welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. these are your headlines around the world. >> european markets sell off. the dow has its worst day in two months. warnings on dmroeg global growth as italy hosts an emergency summit. wilbur ross warns the hands of policymakers are tied. >> the central governments of europe do not have very much

power over fiscal policy in individual states. air france klm is one of the worst performing stocks in europe after the carrier strikes force to issue a profit warnings. tesco is upgraded by hsbc, sending its share price over 3% higher. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> and as we said at the top there, we're at a 1 1/2 month low in european equity markets. the stoxx 600 is off 0.5% today. the stoxx 50 off a similar amount -- well, actually, it says roughly flat. let's look at those individual markets.

if you would think looking at the sectors, the likes of autos, the likes of travels, utilities is the only outperformers. the ftse 100 is out 0.4 pergs. germany is down 0.6%. france off just a little bit. let's look at bonds. panic selling in equities yesterday also meant panic buying in bonds. that follows the imf forecast only slightly downgraded its global growth outlook for this year and next year. nonetheless, a flight to safety. u.s. treasury down 2.34%, quite a significant move. gilt down a lot, 2.247%. germany only moved a little bit, but nonetheless, only very low, 0.888%. let's look at forex, as well. unsurprising to see the euro move down, given that weak data out of germany.

the dollar bouncing back a fraction against the yen, the yen has strengthened earlier this week, just over 1% and giving up some of those gains. quite a big move in sterling. both the u.s. and the uk were the bright spot of that if outlook forecast. nonetheless, the uk suffering given the dollar is seen as a safe haven. let's check in on markets in asia. sri jegarajah is in singapore for us. >> great to see you. plenty of risk aversion in markets. the shanghai composite returning after the five-day holiday. let's look at why the markets are moving elsewhere in the region. just before the holiday, day

jing rolled out some supportive stimulus measures for the property sector, project rates were cut first time by. so the property developers only now got the chance to react. so they held the market up. then there was the added factor and the big beneficiaries of the reform agenda in beijing. infrastructure stocks, defense stocks, health care and carrying. they were stronger, as well. earlier in the session, we saw 20-month highs. a bright spot in a fairley grim day for the asian markets. you were talking about dollar/yen. yen is attracting some safe haven inflows because of the slide that we saw in equities and wall street and the global markets. the concern over europe. that was kourntd productive for the nikkei 225. that hit the equity port sector. underperformance today off by 1.2 the%. that's where we stand in asia.

back to you now. >> thanks very much. head to our website for a live blog of the latest route on the global markets minute by minute. let's bring in tim harris, ceo at harris capital associates. tim, we have to talk about global markets. right now, there does seem to be the flight to safety cutting initial forecasts to 3.8% from its initial estimate of 4%. dorng the response in markets is overblown? >> i can there's a few issues. we're now looking at the potential to apply hurdle rates to valuations in markets. the other issue is the eurozone and japan are -- very well which is slowing growth. if they're slowing growth, there's slower earnings growth coming through.

so there are two very different axises there. policymakers, monetary policymakers in both the u.s. and uk if we see the tub ewe lens in markets. if we look at the eurozone, i think there will be a certain degree of goading for the ecb for action and that's going to keep discount rates very low. it's going to mean further expansion of the asset sheets. i think if we do see draghi and his polls moving on qe, i think that will be the catalyst. we saw what qe did with the cheap money policy, both in the u.s. and uk. that is something that europe i think wants and needs. >> is monetary enough to solve the problem?

>> i think your comment was bang on the monday. over the last four years, gdp growth and this is a strong man of europe. then there's stagnation across europe. and fiscal policymaker has his or her hands tied by fiscal constraint, by the rules of the euro area. if you're running deficit management, you can't put emphasis into markets so easily as you maybe could in the u.s. or uk. i think mr. draghi's points were well made.

>> if it does come through and mr. draghi does come further, whereabouts do you want to be positioned in europe? >> i think europe, you would then look for the discount factor, the sectors in the short-term which have greater sensitivity to discount rate. i think in that respect, you'll be looking at the telco, some of the duration assets. some of the more cyclical areas wouldn't show is in the short-term. i think that will begin a second stage of recovery. that will come when you start to see real response coming through. i think the sort of asset, although the sector allocation we recommended in the short-term, which is i.t., real estate, health care, we would remain with that right now. the sector shift wouldn't come for a while. >> and although the uk wouldn't benefit directly from further qe, surely valuation in the uk are more effective given the growth outlook.

>> i'd be absolutely with you there. we look at valuations and if you look at the price earnings multiple this year and next year in the uk, falling to 11.5. an earnings growth number of about 10%. if we see the uk continue, i don't think that's going to determine earnings change there. i think uk earnings, corporate earnings have withheld the strength against the sterling and euro very well. we have to be careful there. i think the risk premium which is implicit in uk equity valuations would imply to me to a period of relative strength in the near term. for the longer term, the ecb is not providing that catalyst today. >> absolutely. tim, thank you very much. tim harris ceo at harris capital associates. now, here are some stocks that

have been on the move today within the markets. london mining is sinking, shares down 92%. seema, this touches on two big themes in the market, both on ebola and iron ore prices. >> and its exposure to ebola and how that will impact its business. >> exactly. and london mining is still looking for a short-term strategic investor. obviously, the share price reaction at the moment projecting that. moving, tesco is enjoying a turn to the upside after hsbc rates stocked to neutral after increasing its price target up 2.7%. and tell ya, the respite to tesco? >> suddenly tesco stocks look amazing.

>> there's lots 06 news rumblings this morning. you have shareholders, they're happy, there's been these five sanctions that the senior staff at tesco who have been suspended as this investigation starts to come to a solution led by fresh sales. you've got news that the chairman, who a lot of people are plaming for a lack of oversigove oversig oversight. remember, it recently became clear that they misstated profits. so there is a massive inquiry going on. at first, it wasn't clear whether the chairman would be willing to go unless he was pushed. and it looks like now there is potential that he could resign at the end of this investigation. also news of a rights issue. now, a normal run of events, a rights issue should mean that

the share price goes down. but i think in the case of tesco, what this could mean is that there is shareholder support for the process that is going on for a very troubled company in the uk. >> helia, thank you very much. upgraded by hsbc to 1.29 target. air france warns a recent two-week pilot strike will take earnings up to 500 million euros. we'll get more analysis on that story in just about 20 minutes. air france klm is down 2.25%. >> also come up on the show, how do you make money in markets like this? blackrock's global chief investment strategist gives us your tips. we delve into costco's earnings beat and speak to one analyst on the stocks. amyself the eurozone's warnings,

we see if matteo renzi's jobs can provide any solution. hsbc

rise in sales. we heard from costco this morning reporting a 30% jump in profits, beating estimates. we'll also keep an eye on monsanto. needs to double profits in the next five years. ever since alcoa dropped from the dow jones industrial, shares have been rallying. on thursday, we see shares reported from pepsico. infosys will report spending. will that translate into higher firms? that will translate into the end of the week. >> revenues rose 9% to 34.7 billion. sales excludeing gasoline rose

7%. sales were up 6% in the u.s. and overseas. the company plans to open nine more legislations by the end of the year. shares are up around 15% over the last few years. >> a sluggish recovery in the u.s. a lot of consumers have been buying products from costco. but you have to word, how that the economy in the u.s. is improving, does that result in consumers shifting away from those low cost retailers? >> absolutely. 75% of their earnings come from their membership feed which means they can step away from the volatility in retail numbers. we'll be discussing that a bit later with brian naegel.

