it's friday. definitely, particularly warm welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. >> the dow suffers its worst point drop since june 2013. >> fears over global grow the price of fuel. >> an exclusive cnbc debate, germany's finance minister insists there are there no change to the strict spending

rules. >> with strict dependability, no one is asking, no one is asking, not the government asking for anything. >> and in another exclusive interview, india's central bank governor tells cnbc multipolicies are driving marketability. >> one of the biggest concerns, the world economy is not picking up. chinese world has slowed down. we've japan not pick up. we've seen europe in a very bad way. >> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. >> well, what on earth is going none markets? a lot of red behind me. volatility has spiked this week and equities have done, too, in both directions.

today down, 0.75%. the stocks down 5%. what's driving this, a big, big selloff and that has fed into european markets once again today. it seems this is being led bust ji german negative data and what people think that means for the jury row zone as a whole and global growth. the u.s. was unable to shrug is off. and out. 5%. germany down 0.7%. let's look the abonds, we've had a bit of a rally in u.s. treasuries in the last week or so. only a week ago, the ten-year u.s. treasury is 2.43%. slightly bullish move.

and 2.33%. we've had similar in the uk, 2.6% in europe, a bit of a safety push. german bonds still at 0.9%. they haven't seen the same magnitude but already at very low levels. let's look now at commodities. big, big moves continue to happen in the oil price. below $90. another 1.1% today. wti moving to its two-year low yesterday. gold, interestingly just off the day, but that doesn't tell the full story. it's been rallying over the last week, a bit of a safe haven trade. 1217.8. and the first in 13 weeks not to have games, in fact, it's

bounced back a little bit today. overall, the dollar has come off its highs. the euro dollar is 126.65. and against the pound 1.658. let's check on what's happened in asia overnight. standing by in significant ngap. >> hi, wilfred. you look at the sacks 200. that's hurting the producers. the other factor on the commodity side, china has imposed higher on coal. and we have seen a degree of composure in the yen, but it hasn't showered until 225, down

by .2%. and you're going to ask yourself, we're bound so see more volatility in the global markets and the regional markets. next week, inflation from the eurozone, and retail sales and the beige book as well. strap yourself in. wilf, back to you. >> thank you very much for that, sri. >> what's behind the markets? the central banks hands are tied it was warned. draghi defended why the central bank had not launch -- >> first of all, q.e. is not a factor unless you have a well defined factor. the second point is it's

affected like if like the fed did, the concentrate is concentrated on those activity that are closer to the credit-easing component of the financial assets. the third important thing, going back to japanese experience, is that the health or the bank insists it's crucial. so without that, the q.e. will not be effective. any amount of points will not be effective. >> europe must not rely on assistance of the rest of the world. speaking on an exclusive panel 0 on a cnbc panel in washington. >> jeff who was chairing the panel and his italian counterpart whether nations have a certain responsibility to do more when it comes to fiscal policy. >> i can tell you, it's not a matter of one or the other. every member has to take care,

every germany has to take care as we move to investment. that is not the way we were. >> can i ask you, would you agree to a change in the fiscal wounds in europe that allow a little more flexibility on member states that are showing good efforts on restructuring? is there some wiggle room perhaps in the german position that might allow some of these budget deficits to remain at 3% plus, while countries are engaging in the hard work of doing that job? >> we have flexibility in the european woods. nobody is asking, no one is asking, not the french

government, not the government is asking. there will be no need, for me it is to do what we agree to implement. >> i don't think anybody is saying that this process is easy. i mean, clearly it isn't. and clearly we see politicians and governments struggling currently with the political narrative in europe, it is not a good time a we so growth generally weakening to try and impose fiscal austerity. i wonder if you could share, maybe, some examples from the italian experience where you have overcome orr perhaps you have got workers cancels or younes for adjustments for the sake of growth. >> let me go to examples, one which has been raised about the pension system. the pension system in my country

used to be under heavy criticism and rightly so and now it has become stable over the long term. and this is achievement of past governments. as far as the current government is concerned when someone would say very ambitious, some would say very ambitious. let me just quote the labor market which could produce dramatic change in flexibility in hiring and laying off workers, especially opening up the date of the labor market to young people. >> the minister said there's no need to change for europe. but italian ministers are on the record saying perhaps we could allow more expansive policy within the eurozone as a whole, while this very focused spotlight on specific country deficits. do you think there's some value in us going down that path if germany was prepared to go down

that path as well? >> my view is that we have to give practical content to a term we often use which is grow friendly fiscal consolidation. that to me is two things. one, the profile that has to be exploded given the full fiscal space. the other one is changing the composition of fiscal adjust both on the spending and tax side. we can use the same amount of sources including globe prospects and labor content of work. >> and joining us edmund singh the strategist at bcs financial group. edmund, thanks for joining you, volatility is backward veng epps this week. what's driving that all, german data? >> no, it's not just down to german data. if you remember, we had the imf report, and that's something is

that we see in data like oil demand. oil demand has been growing at the slowest in three years. that tells you something. that tells you that global growth is not going great guns. >> i'm interested in that, so the imf can downgrade global growth. oil prices are very low so that should be beneficial for the u.s. economy. so why is the u.s. included in the market selloff? >> that is a very good question. if you were invested in u.s. equities, particularly if you were invested outside of the u.s., in other words, if you were invested in pounds or euros, you've made a fortune, not just on the movement in the s&p itself but also on the currency as well. clearly, when markets sell off, there's a huge tendency particularly for a retailer that says run for the hills. just to say i'll take my profits on out. that's what you see. if you look at mutual fund flows

they are re-entering bonds. frankly, that's the wrong move because if you look at where bonds are today, it's a hemp for safety. europe, though, has been a major concern for investing, jogging speech yesterday sparking a selloff in the u.s. with the economy improving how concerned should u.s. investors be about the slowdown here in europe? >> well, at the corporate level, in fact, it has an impact because a large number of companies higher in sales not only to asia but also to europe. if you think about companies like huet packard, and others. when the dollar isn't strong, exporters outside of the u.s. repatriate it back to the u.s.

