welcome to "worldwide exchange." i'm wilfred frost. >> i'm seema mody. these are your headlines from around the world. european shares open lower with the dow reversing all the gains, but the bank of japan government tells cnbc it's a healthy correction. >> i don't think, at this moment, there's kind of -- >> and france fights back. the french minister says the outlook is a european issue, but

the chief operating officer disagrees saying the government is to blame. >> of course it's about france. it's been a change in the outlook. it's a strong rating, aa, but we indeed believe the risks are increasingly tilted toward the downside. a blurry outlook at luxottica. shares slump as the ceo steps down after just six weeks on the job. a texas health care worker becomes the first person to contract ebola in the united states. the cdc says protocols must have been breached. you're watching "worldwide exchange" bringing you business news from around the globe. welcome on this monday morning. the euro stock is shedding 2.7%.

and today it's off .6% following the lead from asia also down. the stoxx 50 is down .40%. look at the individual markets, germany had a massive 4.4%. it continues today. the ftse is put on negative watch as a lagger down half a percent. italy down .40%. the u.s. bond market is closed but it's columbus day. on friday we saw the 30-year go to the lowest levels in almost a year. the rush for safety which has happened in the u.s. bond market happening in pretty much across the board. the 10-year german is below. and the u.k. at 2.2% seeing compression over last week with a relative safehaven in europe. italy is at 2.3%.

and france is on 1.25%. if you would have held out, you would have made 48%. why would mario draghi do quantitative easing when he could have created this opportunity for the government to carry out supplies. we'll look at the u.s. dollar on friday, it was the first week in 13 that didn't post outright gains. we can understand why u.s. equity risk assets are doing bad in the face of weak global growth, but why the dollar as well that is usually a safehaven trade. today it's at 1.2673. the u.s. dollar is weak against the yen, 107.2. the aussie/dollar bouncing back .55. we'll get a look at what's

happening in asia overnight. sri is standing by in singapore. good morning. >> reporter: good morning, wilfred. another big risk of the day for the asian markets following the slide on wall street. the better than expected china trade numbers for the month of september weren't enough to really salvage the markets. yes, we saw a degree of composure on the hang seng, which is interesting considering that's the occupy movement that is not giving up. they are not backing down despite the fact that the ceo said they have zero chance of succeeding. the shanghai composite did pay back some of the losses today. and ended at 2,366. despite the fact, as i said, that we have better than expected trade numbers. but there's still underlying stress in the broad economy. you can't ignore that. you mentioned japan is off today for sports day. so that's really taking the wind out of some of the volumes and the activities. this is probably one of the

reasons we are seeing the outsized losses in the broader market, but expect to see more volatility before the week is done. we have a lot of data on the docket stateside speaking to boston fed, that is janette yellen. wilfred, back to you in london. thank you very much. >> just spoke to bank of japan governor on the sidelines of the imf world bank annual meeting in washington, d.c. and asked whether he was concerned about recent market volatility. >> it is true that in the last couple of weeks volatility in the u.s. markets including currency markets, stock markets, have increased somewhat. but still the numbers are quite low.

and if anything the imf was concerned about the low level of volatilities in various financial markets. and if there's any trend of diversion, extreme low volatilities would as some say may go up. so in the last couple of weeks, suddenly volatilities have slightly been heightened. but the number is still low. and as politics genuinely are concerned, basically the dollar has appreciated, not just against the yen, but against the euro, against economic currencies, frequent currencies, as well as russian and european

currencies. >> kuroda also cautioned that the trend could be short lived. >> lower oil prices are good for asia because asia is the largest import in the world. not just japan but korea, china, india, pakistan. even indonesia now is an oil importer. so asia has a whole is a huge oil importer. and the grind on prices would be very beneficial to the entire asian economists, also for china, pakistan, and so on. but having said that, oil prices

tend to fluctuate. at this stage, destate the heightened geopolitical risks in the middle east, somehow oil prices continue to climb. maybe increased supply by some african countries or substantial increase to energy production in this country in the u.s. so this is a surprise factor, which might reduce oil prices. >> and joining us now is gotham veteran strategist. i want to talk about the markets last week, what was driving that? >> it's a combination of concerns of qe coming to an end, some witness the political growth, the geopolitical risks we are seeing around the world. and people were a bit too extended into risk. and so it's a natural cause.

remember, we are also in the season of a volatile period of october. i don't think it will be too much different this time around also. >> if this is led by fears over european growth and general growth n particular, why was the u.s. moving so heavily to the downside as well? >> i think the u.s. ultimately fell, but if you look at how much the u.s. is falling compared to european markets, it's half what the european markets have done. so it is a case of sentiment driving the u.s. to a certain degree. there are some concerns about industry policy in the u.s. and around fed inflection points we do get volatility this time out. so the u.s. is kind of playing catch-up. and in the u.s., it feels like it could have another couple of sessions to just bottom out where the levels are.

but europe, i think, has seen the sell-off. and interestingly, it's probably a good value right now. >> earnings will take center stage in the u.s. analysts saying 4.5% jump in profitability this earning season. do you think earnings could, in fact, provide a rescue to the stock market? >> absolutely. that's what we see in the current quarter with earnings kicking it off. you have 50 companies reporting this week. and that will give us a good cue. and overall earnings have been relatively robust. the weakness we have seen in europe, we have seen the negative side of it, but what we haven't yet seen is the impact of the ecb stimulus measure. these are only just beginning to come through. so we are kind of reacting in the lagging way, the economic conditions knew we were going to slow down, but we are looking forward to the possibility that the balance sheet is going to be marketedly higher as we progress. >> in terms of where one should

allocate their capital, goldman sachs is recommending clients to focus on companies with high domestic sales in the u.s. do you think that's a good strategy going forward? >> the u.s. economy is definitely leading the way. it is also a pricier market. so i think if you want to be absolutely defensive and that's clearly the right place to go. but the way the markets have moved right now, i think some of the industrials, some of the cyclical stocks, some of those less effective by duration at the long end might actually fare relatively well because there are pockets of value now emerging. >> gautum, stick with us. we'll chat more in a moment. the bank of england president mark carney sat down with cnbc's mike liesman this weekend. hear what he had to say at 6:00 a.m. eastern time. coming up on the show,

twitter beats apple and facebook in the race to control your money transfers, but do you trust paying via a tweet? let us know your thoughts. and chrysler is shifting up a gear with a new york stock listing passing a crucial milemarker on his expansion plan. the ceo will speak to phil lebeau first on cnbc straight after ringing the u.s. opening bell and we get a preview. and as cloud storage provider box is ready to unwrap their ipo? find without the phil levy. this is a burrito made with

