welcome to "worldwide exchange." i'm wilfred frost. these are your headlines around the world. >> hi, everybody. i'm louisa bojesen. russia plotting its next move. this as kiev warns that it's in de facto war with moscow. europe hits a fresh 12-month low, flirting with the 1.31 level against the dollar. it will prompt some form of action from the ecb. shares under pressure in milan after a management

shake-up. a bug may have allowed access to hackers to videos of hollywood celebrities. >> you're watching "worldwide exchange". bringing you business news from around the globe. >> hi, everybody, welcome. good morning. you're watching "worldwide exchange." are you aquake? >> i am. i'm very awake. day one was very enjoyable and i hope day two will be the same. >> it's going to be. it definitely will be the same. in fact, you've been doing more than just working here in the studio. >> i have been out and done a few interviews. >> 835 million pounds is what the premier league has spent. >> indeed, which represents 30%

inflation last time. we'll be talking about that inflation and the inflation in television. 30% more than elsewhere in the economy. >> so while we're talking about inflation, 0.3% in the eurozone, 30% inflation in football, it's fan taft ig. we'll weave that in. we've got a good show coming up. now, our main story, crisis talks between ukraine and moscow are continuing. >> the talks come at a crucial point in the crisis after ukraine abandons their defense

in the latest of a series of military reversals. ukraine's defense minister announced the country's options to liberate kiev was over and the focus was now on defending itself against russia. we are joined now by tim harris and christopher branville, managing director of trusted sources. welcome to you both. christopher, i'll start with you. the time for diplomacy, is that over now in the ukraine/russia crisis? >> well, frankly speaking, it's right back. yesterday's talks in the political leadership of the rebel movement and the kiev government represented no less than by the former president of ukraine are the third such talks since the last week of june. seems like an age ago. after that, the ukrainian president, poroshenko, canceled the cease-fire looking for a military solution. now russia has beefed up the

insurgency, as inflicted on the -- we're back to talks. the malaysian airliner, death, destruction, bitterness, more sanctions, economic war. they're talking, but it's difficult to be optimistic. >> we were just talking about what's taking place in ukraine. just to mention that we've got some live pictures coming in from moscow where the russian foreign minister lavrov is due to speak at any minute with his tunisian counterparts. we're awaiting the russian foreign minister and we'll keep you up to date with what comes out of that one. tim, what are your initial thoughts on the crisis and what situation we're in now and what will happen from here? >> well, whenever this ends, there has to be a lasting solution and that muchtd ultimately lead to negotiations. the key now is that the hot heads aren't too hot.

i think we all have a good idea of what's going on. i think the gloves are off here. i think there will be significant pressure building on the russians in due course. there will be political pressure internally. if the sanctions which the eu may or may not ramp up even further rolls through and it's hurting europe, clearly, as much as it's going to hurt russia. if we do end up having an energy impasse, that may be a stage further down the road. but at the moment, it's talk and talk to try and keep this thing -- >> quite popular at home. less so abroad. do you think has he lost kind of the good will, the international good will? >> he got off to a blinding start with the annexation of crimea. that took him to levels of domestic popularity in the country. i wouldn't necessarily say in the cities of russia, but that was where he went. from here, obviously, this is

now long going. this is going to be a long, drawn out crisis. i think the issue is clearly russians are involved in this explicitly as well as implicitly, and this can only draw more in that. i think as this does get drawn out and as the russians themselves realize what is occurring, then i think there will be building domestic pressure for him. but there are more immediate issues to address. >> xrift fer, if this is going to work, nato is going to have to bring putin directly to the table. what can they offer put yib to try and get him to come to the table to discuss this? >> the u.s. government and its european allies on one hand and the russian government on the other. your implication that this is a high geopolitical conflict is spot on. form formerly, the negotiations were between the ukraine and this

rebel group in the east. however, i don't think that's really going to happen. russia's goal is simply to prop up this insurgency sufficiently to stop it from being crushed. i suggest russia's goal is not to conquer ukraine as a hole. it's to secure its strategic goals in ukraine, above all, ukraine's neutrality. it's nonalignment. >> it pushed the rest of ukraine, the majority, much closer to flato than its ever been. surely in doing that, putin shot himself in the foot and the result is likely to be whatever is left of ukraine will want to join nato in the future. >> that's absolutely a scenario and that maine counterproductive. you're spot on. if crimea was still part of ukraine, you would have 1.3 million voters voting solidly for the russian alignment.

even without crimea, if you want to join nato, there might be a simple majority. even know, i think it's unlikely there will be a national consens consensus. it's still a very divided country. if you try to put it in one camp or the other, you will tear it apart and ultimately destroy it. >> chris and tim, stay with us. you'll talk more on these companies in a bit. russian companies that have -- such as gazprom as the u.s. expands its sanctions on moscow. this is the ft report that roznet is suggesting beijing take a stake in its oil fields. the u.s., though, is under growing international pressure to end its ban on crude exports. the eu and others have made the case to open up its reserves overseas.

which allows u.s. companies to export, not oil, except under limited circumstances. i want to come back and touch on one of the points that you brought up about putin's mission and keeping the overall neutrality for ukraine. has he gone too far? can he keep neutrality for ukraine or are ukrainians going to look at the situation and say of course we're going to choose europe? >> he can't determine the state of ukraine. he has russian interests and you may have minority interests within the ukraine, but ukraine is a free, democratic state. and they are, in theory wsh in charge of their direction. so sister-in-law pressures will build the boiling part that is ukraine today. and we don't want to go to an extreme solution as chris alludes it could go.

i think putin must know have a set of strategic objectives that he will have on outlined. he's not going to resemble the union. >> i think there are energy implications, as well. >> i think the question of u.s. crude exports linked into this in the sense that the -- with geopolitical uncertainties with interruption of 7 million barrels of oil a day is not iran. you could not interdict russian oil without causing a major shock to the economy. countries around the world are starting to think of that. the stakes are high. this is not just some kind of local conflict. great powers are involved. >> christopher, thank you very much for being with us.

>> tim, you're staying with us for a while. the e-mail as usual is worldwide@cnbc.com, find us on twitter, as well. we're happy to get you involved here from the top of the hour. let's update you on markets today, mainly green behind me. strength throughout in europe. the stoxx 600 up 33 basis points so far. let's have a look at the individual markets. and it's strength across the board, really. we have got some quite important data releases coming up today. in the uk, we've got construction data at 9:30 and overall in the eurozone we have produced price inflation at 10:00, so that data is coming through. nonetheless, the market is very strong today.

you think that partly comes from the weaker manufacturing data that we had yesterday across the eurozone and what investors are thinking that's going mean for the eurozone meeting coming up on thursday. it's very clear that bonds still think, as they have done in recent weeks, that we're going to see further loosening from the ecb on thursday. record lows continue in europe. 90 basis points in germany. 2.4% in italy. and those european yields have dragged down yields globally. uk and the u.s. at similar levels hovering around 2.4%. fx rate, we haven't seen much. we'll be talking to goldman sachs people oppenheimer at 10:00 who has recently reduced his forecast on the euro. today in the yen, a significant move, 40 basis points weakening against the dollar. that has, though, allowed the nikkei to move up to a one-month

high. coming up, wilfred gets in on the game because he's taking a closer look at the playing field for tv football. that is the battle between sky and bt leads up. he'll be telling you all he knows about this. >> this is a familiar set for british football fans. the sports gamble paid off? join me after the break to find out.

