it's tuesday, welcome to "worldwide exchange." >> i'm seema mody. iliad jumps to the top of the stoxx 600 after it hangs up on its plan to buy mobile, the french carrier lifting mobile stocks across europe. declines of the ftse as it

warns of the tough trading condition ahead while we plummet on yet another profit warning. >> investors all eyeing a host of key cities stateside with jpmorgan and wells fargo kicking off banking earnings. >> announcer: you're watching "worldwide exchange," bringing you business news from around the world. and we're just getting the iea's oil report. oil has fallen for the third straight month in october. it dipped below $90. it's down now 20% since june. the reasons are abundant supply, strong demand growth and a strong u.s. dollar. in particular, it says, quote, while abrupt slowdowns in demand in q2 is coming, supply growth

looms larger as a factor behind the recent easing of oil market balances. so it is supply growth more than weak demand leading to its weakness. >> absolutely. and the iea rising to a 12-month high in september led by libya's continued recovery and higher iraqi flows. of course, we've been seeing oil trade at a four-year low now in correction territory. the worst performing sector on the s&p 500 is the energy sector. >> joining us now on the phone from paris is antwaan house at iea. antwaan, the focus on this recent weakness, very much down to weak supply growth, strong supply growth rather than weak demand. is that right? >> yeah. i mean, you know, i think the demand slowdown has taken many people by surprise. it was very abrupt in the second quarter. so in a way, it was perhaps stronger surprise effect there. but in terms of, really, what

moves the needle, the increase in supply is very dramatic. and also a strong recovery in opec supply which is in growth mode for the first time in about two years. >> and antwaan, i noticed you say nominal export in rubles in stock even as they plucked in dollar terms. in ruble terms, you're not feeling the effect of the sanctions yet? >> i'm sure he's feeling the impact somehow. but i think we have to keep in mind that the depreciation of the ruble compared to the dollar is a bit of an upset, if you'd like, to the decrease of the revenue in dollars. and, you happen, if we think back to 1998 when the ruble was devalued and this is when production started surging and recovering from the post ussr meltdown. so there's a bit of a perhaps stronger resilience there potentially than we suspect,

maybe. >> antoine, kuwait aels oil minister said recently oil prices will find a floor at around $76 to $77. do you agree with that? >> that is very specific. i'd like to see his spreadsheet. but, no, i think we're going to test exactly at what level production is going to be affected by the drop in places. i think where he's right is that i don't think we should expect opec producers to play the traditional role of a screen producer. i don't think we're going to see necessarily the kind of catch we might have seen in the past. we're more likely to see opec lead the market rebalance, high cost production drop first. that might be in opec or in other of the countries. >> antoine, thank you very much for joining us from the iea. breaking news on the ebola

story, a german hospital said a patient being treated has died. an ebola patient in germany has died, according to reuters. >> want to get your read on inflation data out of italy. 0.1% decline in september. they've come out at 0.4% for the month of september. that's italy's inflation data. and a contraction of 0.2% year over year. so month on month, italy's inflation down 0.4%. the expectation was for a 0.11% decline on an annual basis, dragged down by lower energy costs. that's one of the main reasons we've seen italy's inflation rate decline. the bigger issue is unemployment, 12% unemployment in italy. 44% when you look at youth employment. and we know, wilfred, matteo renzi has been putting together this jobs package, but when will this come to fruition?

>> absolutely. the euro off 0.4% today. and it has moved down in the last ten minutes or so. let's give you a rundown of key data. 10:30 cet, inflation numbers are due. most of the attention, though, this morning will be on the latest german zew sentiment survey which is due at 11:00 cet. the first reading since germany's move of hard industrial data is expected to climb further and could fall to zero for the first time since 2012. the industrial production numbers at 11:00 which is forecast at 1.7% minus for the month. to discuss this slew of data we've had today and in the last week, stewart richardson joins us. stewart, a lot of eyes on this european data. and it seems to be this is the one key factor that is leading markets globally into a risk off

move. >> yeah. the inflation data in europe has been the key for several months now. we've seen it much lower, much lower. then in august, we saw the industrial production and orders numbers in germany. when you see the september inflation data for italy, lack of structural reform and abe-nomics in japan seems to have stalled, inflationary policies coming out in several places around the world now. so there's a bigger thing than just european data. i think we have a bit of a global deflationary or inflationary thrust. that's when the prime ministers are ending qe in two weeks' time. this is quite a market to get a head around. when momentum turns to the downside, people are thinking perhaps we should make some asset allocation adjustments.

>> do you think markets are in a similar position as they were in 2007? >> it's been an incredible search. financial markets have substantially outperformed the economic form. this is why it's so much of a problem now to see these deflationary perhaps around the world. we could see quite a jump. let's talk about germany. recent data has been questioned out of germany and its growth story. how important is the german zew report coming out today? a lot of the global market has come out of recent data. >> this is financial

commentators. they will be affected by the recent down draft in inflation expectations and market performs. so, you know, if there's a weak number, that could be as much market related as opposed to the real economy. what's key for germany here is in the big picture, we've seen the euro be strong for the likes of the yen, which is one of the key competitors of the german industrials. of course, the rest we talked about italy, we've got france and other parts that will be a head whipped for germany, as well. and there's been a bit of a mini storm for industrial germany. that's beginning to be seen in the data. >> stewart, thank you very much for now. we'll come back to stewart in just a few minutes. do you think the sell-off

across global wall street is a good buying opportunity? has this provided an opportunity on the sidelines to get back in? worldwide@cnbc.com. not a huge sell-off. it's down 0.36%. that's the stoxx 6 of 00. let's have a look at the stoxx 50. down a dim lar arm, 0.3%. there has been possible data, but more importantly, there is a lot of data coming out today and that's giving a lot of uncertainty. we also get the industrial production as a eurozone as a whole which follows the individual countries we've had

over the last few weeks. the ftse 100 is off 0.36%. france off exactly the same amount. italy is flat. let's go on to bonds. we have seen a lot of tightening in the yield surf over the last few weeks as people post to safety. in the u.s., 2.42%. germany, 0.89% below 0.9%. it happened significant lit in the uk. 2.11% in the start of october. as a relative trade within europe, uk seen as a safe haven as growth outlook at got worse and italy the yield at 2.34%. let's look at forex. the u.s. dollar has just come back again after the last day, of course, the last week and the first day of this week. the u.s. dollar weakened off its

recent trend. we had that weak italian inflation data out. the u.s. dollar backed against the yen 0.4% up. aussie/dollar, 0.8746. dane yesh shared chipped up a gear after the group reported 8.6 billion euros. investors welcomed the news that the german auto guide would review its outflows. the group reports full earnings on october 23rd. that sup 3.56%. iliad up 11.8% after ditching the plan to acquire t-mobile in the u.s. resistance from deutsche telekom was behind the move. >> wilfred, coming up on the show, move over janet yellen. abigail johnson could become the most powerful in the world of

finance. dublin looks set to close so-called double irish tax loopholes. down, but not out. the mexican finance minister sees changes. he tells cnbc exclusively that mexico is better prepared for the end of quantitative easing than other emerging markets. as we head to break, we'll talk more about these stocks after this break.

