- and we have two areas in europe. one is upstream and the other one is the deep part of the black sea in romania. >> but i conclude from that that, really, you've had enough in the instability in the middle eastern region and that it's better to bring it back to a european strategy. >> it's once more portfolio issue and i think you have to have the right balance and, therefore, to get the right balance, with future investments and we have this huge recovery in the black sea and that is before investment this upcoming year. >> can i ask you, what do you think the regrowth prospects are inspect. >> 4% per year, including the sector but we've made substantial discoveries in the

north part of the north sea. recently visiting discovery and the things with huge growth potential for our company. >> and what do you think the headline crude price is going to look like through the next 6 to 12 months? >> the last three years, you see an oil price between 100, 110. as we see in the global growth of range of 3% at this point. obviously, the upcoming months similar to what we have. >> so stability with b really, no significant changes. >> gdp growth in romania, compared to central european region in case of 0.5%. it has again.

austria here to go into this growth market. >> just a final question to wrap up. in the uk, we have an ongoing issue with power companies pushing up prices. i was recently at an event in brussels where ten of europe's leading energy generators, including any which is in your space, were complaining about the confused energy strategy we seem to have in europe and coming out of brussels. can i ask you to comment on that. how does this issue of the wrong mix of generating capacity, how does this get resolved? have we shot ourselves in the foot in europe by expanding too rapidly into the renewable space? >> the problem is europe has european glamour policy. but globally, on the other hand, europe doesn't have an energy policy. and different energy mixes and it's very difficult to coordinate. on the other hand, europe is

investing too much money in subsidies, so renewable. and i think it would be better to move much more from the subsidies into innovation. this one has to be tough. >> the politicians are listening in. your sharing are up about 1.5% as we talk to you. hopefully, that will give you a good start to your business day. let me send it back to you in london for the time being. we're here in vienna for a couple of days. we have a number of high profile companies that will be talking to us. back to you. >> geoff, let me just pick up on one point about austria and how it's looking and how it reinvented itself. the ceo of erste says he sees no significant loan growth in next quarters. my point being, this is a country which looked east, it looked to central europe and invested heavily. has aus try ya got to reinvent

itself because the last invasion just hasn't worked? >> i think if you sit down and have that conversation over a longer time, wa you'll hear is we backed the right horse. with their young generation, they ultimately will come good. this is the emerging market, the developed market today. there will be problems along the way. as we know, it's not just the austrian banks that have this problem. it's the same problem written large across europe. too much money was expended. unique aspect in this part of the world. often, it was lent in currencies on or about the domestic currency. that brought in a currency angle, as well. but there is a constipation in the austrian banking system that needs to be cleared. and that's the process that's

ongoing at the moment. and i think you look at erste, you look and it's going to be tough for the next 12 to 18 months. >> okay. >> but ultimately, what's the alternative? you invest in austria or you move into central and eastern europe and look for the faster growth. >> if you have in vienna, go and see geoffry. if you don't agree with what he's saying, he's on the hoffsburg palace. go and chat with him.

here you can see, despite concerns, equities are up. that's 30 minutes into trade. this as fed tapering expectations move into next year. here in europe, spain just about has emerged from two years on the session. barclay's, one of the top gainers on the market after pretax profit slump less than expected. it's cooperating with regulators in the probe into currency manipulation. and gearing up for a good

year, volkswagen says it expects 2013 sales revenue to exceed last year's luxury car sales drive profits. shares in german automaker getting at the top of the back. also in the corporate, sanofi shares reverse early losses and inch into the green. investors digest a second profit warning from the french carmaker. realtime markets in europe have been open for about a half an hour. we are up modestly higher, up by around 0.4%. this follows a broadly higher session in asia where markets are once again close to the five-year highes and a record high for the dow and the s&p 500. i want to show you what's happening with the sectors this morning. on the other side of the ledger, we've got oil and gas continuing

