welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. these are your headlines from around the world. >> rio tinto shares rally at the open after revealed rejected a mega merger approach to rival glencore. the news sent our mining stocks heighter. >> but the m&a stocks, not enough to lift stocks into the green. shares in the south korean

electronics stocks move higher. a spanish person becomes the first person to contract ebola outside west africa as president obama outlines plans to screen passengers for the ebola disease. >> ebola is a very serious disease. and the ability of people who are infected to carry that across boarders is something that we have to take extremely serious. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> rio tento has ejected a takeover bid from glencore back in august. they have created the world's biggest liners. rio tinto shares are leading the ftse. glenn core is trading higher while the news lifted other m e mining stocks. glencore has not rumd out a

fresh approach, this a according to its sources. chris is with us for the next half an hour and nick, as well. nick, do you think this announcement, this deal that glencore is looking at rio tinto, do you think that suggests iron ore price ves bottomed? >> not necessarily at all. one of the main rationales for the deal is glencore believes it can eek out a few dollars extra. the cost energies are relatively small, but not negligible. one of two overlapping mines, but one or two cost energies. i think it's a strong rationale for the -- a strong industrial rationale for the deal. >> do you think these mining stocks are rallying on the hopes that some day a deal will come to fruition? >> i think rio tinto is up because of that. i think angelo is up because that is another potential target for glencore. and i think glencore is up because generally, from the few

miners that has a good track record in deal making, whereas most other miners don't. so that is why i think those three stocks are up. >> interestingly enough, all of these mining stocks have been hurt by weakening demand from china. but the local aussie/dollar has fallen around 7% against the u.s. dollar. has that helped offset weak demand from china at all? >> absolutely, yes. the australian miners and low australian dollar means lower costs for those miners. generally speaking, the impact of that cost saving is lower than the commodity price impact. so if iron ore prices go down historically 10%, the cost from currency has been much less than the commodity price. so the commodity prices tends to be the main driver overall. >> right. >> nick, traditionally, glencore was a krader of commodities, not a miner, per se. it controls more of the supply

chain. does this deal suggest this is outright a mining company? >> i don't think so. i think the transaction will be very strongly geared towards its marketing business, which is really one differentiating factor. one of the reasons against an angelo deal is angelo has a large position in diamonds and platinum which are not commodities that can benefit from its marketing business. the kind of commodities that are due are low bulk commodities, things less than a couple hundred dollars a ton. glencore can use it contacting shipping. it blends material to eek out the last one, two, three volatile profit. $1 a ton of iron ore is about $3 billion on the top line. if glencore can get $3, $5 in iron ore, that could be up to $3 billion incremental top line on

glencore, really, versus other miners. i think the marketing is very much front and center of glencore's strategy. >> it's interesting, your point about iron ore prices. clearly those have fallen 40% this year. is this a call on iron or prices from glencore? they say we have reached the bottom in their opinion? >> there is no deal on the table at the moment. and iron ore prices tend to be very seasonal. so right now, we've come to the end of the stocking period. historically, there's been a large restocking period ahead of the chinese new year. >> year-to-date is perhaps not seasonal? >> no, no, it is seasonal. we have seen a big draw down for the last three or four years. that's been mostly on stocking. if you think that the iron ore price are come back to production ahead of the chinese new year, which i think is very possible, then i don't think -- you know, the deal takes so lock to consummate in terms of one,

two, three quarters that, you know, you can't do a transaction today and expect it to close within a few days. >> we'll continue to keep an eye out on iron ore prices. nick, thank you. for now, we're seeing a lot in the prices. of course, we are seeing a big rally in the miners today. do you think the miners are a good buy? worldwide@cnbc.com. that's our e-mail address. the european vice president is facing european lawmakers and you're looking at live pictures of that right now. we're expecting to hear what he may or may want benot be approv that job.

european markets in the red, as you can see today. quite significantly in the red. the stoxx 600 is down 0.7%. we look at the stoxx 50, as well. that itself is down 0.7%. aside from the individual markets, this weakness led by germany today which had further weak data this morning as it had done yesterday. german market down 0.6%. there are pockets of strength. the ftse 100, despite being down 0.6%, does have quite a few gainers in particular the mining stocks. france down 0.7%. italy relatively outperforming is just below flat. let's look at some individual stocks. tesco got a boost today, up 1.6%. following a report the private equity firm cbd approached the retail uk giant for a bid for its data gathering subsidiary. the deal could be worth over 2 billion pounds.

meanwhile quarterback reports say tesco suspended another senior figure after investigation into its $250 million pound of overstatement. uk listed cann energy up 10%. its joint venture partners will carry out a further evaluation to examine the extent of the source. lufthansa down almost 2% after pilots on its cargo flights will walk out. that will start tomorrow at 1:00 a.m., due to end the following evening. sanofi down 1.6%. let's have a quick look at asian markets. the hang seng in hong kong is up 0.5%. most in hong kong have gone back to work. protests continue, but much less

than they were a few days ago. samsung in korea is up around 1%. that's despite guidance, which suggests it might have its first annual decline in earnings for the first time in three years. and japan is up about 0.7%. that's off the bank of japan monetary policy on hold. bonds, ten-year treasury yields in the u.s., dipping down a bit. 2.4%. nonetheless, range bound between 2.4% if we're thinking of thinks bearishly, if they're more positive. interestingly, the ten-year german bond dips below 0.9% yesterday. it is now just back above 0.9%, a bearish signal there. let's look at forex. we've seen a bit more movement in the dollar against the yen. yesterday, in fact, the dollar declined 0.9% against did yen. a little bit further weakness yesterday, perhaps that's

because we didn't get further loosening from the bank of japan this morning. the euro/dollar, 1.2626. we'll be discussing currencies a bit later. seema, over to you. >> wilfred, coming up on the show, is coffee becoming the in you new champagne? we investigate the jump in price for our favorite morning tickle. we hear from a leading south american investors on why he's steering clear of the country and looking for its neighbors for real returns. and it could be a green christmas for u.s. retailers as the national federation forecasts strong holdings this year. we want to hear from you on weather this will be the season to spend.

