xxx welcome to was was. i'm will fred frost. and i'm seem ya mody. these are your headlines from around the world. european markets open in the red after u.s. stocks had their worst day in october since 2011. # the russell 2011 was in correct territory. # >> the economic minister tells

cnbc they're sticking with their growth forecast. >> the differences are so small between ours and theirs. so it depends. >> we speak to the ceo of lamborghini as it unwraps its latest luxury model at the paris auto show. others tell cnbc they're optimistic on a european recovery. >> the worst here is behind us. i think the necessary measures have been patient. there's still a lot of work to do. my job is to turn europe around. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe.

>> ecb meets today. the main re-phi rate is 0.05%. banks are repaying deposit catch at a rate of 0.2%. mario draghi announced the ecb will begin buying asset backed securities in a bid to expand the central bank's balance sheet to 2012 levels. >> and that is what makes today's press conference key for investors. top of the agenda, mr. draghi, will be expected to answer tough questions on that controversial bond buying program. the ecb president will have to defend the luke warm-up take of the central bank's operation. the real question is what draghi will say about the pace of expansion. but as i said, the key question

is over the central about an's bank buying program. investors want to know will there be a clear sight target of overall purchases, when will they start and another crucial aspect is how the program will be split between covered bonds and asset backed securities. finally, will the central bank be able to buy junk bonds from the likes of greece and cypress? annette is joining us to help answer those questions. >> a lot of rates are looking for rate bond action here especially in the periphery, the eurozone. look at the market reaction of create, ads, the story that the

ecb is wordsing, supporting money in those noninvestment grade assets. let me give you a general idea of what we are expecting here. we would like to have the size, of course, of the abs program. is that likely? perhaps not so much because mario draghi sees his options very much open and does not want to restrict himself. so he will probably not get a side target. will he talk about which bureaucracy is going to buy? probably also not because he never really wants to say a lot about which market he's targeting. perhaps we will get a little bit more about the eligibility of those assets. of course, you need to answer the question whether they're now legible to be purchased by the

central bank after those reports. so that are the main question. of course, he will be grilled on what he thinks about the latest meeting which came out recently and also the pmi data does not look promising. and we will have a question about whether the ecb still considers full on qe to be an option to come on the table back again. a lot of investors are crying for getting qe. of course, the main question is whether that will spur lending in the eurozone. that is the biggest problem here in order to revive the economic recovery. and that is rather doubtful because the bank lending -- seems to be blocked. with that, back to you. >> thank you, annette. as we focus on the european central bank, asah kantana joins

us now. the manufacturing index slipping to a 14-month low. how important is this ecb meeting and how much pressure is on mario draghi to deliver? >> we have had the approach of many piecemeal issues being delivered. it's getting to the stage where investors want to see some solid numbers. we know inflation is falling and is now at very low levels, you know, becoming real concerns in the coming months. but we need to see what this actually plans to do, enough of the announcements, we need to see some numbers. >> and last month, you said the country's interest rates were relevant because it was so low, there's so much liquidity. could the purchase be enough to give markets more confidence? we hope so.

at the end of the last press conference, mario draghi implied he wanted to turn it up to the peak. the problem is the size of the available market outpay is only about 250 billion and the covered bond market is only about 650 billion. that's assuming they have to buy everything, which they can't. they said they only want to buy high quality assets. this is where the debate comes in about junk bonds. >> and the limited size of the eurozone bond market means once again we have to have target measures and, therefore, a lot of these measures are struggling and announcing rest of the tltros. you think we'll get more on why it's low? >> a lot of people have forgotten that the tltros are going to be useful, absolutely. but some of the previous tltro loans are being repaid. so the 82 billion that has been taken down should be thought of in the context of about 75

billion is about to be repaid. then we're talking about very small numbers. potentially, by december, we could actually see the ecb shrinking before it rises again. >> buying riskier backed asset securities, receiving a lot of pushback from security, president of germany's ifo economic institute. but does the ecb have no choice at this point? do they have to put together that program and push that forward? >> no, i don't think those necessarily have to go through junk bonds. they can just focus on the quality things. but, you know, expanding that mandate allows them to increase the size of the balance sheet by more, had they not been allowed to do that. the key focus, i think, is really on the euro, trying to get the euro to depreciate its major rival. that seems to be happening already. >> all right, we'll keep it

there. european economist at schroeders. stay tuned. cnbc will bring you full coverage of the central bank discussion at 1345 cet followed by the news conference at 14:30 cet. a lot of focus on what mario draghi will unveil. shares in rocket internet fell 14% in their market debut, buts has recovered some of their value, trading right now at 41.44. its issue price was 42.50. it was rocket internet, one of the big eft listings this year and a german company in focus today. meanwhile, online retailer zolando has lost more than 5% of its value in today's session. currently trading at 20..15. this after a stellar listing in yesterday's trade. and the hunt for red october is very much on. the u.s. market having their

worst start to october for three years. and europe has taken a similar cue tonight. the stoxx 600 down 0.6%. let's have a look at individual markets. it's a pretty broad spread of weakness. the ftse 100 down 0.43%. germany down 0.5%. the weak manufacturing pmi data out of germany yesterday, france and italy down similar amounts. a lot eyes on mario draghi in naples later today. will he give the market more confidence that it obviously is needing? >> let's look at individual stocks. shares are trading sharply higher after the german construction company announced a share buy back. the firm said it would purchase about 6.9 million shares or about 10% of its share capital.

let's look at bonds. the u.s. treasury moved quite sharply yesterday, yields coming down 2.4%. quite a big more. softer data out of the u.s. and, of course, globally. bond yields similarly low across the board. let's look boo forex. there has been some split into what the u.s. dollar is doing. we'll be looking more at that trade later in the show. but, in fact, just strengthening against the yen. the aussie dollar has backed off against its lows, off about 0.5% today. >> hong kong protesters have

given the city's chief until today to occupy the financial district. there appears to be little hope of a resolution with reports suggesting they're prepared to let demonstrations go on for weeks. they have been following events and sent this report from hong kong. >> more .more people are coming out on to the streets as momentum builds. something new has popped up. there is a sign on the wall that says why are we here. many people have responded in colorful notes the english ones say because i want true democracy. in this road behind me says right now we're on a long holiday period. the question is what will happen on monday, october 6th, when the business week starts in earnest. will the police come out and try to clear the protesters away? now, i spoke about the financial

impact all of this is having on the city with jimmy lai, media mowingus, the founder of apple daily and next media. he's one of the protesters here on the street. and i asked him, doesn't this all hurt hong kong as a financial center? he said, listen, hong kong is not so poor as to only think about money. we also have a conscious. we're transparent. we are clear. that's one thought coming from the streets of the demonstrators. coming up on today's show, we get up to speed with lamborghini's latest offering. a 5.2 v-10 hybrid. we cross to milan to talk to the eye tall kwan fashion designer working hard to keep milan's luxury economy thriving. plus, we've live in texas as more details emerge on the patient being treated for the

deadly ebola virus.