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hi, everybody. welcome back. apple has reportedly fixed a bug in icloud that could have let hackers leak celebrity photos. the login page was found to be vulnerable in which attackers try multiple password toes gain access. most sites lock out users who enter multiple passwords. apple is saying, though, that it takes user privacy very seriously. they have to. >> big issue. >> huge issue. now, september has a reputation as a very bad month for markets. the s&p capital iq says 20

months since 1987, september makes the list four times, 2001, 2008, 2002, 2011. if you go back further to 1945, september has only ended higher 45% of the time. the worst showing of any other month. psychological pressures of the big round numbers on the s&p 500 and the looming end of the fed's asset purchases could reinforce the september stereotype. so should you be selling in september or do you think the rally can carry on through? tell us what uveng, worldwide@cnbc.com or via twitter, @cnbcwex. troubled premier league giant manchester united dominated football activity as the deadline slammed shut on

monday. manu spend more than 140 million pounds in total. teams across the league spend a total of $835 million euros. surprising rival sky in the process. having paid 738 million pounds to broadcast 38 live premier games this season, they changed the pay tv by offering matches for free to its broadband subscribers, setting up, the sports channel has cost bt in the region of 42 million pounds. i spoke with the head of bt's consumer division to find out. >> it's been very successful. if we look back a year ago, we wouldn't predict the success we've had. we have 5 million customers. the business is performing very well, as well. >> and what's the main rationale for it?

is it purely to drive broadband descriptions? well, the man rationale comes back to the opportunities that we saw. what we saw is in the british marketplace, roughly one in five households describes bskyb sports because the process at that time was so high. you look around the world and around europe, the typical figure is roughly one in two households. so it's a huge market that struck out as being a big opportunity to give sport back to the people and create a bigger marketplace for premium sport. >> so far, you don't charge directly for the sport's conflict. he just spent another 900 million pound on champion league rights. >> yes. >> will you start charging for those games? >> we had said for champion's league and games, there will be a charge. >> would you say you're predominantly a television

company or a telecom company? >> i think the notion of those categories being separate is probably a vestage of the past. increasingly, they will c converge. the transmission of high width band data content, these worlds are really converging. >> we're talking now about thinking, as you're saying, about telecoms and television and video altogether. >> yes. >> how important is owning content for a media company in general? >> i think it -- i think it is pretty vital because it comes down to a strong reason for people to stick with you. it's such a competitive market. it's an extremely competitive market for broadband in this company. it's why prices have come down.

to have something in the nature of sports content gives customers a great reason to stick with you. >> we're joined now by nick. has the for ray into the sports world paid off? >> yeah, absolutely. if you look at the statistics, off the launch of tv, it's gone from around 50% a quarter to around 70% since thief laurchbled. its losses have fallen from around 130 to 200,000 a quarter to around 50%. but it has inflated the cost of its largest competitor. and it's -- you know, there's really know question it's done what it was supposed to do. >> and as we look at this now, what is the next stage? it's costing 2 billion pounds. there's got to be more to come if this is to be seen as a success in the long-term.

>> i don't think so. i think this is a strategy to compete in a telecom business, a telecom strategy. it's really designed to bring customers back to the company, would increase its market share. there is a network effect of having multiple products for customers. this helps the network effect. so, really, i mean, there is a mobile strategy coming, as well, later on, so there is a multiple customer strategy. but i don't think it's something that -- i don't think that bt is going to become a prolific content provider anytime soon. >> i mentioned it today because john pettit said they're going to start charging for the champion's league viewers. they're trying to make money directly out of the content. >> absolutely. but i think it's still a very small part of the company relative to their network access. i think generally speaking, we have a cautious view in large

companies. companies do well, the reason for the success for this particular strategy is it's been very focused. ahead of those specificics and objectives, which a broader tv strategy would dilute the thing. >> taking on sky is still a big -- still a big take on. how do you view it, tim? >> well, this is a global market. you can see it's still being talked about, moving certain type of spots around that stage with that content. i think if bt have got their numbers right, this experiment two years into it, clearly, they've gone the numbers.

and they can afford to pay what they're paying. these numbers never seem to get smaller. the picture of broadband is not just about soccer. it's a much larger issue. >> these numbers do keep getting bigger. surprise inflation in football both in the transfer market and also in how much forecast. it's astonishing. it's only going to rise in the future. it's paid about 300 million a year for the champion's league. you know, given the relative importance of premier league versus champion's league for uk customers, that really indicates a large inflation. bt kind of falters to pay. it has large cash flow. it's unpaying a relatively small amount of its dividend, a very

small cash flow dividend. for me, there's a high probability of inflation, the next premier league auction. >> it's interesting, as well, that yesterday we saw liberty mobile who lungs with igt. do you think they'll try to move more content going forward? >> i think that's realivic. it is content which you need. it's a complete reconstruction over a five-year period. and clearly it's one of the few objects there to be picked off if that is where it should go. i think the market is pricing it accordingly. >> thank you very much for that, tim. tim stays with us.

now, while football's busy wheeling and dealing, some of the world's biggest stars are taking part in a charity match. it was organized by pope france. there is no devine intervention, though. the pope's team lost, 6-3. >> you kind of want the pope on your team. >> you think you would. but it didn't work out in this particular case. >> maybe they need to practice more. practice some goals. still to come here on the show, the italian eye wear giant sees changes at the top. that has been speculated. do investors like what they see? we'll get the latest live from milan. you're watching "worldwide exchange." good morning, everybody.

welcome back, everyone. russia says it will review its next military strategy as nato is on its borders. >> the euro hitting fresh 12-month lows, sflirting with a 1.31 level against the dollar as

investors bet the economic outlook in europe will prompt some form of action from the ecb. and luxottica shares under pressure in milan after a management shake-up. the chairman tells cnbc he's always played an active role in the business. and apple may have fixed the bug that may have allowed hackers to gain access to icloud accounts and leak nude photos of hollywood celebrities. >> hello and welcome back to the show. we're getting breaking news at the moment. uk construction data is out and it's the strongest in seven months. construction output in britain grew at the fastest pace in august boosting job creation and putting a strain on suppliers. we'll have a quick look at what that's done in the currency markets. a slight tick up in sterling.