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welcome back. the uk home builder expects to build 10% more homes this year and says its outlook remains positive with a record forward order book. it's up almost 4%. meanwhile, sab miller is down 0.6%. it's trading just below flat on weak sales in china and beverages grew by 1% if the first half of the year while revenue grew 5%. meanwhile, michael page is off

7.9%. the british based system is on uncertainty. bur bury is warning they could un -- profits. it stressed it is well positioned for the holiday shopping season. the group reported a 15% rise in revenue in the first half. meanwhile, shares in mulberry delivering double digits. mulberry is staying optimistic with a flagship store planned for the late spring. a rides in pretax profits in line with expectations. the online retailer that went public in march says it's on track to hit full year tarlths. sofia is a co-founder.

helia, our uk business editor has joins us on this conversation around luxury stocks. a lot of these luxury players are popular in china. >> i think it's a different international environment, travel retail which has the impact of these companies and results today. i think, however, if you contrast the results and the luxury ones, it's interesting to see the digital news and how it contrasts to the rest of the news. >> is it difficult to play the luxury trade, as well? >> i think burberry has done a familial job doing that. i think they're having a more difficult time today in light of

the international environment. they've been the best in terms of luxury innovation amongst the luxury peer group. >> and could the slowdown be offset by advanced economies like the uk and the u.s.? >> i think it can help. i think burberry, it's interesting to read their results this morning is that the word digital is one of the passwords that they mention followed closely by collect. so they still recognize digital the driving growth. >> weevent the uk supposed to be seen as a bright spot across through zone? >> well, yeah, in terms of the uk economy. but in terms of football, i don't know what that data is.

mulberry is a brand. there used to be a time when it appealed to a certain set of women. i'm not sure it's capturing the consumer. burberry had a million friends on facebook. this is hugely innovative. what you're seeing is, like we have many times before with burberry, there is a slight shift in tentment when it comes to asia and things become radically thrown off balance. aof these companies are going to blame the oil prices today saying if things go wrong, blame ebola, blame the oil price, but god forbid you blame the company itself. there is a lot of sentiment where year seeing that shifted

downward and we see a reflection in the price. >> how big an impact can that have on the retail market moving forward? social media specifically? >> burberry as an example, i think they have groan over time to an absolutely increasable number. they would say themselves this has had a big impact in terms of helping their revenues and, therefore, feeling their growth. so i think social media is one of the components that drives digital, especially in the luxury environment. >> thank you very much for joining us. helia, thank you, also, as ever. we've got flashes coming out of catalonia where the head of catalonia said there will be a vote. he's calling this vote more of a consultation of systems. we've been waiting for an

announcement of this sort since the people voted but the madrid government declared it illegal. moving on, u.s. earnings season is set to steal the show today with a trio of banks kicking off results. investors will want to hear about the recent data breach and ceo jamie dimon's help. intel gets the ball rolling for the tech markets after the market close. on wednesday, we hear from bank of america .blackrock as well as ee bail and netflix. morgan stanley closes out the week with financials on friday. >> so could solid earnings brings a welcome reprieve from market volatility or are the big swings here to stay? the u.s. volatility index spiking again yesterday, climbing up by 16% and hitting

the highest level since june 2012. back above 20. that's a big concern for traders, wilfred. >> indeed.eventually going back. for the country's exports, 80% to the u.s. u.s. growth is a good thing. so the fact that u.s. rates are going to go higher as an indicator of stronger u.s. growth is fundamentally a good thing. but having said that, the volatility that comes along with that, particularly for emerging markets is going the be a challenge. it's going to be a significant challenge. still with us is stewart

richardson. stewart, let's talk about the volatility index, gaining about 50% yesterday. as an investor, where do you put money in terms of increasing? >> in terms of volatility spiking, this goes back to what we talked about earlier with that big reach view we've seen over the last number of years, if momentum is changing in price itself, people are going to have to start to look at hedging activities, which is why the vix is spiking up. we get into the world of risk management. where people say as long as volatility was low and as long as price was trending higher, they could put on more and more risk. when volatility spikes, they're going to take risk off. that roll tilt can compound itself. so we could be, at that point where if selling momentum

continues, we could see the vix move quite higher. 22 might feel high, but it's not high. >> it's important to know there are some sectors outperforming, utilities and consumer staples both up despite this rise in volatility. maybe that is a place to put money. >> you have to look at more safe haven type sectors and assets to park your money in. the collapse in yields, cleel you'll look at utility necessary that environment, consumer staples. i think earnings is going to be really, really important. we've heard companies talking about currency head winds. it's going to have an impact on q4. we had a very interesting juncture here.

>> this is, i think, the change in dynamic in the last six, seven weeks. not only are we coming towards the end of qe, but even the fed talking about the head winds to the u.s. economy, etcetera, etcetera. with this collapse in rates, it's fair we're going to push out this cycle quite dramatically. it looks like on the current rate of market, decline will be sometimes 16. the yield curve is benign. people are looking at the safe haven assets. >> stewart, thank you very much. still to come on the show, markets around the world are bracing for fed rate hikes. but our next guest says qe4 is more likely. jason is with us after the break.

welcome back. european markets trade in the red after another sell-off on wall street sentiment likely to be hit further with the zew data due in appear hour. the stoxx 600 hangs up on its plan to buy u.s. unit t-mobile. the french carrier lifting stocks across europe. burberry leads the decline on the ftse as it warns of tough trading continues while mulberry

plummets onnen vesters warnings. >> citi, jpmorgan and wells fargo are in focus. we are waiting for uk inflation data to break. let's have a look at sterling in the meantime. sterling at the moment trading at 1.6015. the data is breaking as we speak. september cpi came in at 1.2% year on year. it had been expected to come in at 1.4%. last month, it came in at 1.5%. so it is lower than expected. sterling moving down off the impact of it. it's at now 1.5985. the month on month number is unchanged. it's come in again at 0.4%.