>> same-store sales fed. the fast food giant yum brands expects sales to decline in the fourth quarter. yum rose just about 1% in after hours, but in germany, trading down by around 2%. this is one example of it impacting one of the biggest consumer companies out this. >> absolutely. i also think a big trend for these fast foodmaker sess back home in the u.s. and how they're dealing with health trends. i thought pizza hut launched a healthy pizza. i don't know if that makes sense, does it?

surely when you want to have pizza a, you want to indulge and forget about it the next day. >> you're right. >> renzi, the so-called jobs act would allow companies to fire workers with regular contracts in order for them to take a new start and investment. the reform vote will take place in the italian senate later where the government has a slim majority on paper. today's voteco ip sides with an emergency summit leader which is called by italy and france discuss ways to boost employment. claudia is standing by in milan with the latest. claudia. >> yes. well, if how you go into a meeting is any indication of how you're going to come out of it, it looks as though today may not be any -- there may not be any ground breaking in terms of news about how to bolster and how to increase employment in europe. this was a mouth that was first

on and then called off and on again. it's really wanted by matteo renzi because of what you just mentioned, the fact that his government is going to face a vote today on on the labor reform. he wants to flag that victory. one is to show that he is still strong in italy. he's been questioned in these first months of his mandate on whether he can actually push these reforms through. the labor one, of course, is very difficult. it's one that has been aattempted at other times in ip italy and has not been able to go through. he's going to make his voters happy by one happened. the other box is going to then have something to barter in order to get more flexibility in terms of budget deficit. the background that these eu leaders are meeting within is one in which the world economic outlook is still extremely weak so they may be discussing on other things that go beyond

unemployment. but, of course, unemployment at 11.5%. will continue to be a problem. they need to boost consumption, need to boost investment. how this can happen without adding flexibility on the budget deficit is, of course, a question that ohland is posing. merkel will will be here facing a situation in which german gd did p is weakening. so a lot weaker of a germany. who knows what can come from this meeting. clearly, not too much is expected. but hoping to get some comment out as these leaders come in between 2:00 and 3:00 today. back to you now. >> and has mr. renzi got his priorities in the right order given that it is so hard for him to push through labor reforms and, therefore, he should have

tackled constitutional reform first? >> well, that has been one of the criticisms. i think he spoke a lot about the timing, you know, he's going to do certain things within a hundred days, within a thousand days and was not able to reach these objectives that he posted for himself. i think the reform is very important for growth. while he needs to move forward on other reforms, this is vital. unemployment for yuck people in italy the 40%. you can feel day by day here in the streets that there is a big issue with unemployment. so this flexibility that he wants to put in, the elimination or the modifying of article 18 which blocks employers from firing workers and having to reinstate them if they fire them unfairly, quote/unquote, is really inhibiting companies from moving forward and from growing. it was an important step he needed to move forward on.

>> claudia, thank you very much. joining us on the phone from rome is luccio malone. luccio, thank you for joining us. we know unemployment has been a big challenge facing the italian economy. unemployment at 12%. youth employment north of 40%. matteo renzi has made unemployment or i should say the labor market center percent on of his employment plan. do you think renzi will succeed in making this? >> he didn't make the job at all because the bill was introduced in the senate the third day of april and it is still there because of the feud in the democratic party. we have been waiting today and now it seems that the government will start the actual discussion in the senate with confidence vote that will not imply

anything in the reform just put in the hand of the government and without any criteria in it. for instance, they already let know that the reform of article 18 that you mentioned will not be included in the delegation for the law to the government. neither will be the possibility to downgrade the mansions and wages of workers. therefore, nothing significant will change. the only important thing is the -- >> not only do you think he has a battle to get this bill passed. you also don't think it will solve the issue that italy faces internally which is weak labor productivity snd. >> yes, i don't think that we are solving this problem. there are many other problems

that people -- companies don't hire because of only the labor laws because of high bureaucracy and high and low internal consuming. and what the government has been done in this month, except for lots of promises and announcements and some bullying attitudes as being nothing. in that election, to worsen the election, to worsen increased taxes and to discourage the internal demand. >> do i think mr. renzi is trying to do too much on his own? would he benefit from a bit of

delegation, perhaps? >> you could delegate more. he just form his cabinet to be the only star. he has beam within with no experience except mr. padawahn who has a long degree of austerity and doing this policy which is damaging the whole union and including germany as the recent data tells. >> senator mialan, thank you very much for joining us. >> and we want to bring you an update on the ebola story. we know there was a spanish nurse that was confirmed positive, that she was carrying the ebola virus. we're getting news of another health worker, spanish health authorities now saying that the suspected ebola carrier has tested negative for ebola.

again, something to watch out for and a developing story that we will keep you updated on. >> indeed, that ebola story affecting stocks in london and london earlier. it has been affecting airline stocks across the globe in recent weeks. that offset perhaps by a fall in the oil price will be debating what that means for ar line stocks. after the break.