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only what happens when it does get fire adapted now at fireadapted.org amid the concern over a slowdown in the eurozone, s&p cuts france's outlack to negative friday evening after concerns over the country's economic recovery. the news came just as the interview happened with france's finance minister. this was his immediate reaction. >> translator: i wish we would have better news and not worse news given the kind of policies we are implementing. what i want to say also is that france today has a policy based on two principles. first, we have to lower the charges imposed on companies. and that's what we're doing to get more competitiveness to our companies, to allow them to work

better, to innovate, to hire people. second, we come up with savings. for several years during previous governments, we solved fis value problems by selling taxes. that's over. we lowered them for our companies and we financed companies like never don we are today. >> can i just follow-up with that question then? because there's been a downgrade on a credit rating on the outlook for the credit rating. how do you respond to credit rating moves? >> translator: s&p has changed its outlook on a lot of european countries recently so it's all over the euro zone. it's not country specific. we have maintained our aa rating. it's the outlook changing on many countries and this is why i

was saying earlier, it's not a matter of looking at france in isolation. it's a eurozone issue and the eurozone needs stronger growth to face today's challenges. now it wasn't just france, the s&p also stripped finland of its prized aa credit rating to aaa. so it is france and finland. interestingly enough, if you look at the other countries with a aaa-rating, we can go full screen with countries rated at aaa, canada, denmark, germany, l lexembourg, norway, singapore, sweden and switzerland. a downgrade for france over the weekend. gautum, we are hearing it is not a france specific issue and a eurozone issue. is that fair? >> that is fair. the normal levels we are seeing

does make debt sustainability a problem. the ecb is trying to make sure the total rates are low, the spreads are low and overall that the inflation outlook improves such that we can get high normal growth and that's the key to debt sustainability. >> i also want to bring up the finland downgrade because specifically they cited worsening demographics leading to stagnant growth for many years to come. interesting that they pointed to that as a reason. and does that mean that the next on the list could well be germany given their demographics are worse anything as well? >> i think demographics for all major sort of economies, developed economies are worse anything. it's a case of population growth and aging population. and that's not really just a problem that's the eurozone's. it's also to the u.k. and japan. so we are all heading down that road and it just becomes more

imperative to work at the core and to deliver some inflation. >> and obviously lots of discussion goes on as to whether we'll see outright quantitative easing in order to get inflation, but bond yields are at such low levels, won't mr. draghi be saying, look, guys, i created an opportunity for you to carry out supply forms. it's up to you now. >> i think he could but he won't. he's been able to push through a lot and is not going to stop now. it's really important that the markets see that draghi is pretty much going full throttle and is encountering the german opposition and, you know, not facing it head-on but side-stepping to deliver the policies of better asset market performance, which is the key to confidence and delivering that sustainable growth, which is still a long way away yet. so i don't think he'll be easing up any time soon. >> gautam, thank you for joining

us. that was gautam patra. and bp's offering to be the first to offer payments over twitter. the website in particular beat rivals like facebook to incorporate this technology. if it continues, this will happen after the launch buy button was released last week. would you feel comfortable transferring money over any social platform? join the conversation on worldwide exchange and get in touch with us at worldwide@cnbc.com, tweet us @cbswex or the handle is at the bottom of the screen. the social media companies could be seen as a rising threat to the banks as they look to strengthen their payment business, which will be something interesting to watch. >> i think this is a big threat to ecommerce companies.

and we talked about this a lot when the alibaba ipo came down and how much people based evaluation on 80% of the market share, but that doesn't include social media stocks having a say in the ecommerce business and these click to buy buttons entries to payment companies could disrupt this. >> bring us your thoughts on that story as well. shares in chinese developer agile tanked after the founder and chairman chen li zen. agile also recently called off a rights issue but they assured shareholders they are financially sound. let's dive into the stock moves so far today. the luxottica shares are slumping after news that the

co-ceo is set to resign only six weeks into the job. according to reuters, the move comes after disagreements with the company's chairman and founder. citigroup cut the stock to new thrall on the announcement. claudia is joining us with more. claudia? >> reporter: yes, we are seeing the stock take quite a hit this morning as you were mentioning. it was suspended limit down at the start of trade. the stock clearly suffering from this uncertainty. he has resigned after only six weeks at his new post. he took the place of the ceo after ten years. enrico cavatorta is stepping down because apparently one of the people being evaluated for this position was somebody that

v cavatorta did not feel like he could work with. looking behind this, it's a family issue. the major shareholder has six children and one of these children, the eldest, is on the board and has announced that this one child, this one son will not be on the board when it is renewed at the end of december. now, this -- these shareholder issues are affecting management and as you can see the market is doubtful as to this not having any consequences. we'll see the stock up today but we'll get more news out tonight what's going on behind the scenes at luxottica. that's the worst performer by far. back to you. >> claudia, thank you. maria silva who finished third in the brazil election is giving her endorsement to aecio

neves. neves hopes the 22 million that backed silva will back him when he battles on october 26th in the regular election. we'll talk about this from capital economic this is morning, seema, that cited slow growth is a permanent fixture among the most dynamic world of economies. and this is the head of emerging markets. this is the new normal for emerging markets. this is a lot to change in the outlook for emerging markets. >> for so many as advanced economies, the situation is slowly changing between the u.s. and the u.k. being seen as the bright spots when you take a look at where we are actually seeing the growth. >> and the other big thing for viewers and investors is not what is happening fundamentally in the economies. when we go into a stronger dollar environment, it's what's happening to fund flows n

particular, which economies tend to react negatively when the dollar strengthens. >> and the impact on corporate earnings when they come out in the u.s. still to come on the show, russia's finance minister tells cnbc his country is open for business. find out why he says foreign companies shouldn't be afraid to invest in the sanctions-hit country coming up after the break.

you're watching "worldwide exchange." bringing you business news from around the globe, if. european shares open lower despite the heavy losses last week. the bank of japan governor tells cnbc it's a healthy correction. >> i don't think at this moment there is a bubble developing in the financial market. france fights back. the country's finance minister tells cnbc its outlook downgrade is a european issue, but s&p's chief rating officer disagrees telling us the government is to blame. >> of course it is about france. it's been a change in the

outlook. there's information on the rating, it's a strong rating, aa, but we indeed think that the risks are increasingly tilted toward the downside. a blurry outlook at luxottica. shares in the italian eyewear maker after the ceo steps down just six weeks into the job. and a texas health care worker becomes the first person to contract ebola in the united states. the cdc says protocols must have been breached. let's get you a check on the european markets. renewed concerns over global growth and down beat data out of germany weighed on european stock last week. in fact, they are trading at a one-year low with the xetradax lose as much as 2%. the german market is up .2%. the italian market is in the

green. france and the ftse 100 are slightly trading positive for the session. and the u.s. stocks are closed for columbus day but on friday the ten-year went to 2.3% and third-year go to the lowest level for a year. if we look across the rest of the european market for bonds, the ten-year german bond yields below .90%. the ten-year gilt at 2.2%. the italian is seeing compression within europe over the last week seen as a relative safe trade, 2.33%. and france saw its outlook put on negative on friday at 1.27%. if you held that over the last 12 months, you would have made 48%. it was at 2.5% only a year ago. and a bid for safety of course helping some of the other currencies, including the yen which is trading at a one-month high. we are seen as a safehaven trade during a time of rising