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welcome back. we're just getting flashes out

from wonga where it says profits have fallen by more than half. today the chairman has come out and said that it's clear that a need for change for wonga is real. wonga has entered into an agreement voluntarily with the sca in order to try and work to identify what whether there is any remedial action for wonga to take. this fall in profit yesterday they blamed on, quote, remediation costs money it had to pay back to customers as a result of its own state. >> there is more clarity on the identity and route of travel taken by the first ebola patient in the u.s. nbc's ron mots filed this record on the details so far and the action being taken to prevent the virus from spreading. >> the man hospitalized and isolated since sunday has been

identified as thomas eric duncan, a liberian international. they insist he posed little threat to people since arriving last week, but they are watching children. >> today we learned some school aged children have been identified as having impact can the patient and are now being monitored at home for any sign of the disease. >> five children in four school districts have been told to stay home as the district began alerting parents by letter. mike jansen picked up his daughter and said they are headed straight to the hospital. between 18 and 18 people are being monitored for up to three weeks including those who rushed him to the hospital over the weekend. sfwh what gave them any sort of indication that this might be an ebola patient? >> that wasn't the case, it's just more we're dealing with a

contagious patient. we have normal protocol, what we call glove up, you put your mask on. that's your protection. >> did hospital staff miss an opportunity to isolate duncan sooner? he left liberia on september 19th, transferred at dulles before landing in dallas the next day with no symptoms. he went to the er last friday, but left with antibiotics after telling a nurse he left africa. >> regretfully, that communication was not communicated throughout the full team. as a result, the full import of that information wasn't factored into the decision making. >> we want the best for our kids, i guess. >> as many as 10,000 liberians live in north texas. >> it's not praying for just one

person. we're praying for our nation. we're praying for all the families that have been affected. and the liberian community. >> now, officials aren't saying what exactly mr. duncan is being treated with here tonight. they say the key to effective treatment is maining oxygen and supportive care. >> not having capital controls is an achievement that, quote, must be preserved. the control bank will condition limited issues but with more. geoff has more. >> it's been a fascinating panel we've been seeing here. you have the finance minister, the economy minutester. you have the head of btb and bur

bank and one of the russian business people i was speaking to her said having the head of the bank come to a bank event was a about the like inviting mr. obama to a republican congress. so, clearly, there is a desire to put up a united front here to talk about the russian economy. it's a liberal viewpoint. the question is we need to focus ourselves on our structural issues, not get diverted by the question of sanctions and the impact from sanctions. we need to get our own house in order. that was largely the line here. i spoke with a financial services company here and i asked him what he thought this united liberal front meant for the development of the economy. let's listen to what he said. >> i think liberals in regards

of the guys with the right positions. so we saw today in front of us three liberals who are holding stop positions. when they win or not in your opinion with russia, there is always the same need for structural reform. i'm in this business more than 20 years. 20 years, it's all about the same. it's not about the words, it's about action. my opinion is that when things are good, there's very little incentive for rush that to turn things around. the economy was slowing down. domestically even before. in my opinion, it should be huge tax with change. and i do hope that change comes through.

>> and one last question. obviously, there is this story about capital control that everybody in the government is denying. do you think it may have been just an issue of planning and preparation if things continue to deteriorate is .maybe somebody got the wrong end of the stick and thought it was going to be implemented as policy tomorrow? >> when risk is growing, when rates are growing, any piece of news anybody wants to introduce is like a fire. that, in my opinion, is what happens with those rumors. i don't understand where those rumors came from. not to say that they are wrong rumors. it's just that this kind of thing, everybody expects and, therefore, which such piece of rumors picks up, it meansly picks up by all the media. so basically, that is, in my opinion, what is happening right

now. and to be honest, i don't know whether that is true or not. not that i would. and, to me, in your opinion, they didn't take any decisions. i think they will be watching the economic outflows and based on that will be making their decision. i don't mean that this decision will be kept in controls or anything. but in my opinion right now, but with the rumors, that's one thing you have to understand. that's the way it happened. >>. >> what will be background sheer is what happens over the next 30 hours. we have no idea at this stage what he's going to say. but given the united front we saw on the economy this morning, i think we anticipate there could be breaking news around this or indeed on the ewe containan situation and, as we

know, through the last 24 or 48 hours, there have been troubling breaches of the current cease-fire. so we will report on that through the rest of the day here. president putin is due to arrive any minute. back to you, wilfred. >> thank you very much for that. moving on, workers have narrowly approved a negotiated contract. the 47,000 member union held a strike last week after leading a $10 million bl bid. senior vice president and coo at kimburgh motor jones us now. i wanted to start on that topic, the union strike which stems from the central purchase of that land. do you think it's fair for them

to be so disappointed? >> well, i guess the time frame involved here is a very long one. shareholders made the point that this is very long-term when it comes to investments like this. when it comes to labor unrest, the great thing about the business here is that right now 90% of european sale here in europe are sourced from manufacturing from factories here in the eu. and so it gives us a lot of stability, a regionalzation strategy very firm and very strong. >> moving on in terms of the bigger picture, are you worried about the weakening yen and what that will do?