european markets at a 1 1/2 month low. the dow has its worst day in two months and volatility fights 11%. >> warnings on global growth weighing on investor sentiment. this as emergency hosts a legendary summit. wilbur ross warnings the hands of policymakers r tied. >> central governments of europe do not v very much power over fiscal policy in the individual states. >> air france klm is one of the worst performing stocks in europe after the impact of a pilot strike forces the carrier to issue a profit warning. >> but a bit of rare news for

tesco. sending its share price over 3% higher. >> let's have a look at european markets, red across the board today. asia overnight continuing down. ftse 100 is down about 35 basis points. germany, down 0.6%. on the back of bad data over the last couple of days, including machinery orders earlier in the week. france off a little bit. the stoxx 50 contract is basically flat on the day, fractionally down. that meaning the bigger cap stocks slightly outperforming the rest. stoxx 50 down 6% over the last month. and a look at the currency market. global growth concerns have been weighing on a number of different currencies. right now, we're looking at the dollar trading slightly higher

against the japanese yen. there have been concerns about weak economic growth across europe. sterling, slightly lower against the dollar. that will be in focus. another area we're seeing commodity space. fears of global growth slowing down. also an oversupply. that's another reason we saw crude oil dip. billionaire investor wilbur ross says oil prices should eventually trend higher. speaking to cnbc yesterday, he suggested the rift was largely to blame for market growth. >> we're believers that a lot of problem with the price of oil is that the saudi have become tired of the other oh bem nations cheating and the saudis don't

wish to bear the burden of constricting supply to match it better to demand. >> and i'm just getting some flashes out of the ecb. ecb member consentio is saying that a period of very low he flagz raises serious concern because the eurozone recovery is still weak and fragile. he says measures aimed to ease monetary policy further with rates low to abound. interestingly, underlying from these further measures saying the risks are there of very low inflation. >> and at what point does morrow draghi step in and unveil quantitative easing? >> absolutely. particularly with the weak german data. that's perhaps the last title this needs to be overcome. moving on, air france said it was considering the possibility

of selling a 10% stake in the business. airbus's spokesman said such a sale would be combined with a further reduction of its share buy back. >> meanwhile, air france has warned a recent stwo-week pilot strike will hit the airline up ta 500 million euros. passenger traffic slipped 16% in december did happen. john, things don't look too good for air perhaps. >> no. air france has had a terrible start to the season. september is one of the strongest months of the business year, not only for volume, but for revenue. we've seeing something like a 16% in traffic impact. we've seen other companies benefit. from those iag numbers, ezjet had a nice close because of the

traffic. >> interesting last year stocks have been on the move. expedia seeing an uptick of sales in europe. is that perhaps impacting some of these aircraft liners, as well? >> maybe to an extent. again, the low cost carriers have been very focused on low-cost sales. the legacy carrier perhaps settled behind that curve. these are online providers taking advantage of it. equally, we see the low cost carriers pricing hard to keep control of their own inventory. >> and, john one mentioned iag's results a couple of weeks ago. they hinted they might be willing to pay the first dividend in a long period of time. are things looking up for iag? >> i think it has been a remarkable turn around. but british airways was already

a strong airline. that reflected a management both of himself and the current ceo of that airline, keith williams. they've been focused for a number of years on key issues like cost control, increases in productivity. but i think there's a lot of skepticism. when they would manage to do the same thing with iberia. iag has managed to conclude a deal with its pilot force. they have some small, short strikes, but the pilots ultimately came to the table. they reached an acceptable position to cut costs to improve productivity which bodes well for the future of iag as a group. >> absolutely. europe's main carriers are recovering. ebola continues to be a massive issue for airlines globally. what lessons can we learn from past health care as to how significant this effect will be on the airline? >> i think any understand of this kind has to be managed day-to-day as it evolves.

we've seen, of course, share prices hit. that's perhaps a bit of a panic reaction, as you rightly say. we have on one hand a big xwarchl of a health scare with the -- asia, airlines in that part of the world were badly hit. other than, we had, for example, swine flu examine a lot of worries were there. it tund out not to be a big hit. airlines are not usually massively exposed to these markets. we've seen some flights juan from flights in west africa, already. >> and, of course, the big o offsetting tlend has been the oil price. how significant is the to the air lines? does it feed through immediately when it falls? >> airlines unhedged will be enjoying the lower day-to-day

provides of oil. others could be worried they made the wrong decision. hedging is not a science or an art. it's more about managing risk in a sense of knowing what your price is over a period of the future rather than the lowest price. there's a gamble to a degree and hedging action. certainly lower oil prices will be better for the industry. >> we were just talking about ee bowl will. europe will almost certainly see more cases of oh bowl la after a nurse in spain contracted the virus. meanwhile, brit yap's david cameron says europe will do everything it can to help battle the virus. the uk has already provided 125 million pounds in aid.

>> the annual meeting of the infectious disease society takes place in philadelphia today. ebola is expected to be the main focus of the session. the company's intrimtal ebola drug is being used. nbc's tracie potts joins us live from washington with more. tracia. >> let's talk about the concern and the fears about ebola here. there's a new gallop poll that shows americans aren't overly concerned about an outbreak here, only one in five in that poll said they thought they could become infected. but the latest concern is for troops we're sending to west africa. they said really only a handful may have direct contact with the virus. they'll be dealing with blood samples that are being tested

there. the pentagon insists these are highly skilled medical pools, that they do this all of the time and that they will be taking the utmost precaution. meantime, the cdc, the centers for disease control, insists that the epidemic in africa is getting better in some areas. they said there's some areas where it's well contained, nearlily controlled, but that infection control in health care settings is where they continue to have a big concern, not to mention burials of people who have ebola. that is a very sensitive issue there. they're even know, in sierra leone, some burial crews are on strike because they say they haven't been paid. finally, we're taking a look this morning at the cost of all of this in the ooudz. the pentagon says $750 million is what they expect to spend to bill hospitals and labs and accepted people to west africa

and that's just in the next six months. >> tracie, thank you. and still to come, we will discuss what lessons can be learned from the u.s. and the uk's bond buying programs, next. ♪"in the hall of the mountain king"♪ [beeping on the computer] peter come take a look at this. [beeping sounds are more rapid] [beeping sounds are even faster] mr. daniels? mr. daniels? look at this. what's this? the numbers they keep getting bigger and bigger. the clicks are off the charts. yeah the clicks are off the charts. yoshi, i'ts walt. we're back. yes sir! hi. [spoken in japanese] let's go! let's go! let's go! [spoken in japanese & english] i need more trucking. more shipping! more shipping! i need more trees! more trees? i'll get you more trees. hey! take a look at wood pulp. got on more trees? iwood pulp. right now!s. ♪

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welcome back. january to september global new car deliveries were 13600, up 13%. things are up for porsche. illustrate seems that is contrary to what analysts at morgan stanley are saying. he's saying the industry is facing ix tension, in a note titled death of the auto industry is coming faster than anyone thinks. his message is, quote, adapt or die. we want to hear from you on this. what advancements in the auto industry are you looking at?