a spanish nurse has become the first person to acquire ebola outside of west africa. >> if you really need to step up the response. there is no other way. we have to work on several

fronts. we need to have enough of health workers who will be present in affected countries who will train and work along local health workers to try to provide necessary treatment to those who are infected. people who are infected have to have a place to go. they should not be turned down and turned away from the health facilities. so we really need to, as fast as possible, establish as many treatment centers as possible, have a training centers. we need to have capacity. if we don't do this, we will see numbers growing even further. >> joining us on the phone from madrid is alon brock, reporter for the "wall street journal." alon, how serious is it that we've now had a contraction outside of africa? >> it's a big concern and health officials here are doing everything they can to try to figure out how this occurred. >> and what are the latest developments we've got from

there? do we have indications from the number of people that this nurse has come into contact with and what the authorities are doing on the ground to stop it from spreading further? >> there's a lot we don't yet know. the authorities are counting up how many people and trying to find how many people she may have come in contact with. the latest we happen, she was transferred to a different hospital, to a special isolation unit in madrid and she's being treated on the sixth floor there. and we're still trying to learn more about exactly what's being done. >> and alon, what are we expecting abdomen update from spanish authorities on the state of the condition of that nurse? >> we also don't yet know when they'll be giving more updates, but we expect it to be prompt and regular. >> and alon, final question, who is leading the move there in spain? is it the w.h.o. or the spanish

government? >> the spanish government is taking the lead at the moment. >> thank you very much for that update, alon. we will continue to bring you further news on that story as and when we have it. >> 2014 has been a strong year for stock commodities with about 80% up in the asset class. coffee has been the top gainer with coffee futures up over 30% this year. will the strength continue into the fourth quarter? edward george, head of research at eco bank joins us now. edward, the stock in coffee prices, we saw a price jump yesterday, up about 9% on concerns of supply constraint necessary brazil. do you see coffee continuing to move forth from here? >> it's a bullish outlook for coffee. part of the problem is that brazil is so dominant when it comes to production. we saw prices jump almost 50% in the first half of this year. in the last few days, there have

been concerned about weather in brazil and there's the election in bra zell. we saw the reaction in the markets. that pushed up the -- and that is pushing up prices. so it's not just about demand. it's about currencies. >> the dollar strength, that's also not helping, perhaps. >> exactly. that's had the opposite effect in terms of usual pushing down certain prices. sugar and cotton have been badly affected. even cocoa, the main contract for cocoa is trading here in europe. the pound has fallen at the end of september. >> presumably, people take a jump on them. i'm jump wondering if the market is lock coffee as a result of that price move.

>> we like our coffee in the morning. even if prices do go up, you find it's still been growing. what is significant is the way that consumption patterns are changing and we're seeing a huge surge in consumption in producing companies, particularly latin america. >> why did it start yesterday? >> i think it was if you like a perfect storm, the combination of factors. partly, there was a concern about brazil. it is by far the largest producer of the global market. but herd mentality that drove that increase yesterday. >> this is the highest quality coffee. it's a very kind of fine coffee.

if you've ever bought a cappuccino or a latte, you've probably had aradica. if you'd had bitter coffee, that was robusta. >> what about supply coming in from center america and mexico, could that compensate for any type of further supply constraints from brazil? >> the thing about coffee is it's many different kinds of beans. brazil produces bulk quality arabica for the market. even if they do come into the market, in a sense, they could be too expensive. >> edward, thanks very much for joining us, edward george head of research at eco bank. samsung is set for its first

earnings drop since 2011. it was warned the smartphone outlook remains uncertain. it expects operating profit to fall almost 60% below analyst forecasts. shares jumping initially in the guidance with a number of investors betting the company has been through the worst. the stocks, though, keep in mind, down about 15% year to day. samsung electronics earnings guidance for the third quarter is expecting operating profits to come in down almost 60% year on year at 4.1 trillion yuan lower than the 4.9 trillion yuan that local analyst consensus showed and much lower than the 5.6 trillion yuan reuters have forecast. revenues are looking at the 46.9 trillion yuan down 20% year on year for the third quarter. this is seen as another earnings shock for samsung from local analysts coming again from

weakness from its mobile business. this quarter, both high end and mid range models saw weaker sales. because of this, marketing costs have to go up. these two factors seem to have been the main factors for the weakness in the numbers. and smartphone sales, which used to be more than 65% of samsung total operating profit is now at just about 52%. so this is coming from competition between apple's new models and other chinese smartphonemakers planning their release in the quayan markets in the near future. outlookwise, as well, samsung electronics sees the weakness in its mobile business continuing on, even through the fourth quarter.

>> apple is at the highest and has to continue to defend its margin. it makes the components from smart to finish and that gives it much more versatility in the market. there's a lot of competition coming on and it doesn't have its own operating system. >> right. >> we'll talk more about samsung later, but for now, bp advanced technology has filed for bankruptcy sending shares down over 95% in after hours trade. now, it could be a green christmas for u.s. stores. the national retail federation is predicting holiday sales will rise 4.1% this year. that would be the largest growth in three years.

matthew share will be on "squawk box" so break down the holiday forecast today at 7:30 eastern. we want to hear from you on this. will it be a green christmas? will you be spending more this holiday season? it's never too early to start talking about christmas, right? tweet us @cnbcwex or our handles on the screen. and back to the main story today, this is a live shot from madrid where the director general of public health is delivering a press conference after the spanish nurse contracted ebola. we'll bring you more on that when we have it. now back to chris wattling, ceo of long view economic. chris, i noticed in your notes you said we're closer to the end of this pullback than the beginning of it. >> absolutely, yes. it's interesting. we forget that this pullback in

europe started at the end of may/beginning of june and has been playing out for quite a while. what we've seen is we've seen quite a lot of fear come into prices in the short-term. our models have moved from a couple of months ago to delivering a nice buy message and a panic coming back into prices. only in march, everyone thought europe was the most amazing market to be involved in and the euro is at all-time highs and everyone was long. suddenly, everyone thinks europe is a complete disaster, you have to sell the euro, all betts are off. of course, you've had ukraine and so on. the reality is european growth is okay. not exciting. u.s. growth is good and has momentum. and, you know, china is a real concern, but it's sort of just about holding in there. so, you know, in prices, i think we'll get a proper low in october and we rally into christmas. >> if we take a quick step back from some os of this panic factors, what are the main

factors in your eyes to drive markets? >> to my mind, markets are driven by positioning. and the stories that seem to move markets. i think what we saw by the beginning of this year are portfolios. ewe contain was one of the tr k triggers. >> how did so many investors get it wrong? >> you'd have to ask them that. i don't know. ukraine was a -- factor. clearly that affected some of the data in europe. i think the european recovery is intact still. i don't think we're moving into a special time in europe.