nothing too significant so far, though. >> construction pmi for our guests rising from 64 versus 62.4 in july. the right ers poll, quite a bit stronger. i'm looking at a couple of greece flashes here, wilfred. greece is stating it expects debt relief talks to start in october after the september review. that's coming up in the ecb stress test, as well. so we're looking at those stress tests having to be done and over with before the debt relief talks. they can begin in greece. it's all down to how much of a hand in the pocket of the troika greece wants to have, right? >> absolutely. >> the euro has been trading ahead of a fresh one-month low. many analysts say they expect

the central bank to -- in an establishment so counter weak growth. tim is with us. what do you think the ecb will do on thursday and what do you think they should do? >> i think markets will weigh heavily on draghi's words. he's the right man. that is something that has crept up. as you know, from previous cycles, from previous examples of our kens, deflation is not somewhere where you want to go. you will absolutely not want to go there. it may well be that we're beyond words, therefore, actions will maybe have to be seen. do we go to an outright quantitative easing program or does the ecb stop some stage before it gets there. this is where we talk about the purchases of asset backed securities, the possible bank loans, we're talking about a 200 billion euro program being announced by the end of this

week, up two, not saying that. but you see speculation about what degrees of quantitative easing might be needed to kick start the eu economy and further out and the numbers could be much bigger. i think what we'll see is asset backed purchases just troo tie and get liquidity flowing. yes doesn't think it could be as effective as his targeted -- >> well, fiscal policy is interesting. >> the government is very hard. a new government, same story. guess what? they're talking austerity. so there is not an awful lot of

fiscal expansion to talk about the numbers when they look like what they look like. the eu is clearly the laggard. >> wouldn't they want to wait and see what happens with the ltros? we have that hurdle to go over and see what banks choose to do. at the same time, also, what would they be buying? they're not going buy -- the french and the german two-year yield are now below zero. >> the federal reserve has stepped into markets and was not dependent at that time. it is not a question of what the balance sheets -- not the ecb makes money after this. i would say the parallel here is to say we're in a steep dive in the plains. yes, we think we can pull out of it, but are we going to hit the ground in the meantime. and i don't think the ecb wants to start seeing numbers at zero or minus or whatever.

we've got net interest rates on deposit. banks have to pay. that's one for the banks to put their money somewhere safe and not get it working. we are where we are. and physical policy in europe is heterogeneous, in my view, and not altogether effective. and different motivations have been seen by different governments. the ecb has to try and apply a homogeneous policy across the whole region. >> good luck. >> indeed. >> tim, that you can very much for being with us, tim harris, ceo of harris capital associates. despite could sizzle out, we'll hear from the chief strategist at goldman sachs on why the bank is staying long u.s. equities. now, president obama is to demonstrate his commitment protecting eastern europe from russia, he will aattend nato meeting where he's expected to put pressure on european

leaders. according to reports, the alliance is to establish a rapid reaction fall to countries closer to russia for russian military intervention in krien. meanwhile, the kremlin says it will review its military strategy in response to nato enlargement. now, markets remaining on tender hooks with geopolitics over the crisis in ukraine deepens. it's not just russia, though, that investors are needing to keep an eye on. samantha takes a look at the geopolitical hot spots that has the potential to impact your portfolio. global investors today are facing an unprecedented level in geopolitical risks and any further escalation and conflicts in this region could need to hire global prices. let's start with the ongoing conflict. >> ukraine, anti-government protests turned violent earlier this year. that's resulting in a sequence of events.

russian presidents putin annexed in crimea and, of course, the ongoing stand off between russia and the west, let's move on to middle east and north african region where we are a series of multiple flash points. now starting off with the conflict between syria and iraq will cause tensions between syria and israel and palestine. it will spill over into other parts of the region, even north africa. finding the region close to home where territorial deputies in the south china see have been on the rise, most recently the placement of a chinese oil rig in contested waters. adding to that, the souring in nations between tokyo and beijing over another set of disputed islands, plus the potential ongoing threat of north korea and the increase between cross border conflicts between india and pakistan. back to you in london. >> for more on what the rising

geopolitical tensions mean around the world, head to our website. cnbc.com and follow up on twitter, @cnbcwex. luxottica shares have been trading lower a day after saying their ceo will be stepping down. cnbc spoke to deveccio and asked whether he would be more involved in the future. >> it's not like i wasn't involve in the operation of the company before. it's not like i abal bandon the business. i left him in charge, but i was by his side. we will continue to move forward as we have been doing so. we did it for ten years with garro and now we'll do it for another ten years. claudia has more on this story from milan. claudia, good to see you. i was just talking to somebody

about luxottica today and you were saying it's no secret there has been a rift between the two characters for a time. it's also no secret it's because of gurrera we have seen a lot of positive for the group. so now what? and how are shareholders reacting? >> absolutely. guerra is responsibility for the recent google glass deal they are working on, as well, as well as getting backs the license that they had with armani. he is responsible for some significant operations, some significant strategic choices the company has made and had a lot of freedom. he's doubled revenues for the group and now has revenues at 7.3 billion a year. has a very good reputation as a ceo and italian company that has become a global leader in the sector. so the idea that the market is penalizing the stocks here this

morning, not too much, is because there is some concern around this decision to make the structure more complex, so to speak. the cfo will take on the co-ceo position with a market ceo but is not in the position he's coming from outside the company. and then de vecchio will have sort of more of a hands on approach in the next month during this change for the company to this new type of management. so the market says citigroup, for example, skeptical of this new structure. also, this analyst saying that gu erreo was a very safe pair of hands for luxottica, but he does agree that de veccio should have a more hands on approach in the

next month. there is a lot of complexity for this business. they have doubled their revenues in the last ten years. the idea that this market has become very complicated and want to work hard on the emerging markets could mean maybe this more complex structure could be beneficial. so for now, we'll see what will happen in the next days and weeks. we'll get news out about the new co-ceo. back to you in london. >> claudia, thank you very much for that. we appreciate it. the nikkei enjoyed a nice bump up as they show regular pay and bonuses are on the rise. the nikkei has the story live from tokyo. >> hi there.

average monthly pay rose marking the largest increase in 17 years. it shows some companies are gradually raising raises giving some relieve as prime minister abe hopes to proceed with more tax hikes in october next year. real wages, which are are a just had to reflect changes in consumer prices dropped 0.4% on the year. and it shows that wages are not keep up with inflation after the consumption tax hike in april. in the meantime, prime minister abe is working on his cabinet reshuffle. shoziki is said to be considered into health and ministry cab nut.