you're looking at the lightest lamborghini. what would you make -- what would you want to give up in your traditional car and see in the latest electric models? forno tweeted in to say flying vehicles powered by hydrogen. join the conversation here on "worldwide exchange." get in touch with us by e-mail, worldwide@cnbc.com or by twitter @cnbcwex. it seems as though porsche fans are happy with no changes. sales of porsche doing well yesterday. wilfred, let's take a look at jcpenney, holding its investors day in new york today. analysts expect the retailer to lay out long-term financial targets as well as the surge for a new ceo. jcpenney has been in turmoil since the departure of its long standing chairman, mike olman in

2004. his efforts to stream line the business saw some 19,000 employees laid off. in april, the stocks began to plummet. by the end of the year, speculation was mounting that johnson wag going lose his job with same-store sales down 32% inspect in february, he was reportedly given is six months to fix the stock price. now adjust to around $15. but by april, after an embarrassing lawsuit, johnson was out the door, mike ullman was rehired and the search for a new ceo goes on. and teenagers love to shop. their buying habits can burst or boost a retailer's options.

most kids own a smartphone and two-thirds have an iphone, but only 16% are interested in the apple watch. teens still flock to instagram and revent movies from netflix. 80% of teens play game on mobile. >> just so you know, wilfred within lululemon, they do have male yoga pants in case you're interested. >> i think you'll refrain from that one, as well. nike perhaps not surprise to go be a top brand among teens, but it was a top brand in a big way. i bet that wasn't the case three years ago. facebook must be delighted they got in early to buy instagram. >> only 14 people at instagram when facebook made that deal.

when you look at instagram, it's been doing exceptionally well. facebook's management has cited it as a growth opportunity in their past earnings statements. it's a great social media app, it's a way to communicate with friends via photos. >> 20% of teenager spending is on food. i think when i was a teenager, it was more like 120%. >> i didn't have much money to spend when i was a teen. speaking of childhood favorites, lego has overtaken mattel to become the world's top toy firm. we spoke to the ceo about how the company is bringing together hard plastic and software. >> physical play continues to be a key part of the job. you stick a football in front of

children, they just have to kick it. and if you stick lego bricks in front of them, they still like to build them. what we're looking to do is compliment that with a digital layer to ensure we stay relevant for them. >> the global recovery remains weak and uneven. that is the stark warning from the understander national mon tael tear fund which presented its global outlook yesterday. the imf cut its global forecast to 2.3% for 20 sa 15. speaking to cnbc yesterday, oliver branchard said europe remains a key concern. >> our baseline is growth.

the risk of deflation is there. the risk of recession is there. but our baseline is for improvement. this being said, the probabilities that things turn bad is sfushtly high. we have to be ready to do thing if, indeed, it materialized. >> the central governments of europe do not have very much power over physical policy in the individual states. but the troika has imposed some extremely stringent measures on those countries that have been bailing out. when those are fine from the point of view of sovereign debt, it's very hard to grow in the

economy when you're under physical austerity. so i think in addition to societal reform of labor laws is a need for a little bit more relaxation on the fiscal front. >> so should i read into what you're saying, mr. ross, as being that we shouldn't push forward with quantitative easing here in europe before we try some of the other avenues first? >> i well, i think quantitative easing can play a role, but it's a limited role. particularly in europe, right now you have the tendency of the results of the asset quality revi review. until banks find out whether the ecb believes they have adequate capital, they're not going to be very aggressive in making loans. if you don't have banks aggressive making loans, you don't transmit the benefits of monetary easing to the real economy.

>> the group's chief economist oliver blanchark indicate they have left the crisis behind. >> and he said he's ready to steer the balance sheet to significantly higher levels. he also said the economy is still weak and fragile and low inflation is a serious concern. he also said around 400 billion qualified as purchasable assets. that number, i think it's the first time it's been outright said by an ecb member. the euro is roughly flat for the day, but it has gained ground in the last half an hour. our next guest says there's lessons the eurozone can learn from the u.s. and the uk.

janet, has quantitative easing worked in the u.s. and the uk? >> yes, it has worked. there's been a range of academic and central bank literature trying to quantify the effect, but there is some evidence that it works in both the u.s. and the uk, both in terms of signaling. there's a commitment to keep ke extended period. they kept yields lower and encouraged investment in other assets. but it fed through t on the bank lending channel as well as the exchange rates. >> can quantitative easing work in europe? >> well, it can work to some degree. i think one thing it's missed is that the literature suggests if you're going to see quantitative easing, you need to go early and you need to go big. it's too late for the ecb to go

early. we're in a fairley advanced stage of the eurozone rick. the risk is that even once they start on asset purchases, obviously, this is what they're going to do over the next few months that initially their attempts are relatively meager. >> one of the take aways from the imf report yesterday is that u.s. growth is coming back but global growth is still falling. is it not enough to provide a boost to global growth? >> whenever the eurozone has groan strongly on the export front, more often than not it's been driven by stronger u.s. demand rather than the china story. but it's hard to imagine that u.s. growth can entirely decouple from the rest of the world. and i think at the moment was thereabout a huge amount of tejz in europe. but the fact is, in the first half of this career, eurozone import growth was not much weaker than anywhere else.

i think this is something the ecb may be pinning its hopes on that the u.s. will continue to accelera accelerate, the dollar has continued to strengthen, maybe they've done enough for now to lift the eurozone sought of stagnation. >> you say qe is working, but, of course, no one can tell because we haven't gotten to the end of that intrimt. no one, not economists, not policymakers, nor the market can really tell if this grand experiment has worked. the imf, like you, is calling for full blown qe. i says that the covered bonds and the abs isn't enough. whether that figure is 400 billion euros or 200 billion euros. do you think this will change the outlook for the ecb or will staunch opposition from germany preclude that ever from happening? >> well, i think there are a few points to address there.

first of all, whether it's 200 billion or 400 billion in terms of asset purchases, that's something not going to be enough. remember, we have a lot of ltro payments coming through in january and february over the next year. the risk is over the next six months, the ecb balance sheet shrinks. but one of your reports in the interview before mine suggested, you can do quantitative easing, you can increase the monetary base. but unless you get the money into the real economy to support demand, even quantitative easing isn't going to work. it needs to be part of a broader package of measures. janet, thank you very much for joining us.

cnbc will be hosting a round table tomorrow. we will bring you that tomorrow from 1700 cet. now, following on growth dissent from staff of the world bank, the group's chief financial officer has agreed so give up his $94,000 bonus this year. a restructuring plan has been issued, half of which has been carried out. >> wilfred, it is all about the markets, isn't it? blackrock's global chief investment strategist joins us next to talk about markets and if further volatility is to come. yo, bro, you on woo-woo? are you kidding me? everybody's on woo-woo! [elevator bell rings] woo-woo? lock and load, people! we're going all in on woo-woo! ok?