what you expect is low trend growth. >> equities or in bonds? >> i would be in equities at this stage. i think bonds have had their best this year with stellar bonds. >> and which equities in particular? emerging markets? >> no. i mean, i believe the dollar is in a sustained uptrend. in that environment, you don't want to own emerging market assets. you want to owner western equities. in my view in the last stage of the economic cycle, maybe the last quarter, it's a place where you concentrate portfolios down to western equities and not the key asset chas. >> it's interesting when you look at the emerging debt market, because of the prospect of rising rates in the u.s., that's resulted in some outflows of emerging market debt. do you think that trend will continue? >> i do. i think we've had emerging market asset performance, bond and equities. interesting, you look at things like emerging market, bond

spreads, corporate bond spreads, they're correlate highly. all of those are trending up. we have the fed now talking about raising rates. >> do you think u.s. stocks have further to go up? >> i do. clearly it's going to pause, in my opinion, because it's moved so quickly so fast and everyone is in. but i think the trend is up. we need to think about the relative monetary policy in the different key residence of the world, too. >> chris, thanks very much for joining us, chris wattling, of long view economics. still to come on the show, the bank of japan's koroda says the bank of japan is solid. we've got your central bank watch coming up next. your customers, our financing. your aspirations, our analytics. your goals, our technology.

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rio tinto rallies after news of a takeover bid from glencore. is the worst over for samsung inspect shares in the south korean electronic space higher despite guidance

suggesting the first annual fall in earnings since 2011. a spanish nurse becomes the first person to contract ebola outside of west africa as president obama outlines plans to screen travelers for the infectious disease. ebola is a very serious disease. and the ability of people who are infected to carry that across boarders is something that we have to take extremely seriously. and we just got data out of the bank of lenders. down a fraction, but not really making much difference. the demand for credit to sell in q3 whereas demand from larger firms increased. the industrial production data, i think, is out a bit later today. it is already out. we're just going to bring you

that, as well. as you can see, sterling/dollar is basically flat. industrial production data we are just bringing you now. it has come through at zero percent for the three months. for august, industrial production came in at 0.0% month on month and plus 2.5% year on year. no significant move in cable off the back of that. european markets in the red today across the board. that's been led lower by weak german data. ftse 100 slightly outperforming because perhaps of the mining sector which had some m&a activity. france down 0.8%. the stoxx 50, let's take a quick look at that, is down 0.8% as you can see. >> let's take a look at treasury market. we did see some movement in the

bond market after we got that weak data out of the eurozone. in response, we saw the yield price slightly lower. the bund yield at 4.9% below. 10-year gilt at 2.3%. we're going to keep an eye on italy, of course. a make or break moment for matteo renzi. and a look at the currency market, after we got the results from the bank of japan, we've been keeping an eye on the dollar/yen trade. the euro weakening against the u.s. dollar on the back of weaker than expected economic data that we got out of germany today, sterling/dollar, slightly higher and the dollar/swiss

franc up 0.23% for traders. >> for august, those numbers basically came in in line with expectations. now, a number of reports suggests tesco will send in another senior official. tesco has declined to comment. catherine is joining us now with more on the story. more woes for tesco, catherine. >> yes. it's still very much as expected a revolving door. this seems to be into a much broader focus on corporate governance at tesco after the scandal. let's not forget we've seen four executives suspended in the uk business with suggestions that they effectively tampered with to make tesco's profits look higher in the uk than they, in

fact, were. what's next for the tesco board? the head of the executive director is trying to talk to share hold erts. there's been a lot of focus in the past on high level retail experience there is on that nonexecutive. and then, of course, there's a lot of focus on the position of the chairman to richard, shareholders he has spoken to have said some think he's eventually going to have to go because they're going to have to be cleaned. if it turns out the scandal did, in fact, happen. on the other happened, there's other shares holders that think he's been there for two years, a new chairman, a new chief executive officers and all this would be too much leadership change at the top. the other thing is what does this mean for the dividends?

there's a lot of big uk institutiones and tesco probably may have to redo its dividends. we've got possibly growth margins trying hard to compete in price. so that's something i think that a lot of shareholders are looking at at the moment. >> catherine, do you think in order to win back the confidence of shareholders tesco does have to make some dramatic changes to its management team? >> very much. i think that's coming across in the feedback from shareholders. this after the real feeling that tesco has stretched itself too thin in the past few years, going with things like banking and insurance and all sorts of businesses which are not really its core model haven't really helped. but it's kind of fallen mind in the uk retail landscape. it sort of hasn't positioned itself properly for the consumer to really kind of continue to keep going there and continue to keep standing there. >> catherine, thank you for bringing us the latest, a stock

we are watching down about 50% over the past year. the bank of japan has kept monetary policy steady saying the economy continues to recover moderately, that it has revised down its assessment of the output. the bank of japan koroda ensures he will measures if needed. he intends to closely monitor the economic impact of a weak yen. the currency fell to a six-year low against the dollar last week. recent economic data shows the economy is still, in fact, nation territory, industrial production slumped nearly 3% in august. household spending continues to record negative readings, leaving a fragile situation ahead of the next sales tax decision. mark matthews is joining us now. mark, quite a significant decline in gdp there, down 1.8%. that's not an easy amount to recover. >> i suppose that the economic data has not been what we fans

of japan, and i must count myself as one would have liked to see. but there's a lot of other things going on in japan which mitigate that and explain why share prices have held up. i won't go into details, but there's a lot of corporate reform. even if, you know, the third arrow hasn't been as strong as we would have liked on the corporate side, big companies, be they panasonic or hitachi or sanyo, these kind of names are actually shaking up a lot. that's what's driving the index along with the weaker currency, in my opinion. >> mark, what do you think is the biggest challenge facing the japanese economy right now? is it the aging population, the low birth rate or in general the low deflation? >> i think it was the currency. because, in fact, the birth rate, the fertility ratio has been rising since 2006 and is now higher than hong kong, korea, germany, singapore. japanese women are having more

babies. that's something a lot of people don't really realize. so i'm not too concerned about the aging population. i think i'm concerned about now that the currency has weakened, that's helped a lot, just the general inflexibility of their society. when you go to japan, i don't know if you've been, it's a lovely place, but the reason it's lovely is because they don't let other people in. so if they really want to put themselves back on the map the way they were 20, 25 years ago, they're going to have to let other people in. i don't really see that happening, which is unfortunately. >> mark, you don't think this is a big issue. yes, there might be a rising birth rate, but that will take 20 odd years to see through to the economy. and the working age population is on the decline more significantly perhaps than any other developed nation. >> you know, i won't say it's not an issue, but when you go to japan, another thing you'll realize is most people are older than you.