investors saw this as a move that would push the pension fund to increase its stakes in domestic stocks. abe will announce his new cabinet tomorrow. back to you guys. >> thank you very much for that. we'll speak very soon again. the indian prime minister has completed day two of his visit to japan. he's saying the aim is to boost business ties with the company to a new level. so far, he's accepted investments competing 3 trillion yep. lasta, the changes that are in front of us, what is it going to mean politically and what is it going to mean for the markets? >> it's very clear what it means for the markets. the markets have risen by 33% year-to-date. it was around february 3rd that

the first polls indicated a modi victory, in fact, land slide victory. since then, the markets are gained 23%. we are at all-time highs. from the date he actually came to power, that is a gain of about 15%. no two ways about the market's confidence or the industry's confidence that modi will be able to resolve all issues. a cnbc poll indicated -- of ceos indicated that 90% thought the problems were already above average. but if you took individual performances, then the market was much more set. on reform, he's gone very poorly. on foern investment and attracting foreigners, he has scored almost 6 on 10. so very high numbers. his hits are seen as indecisiveness, especially in

the structure, clearances at the state level. one of his biggest achievements is putting all the clearances on a digital grid so industry knows where the clearances stand on various issues. he has been more fair to the states, according to a lot ooh politicians. and he has abolished a planning commission which used to be appointed. that has been abolished so states won't feel their power has been intruded on. basically, he's got a very high ranking both from ceos and governments. >> thank you very much. some breaking news is hitting our wires, protesters are breaking into the iraqi parliament and vandalizing the building. that's according to witnesses by reuters. in coming long, police have

arrested 19 people following pro democracy protests in the country. it's sparked by beijing's decision to -- activists are planning a series of protests against the ruling, including strikes and a sit in in the city's financial district. still to come here on the show, wilfred is called up from the bench to take a closer look at the battle for tv football rights. >> called up from the bench. i'm not sure i like that. >> we'll be back with more on football from wilfred. >> football if you're a customer, the bt sports gamble pay off. i come to their broadcast studios in east london to find out.

ly, everybody. welcome back. apple has reportedly fixed a bug that could have allowed hackers into icloud accounts. the bug has been cited in a leak. >> jennifer lawrence is one of the biggest names in hollywood. but overnight, the young oscar winner took center stage for a different reason after dozens of nude and risk kay photos of the

actress appeared on an anonymous image sharing cite. singers ariana grande and kate upton, rihanna. it's a scenario like a comedy shown in which a video goes viral after getting cloes lost in the cloud. >> it went up in the cloud. >> and you can't get it down from the cloud? >> nobody understands the cloud. >> what is most alarming, how an identified hacker claims he got the pictures, through the icloud. hundreds of millions of people. >> we caught up with former federal cyber crime prosecutor mark rash at a security computer conference today in sweden. >> by storing it on the cloud, it becomes a one-stop shop for hackers. hackers only have to break in one place to get everybody's data. if celebrities are vulnerable,

it means everybody is vulnerable on the cloud. earlier today, the fbi said it is aware of the issue and is looking into it while apple said we take privacy serious ly. celebrities condemned the leak as violations of privacy. some celebrities say the photos of her are fake, while actress mary elizabeth tweeted, to those of you looking at photos i took with my husband years ago in the privacy of our home, hope you feel great about yourself. another reminder that privacy is one click away from public scrutiny. nbc news, los angeles. now, uk small business is responsible for creating four out of every five new jobs, so more than half of all commercial innovations in the country. according to a new study, the report suggests that they have

turned a corner from the economic difficult seen in recent years. the ceo is now with us. that was a more positive result than perhaps some people would have expected, but this is a survey of uk, u.s., divergent results across the different countries. >> there are divergent results, but everywhere is better been the proportion increase has been in economies which have been doing well. so the uk, the u.s., germany. the biggest improvers actually spain where optimism went from the high 20s to the low 40s, a real improvement showing the austerity that they've had in spain is paying off in terms of the -- of the country. >> one of the other interesting things, smaller firms down the scale are the ones struggling most to get funding. that's a very important aspect of the eurozone at the moment. is there anything that can be done to help them? >> i think everywhere. clearly, that has helped for the

smaller firms. it's always people with less than ten employees who struggle. it is universal. i think the other issue with funding is the divergence between countries and the uk, 65% of people say they struggle to get access to funding. but in spain, it's 83. so actually, it's bad, but we are relatively better off in the uk than -- >> you say it's getting better. i was struck by the point that one in three small business owners are considering exiting their business in the last three years. >> i was surprised by that. of all the things in the survey, that surprised me the most. it goes to show that many people -- and the other thing is, half are going to retire. and maybe that is a need for consulting a knowledge-based economy which is more a service orientation rather than an inveng. >> and we talk about small

businesses, but it's good to be small, but not that small. size doesn't matter when it comes to developing products. >> more than ten people, more than 20 are most positive. and those with more than five. it's the distance, actually. >> we just ahead to the apple story, the hacking story. it came across in your survey, as well, the fear that cyber attack is rising amongst businesses. do you think small and medium businesses don't spend enough? is it too low down on their priority risk? >> specifically on cyber. 70% say they have cyber security, they have fire walls. but that's saying 30% don't. that's a big chunk of businesses which are leaving themselves open to a cyber attack. the apple story shows cyber attacks are risk on. it may be a low probability, but when it happens, it can have quite a big impact. there's a lot to talk about. people are trying to understand

how it works. but yes, you expect that to be a real demand across europe and the united states. >> you said that the survey was completed in the six weeks up to summer. how quickly do trends change? i mean, we're looking at something that's been very active on geopolitics, at least, right? and also within a couple of weeks, we might have rate hikes, we may not. do trends change quickly in your experience? >> for a small business, it's local demand. it's a rapid economic deterioration locally. >> interestingly, the firms that have started during the recession, generation of recession are much more focused on the export market than more established firms, may be reflecting the fact that local isn't good enough. you have to tap into growth in asia in order to do that as the growth. again, that means that, you know, euro businesses are more

global than they are from the beginning rather than working together at the time. >> as a ceo of a major insurer in the uk, when are you expecting rates to go up and how will that impact your business more broadly? >> the markets rates remain competitive, i.e. -- and we expect that to be the case in the next year or two. we are very affected by events and 2013 and 2014 have been very quiet years. in contrast to 2011 when we had earthquakes and tsunamis and floods around the world. thus far, it's been pretty quiet. >> thank you very much for being with us. the foreign minister in italy is saying the new russian sanctions package will be finalized wednesday and a

decision on that will be made on friday. we know that the meetings are taking place as we speak. a press conference is taking place as we speak. >> and russia's lavrov has said that there is a, quote, party of war in kiev which is supported by washington and european nations. so he's really spoken ahead of the nato meeting. these are live pictures coming from moscow here at the moment. lavrov saying there is a party of war in kiev that's supported by u.s. and europe. still to come here on "worldwide exchange," though, it's a question on everyone's mind. will the summer rally sizzle out in september or is there more room to run? find out why goldman sachs is staying long the s&p 500.

hello, everybody. welcome. you are watching "worldwide exchange" for the second hour. the euro is hitting fresh 12-month lows on expectations of ecb action. the kremlin says it will review its military strategy in response to nato enlarge. on its border. conceive he warns its una de facto war with moscow.