let me confirm that for you. the big headline number, the cpi year on year 1.2%, having been expected to be 1.4% last month. sterling off 0.6%. the month on month number was, in fact, unchanged. previous reading in august was 0.4%. >> retail price index out for the uk. that is what the rpi represents. coming in at the lowest level since november 2009. the estimate was for 0.4%. it did come in at 0.4% on the month and up 2.4% on the year. again, still the lowest level since 200. that will be in focus for investors. we're looking at the sterling/dollar weakening against the dollar trading at

1.5990. >> we're in the red today, but not too significantly. both the uk and germany basically flat. france is off about 0.25%. italy bucking the trend fractionally in the green. let's look at the euro stoxx 50 continuing its weakening trend over the last 30 days. >> we have been seeing the flight to safety tick lower at around 2.24% now. that is a yearly low at 2.24%. we're be getting that sentiment report in about half an hour's time. 10-year guilt trading at 2.14%. >> let's have a quick look at

forex and cable. the september cpi has come in weaker than expected. >> a lot weaker. but that's much lower than -- remember, the bank of england targets 2%. those being asked to compile this data says one of the reasons is the lower transportation costs. but that inflation number again, 1.2%. >> mark carney raising rates sooner than expected? >> much less. if you don't have inflationary pressures, why would you raise rates? so the dovish members of the mpc will be saying we have no reason to rate raids at the moment.

>> mr. carney has said global inflation is a global concern. he said trouble in european economies would influence the bank of england's path. >> there is a persistent disinflation in a couple of the economies. clearly, that's coming through. the commodity outlook is in some spaces a increase in supply, certainly in the oil market. the shale revolutions in the u.s. is material. but, yes, there is weaker global dmand demand relative to global potential that is producing a very benign global inflationary environment. that is something wernl we take into account. >> that means central banks around the world aren't stimulative enough. >> in some cases, the stomach

ewe husband they're trying to provide still isn't getting through to the real economy. let's go back to europe. the steps being taken by the ecb to run stress tests, do the asset quality review, ensure a recapitalization of the banking system are over-shadowed this weekend by other discussions. but the fact is the core of the european banking system has had 200 billion euros of balance sheet action and that will put them in a much better place to pass on the stimulus the ecb is doing. but if you look back, i think your point is right. that recognizing the lag in monetary policy, given the impairment of some mechanismes and given the less than perfect many of unconventional policies,

the stimulus has been inadequate. >> jason joins us now. it's so good to see you. would you say that the difference in growth outlook now for the uk and the ook compared to europe would say quantitative easing has worked? >> it worked in the sense that it prevented deflation so far. but i don't think we've seen the end of quantitative easing. i do think there's a reasonable chance that it will come back next year if if deflation is to be prevented. now, my view, we shouldn't see qe ever. i would outlaw it. it would not have had qe1. but the policy of central bankers and politicians is to monetize debt when they have the excuse. >> wouldn't you say lessones from japan would suggest that's would be a foolish thing to do?

>> it does encourage people to take on debt and we're trapped. how do we get out of this? deflationary forces are coming back with a vengeance. so i think there's every chance that we see qe next year. >> and how do you find opportunities to invest in europe when the eurozone is head to go what some call a japanese style deflarary trap? >> i don't invest in europe. i invest in asia. i think europe is a mess. i think politically europe is a mess. but there are some very well managed company here in europe. >> let's talk more about the central bankers you mentioned there. yellen and draghi and carney, they have come in.

that kind of all they've got permission to do? >> it's an odd world we live in. market forces determine most price webs but we have politically appointed bodies to price money. i think in 30, 50 years time, we won't have monetary policy. we won't have central banks. the only countries that will have these things will be banana republics and for the moment, they will monetize the debt when they have the opportunity to do so. they're given targets. they feel heavy to speculate to make up for the erosion of inflation. >> we'll talk about jason's view hes on where to invest in asia

in a few minutes. greece could secure a new line of credit if it meets the strict terms of its bailout exit. the report says the topic wag discussed at yesterday's euro group meeting. the chairman has warned any extra credit would be continual on further economic reforms which could prove unpopular in greece. germany is sticking with its plan for a balanced budget next year. the government would focus on balancing its budget rather than investment in enhancing growth. renzi plans to delay a balanced bumt until 2017. the b is warning the budget must stay in line with growth stability. the european union judges in lux em board will begin revulg

challenges later. the case was originally brought by a number of academics and politicians who believe the bond buying plan violates eu law. today marks the first time the european court will consider the case after it was brought to them by the german constitutional court. the ecg is expected to rule by summer. with draghi's claim the ecb will do whatever it takes to save the euro ultimately hang in the balance. annette is in luxembourg live with the latest. >> thank you so much. we don't really know yet how the wording of those structures in the european court of justice. but a lot of analysts will listen carefully. it's up to them to ask the questions. which questions they ask might gives an idea of where they're coming from. the majority of analysts is thil that the european court of

justice will not forbid the omt program and will, in other words, allow it perhaps with some concessions. let me talk, as well, about the meeting as we were hearing renzi, the italian prime minister is looking to boost spending. that is, of course, one of the big topics here in lx luxembourg as the french will present the budget tomorrow and he's under very much pressure according to the euro group head to actually cure the budget. there has been been any movement when it comes to the french budget so far. but what is clear is that the

ultimate decision on whether they can have that budget lies with the european commissioner. it could be for the first time the european commission says no, you have to resign your budget. i was also asking whether they're going to discuss the capital hike of the european investment bank. take a listen. >> we also have close cooperation. we try to make the lending bigger than at the moment. we have to look what is the best way to do it. for instance, using european budget. but at the same time, we have to be careful not to crowd out private money. >> so there's a lot at stake here at the discussion. the big buzz word are investment. but there seems to be some recognition that there needs to be more public spending.

there won't be a lot of attention from private investors. they don't need the european investment bank to come up with that. normally they find them themselves. so the big question is what chunk of money they will come in on as the german government is standing by to have a balanced budget and no extra spending. moving on, will ireland cave to international pressure and close the double irish tax loophole favored by apple and google? the speculation the government will end the scheme, which allows firms to pay very little tax on their understander national earnings. the controversial double irish will be closed for 2015. catherine joins us with more on the story.