volatility. we are also looking at the dollar trading slightly lower against the yen as well as the euro/dollar. the euro is gaining strength at 1.2678. >> we'll look at the stoxx 50 for what's happening across the market. basically it's flat. it was down as much as .4%. it's rallied in the last half hour. interestingly, the stoxx 600 is down .20%. it's doing a little better today. now we'll move on. vladimir putin's spokesperson says he has told troops stationed near the ukrainian border to return to their usual bases. speaking to the russian media on saturday, he ordered over 70,000 troops to return home from a region bordering eastern ukraine. the fallout from russian sanctions took another turn last week. the nation's parliament gave preliminary approval for aimed compensation to companies and individuals affected by western

sanctions over ukraine. jess spoke to the imf annual meeting last friday to find out what they are trying to send foreign business investors. >> translator: i would like to assure you that those who do business in russia know how to do it and i also want you to know it is profitable to do business in russia. we sea artificial limitations imposed against russia, but we hope these will be listed and welcome foreign investors to come back to russia and begin investing again. >> could i say then, could you give us a guarantee here and now that no foreign company assets will be taken under the sanctions compensation legislation if it's passed? >> translator: one of our priorities is attracting foreign investors into russia. confiscation has not been discussed in russian that. here in d.c. i held a group with foreign investors and just keep

telling them russia is great place to do business and not to be afraid of us. and we are trying to make more favorable conditions for foreign investors to do business in russia. >> let me ask you, through no fault of their own, a number of companies now are going to have problems meeting their foreign currency obligations. you can help some but perhaps as a government you can't help all. some investors are starting to worry that we might see some debt defaults from russian companies because they cannot access western capital markets to refund. what is the risk at this time that we might begin to see selective defaults? >> translator: there's no doubt the imposed sanctions affect the capital flows and some of the big russian company that is have huge investment projects are now experiencing funding problems from the capital markets. this situation exists.

however the government will help them with the foreign exchange liquidity. i see no problem with the servicing of the debts in the russian companies because we have a lot of currency in the reserve and the government and central bank. the second point is we are now focusing on the internal balance of the russian economy. the central bank and government have set up a special enhancing tool and i think it is very competitive. the central bank will have a three-year project in several companies and this is a priority to internal financial markets. >> the central bank is planning to move to inflation targets next year, and that will mean moving the rubel out to the band and fryly floating. but given the pressure to the downside, we've seen on the rubel already, is the timing wrong to embrace this inflation targeting? might it be wise just to push out the timeframe into maybe 2016 or maybe '17 when the

sanctions environment has gone? >> translator: the central bank has its target of 4% inflation in the medium term. and they have subjective liberalizing to the policy and i do agree with this policy because this does not diminish the currency in the government. and my personal opinion is the flexible exchange rate will restore the balance of payment in new and difficult conditions. so free floating is a good thing for the russian economy. >> and you can head to cnbc.com for more of that interview. chinese premier lee ki chang have agreed to energy and air space. the china finance minister said this is a major quote in bilateral relations. russia's central bank governor played down fears over the sharp

decline in the rouble saying the current situation is in control. this came as the rouble came at an all-time low. they also spent $6 billion defending the rouble in the last ten days. we'll bring in tatiana logo in israel at rbs. great to have you. russia's financial stability is in question right now. at what point do you think the russian or central bank of russia will introduce temporary capital outflow, or capital controls, excuse me? >> good morning. i don't think that the time has come yet. i think there are indeed very significant resources, which russian central bank would deploy before it even starts thinking about introducing capital controls. this would be a major blow to confidence. i mean, reversing the policies which the russian authorities

have pursued in the last few years. capital controls were abolished in 2006 and it would be powerful negative signal if russian central bank decided to backtrack on these. i think before they start seriously considering engrossing capital controls, we would have to see much more significant deflation of the effects of gold reserves, which are still quite ample at about 455 billion u.s. dollars. >> to put the rouble's decline in perspective for us, what has been causing the rouble's weakness? >> yes, the rouble is a major underperforming in effects. there are a few underlying factors. first of all, we need to mention the closure of external bordering markets for the russian companies and banks. so this creates a shortage of

effects liquidity in the local market. and this is actually driving the rouble to weaker levels at the moment. and then the main thing to watch now is whether the population is going to panic because last week the rouble effects rate already crossed the imported psychological threshhold of 40 roubles to a u.s. dollar. >> presumably there are individual companies benefiting from this move if they managed to escape the sanctions, the weaker dollar, the weaker rouble boosting their exports. >> well, you know, i think they cannot pippoint any companies which have benefited because most of russian companies are actually importing equipment in order to help field the investment programs. so for them there are some benefits but there are also some losses as we see the higher cost

of this equipment. >> and tatiana, given the sanctions in place right now, is slowing growth a permanent fixture for russia going forward? >> yes, slowing growth is indeed a concern. we have downgraded our growth forecast for next year to just 0.2%. which is more pessimistic than the initial forecast of the russian government. but still exceeds 1%. it is a concern that especially now the observing sharp downward friend the oil price, which if it continues will probably cause us to revise our forecast to negative territory. >> tatiana, we have about 7 to 8 billion worth of debt due in october and november from russian companies before another peak of 32 billion dollars in december. how significant are those numbers? do russian companies really need foreign lending markets to open up for them again? >> yes, in an ideal case,

obviously, they would want their capital markets to open again by december because that will peak an external debt payment in december which is up degrees quite high. however, here, i would like to say we don't know by what extent they have already prepared for these. perhaps the russian banks, in particular, have already stocked up on effects. and so it's not the case of everyone really being cash poor. it's the extent to which everyone is warning about what is going to happen next. for how long the sanctions regime is going to remain in place and for how long banks and companies will remain cutoff in the external markets. >> tatiana, thank you for joining us, senior economist for israel bank rbs. >> thank you. a texas health care worker has contracted ebola after

treating a lie liberian man at the hospital last week. jay gray is joining us now from dallas with the latest. jay? >> reporter: hey, there, good morning, seema. the centers for disease control here calls the situation, quote, deeply disturbing. as you talk about doctors and nurses in this dallas hospital who have been fighting the ebola virus now, turning that fight to one of their own. it's very frustrating, not only for the centers for disease control, but this hospital and this community after treating the first patient diagnosed here in the u.s. that patient who unfortunately died in this hospital as a result of his illness. they now have confirmed that one of those on that medical team is indeed fighting the virus and is the first to have the virus transmitted here in the united states. doctors say it appears she only came into contact with one other person while she may have been sick. that person has been pulled into

isolation and is being monitored as well. they also warn it was a breach in hospital protocol that wound up with this transmission taking place. and for that concern, there could be more health care worker that is could potentially be infected with the virus. so they are watching that very closely. there are about 18 hospital workers right now that are self-monitoring. there are 48 other people who came into contact with thomas eric duncap, duncan, and they continue to be monitored by the cdc. as for this woman who was taking her temperature daily before running the low-grade fever and rushing back to the hospital here, police have been on standby there for the last couple of days. a hazmat team is now outside of the apartment. they will begin the cleanup there and the disinfection later this morning. we are live in dallas, jay gray, back to you know.