>> apple reportedly fixes the bug that may have allowed hackers to gain accounts to icloud accounts and leak nude photos of hollywood celebrities. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. if you're just joining us, thank you very much for joining us. we didn't have any trade in the u.s. yesterday on monday. and august finished as the strongest august in 14 years. yet we're expecting more -- in the u.s. and that's expected to open up about 10 points for the s&p, nasdaq up 4 or 5 points and the dow up about 30, 38 points. let's have a look at what's happening in europe, as well. europe is quite interesting. it opened mix at the start of trade and has strengthened

throughout the day somewhat surprising. ftse mib in italy up 1.25%. very strong. france, 40 basis points and germany around 90 basis points. the uk, the lagger ftse 100 up about 30 basis points. >> i feel like we need to reintroduce you, though. i know you don't want me to, but basically a lot of viewers joining at this time from the states. it was labor day, so a lot of people you weren't watching because you were out at the beach or what have you. this is wilfred frost. we're happy to have you with us. you've been out looking at the business of football and things like that. >> and the money inflation that we're seeing in the football market which is very different from the fundamental market and we'll touch on that later. >> we'll be looking in on the package that you did on these rights. >> indeed. >> so anyway, let's talk more about the markets. i know you don't like me to intrars you, but --

>> i love it. >> take a look at what's taking place in the currency markets. euro/dollar, 1.31 right now, sitting tight at this level. we saw the euro at a one-year low from yesterday's session on the expectations that the ecb could come in and take action on thursday. the dollar at its highest level against the yen since january. very low volumes. it has to be said coming into the day's session due to the labor day holiday. the bond markets, again, very interesting moves in the bond markets with continued buying across the ten-year paper as you're seeing -- or as you've seen, recently not today, as we've seen selling with the yields pushing up, the yield now on the ten-year bund above that 0.9 level we've been hovering around 0.88%, 0.86%. the german and the french who-year yields now being below zero. the speculation that the ecb, they could step in, we could see some type of action from the

ecb, there is work to do some type of a full bond buying program, it would essentially mean they would be following in the foot steps of the fed and the bank of japan, too. just to mention, we've got a whole punch of meetings taking place in the banks this week. the ecb, the bank, the rba leaving rates on hold as expected earlier in this session. bank of japan meeting this week. and the bank of canada. to round it up, you've got the manufacturing index and consumer spending for the month of july, as well thank you very much, louisa. lots of data still to come this week. the european equity market is up. the russian minister lavrov has announced a western bank party of war. lavrov said ukraine is pushing for nato membership in order to disrupt peace efforts. meanwhile, ukrainian troops have abandon their defense on monday in the latest of a series of

military reversals. the defense minister announced the country's attempt to liberate the east was over and the focus was now defending ukraine from russia. the u.s. president is expected to put pressure on european leaders to spend more on defense. according to reports, the alliance is set to establish a record reaction force positioned in countries close to russia. the russian military in ukraine. meanwhile, the kremlin says it will review its military strategy in response to nato enlargement. it's interesting that lavrov has been so avert, accusing ukraine of wanting to join nato. frankly, putin and russia's involvement is of course going push ukraine more towards europe and nato. >> they haven't made a secret of

their desire to join nato, but it's going to take years to reach that. they have to control their own territory in order to join nato. that's one of the issues. it's also interesting to see whether nato wants to get involved in this. they don't have to. we've got a lot taking place in the middle east. i know on the sidelines, they've said they're involved in iraq and trying to figure out strategy, as well. do they want ukraine, as well? >> i agree. but the pro russian ukrainian leader, he was only elected on 800,000 majority. if you take crimea out of the ee wag equation, that shows a less russian ukraine. it's not.

russia has pushed ukraine away. >> it would have been interesting to see in hindsight if had europe prened ukraine way back with -- not a binary option of you're either with us or with russia, but some type of option where there's ties to russia, and at the same time you can move towards us somehow. it would have been interesting to see what would have happened, in hindsight. >> in either way, nato has to get putin back to the table. there's no way diplomacy can work if it's just with the rebels. at the moment, there's nothing to work with. >> that's the key point. as one of our earlier guests was saying, you solve things through diplomacy. >> we hope. just moving on from ukraine and russia and just to mention what's taking place with regard

to the tropical storm dollie, the nhc saying tropical storm dollie is moving towards mexico. they're saying they're looking at slight strengthening in the next 24 hours until it's anticipated that dollie will be making landfall and they're saying a turn towards the west-northwest is expected by this afternoon. so potential landfall to come. let's taking a look at some of the other stories to come. apple has reportly fixed a bug that could have allowed hackers to gain access to icloud acts leaking nude pictures of celebrities. the bug occurred in apple's find my phone software. it was found to be vulnerable to hackers. most sites -- apple lacked such

production. apple says it takes user privacy very seriously. >> apple is reportedly in deals with visa, master phone to turn the iphone into a wallet. reports say users could make mobile payments with the touch of a finger. apple, visa, mastercard, analysts looking at how they're trading in frankfurt. positive mostly, but after the latest security breach, i'm not sure i want all my bank details on my phone, as well, do you? >> no, but i'm old fashioned, as well. i'm having a hard time switching everything to one gadget. i like the calendar where i write things. >> i think that's your age. >> how about you? how safe do you feel having things on your iphone? let us know. find us on e-mail,

worldwide@cnbc.com. find us on twitter, @louisabojesen on twitter is where you can find us, as well. >> let's get a look at what's on today's agenda in the united states. the august manufacturing index is without calling for a reading of 56.8 down fractionally from july. at 10:00, we get july construction spending expected to rise 1.2%. and september has a reputation as a very bad month for the markets. it all depends on your starting point, doesn't it? >> indeed. there's a lot of years that have been weak -- strong but then weak. >> but s&p capital iq, they say of the worst 20 months since '87, september is making the list four times, 2001, 2002, 2008, and 2011, as well.

if you go back to 1945, september ended higher only 45% of the time, the worst showing of any month out there. traders are saying the psychological pressures and the looming end of the fed's asset purchases could reinforce the september hikes, as well. you're also coming off very low levels of volume, right? >> absolutely. the next week is manufacturing. people come back, they will be weighing up, are valuations high or is what we've seen moving up? >> and we're in complete disconnect. that's at least how it feels with regard to what equities markets are telling us and what bond markets are telling us. we're in complete disconnect and we're in complete disconnection with what equity markets are doing versus the economic data, as well. >> for me, it's two risks. one is a short-term valuation

play. if you saw september pullbacks, that could give one more confidence. but the other one, which i think is more of a -- problem is that we've seen what markets did on the face of tapering last may. and i think the rates going up is a totally different equation. we just don't know how, a, the economy will do and, b, how the economy has done. it's a very big difference between pushing rates up and tightening. so i think it will be fascinating to see as they fundamental economies strengthen and the quality gets closer, what -- >> aren't we testing that with verbal intervention with various fed officials? they continue from yellen. but to me, it seems like markets will be ready at least for the first rate hike. >> as you said, a split vote is an important indicator of when that might come. but also, you know, when rates start going up, it can change sentiment quickly. >> i often say, where is the

next crisis going to come from? it's very sad, isn't it? crucial. >> you think how is the future going to look and what is the next big item and user in financial markets. if it's not coming from housing or banking, where will it come from? what's brewing as we're busy concentrating? >> absolutely. and we're keen to hear what you think on that. should you be selling in september or do you think that the rally will keep going? what do you think the raiding month ahead has? worldwide@cnbc.com or @cnbcwex. still to come here on the show, luxottica is unveiling changes at the top. do investors like what they see? very good. >> over here, we'll introduce the chairman after the break. meanwhile, though, we'll take a look at how the futures

are trading ahead of the open on wall street. we'll see you in a minute.