in yesterday's outperformance and autos up by 1.5%. we heard the positive news coming from volkswagen before. let's move on to the biggest movers and shakers in terms of the individual stocks. telecom is up by 2.7%. but in spain, viscofan is off by 8.3%. this is after the ratings were cut from a sell to a hold. the second biggest clothing retailer in the country is off by a little more than 2.6%. sales were slightly above forecasts and i want to leave but a look at finland's puola bank. 6.4% rise in quarterly pretax profits as a result of the strength in its nonlife insurance business. steve. >> very nice, indeed. thank you. the biggest names in technology ascend upon dublin today as the 2013 web summit

kicks off. on hand to officiate is the prime minister and kenny who will ring the bell for the event. carolin is talking to the worldwide web world. >> thanks, steve. there's a whole bunch of executives here. facebook, google, yahoo!. but in some ways, this conference is all about the start-ups and the future of technology. joining me to talk about that is the cofounder and ceo greg hailer. nice to see you here today. great to be back. >> let's talk about this company. it's a taxi app. basically, if i want a taxi, i can go on my app, put in my location. >> my first business was to try and create -- make the courier business, guys delivering stuff on motorbikes in london a little bit less screwed up.

and so once that business was sold to any courier company, we got the band back together to look at the taxi skri which we found was more screwed up than the courier industry. taxis are spending time looking for passengers and passengers are a couple blocks over looking for them. so we put they go them together. >> the likes of sir richard branson, one of the investors. many people here want to replicate what you've done. how do you get the access to funds? >> i think it's all about the team. it really is. so this business has been successful because i am focused about the team and about recruiting and retaining the very best people that are way above our weight. we have tom, who is the head of coffee at starbucks running north america.

and we have guys running europe that are used to running businesses that are several hundred times our size. we're respected. this is a business that's going to grow very, very quickly. >> you have business that has volume, a motley fleet of taxi drivers they say working for you. but in some ways, could this be the down fall of the business because you don't have control over the brand as such? how do you address the concerns of those who might have a negative experience? >> i think we do have control of the brand. the only challenge people can go to is -- and we know the exact experience that they have. we detect whether or not they've had a good experience or a bad experience based on the outcome of that and we contact them. i, as a matter of fact, do at least an hour of competitor call aes week trying to keep in touch with customers that have had bad experiences, that have had good experiences, trying to find out

how we can improve our product on our service. that's what we're doing here. it's a global brand and that has to stand for trust because that's the way you build great marketplace business. >> you have an irish subsidiary. is it about saving millions when it's about profitable cash? >> no, absolutely non. it makes money and has made money since day one. it's profitable now and has been profitable since day one. but b of course, there's enormous r&d. without the cash structure that is favorable to companies that ireland offers, would it be possible? >> we're a uk headquarter company. we get month benefits from the irish tax laws whatsoever when it comes to anything you've mentioned. we're here not because of that, because because it has some of the brightest engineeres and operators in the entire world and because it has one of the most iconic markets in the

entire world and it needed fixing. so that is why we chose dublin as our first city and ire license since is it expanded. and we're on track and the guys are on track to make this into one of the biggest countries that we have sxp we're on the virnlg of making this is a $100 million business. thank you so much for joining us. so, steve, lots of questions about this tax structure. the 12.35% corporate tax here, we're going to be asking more start-ups about this, but also the prime minister a little later on today. let me toss it back over to you. >> are you going to go for prime minister or tea shock? in i was going to go for prime minister, but i can go tea shock, as well. >> it's one of the difficult words we have to read sometimes. karen, excellent work.

fantastic. thank you very much, indeed, from dublin. >> thanks, steve. let's move on. a public dispute between the miner rio tinto and mongolia. a lot open companies looking to capitalize on the extra the teejic location of the company. >> thank you very much, indeed, for joining us. let me start off on the rio question.