>> in contrast, we're seeing a weakening euro. >> i think it will, but there is a lag effect. if you're expecting to see it this month, next month, forget it. it takes three to six months for that to start to turn up. the german factory orders were okay, but they were poor, they were seasonal due to the holidays. but i expect that to pick up which give europe and other eurozone companies a competitive challenge. >> we'll continue that on the european markets. head online for a live blog, leave us your comments on why you think we are seeing a selloff. >> let's start to the markets and get top stocks or bottom stocks.

finnen stocks fell and said it would be forced to reduce production levels. and sd micro also slipping around 4%. edmund, tech's done pretty well recently, is this the sign it's about to turn? >> i wouldn't go that far, wilfred. i think tech has done very well. bear in mind, within tech semi conductors are probably one of the most volatile subsectors. they do move very well with oil and expected demand. however the read through the whole is a dangerous thing do. we do know there are so many end products that chips go into like pcs. actually pcs are starting to flatten out now, tablets, smartphones doing better. so it's so difficult to read across the whole sector. i would be careful -- we're going to get the prechristmas bump now. people obviously will be making phones, tablets, and other

electronics ahead of christmas so it's different. >> but if you had to put money in technology, where would you put it, you say semi conductors volatile right now, won't that help intel and qualcomm and others? >> yeah, the names are holding up best. this is something i like about the technology sector at the moment. you actually get a very good dividend better in the market so i'll be investing in intel, apple and others. >> edmund, thank you for joining us, we'll continue after the break. but coming up on the show, markets are on a virtual roller coaster ride we hear from one strategist. another tech company heads to

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>> announcer: you're watching "worldwide exchange." pope francis is to be awarded the nobel peace prize, others are ban ki-moon. we'll bring that to you when it happens. and we've been getting your tweets, adam tweeting in, yes, malala should win, would get my vote. join a conversation on worldwide exchange. tweet us @cnbc or our personal handles which you can see on the bottom of the screen, wilfred did you know aside from getting the nobel peace prize you win $1.2 million. >> i did know. >> i'm sure they donate some of it to a charity they support, either way. >> 40 minutes away for the

results on that. >> absolutely. another focus for traders, commodities, oil prices continue to slide way lower by growth fears, grant slipping below the crucial $80 mark. and opec also fell to its lowest level for the lowest overnight. edmund, i want to get your thoughts about the oil market, how much farther could oil slide from here? >> well, it could slide further, but don't forget the pain that they would be suffering. if you look within opec, somebody like iran needs $150 a barrel to balance the budget. clearly they're not getting that so there's already massive deficit. u.s. shell, don't forget, it's expensive to produce, 84 bucks. if it goes any lower, they will be making losses. there will, therefore, be a

massive reaction to production. >> and energy analysts for the markets, we're just touching on the move in oil prices below $90, of course. since there's a lot of complicacy in the market. oil is getting harder and harder to find. more expensive to extract. just a short-time blip on oil growth? >> yeah, i think the fundamentals haven't changed as much as some have. from a technical point of view, we've been stuck in very narrow lines so any break up or down is probably going to be exaggerated more than the fundamentals. plus you've had a moof. so a lot of the financials are moving out. but a couple things that are exacerbating this is actually we've had a fairly resounding silence as far as any action from the sounddyes or opec, as opec reports today. i don't think we're expecting

anything particularly in terms of production. sort of the normal first response hasn't yet come. and of course, it's a very heavy maintenance season. so at this period of year, demand always falls down. all of these things coming together in the short term exacerbating the negative sentiment. that's making things worse. until we see what the attitude of opec and the saudis is and the willingness to test this, the market is going to remain pretty jittery. >> peter, how should investors play the energy sector as the price of oil falls. energy stocks continue to underperform by far the worst u.s. sector now performing at its all-time low since june? >> in market we called the market down saying it was getting pretty touchy. the sector is looking more retractive. we're seeing almost 20% up to

our price targets and that's a level which is starting to get more realistic. that upside had been pretty much taken away six months ago. i don't think we're seeing investors willing to jump just yet, but i think they're getting more ready. and i think once you get some stability in the oil price you do get movements in. in the meantime, you've had an increase sector which is pretty badly hit and still suffering from low oil prices. integrators, integrators are integrated for a reason. we're not talking about an immediate offset in the refining business. but we're finding actually as cash employees come down from underlying operations there are a big offset from those companies who have that in terms of the working anti-. so more than half of the cash from underlying basis has made

it which on a short term basis is quite material. >> edmund i want to bring you in here. peter is saying the market is starting to look attractive. is that good for share holders but bad for consumers along the way? >> no i don't think it's bad for consumers. if you look at where gasoline prices have gone, retail gasoline prices have fallen but also in the uk as well. so i think consumers are benefitting from the oil. but i would say all-integrate said a good place to be. as your analyst said down the line there is at offset. if you look at the dividend deals if you think of big u.s. companies such as chevron, they're very attractive right now. so for a retail investors able to take a longer term, more than a three-month view, now is a good time to start accumulating. >> you got to wonder with the average dividend in the energy sector much higher than the s&p 500 we're told the fed won't

raise rates sooner than expected. does that mean investors will switch to dividend yielding stocks? >> as long as the dividends are safe. that is the key point. what you want to see is not just by the high dividend yielders but high dividend yielders with good perspective growth. all majors like exxon and chevron do fit within that category. >> peter, what's your top stock pick for the moment? >> we've gone defensive with self-help as well. we've been positive on shell for some time. also, we pointed out last week, you know, exxon, exxon is an attractive stock at these levels. one of the things that investors have said they wanted from the sector is capital discipline and a generation of free cash. and that's simply what exxon has done for many, many years. when you look at it, 85% of the free cash being jern flatd the integrated oil sector is coming

from exxon alone. the dividend isn't as high but secure. shell, you get a both and nearly 6% dividend yield. >> peter, thank you for joining us. that was peter hutton, energy analyst at rbn markets. let's stay on that conversation, where do you think oil prices are heading? slate sent in keep in mind oil prices are still up from the 2009 lows. get in touch with us, e-mail worldwide @cnbc.com. and still to come on the show, austerity on child at the imf meeting in washington. they go head to head on an exclusive cnbc panel. we bring you that debate after the break. from bank of americagh ck to help entertain some friends at the beach. before earning 1% cash back everywhere, every time.

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>> announcer: you're watching "worldwide exchange" bringing you business news from around the globe. european markets, the sellout, trading at the lowest levels in the year. this after the dow suffered its worst drop since 2013. basically lead the decline as fears of global growth see it fall in multiyear lows. austerity is not working, an

exclusive cnbc debate. germany's finance minister insists there will be no change to the strict spending rules. >> with flexibility into european woods. nobody is asking, no one is asking, not the french government, not the australian government is asking. and dodging a hefty tax bill in a key emerging market. and let's get you a read on the european markets, you've, of course, been seeing a selloff across the board, the ftse 100, and draghi yesterday saying in washington he could only do so

much and that the onus is on the european governments to implement structural reform. we're looking at the ftse down 0.8%. >> i'm going to break you breaking news out of england. they said the trade deficit was 3.6 billion. that's the non-e.u. trade. that came in slightly bigger than expected. flashes coming out of the bank of england. we'll continue to sift through them to find the key factors. as you can see, sterling has moved down to the back of it, 0.4%. we go to bonds in the meantime, the bond market as we said earlier, the ten-year treasury is 2.3%. and moves at 2.2% for gilts.