>> and it looks like the irish government is probably not going to quite kill the golden goose here so much as put it out to pasture for a few years while they try to find the next replacement for it. people who are ready in that scheme will be able to change for another five years. and i think also what i'm hearing from sources in dublin is there's likely to be a lot of big broad brush statements around this, not so much on exactly what's going to happen and the absolute fine print of how it's going to happen. what you're also likely to see today is tax credit for the uk.

i don't think the irish government really are going to do anything that's going to endanger those companies staying in ireland. and continuing to hopefully employ more people in dublin and elsewhere in ireland. but also might be quite interesting from broader economic per spentive is seeing a reduction in the level of which we start paying income tax, which would be something that might help those in ireland who like being a bit less behind and not quite part of the big economic recovery, might help them feel likely more -- by the government. there is the electric in 2016. >> catherine, thank you very much for that. the double irish question, if you want to find out more about that, cath rib's article is on cnbc.com. still to come on the show, we are on kim jong un watch aes

makes his first appearance in 40 days. more on the health of the north korean leader up after the break. from fashion retailers to healthcare providers, jewelers to sporting good stores, we provide financing solutions for all sorts of businesses. banking. loyalty. analytics. synchrony financial. bankinengage with us. ytics.

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north korean state media has released images of leader kim jong un after disappearing from public view for over a month, the images show him looking at pictures of the leader on television stream. he is shown visit ago housing development while holding a cane for support. he had not appeared in public since attending a concert with his wife on september 3rd. russian prime minister medvedev says china and russia are opening up new possibilities as the nations put pen to paper over 38 bilateral deals. seeking cooperation on energy trade and finance, the agreement was signed during a visit to moscow by china's premier. trade between russia and china increased from $40 billion to $90 billion. japanese automaker suzuki's

operating profit likely fell for the first time in eight quarters. we have the story live from tok tokyo. >> hi, wilfred. the uk is reporting that suzuki's operating profit for the july-september quarter likely fell 10% to $370 million. sluggish sales in the domestic market after an april sales tax hike weighed on earnings. the automaker's car sales rose 6% by volume. small compared to the previous quarter's 11% growth. profitability dropped from the intense competition, as well. unlike other japanese carmakers, suzuki generates more than half of its operating profit. the swelling demand tends to hit suzuki harder than other carmakers. sales volume in the indian market was up on the year, but low price cars made up much of

the rise. so the overseas operating profit likely stayed flat for the first fiscal half. suzuki shares fell 5% after disappointed investors sold stocks, but managed to end the trading day with a 2.4% drop. wilfred, back to you. >> thank you very much. china's pboc has cut short-term borrowing costs for banks for the second time this month to ease credit conditions and send off a prolonged slowdown. >> jeff spoke to the indonesian finance minister at the imf meeting in washington and asked whether he was concerned china was falling behind in its stimulus efforts. >> slowdown of economic growth in china may happen on the commodity prices. that is why from my perspective, i think it is time for the government now to change the benefit of development. we cannot conveniently rely only on natural resources or cheap labor. i think it's about time now to focus more on the quality of

human capital, you know, improved infrastructure, governance, growth not only to rely on this, you know, natural resources. >> jason is still with us. jason, for a country like indonesia, is the biggest risk to their growth outlook what china is doing? >> it is. a lot of that has been going to china. china is importing less as it wants to help local producers. so a slowdown in china will be negative for asia. the markets took too quite positively.

how reliant are they? >> i think they're quite relightant on those to decline sharply. they don't want and aren't attempting to reaccelerating the growth rate, but they don't want it to fall you have a clip cliff. the stop stock is very worrying. i do think growth will increasingly be at a lower level. >> russia signing a deal with china to help weather the sanctions imposed by europe and the u.s. what kind of economic impact could this have on china and russia? >> i think these two countries will become much closer trading partners as russia is able to trade less with the west. but russia's economy has been exposed as very, very fragile. 90% of its exports are oil and gas related. there aren't many entrepreneurs

in russia. russia is going to become a lot more dependent on china and i think russia faces a big slump in its economic growth rate. i can't imagine in decades to come that china actually buys a lot of land from russia in the same way that the u.s. sports alaska in the same way in 1867. >> sounds like we're a long way from that at the moment. it's very much possible. but let's stick with china more generally. you're negative on china, yet you're positive on the likes of macau which has underperformed significantly here. >> there are only six licensed operators in macau for operating casinos. we do think they will tap into a greater element of china's population in years to come. and macau is in greater china where gambling is legal.

solo we feel the slowdown will continue in china, we think macau is a place where there are well managed companies that can continue to tap into rising consumption coming out of china and with other countries around the region. >> and let's talk about your fund. performance has been strong over the long-term. it's 4.7 billion sterling today. why should people consider investing in asia by an equity fund with the yield criteria? >> we're looking to maximize total return coming from growth and income. and i think if we can generate an average yield of let's say 4.5% over time and get a growth rate of 4.5%, as well, giving a total return of nine on average, we think that will outperform most asset classes. there are plenty of growing companies across europe. good dividend is a good sign of

corporate governance. >> and let's talk about tapering back in may 2013. that hit markets strongly. have things changed in asia over the last 18 months? >> yes. there was a bit of a panic in may last year because people didn't know what was going to happen with monetary policy. now people are a bit calmer. we've seen bond yields falling this year. a lot of stocks haven't rerated. i think that does prevent opportunities. a lot of real estate investment trusts or property trusts now have very high dividend yields. 5.5%, 6%, sometimes even higher percent. and compared to local bond yields and global bond yields, that looks appealing. particularly in countries like singapore where we're fairley comfortable with the currency, the dollar. so i think in many places, many countries in the region things have settled down. mining is suffering more from

china than from the u.s. >> very interesting on that front. let's talk about one other country, indonesia, southeast asia, the philippines. still positive on that structurally? >> yes. the outlook for the pill means short, medium and long-term looks fantastic. it has the best demographics in the world. gdp is half that of thailand. we don't see any reason why it should be any less and we do think they will catch up over time. i spent two weeks in the philippines last year. there was a lot of dynaism there. >> jason, thank you very much. and a countdown to bank earnings. what should you expect in the likes of jpmorgan and citi? we'll discuss with experts after this break. uting) location. uting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do,

