hello, everybody. welcome. i'm louisa bojesen. these are your headlines from around the world. european markets edging higher in early trade as investors sideline mixed pmi data. u.s. consumers are said not to have enough spending power.

and lofiason bank sees profits rise sending the stock to the top of the stoxx 600. coming up, nobel prize laureate tells us why president putin commands so much power. >> announcer: you're watching "worldwide exchange," bringing you business news from around the global. all right. as anticipated, the eurozone pmi data is just hitting our wires right now. the eurozone august flash composite data coming in at a level of 52.8, a little below the reuters poll. reuters forecasted 53.4. so it's actually quite a bit

below. again, it's weaker than what we saw in july and it's weaker than what the reuters poll anticipation had been. the flash composite pmi data. the output price index, 48.9. that's a slight dip from what we saw in july. the flash manufacturing pmi data coming in weaker than anticipated according to the polls again. 50.8. the expectation was for 51.3 according to the reuters poll. what we're looking at is a flash manufacturing pmi figure for the eurozone, which is the lowest that we've seen since july of 2013. just glancing through some of the data they say the eurozone is august flash services business expectations index, 58.6. wow, that's a drop from july. july was 61.7. just be aware, this data is sitting on the wires right now

and it looks quite a bit weaker than anticipation had been heading into the states. the euro/dollar right now, 1.3268. dipping a little bit after we've had this reading. it comes off the back of the flash services pmi data for germany. that was slightly stronger than anticipated and the french pmi data more or less stabilizing. let's talk about what's going on in europe. why not? tom elliott joins us here at the top of the show. he's -- welcome, tom. also with us is rob doddson, senior economist at robson. what do you make of the data? a little des appointing, but was that priced in? >> i think it's a little more disappointment than what people were expecting. a couple of years, getting some swag. not very much, very muted growth. it's weaker than expected gdp

numbers for the second quarter. really what we're looking at in the eurozone is weak growth. i don't think this is changing that picture at all. >> are we worried because it's impacting core europe now? >> i think so. in this data we've had today, so close in august. stabilization, again, there's a big difference between the service sector. it's manufacturing sector which would be hit more by exports. >> the two economies continues. >> yeah, i can see this being used by some people to put further pressure on the ecb. the easing announcement out of the way. what do we know is inevitable. we've done enough heavy lifting

for you. interest rates are due to be squat. it's not going to make any difference to the economy by dropping a third. you, meaning rome and paris, have to have structural reform in place. i also think as a separate problem we have a bank switched, needing some form of top. i think eventually we'll need it to be done. >> i've made note of a couple of your points. do you think that the ecb does need to do more or is it down to the individual governments or is it down to pushing the markets through? >> the market probably will shrug that off. i think the ecb are more likely to wait and see what happens in the coming months. again, we're looking at some growth in the coming system.

from the financial markets to moving into the real economy in the months ahead. some of the things that targeted long-term fpsing options, they're coming into play in the second half of the year. people put pressure on the ecb to maybe soften the gap and a stance going forward. i think it's probably a bit too early to say that's necessary at the moment. >> we're still in the middle of that old story, then. we're talking about a little bit of everything. pay to play, we tell you why superstars like rihanna could have to part with their cash for the privilege of performing at the super bowl. tough times for the tooth fairy, she's now giving 8% less than what she was giving last year. what's the going rate, though.? talk about inflationary or deflationary scenario in tooth

fairiness. where in the world are people most sleep deprived? we'll tell you all a little bit later on. sorry, i had to yawning seeing those pictures. we'll talk about this and, of course, much more in the markets. let's talk about our european markets because this morning here in europe, we've been trending a little bit high high higher. we were called a little higher. we had the hawkish minutes from the fed and from the bank of england, as well, so we're looking cozy at that. now, whew, sorry. i have to catch my breath. so the ftse 100 a little higher

up by approximately 0.25%. trading a little higher this morning as seen. infineon shares on the rise after the german shipmaker agreed to buy the -- for $3 billion. at the same time, raiffaison has been getting a bit of a boost after reporting second quarter earnings and reported its full year outlook. it assured investors saying it does not expect a major impact on russia. over here, trading lower by 2.35% on ahold. shares falling to the bottom of the stoxx 600 after posting weaker than expected profits in the quarter.

now, earlier here on cnbc, we spoke to the cnbc of our hope. we asked about difficulties with the u.s. consumer. they have caused suspendble income for most of our customers going up. and so you see customers, some wages are increasing again. but the spendable income, what they can spend on foods and others is still very modest. i think this is the biggest issue we see in europe. >> now, i want to show you the place on the bond markets, as well. you would have noted yesterday after we had the minutes released that you saw treasury yields climbing on the back of the fed minutes. this morning, we're still seeing yields pushing higher and you have the 10-year bund yielding around 1%.

the ten-year french o.a.t. yielding 1.4%. the ten-year spanish, 2.42%. given that we had the hawkish stance and we had these yields riding in the debt markets, we then saw the dollar climbing to 11 1-month highs against a whole basket of currencies on these hawkish minutes. at the same time, don't forget the housing data that was out on tuesday, as well. quite a bit stronger than anticipated. do keep in mind we had the weaker than anticipated chinese data and that has had a little bit of a pressure on some of the currency commodities out there, for example, the aussie/dollar trading a bit on the back of that. let's talk about what's taking place when it comes to the state of the world's second largest economy because hsbc's preliminary reading in china has

said coming in at a three-month low. sri jegarajah joins us from asia with an update on what the impact has been there. hi, sri, good to see you. >> good to see you, too, louisa. let's start with that china data. manufacturing activity for the month of august, it is subject to revision. three-month lows as you mentioned for the headline, 50.3. the market is expecting a reading of 51.5. a lot of these markets are off the low of the day with a sharp decline in about six weeks, still beating in negative territory off the lows. similar story, the shanghai comp, as well. the market was down by well over 1% at one point during the session.

i do want to talk about the composite. these headlines just in from the indonesian capital. there are reports that the police there have been using water cannons and tear gas to disburse supporters of the former special forces general who are waiting on a court ruling on an election fraud case. in indonesia for the markets on the whole seem to be taking this in their stride, up marginally at 5,198. on this market, louisa, marking time. quite a kaut cautious mood here ahead of yellen's address at jackson hole. that's where we stand. back to you now. >> sri, thank you very much for that. now, nowhere does a property

boom or property bust like dubai does. does it now represent a good value for investors? we'll find out. >> apparently i'm supposed to find a property for $500,000. >> this is the show apartment. there's for our clients who slip their properties throughout the construction period. you're looking at around about 13%, 15% in nine months. >> and all of this for $500,000? >> that is the advantage, $500,000. >> i'll think about it. the money is in the car, so i'll give you an answer after that. >> do a deal. in india we have 400 million people

who don't have electricity and i just figured that it's time i do something about it. what we're doing right now, along with ibm, is to actually transfer data through a satellite from our wind farms directly onto the cloud. i think we could create a far more efficient system across the whole network where we could actually draw down different kinds of energy based on when it's needed by the consumer. a smarter energy system is made with the ibm cloud. the ibm cloud is the cloud for business.