>> the bank of england planning extra cash auction in the event of a scotland yes vote. it says it would also open ready to supply extra bank notes to meet demand if scotland had voted for independence. on a note, let's take a look at the market, in the currency market. the dollar yen trading higher at 1.08, given global concerns we've seen the reintegration into the u.s. market. you can see the dollar strengthening there. the euro dollar trading lower. below 1.27 at 1.2659. >> and the stocks 50, let's update you, down 0.75% today. the red trade across the board in europe.

markets also took note of a debate over austerity playing out at the imf meeting in washington where concerns over europe's sluggish recovery are topping the agenda the german finance minister wolfgang schauble. >> sometimes, with the negotiations, i remind that energy is sometimes a little bit more complex in some teaching books. >> i think you have to decide, very quickly, i think you have to decide whether you think it's working or whether you think it's not. if you think it's all working, then you should continue with the strategy that's been in place for the last few years.

if you think that it's working only in the very limited sense that you preserve the euro as a common area, and you prevented major financial institutions from failing, that virtually every year, growth has been far short of what was expected, and you've been surprised every year by the weakness of growth and by the extent of deflationary forces. then you think, as i believe, that you need a discontinuity in strategy. and in particular, you need to recognize this which is a central principle for the united states which was a central principle for fdr. because make no mistake, we are dealing with something that approaches the depression. it is the central irony of financial crisis. but while it is caused by too much borrowing, too much lending, and too much spending,

it is only resolved with more confidence, more lending, more borrowing and more spending. the point is, that strength demand and avoiding deflation makes structural reform easier. i know of no -- i know of many successful cases where structural reform accompanied dealing with excessive inflation. i know of no case in which deflation was a powerful stir as a structural reform. >> so what is the worst case scenario for europe? asking if the country is at risk of slipping back into a recession. >> it's at risk before the sanction zone, russia got

imposed and even more so now. the structure that germany has imposed on the countries that are in crisis, the policy of austerity has failed. failed repeatedly. failed in every other place that it's been tried. and it's amazing that europe has not seemed to learned the lesson. >> and slowing growth across the eurozone a major point of contention for investors. we just want to get you an update at the european markets. the ftse 100 trades down 0.8%. germany has seen weaker than expected data. earlier production data currently trades down by 1% now. france also showing some red, italian markets also in negative territory. down 0.6 percent, wilfred. >> indeed, significant moves downwards. we're going to bring edmund back in. edmund, as bad as this macro

data gets, in the worst case scenario, is the future still safe? >> i think yes. that's an issue. if you start to question that, then the rick of real deflation and real macro volatility would raise its heads. and the ecu will do everything it can to avoid that. i live in france, i'm stitt waiting to see structural reform in france. unfortunately, the current socialist government seems incapable of delivering it. so it may be that we have to wait two more years for a new president to start delivering it. what happens in the meantime. >> is two years too long a period before that comes out will we get significant production? >> of course, the risk increases all the time. the longer we leave structure, the worst the probability or the greater the probability that we enter serious recession. because we always knew, in the aftermath of the financial crisis we were never going to

have strong growth. i think what the eurozone is doing on the governmental side is actually completely nullifying nag the bcb can do. >> europe was a hot topic at the imf meeting yesterday. we've been reading the headlines from that meeting. larry summers saying europe son the same path as japan in the 1990s. >> if you look at inflation swaths going forward, five-year forward, which is what president draghi uses, it continues to plunge, it gets lower and lower. and that tells me that people are expecting lower and lower inflation in the future, why? because they expect deflation to rear its head. wage growth is nowhere. there is no domestic growth anywhere. all of this points to the greater risk of deflation. >> definitely not a good scenario. we'll leave it there. thank you for your time. edmund sinhg, equity strategist

at bcs group. governments around the world are taking steps to prevent the spread of ebola. the uk will start screening passengers at two main airports as well as the euro star rail link. meanwhile, some u.s. lawmakers are calling for a travel ban for some of the countries worst hit by the deadly virus. this comes with suspicion that a british man who died of ebola. bank president kim spoke about the rising outbreak? >> one of the great stories over the last five years has been the resilience of economic growth. over 5% during time. during 2008, many people thought how on earth are we going to keep africa going, and they did, for so many reasons. >> but that's been lost? >> that's been underfed especially in those countries.

the estimate of $2.6 billion is based on notion that we don't get the services in place. and if we don't, it will move to other countries. what we've seen, the so-called aversion behavior. not because of the virus itself, it's aversion behavior. kids don't go to school, no flights coming in, trade slows down. already in spain, two people who died plus two nurses who were infected, already we're seeing the airlines, the stock of airlines, the stock of tour companies is already atake a hit. so aversion behavior and the fear factor is having an impact in spain. >> you have people here in united states who don't want to -- what if gets to more of a pronounced problem in the world what happens to the cost? >> the answer is the same. the cost is going to skyrocket, there's no question. the answer is the same.

everybody has to focus on making sure that we get fully responsive responses in those countries. we were just in a meeting, we were talking about ebola. the head of the uk development group made it very clear that time the invest is right now. anyone who wants to help, has to help right now. because every day that we wait, the cost goes up. >> speaking of global concerns, japan is brace for super typhoon vongfong as it approaches from the south. the storm is the island nation's second typhoon of the week. and strongest with winds of 185 kilometers per hour. it's preparing for at the worst heavy rain. japanese banks is stepping up lending while this is good news on the surface, a closer look suggests the economy is not out of the woods jut yet. we have the story, life in tokyo. >> thank you, wilfred. lending in japanese banks

climbed 2.3% in september, rising for the 36th consecutive month. this means lending was already increasing before japan launched quantities taf and qualitative programs. the research institute says while lending has been growing, the bank of japan's easing measures has significantly expanded the monetary base and the ratio shows that banks in fact have not been able to lend as much as expected. this is partly because japanese companies have plenty of cash and lack the appetite to borrow. so the question is are the doj's efforts delivers credit as hope and the government kuroda suggests that it starts with income growth. yet, the consumer confidence survey announced showed weak sentiment for the second straight month.