it's never been 100 against zero. that is the real side. that's why from our mongolian government, we decided the real issue is no longer -- it should be a business issue and that should be decide on those sitting around the table. that's why they also about different issues and now we reduced the price by three. this process is ongoing. >> so this is a flagship of how

international companies and the state of mongolia can cooperate, as well. it is in the mining sector. is that the transition of mongolia or what is it, sir? >> of course, mining is -- and based on mining income, the government has positive to diversify our economy. we have really good potential brand name for the future of mongolia. for example, we have livestock and our meat, for example, lamb and beef can be -- our copy sheep usually go themselves and it -- is simple. in other countries, you fought actually fit them. that's why our beef lamb can be unique for customer necessary china and any other company.

the cashmere in mongolia is the best quality in the world. >> you're describing a number of sectors, particularly mining and pricing which sounds very, very volatile. the development could be driven heavily by that type of volatility imposed from outside. what do you think the economy might look like in two or three years time? also, how would you manage that volatility of pricing? >> we are enjoying good period of time. this kind of tempo we are trying to keep in coming years. projections are really bright.

we have very worse scenarios, great customer approach and that's where the country has huge potential because we've surrounded by two big neighbors, russia and china, the sixth and seventh economy in the world. and in foreign policy, we have kind of this tubing that was implied any country. that's why you -- >> and interest in that product is very much live. but there's no denying investor confidence into the country is extremely low right now. if we look at fdi flows, they're down 14.7%. now you've harmonized some of the tax rules for foreigners and for domestic investors.

is that going to be able to reverse the trend? >> that's why in this formula our direct investors confidence. and i just visit this one month ago cnbc's studio in hong kong. but doing this one month, we reenacted new law. and we are -- mon goal ya is no longer going to provide investors into -- it will be similar. they're going to enjoy stable tax -- >> tax rules have been overturned before. how do investors know that this time around they're not going to to be thrown out? >> that is why we put special

clause in that only members of parliament can make amendment to this investment clause. it means national consensus needed to change to mistake amendment to this law. that's why it will be very stable during maybe for vacation. and we have this kind of investment loss. >> is it china and russia who are the key investors in your country? >> our two big neighbors, it's our destiny that we're surrounded by them. mongolia s second biggest -- country in the world. but without this big advantage. but now it's turning into an advantage because this biggest

supplier in the world and biggest country in the world surrounding us. and that's why we're talking about just between china and russia. it's growth. and the road for pipeline, read through mongolia. of course, it's to connect europe with asia. why well, sir, it was hong kong last month. london this month. and i love this time together with your thing to talk about the assets of the country. saying a man and a wife have a dispute they should sit down the table and talk about it. then you mentioned kashmir. >> we decided -- and very good thing is that now we're feeding with each of those. we are one team following one goals. and that's why it's very important to our issues.

we also agree with these kind of announcements. it's like two work right now. we never these kind of things in two years. >> we're going to leave it there, sir. >> and we're quite confidence that we can be in a little agreement with russia -- in i think the one that says no more points of dispute, sir. and sure. all this important issue will be in very short period of time and government is after this solution and we are -- also very interested in continuing. >> thank you very much indeed for your time. very nice to see you. we're going to take a short break. finally some good news for spain, just about good news. i think 0.1% in terms of latest gtp figures are nothing to write

home about, but it is positive. towards the country's 25 plus percent jobless creation. we'll talk to spain after the break. ♪ [ male announcer ] when we built the cadillac ats from the ground up to be the world's best sport sedan... ♪ ...people noticed. ♪ the cadillac ats -- 2013 north american car of the year. lease this cadillac ats for around $299 per month with premium care maintenance luded.

the aussie is at risk of a 25% decline by 2016 according to one strategist at societe generale. but could a fall in commodity prices see the currency weaken even further? go to cnbc.com for more calls on the ought trailan dollar. one-third of gdp, maple cross is projecting $44 billion of output will be based in countries most likely to be impacted by the economic impact of greenhouse gases. check out our website for a full rundown of the report. and an onion crisis has left a trail of tears across india. onion price ves tripled in india over the past 2 months which is proving to be highly burden so many for one of the country's 1.2 billion people. and remember, follow us on twitter @cnbcworld.