well, welcome back, everybody. this is "worldwide exchange" and i'm louisa bojesen. we probably all feel like we could do more sleep. where in the world are you most likely to miss out on shut eye?

head to cnbc.com to read about the city where they get less than six hours a night and find out where the most rested workers are with the most leisurely sleep patterns. how much do you sleep, tom? >> in the winter, i do hibernate and get about eight hours. >> six hours in the summer? >> yeah, yeah. >> that's enough for you? >> i do get up early in the summer, yeah. >> what does hibernate mean, ten hours? >> no, no, up to 8, 8 1/2 hours in january, february. >> i never understand. if you've had a tough week, you go to bed and you sleep like 14 hours or something ridiculous, you feel like a zombie the rest of the day. it feels like you haven't slept. >> but it's amazing how you can get used to that. >> we want to hear from you on this topic. how many hours of sleep do you get each night? what's your average? it shouldn't be what your

average is. it should be what's your i feel good average, you know, when you bounce and you come to work and you feel good. what's the ideal amount? let me know. you can find us on e-mail, world would it@cnbc.com. you can find us on twitter, @cnbcwex. let us know how much do you sleep. >> my director says stay awake, stay awake now. this is interesting. the decision by majority shareholders to trim the company shook the dubai stock market and brought back memories of the dubai crash. we're looking at whether dubai is heading for another property crash. >> dubai would have been the

place to make a big buck in realty. the market is still going strong. property prices increased by a modest 2.3% in 2014. bringing gains over the last year to 211%. but that's exactly the problem. memories are still fresh of the last real estate bubble that blew up in 2009 and exposed a debt laden emirates. >> the residential market is getting close to the top. we expect continued growth for another 12 or 18 months. but certainly not at the rate we've been seeing. it's been unsustainable. >> the government wanted to cool the rally, doubling transaction fees to 4% and introducing revised caps on mortgages. still, the international monetary fund has warned repeatedly over the summer that more measure res needed to avoid a replay of the previous disaster. beyond the announcement of

architecture grandeur are those that never saw the light of day. cnbc visited several abandon construction sites and spoke to many investors hurt by the last property crash. nobody agreed to appear on camera due to litigation or fear of retribution. from libya to syria, wealth is often looking for a new home and most roads lead to dubai. if you've got money, there are plenty of ways to spend it here without getting asked too many questions. >> if i have to buy land on -- even an apartment, a nigerian apartment, the best price i pay

in the best hours is $1,000. i compare that to -- i compare that toland. i compare that to bombay. >> reporter: the rapidly growing pipeline is only fueling -- they forecast more than 40,000 additional units to come online through 2016. a large chunk will be filled by strong economic growth. the imf expects expansion to average 5.5% until the end of the decade. under -- hosting the world's fair, the expo, in 2020. >> it's difficult to give you a sense of the construction boom that is under way here. and with more grandios projects announced, the new few years will be a real test for whether the dubai property market has really met -- cnbc, dubai. joining me now from dubai, is the ceo of a large property

developer in dubai. welcome, sanjay. good to see you. let's start off with some of the basics for viewers that essentially you were very close to defate and you were forced to restructure your debt after dubai's debt crisis back in 2008. where are you now? >> well, i think as people may have read in the newspaper today, that we have made considerable profit with our debt restructuring in as much as that we have repaid all of our bank debt of $9 billion -- which is equal to $2.2 billion four years ahead of time. and that's a considerable achievement, considering that we sought is our restructuring completed in august 2011. in a space of three years, we

have continued our obligations to the banks. and a lot has changed in the.company and -- can has gone by the products and the investments in the market. >> you've managed to repay all of this debt early due to the recovery in the dubai housing markets? >> that is right. >> and is this a sustainable recovery? a lot of people say we're heading down the same route we did in 2008 and we're at discrepancy with regard to 2008 as we did then and that is unsustainable still. >> well, i think from there, we still the developer has the new projects in our sales uptick has

been substantial. in as much as we have something like 14,000 units which are in the pipeline and in various communities. everything has been sold and given the fact that we ask people to give us checks -- i don't see there is any real concern. the reason why i say that is because i think the investors will become very prudent. location has become very prime. and value for money, i think, rules the game, particularly, and some of the projects which we launch right across to the village, the park, have seen an offparticular. there is demand for a good product. >> sure. >> at the right price. >> sanjay, let me just ask you, how about the higher seas and

the mortgage cap that was recently introduced? some again are saying that's going to put a damper on house price growth. >> i think if you look at it from the perspective of a global fee, which is normally -- worldwide, the average is around 7% to 10%. dubai has this move, it's regulation in line with what it sees. initially, it probably stops in the tracks and says, it eats into my transition. but i think we settle in and this is involving the change in regulation into the markets. >> sanjay, thank you very much for being with us, san yeah muchanda. thank you. now the minutes from the

latest fed meeting suggests policymakers could be ready to hike rates. official generally agree that the job market was recovering quicker than expected. most wanted further evidence on the economy, on labor market, on inflagdz before changing their view. that view could come as soon as tomorrow. the fed chair janet yellen expected to talk about the jobs picture when he talks about delegates at the jackson hole meeting. tom, what do you make of the minutes? >> they're driving blind. for them to make any judgment on the -- when we're going to see wage inflation is absolutely, i'd have thought, near impossible. >> so what should they be focusing on instead, though? i mean, they're trying to find a parameter and to say, well, when this happens, then we -- >> no, i think we're looking at wage inflation.

what they want -- i'd have thought what they want to see is to be looking at the dipping point between when you're going to tighten labor markets and when you get wage inflation about to pick up, yeah, and it's going to be difficult to know when to reach that point. you've got one of the lowest amounts of labor participation in the last 30 years. unemployment is being absorbed. and the uk has similar things with the self-employees data. >> we're definitely squarely looking at wage inflation, that's for sure, these days. we'll be talking about wage inflation and that's for sure and other fantastic stuff. tom, thank you very much for being with us. >> thank you. and as the fed meeting gets under way in jackson hole, we'll be speaking to one of the leading u.s. economists in an

exclusive interview. and an old soirn nobel prize laureate coming up at 11:35 cet. get your questions in so i can wroo them. we'll see you just after the break.