hello, everybody.

welcome back. where do we go from here? a management shake-up giving the eye wear giant luxottica a new year. but inest havers see change in a different shade. and apple fixed a bug in icloud that could have allowed hackers access to nude celebrities. >> and luxottica shares are trading lower a day after the italian eye wear giant the ceo will step down. italian papers speculated a rift between the chairman and delvecchio were behind the move. cnbc spoke to delvecchio and asked whether he would become more involved in the operation. >> it's not like i was not involved before. i left him in charge when i was by his side. we'll continue as we have been doing so. we hope to achieve our usual

growth of minimum 7% a year and we'll continue this way. we did it for ten years and now we'll do it for another ten years. still to come on the show, actually, back in the day when you were heading back to school, did you go shopping once a year? >> i did. but it was driven by my mother. i don't know that i had much choice in the matter. >> probably. but today, it's different. while it may be on for students, the back to school shopping season is finished. we'll find out which retailers will be cashing in and how the kids are spending today. that's up next. xkç

the euro is trading at a fresh one-year low. and ahead of the ecb policy decision on thursday. that's a very important number. many analysts expect the central bank to announce outright purchases of asset backed securities in an attempt to counter weak growth and falling inflation. goldman sachs cut its euro/dollar outlook this week to 1.20 over the next 12 months saying there was plenty of room for mario draghi to talk the currency lower. >> and peter oppenheimer has cut

their target. he's with goldman sachs. why? >> i think the dynamics have shifted for the euro. clearly, the ecb are looking for other means to accommodate monetary policy. talking the euro down is within part of that. but there is an increasing departure taking place between the monetary dynamics in the u.s. and in the eurozone and indeed in the growth dynamic. so i think that from a period where the euro was very strong because it was internally financed, you had high domestic phasing for the current account surplus, you're seeing a bigger drive move force. >> is this more a euro/weakness argument or a dollar/strength argument? >> i think bit of both. in particular, we are looking at generalized euro weakness and probably quite attractive. by the end of 2017, we think the euro will get the parity against the dollar.

equally, i think there's good arguments for saying generally we'll enter a period of more sustained strength over the next months and years. >> and if we have a look at what draghi has achieved so far, of course, he's got a lot of things going without actually doing that much. do you think this thursday he will have to do anything really force.ful, any outright quantitative easing? >> no. i think it's likely to be more incremental again, perhaps more detail on asset backed security programs. but that's a game changer, it's been talked about and highlighted. it's not likely to actually start before the bank asset quality reviews. so we might hear a little bit more details about that, but outright qe of government securities, for example, i think is still not likely to be on the agenda. >> peter, your chief global equity strategist. i have one question. are markets going to continue

higher? >> in equities, i think they are. i think we have a back drop of gradually improving global economic conditions. europe is stag nating, but that's not really a big change. the u.s. is improving now after a period of weakness in the first half. and you're seeing that broadening out in other parts of the world, as well. yet that is combined with a back drop of very accommodative monetary conditions, very low inflation. on a relative basis, equities stall off some value. >> and you're overweight banks, even heading into the ecb's stress test, the asset quality review. >> yes. i think the asset quality review will provide more clarity than investors wants for the banks and that will be helpful. european banks have gone a long way to improve and bolster their balance sheets and we are starting to see a positive provisioning cycle which would be helpful. but important, also, to appear where the ecb would be taking over the framework for the banks and that, i think, will be very

important in increasing the vulnerable of capital across europe which will be helpful, as well. >> peter, you're saying with us. we need to talk about some of the trends happening at the moment because summer break officially ends for the final batch of students and the back to school season will keep on going. 48% of teenagers polled by this magazine, they will they'll continue to make purchases into the fall, they'll have their new ipad cover, jeans, etcetera, ready for the first day. jason is the vice president at teen vogue. we can smile a bit and say this is the back to school season, it doesn't mean a lot. it is very important, though, for retailers. no? >> it's a big season. it's a $75 billion season. it's second ohm to the holiday season in the states. retailers have their eye on the season. it sets them up nice for the holiday. we're expecting some nice comps compared to last august. we're expecting to see anywhere

from 4% to 5% growth over last august which experienced 3% to 4% growth. >> i noted that 80% of the teens are using a smartphone to shop. that's a shift and a half. >> louisa, this has changed everything forever. the smartphone, as an accessory to the shopping experience has made this generation have more influence than any generation prior. 97% of our readers share images on social media sites of their back to school purchases .that's the crux of this cycle of influence that happens with this reader. >> and you say instagram is the number one social media platform where girls seek inspiration for back to school hopping. how well are companies using social media to drive sales? >> first and foremost, you're there. it means using social media sites to drive people into the bricks and mortar experience, to connect them back to the e-commerce and now mobile

commerce experiences and connect with consumers 24/7 everywhere they expect you to be. >> jason, thank you very much. now, coming up here on the show, investors are banking on another lifeline from ecb president mario draghi. our next guest is saying it's too early to go overweight europe. find out why, after the break. in the meantime, let's take a look at how the futures are trading ahead of the open on wall street. the implied open pointing higher. the ats is more than a validation of your achievements. it's a powerful reflection of your drive to succeed. so, forget the gold watch; grab the brass ring... you don't need anyone to tell you that success is yours, because you're busy... ...seizing it... ...drafting it... ...tuning it... making it. the new 2015 cadillac ats.

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welcome to "worldwide exchange." i'm wilfred frost. >> welcome back. i'm louisa bojesen. these are your headlines from around the world. >> u.s. investors try to slug off september sales as the euro hits a fresh 12-month low on expectations of ecb action. so the kremlin is saying it will review its military strategy in response to nato enlargement on its boarders, as kiev is warning it's in a de facto war with moscow. luxottica has a management shake-up. the chairman of the group told cnbc he's always played an active role in the business. and apple has fixed a bug that may have allowed hackers to

gain access to accounts and leak photos of nude hollywood celebrities. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. if you're just tuning in, thank you for joining us on the show. let's have a look at how markets are expected to open. the nasdaq expected to open up 11 points, the dow expected to open up about 37 points. we'll be looking forward to the u.s. market open very shortly with a couple of our guests. moving on, european markets have been strong today. they opened fairley mixed and strengthened throughout the day. france, about 50 basis points, um germany pretty strong, as well. 90 basis points. this despite quite a lot of data coming out over the next few days, not least of course the ecb meeting on thursday. lou, back to you. as we've been talking about, september has a reputation as a