they live longer than we do because they have a much less stressful life. i don't know why. probably because their culture is so nice and they eat a much better quality food. so they don't die of all the same terrible heart diseases and strokes that we do. although they are getting older, they're not dieing and they're still working. so, no, i don't think the aging is a problem. anyway, they're making up with that with tremendous strides in robotics and other forms of technological advancement like driverless cars, for example, and various other things. so it's not an issue. >> we are moving on do you know now to the reserve bank of australia which kept its -- for 30 meetings in a row leaving monetary poolz unchanged at 2.5%. it maintained the aussie dollar is still too strong for comfort. they introduced no new policy measures to the disappointment of some analysts.

mark is still with us. is the currency move much too much? still 2.5%, significant interest rates differential to the u.s. and the aussie/dollar has fallen about 8% since last year and about 0.7% in the month. >> the aussie/dollar was like the canadian dollar, linked to china's seemingly voracious appetite for commodities. now we can see very clearly the acceleration in that appetite, particularly in the case of ought trail ya for iron ore that goes into steel. it's intuitive and sensible that their currencies should decelerate. and i think the major change in terms of their policy statement today was that -- i'll quote the governor, the australian dollar is high given recent declines in commodity prices. that's the first time in a few months that he's started trying to talk down his currency again

and making specific references to the falling commodity base. so, yeah, i think the australian dollar will go lower as their trade deteriorates and they should. it's chinese appetite for the kind of commodities they produce. >> australia has been hit with weakening demand. how big a factor is that? >> clearly, it's back on their radar screen. as i said, basically since around may, they had took away the reference to the currency being too expensive. now i see it's back in. what's interesting is australia has a two-tier economy. even though the exports have been hit by these lower commodity prices and less commodity demand from china, at the same time, they have seen a pick up in inflation.

their property sector is still flying and those are concerns for the central bank. so there's a tight line they have to walk. >> all right, mark, thanks as always for your view. that was mark matthews, head of research of asia. coming up on the show, forget brazil's post election rally. we hear from a leading south american investors on why he's steering clear of the country and looking to his neighbors for real returns. how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

you're looking at a live conference from madrid. where a nurse has contracted the ebola virus. meanwhile, president obama says the u.s. will increase screenings from incoming flights and from those from africa to detect ebola. the president is resisting calls to impose bans on people traveling from the three countries most affected by the virus. >> we're working to do additional -- both at the source

and here in the united states. the chances of an epidemic here are extraordinarily low. nbc's tracie potts joins us from washington. tra tracie, is it foreseeable in the future restricting travel? >>. >> seema, that's not the direction the government is going right now. what they're focusing on right now is a more targeted effort to try to keep this virus out of the united states. and president obama says that they're going to beef up what they're already doing at u.s. airports. we've seen the screening, the temperature taking, the question heir

questionnaires that they're doing for speak leaving south africa. we've seen some of that at some of the major airports, o'hare, dulles, jfq in the new york area. those are being considered at this point, mean putting cdc officials on those sites to conduct the primary and secondary screening. it's something the government says may need to happen to, again, double down and ensure that cyrus doesn't come into the united states. we currently have two patients being treated here, thomas duncan, who was the first case diagnosed inside the united states. he's now in critical condition and he's being given an intrimtal treatment. also our nbc cameraman, freelance photographer, he's in a containment unit in that nebraska hospital now, also being treated. president obama says he wants to do two other things.

he wants to make sure that health care work verse more information on what to screen for and pressure other large countries to step in. he says they can't count on the u.s. doing it alone when it comes to sending resources to africa to try to contain the virus there. seema. tracie potts, thank you for that. brazil's main stock market rallied nearly 5% yesterday. that's a big talker today, the biggest one-day rise in nearly three years. this after the first round of election results for the president on course for a runoff with the arc rival. investors hope a challenge from the pro business candidate will put the latin america economy back on track, but our next guess is less certain. he says the market reaction may be overdone. the indian stock market rallied

on hopes the new leader will provide change and bring reform. you don't think a leader can do the same for the brazilian market. why is that? >> let me recap what happened. we went into the election weekend, but what is seen as the weaken bidding her by 15 percentage points. so it's easy to predict political outcomes and political results. we always think it's the best way of undermining the long-term investment strategy. pa zill is a big cup, it's culturally complex. whoever wins this election is going to end up with a challenging situation, but it's not going to be solved overnight. so our perception was the market reaction of yesterday was a big surprise, it was a big surprise for anybody, but it's not something that is a very sustainable long-term. >> what are the big plans? >> well, for example, we just had a drop in the commodity

prices. iron ore is down 50%, 60%. soybean prices down 630%. brazil remains an important commodity exporter and it depends on those kinds of price. so the reduction in the price of the commodity sess going to affect the counties. it wasn't really not growing as fast as the two have grown in the favorite economic terms we're having. >> and the kind of commodity prices, surely that affects lots of latin american economies equally. >> absolutely. we think it's a changing environment. we want to be in countries that are nimble enough to react to this changing environment. some will react to this and it comes with certain factors like depreciating currencies.

they're fighting against very much, much higher production costs. this precision of currencies will make them more profitable and more able to sustain lower commodity prices. >> let's stay with the energy theme here and talk about hydro power. i believe peru, there's a hydro power plant union group is investing. can you touch on that? >> yeah, sure. as we're preparing for a cycle in the future, we need to address both opportunities, infrastructure investment. no, we are not going to be able to take advantage of the higher prices if we don't have structural requirements. power generation is a necessity tore any mining operation. we're investing in areas where we see a big lack of capital, higher returns and interesting investment opportunities. >> you don't want to be too much at the beck and call of what governments are doing, but frut

perhaps pore than any other senter does rely a great deal on government directors. why are you so -- because the framework that we were able to obtain for such investment in a lot of discounters like peru, columbia, upper reforms, preisisly what you are saying. this company needed to address the framework to allow investors to have long-term investment and generate long-term returns in a political safety environment. so i think the local discounters has the framework but did not get the investment. >> that's why you see peru as one of those favorite investment when you look at south america? >> peru has done all the appropriate reforms. it's growing quickly. it has a strong local population, will increase purchasing power and is one of -- in the next year. >> and when you go around mcing trying to raise money for investors, which areas of the world are most interested in

investments? >> i think today obviously, the capital in asia. we have european investors that are worried. to get the products, soft commodities and the culture is a big example. the demand the position has made. it is a reality on the ground. they know latin america is very well positioned to take advantage of that asian demand. so we are raising a lot of capital in asia in the last few months. we expect this to be a good source of capital for the infrastructure and the commodity instructors we have to make. >> juan satori, thank you so much for your time. and we just want to bring you a flash ahead of public healthy bowl la patient's husband is also in quarantine. we'll brimg you any more when we get it on that story.