hi, everybody. welcome back. investor sideline the mixed pmi data. instead, eye jackson hole for more details on how hawkish the fed really is. checking out, shares under pressure after sales fall in its key markets. the ceo telling us u.s. consumers don't have enough spending power. and not hurt by sanctions, profits rise in key russian markets, sending shares to the top of the stoxx 600. and ukraine's foreign minister telling cnbc the country needs russian influence to resolve problems at its borders. coming up, roger minerson tells us why president putin commands so much power.

excludeing fuel, slightly higher than anticipated, 0.5% growth month on month and 2.4% growth year on year, which is bang in line with expectations. the downward pressure for nonstore retailing and petrol stations is dipping a little bit. after we had that retail sales and public net spending data through, as well. so this is what we're seeing. retail sales, though, weaker than anticipated. july is being a foggy month pretty much across the board. you're looking at the uk yields there, heading a little bit higher on the back of this.

we've otherwise seen yields under pressure and that seemingly still is the name of the game out there. but that's just coming through on our wires now. in fact, the retail sales data weakened during the month of july. now, u.s. special forces launched an unsuccessful mission to rescue the american host aems in syria, the pentagon has revealed. they reportedly included u.s. journalist james soley. they've threatened to execute another american journalist. germany and italy, meanwhile, have concerns that they will supply forces in northern iraq. >> the united states of america will continue to do what we must do to protect our people. we will be vigilant and we will be relentless. when people harm americans everywhere, we do what we can to

see that justice is done. >> richard engle filed this report from the turkish border with syria. >> the so-called islamic state now stretches over syria and iraq. it has heavy weapons, american-made ones stolen from the iraqi army and isis is imposing its medieval interpretation of islamic law. yet many are rushing to become citizens of this barbaric nation. the last voice james foley heard was of his murderer, which some say sounds like a british accent. david cameron was appalled. >> it looks increasingly likely that it is a british citizen. this is deeply shocking. >> shocking, but not surprising at all. security officials say isis has between 7,000 and 12,000 foreign fighters. hundreds from europe and one known american. >> we are coming for you. mark my words. >> he died carrying out a suicide bombing for a group

considered more violent than al qaeda. >> meeting a group like al qaeda which is perpetrated around the world, the tactics would be far too brutal. >> a big reason there are so many foreign fighters in syria is that it's so easy to get there. young men from all over the world come to turkey. they make their way to the border crossing and simply walk in. and turkish authorities are making no real effort to stop them. dimitry bodanik crossed from syria into turkey today. he knows a lot about foreign fighters. his own son was one of them. dimitry says he was lured in, believing he would be helping muslims. >> you know, his side, step by step, they changed the minds. you know, they -- >> radicalizing them. so dimitry did something radical himself. >> you decided you had to go in and save him yourself? >> there was no solution. i couldn't stay at home. >> he went in and found his son

and brought him out. now other parents have asked dimitry to help recover their children. >> joining me now, harry, good to see you. i'm looking at the price of oil and brent falling to somewhere in the region of 14-month lows, around 102 at the moment. naumly because isin. >> iraq is not produce el produ market has i knnvested the glob

share and we're now back to $100. >> where is the floor looking at wti? >> from my point of view, i think we've reached the floor on brent. our view is that as we go towards the end of the year, countries could easily cut back on their production to support oil prices. they're producing 10 million barrels a day, so they have a lot of room. we could not discount another geopolitically driven price rally. investors have now spoke to long positions. so technically, for us, $100 on brerchbt is the floor, 92, 93 on wti where we're at. currently, it's the bottom end of the trading range and is we're looking to improve to 110 on brent and possibly 1100 on wti. >> how long do you think that the contained scenario is going to last where future prices are higher than current prices? >> it's a difficult question. but if you look at the current market and the structure of

prices, we have a -- indeed in brent. we don't suppose that's going to last lock because it's a result of faction. putting extreme pressure on the price, we had physical factors in the market. interest in the supply of light oil from countries such as libya or high loadings in countries such as nigeria. these factors are transitory. what does that mean in terms of year-end prices? do you think did correction is a bit overdone currently? >> yes. as i said, by the time we get to the end of the year, you know, from $1100 on brent, we could easily come back to 1110 and for wti, $93 could easily change to a hundred. but interesting for us is in this sort of price scenario is to look at how the curb is going

to shape. bnp paribas recommends being short. we expect that that trade currently trading near flat is going to increase. that's the way we would approach this particular price scenario. >> harry, how much do you sleep? >> not much. >> four hours? >> does it show on my face? >> not at all. but we have this poll out and somebody has written up a nice piece online talking about what the average amount is people sleep in different parts of the world. what's your average? >> the average is probably six. ideally, i'd want to get eight hours and on weekends more. >> so what keeps you up? is that when you log on and you shouldn't be logging on? >> my phone, my blackberry, all that. >> put it to one side. harry, good seeing you. again, head online and read more about how people sleep all

across the globe. you can find us on twitter. let us know how much do you sleep. what's your average that you really want to reach? european closing -- no, that's the wrong address. worldwide@cnbc.com. that's the correct e-mail address. here in the morning. and you can find us on twitter, as well,@louisady bojesen. hsbc's preliminary reading of the chinese august manufacturing activity coming in at a three-month low well below forecasts. the reading of 53.3 compared to july's 51.7 level which was at an 18-month high. coming to the heels of the disappointing data from lending to investment all fueling fears of a slowdown. the japanese government is reportedly building up a war chest to fend off the impact of a second sales tax hike which is due next year. according to the nikkei, prime

minister abe is considering setting aside about $10 billion for stimulus spending. the government previously said that it will decide sometime towards tend of the year whether to proceed with the new 2% tax hike. and indonesia's highest court is due to announce a verdict on last month's presidential election imminently. the outcome of the contest is expected to be upheld which will pay the way for the whipper to take over as leader of the world's third largest democracy. runner ups asked the constitutional court to overturn the election results alleging mass fraud. as i said, find us on e-mail, worldwide@cnbc.com. that's the e-mail address if you want to get in touch with us, if you want to talk to some of on ur our guests through me. in other news, pay to play at the super bowl. that's what the nfl now is asking a potential halftime musical act at next year's big

game. the league reportedly reached out to rihanna, to katy perry, cold play. they're asking if they would be willing to contribute a portion of their post super bowl income to the league or if they would make some type of financial contribution in exchange for a spot in the halftime gig. there you go. and the tooth fairy is pulling purse strings together a little tighter this year. according to visa, on average, she left $3.40 for every lost tooth she found under the pillow, down from $3.70 in 2013. it's still more than back in 2012 which she was only depositing $3 under the child's pillow, a toothless child's pillow. my mouth is watering a bit watching the toothbrushing pictures. when you brush your teeth, you feel all minty fresh. i'm trying to remember, what did

i get under my pillow? i think i go 50 euro or something, it's worth half a danish crown, which is nothing. what do you get? my director, how much do you get? >> nothing. >> how much do you get out there? let us know what you got or what you give to your children today. what do they expect when they lose a tooth, as well. inflation, deflation. former presidents, actors, they have all been tipping buckets of ice water over themselves to raise money for als. the cnbc anchors got in on the freezing action. my colleague, kelly evans, she challenged me. take a look. >> ready? here it goes. the ice bucket challenge. >> whew. >> are you ready, kelly? >> i'm ready. >> oh, yeah.