>> jay, thank you so much. now the ebola outbreak in west africa could impact how much you pay for your next hershey bar or cadbury cream egg. the largest producer of cocoa beans has shut its border with guinea and liberia putting a cramp on the workforce to pick beans as harvest season begins. the ivory coast hasn't seen any cases of ebola but the outbreak could affect prices. cocoa futures hit a three-year high in september and this is a scary situation in general, wilfred. we have been trying to assess the impact on the markets as well given that we are a financial news channel. dan greenhouse who has been on before wrote in his note last night that the situation has an unquantifiable outcome that could create market uncertainty and it should hardly be surprising. investors and people who treat this market are treating ebola as a big concern and as a causing future for uncertainty going forward. >> it is very hard to quantify,

but you have to have a look at the airline stocks which are suffering and that's clearly affected by ebola. overall, it was definitely global concerns but very hard to quantify how much of an effect this has. now still to come on the show, chrysler drives full-speed ahead on toe the big board. so what is next for the italian automaker? cnbc speaks to the ceo anton silvanov. we'll bring you a preview after the break. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning

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you're watching "worldwide exchange." >> the typhoon vongfong leaves 30 injured in okinawa and causing 300 flight cancelations and hundreds to evacuate their homes. according to meteorologists, vonfong could reach tokyo by tomorrow. this is the strongest storm of the year and the second typhoon to hit the country in less than a week. clashes between anti-occupy protests and pro-democracy demonstrators erupted in the streets of hong kong. taxi drivers frustrated with the black kate in the industry's district began to pull down the blockades. police also started to remove the barriers from the

demonstration sites as protesters enter their third week but said pro-democracy activists could stay. reacting to the market, cnbc was told they are focused on whether hong kong's markets are functioning well. here is zhu min. >> hong kong is one of the financial centers for the whole world and the functioning of the hong kong markets is very important. the good news is so far the markets are not only watching the share price down, but it is more important for transactions going on the bond markets and the derivatives market to stabilize. so i think that's a good thing. and we are also carefully assessing the gdp growth on hong kong as well because it could have an impact on hong kong's economic growth. we'll see this impact as well. >> are you advising the chinese

government at all on this situation in suggesting they do well to go gently here because money flees very quickly if you are too overbearing. >> we are paying more attention on the function, the stability of the hong kong market. though we do assess the situation, currently the market is functioning well. >> but you're not talking to the chinese government directly on this? >> when the market -- we are still monitoring, but we see the market functioning well. we will assess the economic impacts. when we have that done, we'll -- >> gold man saks slashed its forecast for hong kong as the pro-democracy protests stretch into the third week. how badly be the unrest affect the economy? go to cnbc.com for more. pershing square holding has listed just below its fund

price. they raised more than $3 billion ahead of the ipo. shares were priced at $25 each. valuing the fund at $6.2 billion. fiat chrysler shares are set to list in new york later today finalizing a merger between italian and u.s. auto brands. the debut will raise funds to support the ceo's ambitious plan to boost sales by 60%. claudia is joining us in milan with more. >> reporter: yes, it's a historic day here as we are without the fiat stock trading on our market. we'll see fca trading this afternoon once it opens in the united states as well. this is, of course, a company that was founded 115 years ago. so very symbolic, very important for italy. now, you mentioned the strategic plan that marchionne laid out. ten years ago when he took over, he worked on a lot of

restructuring in the troubled automak automaker. in 2009 when he did buy chrysler, that was the way to reach the high levels of production he wanted in order to have fiat be one of the main players in the world for autos. 60% sales boost as you said. they expect to reach 5.5 billion euros worth of the net profit by 2018 which is the year in which sergio marchionne will leave his job, considering his job is completed. this comes at a delicate time for the u.s. auto market with the u.s. auto sales reach a peak. ford just announced a profit warning. chrysler is not necessarily one of the largest auto producers with aging model lineups with high debt as well as weaker margins both in north america and a small presence in china. so it will be interesting to see what the reaction is this afternoon when the stock opens in new york to see what the kind of appetite is out there for sca. back to you. >> claudia, thank you very much. joining us now is george galius,

thank you for coming in. do you think we'll see a little jump in evaluation on day one? is it a sign that the metrix is different for traders today? >> good morning. if you actually look at the evaluation of the japanese oems versus the european and u.s. oems, you don't see a valuation uplift versus the europeans. they are not actually trading on much higher multiples. ford, gm, toyota, volkswagon, these companies are trading on the multiples today. >> but how important is the success of fiat chrysler for sergio marchionne who was met with skeptics who questioned that partnership, if you will? >> it's been a huge success so far. in terms of the ability to get hold of chrysler and the cost of the acquisition to fiat, i think

it surpassed everybody's expectations. i guess looking forward, the real question is, does fiat chrysler represent good value? in our view, it probably doesn't. it's trading seven times earnings, three times the eb. you can get a much higher quality stock on the multiples. >> i suppose it's a question on whether those prices are good value or not depends on whether he can hit these quite extraordinary five-year growth targets he's at. more than 1 million units to the nafta region. he wants to add 5% of marketshare in brazil. any of those achievable? >> well, we think they will be extremely challenging. i mean, if you just recently look at ford and gm capital markets, what's clear is all the northern american players are looking to gape share in growth volumes globally. when you look at fiat's plan in

detail, they are looking to add a million units. so one out of 1.3 seems quite ambitious to us. as you said, they are looking to increase share. they already have around 20% share in brazil. so it's difficult to see them expanding much further on that, even with the new product coming onstream. >> we'll talk about the u.s. names that you mentioned there, gm, so much focus has been on their margin, but if they can't get the margin up at a time when the seasonally adjusted sales are at all-time highs, surely it can't go higher in the future. >> well, gm laid out a fairly detailed plan on how they are looking to expand their north american marge to 10%. we are skeptical they can get to 10%. we think they may make 9%, but the u.s. sales are strong. pricing has held up reasonably well to date. as we go forward, we expect continued volume growth, but the pricing pressures may need to weigh on the margin for all

operators in north america. >> we are tracking the slow down across the eurozone. does that concern you in looking at the auto sector? because you seem quite bullish talking about these stocks. >> well, it does concern us in looking forward. i think what you have with european markets n particular, is you basically have flat-lining sequentially from each one. at the moment, it's very difficult to gain a grasp on the growth we'll see next year. what i would say is the european rems have taken out a series of self-help measures. in the first half of this year, for example, you saw the improved profitability despite a fairly low level. we have a target price of 120 euros. we still like the top line growth story and we believe new product will continue to drive earnings in that company. >> george, thank you very much for joining us. george galeus, analyst at isi

group. now coming up later in the day, phil lebeau will be speaking exclusively to sergio marchionne at 2:30 p.m. eastern time. france's second largest banking group bpc is to be the first financial service provider to offer payment transfers over twitter. it marks a win for the blogging website who beat rivals like facebook to incorporate the technology. it continues twitter's expansion into the electronic payment space after the launch of a buy button on the social network last month. >> so we're asking you, do you trust twit we ater with your mo? jamie tweeted in, interesting idea but it's not for me. while amit tweeted, no way we can trust twitter or facebook with our money. my own twitter account has been hacked twice. if you want to join the conversation, get in touch with

us at worldwide@cnbc.com or via twitter @cnbcwex. our personal handles are on the scream now. would you send money over social media sites? get in touch with us to let us know your thoughts. and wilfred, could global growing pains derail the fed's rate hike? that's what one expert says. we'll discuss that next coming up on "worldwide exchange."

