a very warm welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. here are your headlines from around the world. >> shares in -- plummet after a takeover of the pharma firm. >> but a deal is on the horizon for qualcomm. the u.s. chipmaker offers for csr, sending its shares soaring. oil extends its losses with wti hovering at $80 a barrel,

its lowest level since july 2012. russian prime minister dimitry medvedev says sanctions against russia have damaged international relations. speaking exclusively to cnbc, he says moscow has not closed door to anyone, but a reset with the u.s. is not possible right now. >> no, of course not. it's absolutely impossible, let's be clear. we did not come up with these sanctions, let's be clear. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> shares in shire are plunging at the bottom of the ftse after abvie said it would reconsider its takeover. you can see it's down 26%. shire has urged the u.s. giant to proceed with the deal saying

the group could face a 1.6 billion if it walks away. the news is looking at overtakover targets circled by firms looking to take advantage of stable tax arrangements in the uk. as tra and smith both down 4%. catherine, a very big move for shire off the back of this. >> absolutely. despite shire insisting that this deal isn't done yet, the market seems to think that it's no longer with us. 30%, levels not seen since before news of this deal first emerged back in the summer. so it looks as though as far as the market is concerned, anyway, this deal is dead in the water. if you look at the abbvie statement from today, what it's telling us, they're being forced to consider this deal as a result of the u.s. treasury deal. this is a change in tone from a couple of weeks ago when the chief executive was reiterating

that the deal was so important for abbvie. they're going to go back, the board is going to meet again early next week. shire is losing some of its top in the share price today. it's going to get $1.6 billion for essentially not doing that. that is going to look and the very fact that this is built into the deal suggests shire were nervous even back in the summer that this deal could fall through. we're seen bigger and bigger news. >> what does this news tell us about the broader pharmaceutical sector, because we've seen a surge in m&a as a lot of these drug firms are looking to grow their revenue as many of these names are dealing with patent expiration.

>> we still don't know whether the senate is going to pass these laws. i think there's a lot of caution here with a lot of these firms. having been overly cautious, of course, you have to bear in mind the angle to the u.s. government has been very, very against these kind of deals. we heard the president himself talking about them and suggesting that almost immoral to be taken your profits off away from the country whose business was originally grown where the revenues are. >> catherine, thank you very much for that update. moving on, csr shares are higher after qualcomm agreed to buy them ahead of the deadline for

csr to accept another offering from microchip. csr up 31%. intel's first quarter profit rode 12%. the company shipping more than 100 million for the quarter in the first time as pc sales improve as efforts to put more profits into tablet sess bearing frooud fruit. revenue could grow 10%. >> there is no guarantees in business, but i think we're benefiting from a couple of things they're. we've got great technology coming into the pc segment. we're seeing growth at the high end, lower prices bringing back the share from tablets. we're starting to participate in a wider range of devices. our data center business is benefiting from computing and connecting to the internet. >> intel providing a bit of

relief to all the bulls out there. the semi conductor index down 13% over the past three months is now trading in correction territory. >> that's an interesting thing in those results was the main part of that uptick for sales. they're on track for their 40 million chip sales, the tablet sales for the year. but still making massive losses in that segment. >> other chipmakers find ways to continue to that business. >> given the news around chips and the movement that we are seeing in the philadelphia semi conductor index, do you think now is a good buying opportunity? we're seeing names in the semi conductor index trade into double digits.

e-mail us, cnbc.com or sweet us, @cnbcwex. flat to relatively down is what i was going to say. but as you can see on the interday charm, in the last five or ten 34i7bs, the stoxx 600 has moved sharply lower. it's down 0.8%. we've had a flat open in europe and moved more significantly down in the last five or ten minutes. let's look at which individual markets is leading that sell-off. the ftse most significantly down 1.3%. some of those tax inversion targets at the bottom as we suggested moments ago. germany is off 0.6%. it lowered its gdp forecast yesterday and inflation numbers came out this morning in line flat for the month. france is down 0.6%. italy down roughly 1%. now, let's get to some more individual stocks. a big day for shuffles in

europe, a new ceo of balance four. qinetiq off 9%. bg group has posed hell ga lune to take the head position. let's look at bonds. an interesting move in the three-year, low for the first time since may 2013. that negative sentiment compressed yields across the board over the last week or so. the u.s. ten-year at 2.2%.