>> i nominate jean-claude beaver, i nominate hsbc's david bloom and i nominate our very open cnbc tonya dryer. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com

welcome back to "worldwide exchange." shares of hewlett packard rose in the third quarter thanks to a double digit jump in pc sales. revenues came in at $26.3 and that's the first time in three years the tech giant posted growth. the ceo meg whitman warned this may not be a pattern for coming quarters. >> $26 approximately in revenue for the quarter. that was up over 1% from one year ago. the first time in thee years hewlett packard has seen revenue growth.

a quarter led by results, that being systems and the likes where it was 12% revenue growth. typically a low margin business, but they did get those margins up to 4%. but that 12% revenue growth, a very strong number, not just commercial, which turned last quarter, but seeing significant increases in personal computer sales to consumers, perhaps taking shares from the likes of sony and toshiba. revenues came in below estimates. toner sales were not as strong as they have hoped for and there is an oversupply to a certain extent of ink that they're hoping to work through in the next quart other. cash generation, 2.7 billion. 20 to $9 billion for the year. a very strong number for hewlett packard on that area as it continues to watch costs and keep cost cutting at the

forefront. wine posting its first annual write-downs on its businesses there. the world's number two winemaker has destroyed 240,000 cases of unsold wine over the last two years. ceo mike clark says the firm will reset next year, focusing on the high end market in the states. the russian lender btb posted first half profits down from almost 28 billion rubles reported in the same period last year. the group unveiled increase in bad loan provisions, due to a slowdown in the russian economy and tensions with ukraine. the ukraine's economy minutester has offered to resign his post in the government and he did that in a text message to reuters. this as the country's central bank urged companies to sell their foreign currency earnings in the domestic market.

previously companies were asked to offload 50% of those earnings. policymakers say this new rule will stay in place until september. donestk is reeling from an outbreak of fighting between kiev and rebel forces. the ukrainian military pushes to regain control. separately, an additional nine people were killed overnight in clashes nearby. earlier, ukraine's minister of foreign affairs told cnbc that while they are seeking to stabilize the region, working with rebels is proving difficult. of course it's about this. of course it's about settlement. obviously, it's difficult to talk to terrorists who have been shutting down the claims, who just three days ago felt on the

convoy with humanitarian convoy, with depot, with women, with children. >> and we'll be speaking to roger meyerson, 2007 nobel prize laureate about what's behind vladimir putin's power coming up at 11:35 cet. now, in the middle east, hamas says an israeli air strike in gaza has killed the wife and son of its military leader mohammed diev. the war shows no signs of easing after the collapse of another cease-fire. hamas launched more than 180 rockets tuesday and wednesday mainly at southern israel. though no casualties were reported on the israeli side. egypt says it will continue to speak to both parties in the conflict after delegates left cairo on tuesday. in africa, police officers in liberia have fired live rounds into a crowd of protesters attempting to escape

from an area quarantined because of ebola. witnesses say at least four people have been wounded in clashes with police after authorities imposed a nationwide curfew earlier this week. the death toll from the disease has now reached 1,350 people in west africa. welcome, anna. and you just got back from africa. you took a trip, you were in west africa, including nigeria and ghana? >> yes. >> what are your initial thoughts and what are people saying both about ebola, how do deal with it and about the impact on what's happening to the economy and to businesses? >> we have to look at west africa and we tend to generalize. when we look at the ebola outbreak, primarily three countries within west africa. there have been some cases in nigeria, but only four. in fact, two days ago, five

people were discharged from hospital that had the virus because they were healthy again. so in the countries that most multi nationals are doing business in, which is ghana and nigeria, it has not taken root as much right now. of course, it is a risk and it is impacting to some extent some economic sectors as well as private consumption because people are going much more to consume in private spaces. but overall, i think the risk is currently overstated when it comes to the economic back. >> and how are businesses dealing with it? what are you hearing? >> currently, there's a bit of wait and see mode. seeing more healthy, watching the hands more frequently in the market. but other than that, ebola is not such an infectious disease on a daily basis 37 there's a lot of misinformation about it.

so currently i don't think businesses are as prepared for it. >> so with regard to what's happening in areas like nigeria, we hear nigeria still is a massive growth story, especially when it comes to expectations, exploding within population in the next few years. what about in terms of investment strategy? >> i found out some quite interesting things. most companies used to headquarter their regional operations in ghana. bur that's not enough any more. nigeria is called a monster within west africa. it is such a large market that it demands a lot of attention. and companies have to be present locally and only focus in nigeria and on nigeria.

the ivory coast is starting to become a hub for west africa. that seems to be the best operational structure for the west in the region. >> i was speaking to somebody recently, an african central banker who is making the point that not enough strategy is in place with regard to asia. there needs to be a large particular china strategy that we want china to come and invest into africa, but we need some type of a strategy so that the longevity of the investment continues and so it benefits the actual company being invested into. do you agree with that? do you think more needs to be done on strategy terms? >> some countries will have quite a bit developed in china strategy. and whether it has developed a partnership, not necessarily relationship that is not efficient so china, a partnership that is benefiting the country. and, for example, i would think that the plant in east africa has achieved to some extent when it comes to infrastructure

development. other countries have been less successful for that and definitely there's still the need for a strategy. >> where now do you think is the next country to invest in africa.? is it nigeriaer on are there hiding gems that we are talking about? >> there are a lot of hidden gems. i often compare it to -- nigeria and africa is like russia in central and eastern europe. the hidden gem, of course, is angola. and everyone is looking right now at ethiopia with 19 million people. it's currently opening up to international business. so highways something to watch. and i think when we look at 2015, there are some other countries on the agenda. still a real frontier market. >> there's a lot going on. >> interesting with angola, whether you can unlock the gas resources and the potential there for natural gas. anna, thank you very much for being wis, anna rosenberg,

associate practice leader for sub-saharan africa frontier strategy group. how much do you sleep, anna? >> i try to get eight hours if possible, but it's not possible. it's more like six. >> everybody has been saying six this morning. we probably could deal with a little bit more sleep. where in the world are you most likely to miss out on valuable shut eye? head to cnbc.com to find out why residents get less than six hours a night and where the most rested workers are. worldwide@cnbc.com and we'll see you right after the break.