very bad month for the market. the s&p capital iq says of the worst 20 months since '87, september makes the list four times since 2001, 2002, '08, 2011. we could go back to 1945. september has ended higher only 45% of the time, the worst showing of any month. traders say the psychological pressures on the round numbers of the s&p 500 and the looming purchases could reinforce the stereotype. joining us annoy, peter oppenheimer and dan. dan, i just read out some numbers on the month of september. it all depends on your entry point and a lot of things to see what's happening on what month lt. how are you viewing september

coming out of the summer? >> well, i think in general if we look at how the rest of the year looks, it's still a pretty good environment. on the economic front, pretty stable there. nothing too surprising coming from the central bank or from the fed. valuations importantly still look fine. even though we're at new highs for a lot of the indices. the multiples still look good. we think it's still a relatively benign environment for u.s. equities. biggest risk is what might happen in europe the. >> dan, would you be buying europe? >> we're a little cautious in europe on one hand. valuations are looking attractive to the u.s., but there's still uncertainty. while it's too early to say that's been resolved and we can confidently go back into the region. >> peter, we've got u.s. value ages currently forwarded around 16 times pe. what sort of level of earnings do we need to see to justify that? >> well, i think that earnings

growth is going to be positive, but is slowing. we're around 6% or so probably justifies that multiple. and the difficulty is knowing what really is different from the multiple in a world where you've got close to zero interest rates. some would argue a lot higher than we're seeing today. i would agree that valuations are not excessive in the u.s. one thing i think makes europe perhaps slightly more interesting despite the uncertainties of the current situation in russia and ukraine is that valuations are a lot lower. of course there are differences between the two markets in terms of the structure sectors and so on. but even accounting for that, i think you have higher risk into the current market and a better potential from here. >> even with economic data, it's still quite soggy in europe. we've been heading the wrong way over the last couple of months. >> the important thing here i think is where the outcome is relative to expect ages. in the summer sell-off in

europe, i think markets went a long way to price a higher risk of a new recession and deflation. we don't think that's going to happen. it's not positive outgrowth, either. i think you don't need much growth to fish the markets higher in europe, particularly when a lot of european companies will benefit from the stronger growth in the u.s. is and elsewhere. >> dan, you're slightly more bearish on europe and that you're saying that german yields on the other hand reflect a potential for a japan-style lost decade across europe. >> well, exactly. and if we think about how the equity markets might respond, certainly economic growth we know is pretty flat, including with the recession. but what we really haven't seen yet in terms of equity markets is a turn around in earnings growth expectation. you have to balance what you see are attractive valuition aes for europe and the u.s. and that's what we haven't seen yet. you haven't seen the restructuring taking place at the corporate level.

on the economic front, it does matter how willing the companies are able to reform. with his that activity in spain, clearly france, we know the implication of all that is going to be difficult. for a lot of unalternativety, that is not enough to make us eager. >> so what's your u.s. trade, dan? >> generally speaking, we think the markets are overall attractive, but not jumping up and down about it. valuations are not cheap. relative to europe, the u.s. looks good. we think some of the other regions look more attractive. if you take into account risk premiums, emerging markets much cheaper than developed markets right now. they have been outperforming. still potential in gentlemanen pa, kind of going back and forth on whether or not things are going to turn around. valuations give you a belief over the longer term? >> dan, until next time, thank

you very much, dan morris. so early where you are, as well. thank you for getting up with us, global strategist at tia craft asset management. >> peter, staying on track, you said you expect a stronger dollar move. what does that suggest for emerging markets equities? >> with the, i think the outlook is a little bit mixed in emerging markets. it's attempt to go look at them as sort of a unified asset class. they haven't been performing really that way for some time. i think on the one hand, you have some emerging markets, see quite big improvements in their underlying deficits and fundamentals. on the other hand, if we move into a period of higher u.s. interest rates, which pushes up the u.s. dollar, i think that could create some challenges for emerging markets, put downward pressure on some of the exchange rates and also some tensions for equities markets where the

economies have more fragile economic balances. so i think it's a little bit of a mixed picture. we wouldn't be clearly taking a positive step on em relative to dm. i think some of the markets, particularly in north asia, india which has done rather well do look quite attractive. but more for specific reasons because they are emerging market assets. >> peter, thank you so much for joining us. we wish you a safe flight to switzerland. >> thank you. we've been asking, should you be selling in september or do you think the rally can carry through? tell us what you think the trading month ahead of us has in store. find us on e-mail, worldwide@cnbc.com. find us on twitter,@cnbc.com. no, that was e-mail. sorry. twitter, @cnbcwex. directly to us, might be easier, @lieu wise sabojesen or --

>>@wilfredfrost. eric cantore just left his post in congress two weeks ago, but he's got a new gig on wall street. the former u.s. house majority leader is joining a wall street bank. he'll be advising corporate and investor clients on takeovers and other deals. cantor lost his seat in congress when he was defeated in virginia republican primary back in june. and it's a dark day in atlantic city, new jersey, as the we believe casino closes its doors. on sunday, the show boat casino closes down. in a fitting moment, one of the last songs over the show boat's last speaker was queens another one bites the dust. with the atlantic club shutting in january, atlantic city is now down to eight casinos. nearly 8,000 workers are losing their jobs. the city has been facing

increased competition in other states. i was at a casino, for work, and it was literally one of those moments where you're standing by a slot machine and somebody said can i use this machine? and every other machine around me was available. i said okay, fine, so i move. they put in whatever you put in, a dollar or whatever, and literally so much money fell out. >> unbelievable. have you been to vegas and atlantic city? >> i've been to vegas twice. it's interesting. i'm -- yeah. >> i've been three times. i hope we can line up an interview with one of the ceos so i can go out there again. >> just play the machine. don't let anybody play your machine. that is all i have to say. the trial to determine whether detroit's bankruptcy plan will be approved kicks off today at 11:00 a.m. eastern time. this comes a little more than a year after the motor city filed for the biggest bankruptcy in

u.s. history. detroit hopes to cut $12 billion in debt to a more manageable $5 billion. the trial is expected to last until at least mid october. coming up, more on the fallout of the famous phones being hacked. reports saying apple's icloud software had a major flaw that could have allowed hackers to gain access to several celebrity phones and photos. more details, next.

welcome back. it's back to business. a management shake-up for luxottica. a new look. will investors see the change in a different shade? apple clears the cloud on a bug that allowed hackers to access nude photos of celebrities. >> hi, everybody. welcome back to "worldwide exchange." as mentioned, storm clouds have been forming around apple over the last couple of days as hacker may have used a bug in the company's icloud software to gain access to some very private photos on some very famous people's phones.