just ten days ago, we had the 2.2%. incredibly low yield. and the uk, 2.11%. it was at the start of october, around 2.4%. within europe, the uk is seen relatively as a safe haven. the u.s. dollar gave up a bit of its recent gains. yesterday and today, the u.s. dollar rebounding yet again. u.s. dollar/yen, 07.23. sri jegarajah is standing by in asia for us. good morning to you, wilfred. it was surprising that we saw that zew a day earlier and we saw a downgrade to german's economy. yet the markets over here managed to slug off those european growth concerns and put it down to buying at the lows

and some bargain hunting. that is why we have a fairley pro risk day today, all in all, is for the asian markets. we have some inflation numbers, very subdued. that speaks to continued stress in the chinese economy, continue very subdued domestic demand, overcapacity in the industrial product side, as well. yet the markets managed to shrug that off, too. perhaps they are dealing with the idea of further stimulus. we've seen some composure. the nikkei has managed to climb back above that 15k handle. seema, back to you now.

>> sri, thank you so much. coming up on "worldwide exchange," i think i might have got carried away. here why u2 frontman bono has issued an apology to his fans. no such apology from irishman michael noonan as the fading out of the double tax loophole. drivers will enjoy the price cut at the pump, but will you splash out more this holiday season? we will want to hear from you. that's coming up next.

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russia secured their trade relations with china with -- with cnbc. medvedev said it was not politically motivated. geoff is in moscow with more. >> yeah, you could take that at face value if you like or you can dig a little deeper, wilfred. and it's clear that russia itself increasingly isolated as a result of the several rounds of sanctions we've seen so far. not only politically, but of course, economically. that sums up damage here to the economy in the latest round of sanctions, which have limited

access to the capital markets have been particularly painful and will become increasingly painful if they remain in place with so many russian companies needing to service their foreign currency denominated debt. so this is a reason why now the russians are trying to fast track some of these deals with the chinese and, as you say, nearly 40 deals inked over the last few days here. so how is this being portrayed locally? well, some of the russian newspapers have actually talked about this being an arranged marriage, maybe something that neither partner wanted to rush into, but has happened as a result of the sanctions regime. let's just listen to what the prime minister told me about the motivation for these deals. >> translator: in short, these are not political considerations. it is our choice. what is it based on?

russia is both a european and an asian country. which is why we trade with europe and are willing to continue to do so. our trade with the european union reached about $420 billion last year. and we also trade with asia, where china is our largest partner. so once again, these are not political deals, but an informed choice. at the same time, we need to take note of everything that happens around russia. if some of our projects with europe, america and others are put on ice -- and i'm not talking about the reasons behind this -- we logically move those projects to other destinations. >> do you see the action that you're taking here alongside china as a way of trying to reduce the dollar's significance globally and to try to marginalize america's power economically in the world? >> translator: we have nothing against the dollar. and i don't think china has

anything against it, either. but we believe a modern currency system should be better balanced so when one of the currencies is sagging, this should be compensated by other global reserve currencies. in this sense, i'm only talking about my impressions which have not changed since 2008. i believe that we need six or seven reserve currencies to create the required level of financial stability and they should include the dollar, the euro, the pound, and possibly in the near future the yuan. we also considered the ruble, but this is a goal more a more distant future. we believe this would be a more financial structure. the dollar is the main reserve currency. it's a fact, no one can deny it. more over, as you know, we have substantial gold and firm currency reserves which we keep in securities. and the bulk of these securities

are dominated in dollars simply because the market of dollar denominated securities is the largest in the world. i'm not sure this is a good thing. not because we don't like the dollar, but because it makes uses very dependent on the u.s. economy. the u.s. economy has started growing again, which is good, but we don't have confidence that it won't enter another recession, which would be bad for everyone. this is the kind of dependance that we should avoid in the global economic system as i see it. and i believe that many rapidly growing economies share this view, such as the economies often identified by the abbreviation bric, namely brazil, russia, india, china and sosouth africa. but not only them, i think this will benefit the global economy. >> and just as an amendment to this story, wilfred, many germany used to be russia's main trading partner.