the italian government is expected to call a confidence vote today. it could pull back employee protection laws. the italian minister is expected to meet with trade unions. ma tateo renzi could face a vote in the senate as soon as wednesday. the government at catalonia says it will decide whether to hold an independent revolutionary dumb in september. the same has called the course illegal. it is a process which could take months or years. ackman could take the reigns as chairman at the bank of sigh kyprus. and stay tuned because wilber ross, chairman and kre o of w.l. ross and co.will be

joining us on closing bell. yara international has fired its ceo and says it will continue its talks with norwegian industries. the ceo is no longer the right person to lead the company and its cfo will take the helm. he was set to retire next year. shares are trading down around 1%. and it could be a green christmas for u.s. stores. the national retail federation is predicting holidays sales will rise 4.1% this year. that would be the largest growth in three years. mean while, online sales could rise well above the 8.6% growth last year. matthew shay, president and ceo of the national retail federation will be on "squawk box" to break down the holiday forecast. it's never too early to talk about christmas, is it, wilfred? and we want to hear from you. will you be spending more this

holiday season? nick is tweeting in, brick and mortar executives asking to push it up so they can squeeze more sales. if you want to join in on the conversation, e-mail us, cnbc worldwide -- >> worldwide@cnbc.com. come on, seema. >> thank you, wilfred. will you be shopping here early in christmas? >> it is cold and wet in london. the summer is over. all we can think about is christmas. >> do you know what you're getting your mom? >> i don't yet. i'm excite bd christmas even though it's a long way away. and still to come on this show, how far can the u.s. dollar go? the greenback goo go as much as 1.20 versus the yen. >> changing the way you think of retirement.

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. welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. weak data out of germany. mineny stocks rally after rio tinto revealed it rejected a mega merger with glenn core. and president obama outlines plans to screen travelers for ebola. >> ebola is a very serious disease. and the ability of people who are infected to carry that across boarders is something

that we have to take extremely seriously. >> is the worst over for samsung? shares in the south korean electronic giant trade higher despite guidance suggesting the first annual fall in earnings since 2011. u.s. retailers could be in for a green christmas. the national retail federation is predicting online shopping jumping 11% and overall sales up 4.1%. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. stocks right now here in europe, trading lower. we did see u.s. markets retreating yesterday. traders he i speak to are staying cautious ahead of those fomc memberships. the process of rising rates are higher. >> on friday, we had good news out of the u.s. pushing markets

higher. the last couple of days we've had bad news out of europe pushing markets lower. for once, the more correlated with the nud and the fundamentals rather than the opposite which has been the case in recent months. certainly over a couple of days, but quite an interesting factor to look at. >> great trend. markets implying a lower open, dow jones down about 80 points in free market trade, nasdaq down about 20. s&p 500 following suit. this coming in ahead of what we will be hear from a different different fed speakers. plus third quarter earnings kick off on wednesday. alcoa expected to kick off -- excuse me, premarket trade. the ftse global 300 index, currently trading lower down about 4 points after what was a rebound in yesterday's session. let's dive into the individual european markets following a weak session in asia. european stocks for the most part are trading lower, down about 1%.

the ftse underperforming here -- outperforming, excuse me, when you take a look at the ftse 100 and being helped by some of the mining stocks. still down about 50 points in today's trade and on that note, take a look at some of the miners. a top story, rio tinto has a yield, a rejected takeover approach from glencore back in august. rio tinto shares are leading the ftse 100. glencore is trading higher while the news has lifted other mining stocks, including bhp slightly flat. angelo american trading higher by 1.3%. glencore has not ruled out its fresh approach, this according to its sources. money stocks very much in focus. deal talks, bearing a hope that a deal could come into fruition down the line. despite big moves and european

cat stocks in the 50, that's stemming from negative data, particularly out of germany. germany had bad data yesterday, bad data today. that pushed the yield down below 0.9% yesterday. the ten-year u.s. treasury has picked down a little bit. it's been range bound and the bottom of that range is slightly bearish relative to the last three weeks. let's look at forex. the u.s. dollar has been paring ahead of basket currencies in the last few months. the euro/dollar is at 1.2627.

aussie/dollar bounced back a little bit, 0.8791 and cable 1.6076. seema. >> wilfred, our next guest says the u.s. dollar has a lot of room to appreciate. he forecasts dollar/yen could go back to the mid 200 level. while the euro/dollar, close to parity. if you take a look at what money markets are pricing in right now, the two-year yield for japan and europe is about 50 or 60 basis points. if you take a look a at what they're pricing in two years down the road, we're looking at something north of 200 basis points. and the reaction in the market has been pretty much in line

with what they're pricing in currently at the moment in two years, ten years. but as you say, well, the markets are thinking that the spreads are going to be much wig wider, where historically do the spreads take euro/dollar and dollar/yen and the answer is a lot further than where we are now. and basically, money markets are suggesting that the u.s. european threats will be the widest since the 1998/'99 u.s. against japan, the widest since the mid 2000s. so the implication is that we could be close to the highs that we saw over that period. so it's basically saying, markets are pricing in where we are now, but they're not pricing in where we expect to be two years from now. >> and do you think we're moving back to a world where it is spread interest rates differentials or .textation driving currency markets moving forward as opposed to fundamental outlooks and the

quantity of money moving around? >> well, i think the differentials after a long time, actually, are reflecting the fundamental outlook in the sense that, you know, there's some concern that abe-nomics isn't going in the direction that was expected to in the japanese recovery with the sales tax increase. the idea is that the interest rates will reflect the divergentsies. the bank of japan has left monetary policy steady, steven. how do you think the yen will move from here? it has been appreciating against the dollar for at least a couple of years now. do you think it will strengthen at some point? >> well, i think what we're seeing is a little bit of short