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welcome to "worldwide exchange." >> these are your headlines from around the world. the roller coaster ride continues. the s&p higher after the s&p 500 closing at the lowest 200 moving day average. investor eyeing a host of key earnings stateside with citi, jpmorgan and wells fargo kicking off the earnings season for banks. >> brent trading more than 1% lower after the iea significantly cut its forecast for oil demand and warnings

crude prices will fall further. fidelity has a new person in charge. the mutual fund giant named abby johnson is taking over from her father who led the company for nearly 40 years. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> and the german zew economic sentiment indicator has fallen into negative territory for the first time since november 2012. it came in at 6.9 for its last reading. it was expected to come in just in positive territory at 0.8%. but it came in at minus 3.6%, so a significant fall in german economic sentiment. as you can see, through/dollar has weakened further on the day trading at 1.2672. it was off about 0.5% before

this data. so only a slight further fall in the last ten minutes. but that economic expectations, zew coming in at minus 3.6% versus 6.9% previously. >> and reports citing geopolitical tensions and weak economic development in some parts of the eurozone as a source of weakness and one of the reasons why we did get that lower read on german sentiment. that we're looking at the euro/dollar trade significantly lower, now below 1.27 at 1.26. >> and that economic sentiment following the three main bits of hard data releases we had last week. factory orders, industrial production and trade data out of germany. i'm surprised economic sentiment has worsened, but it was worsened much more than expected and significantly down. >> also, on top of that, we just got eurozone industrial output numbers which have fallen more than expected in the month of august. that, of course, being digested by investors, as well.

we're looking at investors rotating into the bond market. we are seeing a move into equity market, as well, but focus on the euro/dollar which continues to weaken at 1.2664. >> let's have a look at euro/dollar again. 1.2667. it's now down 0.7%. it had been down about 0.5% ahead of the latest zew. so another big move down for the euro today. let's go on to european markets which are in the red today, quite significantly. the dax had been down about 0.5%. the ftse 100 down 0.65%. france and italy down 1 is%. >> interesting, because we got that weaker than expected data out of germany. industrial production numbers coming lower than expected. now here across the eurozone, the average industrial output at negative 1.9%, much lower than tan list estimate of 1.4%. something that, of course, markets are reacting to. let's get a look at the bond market, as well within to see if

we're seeing that flight to safety. guess what? we are. ten-year bund yield right now at 0.85%. so that yield ticking lower as we see that transfer into bonds. let's take a look at u.s. futures because it was a rough day on wall street when the s&p 500 breaking its 200 day moving average as well as the 1900 psychological barrier. the first time it broke that key technical level in over two years. also i want to tell you in the last 20 minutes, that's when we saw the sell-off on wall street accelerate, taking a look at u.s. futures, though, higher across the board. we'll have to see if that holds as we approach that wall street open. let's bring in hugh green, manager of the cf milton u.s. opportunities fund. hugh, really interesting to see weak economic data out of europe impact global sentiment. do you think the data we just got out on germ yaen sentiment, on industrial production, that will weigh on markets today? >> definitely, it will. you have to look at the s&p. the s&p is very different to

main street america. 42% of revenues last year came from overseas. overseas demand has a really big impact. >> you know, some would say that we haven't had a market correction since 2011. this is healthy. it allows valuation to be reset. it allows investors who haven't been playing this market to get in and buy some of the dips in the market. do you think we'll see that? >> i think we're likely to see a correction. i think the question is do we see something worse? are earnings expectations going to be reset as management teams and investors look at the current rate of demand into next year and this year. >> year seeing improving consumer sentiment, you're seeing business sentiment, with figures out later today. expect to be strong. you're seeing a very good employment situation which is

now finally beginning to feed into better wages growth. again, as i said before, the s&p 500 and the u.s. large cap is not the u.s. economy. >> let's take a look at the u.s. markets in terms of where we're seeing the weakness. the russell 20 00 continues to underperform its trading and correction territory. but i'm having a hard time understanding why we continue to see this index weaken when the u.s. economy and u.s. economic data continues to come in better than expected. the small cap index is apprised of more domestically oriented names. these are the names that should perhaps be moving higher, no? >> logic. i think why you've seen this perform so far this year is investors have become so much more risk averse. because of that, they stepped back and wanted to earn the security of larger countries. i thought the move yesterday was very important. the russell 2000 is only down 40 basis points compared to 160 in the s&p 500. and i think you're beginning to see a turn in investors sentiment towards smaller companies, which as you say,

much more domestically focused. >> and this volatility, of course, back with a vengeance. we must create pocket of value. which sectors are you most attracted to? >> i think it would be financials, the banks especially, given the strong domestic process. you are seeing confidence which is feeding through into better lending, whether it's business lending or consumer. also seeing strength in certain pockets in industrials, as well. >> could earnings change the story here as companies show they're growing earnings through revenue, not just by cutting costs? that could lead to a turn around in the markets, perhaps, do you think? >> i think it's not just the revenues that we're going to have to focus on. it's margins and the earnings per share. if you get a lot of nervousness in the markets, you'll see buybacks, for example, which is a big part of earnings so far this cycle. you'll see earnings estimates maybe come down on the back of that. >> in november and december, easily a strong time for buybacks. we'll have to see if that trend holds true in 2014.

>> indeed. hugh, we'll be back with you in a few minutes. in the mean time, let's take a look at other top stories. the nurse who tested positive for ebola has been identify. she has been in isolation since friday. she was part of a group of workers told to monitor their temperatures after treating thomas duncan. cdc director thomas frieden says there are failures which must substantially change. we will double down on training, outreach, education and assistance throughout the health care system so that we can increase the awareness of ebola and increase the ability to respond rapidly. >> on monday, president obama met with advisers at the white house regarding health and human services sylvia personlow to discuss the u.s. response to the ebola outbreak. fears about the virus may have

been behind the drop in airline and travel stocks on monday. as you can see there, all moving significantly down into the red. shares in focus, they have been suspended in milan after trading down 5%. this as the giant and r raybanmaker announced who will take over control. the ceo announced his resignation yesterday just two weeks into the job. >> abby johnson has day-to-day control of the operations for fidelity. her father will remain as chairman. the move, widely expected, was announced in a company memo on monday. fidelly has $2 trillion in assets, but has been struggling with redemptions as investors switch out to more passively

managed products. iliad is dropping its bid to buy u.s.'s t-mobile. the parchbt company, dutch ya te deutsche telekom was not convinced iliad could run the u.s. business better than current management. deutsche telekom is down about 0.7%. iliad bucking the trend, up about 12%. now, the countdown is under way for the first slew of u.s. bank earnings out before the open. will wall street get what it's looking for when jpmorgan steps up to the plate? we'll discuss after the break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities.

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welcome back. european markets fall into a sea of red as u.s. futures point to a mixed open. german economic sentiment turns negative for the first time since november 2012 fueling fears of a slowdown in europe. and jpmorgan kicks off bank earnings in the u.s. intel takes the baton aftermarket closer.