hi, everybody. welcome back. these are your headlines from around the world. european markets edging higher. they sidelined the data. checking out, shares under pressure after the super market group sees sales falling in its markets. u.s. consumers don't have enough spending power. and hewlett packard posting a surprise jump in revenue on stronger pc sales. shares, though, dipping after hours as ceo meg whit man

signaling challenges ahead. and ukraine's foreign minutester telling cnbc that the country needs russian influence to resolve problems at its borders. coming up, the nobel prize laureate roger myerson tells us why president putin commands so much power. display you're watching "worldwide exchange," bringing you business news from around the globe. so hi, everybody. good morning if you're just joining us. i know it's still early for you stateside. we've got a great day ahead, a great hour ahead, as well, here on "worldwide exchange." the second hour. just checking in on the urch futures, we're indicated a little higher across the board on the u.s. markets. still a couple of hours to go as per usual at this time of day, but nevertheless, that is what we're seeing at the moment. we're called he higher here in europe at the moment.

we managed to open higher, as well, despite the chinese manufacturing data worse than anticipated. miners have been watched closely this morning. by and large, in europe, with all of our european markets are trending to the upside in the region of 0.5% give or take depending on which market you're looking at. when it comes to bond markets, on the back of the hawkish minister, you saw treasury yields climbing on the back of the minutes. so we're continuing to see that today as seen here on screen for you. the yields heading higher pushing north across theboard here with a little bit of pressure and the willingness to buy into the bond market. although that's been the opposite trend from what we've seen as of late. we have seen a lot of buying in bond markets pushing yields to multi year lows. in turn, on the back of the minutes of the yields pushing higher, we saw the green back rallying to 1 1-month highs in the last couple of hours trade. the aussie being hit a bit by

the chinese data. by by and large, though, pretty stable trade seen here across the board ahead of jackson hole and yellen's speech. 1.3266 is where we are on the euro/dollar. skree rejoins us from singapore. sri, always good to see you. always good to hear how things are being pieced together. >> most of the markets, louisa, are wrapping up the trading day this thursday in the region. and the major casualties, really, greater china. you mentioned the data today flash pmi numbers from hsbc market. the private forecasters for manufacturing activity. these are preliminary numbers, so they are volatile. they are subject to revision. but a three-month low at the headline, 50.3. the market was expecting 51.5.

so that is arguably telling us of the need in the system. happening second has come back after settlement to some fairley reasonable levels. at one point, we saw shares decline in six months. the shanghai composite was down 0.4%. the kospi down by 1.4%. the weaker won weighing on the market, as well. the nikkei 225, though, is one of the big gainers today, really benefiting from the softness in the japanese currency. it's helping the exporters on that particular market. then we'll talk about southeast

asia and tell you about the jakarta composite. having reasonable data today despite political uncertainty. these reports breaking over the last hour or so from the capital. indonesian police have used water cannons and tear gas to disperse people waiting on a court ruling for an election fraud case. last month election results were disputed. most of these markets and indices are marking time just ahead of the yellen speech at jackson hole. that's why we stand right now on this thursday. back to you. >> precisely holding out and waiting for that. sri, thank you very much for that. now, as sri says, people really waiting for what yellen will say. minutes from the latest fed meeting suggested, though, that some policymakers could be ready

to hike rates. officially generally agreed that the job market was recovering quicker than expected. however, most wanted further evidence on the economy on the labor market and inflation before changing their view. that could come as soon as tomorrow. steve liesman is there and sent this report. >> if federal reserve releasing minutes for its july meeting. a hawkish tone. the minutes saying that many believe towards the fed's goals and that they should raise rates quicker than markets expect. some are ready to move very quickly, almost immediately. there was a big debate about labor slack, how much of it was there and how much concern the federal reserve should have along with concerns about wage pressure. we'll discuss the communication strategy and how the fed might want to normalize rates which is

a euphemism for raising rates. shares markets expect rates to rise in july 2015. that was before these minutes came out. the idea may have been pushed forward a little bit, perhaps by the minutes. and the rate hike cycle is seen ending in the fifth quarter of 2017 at 3.2%. if that's the case, it would be nine months longer than the average rate hike cycle, although the three percentage points is about the average for most rate hikes. all eyes would be on janet yellen and her speech. it will be on the topic's main conference, which is labor. that is followed by mario draghi, the central bank governor. so the big three in attendance and we'll get a picture of the outlook for global interest rates and monetary policy. back to you.

pierce joins me now. it's exciting whether we'll have another dovish or hawkish tone on the back of the memberships. >> it was interesting last night. i was looking at the minutes and i thought they were more hawkish than we were expecting hawkish minutes. yellen delivers a statement and a press conference because it's dovish. but i think even with that in mind, they were more hawkish than expected. and we had dollar strength, we had some slow yield movement certainly on the short end of the curve last night to the upside. what i found interesting was that the s&p sold off for all of about 10 minutes and made a new high. >> i was just about to say. i think we should underline small yield movement and that markets still managed to move higher. >> i think this is incredible. we've been so fierce with this rate hike idea and with some hawkish minutes and a new high on scotts, that's a completely new reaction.

so tomorrow's really important, clearly. i think what might be interesting is yellen may give us some more detail around the exit strategy. the minutes last night showed that there was a -- a substantial discussion on the exit strategy. i think she might choose tomorrow to give us some more detail. that's going to be a haungish angle. she's going to offset that, of course, with some dovishness, talking about labor markets, lack and lack of wage growth and so on. typically, the jackson hole event is an important one. so i think -- >> so how is this translate through to europe then at the moment? because we're in a similar story here in europe with regard to markets still being willing to, by and large, ignore a lot of the softer data and focus on the points of the good stuff that's coming out. >> i think it's really interesting. monetary -- it's all about the monetary policy. and i think -- i don't know. i'm more confident than markets are about the package that draghi delivered in june.

i think that if you look at the uk, it's coincided with a significant increase in bank lending. more access to credit at the front line of the economy. now, this has not been down in the eurozone for three reasons. these banks are being stress tested. so naturally, they're going to want to be very cautious about extending credit lines while they're going to be shoring up their balance sheet. number two, they've been paying back the ltro funding that they got three years ago. so that has affected credit. number three, as a result of number two, there's been a lack of liquidity in the money market. these factor ves significantly limited credit lines to small and medium enterprises. i think these three negatives are all going away. i think that post stress test, i

think draghi delivered a positive cro and they injected liquidity by stopping their substantialzation poster. so i think there are three positive factors that may lead to the banking system stepping it up in terms of credit lines and, you know, they're desperate for credit in peripheral europe. i think they can be a really big boost starting in quarter four and moving into next year. >> okay. just noting down some of the things that you said because i want to come back to some of them. actually, you're leaving us. i thought you were staying for a moment. next time we will go through that. we will be speaking with the professor of chicago. there's some interesting points here. steve curran.

as we've said, the meeting gets under way in jackson hole. we speak to one of the leading economists, roger mierson. that is coming up in about 20 minutes time. so, again, do stay tuned for that. in the meantime, let's take a look at what's on the agenda in the u.s. we get weekly job lts claims, we get existing home sales. the fed survey and the leading economic indicators. on the earnings front, we'll hear from dollar tree, from hormell foods, sears holding, gap, salesford.com, fresh market and gamestop, as well. now, we probably all feel like we could do with a little bit more sleep. where in the world are you most likely to miss out on valuable shut eye? how much do you sleep per night? >> six hours. >> everybody is saying six. no more? >> rarely. >> you go to bed at, what, midnight? yeah. >> get up at 6:00?