the fact that april's tax hikes are lingering, and if other economic indicators for the july/september period are not strong enough, they'll have to post tone until the next tax year. >> thank you very much. in another news, a north korean party marked its 69th year in power one was missing from celebration, their leader kim jong-un who has not been seen in public. so is kim jong-un gone? sources say he's just resting an aggravated injury sustained in a military drill over a month ago, and that he is still in full control. we'll keep you up to date in that story. >> i didn't know he took part in the military drills. >> apparently does. >> 31 years old. >> quite young, perhaps, very young to be an autocratic leader. still to come on this show,

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in a top telecom story, vodafone shares hitting a one-year low. however there is good news for the telecom today. according india has ruled in favor of a transport price dispute according to colleagues in bombay. bombay high courts has reportedly ruled in favor of the british company after it appealed an indian tax office decision to add for the 2009/2010 year. joining us now from mumbai. >> thanks for that, yes, like you said, today's judgment coming up from the bombay court is clearly a landmark judgment as far as the tax dispute is concerned between the tax department among the multinational companies present in india. coming from india what the court

has done they have rejected the claims of the income tax authorities which are saying that vodafone in india has undervalid the shares that it sold to the parent company. so what the court has categorically stated is that there is no income that has risen out of any of the transactions between the place between vodafone and the parent company and the entire tax adjustment factor does not come into the picture. a bigger indication of this, many other companies which are also facing the similar tax case, shares of other companies that are facing this similar tax litigation, and clearly it's a judgment that has set a positive and favorable precedent as far as all these cases are also concerned but a big relief for vodafone. this is basically a case whether

they slapped adjustment to 3200 the taxable income of vodafone this is for the year 2009 and 2010 and it's this claim that's been rejected. clearly big positive news for vodafone. >> thank you for that report. in other news, symantec is the latest tech firm to break itself up in companies following the footsteps of hp and ebay. one will be focused on security and the other on data and backup. sluggish demand for storage and data management has reduced the value of veratas which has been considered a cash cow which they bought it. "the wall street journal" says the store will be about a block from herald square and macy's flagship store. reports say customers will be

able to pickup orders. it will be also a store for kindle and amazon trading down 1.3% trade in frank ft.. sticking to tech, google is thinking big. the company plans to launch a new smartphone later this month with a 5.9 inch screen. that's larger and the iphone 6 and the galaxy note. the phone could be named shamu. under the nexus brand. google shares trade down in yesterday's trade following the broader selloff in tech. and trading down around 0.7% but a big smartphone, it's so interesting to see the interest in the phablet. you got to think why would they need a tablet if they're doing all their work and entertainment on their smartphone. >> you're a fan of the big phones. >> i think as a woman, i think

less is more. i don't want to carry around a tablet and a smartphone. if i can have a smartphone with a bigger screen and do more with it i'm all about it. pope francis is odds on favorite to be awarded the nobel peace prize. and others are expects to be ban ki-moon and the announcement will be in 15 minutes time. we'll bring you that when it happens. who is your favorite for the award and why do you think they should win? if you want to join the conversation get in touch by e-mail, worldwide @cnbc.com. in other news, hong kong protesters plan to push ahead for a campaign for democracy even as the city called off talks. it came as pro-democracy leaders call for a an investigation into hong kong's leader, currently there are hundreds of protesters occupying the financial district with numbers expected to grow

over the weekend. and despite the public unrest in hong kong, sotherby's managed to sell a pink diamond for auction. the price exceeded top estimates leading some to suggest the market uncertainty is driving the price of the hard assets higher. our next guest is an expert in the field of the gemstone company with the international business and had a turnover over 100 million pounds last year. please to welcome you on the set, steve, let's talk about that pink diamond, are they very rare? >> very rare gemstone indeed. diamonds, anything with a gemstone has to be rare by nature. but to get one that large, such a bright color. yeah, pretty unique. >> diamonds obviously are a rare asset, in that sense, they're similar to gold. they're not used by investors

the same as gold is. why is that? >> they're treated a little different than gold because gold has many different uses. a diamond pretty much other than industrial use is something that you wear. something of beauty. i always describe diamonded and colored gemstones as wearable investments. you wouldn't walk around with your papers of stogs, but diamonds are kind of wearable investments. we've seen rises in diamond prices, ruby, sapphires, emeralds and many gemstone. >> and other specific gems or sizes that are quite popular on your site? >> i think today, less is more. so actually seeing with the exception of the big diamond, we're actually seeing that it's growing on the smaller size at the moment. trends change. it's about big gemstones, sometimes, smaller stones. overall, the smaller stones and more subtle pieces are getting more valuable. >> i was going to say, a recent study came out from emory

university yesterday that shows the bigger the engagement ring, the higher rate of divorce. >> does that mean that the lady who wants the big diamond ring is the showoff and maybe not so stable, i don't know? >> let's just focus on different types of gemstones, because i think you think that, you know, the obsession with diamonds and very much that. it's an obsession. and other gemstones, am i right in saying are rare and should be higher priced? >> absolutely. if you go back far to the late 1800s. in africa, all the diamonds in the world would fit in one suitcase. whereas, rubies, diamonds and satisfacto sapphires were found around the globe. then art 1940s, tiffanies and so on, diamonds became the number

one selling gem. >> just one other question on your company itself. you sell 70% of your sales through tv, rather of trend in today's world? >> yes, on tv in the uk and america, we have the jewelry shopping channels. and the great thing on the television, you can tell the whole story of where the gemstone comes from, the folklore, the kings and queens. and it loses a bit of that passion. >> well steve, thank you very much for joining us, steve bennett, ceo of the genuine gemstone company. >> i also want to get you a look at u.s. futures and how they're trading, given the selloff we saw. overnight, the s&p 500 indicating a higher open, just fractionally though the dow jones industrial trading down around 8 points nasdaq which did see a selloff yesterday down 13 points. commodities with loyal down at a two-year low, a lot of that with

tensions overseas and greenback resilience. crude trading, $85 a barrel. down about 1.5%. let's get an update on european markets, they are trading at new lows for the trading session. germany offers as much as 1.5%. the ftse 100 almost off 1%. france, italy also up. of course, this comes after a week of poor data out of germany in production for industrial production for machinery, and trade balance. we also have the imf which is global growth forecast with europe being -- bearing the brunt of that downgrade. >> yeah, we want to take a look at the volatility index, up 24%, hitting an eight-year high showing there is more trepidation in the market. trading at 8.76 that is still low below it's historical avenue

of 20. getting close to trading above its historical avenue, but again we have to see if that increases given the global concerns as well as weak economic data out of europe. >> volatility coming back in markets. it has in markets already. the dollar today regaining a little bit of territory against the major currencies. but this week has actually been a negative week for the u.s. dollar. the broader u.s. dollar index did have gains for 12 weeks in a row. and this maybe the first week in '13 where the dollar index is negative territory. slight gains today though. and a roller coaster ride for the equity market but is there value with a given dip in the markets? we're going to discuss that next. ncing. your aspirations, our analytics. your goals, our technology.