>> and we got the zew german sentiment report which came in weaker than expected. it cites dpeeo political tensions and weak economic backdrop. they cannot rule out third quarter growth. zew says if inflation expectations continue to decline, it is justified to do quantitative easing. we are looking at the euro, a fresh day low against the u.s. dollar trading at 1.2662, down about 0.7.%. so investors taking the data that came out today very seriously. the zew german sentiment report coming weaker than expected. again, the eurozone industrial production disappointing. >> earnings taking center stage, that will be watched closely in the u.s. u.s. earnings getting under way with a trio of bank supporting results before the opening bell. jpmorgan is up first at 7:00

a.m. eastern. investors will want to hear more. city citi may give an update on its capital plans after its cfo warned third quarter expenses could be higher as well as the ongoing probe of its bonamex unit. checking shares, down about 1% across the board, although wells fargo bucking the trend, trading flat in frankfurt. let's get back to hugh. how do you mran play the fm sector ahead of earnings? >> we are very much focused on the regional banks.

long-term problem for those banks is the regulatory earnings that has been placed upon them. fdic is constantly demanding these companies hold more and more regulatory capital. it destroys profitability and keeps shorter margins. >> so have the regulators gone too far? >> they don't really care about profitability. the only thing they do care about is cashback. >> and with jpmorgan about the data breach and further clarity on that? >> i think we'll get them talking about it. i think we'll get them talking about the outlook for trading, the investment banking business, the currency and fixed income trading. volatility over the last couple of months has been very low. trading volumes has been subdued

on that side of the business. >> in general, potentially raising the rates environment, which of the banks are most likely to profit the most from that? >> wells fargo is probably the most directly exposed to it. jpmorgan has much more fee income, is much more exposed to volatility into trading. >> and let's talk more generally about some of the other companies, of course, due to report tech. another big sector we have coming up. are you looking for any big sprietss there? >> tech is perhaps one of the sectors that could have the biggest negative surprises. it's in what guidance they give for the tech sector. you'll see the biggest swings in volatility amongst those numbers. >> would that point you towards the consumer sector? >> certainly the consumer

discretionary sector should benefit from consumers having more money in their pockets at the end of the month. when you look at the consumer sector, and the companies that comprise it, a third of those companies are media. the other third is made up of retailers under threat from companies like amazon and are struggling. although the consumer sector should be doing well, many of the larger companies may or may not benefit directly from it. >> hugh, thank you for that. we're also hearing the jpmorgan numbers. >> according to the website, they're saying jpmorgan's third quarter results have hit the wires early, indicating a profit as legal expenses have eased. so, again, we're looking at jpmorgan shares, trade slyly lower in frankfurt after that earnings report. according to shareholder.com has come in earlier than expected. they were expecting jpmorgan, the bank, to report earnings at

around 7:00 a.m. eesh in the u.s. but it seems some of these headlines coming out, again, according to shah hair holder website. >> that is apparently an you a they wantic document that has come out. net income of $576 billion or 1.36 per share in the three months to the end of september. that was compared to a loss of $380 million in the year earlier for the same quarter. that is an authentic document and we will bring you more on those shortly after the break. still to come on the show, dublin looks set to close the so-called double irish loophole posing a strike to apple. havine checked bag. with my united mileageplus explorer card. i have saved $75 in checked bag fees. priority boarding is really important to us. you can just get on the plane and relax. i love to travel,

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as you can see, futures indicating a slightly lower open for the s&p 500. futures have worsened over the past 20 minutes. the dow jones was indicating a higher open mow in premarket trade. the nasdaq which has seen a lot of volatility as of late because

of the so-called momentum stocks, up about four points in pretty market trade. >> the ftse 100 down 4.6%. france down 0.8%. italy down 1.15%. now will ireland cave to international pressure examine close the so-called double irish tap loophole favored by the likes of apple and google? the speculation allows to pay very little tax on their earnings.

companies using it already can do so until 2020. catherine joins us with more on this story. >> what we're hearing from people in dublin is this is likely to be a more broad brush commitment to gradually closing it. because apart from anything else, the irish hasn't seen what other countries, like the netherlands, for example, are going to do yet. i don't think they're going to unilaterally close it as quickly as that. but having said that, there is growing international pressure from the u.s., from the eurozone partners, too, to try and make sudden moves towards this. but the government perspective, too, they want to make sure that it's not just being totally wiped out and they're not totally disincentivizing those company. you're likely to see a more

movement, intellectual property or r&d, something similar to the regime that's recently been enacted here in the uk. that's something that i hope the irish government will keep things from companies which derive a lot of their income from ip and in the country. the irish government has -- it's english speaking and well educated pop laying. so i think the proof of the pudding will be that those companies do stay there and don't move to the netherlands or somewhere else further away. >> absolutely. catherine, thank you very much for joining us, as ever. apple is holding an event on thursday where it's expected to unveil a new ipad. but forester research says don't

get your hopes up for a bigger tablet. it says the most likely scenario is an enhanced version of the ipad air. let's have a look at apple trading in frankfurt. down 1.35% today. sticking with tech, google is expanding its delivery service and will start charging a membership fee 80s steps up the battle with amazon prime. "the wall street journal" reports starting today, google will charge $10 a month or $95 a year for unlimited, same day and overnight delivery of orders of $15 or more. google express let's customers buy items from physical stores such as costco and staples. taking a look at google, down about 2.7% in frankfurt. important to know, we did see a broader sell-off yesterday in the tech sector, the u.s. on top of that, wilfred, the nasdaq getting close to enter correction territory, down about 8.5%. >> so all eyes will be on intel

after the bell with its earnings. big tech stocks due to report in the next few days. up next, meet the new boss of mutual fund giant fidelity investments. it's a name many people should be familiar with. before we go, we'll leave you with a look at the futures. weaker than expected european data could weigh on markets. the dow is trading at a six-month low.