>> yeah. >> ow. head to our cnbc.com site to read more about where the cities are, where residents on average get less than six hours and who the most well rested residents are, where in the world people will sleep the most. you've been tweeting in, tony frata tweets me and says sleep is overrated. i used to say you can sleep when you get old and now i'm older and i think sleep is underrated. keep your e-mails coming, keep your tweets coming. still to come on the show, the grass is always greener on the other side, especially when you paint it. find out how californians are saving their lawns from the drought, coming up after the break.

hi, everybody. welcome back to "worldwide exchange." investors are waiting for more insight from the fed at jackson hole. pc sales boosting hewlett packard revenue, but shares slump on further signs of weakness. and ahold ceo says the stagnant wages in the u.s. are hurting super market's bottom line. now, the drought in

california is making some people swap real grass for artificial greens. as jane wells foondz out, some homeowners, they're even painting of -- i can't quite get my head around this, but they're painting over their dead lawns in order to make them look alive again. >> look at this lush, green grass here in los angeles. how does it stay looking this way? like a lot of things here, it's fake. we're in an epic drought. the one big difference isn't just how bad it is, but how much water agencies are giving away in rebates, as much as $3 a square foot for people to rip out their old lawn and put some something else like the fake stuff. vick waterson, yes, his name is waterson, owns waterless turf and business is up 30% to 40% even though it can cost $10 a square foot to take out the old and put in the new. >> i attribute that mostly to the drought and the department of water and power, the water

company is providing an incentive rebate to install the turf and replace their live tough with the artificial turf. >> drew mcclellan says business has doubled in the last week for his lawn painting business which costs the average homeowner about $175. >> it's kind of sad. it's not good for everybody else. but for us it's very good. during the summer, you can get up to three months. i refer to it as hair dye. eventually yoob gauer to cut it off. during the winter or when the grass isn't growing, you get a good solid six months out of it. >> one person waiting for his rebate was homeowner les richardson. even with a $6,000 rebate, it still cost him 19 grand and he figures it will take him eight years of water savings to pay off. >> our current cost is about

$7..5 a day for water. my projection is we'll be down to $3 a day. that's a considerable savings. >> the irony, in sacramento, the state's capital, it is still against the rules to have fake grass in the front yard. only in california. in los angeles, i'm jane, cnbc business news. share price in dubai based construction group arab tackle has bought fears for the property sector. yusef has been taking a closer look at the market as part of our property week. yusef, hi. >> hello, louislouisa. let me give you the rundown. i thought you were throwing to my package where i give you sort of the overstru. but in any case, the prices have been moderating. so kwoorter on quarter growth has showed down somewhat.

this is a unique market in that over 80% of the population are foreigners. that means that the role of foreign capital is significant. now, we've looked at sort of the opportunity. what we haven't talked about here is the external risk variables. because yes, one is the local overheating. apart from that, any changes in global economic conditions rise in u.s. interest rates, that can take out the wind out of dubai's property sales very, very quickly. and it would put pressure on dubai government and its government related entities in terms of repaying its outstanding liabilities. the imf estimates that there's been a $64 billion in liability that will come within 2014 and 2016. and that's why we've seen the imf come out several times over the summer and say more needs to be done for the markets to stay sustainable and for there not to be a replay of what happens in

2008 and 2009. louisa. >> yusef, thank you very much. we saw the package a little earlier. it's interesting, the whole supply/demand issue in dubai. you are there. do you feel a difference now than what you saw a couple of years ago? >> absolutely. i took this mission to explore and investigate the property markets very seriously. i went to the abandon property sites, i spoke to investigators, i went into negotiations to see how it goes down. people literally walk in with checkbooks and bags of cash. if you want to negotiate, there's often little room to negotiate. it's incredible, this renewed doom. prices fell off a cliff in 2009, lost over 50%. then we've seen this rebound with the turmoil of the arab

springs around the region. >> yusef, thank you very much. we'll talk to you again, see you soon, as well. still to come here on the show, the dollar has a more hawkish tune from the fed. we've leave you in the meantime with a view of our european heat. xkç

hi, everybody. welcome back. i'm louisa bojesen. you're still watching "worldwide exchange". jens is head of fixed next research at nomura. good to see you. what do you make of this dollar rise after the minutes? do you think it's sustainable? >> yeah. we've had a stronger dollar forecast in our views for some time. and it's really breaking out now in terms of the moves versus other major currencies. so versus the yen, versus the euro, we've seen a pretty surprising move to a lot of traders. but i think in the context of the fomc, it really shows that

as we head into the september meeting, there's a split. and the previous tone that we've gotten from janet yellen is very dovish. and that is really making people look forward to the next fomc meeting and a potential change in the statement that could accelerate this dollar move. >> yeah. and what needs to be said or what would you anticipate could be said tomorrow in jackson hole by yellen that would make the dollar continue higher? >> so that's the tricky bit. since the fomc is kind of split at this point in time, we need to be very careful about who we listen to. so i think that the trend is very clearly. the dollar is trending stronger because of stronger data. and because over time, the fomc will move in a more hawkish direction. but for the jackson hole meeting tomorrow, i think it's tricky because janet yellen is at the

dovish end of the spectrum. and she might stick to her online and continue with a dovish tone. and that could actually generate a bit of volatility in this trend that is otherwise pretty clear now. >> i was looking at some analysis this morning after coming into work and a number of re searchers were saying that it was overdone. if you look at, for example, the dollar/yen trade and take into account that we hardly saw a large move in treasuries on the back of the minutes and the same goes for equity markets they still continue north. do you think there could be a little bit of too much of a move? >> i think it's possible, if it sticks tomorrow, we could get a little retracement. a lot of people say, okay, this dollar trade isover done, position is too stretched. but i don't think that's really true. if you look at the options market, there is not a lot of evidence of a surge in demand for dollar cause, for example.

i think a lot of hedge funds are still very cautious in terms of their fx trading. i think the setback will be temporary. and i think the trend is very, very clear to me. i think the dollar is getting stronger. >> jens, thank you very much for getting up early to be with us. jens, global head of fx strategy head of fixed income strategy at nomura joining us from new york. with all eyes on the fed, we'll be speak to go one of the leading u.s. economies in an exclusive interview, roger myerson pb he's also an '07 nobel prize laureate. get your e-mails through with questions for him, your tweets through, as well. worldwide@cnbc.com is the e-mail address.