now china has taken that place. and i think as long as this sanction regime remain necessary place, the russians are increasingly forced to follow this pivot east policy, as they call it here. we'll only see european partners fall back and perhaps the russians and others who are prepared to step in and take their place increase the level of trade they do with this economy. back to you. >> geoff, thanks very much and a great interview there with the russian pm. we'll be playing more of that throughout the show. german inflations remain stable in september. the figure keeps up pressure on the ecb to add further stimulus to boost the ur ro row zone recovery. it comes amid an increasingly gloomy outlook. >> and let's recap some of the most recent data we've been getting out of germany.

industrial production came in lower. so did factory orders. german exports fell 5.8%. some analysts pegging instability in russia and sanctions imposed by europe on russia. the most recent read was that zew which slumped into negative territory. will this change angela merkel's strategy going forward? wilfred, that will be a question going forward. >> that is, of course, a big question. let's put it to our guests now. also with us, paul heinz. danielle, let me put it to you first, do you think this worsening damage will allow them to change their policy looking forward? >> well, i think the data overall is a surprise to the

downside. even though as a whole, recessions, just a sluggish gold which may feel like a quasi stagnation. it seems the main policymaker's comment being more on eventually support more investment. but whether this means actual public spending rather than just putting in place policies to support investors more generally, such as more public partnerships as an example. another possibility is to play with the competition. the budget could make it more, of course, friendly. so far, we haven't seen actually policy, but if the dollar continues to surprise to the downside, there may be some shift, though not very big in overall economic policies. >> thank you. germany not only, of course, in the focus because of their own economic data, but also across the eurozone, being blamed for

that weakness. are they right to continue with the terms and continue with the austerity rhetoric? >> austerity is correct. when it comes to tax hikes is dead wrong. for tax rates, cut expenditures is tough. >> and that should be done across the eurozone? >> i think so, yes. >> and it's back down to the individual governments or is germany -- it's down to the individual government because you don't have a federal government. >> absolutely. but i think a lot of them are refraining from that because of german politicians stopping them from breaking the stability and growth pattern. >> well, that pact has been broken for many years. and what europe needs is lower tax rates to stimulate growth, to stimulate work effort and they need less topic

expenditures to kick people back. >> and i guess the question is what is the likelihood of that actually taking place? >> i think the likelihood is increasing with this rather depressing numbers. though i would add you shouldn't look too much into the most recent month on month data. i don't think that we have a technical recession going on in germany now, but there is very sluggish growth. and some other numbers, like container imports, retail sales have not not that bad in germany and in europe in general, in the eurozone in general lately. so it's not all bad. but the problem now is that with interest rates at rock bottom, okay, what can be done? >> olivie, a new recession. so mario draghi, he has said it

himself. people are praying, please, don't qe, what can qe do? >> what is there left to be done? is this now out of the hands of mr. draghi and into the hands of the individual government? >> the argument here is similar to the one we're discussing on fiscal policy. to the extent that the data, not just the hard number, but the surprise to the downside. this would re-ignite the debate of whether the ecb has done enough. >> there is another one in december.

it will expand their balance sheets and in a sense will put in place policy, but it's not for sovereign debt, not for public sector but for private sector ones. the pressure to do more will come back. but in reality, i think when you think about public sector qe, the market itself is doing that. >> bond yields are at a record low of the eurozone, so there isn't much for yields to pull further. >> and given the weaker than expected data coming out of the eurozone, the euro continues to weaken against the u.s. dollar. how much farther can it go from here? >> we have bearish, medium term on the euro. the forex makes strategy weaker within the next 12 months or so from where we are today. but it's beneficial for the euro

area economy in many ways. that would boost exports to some degree. you also have some inflation into the region and finally, it helps overall rebalancing by making more expensive and exports cheaper. so in the countries that still are adjusting their current account, that will contribute to that adjustment. this is the main effect of the policies that we have seen so far. >> daniel, thank you very much, from morgan stanley. also thank you to tor hein. still to come on the show, rio tinto's iron ore output hits a record high, but will volatility rock the mining giant going forward? more on the first quarter update, coming next.