spain has emerged from recession in the first quarter, growing 0.01%. how significant is this, sir? >> well, it's a turning point and we hope that this signals a period of growth over the next few quarters. >> it's a glimmer of home, really, but is this very, very moderate growth we're seeing in the spanish economy enough to bing down massive unemployment levels and is it enough to bring down public debt? >> well, obviously, at this moment, this is not enough to bring down a 25% unemployment rate. what we think is that there are different things that are

happening in the spanish economy that it might be lowering the number of gdp growth that we need to have in order to create growth. for example, we are gain iing m wage flexibility through macro reform that might mean through next year with 1% growth we might have around 0.5% job creation next year. >> one of the key issues, which is bothering me about this small number here is is this sustaining growth? i appreciate it's positive, but does this necessarily lead to stronger numbers in 2014? >> well, that's a really good question. i mean, what we are seeing is that what we've been having for the last two years now is -- or four years now is a strong expert growth. and export growth, even on

the -- as we are having a recession in our main trading partner, which is the eu. so we think that along with the price competitiveness that we've been gaining, the reforms that we've been seeing, that that export growth and the recovery that we're seeing in europe, that that export growth is going to remain over the next couple of years. now, the important difference between next few years is the difference in consolidation. the more flexible targets that have been given in spain implies that the fiscal effort has come down from around measures that amounted to 4% to 5% of gdp last year to 2% to 2.5% this year to almost 0.5% next year. the fiscal consolidation is weakening given the big effort

that has been done over the last couple of years. and that's going to make domestic demand contribute less in the negatively to growth over the next couple of years. >> okay. we'll leave it there. great commentaries for you today. your e-mails about banks, fines and regulations, as well. also, desperate to talk about the average rate of return, small caps versus the s&p, as well. finding out performance for all of these midcaps and looking at the one-year performance of the russell up 38%. the s&p is up 4%, as well. what do you think about the midcaps and small caps? i know you're a credit man, as well. on the rebalancing, they will always do better? >> i think between the initial stage of any recovery, you would expect the large capitalization stocks, the multi nationals to outperform. and i think what you've seen over the last year or so is a kind of gave a catch up,

particularly since last july when draghi turned around people's minds on the eurozone cris crisis. the catch is looking forward in 2014. because then the game changer could really be the risk of possibly slower growth. and the momentum of money driving stocks higher and driving credit tighter. so it will be different names which will -- >> in terms of trades, you've got our recommendation still and i'm going to pull this one out and you can tell me what it means. what does that mean? >> so what we've noticed is that you go back over the last three months or so during the recent rally. you would have thought the more volatile names would have outperformed in a manner which is consistent with such a strong market. they haven't. not as much as we would have thought they would. >> we're going to leave it there. lovely to see you today. tom writes in and says it's a booking. thanks very much, indeed. good luck on your dream to be a commercial airline pilot. oakley and raybans rose 7%

in the third quarter. we began asking him about the numbers. >> i would start as usual with top line. our growth in the last probably 12 quarters in a row has always been fast, high single digits, and this quarter, as well. but on one side, this is offering us great opportunities, new consumers, new geographies, new technologies. but on the other side, we've got new challenges. instability, volatility, uncertainty. and on this side, we had really a very new quarter. we had a perfect storm of old currencies. and now we're fantastic growth was basically raised. but sometimes your health, sometimes you're defeated by currencies, but important rule of the game is to constantly adapt. and this is what we're doing.

>> and the rest of that is on "worldwide exchange" coming next. in the short-term, job and jobless figures out, the unadjusted jobless total falling to 2.801 million according to the labor office, the german october and adjusted jobless total falling by that amount. the jobless rate holding steady at 6.9%. time for one more e-mail. sean writes in and says when i was a kid, my dream was to become a starting pitcher for the boston red sox. sean, whatever you're doing, "squawk box" europe can help you achieve your dreams. our guest host tomorrow will be another man who dreams amongst the stars. have a great day.

hello. you're watching "worldwide exchange." i'm ross westgate. barclay's is concerned it's in with regulators in an fx trading probe. managing to beat forecasts, despite a slump in investment banking profit. record sales of porsche