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and welcome to "worldwide exchange." i'm seema mody. after suffering its worst point drop since june of 2013, european markets wallow after lowest levels of the year. >> basic resources lead to decli decline. larry summer clashes in a cnn debate. but the prime minister insists there will be no change in the

european rules. >> nobody is asking -- no one is asking, nor the french government is asking for any change of european rules. breaking up. cementec is the latest firm to announce it's splitting into two separate companies, following in the footsteps of ebay and hp. >> you're watching worldwide exchange, bringing you business news from around the globe. >> welcome. it's been a big week for the markets with volatility. the dow witnessing three consecutive days of triple-digit moves and seeing big market swings across the board, wilfred. >> the biggest one is weak data out of theu eurozone. weaker data out of europe was positive for markets. it led people to believe we would get stronger ecb lending.

bad news is very much bad news for the markets. investors are questioning whether the climate can be helped at all. speech in washington really did spark that sell-off in the u.s. on that note, let's take a look at the premarket session. the dow down about 15 points in premarket trade. s&p 500 up fractionally. nasdaq down 18 points in premarket trade, worst percentage drop for the dow. goldman sachs, chevron weighing on the index. the volatility index. fear is definitely back in the game. you can see that the volatility index up 24% just in yesterday's session of trading, right around 18. keep in mind, to put this move into perspective, it's trading well below its historical average of 20. indicating trepidation is in the market. let's take a look at the european markets. we have seen trading moving to

the downside with the ftse 100. now down triple digits at session lows, down 1.7%, the xetra dax. trade data yesterday also weighing on investors' sentiment. france showing some red, down 51 points. italy, even though we got that crucial confidence, italian markets also down about 220 points. so, wilfred, it could be a big market day. >> absolutely, it could. i'm going to bring in this map. so much volatility. on wednesday, this map was all red. thursday when we stood here, it was all green and today all red again. a lot of volatility coming into equity markets. what does that mean for bonds? it's meant that bonds have been bit up. uncertainty we're seeing have pushed prices up, yields down. 10-year u.s. trsh treasury at 1.

it seems a week is a long time in the markets. the german ten-year has pushed below. it's been moving around. the magnitude of the movement, of course, smaller, because it's already so very low. the ten-year gichlt gilt in the uk, 2.24%. let's go into for us, the u.s. dollar has bounced back a little bit. this week is on track where the u.s. dollar index will, in fact, for the first time in 30 weeks will not have gains. euro has bounced back a little bit at 1.2667. u.s. dollar against the yen,

107.93. down another percent today. ninex, wti down significantly yesterday gold, although it's town today, it has had a rally today, push for safety, pushing up the precious metal, 1,221.5. let's have a check of the markets in asia. >> what a way to round off the week. big risk-off move, let alone the s s&p. volatility hitting sentiment over here. one of the reasons why the australian market is something of a double whammy. it wasn't just the global picture of the sell-off on wall street. it was also the fact that the chinese have increased import tariffs on coals, hitting the

big miners. we've seen composure in the dollar, to salvage -- it didn't really salvage sentiment, 1.2%. expect more volatility in our markets. the data docket state side will be very busy. retail sales, industrial production, also inflation prints from the u.s. and the euro area, that will be very important. it could lead to more gyrations in our markets. back to you now. >> thanks very much for that, sri. we're now giving you a live shot from oslo where the nobel peace prize has been announced by the chairman of the committee. there are two winners. one of them is malala yeousayou.

she now lives with her family in the uk. >> and kailash satyarthi, active in the movement against child labor since the 1990s and he has also won the nobel peace prize. we're waiting to see both of them receive the prize from the double prize commission. we'll be giving you that speech shortly. >> and the united states' ability to reach velocity is crucial to the global recovery, that is the view of the bank governor of india, speaking exclusively to cnbc in washington. we asked him if he believe d --

>> what is going to do in reaction to events. is the u.s. going to tighten more? what's going to happen in europe and so on? there's an underlying economy also. one of the biggest concerns is that the world economy is not picking up. >> he is saying, of course, that monetary policy expectations are a big cause of volatility. i contend with that. i think it's come away with that. that used to be driving markets. over the last week it looks like it's fundamental growth outlook, particularly in europe, leading markets down. >> we've seen inflow of capital into emerging markets. rates have been so low in the u.s. the prospect of rising rates in the u.s., will that result into money floeg back into the developing economy? you take a look at the market swings. in the first ten days in october here in the u.s., the dow starting the week -- starting the month down about 367 points. we got that better than expected jobs report, wilfred, last week,

resulting in markets rebounding. this week we're down in the red, about 316 points. >> the big point, of course, as you're suggesting is not justify the markets have been going up and down, but huge amounts. 1.5%s had not been an abnormal move and volatility shooting. that shows a huge level of uncertainty amongst investors. >> you have to wonder if these big market swings will be the norm going forward. if that's the case, if you're an investor and you're allocated in this market, how do you make mon sni whemoney? where do you put your money? >> open to the downside. where do you think markets are headed? john tweeted in earlier saying we're going into another recession, then a depression that will make 1929 look like a slowdown. that's a particularly negative view. do you agree with him? join the conversation here on

"worldwide exchange." get in touch with us by e-mail @cnbcwex. our personal handles are on the screen now. where do you think the markets are headed? let's get you a rundown of what to watch this trading day. september import prices are utilize at 8:30 am, forecast to rise by 1.7%. trio of fed officials are speak today. philly fed president, kansas city esther george. symantec is the latest tech firm to break itself up into two separate companies following the footsteps of ebay and hp. slow pc sales have hurt symantec's business while data management has reduced the va e value, which was considered a cash cow when the company bought

it. frankfurt, down after the back of a 12% gain over the last three months. amazon reportedly plans to open its first physical store in manhattan, just in time for the holiday season. "the wall street journal" says the store will be about a block from harold square. customers will be able to make returns and exchanges and pick up online orders. is it possible the store could be a showroom for amazon products such as the kindle and the fire smart phone. amazon shares on the back of that report was trading lower in the u.s. trading session. right now down by around 1% in frankfurt. they've had online success. will that translate into the retail world as well. >> i think it's a very weird move but i wouldn't bet against them. they usually get these kind of things right. a big trend in clicking collect. this gives them a means to do

that rather than just simple deliveries. >> sure. moving on, microsoft ceonadalia is backing off comments he made. he was asking advice about asking for a raise. that set the twitter verse on fire, given recent studies on how women's salaries lag mens. he said i was inarticulate in how women should ask for a raise. our industry must close gender pay gap so a raise is not needed because of a bias. >> we hear from one strategist who says don't fear the level of volatility but the speed at which it's increasing. find out why after this break.