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welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. >> the dow has its worst day in two months. coastco reports a 13% jump in fourth quarter earnings, beating estimates. the wholesale group announced plans to open more stores by the end of the year. a different story forum brands. the kfc operating cutting full year guidance as the food safety scare continues to weigh on

sales. sales move lower after hours. an update on the search for a ceo at jcpenney, this after management changes accepted its price down on a roller coaster ride. >> announcer: you're watching "worldwide exchange." bringing you bus nis from around the globe. the dow jones industrial losing 275 points, ending at the lows of the day. there is concern about that imf reports cutting growth forecasts. technicals seem to be at play here. >> all three of those indices moved down more than 1 is.5%, this perhaps off the back of that imf report. emerging zone like russia were in the u.s. >> and you could argue we knew

about the slowdown in europe and asia, as well. let's take a look at u.s. futures to see how markets are moving right now in premarket trade. implying a slightly higher open on wall street. the s&p 500 up just about 0.5 points. nasdaq up about three. as we were just pointing out, it was a tough day on wall street with the dow losing nearly 300 points. the russell 2000, the transportation index both weighing on u.s. stocks, as well. let's take a look at the ftse global 300. obviously a good index of stocks around the world, in par with european markets down about 16 points on the day. now, as we dive into the european markets to see where they're trading, you can see it's red across the board. weak data out of germany weighing on investor sentiment yesterday. that continues to pull into today. we're looking at the ftse 1 hup, trade down about 38 points despite the move in tesco, one of the outperformers in today's tray. the french market showing red,

as well, down about 16. italy in focus, that crucial confidence vote. ahead of that, we're looking at the markets trading slightly lower, around eight points. wilfred. >> absolutely, seema. and your red dress merging into the sea of europe, who whole of europe red here as were the equity markets yesterday. and panicked selling meant panicked buying in u.s. bonds. the ten-year treasury fell down to 10.33%. quite a big move and perhaps a big surprise, as well, given that the u.s. growth outlook was one of the better in the imf forecast. similar story, in fact, for the uk whose yields fell significantly. 2.25% despite, again, being one of the bright spots in the global growth situation. bunch in germany at 0.889%. they're the lowest of the three, but they moved the least amount yesterday despite german data weakening over the last week or

two. let's move to forex. the yen is flat today, it has been strengthening over the last two days, despite weakness in its fundamental outlook. but it has moved a long way in recent weeks. flat today at 108.on 0. the aussie/dollar at 1.789 and cable 1.0674. let's check in on markets in asia. sri jegarajah is standing by as ever in singapore. sri. >> let me just pick up where you left off on the currency markets. dollar/yen continues to ex either quite a strong correlation to what goes on on the nikkei 225. quite rightly pointed out that yen did attract from safe haven flows. so the yen fairley well bid over the course of the day. we have seen some stabilization across, but it came a little bit

too late. the yen exerting a lot of pressure on the exports, the buy im anication, up by 172%. here is the bright spot in an otherwise fairley grim day in the regional markets. shanghai composite returning from the golden week holiday. up by 0.8%. led by the property developers. remember, just before the holiday on the mainland, chinese government came out and said that they are unveiling some -- measures for the property sector, cuts in the mortgage rate for first time buyers. that helped the property developers. also the beneficiaries of the reform agenda in beijing. infrastructure stops, defends the health care names and agriculture doing very well today as we head into the expectations. we're going to hear more from beijing on the reform agenda. shanghai -- excuse me, the

jakarta composite down by 1.5%. there's some very real questions being asked about whether the president elect is going to have enough support within parliament to push through some deeply unpopular reform measures. yes, the market likes him. yes, they need to see him. political support may be an issue here. broadly, risk aversion, but some pockets of resellance in a shanghai composite and over in thailand. back to you now in london. >> sri, thank you very much. i'm glad to see we're joined now by ross from blackrock. thanks for joining us. volatility is back in equity markets over the last couple of weeks. what's driving that? >> volatility is back. volatility has risen quite a bit on a percentage basis. when you look at the level, we're going back to something that more approaches normal than we've seen over the past couple of years.

in my mind, the catalyst for this is the pending change of monetary policy in the u.s. it is changing market conditions, changing monetary conditions and that's where we're seeing volatility go back to closer to that long-term average. >> it's hard to pinpoint what exactly is weighing on u.s. stocks yesterday. was it the imf report or is it geopolitical tensions? some would say it's the rise of interest rates. what do you think is weighing inn investor heads right now? >> i think it's more related to the lateral. though long-term rates fell yesterday. from a geopolitical perspective, we've had these lingering rates for months, although until recently was not weighing on volatility. people have known for some time european growth is growing. there was no one obvious catalyst. but i think news is now being taken in a very different context. again, as we get to a point where u.s. monetary policy starts to normal ooiz. >> and when rates do go up, what

is it that will affect markets or consumers? is it the magnitude or the increase or the relative size? >> i think for markets, it is a relative size. for consumers in the u.s., borrowing costs are exceptionally low, long-term rates are low. this has allowed the u.s. consumer to with stand a fairley heavy debt burden because the cost of servicing that debt has been fairley low and that probably won't change anytime soon. >> later today, the central bank is expected to wrap up its bond buying program this month. yesterday, top fed officials said rates would likely stay on hold until mid 2015. yet the concern is that we'll get some type of hawkish commentary today. >> i think people are starting to expect they're going to begin to change the language. there's going to be some indication that if we continue to see progress in the labor market, we are getting to a point where we are going to see

rates start to rise in the u.s. again, the context is that we're still in an environment of low rates compared to any point in history. >> and the volatility that we have seen in the markets over the last couple of weeks, is that something that blackrock welcomes, that gives you a chance to make some calls? >> i don't know if anyone welcomes out, by i think it is the reality. the volatility is going back to the mid to high teens. not that long ago, that was considered relatively low. again, i think this is just normal, but it's seeming to be a bit extreme after a period of a very quiet couple years for the market. >> thank you very much. for now, russ stays with us. for the moment, let's take a look at today's other top stories. the failure of aig would have had catastrophic consequences. that's the opinion of tim geithner as he defends his role in the insurance firm's rescue.