>> well, clearly the weakening yen and to an extent the strengthening macroeconomic factors that car brands have to deal with. our dpefts are investors and our customers will be very aware. and also the regionalzation strategy, the global scale and manufacture i manufacturing locally around the world gives us a durability and makes the investment prospect to some of our competitors. >> allen, let's talk about where you see opportunity. china showing weakness. those are markets for your cars. are you changing your product offerings based on this economic slowdown? and where do you see opportunities in this market? >> we tend to taylor or our

technical modules when it comes to individual vehicles around specific regions of the world. that gives us a very big approach to different regional cultures and taste. europe remains challenging. the recovery is very enturn and the growth in the european car market which is directly influenced by economic disparity or otherwise is also uncertain. i think the market will continue to grow this year. the prospects are continues growth next year. the challenge for my team here in europe is to remain high on the agenda. they tend to secure in the immediate term.

with our product strategy, into the market share and vehicle sales volume founded on a year and a half, two years of quality focus to ensure the operating margins that come with our increased sales are secure. >> allen, thank you very much for joining us. we appreciate it. now, fast cars, practical car webs efficient cars, it's all on offer at the paris motor show today. we want to know, what's your preference? if you want to join the conversation here on "worldwide exchange," get in touch via e-mail. worldwide@cnbc.com or @cnbcwex. >> the latest lab better jeanie promises to be environmentally

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auld third quarter gains have been wiped out on the russell 2 on 000. >> ecb president mario draghi is flushing out the details on this bond buying program amid increasing criticism from germany. >> ceos call for moscow to get its house in order and focus on structural reform. the economy minister tells cnbc that the economy is sticking to its growth forecast. >> the difference is so small. so it depends. >> we speak to the ceo of lamborghini as it unwraps its latest ruxry model at the paris show. others tell cnbc they are optimistic on the european recovery. >> the worst here is mind us.

there's still a lot of work to do, but we are doing this. my job is to create a 4% euro and turn europe around. >> and we just got some flashes out of the bank of england. the debt to income ratio and more power over buy to let income coverage. they're saying the neutral should be sfusht to tackle stability risks and saying that so far financial markets have been, quote, remarkably resilient. this, therefore, is news that the bank of england is asking for more power over the uk housing market. >> we also have data out on construction. uk construction pmi coming in at 64.2. that came in higher than analyst

estimates. it's an eight-month high. interestingly enough, given the weak data we got out earlier this week on manufacturing and inflation, this data seeing somewhat of a bright spot in this week. right now, again, looking at the sterling/dollar trading at 1.61. uk construction pmi data coming in at an eight-month high. >> the 2014 paris motor show is underway. new passenger car sales in the continent increased a modest 2.1% in august. the weakest showing since november. but despite tough market conditions, one of europe's top luxury players, lamborghini has released a new 5.2 liter super car from separation of 0 to 60 in three seconds and a top speed of 200 miles per hour. we're joined now by the ceo of lamborghini from the paris motor show. stephane, it's lovely to have you with us.

this is obviously a super car in terms of performance, but it also has some electric vehicle characteristics. is the world of pure petrol cars behind us? >> no, it's not. and this is a concept car. it's a test for us. it's the first time that we are bringing in a hybrid car. we are testing new designs. there is still a lot to do on the engine. in the time being, this is a study. it's to showcase what lamborghini is able to do because we are capable of all the existing technology. >> ferrari and porsche have entered the hybrid market. why do you think consumers will go towards hybrid versions versus what is out there on the market? we are two very young and successful models.

we are strong with our dna of naturally upgraded engines. we look into what we do. we are the most exclusive super sport car builder. so we don't need to do everything what is brand new. we have to be innovative. but on those things what the customer cares about. we are delivering at this more than 2,000 cars. the other brands much more than this. so we are focusing on the edge. what we show here is the opportunity to see how our own customers are reacting on hybrid. >> stephane, as you say, you operate in ultra high end luxury niche. how is that facing up in the face of global economic woes? >> you know, we are doing very well in north america. by far, the u.s. is our biggest market. followed by china and then comes

the uk. we have japan, germany. these are our top markets all around the world. we make sure we have one-third, one-third, one-third in terms of regional distribution. which is covering a bit if there is local crisis coming out. >> stephane, let's talk about china. is that a concern for you and about your growth strategy going forward? >> it's our second largest market of the u.s. we are focusing a lot for the future of mobility in china because we have a lot of the young people buying our brands. but also the regulations will be getting tougher and tougher.

one of the possible technologies, one of the possible -- not the technology in hybrid. >> stephane, as you say, the regulation is getting tougher and tougher in china. a number of your foreign competitors and your foreign competitor, audi, facing stiff regulatory measure necessary china. >> that is here. what is driving these measures is the environment. we are selling worldwide a bit more. we are doing the utmost to compete and balance between what the legislation and dna is asking us for. it's for another manufacturer. i think they will manage it

together. >> what do you think about the leadership changes at ferrari? do you think some people means it's more likely they'll list the company in the future? >> well, you know, i care about lamborghini and ferrari is a good neighbor and i think also future that will be. >> we'll continue our coverage of the show throughout the day. phil lebeau will be speaking to the ce of of daimler. make sure to keep your set on sfor that one. >> the european central bank meets today in the italian city on of naples. the press conference will be closely watched on the details of the controversial bond buying

scheme last month. questions for mario draghi include will they get a overall size purchase in bond markets. finally, will there be any restrictions? will the central bank be able to buy sovereign rated junk bonds despite resistance from germany? all this coming as the ecb trying to expand its balance sheet on 3 trillion euros. >> the strength of the euro. around six months ago, it stood around 1.38 versus the dollar after the first round of rate cuts in june. we saw it moving lower. it wasn't until august in jackson hole when mario draghi appeared to hit more action was on its way.

that action came in the shape of another drop. this month fall in prices coupled with a batch of pmi data has seen the euro break below the 1.26 mark in years. >> stabilize the european market. what we have to organize is somehow life grows better. what we can do we should do and we will see. so we expect that the market in europe issing going a little slowly in the next one on or two or three years. >> at the end of the day with we try to hedge our currency.