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welcome back. these are your headlines. u.s. markets set for another day of declines, as fears over global growth weigh on equities and commodities. symantec splits into two companies, one focusing on storage. and nobel peace prize goes

to malala yousafzai and a child labor activist. down about three-quarters percent at the open. germany is leading the push down. it's now down a massive 2%. we've had a string of bad data out of germany, weighing on sentiment. but it's weighing on sentiment across europe. ftse 100 down 1.25%. >> u.s. futures pointing to a lower open. dow jones premarket trade down about 52 points. nasdaq down 24. the s&p 500 down three. the vichlt x, volatility index, gauge of fear of trading is down. it seems we will have a lower open on wall street. we'll continue to watch those futures very closely. on that note, let's bring in

michael perez. michael, a lot of concern, given the rise and volatility, sell-off not just in the u.s. but globally as we speak. where do you think it is right to put money right now? we've seen defensive sectors like utilities outperform despite the broader market selloff. >> right. i would say right now that, you know, clearly there's a risk-off field to the market. we're doing some things that we haven't seen in quite a while, meaning the last two years here. you know, look closely at technical levels. if we get down to 1904 and the s&p, i'm going to start edging and buying some stocks here. i'm probably not as negative as a lot of people are. i think one comment you were referring earlier to either the rise in volatility, which has really been the theme, if anything was, this week certainly here in the united states. and what's really striking about the volatility environment right

now is that it's not that the vix closed above 18 yesterday. it's done that several times over the last couple of years. what's really different right now is the rate of expansion in volatility. you could actually quantify it. the fastest we've seen since 2011. that's what's unnerved people and gotten people to think, wait, this time it's really different. we're not going to do this nice tidy 5% selloff, 130-day moving average and take a nice bead up to off that. volatility is expanding. that's unnerving a lot of people. i think it's very important to understand that volatility levels in the second quarter had become extraordinarily low across assets and that was not really healthy for the broader capital markets. >> does this volatility spike, does that mean that the bull run on equities is over?

>> no, not at all. i'm saying the contrary. i think we actually -- this is a natural evolution that, you know, maybe the selloffs here are a little bit bigger than what we've become accustomed to over the last 18, 20 months. but i think it's a natural and very healthy evolution. look, we all know that rates e are, you know, set to expansion. the question is how much and what path will that expansion take. my own view is that it will be a pretty managed expansion, carefully orchestrated by our central bank and presumably by other central banks as well. let's not forget, the companies here in the united states have been able to eek out very good earnings and a variety of gdp environments. >> right. >> even through -- >> during these periods of high volatility, we've been seeing

investors gravitate toward the fixed income market. ten-year yield dropping below 8.2%, the lowest since april 2013. is that where investors should go right now? >> i don't think so. some investors may need to go there for certain specific issues, you know, regarding their own particular fund, perhaps. but for most investors, i don't think that is necessarily a good value. it's important to point out here that just the dividend yield relative to the ten-year yield right now is just about 30 basis points, which is very small when you consider that, you know, if earnings can grow 6% or 7%, 8% per year against that, you have a built-in inflation hedge. i think equities are going to continue to show strong relative value. >> michael, thanks for now. stick with us. we'll be talking about earning

season in a few minutes. >> wilfred, global growth concerns weighing on sentiment. could earnings give respite to the market? we'll discuss that next.

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and let's get a look at the u.s. futures. as we get closer to the u.s.

open, futures continue to dip. s&p 500 was up initially in premarket trade, now indicating a lower open by four points. look at the dow jones industrial, indicating a move of 50 points to the down side, worsening as the time continues as we wait for wall street to open in a couple of hours, nasdaq lower by 23 points this sell-off continues as we follow the european sell-off. take a look at the volatility index, gauge of fear in the market. it traded up by around 24% in yesterday's trade at an eight-month high. putting that into perspective, trading below its historical average of 20. fear definitely back in the game. >> one of the reasons, seema, for the spike in volatility has been data out of germany. let's look at the dax over the last seven days, down 2.2% today. bad data out of germany monday, tuesday, wednesday and thursday. it rallied a little bit, presumably on the thought that

we would get more lending. the theme has been contrary to what we've seen the last month or so. that is bad news from germany has led to bad moves in the market rather than before when we thought bad moves might lead to more easing and positive moves. germany down 2.2% today, weighing on europe as a whole. let's look at the other markets as you can see there. weakness all across european markets. u.s. third quarter earning season kicks into high gear with banks taking center stage. jp morgan chase, wells fargo, citigroup. intel getting the ball rolling. we hear from bank of america wednesday, black rock as well as ebay and netflix. later in the week, goldman sachs and google will steal the show. slowdown in the eurozone has

been a point of contention for investors. >> certainly it's been a big issue, if you look at ford motor. they certainly have articulated they're going to take major hits probably internationally. that hit the stock pretty hard a couple of weeks ago. i think one of the themes that will be -- i'll be watching closely is the relative performance of small caps versus large caps. small caps over here have led the way down on this whole kind of move -- this whole rollover. huge performers this year. on this earning season with less exposure to europe, it will be interesting to see whether the small caps can, you know, actually outshine here, at least on a relative basis. and provide some support there. but, you know, one point i would make also is that as we get into the earning season, a lot of the bad news related to europe really already is in the stock prices. you can see it in ford,

caterpillar, deere, these companies with not just european but global exposure have been taking it on the chin here with this very strong dollar. >> michael, thanks very much for that. michael purves, chief global specialist at weeden. if earnings season is very positive, will the u.s. market be able to shrug off what's been happening in europe? >> it hasn't been able to do that yet. still to come on this show, austerity on trial. we will discuss that next on "worldwide exchange." when change is in the air you see things in a whole new way.