. welcome to "worldwide exchange." i'm seema mody. >> and i'm wid wilfred frost. these are your headlines from around the world. >> u.s. futures point to a mixed open after the s&p 500 closes below its 200-day moving average. volatility hits a new high. >> citi, jpmorgan and wells fargo kicking off reports for banks. the german zew fomg falling into negative territory for the fourth time since 2009. fidelity has a new person in charge. abby johnson is taking over as ceo, a role she's taking over from her father who led the

company for nearly 40 years. >> announcer: 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 on "worldwide exchange." here is a look at the futures. futures pointing to a lower open across wall street after the dow traded at a six-month low in yesterday's trade. stocks are choppy for all of monday's session with a sell-off accelerating. technical data dominating trade on wall street yesterday with the s&p 500 breaking its 200-day moving average. the fourth time in two years, it's below 1900. a key psychological level that traders keep appear eye on. i also want to bring your attention to the nasdaq down about 8.5% since its recent

highs. getting close to entering correction territory. you can see red across the screen. we've been getting weaker than expected data out of europe. inflation numbers, the zew sentiment report out of germany citing geopolitical tensions and weak economic data as for the reason for that negative read on sentiment in germany, the xetra dax down about 72 points. the ftse 100 down about 44 points after that weak inflation read. we're looking at the french markets down about 41 points. italy showing a loss of around 243 points. the euro stoxx 50 is a gauge of stocks around the eurozone, currently down by around 33 points or 1 is% following that weak data out on the economy. wilfred, over to you. >> thanks, seema. let's have a quick look at the euro/dollar. the euro/dollar has weakened during today's trade, now down 0.8% at 1.2650. we have had data out this morning, most significant being the german zew economic

sentiment indicator. which came in last month at 6.9%. it was forecast to be just positive around 0.4% and it came in negative territory, minus 3.6 ps. the first negative reading since 2012. that feels the hard data release of the factory orders, industrial production and trade data that we had out of germany last week. the question, really, is whether u.s. markets will focus on germany again and open lower. >> absolutely. it was that weaker than expected report on german industrial production last week that sparked that sell-off in u.s. equities. today we did get a negative read on the zew sentiment report out of germany. obviously, not good news coming out of germany. yesterday was a rough session on wall street. the s&p 500 breaking that key technical level. i've got to say, the nasdaq hosts a lot of tech names. yet again, we are seeing tech

sell-off. one of those momentum stocks, progo, netflix trading below their double digit highs. >> all eyes will be on the u.s. earnings season with a trio of banks reporting results before the opening bell. jpmorgan is first up at 7:00 a.m. eastern. investors will want to hear more about the recent data breach and jamie dimon's health. then wells fargo and citigroup are expected to come out. intel comes out after the market closes. on wednesday, we hear from blackrock as well as ebay and netflix. thursday, goldman sachs and google are set to steal the show. >> christine, thanks for joining us. ahead of a slew of earnings reports, that will give us a better indication of how some of these companies are faring on the back of better than expected economic data out of the u.s. but a lot of concern about the resilience in the greenback. the u.s. dollar, how big of a

concern or headwind do you recognize the u.s. dollar being on earnings this season? >> you know, we don't think it's going to have that great of an impact in the third quarter. perhaps in the fourth quarter, we'll see more of that shake out. although the dollar has appreciated really since the spring, a lot of the appreciation has only been in, really, the last month of the third quarter. so we wouldn't expect to see too much of a negative impact in this current earnings season. i'm sooul sure he'll see mention of it. i expect to see many companies use it as an excuse this quar r quarter. i wouldn't expect to see it shake out until the next quarter. you're going to be looking at tech materials and energy to see ta impact of the greenback. you'll be looking company by company. how do they do business? do they sell products and services in dollars? is it in the local currency inspect there's going to be different implications of each.

>> guidance, that's probably where we'll see the u.s. dollar being mentioned by companies. which sectors do you think could provide the biggest surprise in terms of earnings froeth this quarter? >> well, you know, it's interesting because the two biggest leaders or expected leaders for earnings growth this quarter are materials and energy. they're expected to lead on the bottom line, rather, with about 14.5% on energy and about 12% to 13% on materials. yeah, if you look at top line growth, they're expected to be two of the weakest sectors with about a percentage and a half of growth. so we're really going to be looking at those two sectors in particular. certainly we know with energy, with brent drud crude oil year over year, now with wti crude joining present crude at the $90 a barrel level, we're certainly going to be looking at energy to see how that all shakes out. on the materials side, you know, the industries in particular that look to be impacted are metals and mining.

we had alcoa out with a great report last week. hopefully they're there to offset some of that as well as construction materials. those cities tied to the u.s. housing market are those that are going to be linked to materials. >> with u.s. equity markets struggling to find any form of positive sentiment, how important is it that this earnings season is a solid one? >> i think it was always, you know, going to be an interesting earnings season just because investors were looking to see that the momentum from the second quarter came into the third quarter here. but more than ever now with markets as volatile as they've been, we're going to be looking for a positive earnings season. thus far, the estimate for the third quarter is at about a 9% year over year growth. on the bottom line, about 4.35% for revenues. it's looking to stack up to be quite a good earnings season, hopefully enough to push markets higher and offset some of the global tensions and some of the weakness in europe. >> christine, thank you for now. christine is going to stay with us. we're going to talk about a few

of the tech stocks due to report in a few minutes. let's take a look at some of the earnings we've had already. burberry is trading at the bottom of the ftse 1 00 today after warning currency warnings could unrattle profits. it stresses it is well position rtd for the holiday shopping season. shares in mulberry shedding double digits after delivering another warning on annual profit. first half revenues up 17%, citing a fall in sharp demand in the uk. on the other hand, trading higher, boohoo. the online retailer says it's on track to hit full year targets. that stock up about 1.7%. >> and let's take a look at today's other top stories. the nurse who tested positive for the ebola virus in dallas has been identified. she developed a low-grade fever and drove herself to the hospital.

tam was told to mon store her. >> we will double down on training, outreach, education and assistance throughout the health care system so that we can increase the awareness of ebola and increase the ability to respond rapidly. on monday, president obama met with advisers at the white house, including sylvia borell to discuss toous response to the ebola outbreak. shares about the virus as well as a global economic slowdown may have been behind the drop in airline and travel stocks. delta air lines losing about 6% in yesterday's trade, united airlines down about 7.3%. next, could the new boss of fidelity be the most powerful woman in the world of finance? we'll head to cnbc hq to find out. best.