we can see what happens on the spot rate. does it affect the performance of the country this year? no, it doesn't. maybe there is some new dynamic that's going to come along. over the next six years, the dollar versus the euro has been up and down. all in all, we try to have balanced currencies around the world, anyway. >> and the european car demand is not back yet after the p precrisis level. but we have to be optimistic that we see an uplift. >> gugli alani joins us now to talk about his company as well as a political back drop. coming in ahead of the ecb

announcement, we're expecting mario draghi to unveil how he plans to revise the european economy. weakness in the domestic consumption has been a headwind for many italian companies. including yourself. what are you doing to offset that weakness? >> good morning. first of all, domestic buying is down for a few years, caused by cash flow that was passed two years ago. this is about 2 billion of business with italian consumers. i'm talking about luxury companies i represent. and, of course, in the past three to six months, we've seen an increase of chinese clients which are very important if you think that 80% of the business of the 3 billion ur roys we do in milan is from foreign kind. unfortunately, we saw decreased with russian clients probably

because of uncertainties in the country. and so we are actively seeking these clients both chinese and russian. but we are looking to boost american presence in milan, which now is at 3% market share. >> ahead of a fashion house, i want to get your thoughts on what you think the italian government needs to do to spur growth and to get consumers spending again. >> it's very simple. first of all, we need the flexibility of work and, therefore, for us, if you want to develop that such as my small fashion company. and take people on board, but also be able to fire people that are not able to succeed in my business. this is the first thing we ask for the government and it's very important that they take care of this. >> do you think this is down to

what mr. renzi is doing rather than what mr. draghi is doing? and how do people in italy view both of those individuals? >> they are very, very respected, most of them. i think what draghi has done so far helps the business in italy. the euro is down and for us it's too high. for us, we export about 90% of our problems and talking about this. it's important for us to be competitive on an exchange rate, as well. with regard to renzi, he has many things on his agenda, but i think the most important is about flexibility of work and italy has one of the highest taxation levels in corporate tax, as well. >> thank you so much for joining us. >> thank you. now, joining the european commission has been asked to attend a second period. this comes as hill states that he is not just a representative

of the city of london. >> pierre moscovici has assured us that he won't be stopped in his home nation of france. stephane has more. >> as we would expect, the hearing on the french case, there's one question which probably summarizes very well the sentiment from the european parliament. how are you going to convince creeks to do what you were doing in france. france is going to request another delay, it would not give the french government special treatment and also there's a question mark about how she's planning to enforce the rules.

too much austerity could jeopardize the economic recovery. they're not advocating the french deficit. you say the rules are already flexible enough and that, for instance, they're also taking into account structural reform in france without saying clearly if it would apply to the french case. it's a very uncomfortable situation. they have continued the deficit target. >> thank you very much, ste tan. still to come on the show, shares in rocket do anything but their name a implies.

the stock dropped over 10% on its frankfurt debut. we'll take a closer look, next. ♪ mr. daniels. mr. daniels. look at this. what's this? clicks are off the charts. yeah. yoshi, we're back. yes, sir! ♪ more shipping! more shipping! ♪ [ beeping ] ♪

honda will slash domestic production over the next two months. >> japan's third largest automaker is suffering sluggish sales in the domestic market and will reduce production by 20% by closing on fridays. it's unusual for a carmaker to suspend operations on a weekday. the firm is planning to reduce production by 10% to 20% at one of its mini vehicle plants. japanese carmakers in general have suffered a sharp downturn in domestic demand following the sales tax hike in april. honda has felt the impact more than others since most of its vehicles sold worldwide are produced on-site. most of those produced in japan are for the domestic market. the car market will push back after stating a slew of recalls after its popular subcompact fit hybrid. another 130,000 vehicles of a different model were recalled a couple of hours ago.

it could mean around six new models planned to release by next march will be delayed. the news led to a heavy selling of honda shares which plunged to a three-week low. that's all from the nikkei. back to you. >> thank you, makiko. shares in memal group has jumped more than 20% marking its biggest ipo in the region. it was a heavily oversubscribed, offering some 30 times on the

institutional grant. keep in mind that we've spoken in the past a lot about heat building up and the property market. analysts would have been speaking to has been concerned about valuation on the equity markets and this statistic new entity, as well. i spoke to an analyst who told me, yes, the pricing is aggressive. it was still a fair valuation of the group and that the primary asset would continue to capitalize on rising, tourism spent and growing consumer retail spent and growing tourism, as well. of course, that is seen as a broader milestone for the region and a possible catalyst for more ipos down the line. we have news this morning that the national commercial bank in saudi arabia will be looking to raise $6 billion in the listing this month. back to you. >> virgin money has confirmed it

will be on the london market in a bid to raise 115 million pounds. the bank founded by entrepreneur richard branson says it will pay 15 million pounds on completion of the deal to the uk government this at the height of the financial crisis. analysts suggest the ipo could value virgin money at about 2 billion pounds. meanwhile, retails er debuted yesterday. both of these companies, rocket internet and the lander falling in their first couple days of trade. do you think they've been wrongly priced? >> i think investors are still trying to understand the business models and what these companies are offering to the public markets. perhaps initial hesitation, of

course, there was a lot of interest in the german e-commerce internet space, especially after alibaba's stellar debut. you saw a lot of investors looking for opportunities here in europe. >> it begs the question in terms of the ongoing momentum of the stocks about how you price those public offers and how things are going to go after that. richard branson with virgin money, possibly another winner. >> illustrate looks like it. >> that one will be an interesting one for the fashion side of things. we haven't seen that much in the central world. it will be interesting to see how people are going for that given the wider consensus of that equity market.