ly, everybody. welcome back to "worldwide exchange." i'm louisa bojesen. these are your headlines from around the world. european markets edging higher this morning following a near record close on wall street. investors are eyeing jackson hole now for more details on how hawkish the fed really is. checking out, shares under pressure as the super market sees sales falling in its key markets. u.s. consumers, they don't have enough spending power. and hewlett packard post ago surprise jump in revenue. shares dipping in after hours as ceo meg whitman is signaling

challenges ahead. and ukraine's foreign minister saying the country needs russian influence to resolve issues at its borders. and coming up, why president putin demands so much power. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. hi, everybody. welcome back. if you're just joining us, thanks for tuning in. maybe you're waking up stateside. good morning. this is how markets are faring in the u.s., what the futures are telling us, rather. we're a couple of hours away from the u.s. opening. we're being called a little higher here across the board when looking at the futures. we were called high ner europe. european markets this morning seeing positivity. we're higher somewhere in the region of 0.5%. 1% when the comes to the ftse mib. the chinese manufacturing data

is weaker than anticipated. manufacturing out of japan is a bit more than anticipated for august. eurozone indicating weakness in core europe. how do you make money in these markets? this is what some of the experts have been telling us this morning. >> there's more bang for your buck in terms of trade. sterling, and in more euro/dollar. rather than saying it's a combination of that with cable. ree investment of dividends is being the biggest contributor to performance of equity markets and equity you receive at the time. capital growth, maybe that's where we are today in europe. it is a value today. having said that, i think there are some sectors, particularly with exports more globally. you still do see some top line growth. technology, health care.

>> especially for the rest of this, follow up with 2013. however, i think the gap we know the supply, as we do believe that this economy recovers. now with central bankers due to descend on jackson hole today, steve liesman, my colleague, sent this report from welcome. >> the federal reserve releasing the minutes from its july meeting with a bit of a hawkish tone. the minutes saying many believe with this faster progress towards the fed's goal, then the fed should raise rates quicker than markets expect. .are ready to move quickly, almost immediately. there was a big debate about labor slack, how much of it was there and how much inflation concerns the federal reserve should have along with concerns about wage pressure.

we discuss the communication strategy and how the fed might quantify normalized rates, which is a euphemism for raising rates. the fed service there, especially for the jackson hole meeting by the federal reserve shows markets expect rates to rise in july 2016. that was before these minutes came out. that idea may have been pushed forward a little bit, perhaps by the minute. and the rate hike cycle is seen ending in the fourth quarter of 2017 at 3.2%. if that is the case, it would be nine months longer than the average rate hike cycle. all eyes will be on janet yellen and her speech. followed by margo graggy, the european central bank governor and the japanese central bank governor is here, as well. so the big three in attendance. and we'll get a picture of the outlook for global interest rates and monetary policy.

back to you. >> don't forget to stay tuned for our coverage of the jackson hole summit. our u.s. colleagues will be speaking to san francisco president john williams at 11:30 a.m. eastern time. charles plosser will be joining us at 4:15 p.m. eastern time. shares in ahold have been falling to the bottom of the stoxx 600 today after the dutch grocer posted weaker than expected profits in the second quarter. the drop was largely due to softer sales in the u.s. where the group operates super market chains giant and stop n shop. earlier we spoke to the ceo about ahold and asked about what we're seeing in the u.s. the spendable income, of course, is not going up. so wages are increasing again, but the spendable income, what they can spend on foods and

others is still very modest. so i think that is the big et issue we see in europe and the u.s. >> joining me now is roger myerson, professor of economics at the university of chicago and a 2007 nobel prize laureate. professor, very glad you're with us. i want to first start with your thoughts on where the fed is heading. we're ahead of the jackson hole speeches to come. we have janet yellen coming tomorrow. do you think they're on the right path? >> i'm sorry. i'm not going to comment. i've been here in europe this week and i've been following the ukraine crisis. i've been trying to learn about the new developments in bank regulation in the eurozone. but i plead ignorance of the current speeches of the leaders of our federal reserve. >> that's absolutely fine, professor. i appreciate your honesty with what you've been delving into

this week. let's talk a little bit about the banking regulations here in europe. we've had a couple of rounds of stress tests now. we're up against another round of stress tests. some say the stress tests aren't making any difference because we have examples of banks that stress tested positively or negatively. with the positive outcomes. but yet they still are in trouble a year later. and at the same time, the regulation is becoming more and more dirveth for banks to survive in the current environments. >> well, i think one of the main themes here where nobel lawats are meeting with students from all over the world is the questions of bank fundamental rethinking of banks and bank regular legislations. stress tests are absolutely the absence of the matter, that's true. but certainly transparency, what are the criteria is important.

in the past, there's been controver controversy, whether everyone has considered what's the magnitude of the rich? i've been thinking more fundamentally about just the level of capital and i think when you talk about bank regulation in europe, the fact that, for example, the bank regulatory rules for years told regulators to ignore all risks from sovereign debt had a great deal of the sovereign nations of europe are being encouraged to unload debt from banks and banks are encouraged to hold that debt and those fundamental rules need to be restocked. the ability of banks to shop around within europe for a different -- for the -- most lenient regularity also is a problem. so the creation of the new bank

regulatory regime is going to be very important. to me, that's what's really important. there's very active discussions here and lyndel, among faculties and students about the need for more research to contribute to these fundamental discussions as the europeans are rethinking how to make the eurozone work. roger, i asked you about the fed. let me ask you about the ecb, then. do you think the ecb is on the right path with regards to helping to support the eurozone banking system? >> i think they're making steps in the right direction. i have not heard the fundamental rethinking of capital requirements, the level, and making it more independent and trying to back off from trying to get or label certain kinds of assets as being risk free, but rather the most hopeful thing is the new general capital requirement that's independent

of the assets, they've set it very low, i think it's a 3% minimum capital requirement, which means that at least 3% -- i don't know how the banks invest. even if they invest in supposedly safe as et, but at least the 3% must come from the orthopedics of the bank and not just by the insured depositors. i welcome everything i hear about quantitative easing and easing of monetary policy in the fed -- i'm sorry, in the european central bank, excuse me. the low inflation targets in times of high unemployment and some regions of the eurozone, i think it's a fundamental problem ta they need to rethink. but it's deep in the statues of the european central bank that

the bank is -- to pursue a pure inflation target. so much unemployment in so many countries. sure. professor myerson, as you indicated yourself, i know you are studying closely with what's taking place in the dutch ukrainian crisis as well as russia. you put out a piece talking about what putin's secret weapon is. some might say well, he is the president, like, you know, he holds a powerful position and, hence, that's what makes him strong. you say there are other factors at play. >> yes. i think -- there's been much too much focus on questions of whether ukraine would align his -- the europe ornateo or russia. the real question i think i would urge people in europe and america, ukraine and russia