jack jackie deangelis has more from cnbc headquarters. this is serious both for the people involved and for apple as a company, as well. tell us what happened. >> that's right. good morning to you, louisa. right now, reportedly apple is fixing the bug that may have allowed hackers to access the icloud accounts of several selecties that you mention dollars, including jennifer lawrence and kate upton and posting nude photos of them on a webb site. the weakness occurred in apple's find my phone software. the bug was exposed on the cochairing site. the photos were leaked on sunday. the sign my phone login page was found to have been vulnerable in attacks or when hackers created a tool to test thousands of passwords against a user's account until they find the right one. end gadget says apple lacked

this protect. the source of the hack is uncle unclear. britain's -- quoting appear anonymous hacker saying he was a collector, not a hacker. some say their posted photos are fake, others don't. a spokesperson for lawrence said she's contacted authorities to investigation the hacking. upton's lawyer calls this an outrageous invasion of her privacy. all eyes on apple when it comes to issues like this and everybody watching for that iphone 6 next week, too. guys. back to you. >> thank you very much for that. it's especially a story that i think we're probably not going to hear the last of. >> we've been talking about in this week. cyber security is a big risk to

market. now, we're 2,000 days into this bull market run, but can the stampede continue? we'll preview the trading day, next.

welcome back. let's have an update on european markets. very much in the green. that wasn't the case opening at the day. that was mixed. they have strengthened throughout the day. that's despite quite a lot of data releases that we've got coming up over the next few days. the most significant, the ecb meeting on thursday. the markets suggesting the ecb will likely be easing given that we've got italy up 1.2%, france up 0.5%. germany up nearly 1% and the

ftse 100 lagging them. we haven't had much movement today in the euro. it's only off 10 basis points, but it is hovering around 12-month lows. the other main areas today, i was going to mention the yen, but the yen has weakened significantly today, and that has allowed the nikkei to hit a two-week high, i believe. on to u.s. futures, as we said at the top of the break, very, very strong markets in august. the strongest for the s&p in 14 years. yet the momentum looks like it's going to continue. so how do you make money in markets like these? here is what some of the experts have been telling us this morning. >> prices can go lower short-term. i don't think prices can go to, let's say, $70 a barrel for a

prolonged period. because i think the cost pressures in the industry are too great. >> look at the strength and the yen together of the two. i think both are sitting right now because i think there's a bit of a data drop relative to expectations. i think the swiss franc will creep higher. it has done pretty well in the last month or so. and i think that turn around is in the data. it's a very interesting market. there will be reforms. the new government is very committed to have structure change in the country, to tackle the big economic problems. but at the same time, as you said, the market has been very strong after the value of one year. and after the elections, the last six weeks or so, markets

have moved a bit sideways compared to the overall emerging market index. well, we're just giving you a look at what's on today's agenda in the united states. the august ism manufacturing index is out at 10:00 a.m. eastern time, with forecasts calling for a reading of 56.8, down just a tad from july. at 10:00, we get the july construction spending through. ben lichtenstein is president at tradersaudio.com and he joins us. ben, i'm loving the glasses, absolutely loving them. very, very cool. super fly. ben, talk to us about how you should be trading the markets at the moment and what your expectations are heading into september. >> well, i think at this point for the most part, you really have to be focused on long sided opportunities. this market continues to be on a tear to the upside. the only real concern amid all of this bid activity and higher

highs and higher lows is just the rough low. it's continued unwillingness to participate for the most part all year. it's been diversion, unwilling to see the new higher highs on the year that we've been seeing in the s&ps, nasdaq and the dow. but really, the focus, i think, is also on the dollar as we see real good strength in the dollar getting up into these new year highs. continued strength there, but for the most part, i think as we enter into september, really, nothing has changed. we've rolled out of the summer months, if you will, and that psychological doldrum type period is behind us hopefully. but, again, as long as we continue to see higher highs and higher lows, i think volatility will remain relatively low. we saw the vision go out around 12 last month. i don't think any of the real fundamental contributing factors that have contributed to sustain this rally the upside has really changed. i think for the most part, we continue to see status quo, if

you will. >> ben, ukraine and russia here in europe, are u.s. investors concerned about that conflict in geopolitics in general? >> there is some, but for the most part, it's kind of been shrugged off. for the most part, we've been able to avoid some sort of a high energy sell-off or anything sustainable to the downside in reaction. again, if you look at the fear index, if you look at the volatility index, you're looking at 12. i don't really see that as a major factor right now. you know, it seems like we're one news headline away from some major sell-off, but each one of those sell-offs has been bought. and so, again, they end up turning out to we excellent buying opportunities as the market polls back. but yes, there is concern. for the most part, i think that as long as it remains at the level of concern, if you will, that we've been seeing over the last month or six weeks or eight weeks or whatever it's been now, i don't think, again, i don't

think that it's going to be the one contributing factor that's going to derail this market, if you will. >> ben, what do we do in the meantime? if we're one headline away from some type of correction, what do we buy from before? >> well, i think that you continue to play the market in the way that you have. i think that you look for the market retreating and pulling back below areas of value, that the market has established on the way up. i think until that starts to happen, again, i think that this market continues to be on a tear, if you will. unprecedented move to the upside. but this market has established areas of value on the way up. we talk about these. these are the footprints, if you will, the paths that the market has taken. and until the market starts to pullback and, you know, retrade some of those areas of values with significance, with sustainability, and energy and conviction to the downside, again, i think you continue to play this market from the long sided position. i think you look for failed break outs to the down side.

i think you look for high energy breakouts to the upside and look for sustainability. unfortunately, it's tough to pick targets, if you will, as we breach unchartered territory. i don't think that's a reason to sell the market. >> ben, we've got to go. got your message. again, loving the glasses. i've got a pair like that at home. i do. i've got a couple pairs like that. i'm blind as a bat without any glasses or contact lenses. ben, thank you very much. good to see you again, ben lichtenstein president of tradersaudio.com. we've been asking, should you be selling in september? do you think the rally can carry through? jeff tweeted in to say september is a dividend month. it takes a little bit of time to heal after that. >> it's been a lovely two days, thank you for the warm introduction to "worldwide exchange." >> thank you for gracing us with your presence. you're continuing on, i'm dashing off to berlin now. i'll see you down the line from berlin. >> thank you very much, louisa.

i'm be bath tomorrow with carolin roth. good-bye. >> bye for now. in my kitchen.enough te [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2.

good morning. welcome to "squawk box." a new month for wall street and a fresh batch of economic data, including friday's big employment report. president obama heading to europe today as nato forms a 4,000 troop force to react to russia's involvement in ukraine. and hey, you, get off of my cloud. the fbi and apple investigating a massive leak of nude celebrity photos. uh-oh. including oscar winner jennifer lawrence and super model kate

upton. it's tuesday, september 2nd, 2014. "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. it is time to get back to work and back to school. we are happy to be here with you. i'm becky quick along with joe kernen and andrew ross sorkin. there is a big deal in hoops that's happening. kevin durant is sticking with the swoosh. he will stay with nike in what could be a $300 million endorsement deal for the next three years. under armour getting stuffed on that. let's get to andrew. we have breaking news on dollar general and family dollar. >> thank you, becky. we do have news this morning. dollar general is planning to raise its all cash bid for family dollar to $80 a share. here is what's happening as far as we