slier considering a $55 billion takeover of a pharma firm. >> but a deal is on the horizon for qualcomm. the u.s. chipmaker offers $2.5 billion to london rival csr, sending its shares soaring. extending losses with wti

hovering at $80 a barrel, the move starting a sell-off. prime minister medvedev says sanctions against russia have damaged international relations. he says moscow has not closed doors to anyone but a reset to the u.s. is not possible right now. and we're going to have a look at sterling as we await the uk jobless number. the data is just out. the unemployment rate has fallen to 6% for september. in august, it was 6.2%. it was forecast to be 6.1%. it has come in at 6%. so slightly better than expectations. sterling popping up on the back of that, it's at 1.5935. up 20 basis points for the day. this comes as inflation slowed in the uk to 1.2%. retail prices fell more than expected. does this raise the question of whether the bank of england will raise rates sooner than

expected? let's poll that question to our uk business editor, helia. >> what's happened today is another shift in the right direction. but it ironically makes things even more difficult. 6%, that's really close to the number we averaged out before the financial crisis is. unemployment in the uk was around 5.7%. remember that the uk and the u.s. have quite similar patterns in terms of employment in the recession we had mass unemployment up to 8% here, up to 10%. then you came down. we are now close to precrisis levels. so we're now topping 6%. remember, the mark carney forward guidance originally was about going below 7% unemployment. the problem is, inflation. as you said. and wage inflation has been very weak. we've got that problem in the states, as well. >> coming with the wage inflation number, in fact, average everyonings has come in at plus 0.9% in august.

it was forecast at plus 0.8%. it's not a huge ramt, but it is better than expected given that we had core cpi yesterday weaker than expected. >> yeah. earlier in the year we closed the gap. we had wage inflation finally, finally meeting the crest of what you pay for your fuel, what you pay for your toe mateos in the grocery shop. and that's the point is that in the uk, what do you want? you give a little, you get a little. and what the government would tell you is that their plan has been working because essentially it's more important to have people in employment on very suppressed wages than to have unemployment. the problem for the bank of england, of course, is how do you justify keeping interest rates at this emergency level low when you have this very, very high employment rate and getting close to the kind of full employment rate that we saw

before the precrisis. so you've got that conflicting data. so that's the difficulty. low inflation so no inflationary pressure in terms of cpi, but you have falling unemployment. and you've got great grades, as well. >> lowest unemployment rate since 2008. that came in higher than expected. you have to wonder if that does change the situation in terms of whether the bank of england will raise rates, something that we'll be watching very closely. we are seeing sterling strengthen against the u.s. dollar, a very different situation yesterday when that slowing inflation number resulted in the sterling selling off. >> inflation was a shocker yesterday. it has to be said. it was quite a big data point that came in unexpected. >> absolutely. helia, thank you very much for joining us. let's move on from cable and have a look at european markets which are in the red today. they opened basically flat, and they did weaken about an hour into trade. the ftse 100 is the laggard.

down 1.1%. that's because some of the tax inversion deals have been falling shy of 333% so far today. germany is down 0.5%. france down a similar amount and italy down almost 0.75%. let's have a look at the stoxx 50, as well, for a broader indication of what's happening in europe. it's off 0.64%, continuing its downward trend for the month. >> now, intel beat its numbers. >> intel is the best performing stock in the dow this year, but could the chip giant continue to please investors? intel reported shares of 56 cents on revenue that jumped to 54.6 billion.

so ip on the bottom and the top. looking ahead, intel said to expect q4 revenue of 14.7 billion. accepting estimates. here is what the company's cfo said about the results. >> we had our first quarter ever of more than 100 million units of microprocessor shipped. and record ever revenue. and we were operating profit by 30%. so we saw a pretty strong quarter, a little better than we expected. >> drilling down into the business line, intel said its pc cline group saw revenue just to 9.2 billion. that is better than what analysts forecast. that has been the story for this year. pc sales bert than expected. the question is how long that continues. its data have saw revenue jump to 3.7 billion. in line with what the street predicted. intel making a big push into mobile. the company offering subsidies into companies that use technology.