everywhere to focus on is will ukraine have a chance to -- as a sovereign nation pursue democracy better. ukrainian constitutions had a severely dysfunctional concentration of power at the central government. every province and district in ukraine had its governor appointed by the president while the prime minister was running the national government, the president of ukraine has had control of local governments. that is a unique feature and it's proven very problematic. now with a separatist movement, ukrainians understand that they need to decentralized the government and allow the -- to have some power, some more power to serve their communities. that power has been concentrated in the president's office in

kiev. from over the last 20 years. >> yeah. >> so this constitutional reform will lead to hopefully a more democratic ukraine and a more democratic ukraine is to come if it's closely aligned as it always has been with russia. economically and culturally and in all other ways. that bodes well for democracy, the growth of democracy and the development of democracy in russia, as well. and that's in the interest of people in ukraine, russia, europe and america much more than any alliance. >> professor mierson, thank you very much for being with us. we appreciate it. >> thank you. pro-ed fesser of economics and the 0b 7 nobel prize lawat. sports stars, former presidents, actors, they have been tipping buckets of ice water over thoemz to raise money and awareness for als. cnbc anchors they got in on the

freezing action. my colleague, kelly evans, challenged me, bernie lowe, my colleague in asia. take a look. >> are you ready, kelly? >> i'm ready. >> oh, yeah. >> ready? here it goes. the ice bucket challenge. >> whew. >> i nominate jean-claude beaver, the ceo, i nominate hsbc's david bloom and i nominate our very own cnbc's tone ya fryer. ♪ ♪

developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run.

i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business. hi, everybody. welcome back. i'm louisa bojesen. european markets shrugging off mixed pmi data as investors await more insight from the fed and jackson hole. pc sales boosting hewlett packard revenue, but shares slumping on signs of further weakness. and ahold ceo telling cnbc that segment wages in the u.s. are hurting super market bottom lines.

now, a computer virus could have caused a data breach at some 51 u.p.s. stores. the shipping and logistics company says information including names, credit and debit card numbers and posted e-mail addresses from around 100,000 transactions between january 20th and august the 111th could be at risk. shares of u.p.s. ending yesterday slightly higher on the yield down by some 6% or so. more details, though, having emerged about bank of america subprime mortgage settlement hampton pearson joining us from washington with more. good to see you. how are you doing, louisa? we know we're getting close in recent weeks. so bank of america has reached a $17 billion settlement with the u.s. justice department, the largest in the series of soaring penalties against banks or misconduct. this will be an end into investigations into mortgage securities in the bank and its

unit sold in the run up to the financial crisis. this news comes as u.s. prosecutors are preparing a civil lawsuit against countrywide co-founder angela mozilla against shoddy lots issued during the mortgage bloom. the u.s. attorney's office is working on the case and plans charges against several our countrywide executives. he did not admit or deny any of those allegations. so another big settlement, another big bank, but still, more targets out there. joining us stateside, pay to play at the super bowl, that's what the nfl is asking a

potential halftime musical act at next year's big games. the league has reportedly reached out to rihanna, katy perry, cold play asking if they would be willing to contribute a portion of their post super bowl tour income to the league. it would make some type of financial contribution for a exchange in the post in the half time gig. now, hewlett packard's ceo meg whitman is saying she's pleased pleased with the turn around. find out why others are not.

all right. today we get existing home sales, weekly fed survey and

weekly economic indicators. we'll be hearing from dollar tree, hormel foods, sears, gap, intuit, salesforce, fresh market and gamestop. quite a busy day all in all. u.s. futures have been moving up. shares in hewlett packard falling after hours despite a surprise revenue gain in the third quarter thanks to a double digit jump in pc sales. david pearl is executive vice president and cochief investment officer and he joins us. david, good to see you. what do you make of hewlett packard's announcements? >> it was pretty much on target that the issue is the sustainability of revenue growth because it came mostly from pcs. the most price competitive business. so, really, their margins were impacted and it's not clear they can hold market share, which has gained over the last year and year over year, it was kind of easy for them. so the rest of their business

unit printers are in secular decline. software sales were down. their services sales were down. their enterprise is good and most investors would like them to transfer to more of an enterprise oriented company, less of a consumer pc company, but they're still in the middle of that. given all of that, the stock has mott rad upside at best. you know, they did a very good job of cost control. but you really need to see revenue growth. it will be helped as the u.s. economy continues to recover. moderate upside versus downside relative to other large tech stocks. so nothing terrible, but it's not yet at liftoff until all their cylinders are firing. >> yeah. and meg whitman, the ceo, warning that a performance like this potentially might not be repeated in the coming quarters. do you think investors will have patience with lieu let pack yard? it is in the middle of

undergoing changes. >> yeah. the biggest factor is that pc sales have been helped by a one-time effect that microsoft stop supporting windows xp and because of that, enterprise has a lot of new pcs. that's going to lap year over year. so there could be a downturn on pc sales over the next couple of quartzers while we see the rest of the businesses try to recover. so, again, the picture is a little clouded. it's not terrible, but we're not really back to growing the businesses yet. >> david, that you can very much for being with us. david pearl joining us, executive vice president, cochief investment officer. we've been asking how many hours sleep you get each night, what is your average, what make you feel good. david says people snap get less sleep are more susceptible to suggestions like the irrational money never sleeps. joseph tweets sleep is overrated. frederick writes in and says 6

hours 30 minutes last night, that's my average. and ron says if you don't recharge, your chargeout rate does tail off eventually. i'll see you again soon. good-b good-bye, everybody. ♪ [ male announcer ] during the cadillac summer's best event, lease this all-new 2014 cts for around $459 a month or purchase with 0% apr. hurry in -- this exceptional offer ends soon.

on a daily basis, but is the fed about to pull the punch bowl from the bull's party? a record breaking settlement, bank of america striking a deal with the government to pay $17 billion for its role in the lead up to the financial crisis. and it's payday on wall street. two of the neigh's most powerful financial firms are planning to hike the salaries of junior bankers by at least 20%. today is thursday, august 21st,

2014. "squawk box" begins right now. good morning. welcome to "squawk box"er here on cnbc. i'm andrew ross sorkin along with joe kernen. kayla tousche is here today for the vacationing becky quick. wall street is buzzing about the details of bank of america's record settlement. but we'll also be talking about one of the most notorious names in the crisis. angela mozilo, preparing a lawsuit against the countrywide staff. as many as ten other former countrywide employees are expecting to face lawsuits. people didn't think this day would come. here we go. outside the world of business, we're learning more today about a failed u.s. commando mission