>> european luxury stocks this year. let's have a look at u.s. futures. more red, the hunt for red october continues. two days of down trade in the u.s. already in october. and it's looking like we're going to get a third one of toss days. >> theater. following the sell yaufr in u.s. and asian markets, european stocks are trading lower. ahead of the ecb decision on rates and its asset backed security program. pressure is on mario draghi to deliver. still to come on the show, the ecb, the governing council lands in naples as mario draghi could announce plans to buy up to 200 billion euros of asset backed securities. we're live on the ground in naples after the break.

welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. >> european markets open in the red after stocks have their worst october since 2011. major indices wipe out all gains in correction territory. >> time for answers. ecb president mario draghi expects to flesh out details on the controversial bond buying program amid increasing criticism from germany. key russian policymakers and ceos call for moscow to get its house in order and focus on

structural reform. but the economy minister tells cnbc they're sticking to a growth forecast. >> it's difficult to say. it's on their focus. >> automakers at the paris auto show tells cnbc they're cautiously optimistic on the european recovery. >> a worse here is it's behind us. i think the necessary measures have been taken. there's still a lot of work to do, but we are doing this. my job is a 4% euro and turn europe around. and a rocky start to the month of october. we have to wonder if this is the start of that highly anticipated correction. >> absolutely.

wiping out all of the third quarter gains for september. there has been quite a lot of bad news out there the last couple of days. the ebola issue in the united states has worried people and then macro data both from the u.s. but particularly in the eurozone has been slightly weaker than expected. and, you know, that's quite a bit amount to take on in markets in the last few days. there are the hong kong issues, as well. we'll have to see as the week goes on. >> a lot for investors to digest. premarket trade in the u.s. currently i implying a lower open. nasdaq showing a lot of about 3 points in premarket trade again coming in after we saw october, the first day of october sell-off on the s&p losing about 1 is%. now on to the ftse cnbc global 300, a good gauge of stocks around the world. very close to the session lows. on that note, let's dive into

the individual european regions. following the sell-off we saw in the u.s. as well as in asia, you're seeing european markets trade in negative territory. a cautious day ahead of the ecb meeting. right now, we're looking at the ftse 100 down about 30 points on the day. the xetra dax down about 37. french markets down about 20. and it's italian markets currently down triple digits, about 250 points been it will be interesting to see if these markets can pick up given what mario draghi has to say. >> and expectations of more easing from the ecb has allowed france and spain to get away significant bond auctions, five and ten-year notes at record low levels so far this morning. the spanish yield at 2.07%. french yields. but nonetheless, record lows for those two auctions have gone away this morning. the ten-year treasury note in

the u.s. has fallen below 2.4% for the first time in a couple of weeks. that came on the back of slightly weaker data yesterday. this is the back rush for safety, even in the u.s. the forex and u.s. dollar, a sigh vergent trend for the first time in a couple of trading days. not just strengthening across the board. it is strengthening against the euro because of expectations of the loosening. it's bournsed back a little bit, the euro up about 0.1%. the u.s. dollar against the yen. the u.s. dollar weakening there. 0.8795. >> the ecb meeting today. the press conference will be closely watched by investors for details on the central bank's controversial plan to buy asset backed securities. annette is in naples with the latest. annette. >> thank you very much.

hopefully there will be a lot of questions and answers during that. the first question coming to my mind is about the scope of the program. of course of course, right now, the calculation for the ecb to buy on the ads market when it comes to senior tranches of the financial instruments. so what we expect here is details that he actually could extend the submission of what is -- for the ecb. coming to my mind here are junk adss i should say from greece and cyprus, how it was reported from the financial times. that would be one option to enlarge the circle of assets the ecb could buy, but also mr. draghi could have a word on

mezzanine. they have higher risk and were not invisible under the current framework for the ecb. so the whole question is how enlarmg the asset tools because the ultimate goal is to spur inflation. so we are slowly reaching deflationary territory here. >> thank you, annette. we're looking at the european stocks trading lower. expectations are high. but markets suggesting that dralgy will not be able to deliver a plan that will revive the european economy. >> europe has an uphill climb. they're going to buy asset backed securities that we've seen since 2012. in order to do that, they need to expand their balance sheet by

54%. so the concern is there aren't enough assets. there aren't enough assets out there for them to be able to achieve it. so they're being overly optimistic and all hopes are on quantitative easing. to do that, they need to get over the political wrangling which appreciates them to get over the government bonds. they need to get around them. >> do you think we have to see german economic data get a lot worse before they're going to allow the ecb to take action? >> the good point is the fact that investor expectations are high. the ecb is very aware they don't want to come out and disappoint. because they've come out so often and trying with their actions, it means that they do acknowledge that the pressure is going to increase. we've seep already, we've seen france, we've seen italy delay when they're going to be able to tighten their budget. so you've got these disappointments out there. the pressure is on.

they are going to try to get more involved. >> does that underline europe is need to have target policies as opposed to broad brush policy and should we give the tltro program a little longer to see if it works? >> that's what they're hoping for. so it's lend to banks encouragement to pass this on. but here is the main point. you can increase the pie as much as you like, but if you don't increase demand, it's not going to go anywhere. there so many companies out there that have been so -- have lost confidence and because they've lost confidence, they're not coming out and demanding these loans. so what we do need to see is a reversal of all this negativity that's going out. we need to see targeted act as you're saying. >> has that stopped you as an investment manager from allocating capital into this market? are you waiting on the

sidelines? waiting for some type of accommodative policy to come back in before you become more bullish on the markets? >> it may be a more binary trade. it means that you either believe you're going to have straight quantitative easing which will provide a fan taftdic upside to the market or you believe it's going to bumble along and really struggle. we've taken a bit of a cause on increasing allocation. we still do believe equities are the place to be over the longerer term. if you look at for example the u.s. is on a much more sustainable pa path. we know they're going to be supporting markets potentially even longer than markets think, that's where there's a little bit more confidence. >> we'll leave it there. gemma will be staying with us for the full hour head of asset at brooks mcdonald asset management. weekless jobless claims are on out at 8:30 a.m. eastern forecast to rise by 4,000 to a

total of 297,000. at 10:00 a.m., we can august factory orders expected to drop 9.5% avenue rising more than 10% in july. new york's phil dudley, as for earning, look for results in wine and beer different attributer mccormick. let's take a look at today's other top stories. the u.s. patient diagnosed with the ebola virus has been identified as liberian national thomas eric duncan. reports say duncan may have been effected when he helped carry his landlord's lawyer to the hospital who had ebola. she later died. there are no other expected cases in the united states, although they are monitoring people who may have been in contact with duncan. usair lines fell sharply on wednesday where biotech drives did soar. you can see the airline stocks

down there. up around 18% yesterday. moving on, the head of the u.s. secret service has resigned amid several security lapses. her departure comes after a former veteran justified the fence and got into the white house. coming up, we're going live again to the paris auto show. next, we'll be joined by the ceo of ford, mark field. that's coming up next on "worldwide exchange." your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership.

banking. loyalty. analytics. synchrony financial. enagage with us.