welcome to "worldwide exchange." i'm seema mody. >> i'm wilfred frost. these are your headlines from around the world. the u.s. markets point to a mixed open with the dow erasing all this year's gains. but the bank of japan governor tells cnbc this could be a healthy correction. >> i don't think at this moment there is a kind of significant bubble developing in the financial market. france fights back. the finance minister tells cnbc the outlook downgrade is a european issue.

but the chief operating officer disagrees telling us the government is to blame. >> it's about france. it's a change in the outlook. it's a strong rating, aa, but we indeed think that the risks are increasingly tilted toward the downside. fiat chrysler drives full-speed ahead on the u.s. expansion with a listing on the big board. we speak to the ceo sergio marchionne straight after the u.s. opening bell. a texas health care worker becomes the first person to contract ebola in the united states. the cdc says protocols must have been breached. >> you're watching "worldwide exchange." bringing you business news from around the globe. and a big day for the markets. a big week. we saw the volatility index reemerge with 46% just over the last week indicating there's a

high level of risk aversion in the market. wilfred, we have to wonder if this will continue going forward. >> i think the thing that struck me last week was this is european-led market worries, but u.s. sold off as well. you can understand with the equities the risk assets and the global growth coming down. the u.s. dollar is the first week in 13 it didn't post gains and traditionally the dollar will be seen as a safehaven asset. >> goldman sachs this morning writing that given the global weakness, stick to u.s. stocks and names that have high domestic salesful we'll see if that's a strategy going forward. on that note, look at the u.s. futures indicating a lower open right now. the dow jones industrial down six points in pre-market trade. the nasdaq is down ten points. the s&p 500 down about two. of course, traders also keeping an eye on crude oil prices stuck near four-year lows. last week we did see utilities and consumer staples positive as investors jump into defensive sectors. on that note, we'll take a look at the ftse global 300.

this is an index of multinationals around the world. and right now you can see the index slightly higher following that european market stronghold up about .1% or six points at session highs on the day. diving into the european markets, we saw a sell-off last week due to global growth concerns as well as downbeat data from germany. but right now rebounding in today's trade, we're looking at the xetra dax down 2% on friday trading higher 30 points. the ftse is up 4 points on the day. and france and italy also showing green across the screen. so wilfred, we have to wonder if the u.s. stocks will follow the european open higher or if volatility will weigh on stocks once again. >> exactly. quite a big move in the last hour when we stood here and hour or so ago. this map was mainly red, so the markets found strength over the last hour. they were down and now slightly into the green. let's look at the bond markets. an interesting start with the

ten-year french s&p down grade to france to negative on friday. that puts the yield a bit lower to 1.26%. if you had held back for 12 months, you would be at 48% a year ago. the french bond was at 2.5%. significant yield compression over the last year. and we've seen significant yield compression over the last week, too, in relative terms. the u.k. benefiting because it seems to be a relative safety trade within europe. and germany compressing a little bit, but less magnitude in the compression given the already low levels. it's at.98%. the dollar index failed to post gains in the first week in 13. and it's giving up a little bit more of those longer term gains again today. cable is back up again, but the aussie/dollar regained .87%.

against the chemical weapyen, i relatively flat. the rebound is 1.2668. we'll get and update on the markets from asia from sri standing by in singapore. sri? >> hi, there, good morning. there's no escaping it. this is another big risk move for the asian markets infected by the supplied we saw on wall street on friday and still suffering from the global growth concerns emanating out of europe. we saw the trade data down for the month of september. yes, imports were better than expected. exports were better that expected as well, but the overall picture still deeply negative in the asian markets. you're also getting close to the topix today because they are closed for the national holiday. liquidity is thinger on the ground exaggerating the moves to the downside. energy shares were big losers on

the secondtorial basis, as you quite often point out, oil prices are at a new four-year low. the philippine benchmark was ranked underperformer down by 3%, topping our region tomorrow, we have q3 gdp out of singapore and get a monitory statement out of the central bank. we continue to see risk aversion in the equities. at the end of the week, it will be very important for global investors when janet yellen is speaking at the boston fed. if she reestablishes her credentials, that could help market sentiment. we'll leave you in that sobering mood for now. >> thank you for that, sri. sentiment is not strong, but the european shares have bounced back off the lows. the stoxx 600 is just in the

green up 15 basis points. we spoke to the bank of japan ceo and asked if he was concerned about the recent volatility. >> it is true in the last couple of weeks, volatility in the u.s. financial markets, including currency market, stock market, increased somewhat. but still the numbers are quite low. if anything, the imf is concerned about the low level of volatilities in various financial markets. and if there's any trend of diversion, extremely low volatilities would as some say

may go up. so in the last couple of weeks, suddenly volatilities have slightly been heightened. but the number are still low, and basically the dow has depreciated, not just against the yen, but against the euro, against the market currencies as well as russian and eastern european currencies. >> fed officials are warning a global economic slow down could push back a u.s. rate hike. also speaking at the imf world bank meeting this weekend, the fed vice chairman stanley fisher who says efforts to normalize the easing monetary policy could ease the outlook. but he added the timing is

roughly on the market given the expectations of how the u.s. recovery will unfold. tony fratto is now joining us live from washington. tony, what do you think is the chance of the fed delaying its interest rate hike? or do you think because of the rebound in the u.s. economic recovery, we could see rates rise sooner than expected? >> right, i think you just outlined where the fed would like us to be and i think where most market participants are. stan fisher went through great pain, seema, to make that point. the fed's decision is really going to be data driven. where the global growth is, the pace of global growth and other factors globally, how that impacts the pace of growth in the united states is something that will factor into their decisions, but at the end of the day, you know, the expectations is somewhere in the middle of next year. the fed will likely move and right now given the data that

the fed is seeing, that that seems to be about right. that could change if there are big moves. certainly, the downgrade in global growth from the imf's world economic outlook this past week and the weekend was the talk of the meetings. but i don't think that was a surprise to the fed. >> so did we take the last, put the last week or two aside, so far when global growth fears have gotten worse, that's been positive for the markets because it's meant that we have potentially more easing, but that changed quite significantly last week. does that mean that people think there's nothing that european authorities can do to save the european economy? >> yeah, i think there are two different stories. one part of it was what that was going to mean for the united states. and i think what we're seeing in the united states is a realization that the growth, while still low, it's not gang busters over here right now, but there is a view that the growth in the united states now is

organic, it's durable, and it's real. and it does not need the stimulus from monetary policy or even from fiscal policy support at this point in time. that's a different view from what we are seeing in europe where i think there is a sense of frustration that there is still a lot more support that's needed. and so there are two different stories, so i don't think you're going to see that bad news is good news with respect to u.s. capital markets, especially equities that we have seen over the past couple of years and have gotten used to. especially europe and the united states as it really is a different place in the recoveries. >> and tony, some traders are expecting the market to continue to sell off. if it does accelerate, will the fed take that into account to change the strategy going forward? >> i think it will definitely take it into account.