squeeze. there were some comments out of mr. abe overnight talking about smaller companies being hurt by the weaker yen. but if you look at the japanese economy, given their structural issues, given the sales tax increases that they need in order to get their house in order, they do need more stimulus. the easiest and most likely direction of stimulus is more quantitative easing. so they may not be talking down the yen, but the implications of their policy needs are that the yen, you know, will go significantly weaker. >> all right, steven, stay with us. we want to continue our discussion around currencies, that's steven englander. let's give you a look at the

rundown, what to watch this trading day. august consumer numbers are out at 3:00 p.m. eastern time. minneapolis fed president nariah kocherlakota as is new york's bill dudley. for earnings, international speedway and yum brands. >> there are many who love to give their opinion. >> but it seems like every single day we look ahead to someone speaking. >> well, it's important time, especially because we're expecting rates to rise at some point. everyone wants to hear their commentary. >> we've got the bank of england speaking tomorrow, as well. let's take a look at today's other top stories. a spanish nurse has become the first person to contract ebola outside the united states. nbc news's tom costello sent this report.

>> on the front lines of the flagz's emergency medical system from ambulances to hospitals, clinics to laboratories, ebola has suddenly taking on added urgency. in new york, 911 dispatchers are now asking callers if they've been to west africa 37 paramedics given extra training. >> this will allow us to have a heads up that someone possibly has been exposed to the ebola virus. >> in mote row chicago, cook county health officials have sent this notice to ers, laboratories and for months they've been sending flow charts to 5,000 hospitals nationwide. now with the dallas case in the news, ebola is suddenly very real. >> we are hearing from different clinical groups that they don't feel prepared. they have more questions, they have concerned. >> there was confusion at new york airport this weekend as passengers were kept on board tore two hours as the cdc responded to a man with ebola-like symptoms.

>> they clearly frankly made it up as they went along. >> were you concerned at any point this was something more serious? >> no. i just thought it was incompetent. >> the cdc is watching several cities with large west african populations, dallas, providence, new york, philadelphia, and washington. including a patient at howard university last week who was quickly assessed and cleared. the chief medical officer says he's more worried with flu season than ebola. >> there are thousands of patients who die every year of influenza. but we don't have the same kinds of concerns about influenza that we have about ebola. >> since july 14th, hospitals nationwide have reported 135 instances to the cdc of people thought to be potential ebola patients because of their symptoms and their travel histories. 40 of those since just last week. so far, only the dallas case has proven to be the real thing. coming up, we look at

samsung with first quarter earnings expected to drop 6%. we discuss the challenges in the smartphone market. stay with us. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

welcome back. u.s. futures are pointing to a negative open as europe kwan shares slump on weak german

data. president obama announces plans to increase screenings for the ebola virus in u.s. airports. and it's beginning to look a lot like a merry christmas as the national retail federation sees sales at a three-week high. and a big story today, samsung electronics is set for its first annual earnings drop since 20111. the company has warned the smartphone outlook remains uncertain. samsung said et expects operating profit to fall below 6%. competition is getting even more fierce in the smartphone space now that apple has unveiled its larger screen. >> smartphone is still very,

very important for samsung. that can start to take up a bit of a slacker in smartphone areas. it's spending about $15 billion in our plan in south korea. sam suck electronics earnings guidance for the third quarter is expecting operating profits to come in down almost 60% year on year at 4.1 trillion yuan lower than the 4.9 trillion yuan that analyst showed and much lower than the 5.6 trillion yuan that reuters are forecast. revenues are looking at the 46.9 million yuan down 20% year on year for the third quarter. this is seen as another earnings

shock for samsung coming from weakness for its fourth quarter business. these two factors have been the main factors for the weakness in the numbers. smartphone sales used to be more than 65% of samsung's total operating profits is now at about 52%. finding their release in the markets in the near future. >> themaker of sapphire glass has seen it almost double in the

run up to the appear launch of apple 6. et could be a very merry christmas for u.s. retail stores. holiday sales will rise 4.11% this year. meanwhile, online sales could rise above 11%, well above the 8% last career. >> we want what hear from you on this. will it be a green and merry christmas for the retailers? will you be spending more this holiday season? if you want to join the conversation here on "worldwide exchange," get in touch with us by e-mail, worldwide at cnbc.com, via twitter @cnbcwex.

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both reuters and dow jones reporting a plea of guilty came on the 3rd of october responding to a conspiracy to defraud, of course, relating to that libor investigation. the report says that the court doesn't allow the identification of the senior banker's identification. traders saying they're being kaus cautious ahead of the release of minutes of the federal reserve on wednesday. right now, the markets indicator a lower open. kansas city fed president esther george says the central bank must be vigilant on inflation. he says the rates are relatively stable. george says that measures such as food, energy and rent are bearing down on consumers. he has consistently called for tighter monetary policy even as

the fed has boosted its stimulus in years. the rba has voiced concerns over the housing market in sydney. steven englander at citi, given the rates are still at 2.5%, well ahead of where the u.s. is and where it should be for at least a year or two, why is that inspect. >> there are a couple of factors. i think that the -- if you take a look historically, it's not just conditions within australia. it's basically global liquidity conditions. we've had volatility pick up globally. we've had some pullback in risk appetite. we've seen pressure on high

yielding and part of the sector. it's down to react to these sectors. i'd say the other party, and it wasn't australia a month ago, australian corporates have to be careful where they're going. they feel they're under a lot of cost pressures, and with the commodities sector declining, they're going to be doing cutbacks over time. so. >> steven, i wanted to move away from the aussie/dollar now. move back to the euro and the yen. when an economy is weak, we always talk about them wanting to have a weaker currency to help with exports. is there a point in which the currency is weakened too far? >> i think you can see that point when long-term interest rates begin to go up as the currency appreciates.

you're paying a steep prior to price for competitiveness. i think as a generalization, currencies move not because they're so effective, but because they're ineffective. i think if you lose control of the long end of your bond market, you don't get much in your appreciation. >> and you just touched on the euro and the yen. but at what point does the euro and the yen because the -- multi nationals could be hurt by the threatening dollars. >> outside of commodity prices, you don't see that much of an impact. similarly, will you look at domestic demand and gdp growth, the difference being the export

performance, you never have is a recovery that -- driven by exports. i think it's secondary. i doubt the fed will do much with it. >> as we look at the stoppinger dollar, is that a babb for equities or is there a chance that some of those currencies will shrug it off. >> i think the world's best risk for investments that are attractive, high yielding investments, i think we've seen some some cases, you talked about the brazilian elective before. if there's a hope that there's going be structural reform, as we've seen in india, as we've seen in mexico, bra zell, investors are desperate to get that kind of return in an attractive investment environment. so i don't think you can see gm is going to be blanket under

pressure, but there will be a lot ooh differentiation in terms of policy. >> steven, thanks very much for joining us today. much appreciated. still to come on the show, santa looks to deliver christmas cheer. strong holiday sales this year. we want to hear from you on whether this will be the season to spend. very standard. and that became our passion. to always build something better, airplanes that fly cleaner and farther on less fuel. that redefine comfort and connect the world like never before. after all, you can't turn dreams into airplanes unless your passion for innovation is nonstop. ♪ unless your passion for innovation is nonstop.