. welcome back. let's give you an update on the headlines. u.s. stocks poised for another day in the red after the russell 2,000 has been sent into correction territory. and carmakers in paris tell cnbc they're optimistic they can turn a corner in europe. >> u.s. auto sales staying strong for the month of september. sales are up 9% to 1.2 million cars and trucks according to

auto data. the figure did slow from last month, but august was the strongest month in the industry for eight years. chrysler and gm led the way with an increase of 9%. ford sales nearly 3% for the month. we asked ford's ceo about whether ford had a false sense of security. >> absolutely not a false sense of security. we're executing our plans. literally every week we're looking at that business environment and dweelg that reality. and i think we're doing that proactively and positively. >> and you mentioned south america, you mentioned russia, as well. you were massively outpaced in the latest set of figures by chrysler and general motors. fell 2.7% in september, as well. even in your home market where you have many, many advantages, you're suffering. >> well, let's put that in perspective. the month of september, we had record sales for our fusion, record sales for explorer and

record sales for the month of september for lincoln since in the past four years, the highest sales in lincoln in the past four years. now our f series was down. we're pleased with our sales in september. we're working through our transition. it is going to provide us the opportunity to grow next year. >> we will be continuing our coverage from the paris motor show throughout the day. phil lebeau will be speaking to the chairman of daimler a little later. make sure you keep your seat belts on for that one. >> far caster, practical cars, efficient cars. we want to know what is your preference? what do your wheels say about you?

it's about time to unveil the "d" and something else. a photo shows the garage door lifting to show the front end of the vehicle and mentions the date october 9th. elon musk has previously said a third generation of tesla cars would include a butch ro budget sedan. price point of the car is quite high, so you have to wonder if bringing the price point down will give access to a new customer. >> absolutely. and so far the performance of these cars is excellent. interesting that the lamborghini is out today. it looks very, very interesting. what about you, do you have a lamb better kenny? >> in my dreams, wilfred.

but one day i have hopes. i believe in conserving energy. exactly. i would like something along those lines, as well. but i'm more practical at the moment. moving on, russia calling for a change. a host of economic liberals outperforms to boost the flagging economy. what does vladimir putin think? we head to moscow, next.

. welcome back. right now, u.s. futures point to go a lower open. staying in negative sentiment carries through to european markets today. red across the board, italy plunging 1.3% the other major indices down close to 0.5%. gemma god free is still with us. gemma, a small correction or the start or something more

meaningful? >> what it means is a lot of investors are trying to lock in profits. if we look at small caps as a fantastic gauge of investors sentiment and in terms of the outlook going forward, it's high to play and is a leverage play on the growth of the economy. the fact that they're rotating on out of that, this isn't surprising. therefore, this is natural. we're going to see more volatility. we need to see the shakeout. what we're seeing is a wider divergence in markets. so a wider opportunity to differentiate and profit in markets. >> where do you see capital, sectors that hasn't been working like technology and health care or other sectors that have been underperforming? >> what we see is a shakeout in potentially overcrowded markets. there's been a lot of complacency.. so what i would say instead is focus on companies where you are

more confidence in the outlook, they are more stable. >> it's going be more producted when you have these shakeouts. >> we've been talking about auto stocks quite a lot today. that, of course, is the very strong u.s. dollar. which sectors in particular will benefit.? >> we have a play on that in terms of europe. there are some auto sectors that have a lot of government incentive there. but if you can play that, the dollar play, you look at the energy sector and there's a lot of commodities. you're going to see a big fallout there. that is a gray area there.. but yeah, we're looking more broadly in terms on of where we think markets are going, when they will start to tighten. we think investors have potentially overestimated when that's going to start.

>> and as we see the dollar strengthen, we're looking at the euro trade significantly lower against the u.s. dollar. but some analysts say the weaker euro could provide a boost to earnings in europe. what are your thoughts on that? >> exactly. one of the problems we've had, especially in the uk, is it was really affecting us. what we're instead going to see is it's going to benefit the bottom line in these companies and, therefore, it is smlg to play. but you have to focus on where these companies are selling. if it's a european company and it's selling to struggling markets in italy, it will be less protected than if they're exported to the u.s. or focusing on much stronger neighbors. >> we're going to continue to watch the equity space and the treasury mc. the company says the lion air share of that comes from the

company. morning star says its september outflow is the tri's largest ever. but while the summers are large, they're unprecedented as a share of the fund's assets. i have to get your thoughts on the market and particularly this fund which continues to see outflows? >> outflows is based on movement and fund manager moments is usually overblown. we're not as concern about that. one part of the bond market that we are still concerned about is high yield. while dealer inventory is lower, it means there will be fewer buyers in the market. you saw the u.s. credit double in size and inventory drop. >> and let's look at the ten-year treasury yields. it was 2.6% as recently as last thursday, to come in on 4%

particularly facing the weakness. >> you have to see the treasury yield in relation to other yields out there. one of the concerns is a lot of stocks overshoot. so there is a concern in terms of markets. again, if we look at where the fed is, therefore, it does give us a win-win situation. we're not as concerned as we would be otherwise. >> thank you very much. gemma stays with us. bank of america had concerns about roles of chairman and ceo until 2009 when shareholders voted to strip then ceo ken lewis of the chairman title. investors had objected to lewis to buy merrill lynch at the height of the financial crisis. in a quarter when the bank lost $15 billion. bank of america is trading down about 1.3% in free trade in

frankfurt. coming up next, we are live in texas as more details emerge on the patient being treated for ee bowl what. that's coming up next.

welcome back to wgs was. i'm seema mody. >> and i'm wilfred frost. >> automakers gathering in pair r paris to look at the u.s. markets gathering. the ceo of ford tells cnbc he's being realistic about market conditions following a recent profit warning. absolutely not at false sense of security. we're excusing our plan. one of the parts of the way we run the company is literally every week we're looking at that business environment and dealing with that reality. >> raushan policymakermakers focus on reform.