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welcome back to "worldwide exchange." i'm seema mody. >> and i'm wilfred ross. >> european markets again at the lows of the day. >> austerity is not working. summers clashes germany's prime minister insists there will be no change to the strict spending rules. >> we have enough flexibility in the european rules. nobody is asking. no one is asking, nor the french

government asking for a change in the rules. >> symantec is the latest tech firm announcing it's splitting up into two separate companies following in the footsteps of ebay and hp. the nobel peace prize goes to malala yousafzai. she shares the award with a children's activist. >> if you're just tuning in, thank you for joining us on this friday morning after what has been a global sell-off for the equity market. the s&p 500 down, tech heavy nasdaq which has seen a

significant sign. u.s. stocks yesterday erasing the rally. looking at the volatility index up 24 points in yesterday's trade at an eight-month high. down from its all-time high. russell 2,000 seeing the leader. big market swings will not be the norm. something we'll get an answer to later today. following the selloff in asia, markets are trading lower. out of germany, a source of concern for investors considering it's supposed to be the strong man of europe. now down triple digits, 200 points or 2.2%, xetra. the ftse continues its decline at 1.45%.

the euro stocks 50, good gauge of stocks trading at 2,996, trading down 47%, 1.56%. good to give you perspective on how this index has been trading, on renewed concerns about the european economy on whether it can revive the economy. that, of course, has been the big concern. >> the dax is down 2.62%, just today. and the negativity driven, weighing on sentiment not just in europe but also in the u.s. that's the most interesting thing, seema, in the last couple of hours. u.s. futures were pointing to a

positive open until the last hour where the german markets have taken a turn to the south i wonder why the german market, in particular, is weighing so heavily on the u.s. market with fundamentals looking pretty good. >> two pieces of data. trade data plunging to its lowest level in 2009 and weaker than expected production data that came out earlier this week sparked a sell i don't have in europe. he says that european governments have to take more control and implement structure reform and they can't just rely on the ecb. >> exactly. the big change in tune this week compared to the last few months is the bad news is meaning bad news for the markets. negative data out of germany, sending markets, as can you see there, down 2.3% and all the major bosses in europe down 1.5%, seema. >> i want to point our attention to the s&p 500. we've been seeing a significant

decline in the benchmark index the past couple of days. global growth concerns being renewed with that imf report, downgrading its global growth forecast. technicals, i'm hearing here are at play. s&p 500 getting close to breaking its average of 1904, trading above that at 1928 at this point. something traders are watching very closely. >> indeed, viewers have been tweeting in about the market selloff this morning. ted darling says low volatility followed by higher volatility as markets adjust to expectations and earnings. that certainly sounds sensible. teama tweets in. europe is one of the biggest marks for american exporters and 40% of s&p revenues it's a natural reaction. very valid point. do get in touch with us throughout the show. tweet us at cnbc wex or worldwide @cnbc.com.

imf meeting in washington, concerns over europe's sluggish recovery are topping the agenda. german finance minister schauble and larry summers had a heated exchange on the cnbc exclusive panel about whether the eurozone needs more stimulus. >> because we work together and, therefore, i remind in the imf that reality is sometimes more complex than in some teaching books. >> very quickly. >> i think you have to decide whether you think it's working or whether you think it's not. if you think it's working you should continue with the strategy that's been in place the last few years. if you think that it's working only in the very limited sense

that you preserve the euro as a common area and you prevented major financial institutions from failing, but virtually every year growth has been far short of what was expected and you've been surprised every year by the weakness of growth and by the extent of deinflammationary forces then you think, as i believe, that you need a discontinuity of strategy. in particular, you need to recognize this, which is a central principle for the united states, which is a central principle for fdr. make no mistake, we are dealing with something that approaches the depression. it is the central irony of financial crisis that while it is caused by too much borrowing, too much lending and too much spending, it is only resolved

with more continence, more lending, more borrowing and more spending. the point is that strengthening demand and avoiding deinflammation makes structural reform easier. i know of no -- i know of many successful cases where structural reform accompanied dealing with excessive inflation. i know of no case in which deflation with his a powerful stir to structural reform. >> let's talk about the effect that this negativity has had on markets. we'll touch on gold, in the red today. that doesn't tell the full story. it's set for its strongest weak since june on these global growth fears, a bit of a safe haven. gold 1,22.3. the big story, of course, is the oil market, dipped below 90

dollars yesterday, down a further half percent today, a four-year low. u.s. crude, wti, at its lowest level since 2012 and nymex, big move, down 1.3%. as oil prices continue to fall, energy stocks have been underperforming. yesterday's trade, energy was the worst performing sector on the s&p 500. what make that is interesting, we got the fmoc minute meeting minutes that said it would not rise as soon as expected. you would think investors would go into dividend-paying stocks because they're looking for income. that haen been the case. price of oil weighing on energy stocks. chevron, one "the biggest loser"s on the dow intext. >> biggest loser trading today. if german growth, german/european growth is leading markets down across the board, there will be pockets of opportunity.

energy prices come off. the dollar is very, very high. this volatility does create opportunities. >> gold and silver are also selling off. typically, when you do see this market volatility, investors get into safe haven assets like treasuries, which we did see yesterday, the yield on the ten-year note at 2.28%, lowest levels since june of 2013. investors are not getting into the other safe haven assets like gold and silver. >> gold are fractionally today, but set for its strongest weak. let's move on and take a look at today's other top stories. ben bernanke will be back on the stand in the lawsuit over aig's bailout. former fed chairman thursday gave mostly curt answers to questions and appeared slightly annoyed at having to testify at all. bernanke defended the package, including the stake taken by the u.s. government. hank greenberg filed the suit, saying that they were treated unfairly and not compensated

properly by the government. backing off comments made at a conference from women and computing. he was asked for advice about asking for a raise. he said it's not about asking for pay hikes and women should trust in the system to reward them as they go along, saying that's just good karma. that set the twitter verse on fire, given recent studies how women's salaries lag mens. he said it was inarticulate regarding how women should ask for a raise. our industry must close gender pay gaps so a raise is not needed because of a bias. joe jackson had a big hit in the '80s with a song "breaking us in two." that could be the theme song in silicon valley as another big tech firm is headed for a split. details after the break. [ male announcer ] ours was the first modern airliner,