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welcome to "worldwide exchange." i'm seema mody. >> and i'm wid fred frost. the u.s. plans to step up screenings at u.s. airports against ebola. and is the worst over for samsu samsung? shares in the south quayan electronics giant trade high erdey spite guidance suggesting the first annual fall in earnings since 2011. u.s. retailers could be in for a green christmas. the national federation suggesting sales could hit a new three-year high with online shopping jumping 11%.

>> you're watching "worldwide exchange," bringing you business news from around the globe. and if you're just tuning into "worldwide exchange," thank you so much for joining us. futures end lower in yesterday's trade what's laying in sentiment. that's something to keep an eye out on. third quarter earnings will kick off yesterday. appear lists expect a 6.4% jump. we hear from alcoa, yum brands, as well, tomorrow. let's take a look at european markets following a weak session in asia, european stocks trading lower across the board. the ftse outperforming its shares being held by some of the miners. including rio tinto that it did reject glencore's offer. germany, underperforming.

italy in focus ahead of that italian confidence vote. a make or break home for renzi. you see the italian markets down will 4% on the day. currently down around 1% or 33 points. wilfred. >> we get our first batch of earnings out of the u.s. on weapons, we have the unofficial start to earnings season, as well as costco's q4. later in the week, peppily ko, family dollar and infosys will report. as chinese demand for fast food wanes on the back of a food supplier scandal, how will it impact yum brand earnings? the company expects a 13% sales decline in its most important market while its u.s. operation

lagged. let's bring in stacey who joins us in studio. stacey, weakening demand from china, that's a concern for the mining company. it's a concern for retail and now even the consumer company. >> it's a concern for everybody from luxury to fast food. we've seen these stories. this year, we have another supplier telling us maybe they're mixing a little old meat with the new meat so the cop assumer over there is very frightened and staying away from particularly chicken. yum is down 13% in china. >> despite those concerns, it's still a big market opportunity, no? >> it's a huge market opportunity. the consumer over there is incredibly strong with the emerging market class. the opportunity is to look forward and say, okay, if the

supplier shocks were solved which the companies are working hard on with the company control look forward and look at the opportunity of the franchise in china. >> what kind of price cuts are they going to have to offer consumers? >> you're looking at the company saying, okay, traffic isn't recovering as quick as they thought. what they going to do to get things moving into the fourth quarter? is it going to cost them more money obviously with the side chain issues and to get the consumer back in the store, it's going to cost them in terms of the bottom line. >> and let's look at yum foerchs at home in the u.s. how are they fairing up against this trend? >> everybody has been under pressure. you look at mcdonald's comps, down over 3% last month. if you look at sort of the

landscape of chipotle, even burger king offering healthier on options. and the other trend you're seeing is everybody is ooufrg breakfast now to get more and more traffic in the store. taco bell has recently launched breakfast, which has helped them, but probably not as much as we would have expected. >> stay with us. we'll come back to you in just a moment. it's like looking like it might be a green christmas for u.s. retailers. kate rogers is at cnbc headquarter with more. >> good morning. we're a mere seven weeks away from the official start to the holiday shopping season, black friday. so it's never too soon to start making your list and checking it twice. the national retail federation says sales will growing to about 617 billion. that is the highest increase since 201 is as the improving

economy may give shoppers the need to splurge a bit more. online sales could grow as much as 11% this year. but industry watchers say retailers will still have to offer steep discounts. matthew shay, president and cro of the nrf says it goes without saying there still remains some anxiety among consumers. while consumer spending has been rising the labor market remains uneven. but the increase in jobs hasn't trants lated to bigger wage gains. average hourly earnings up last month and up 2% in the last year. the back to school season was the slowest since the recession since 2009. spending rose just shy of

forecastes and slower traffic fell more than 4% in july and august. u.s. retailers play hire more than 210,000 workers since 1999. walmart plans to hire 60,000 seasonal workers and u.p.s. will boost hiring by as much as 73%. back to you guys. >> a bullish report from kate rogers. and interestingly enough, consumers may be more willing to spend this christmas season. does that give us a view of the consumer's thoughts on the economy. >> it may be better than last year. last year, we had six fewers shopping days, terrible weather. but the street is pushing the story that inventories are in line, margins will be up the second half of the year. i'm not necessarily sure i believe that margin part of the story here. i think sales will be better,

but what we've seen in the past several years and consumers wait longer and longer. we were just talking about the fact that christmas is full on in the stores already. everybody waits for the promotions and the last-minute deals. they are trained to do that. i think margins will once again be under pressure. >> overall sales are expected to be up 4%. but online sales could be up 3%, 8% and 1 is 1 %. could this, in fact, be bad trend for the traditional retailers? >> that's the problem here. how much of their business is going online? for some retailers, it's 30% of their business. so they have to balance clothing stores and investing diop line. and they're giving away all they freebies, free shipping, extras and in order to get the consumer to shop online at their site. again, margin pressure.

>> i love christmas. >> 80 degrees in europe until today, of course. >> thank you very much for joining us. the national retail federation will be on to break down the group's holiday forecast at 7:30 a.m. eastern. and we've been asking you about this, will it be a green christmas? will you be spending more this holiday season? jeff saying holiday spending would be way higher if more people were employed. i will only spend as much as last year. while ken says he doesn't see any increase in christmas spending, help their costs rise and leaving less money formerriment. if you want to join in the conversation, tweet us. president obama says the ebola threat has to be taken

seriously and plans to step up the virus in u.s. airports. we'll bring you the latest on that story after the break. .