>> secretary timothy geithner, president of the federal reserve bank when iag chaps aed, he spint more than five hours on the witness stand and he did testify that, yes, he once said the failure of the insurance giant would have, quote, catastrophic consequences and the government rescue wiped out the company's shareholders. in a class action lawsuit, some of those shareholders alleged the 2008 government rescue cheated shareholderses out of an estimated $40 billion. now, geithner spent most of the day sparring with attorney david bo boyce representing those shareholders. most of geithner's answers were i don't recall, i don't recall

precisely or i don't know. it's all part of the strategy on the other side proving that aig was being treated unfairly and illegally by the government. that government bailout ultimately swelled to nearly $185 million, with the government taking a 92% stake in the insurance giant. aig, of course, has fully repaid the money since then. geithner is expected to be back on the stand tomorrow. that will now push back the timetable for testimony from former federal reserve chairman ben bernanke who later on in the week. and in other corporate news, yum brand is out canning its full year profit outlook after same-store sales in china fell 4% amid a food safety scare. same-store sales outside of china rose in the third quarter. yum shares were up about 1% after hours and trading down in germany at this moment. >> coastco reported quarterly

results early this morning. they rose 13% to 1 is.58 a share beating forecasts. the company, which has more than 600 stores in nine countries, plans to open nine more locations by the end of the year. coastco is trading in frankfurt slightly down today, but off the back, of course, of a strong three-month performance. and amid the dire warning for global growth, we head live to italy to see if the job summit can provide any solutions to the eurozone. more wex, coming up. 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.

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after the dow's worst day in months, u.s. equities are set to open in the green. cost cove helped by higher revenue from its membership fees. >> italian prime minister matteo renzi says he fully expects rebels to back him in a key labor reform vote. among other measures, the so-called jobs act would allow companies to fire workers with regular contracts in order for them to take on and attract investments. the reform vote will take place in the italian senate later

where the government has a slim majority on paper. lucio malan told cnbc earlier this vote is not what italy needs. it needs real reform. >> i don't think that we are solvie ining this problem. there are many other problems. companies don't hire people not only because of the labor laws, but because of high taxes, high bureaucracy and high and low internal consuming. low internal demand. and what the government has been done in this month except from lots of promises and announcements and some attitude, some bullying attitudes as being nothing. as being in that direction, to worsen the bureaucracy, to worsen taxes, increase taxes and to discourage the internal demand.

>> today's vote coincides with emergency eu leaders summit on jobs, which is called by italy and france in ways to boost employment. claudia is standing by in milan. claudia. >> yes, well, the climate is certainly heating up here. we are getting protesters. they are really close by, about a hundred meters away. they represent one of the italian trade unions, which is one of the big issues that this reform is facing. the unions are putting a lot of pressure on matteo renzi to not change too much which has been what has hampered any labor reforms so far. renzi had a quick meeting with the union and made it clear that he was not willing to negotiate to too much. today we're going to get this vote of confidence at the senate and, in fact, the minutesters of labor are going to be meeting in just about 30 minutes and the italian labor minutester is not going to be present at this meeting because of the fact that he is at the senate for this

labor reform. now, this, k, is what renzi is going to be flagging this afternoon when he meets with the other heads of state around 3:15. the meeting will begin and he's going to show that he is going forward with the labor reform. as we heard from malan, there is a lot of voicing about what could be done, but nothing has happened. each these meetings rarely have brought decisive conclusions and made changes to help unemployment. but now we have a serious problem. italy's unemployment is at 40% and in europe, the eurozone has 11% unemployment. we're waiting to hear something from these leaders on what can be done. back to you fou for now. >> thank you very much. on a programming note, thor row zone will be hosting a debate, geoff will be heading a panel

that includes wolfgang schauble, larry summers, david lipton and ian bremer. we will bring you that at 1700 cet. we've been watching the price of oil closely. further concerns about global growth going down adding pressure to the price of oil. oil now below $90 a barrel. the first time in two years. so further pressure on the commodities markets specifically on oil. we'll continue to watch that. the auto industry st facing extincti extinction, according to someone from morgan stanley. he says driverless cars and the end of individual ownership are coming faster than anyone thinks. his message is adapt or die. we want to hear from you on this. >> what advancements in the auto industry are you looking forward to the most? gortino tweeted in to say flying

vehicles powered by hydrogen. that is quite wishful thinking, i think, but a flying car would be pretty cool, no doubt about that. get in touch with us, worldwide@cnbc.com or @cnbcwex. still to come on the show, we have blackrock's top ten what to know and what to do in 2014. more with global chief investment strategist russ costrich coming up next.

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u.s. futures after what was a rough day on wall street, the dow jones industrial losing about 270 points. a lot of weakness in the russell 2000. the small cap index as well as the transportation index. both indexes seen as leading indicators for the markets. selling off. will the selling continue? right now, futures slightly higher for the dow and the nasdaq. but the s&p 500 showing a little weakness in premarket. blackrock put out its top ten list of what to know and what to do in 2014. no surprise, the economy tops the list while the u.s. recovery is under way. the firm warns wage growth is leaving people with little money to spend.

we were just talking about this. when you look at the ten s&p 500 sectors, consumer discretionary continues to undermine the markets. >> there are a number of reasons that the consumer stocks are underperforming. one, they've been fairley expensive. the notion that the u.s. consumer is back where it was, the challenge of the u.s. consumer, taking on more credit is not really an option. really, every developed country. >> this week, we've had negative markets out. it seems markets are correlated again. >> this has to do with a shutting concern.

you've got from an environment a couple of years ago where people worry about another recession of slowdown to one in which they're worried about the fed. >> let's talk about the earnings season. where do you see opportunity ahead of the earnings season? there is some concern that the strength in the u.s. dollar will weigh on some of the multi nationals that report. >> i think it is a possibility. we do see good positioning in some of the growth areas, things like technology. i think energy. it's gotten very cheap as something that can surprise to the upside. but the dollar issue is going to become important. not so much for the third rt yeaher, but as we start to see guidance from the companies about the fourth quarter, clearly for companies that have large international exposure, this is likely to start to weigh on the guidance. >> how important is earnings season as a whole as we look for reasons why the rates will go

up? i could be because growth is so strong and, therefore, allows rates to come up. is this earnings season and perhaps the next one crucial for the economy? >> i think it's indicative for the economy. it's more about the economy than inflation. inflation in the u.s. is low, not as low as it was in europe, but nowhere near the fed's targets. if we see raising rates in 2015, i think it's more important to come on the back of stronger economic growth. >> russ, thanks very much. the u.s. dollar has continued to move higher, but can it continue to gain momentum? whooefb asking a couple of experts. here is what they've been saying. >> we know there is still room to increase the dollar position. and the other thing we have seen since may, we have seen a sharp slowing of equity flows into the eurozone despite the ecb easing.

that would contribute to the weakening of euro/dollar. >> i think it's one its course in the meantime. i think a lot of investors, especially the people i deal with on my desk, they have seen this huge run in dollar in the last 12 weeks. if you take a look at the history of the u.s., you don't see that which impact on domestic prices. it tends to go into margins. similarly region if you look at the domestic demand and gdp growth, you never have a recovery driven by exports. you never have a recession that's caused by poor exports. i think that's secondary. >> i'm hearing on your thing, it's ball run. it's just daunting. it's just getting going, baby. sfoo location. location.