the kremlin is sticking to its growth forecast. >> on the right because the difference is so small between ours and theirs. display you're watching "worldwide exchange," bringing you business news from around the globe. and if you're just tuning in, tlanks for joining us here on "worldwide exchange." here is a look at how markets are faring ahead of the u.s. open. futures pointing to a lower open. this, of course, coming after stocks witness a 1% decline in yesterday's trade. a rough start to the month of october. a lot of focus on the russell 2000 index, as well. the small cap inge decks is trading in correction territory. that's 10% off its intra day high, excuse me. a lot of focus on wherer woulding go z to see opportunity. all ten s&p sectors ended in negative territory with energy

and tech stocks underperforming. on that note, let's take a look at the ftse clnz global 300 index. still down about 11 points on the day or down 0.2% trading. let's dive into the individual european markets. a lot of focus on the purchase of asset backed securities. we're looking at the italian markets down about 250 points, french market down about 19 points. xetra dax down 28 and the ftse 100 trading down about 24 points. not having capital is an

achievement which must be preserved. speaking at the russian conference, the central bank would continue limited forex intervention, but added the economy's main problems were, quote, struct turl. jeff is in moscow with more. >> yeah. it's an interesting story here at this event we're attending. we've had the finance minister and as i speak we are waiting on the president, mr. putin is due to arrive here any minute and give a key speech. so as we get more details from that, we'll report it. but we've had some very interesting comments already. i've spoken with the economy minister who insists there will be absolutely no capital controls. so that just restating the government's view on that issue. i spoke to a deputy finance minister. i asked him about the ruble's

decline. is there a line in the sand? will there be intervention? no, no intervention planned was the message from the deputy finance minister. i asked him what the consequences would be of a significant decline in oil. because there's talk of modeling being done here at $60 a barrel. that would have a dramatic impact on government revenues. let's just listen to what he had to say. >> again, it's a major. we really -- we have no foreign exchange to speak of. we have very low foreign debt. and we have oil experts according to their ruble oil price. oil price falls and then the ruble oil price changes. so there is a -- it's an

adjustment in the reserve fund which is designed specifically for this kind of -- for a difficult fall in oil price. but i agree with you, it is a catastrophic scenario. we feel those prices are below $85 or $90 per barrel. they want to be prepared in case a lot of things happen. >> increasingly, they're becoming concerned that russia is becoming closed for foreign business. and it's almost a reaction to sanctions, thought of some legislation may be to allow the government to seize foreign assets. you've got this systema now, no one understands why the chairman has been put under house arrest. how should we read these stories as foreign investors?

>> so far, any degree of popularity in the russian economy. if anything, i have heard comments that we are opened up our financial market completely. foreign investors have been able to buy equities directly from russian bonds. now we he up equities, as well. so we are continuing to open up the economy. we haven't continued any investors coming into russia. >> how would you describe it? >> the chairman, i cannot comment. i don't know what happened there. but the shares if you are a criminal, they're not economists.

>> and for those who are not familiar with that case, the systemic chairman is currently under house arrest. although there is some talk that the reasons behind this are not criminal related. it may be something to do with rosneft having a part in the business. you are also seeing pictures of the panel. the president, we think, will say something that could be potentially market moving. he hasn't spoken on the economy, really, since back in st. petersburg much earlier in the career. we will be listening very closely because there are a number of hot issues on the table, not least recent speculation as to whether there might be some restrictions imposed on the internet. for the time being, i'll send it back to you in london.

>> thanks very much for that. as you can see from that panel, there was just one seat left to fill. that is for putin's speech and we will be going out to moscow when the president begins hesitate speech. hong kong's pro democracy leaders have called for the city's chief executive to resign by did end of the day as protests enter their seventh day. thousands remain camped out in the city's center. following a meeting with china's foreign minister in washington, u.s. secretary of state john kerry called on beijing to show restraint. >> we support the even versal suffrage. we believe in open society with the highest possible degree of autonomy and governed by rule of law is essential for hong kong stability and prosperity. and we have high hopes that the hong kong authorities will exercise restraint and respect with the protesters right to

express their view. >> now we're going to go out to see susan lee live in hong kong with the latest. >> hi, seema. once again, you're right. we are heading for a bit of a collision course tonight at midnight. feeling probably a little bit emboldened. and a low profile when it come to police presence here. now, i also want to point out that we forgot to mention in china, the people's daily, saying beijing will not back down not even one inch. they're going to preselect candidates for the 2017 chief of chfbs selection. the election or the vote, then. it looks like both sides are being entrenched at this point. we take a look outside the central park of the protests. in fact, at 9:00 p.m., we saw around 200,000. those are the estimates there by

the protest leaders. given that tomorrow is return to would be, markets get back to work. there has been quite a drop-off in the numbers out here. i want to point out that we do, of course, have the markets with the two-day closures. playing a bit of catchup in across the rest of the world. but i also want to point out the tourism concern. this time of year is a very busy time in hong kong with mainlanders coming here into the city. we heard from the inbound travel people at the hong kong government saying that this year we could see a dropoff of 50%, which would not be good for the hong kong economy. on that note, back to you and we'll get to the latest right here in hong kong. >> sounds good. thank you so much, susan. and coming up, automakers burn rubber as they rev up to win the u.s. rates. we get the latest news from the paris motor show after the break.