all the factors are really important. what happens with asset prices is really important. it's a factor that all of the central banks are taking into account with their monetary policy decisions. but i think, you know, none of the -- the pace of growth right now and where europe is, it's disappointing, but in the case of the fed, in particular, i think just listening to all of the commentary from all of the fed governors and most importantly the chair, janet yellen and the vice chair jan fisher, they are not surprised by the different paces of growth and how markets are reacting to it right now. i think they feel that markets are reading the central bank pretty accurately right now and have a good sense of expectations. that could always change. like i said, stan fisher said a number of times that this is what we think today, there's no secret plan, we're going to keep our eye on the data and asset

prices are one of those data points that they have to factor in to their decisions. >> and tony, stick with us, we want to talk more about the u.s. markets and earnings coming up this week. that's the managing director at hamilton place strategies. fresh off his visit to washington for the imf and world bank meetings this weekend, the bank of england president mark carney sat down with cnbc. hear what he says on "squawk box" at 6:00 a.m. eastern. the currency situation is under control. the comments came as the rouble touched an all-time low against europe. the governor also said the central bank spent $6 billion defending the rouble in the last ten days. i just spoke to the russian finance minister at the imf meeting in washington and asked him if the central bank should shift the time line for the inflation target to 2017 due to the pressures on the currency. >> the central bank has its target of 4% inflation many the

medium term. and they have been subjective of the exchange rate policy. and i agree with the policy to allow the outward pressure without the quantitative reserves of the government. and my personal opinion is that the exchange rate will allow safety reserves and restore the balance of payment in new and difficult conditions. so free floating is a good thing for the russian economy. >> let's take a look at the other top stories today. top u.s. and u.k. financial regulators will gather outside of washington today to conduct so-called war gains. janet yellen and jack lew, mark carney, the u.k. chancellor george osborne will make efforts to solve a too big to fail issue with banks and financial firms. now a texas worker becomes the first case of ebola

contracted on u.s. soil. we'll have the latest on that developing story coming up next.

welcome back. more red in store for u.s. markets. futures point lower after the dow wipes out gapes for the

year. and fiat chrysler gets rolling with the ipo today officially emerging the u.s. and italian brands. and the first domestic case of e bbola is contracted inside the u.s. as we just mentioned, a texas worker has contracted ebola after treating a man who died at the hospital last week. the woman who has not been named is the first person to contract the virus in the u.s. she had close contact with mr. duncan. but it is unclear how this breach of protocol occurred. >> we are conducting a thorough investigation to figure out how this happened and ramp up infection control to do whatever we can to minimize the risk that there would be any future infections.

>> the white house says this new case has prompted president obama to order federal officials to take additional steps to make sure the medical systems are prepared to conduct the correct protocol with ebola. atlanta and chicago o'hare are conducting testing for those passengers traveling from africa and sierra leonleone. tony, the markets had a big sell-off last week general lip pointing to global growth fears, but how much of an impact is the ebola having on markets? >> it's a concern. the size of the markets we are talking about should not have a big economic impact, certainly not big enough to really affect the markets that much. there's been a lot of reaction from authorities here and in europe. the imf actually this weekend extended a facility to help the

west african countries deal with the economic shocks. but i think there are other factors at work that we're really seeing. some of the companies that are looking at earnings, you know, where the dollar is factoring in to, the expectations for their earnings is a biggest impact. and just a rebalancing of views on where some of the large economies are right now. we have news out of china and europe and some news out of the united states. and i think that's adding to volatility and expectations. less so ebola as critical a concern as it is right now. i think economic concerns are probably outsized. >> let's talk about earnings, tony, because jpmorgan, google, general electric, a lot of big companies in the u.s. will be reporting earnings this week. if we get better than expected numbers, do you think that could perhaps result in a rebound in u.s. stock? >> yeah, i think that would provide a lot of -- i try not to

be predictive of where the equity prices are going to go, but i think expectations are that there are potential drags on earnings right now, just seeing the knockdown in global growth, especially for a lot of u.s. exported firms, all the companies that you mentioned have some, you know, foreign earnings and exports. so that market is important to them. where the dollar is is important to them. so the dollar having strengthened by around 8% to 10% over the last quarter is significant for them. so, you know, those are going to weigh on earnings expectations. if there is a beat for these companies coming in this week and over the next couple of weeks, that could be really supportive of where our equity markets are. >> tony, thank you for joining

us this morning. twitter making its entrance into online payments. we speak whether that's a threat to the banks. that's coming up next on "worldwide exchange." we needed 30 new hires for our call center.

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france's second largest banking group bpce is to be the first financial service provider to offer payment transfers over twitter. it marks a win for the microblogging website in particular to beat rivals like facebook to up corporate the technology. this includes twitter's expansion after the launch of a buy button on the social network last month. this ahead of the next big launch in the e-payment space, apple pay, due to be released at the end of the month. joining us to discuss for thor is the head of digital at chase who is in new york. gavin, thank you for getting up early with us. >> good morning. you're very welcome. >> let's talk about apple pay. morgan stanley expects apple's mobile wallet service will become the industry standard. do you agree with that? >> i think when apple contacted us to look at being involved in this new mobile payment system, we really thought it had the potential to be a game-changer.

so we tend to think that this is a great opportunity for our customers to be able to use their credit and debit cards in this very fast-moving mobile payment space. >> well, and gavin, this is based on existing credit card infrastructures. it's quite a different approach to that of paypal in the past. what is that going to mean for the end use her? >> it's based on existing credit and debit cards, but it's focusing on the user experience. we spent a lot of time thinking about security, so this new apple pay system is the first big launch of the system in the u.s. called tokenization. the ability to replace a debit or credit card with a token. a number just used for that single transaction. if it's ever take up out of the phone or the system, it's completely useless. so while we are using existing credit and debit cards, we are using them in a new way to provide opportunities for consumers to spend online and in

store. >> gavin, recent news about the jpmorgan hack worrying customers. what's the answer in protecting customers from a cyber attack, especially if we see more customers shift into mobile banking? >> so i think i'll go back to, we put security at the heart of this system. the financial services industry is looking for a long time in how to remove credit card numbers from the online transactions. tokenization gives us the ability to do that. and this is the first live launch we have had. so we are very excited to see and offer this new secure solution to our customers. >> i just want to ask you about the news this morning with twitter teaming one the french bank, how significant the that development that a social media site is also entering the digital pay market? >> i think what we're seeing here is customers are seeing the mobile devices become more and more of their daily lives. now chase channel for mobile is the fastest growing access mechanism for the consumers. we have 17.5 million customers

using a mobile banking application. and they are using it in droves. 20% year-on-year growth. so when we look out and see the customers are going to want to be able to use these new online systems, what we're looking for is how do we partner and be where our customers want to be? apple pay is a great example of that as are other payment systems. so what i'm thinking we'll see over the coming years is this big push to be able to make these experiences available to our customers in a very simple, secure and private manner. >> thank you very much for joining us. that was gavin michael, head of digital at chase. analysts take a look at u.s. futures after what was a big sell-off in the u.s. market last week. the s&p 500 and nasdaq witnessing their worst week since spring of 2012 and futures right now pointing to a lower open. stamps.com is the best.