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. welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. 400 billion euros of asset

backed securities are eligible for the central bank's new purchase man. coastco reporting a 13% jump in earnings. the retail giant announcing opening more stores by the end of the year. >> and an update on the search for ceo after management changes sending share prices on a roller coaster ride. display you're watching "worldwide exchange," bringing you business news from around the globe. sgroo a look at markets after what was a rough day on wall street. the worst day of stocks since july 31st. the transportation index posting its way day in a month. a lot of concern about the stronger dollar impacting some of the multi nationals that do

big overseas. on that note, let's dive into why we're seeing the action. europe, 3.4% in 2013. weakness is pretty much across the board. we're going to focus on italy today. we had that crucial confident vote, ma tateo renzi and his job backed by traders. the xetra dax down about 70 points. the ftse 100 down about 32 points in today's trade. also want to take a look at the euro stocks 50. down about 12 points. wilfred. >> thank you, seema. ecb board members vencinzio has given some information that perhaps mario draghi failed to give the markets last week.

this as the ecb ames to send its balance sheets significantly higher. ross is from blackrock. do you think asset backed securities purchase of those and covered bonds is enough for europe? >> well, it's going to be a challenge. the objective of getting their balance sheets up to neutral with the added complication they're going to see about 400 billion of repayment from ltros. that means about 1.5 trillion euros they'll need over the next several years. >> stay with us. we'll move on to earnings now. yum brands is cutting its full year profit outlook after third quarter same-store sales in china fell 14% amid the food safety scare. however, same-store sales

outside of china rose in q3. yum rose 1% in after hours in frankfurt today. we're looking at the u.s. dollar index. we'll bring you up to date on that later. now, earnings season in the u.s. kicks off this week for the s&p 500. analysts forecasting a 6.4% jump in profitability and a near 4% rise in sales. we heard from coastco this morning reporting a 30% jump in profits beating estimates. we'll keen an eye on monsanto. it did say it expects to at least double profits over the next five years. the third largest producer of aluminum reports, as well. and on thursday, we get reports from pepsico and infosys. analysts forecasting a jump in i.t. spending. will that translate into higher

sales? we will hear from the company on friday. a lot of excitement about the growth we're expected to see in the technology sector. we have seep a run he in tech in the last km of moss. it's worth keeping in mind, the u.s. capital stock is fairley off relative to history. the last time we had a big i.t. spend was the late 1990s, so we're long overdue. and i think unlike consumers that are still at the stretch, companies have the wherewithal to dramatically increase their spending. >> tech is one of the sectors that has high exposure to the rest of the world and, therefore, vulnerable to the rest of the dollar, no. but, again, i think that the strength of domestic spending and particularly that capital spending from companies is enough to give many of the tech

companies geared to enterprise spending enough of a list. >> i want to ask about one area. you say japan represents one of the few stock market bargains out there. positive on tren? >> we are positive on japan. there are very few places in the world that are cheap. reasonable is the new cheap. japan is a market where you haven't seen multiple expansions. it's a positive catalyst reform. in addition, we're seeing reallocation of buying from japanese pension funds to equities, which may be another catalyst for this market. >> how much is the japanese market relying on that weakening yen? >> the japanese market would clearly benefit from the weakening yen. you have some evidence of corporate reform. japan has taken a page from the

u.s.'s playbook. in the past couple of years, we've had seen u.s. companies have benefited from dramatic buybacks that have credited earnings per share. there's a similar phenomenon going on in japan which should provide the same benefit. >> russ, thank you for your time. now, costco reported fiscal fourth quarter results earlier this morning. the warehouse operator profit rose .13% to 1.58 a share beating forecasts by 6 six on growth and sales and high revenue from membership fees. same-store sales excludeing gas rose 7%. sales were up 6% in the u.s. and 8% overseas. brian negel is a senior analyst and joins us now. brian, quite a nice beat from these numbers. is this a significant call in terms of retailers in the u.s. just to be focusing on the low end area?

well, it is a night beat. the q4 results shown today show reacceleration in terms of earnings growth. coastco is continually a higheren chain. i think this speaks to the ongoing strength, if you will, of the upper end of the consumer in the united states. >> and coastco has been expanding its presence, 13 stores, including 17 in the u.s. and 13 abroad just since fiscal 2013. do you think as the company continues, it will foef on expanding in the u.s. versus overseas? >> no. i have cost coast split between the united states sxwt eu. coastco does better overseas. some of their highest return

units are outside the united states. i think they'll continue to push into those markets. >> let's talk about the stog. outperforming the s&p 500 up about 1%. do you think the stock has more room to run? >> well, that is my concern. i wrote a pretty long report on cost. one of the best retailers i've ever seen. depending on earnings, a mid 20s multiple, it seems to me the stock is fairley valued here. >> brian, i'm interested, as well, that around 75% of costco's earnings comes from that membership fee income pp. does that mean they're better protected? >> i think so. that membership means a lot of things. first off, in my view, it's a huge annuity. about 75% of their operating profits come from that membership fee, which is very

steady overtime. i think the old wall costco model defends the company from e-commer e-commerce. they have a select number of products in their stores and the fact that people essentially pay to shop there probably further defends them from e-commerce. >> brian, thank you for joining us. >> thanks for having me. let's take a look at the other top stories today. valiant and bill ackman are reportedly planning to boost their bid for allergan by 15% a share. that would value the botoxmaker at more than $56 billion. allergan would reportedly entertain an offer of $200 a share. vallant's bid would be $191 a share. taking a look at those stocks and how they're trading, allergan up about 4% in trading.

in other news, tim geithner will be back on the stand today in the lawsuit against aig abailout. on tuesday, geithner, president of the new york fed in 2008 said he believed allowing aig to fail would have been catastrophic. geithner believes that the bailout wiped out shareholders, although he acknowledged that -- in the past. it's expected former fed chair ben bernanke won't testify until thursday 37. coming up, can jcpenney's ceo convince shareholders it's ahead of the track? stay tuned. 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.