u.s. auto sales in september decline from the fastest pace in eight years. toyota's results missed analyst forecasts. ford sales up 3% last month as it slowed production of the

f-150 pickup truck as it prepafrd to launch for the resign of the 2015 model. we've been speaking to the top automakers at the paris auto show who have been looking to offset weakness in europe and emerging markets. >> we try to hedge our currency this year and this year we're fully hedged. we can see what happens on the spot rate. does it affect the performance of the country this year? no, it doesn't. of course, going forward, there may be some new dynamics that go that's going to come along. but if we look back over the last five or six years, the dollar versus the euro has been up and down. all in all, you know, we try to have balanced currencies around the world anyway. >> the whole recall thing caused a big reorganization. north america is on its way to get a 10% profitability. so there's a lot of energy tips. and i think the company is really changing and under mary barra's leadership, i can feel

that every day. >> i think the u.s. is a very challenging market for us. and we have had in several last year several problems, including, of course, the financial tools after the other crash. but right now, i think we are working with a good plan. we are -- have a good financial offer to our customers. and this new week will be essential also for the comeback on the u.s. market. >> auto reporter phil lebeau joins us from chicago. phil, interesting to see how automakers seem to be cautiously optimistic on europe. but very bullish on the u.s. >> and that's going to be the way it's going to be probably i would say for the next couple of years, seema. we're starting to hear automakers talk about turning profitability in europe. a market where most automakers have been losing money for the better part of the last 15 a years. we're starting to hear that they could be turning a profit within

the european continent, maybe by 2016. but i have to tell you, even those projections, when we heard them, those cautious projections, we've heard others come back and say i'll believe it when i see it. there's still more capacity than one area needs in terms of an auto market. >> and, phil, on that front, we have seen very high seasonally adjusted sales in the u.s. so it could be spun the other way. are we at the peak now? while margins for the likes of ford and gm higher given that the supporting dynamics are there? >> i don't think we're at peak sales in the u.s. i think when you look at the dynamics in terms of how much pent up demand is still in the u.s., the strength of the economy and relatively low financing, and the fact that they don't have to specialize these deals with extra incentives, i think we can see sales go well north of 17 million for an extended period of time. maybe anywhere from 12 to 18 months. so if you look at it from that

perspective, many do not believe that we've seen the peak in terms of u.s. auto sales. now, profitability in terms of profit margins, that's a different story. we're no longer in a market where you're going to be able to get sales very easily. it's going on be increasingly about differentiating different products. >> phil, thanks very much for that. we're giving you now live pictures from moscow, russian president vladimir putin is addressing the annual conference. we're going to listen into that now. >> translator: modernization of industry infrastructure creating modern job. and raising living standards of citizens. yes, it has become more difficult, but this, like i said, is an incentive for us to focus resources and pick and choose best solutions. what is faster, more efficiently in all fields.

our action will be based on balanced responsible macroeconomic policy, fiscal policy. the event of the past 12 months have once again demonstrated that year back we made the right choice. despite difficulty situation global arena as event august last year, the surplus of budgets is over 900 billion which is two times higher than last year, over the same period of last year. that said, we adhere to the budgetary rule which means that oil and gas revenues are channeled to the reserve signs. with regard to inflation, about 7.6, 8%, which is higher than last year in 2013.

inflation was at 6.5%. by the way, that is an additional incentive for us to develop domestic agriculture, upon tear inflation does not exceed the forecasted 5%. the federal budget for 2015, 2016, 2017 that the government submitted. that was vladimir putin speaking there. we'll bring you more headlines from his draws when it is finished. coming up on the sew, we weigh up draghi's asset backed positions ahead of that highly critical ecb sdig. your customers, our financing. your aspirations, our analytics.

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into more details are emerging today about the first united states patient to be diagnosed with ebola. >> we've learned the patient's name is thomas eric a duncan. he arrive here from liberia on the 20th. he flew through brussels and then to washington dulles and then here to dallas where he initially sought care on friday. but was dismissed from the hospital because it wasn't communicated that he had been in west africa. on sunday, he was placed in isolation has been in treatment. his continue is serious but stable. the state and the cdc are working to contact anybody he may have come in contact with. governor rick perry spoke at a

news conference yesterday. the mk communication that happens at the hospital is worrying some folks. ebola isn't consageus unless there are symptoms like a fever. there ever questions about whether he could be treated with experimental drugs. there was one called zmap which several people received. that is out of supply. there are questions about what kinds of treatment he'll receive. other folks with ebola have received transfusions from others with ebola. texas officials are working to retrade his contacts.

>> i know ebola seeing pressure on fear less people would travel. the dow witnessing a triple digit decline. the ecb is also in focus. the press conference will be closely watched by investors for details on the central bank's controversial bond buying scheme announced last month. this as president mario draghi tries to revive growth in the eurozone. wilfred, you have those details. >> indeed, i do, seema. after the first round of rate cuts in june, we saw it move lower. it wasn't until august at zackson hole where mario draghi appeared to hint more action was on the way, that it took another big stumble. that action a came in the triple

rate cut. mario draghi's pledge to use unconventional measures to push the single currency down purth. this month's fall in prices coupled with a batch of weak pmi data has seen the euro break below the 126 mark. in a risk averse move in the market ahead of that ecb decision, jim, i want to bring you back in. what are your thoughts on how investors should play this market ahead of that ecb decision? >> the problem is we need to see a closer integration of all the different countries in the european union and straight bond buying. it's very unlikely we're going to see this. you can see further risk aversion. >> and if the market doesn't get what it's expecting, do you think the market could sell off

more? >> the dern is there's so much pressure and hopes for straight quantitative easing. the asset backed security market is not going to be big enough for them to reverse the contraction that we've seen in the balance sheets. >> in response, we're seeing investors squeeze through safe haven assets. gold has been spiking the last couple of days. i wonder if that's the trade going forward. >> you can see always see overreaction. i would still rerail in areas you're comfortable on. let's talk about the tech sector. what we would say there is it's a prime example of differentiation. you've got company that do have strategies for growth. you have other companies coming forward that do not again right that in this environment. there are great opportunities. >> gemma, thank you very much.

that is all we've got time for. i'm will forget frost. >> seema mody. "squawk box" is next.

welcome to "squawk box" this morning. futures falling following a massive sell-off. oil prices tumbling, dipping below $90 a barrel. plus, protesters in hong kong, they are commanding the resignation of the city's chief executive, but beijing is not backing down. it's thursday, october 2nd, 2014, and "squawk box" begins right now.

good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew ross sorkin and steve liesman. joe is off this week. we have a very special program for you today. warren buffett will be joining us on tuesday about two hours for now. a lot to talk about for the billionaire investors. also jobs with that big jobs report coming up tomorrow. you name it, we will be talking about it. that gets started at 8:00 a.m. eastern time. the major indexes falling more than a%. that is the worst start to the month for 2011. there's no single catalyst here, but among some of the excuses that were most often cited, you had soft economic data, fears about ebola and unrest in hong kong. that led to a big shelloff overnight with japan