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and welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. >> another down day with the dow erasing all this year's gapes. this could be a healthy correction. >> i don't think at this moment

that there is a significant bubble in the yeuropean financil market. and the s&p chief operating officer says the government is to blame. >> the information of the rating is a very strong rating, aa, but we indeed think the risks are increasingly tilted toward the down side. fiat chrysler drives full-speed ahead on the u.s. listing on the big board. cnbc speaks to the ceo sergio marchionne later today. and the first person to contract ebola in the united states happens in texas. the cdc says protocol must have been breached. you're watching "worldwide

exchange" bringing you business news from around the globe. and if you're just tuning in, thank you for joining us. here's how the markets are faring after what was a volatile week on wall street. the worst week for the s&p 500 and the nasdaq since spring of 2012. worries over global growth slowing down as well as ebola, fears of rising rates weighing on investor sentiment. that sent investors out of stocks and into the bond market. in fact, we saw the u.s. treasury yield hit an intraday low of 2.27%. it's lowest level since june of 2013. the question is, will this volatility continue into this week? earnings, of course, taking center stage as we hear from a host of banks. european markets diving into where we are seeing the action slightly lower for the ftse 100 that did start the day out with a gain. slightly lower now right near four points. the downbeat data out of germany

weighing on the xetra dax last week. today we're seeing a rebound with the xetra dax up 20 points. france is up 10 points after the s&p down graded their look. and italy gap gained 78 points. the euro stoxx 50 is up about 6 points. so how do you make money in these markets? here's what some of the experts have been telling us throughout the morning. >> we went long euro/dollar on friday. the reason we did that is because we thought washington was coming out strong against the dollar fighting and they have. that's what the fed wants to do.

if we're talking about rise ing or falling oil prices, shale is officially the more expensive operator because they do believe in greener projects, they have a much higher threshhold. the way the markets have moved right now, i think some of the industrial stocks and the cyclical stocks, some of those that are less affected by the duration at the long end might actually fare fairly well. and traders will be watching the s&p 500 which is down about 4% over the last month. it's also trading about 5% below the recent high. fears of rising rates on global slowdown plus ebola weighing on

investor sentiment with the level where technical investors are watching. kenny, how big of a deal is it if the s&p 500 break best low the 200 day moving average? >> it will be a big deal technically. all the other indexes have now done that. they did that late friday afternoon and the s&p closed right on that level. so they are going to certainly be watching. then what you're going to see is if it breaks, it's going to break, does it break decisively, and if it does, expect a further push down. if it breaks but holds just below, there will be some indication that the buyers are stepping in and that maybe that sense of fear and panic won't permeate the markets. but it's difficult to say, once it breaks technically, you get the momentum, you get the guys to kick into high gear. then buyers understand that and naturally pull back. and it almost becomes a

self-fulfilled prophesy. >> kenny, you said fear and panic. there was a lot of that last week. what was really driving it as it stemmed to come from german data everywhere globally with equities selling off? >> it's funny. up until now, germany did come out of left field. no one was expected such negative data, but then three our four times we got the german data, it started to change half the conversation. prior to that, you know, we know you guys are still struggling and europe is working out its problems. mario draghi has initiated and the fed has started and rates won't go up for a while. nothing has changed other than the jer man situation. but that was enough to all of a sudden create more of a conversation. it was much more of an excuse than anything else. germany won't nearly be as negative or as bad as they are making it out to be. so quite honestly, a lot of it was technical breaks in the market which then feeds the

computer risk management program to react. every time you break a technical level, you need to sell stock to protect the portfolio and selling gets more selling. >> with all the volatility last week, kenny, we saw stocks sell off and the treasury bond market got a bid. utility stocks, somewhat of a bright spot up 1% despite the volatility. is that the way to play the markets to stick to defensive sectors like consumer staples and utility going forward? >> it certainly does. think about the utility stocks. they are the high dividend payers that tend to be boring stocks but yet in times of nervousness and uncertainty they tend to be the same. so it makes perfect sense we actually saw that action last week, that money poured into the more defensive names. listen, you've said it at the beginning of the show, this is starting off with a big week. tomorrow you get jpmorgan, city bank, wells fargo, ge, google,

big names this week. just because we had negative news out of ford a couple weeks ago doesn't necessarily mean that every multi-national is going to run into the same problem. and i think, i think we'll be a little bit surprised in the market to find a bid and we're not going to get, we're not going to get that cascading type of sell that it felt like last week. >> for sure you're amped up this morning, kenny. how much coffee have you son and daughter. >> i had two cups. the car was late to pick me up. >> we appreciate your time. director at o'neal securities and cnbc market analyst. france is ready to submit a dropped budget to the european commission for review this week as it faces the wrath of the european union to meet the deficit targets. shortly after the interview began, they announced france's credit outlook to negative. here's the immediate reaction

from michel sapin. >> translator: i wish we had better news given the policies we are implementing. what i want to say is france today has a policy based on two principles. first, we had to lower the charge for companies and that's what we're doing to allow them to work better, to innovate. second, we come up with savings. for several years during previous governments, we saw fiscal problems increase taxes. that's over. we lower them for our companies and finance all of our adjustments by budget cuts like has never been done before. we can be confident in a country that helps companies to be more innovative, more efficient and that makes the budget cuts in a strong way like we are doing today. >> can i just follow-up with that question then? because there's been a down grade on the credit rating on the outlook for the credit rating. how do you respond to credit

rating moves? >> translator: s&p has changed its outlook on a lot of european countries recently so it's all over the eurozone. it's not country specific. we've maintained a aa rating. it's the outlook that has changed on many countries and this is why i was saying earlier, it's not a matter of looking at france in isolation. the eurozone needs to look at the stronger growth for today's challenges. >> we talked to sovereign ratings' ceo about the downgrade and he asked if the move is about france. >> of course it's about france. it's been a change in the outlook. the information in the rating, it's a strong rating, aa, but we think the risks are increasingly tilted to the downside, which deals with a number of things. some are homemade and others are for the european phenomenon as though coincidence. today we had to cut the rating

of finland from aaa to aa. one of the key reasons is the lack of growth. fiat chrysler has its stock on the big board, but what does this mean for the future of the italian automaker? we'll discuss after the break. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates

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>> u.s. third quarter earnings season kicks into high gear this week. jpmorg jpmorgan, wells fargo and citigroup all report before the open on tuesday. intel gets the ball rolling for the tech sector after the market close. and on wednesday here, we hear from bank of america and blackrock as well as e-bay and netflix where subscriber growth will be in focus. later in the week, goldman sachs and google will steal the show. friday closes out with general electric and morgan stanley. so a really big week for markets and for the earnings season. >> absolutely, seema. all eyes will be on the earnings. could a stronger than expected q3 earning season give markets a much needed boost? head to our website to find out what the experts are saying. that's on cnbc.com. a texas health worker has contracted ebola after treating a liberian man who died at a

dallas hospital last week. the woman who has not been named is the first person to contract the virus in the u.s. jay gray is joining us from texas with more. >> reporter: hey, there, good morning, wilfred. the centers for disease control called the latest development, quote, deeply disturbing in the fight against the deadly virus for doctors and nurses here does shift to one of their up. as you talk about, they won't release her name but are saying this health care worker spent extensive time with thomas eric duncan before his death. and he was being treated for ebola. including when he was on dialysis and a ventilator as his condition got worse and became much more up infectious. this came as a result of a protocol not followed in the hospital that even more health workers could eventually test positive for the virus. right now, of course, there are 18 people from the hospital that are self-monitoring. and that's what this employee

was doing when she found that she had a low-grade fever, came in and was placed in to the isolation unit here. that's the latest. live in dallas, jay gray, seema, back to you. >> jay, thank you so much. fiat and chrysler will list their shares on the new york stock exchange. fiat took control of chrysler after they emerged from bankruptcy and completed the buyout this year. it is now combining the businesses under one roof. the fiat chrysler automobiles have their headquarters in london with operations in italy and detroit. the ceo sergio marchionne will ring the opening bell this morning, but before he does that he is going to be on cnbc for an interview at 2:30 p.m. phil lebeau is joining us on the phone from new york. i was just looking at the auto stocks over the past month, t t

tesla is down 4% along with ford. does this change what happens on the new york stock exchange today? >> well, it is not as robust as two or three years ago, but i think sergio marchionne, having talked extensively about this, he's well aware that the stocks at this point for the auto industry are under pressure. as you would expect whenever the debate is whether or not you have an auto sector that, a, is close to getting the top here in north america, b, remains under pressure in europe, and c, faces serious questions about what the future is when you look at the global sales and how much of that growth you're going to see. let's say over the next three to five years. i'm clearly seeing over the last three or four years, the growth, we are not going to see that again. we are not going to see it

growth as we look at 2015 and 2016. this marks a huge comeback for fiat chrysler. just four years ago, five years ago, there was serious questions about whether or not just to shut this entire company down, for sergio marchionne to come in and deal with the obama administration and say, for him to come in and take this company from the verge of being completely shut down into the point where it is now, a lifeblood for fiat chrysler because most of the profits are coming from the chrysler division. it is a remarkable turnaround. >> absolutely. phil lebeau, we'll leave it there and look forward to sergio marchionne's interview on "street signs" later today. more red in store for the u.s. markets with futures pointing to a lower open. the dow wiping out gains for the

year. as we were just saying, fiat chrysler gets rolling with the listing in new york today officially e merging the italian and u.s. brands. and a texas health worker is the first person to contract ebola inside the u.s. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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pershing square holdings is currently at $23.08. they raised $3 billion ahead of the ipo. shares were valued at $25 each valuing the stock at $6 billion. and we were joined onset earlier to discuss while the

online firm ipo has been delayed. ? we made the decision by showing a little bit more time in sort of the face of that visibility, you will just understand our business model a lot better. so we just made the call with more quarters under the belt -- >> we are actually not getting more currency, we are getting more capacity. >> you'll get more clarity when we actually update everything for everyone. >> france's second largest banking group bpce is set to be the first financial sector to offer payment transfers over twitter. this marks a win for the blogging website who beat rivals such as facebook to incorporate the technology. this continues the advancement of the lawn ch after the buy button last month. we have been asking you, do you trust twitter with your money? would you feel comfortable transferring funds over the social network or any other

social plate foform for that ma? gene tweeted in, yes, i would use twitter for payments. secure, transparent, anonymous credit card up foe has all the hallmarks of paypal and easier. get in touch with us at worldwide@cnbc.com or via twitter @cnbcwex. this could change the ecommerce space. if the likes of twitter and facebook get more of these transactions, it could be negative for the likes of alibaba. >> it's no secret facebook has been trying to strengthen their payment business bringing on david marcus, the former chief executive from paypal. facebook is looking to grow revenues and payments is seen as the big opportunity. >> with alibaba itself, we said so much of it was based on its 80% marketshare of ecommerce in

china. but as soon as the social media sites stop doing that, that number could fall very, very quickly. anyway, get in touch with us on that story, worldwide@cnbc.com is the e-mail address. we'll have a look at the european markets. quite interesting after a bad week last week where the stoxx 600 was down 2.7% and we opened in the red today. it was looking like we were going to have another bad day, but over the last hour the european markets found strength. the ftse 100 is down flat and the german market is up .40%. similar amount to the french market up .60%. italy is ahead as well. >> what is interesting is gains across europe are not translating into u.s. future pre-market trade, at least not right now. futures indicating a lowing open across the u.s. the dow jones industrial down nine points in pre-market trade. the nasdaq down ten. this after the s&p 500 and the nasdaq witnessed their worst

weeks since spring of 2012. keep in mind the s&p 500 now trading about 5% below its recent high. >> absolutely. and we'll also have a quick look at the currencies because at the u.s. dollar, it had its first week in 13 last week when it didn't pose gapes. and today we see the continuation of the trend with other currencies bouncing back a little bit as you can see. the dollar down 30 basis points against the yen. the euro regaining 40 basis points, 1.2679. the sterling is flat at 1.6086. the aussi dollar has rebounded at.8743. >> this has volatility is back in the gain with the vix gaining 40% over the last few weeks, so that's being watched by traders. >> aare minder before we go, catch mark carney's interview with steve liesman coming up on "squawk box" at 6:00 a.m. eastern time. that's all we have time for on today's show. i'm wilfred frost.

>> i'm seema mody. "squawk box" is next.

good morning. welcome to "squawk box." a health care worker in dallas contracts ebola. the cdc says a breach in protocol is to blame. the first week for the red arrows in europe and oil prices are tumbling again. and in a rare interview, england's top banker talks to steve lease man about volatility in the global markets. it is columbus day. it is monday, october 13, 2014. "squawk box" begins right now.

good morning, everybody. welcome to" squawk box." i'm becky quick along with joe kernan and andrew ross-sore kip. we have a whole new look debuting today. everything from the ticker to the market boards, it's a network makeover, if you will. brand new beginning. you'll see some very different looks all day today. we'll start things out with a quick check on the u.s. futures. at this hour after last week's finish, you'll see red arrows. not definitive moves at this point, but the dow futures are down 18 to 20 points below fair value. the s&p futures are down by 3.5 and the nasdaq is close to four points below fair value. the major averages are mixed this morning with pressure earlier today. but you can see that germany and france, those markets have turned things around. the ftse is essentially flat at this point. we'll see what happens as we get into this trading day. overnight we