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. yc partnershipny is having an investor day today. jcpenney has been in management turmoil since the departure of its long standing chief executive mike ullman cincinnati his retirement in 2004.

ron johnson you sa some surge but then his efforts to stream line the business saw some 19,000 employees laid off. by the end of the year, speculation was mounding that johnson was going to lose his job with same-store sales down about 30%. in february, he was reportedly given six months to fix the stock price, now the a just over $15. but after an embarrassing lawsuit, mike ullman was rehired and the search goes on. >> e-commerce, which continueses to threaten department stores globally. e-commerce re tailers will be interested in what teenagers like to buy. what ought and what not in the

theme has some interesting insights. kate rogers is at cnbc hq with more on the survey. kate. >> good morning. piper jaffrey goes out to the mall with groups of teenagers to gauge what the top trends are among this powerful group. here is some of what they found this year. teens are spending most of their money on food and clothes. about 20% of their cash on food. but their clothing budgets hats shrunk from 28% in the fall of 2003 to 21% now. teens are getting the jor of money from their parents. teens want the big restaurant chains and want their food ranked fast. starburst, chi poet lay. over top brands include american

autoi autoingel. arrow pass tell, abercrombie and fitch, limited too and the gap are falling out of favor with teens. amazon is still the top retail site. instagram is more popular than facebook and twitter and netflix is the top movie rental site. video game consoles still hold play and 80% of teens say they like to play mobile teens. as for the top fashion trends, among teenage girls, it's wearing yoga pants instead of teens. girls say leg.ings are the top items to own for this fall. and most teens own a smartphone and are loyal to one brand, apple. they're not as interested in smart watches. only about 16% say they would actually shell out the $350 it costs for the apple watch. gene municipalster is says the concept of wearing a watch is

simply foreign to these teens. back to you guys. >> thank you very much. the annual meeting -- is expected to take place today. the company's experimental ebola drug is being used to treat the two u.s. patients with the virus. nbc's tracie potts joins us live from washington with the latest. tracie. >> the latest is there are some americans worried about this virus, but not so many. one in five fear they could become affected. but the latest concern is about the thousands of soldiers that we are sending to west africa to deal with this. we've learned from the pentagon that a handful of them, just over two dozen, will be handling blood samples that may be infected with the virus.

the pentagon assures us that these are professionals, they are highly trained in dealing with infectious diseases. meantime, we are learning from the cdc in some areas of west africa the news is detained. they have big concerns about infection control in health care settings. there's some burial teams that have gone on strike because they're not getting paid. we're learning what this is going to cost the united states. the pentagon oo loan says they plan to spend $750 million just in the next six months, sending people over there, building hospitals and other medical facilities, labs, to contain this virus. >> tracie, thank you so much for bringing us the latest. after the dow jones'

industrial's worst day in two months, u.s. equity investors in the green. the fed's bond buying program wraps up. cost coat beats on the bottom line helped by higher revenue from its membership fees. >> after the break, will the fed minutes provide any comfort for investors' concerns over global growth? we'll look ahead on that. on that note, cnbc will be host ago debate on austerity versus stimulus at the imf meeting tomorrow. geoff will be monitoring a panel that includes larry summers, john lipton and ian bremmer. we will bring you that tomorrow at 11:00 a.m. eastern. dads don't take sick days, dads take nyquil. the nighttime, sniffling, sneezing, coughing, aching, fever, best sleep with a cold, medicine.

welcome back. as you can see, european markets

in the red. the ftse 100 down about 0.5%. good earliny down almost 1% after disappointing data out of the lead in eurozone economy after the last few days. france down 0.7%. it lit down 0.5%. >> u.s. futures losing steam over the last 20 minutes, indicating a lower open across the board. dow jones industrial down about 14 points in premarket trade. s&p 500 nasdaq. slightly lower. what was a volatile day on wall street, the s&p 500 breaking a key technical level of 1940. now, it was expected to be business as usual at the fed when the fomc minutes were released later today. the central bank was expected to wrap up its bond buying program this month. yesterday's top fed officials said rates would likely stay on hold until mid 2015. let's get a market perspective from elon luie. elon, mixed message when it

comes to what the fed has been saying. a dovish commentary in terms of supporting the economy with its asset backed security program. also, the fear of rising rates continues to rock markets. what are your thoughts on what we can expect today? >> i think they are backward looking. so this is looking at the meeting again at the ends of this 3407 the one thing i'm going to be checking for is exactly how much debate there was over changing the language around when the fed will raise rates after its asset purchases end. so there's been considerable debate over the term "control ti considerable time." the fed was trying to finalize its exit strategy. but this was a really big deal for them. so there may not have been the time to have it, especially around how they should alter their foreign guidance. since the fomc minutes have come out, what you've heard from many

fed officials as you've mentioned, is the word patience. that's where the signaling to the markets meant when the fed begins to end its qe program, that they really don't want to get this wrong. they would rather wait and make sure that they raise rates, the recovery is in full steam head than risk going lower back to a zero bound. >> and the focus is on that considerable time aspect, when rates will go up. do you think the market has forgotten about the impact of quantitative easing going forward? could that be an imminent risk to markets when it is removed this month? >> you know, i think it is very telling that we found ott that the bond buying program would end in october through the last round of minutes rather than through the press conference. it just goes to show you how much in the background qe has become. this is a given. markets are based on expectations. people expected this to end in

october. i don't think that's going to be a big factor here. >> and we're looking at the bond yields on screen at the moment. the ten-year treasury note joins us. quite a big move. they seem to be a move off the back of growth concerns elsewhere in the world. not in the u.s. what do you think we can take from that and also the market volatility we saw in equity markets yesterday? >> i think the fomc minutes have been over-shadowed by what we're seeing here. i spoke to the imf managing director earlier this week and she told me the imf global growth remains significant. that has broader concerns for any potential back to the u.s. >> elan, thank you so much for joining us today from the wall post. that's all we've got time for today on "worldwide exchange." i'm wilfred frost. >> i'm seema mody. "squawk box" is next.

good morning and welcome to "squawk box." worries about growth in europe, europe sliding again following a big tumble on wall street and a pushback by germany on some of the stimulus. but nobody feels that great about this whole ebola thing. earnings indigestion. the results from yum brands leaving investors hungry for more profits. and a big box retailer going strong. costco rolling out better than expected results. it's wednesday, october 8th, 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. andrew is off today. the dow suffered its worst session in more than two months yesterday. volatility is once again the name of the game. the blue chip index posting a triple digit move in ten out of the last 16 trading days. that is nearly two-thirds of the time. that is amazing with what we've seen over the last several years where there has been very sympathy trading ranges for most of the session. yesterday down 272 points. that's something that will make you sit up and pay attention. but with the slim number of moves that we've seen leading up to this,