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for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov and a roller coaster ride from the equity market this month. nearly a 2,000-point move in the dow in october. we're only 10 days in. concerns about slowing growth in china, geopolitical tensions. traders have been buying the dip. as you can see, we lost about 367 points earlier this month. that came back with a 425-point

gain, better-than-expect ed helped the market but was met with selling this week. three back-to-back triple-digit selloffs in the down. the market seems unconvinced that policy makers are going to do their part in reviving their european economy. we are down more than 300 points for the week. wilfred? >> i don't think it's a debate. the size of the move suggests they're not just concerned that policy makers won't act, but they've left things too late. moving on, symantec is heading for a split, becoming the latest tech firm to break itself up. kate joins us now. >> two separate traded companies and expects the spinoff to be complete by the end of next year. one company will be focused on security while the other will

concentrate on data storage and backup. slowing pc sales have hurt their business. sluggish demand for storage has dropped the value. the storage business struggled in 2013. that unit's operating income dropped 19% in the past year as revenue fell 4%. this breakup comes during a banner year for spinoffs. more than 60 are expected to be completed by the end of the year. the most since 2000. the most recent announced this month, hp separating its pc and printer unit from its corporate hardware and services business and ebay spinning off pay pal. analysts say symantec's move could make the company more attractive to buyers. a null of suitors could be interested in cisco systems and net app. michael brown will continue on as symantec's ceo.

stock is down more than 5%, lagging many of its software rivals. back to you. >> thank you very much, kate. and in other tech news, amazon reportedly plans to open its first physical store in manhattan, just in time for the holiday season. "the wall street journal" says the store will be on west 34th street, about a block from harold square and macy's flag ship store. customers will be able to make returns and exchanges and pick up online orders. it's possible the store could also be a showroom for amazon products such as the kindle and fire smart phone. broader selloff in tech last night, we saw amazon shares move lower, following the broader selloff in the u.s. markets. in frankfurt, shares down about 1.6%. google is thinking big. reports say they plan to launch a new smart phone with a 5.9" screen larger than the iphone 6 plus and samsung galaxy note.

the phone, code named shamu, after the killer whale at the sea world park, they will release a new version of android along with the phone. trading down 2.3% in frankfurt. tesla ceo unveiled an all-new model of the d, which stands for dual motor, which improves the car's performance and help it better compete with other luxury sedans. top speed of 155 miles per hour and goes from zero to 60 in 2.3 seconds. tesla shares were on move yesterday, down 4% in frankfurt. >> we're heading for a break. first, your headlines. u.s. markets set for another day of decline as fears over global growth weighs on equities and commodities. symantec splits itself into two businesses, focusing on storage

and the other on security. and nobel peace prize goes to malala yousafzai and a child activist. stay with us.

welcome back. let's have a look at european markets. red across the board. it's now down as much as 1.6%. germany down 2%, have been down as much as 2.3%, a moment ago. but significant declines across all european markets led by germany, following poor data out of germany all week, which has weighed on global growth concerns. >> it absolutely has, wilfred, following the selloff in asia and europe, futures in the u.s. continue to weaken. the s&p 500 down about 7 points

in premarket trade at 1,918, getting close to breaking its moving day average of 1906, something that technical traders will be watching. the dow has closed up or down 100 points in 11 of the past 17 sessions, most volatile period of u.s. stocks in five months. let's get you a rundown of what to watch this trading day. september import prices are out at 8:30 am eastern, forecasted to rise by 4.7%. fed officials are speaking today. philly fed president, kansas city city's esther george and richmond's jeffrey lacquer. how do you make money in these markets? here are what some of our experts have been telling us throughout the morning. >> 120 when? >> within the next, let's say, three months. >> and thereafter, is there a pivot point or -- >> mostly it goes a lot lower. let's just watch and wait, i

think. you know, to me, fair value on this is somewhere between 115 and 120. >> i think it's going down further. and now a new range of $75 to 90 something, like that. to some extent, this is almost voodoo because we don't know how far the sweating can actually go. >> we're really looking at something in line with dividends plus earnings growth. put those two together, you can probably get to 9% or 10%, that kind of level. much more muted returns. as we look at one or two years, earning stocks come through, as the economy slowly starts to heal, we think those returns are achievable. >> joining us now is president

at traders audio.com. we've seen volatility the past couple of days. defensive stocks have been outperforming those, consumer staples and utilities. is that the plan going forward, find i finding -- >> i think so. the bullish trend in this market we've seen the last few years, there's a lot of concern about this recent pullback, concerns in terms of a global economic slowdown. for the most part this is a small pullback relative to what we have been seeing in terms of the bigger picture, in terms of the rally we've been seeing. even for the most part, i'm shocked to hear everybody's concern in terms of the levels that we're trading right now. we have really yet to take out any significant areas of support. as of right now, as of the overnight session we're seeing right now, we did take out one level in the s&ps, right around that 1920 area. we really have yet to see

follow-through associated with that even. at this point right now we're looking at the 1918 levels, still very much support for this market. you can go all the way back to the august lows of around 1890. again while we have seen some decline, this was anticipated. everybody knew this was coming. for the most part, even though you've mentioned, it's been very volatile. it's been somewhat orderly for the most part. we have yet to see a real blowout to the down side, if you will. >> i'm not so sure i agree it's been orderly, ben. let's focus on the fact that volatility has really spiked. if it's been led by european growth concerns does that create great opportunities to get into the market in the u.s. and whereabouts are you looking? >> well, i think that it does. i mean, if it turns out that this is just a bit of a pullback related to concerns, yes, this will end up being a buy opportunity. at this point i mentioned the levels i already talked about. for example, right now we're at

a perfect level for a great risk/reward opportunity, if you will, if you're still bullish, looking for a buy side opportunity with very well-defined risks below right now. there's great buy opportunities at this level relative to what we have been seeing in terms of price activity. but, again, those buy opportunities and the beauty of that is that they provide risk factors. there's never any guarantee. what you're trying to do is manage your risk associated with the position. and, again, we have good, well defined risk parameters. if it's just based on concerns out of europe and it turns out to be one of those kind of fading or one of those sort of, you know, kind of quick, if you will, through the market type corrections, then, yeah, i think this will turn out to be one of the dips we've seen, every other dip that's been bought over the last three years. >> absolutely. ben lichenstein, president of

traders audio.com. s&p 500 indicating a lower open.

good morning. welcome to ""squawk box"," global markets selling off. sending jitters around the world. up 300, down 300, up, down, up, down. today, reeling from yesterday. don't forget, 2%. we have to keep things in perspective. the major averages are closing at their lowest levels in two months after that 334-point tumble. now, is this positive or negative? it does reflect negativity. and that's crude. crumbling prices. what does it mean in it's a global tax cut, oil prices falling. below $85.

a good thing. and find out why there's no joking around when it comes to ebola, especially on a crowded plane. friday, october 10th, 2014. ""squawk box"" begins everybody. welcome to squawk box on cnbc. things have been volatile. they can change on a dime. futures are indicated lower. dow down 60 points below fair value even after the massive declines yesterday, the dow down 334 points. the s&p 500 down by 40 points. you can see the futures are indicated weaker as well. the dow is coming off the worst percent an point drop in eight