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samsung electronics is warning of operating profit falling almost 60% below street estimates. shares of the firm dropping initially on the guidance with a number of investors betting the company has been through the worst. down about 60% year-to-date. thank you very much for that one, seema. moving on, let's take a look at today's other top stories. kansas city fed president esther george says the central bank must stay vij leapt on inflation. gormg says certain measures such as food, energy and rent are bearing down on consumers. they've called for tightening monetary policy. in the last half an hour, a senior official plead guilty to libor manipulation. the courts has not allowed the

identity of the senior banker to be released. former ceo hank greenberg is challenging the terms of the 2008 rescue, claim the u.s. government beat shareholders out of $40 billion. hank paulson defended the bailout saying the public saw aig as the poster child for everything that was wrong on wall street. at&t has the old said an employee got access to personal data. u.s. authorities have been notified about tint and the employee has since been fired. the news follows breaches at jpmorgan, apple's icloud service. president obama says the u.s. will increase screenings of

passengers for incoming flights and for those from avenue could to detect ebola. the president is resisting travel bans from countries most affected by the virus. >> at the source and here in the united states. the chans of an outbreak of an epidemic here are minimal. tracie potts live from washington, what can we expect from the white house on the ebola threat today? >> three things, seema. the president wants to crack down on people coming into the united states from other countries, especially these west african ken countries, but some of the cups that they're traveling through. so we may now see cdc officials

at some of the major international airports, dulles, we understand, jfk, new york, chicago's o'hare airport, we may see health officials there taking temperatures, asking probing questions, looking for people who appear to be sick. also, the president wants to get the word out to help workers in this country. the fed don't have a lot of room for error. they saw that happen in dallas when thomas dup can came in and was not initially screened for ee bale la. he had just come from west africa. they want to make sure that doesn't happen again. finally, the president says he wants to put pressure on some other large countries to pitch in and help contain this outbreak in west africa. the pentagon is sending 3,600

troops. the cdc has presidents on the ground. he's going to start putting pressure on some of our allies to put more resources in africa. the european union anti-trust regulators are challenging luxembourg over tax deals. we're just learning the eu is saying amazon's probe is focused on a 2003 tax deal in luxembourg and most european profits are report in luxembourg, but not taxed there. we'll continue to keep an eye on this developing story. and we're going to go to a break sharply, but before we go, u.s. futures are point to go a negative open as european shares slumped on weak european data. president obama announced plans to increase screening for ebola virus. and it's beginning to look a lot

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welcome back. let's have a look at european markets. mining stocks are doing well on top of a glencore takeover for rio tinto. the german market down 0.75% after further dey data is out today. weaker than expected data out of germany seems to be weighing on u.s. futures, as well. third quarter earnings ticking off, as well, this week.

let's get you a look at the rundown. minneapolis fed president maria kocherlakota and bill dudley from new york. as for werings, international speedway and yum brands. >> let's talk about earnings season. let's talk about the u.s. dollar perhaps benefiting airlines, which have been benefiting from lower food prices, retailsers, as well. do you see the u.s. dollar helping companies this earnings season?

>> for the multi nationals, that's going to mean they're going to throw a wet blanket on top line growth as well as the bottom line. you can start to see s&p earnings republic revision well below expect ages. chad, improving economy, growth in jobs, low inflation, is that a reason to stay bullish on stocks or is valuation a reason to stay clear? >> well, valuations are a modestly overvalued to a certain degree. the overriding is concern, though, is global growth. as you can tell by the german economic data that came out this morning, it looks as though it's grinding to a halt around 0.5% to 0.25%. you can see it in the overall sovereign debt market in the eurozone.

that is a troubling sign. you could see earnings growth here in the united states of roughly about 6% to 5%. and revenue growth is pretty much around 2%, a little below expectations. >> as we head into earnings season, will positive fundamental data be positive for the markets? but, of course, past months they've been the other one arched. >> as good news has been good news now. as the fed starts to slow down and curtail their liquidity program, as we can tell, and as well, i don't generally think the federal reserve and they've pretty much given the signal, they will raise rates in 2015. but the futures market is expecting a roughly 50 basis points increase. that is far dicht from what

their expectation is when they came out over the course of the last several weeks where they think about fed funds llg to 1.pa%. so the general course of the market is also around 5% to 6%. so if h the longer data concerns that we have is that global growth is tumbling here and the deflationary trend within the euro scope is somewhat of a concern. what we would expect is that the ecb will more more aggressive over the course of the next six months and perhaps do nonsterilized qe. they're going to need to get the dollar down from perhaps 115. that's perhaps the only lever heavy to pull to stop that deflationary force.

>> let's get stock specific. in the u.s., you're in favor of in of the older tech names, but a lot of these stocks have been rise i rising. >> no. the thing about these mega cap old world stock names is they have a couple of things going for them. they're very happy relative to the overall market. they're consistently profitable, they have very little ded debt and we believe that perhaps the capital spending cycle is slowly starting to kick in. and we're hoping that over the curse of the next 24 months, that will accelerate. so in the names like ibm or cisco, cisco systems, you happen, we have a price target on cisco of $30 a share. that is a very, very cheap company. you could find a tremendous amount of value there within the

mega cap old world stories. walmart, t.j. max, we believe that oil prices are coming in, that consumers will have more disposable income. a walmart you could see going up 10% and you get a good dividend play there. there is value in that market. but the overall market in general is fairley valued to somewhat overvalued at this point. >> chad, thanks for your time. and we have our viewer exchange, the national retail federation forecasting holiday sales this year for about $16 billion. we've been asking you if you were going to spend this holiday season. steve is tweeting in, consumer confidence has risen, holiday

season should be up overall. that's all we've got time for in today's show. thanks very much for joining us. >> "squawk box" is next. 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.

good morning. the white house working on new screening authorities for the ebola virus. what could be the first case of someone contracting the disease outside of western africa. st justice department is taking aim at some of wall stroort's biggest banks over possible conclusion in the markets and retailers may see americans spending more cash this holiday shopping season. it's tuesday, october 7th, 2014, and "squawk box" begins right now.

>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. we've been watching the futures this morning and they are pointing to a lower open. investors showing caution ahead of earnings season. traders are looking at the release of the latest fomc minutes on wednesday afternoon. take a look right now. you'll see dow futures are down by about 69 points below fair value. all this is coming after yesterday's gains petered out as we got into session. you'll see in super, cac down by almost 1%. declines for the dax in germany and the ftse in london. oil prices below $90 still, down by about 39 cents this morning. 89.9 a for wti. if you've been watching what's happening with the ten-year, yielding 2.409%. joe, you missed it last we