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earnings takes center stage this week with nearly 75 companies in the s&p 500 reporting. technology will be taking focus, specifically the chip stocks. the philadelphia index conductor list now in correction territory, down about 3% from

its recent highs. one of the reasons? slowdown in china. plus, microchip warning investors of a broad based industry downturn. microchip, by the way, down 3%. analysts will get a better look at the health of the chip sector when intel reports earnings today. focus will be on pc growth and its expansion into mobile. but because of that warning coming from microchip, wilfred, a lot of focus on what microchip will say today. >> absolutely. a lot of focus inn tell. tech stocks will be in the limelight in general these days. google on thursday. christine short, vice president of estimize is still with us. christine, what are you looking for in those numbers? >> well, you know, actually, all of those names are expected to do quite well. tech as a whole is expected to grow about 7% year over year. middle of the pack as far as sectors go. intel tonight looking for about 635 cents per share, 14.5

billion for revenues and the 65% per share will be a 12% year over year growth. eb eb ebay, the first report we've seen since the paypal spin-off. they're expecting earnings growth of about 5% year over year. but netflix is the surprising breakout for this quarter. they're looking to post 99 the cents a share when they report tomorrow. of course, remember last summer, secretary and third quarter, we did see some weakness as they raise rates. i think that's a spectacular 9 on% troeth. >> what about ref knew growth? >> it's true, we're expecting a modest increase on revenues across the board, about 4.5% for the entire s&p 500. but like you're saying, you

know, it's been very hard to find that modest growth for the last several quarters now. i think if you look at some ft o banks, goldman sachs is looking for about 21% growth on the top line, paired with about 30% growth on the bottom line. so there are certain companies where you can see pockets of double digit growth. overall, we're seeing in the low single digits. last quarter, we saw 5% greeting for the entire s&p 500. so we're hoping that the 4.5% we're expect iing. meet the new boss at fidelity investments. jackie deangelis joins us from cnbc had been q with more. >> good morning to you. what dellty naming abigail

johnson as its new ceo effective immediately. johnson had control already of day-to-day operations. she takes over from her father, edward johnson. he will stay on as chairman. in a memo, edward johnson says the move will help fidelity strengthen its industrial leadership and will allow it to enhance the experience we provide to our customers. fidelity is the second largest asset funds company. fidelity has been struggling. morguestar says the company had nearly $19 billion in draws over funds over the past year. abby johnson, as she's known inside the company, worked summers there before going to hobart and william smith colleges in new york. she worked for two years at consulting firm booz allen

before joining fidelity in 1988. its was 51% owned by employees and the johnson family controls the other 49%. abby johnson's stake has made her a very wealthy person. the johnsons are very private, almost never doing interviews. analysts say she has all the skills needed to run the company, even if she's not a public figure. >> before we go, these are your headlines. jpmorgan earnings kick off a slew of intel earnings. european markets follow wall street into a sea of red as u.s. futures point to a mixed open. fears over a slowdown in

europe's core. the euro trading at a fresh low.

welcome back. germany is off 1.16%. the zew economic sentiment survey came into negative territory for the first time since november 2012. france is off 1.4%. italy off as much as 1.8%. european markets weakening further in the last half an hour.

the session down 0.8% so far today, trading at 1.2652. >> and will the disappointing data we got out of europe today weigh on u.s. markets? that is the big question. right now, the s&p 500 indicating a lower open. this, of course, after the s&p 500 broke its 200 day moving average, the first time in two years. the dow jones industrial reaching a new six-month low in yesterday's trade. the nasdaq, though, trading about 8.5% below its recent highs. that index pointing to a higher open by around 1 is.5. >> how do you make money in markets like these? >>. >> this would be a rebound given the weakness in the u.s. markets. but the long-term is to go below

11.20. we are long government bonds in germany. is 00 basis points is a lot. >> its momentum continues. >> it is not high. >> i think at the moment, it would be financials. you are seeing increased confidence, which is feeding through into better lending for consumers. >> the u.s. earnings season gets

under way today with a trio of banks reporting results before the opening bell. jpmorgan will be in focus, forecast to earn 1.19 per share on revenue of about 19.1 billion. wells fargo will take center stage at 8:00 a.m. eastern, forecast to earn 1.02 a share on 21.1 billion on revenue, the nation's largest mortgage lender has been dealing with a slump in refinancing activity. checking shares of the banks in focus, jpmorgan down by 1.4% in frankfurt. still grew down by around 1%. wells fargo trading flat. to get more on the banks, gerard cassidy. gerard, thanks for joining us.

litigation expenses have been weighing on bank earnings for the past couple of quarters. when can we put those sentiments aside? >> all the major settlements for our biggest banks are behind us. the last two that have to be dealt with are the foreign exchanges investment and for the american banks, the libor issues. >> is that going to provide a list to earnings? if so, which specific banks? >> we're going to see all the names for the major players, jpmorgan sacks and morgan stanley. >> let's talk a bit about trading volumes. they've been depressed for quite some time.

do you think those of the recent earnings could boston in earnings? >> technically in what they refer to as fixed income currency and modty trading. this is the big 100 pound gorilla for all the big banks here in the u.s. we anticipate due to the strength in the dollar in this quarter, revenues and trading will be better for these big banks this quarter. >> and the earnings were scheduled for jpmorgan to be released around 7:00 a.m. eastern, but surfaced on the internet hours earlier on a third party website. what else will be le looking for from jpmorgan, gerard? >> if those numbers were accurate that were somehow leaked out this morning, it looks like they beat on revenues across the board.

where they missed were operating expenses were higher than expected 37 the indication is that revenues were better than expected, operating expenses higher than expected. >> how important is it that we get more update on that significant data breach that we had weeks ago? >> i think it's very important. data breaches are very serious and they have to, obviously, put up better fire walls across the board. i think that will be a topic of discussion with the senior management team on their conference call with analyst these morning. >> and, john, let's step back a bit from jpmorgan, talk more generally about all the banks. are you focusing more on the retail banks or the investment banks? >> we're focusing more on the universal banks that have the combination of both consumer lending and the investment banking operations, but the investment banking operations --

>> john, i have to interrupt. apologies. that's all we've got time for today on "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. "squawk box" takes it away. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us.

good morning. welcome to "squawk box." it's the first three sessions since late 2007. the dow is now at a six-month low, but not that close to 10%. meanwhile, airline stocks getting crushed. why with oil prices lower? i think you can figure it out. the sector fueeling the impact f the ebola threat as well as the global slowdown. and there has been a kim jong un sighting. the north korean leader appears to be alive and in charge.

no sign yet of dennis rodman. it's tuesday, october 14th, 2014. "squawk box" begins right now. >> we're on screen for that. good morning, everybody. i'm becky quick along with joe kernen and andrew ross sorkin. ready or not, here comes earnings season. citigroup, wells fargo and jpmorgan. speaking of jpmorgan, jp morgan cha chase, we think there is an apparent early earnings release. according to documents posted online on a third party window website, the bank posted profits of $1 is.36 a share. if that is the case, that would be two cents below what the street was expecting, although revenue is above consensus. this is not on the jpmorgan