josh lipton, cnbc, silicone valley. rio tinto has reported a 12% jump in iron ore output saying it was on track to meet 2014 targets despite volatility in iron ore price webs chief executive sam walsh said the company will continue to generate strong cash flow and return for investors. the company declined to comment on a recent takeover approach that is rejected from rival glennco exstrada. let's bring in john meyer and talk about rio tinto's better than expected numbers in terms of iron ore production. does this change sentiment around this stock which has been volatile as of late, a lot of that having to do with speculation over a deal with glencore? >> i think it improves sentiment. it's building on good numbers and i think they beat quite a lot of forecasts there. so you've got two things at

play. rio tinto commanding an ever greater share of the market. they are largely offsetting the price. that's pretty good for them. >> do you think that potential takeover for glencore signals that they at least believe iron ore prices have bottomed? >> i'm not sure it's about that. i think the iron ore business is clearly where the bulk of the business comes from. but glencore is very good at making numbers out of the commodities. surely they would like to do more and i'm sure they would be good at it. but rio has run that business very well. for glencore, it's about making more out of parts of rio tinto. i think that also will come back again. >> it's an odd one with glencore. i still think it's the old mold of seeing a trader. but if they buy a big miner, do they cease to become a trader? >> i think we can look at glencore as two businesses. they are primarily a trader.

they run that side of things really well and that's where they add value. but they're pretty good on the mining side, too. they empower the local executives, they enable these guys to push ahead with expansions. they're good with allocating capital. good discipline in there and i think the model has proven itself very well. >> john, what about valuation? it's currently trading at nine times forward earnings. is that a reason alone to own the stock? >> yes, it is. that's a low valuation. i think it reflects where we are within cycle. but the u.s. is going very well now. and i think we've got more stimulus packages to come. maybe some soft stimulus in china and definitely more liquidity to come out of the eurozone. >> definitely a very active space. thank you for your time, john meyer. moscow has proposed building a gas pine line between russia and japan. the move could strengthen ties between the two nations as russia faces a setback from

western economic sanctions. we have the story live from tokyo. >> according to diplomatic sources, the plan is to connect the two. electricity output is currently transferred to japan in liquified form. a gas pipeline would be 30% to 40% cheaper. this comes after russia continues to face crippling sanctions from the g-7 countries. >> japanese government officials acknowledge that by using the pipeline. russia is trying to win over japan and drive a wedge within the g-7 line. that could lead to a relaxing of the sanctions. if the plan goes forward, it would be the first pipeline that could span directly to foreign countries. there are speculations that the issue may be discussed on the

meetings scheduled between the two nations next month. however, it is a delicate issue for japan since it will be difficult to pursue the plan without approval from its ally, the u.s. this relationship with russias has worsened with the uk crisis. that's all from the nikkei. back to you. >> thank you very much. still cocome, we bring you more of that exclusive interview with dimitry medvedev. geoff asked the russian prime minister some tough questions, including whether russia's ultimate aim is to bring back the ussr. we leave you with his answer. >> translator: do we want to restore the soviet union? it is impossible to restore what is gone, obviously. i was born in the soviet union at about the same time as you, although we lived under different systems. we still listened to the same music, as we found out. but the world has changed since then and the soviet union no longer exists. we have the russian federation, based on a constitutional

adopted by our people. this constitution proclaims the same set of values, such as are accepted by the absolute majority of human kind, notably, the supremacy of human rights, democracy, the protection of private property, market based development and so on and so forth. i won't list them all because they are universal values. so nobody wants to go back. there is no returning to the past. >> the estonians can feel safe that you're not coming after their russians? >> regrettably for some countries, including small ones, this is simply a way of consolidating elite. we all remember how it works. the russians are coming so we mute unite and under this banner hold parliamentary elections. your customers, our financing.

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welcome back. last month, apple had two files that got downloaded to play

lists. here is what bono had to say. >> i had this beautiful idea. got carried away with ourselves. artists are prone to that kind of thing. a drop of megalomania, touch of begin rossty, a dash of self-promotion and deep fear that these songs that we poured our lives into the last few years might be heard. there's a lot of noise out there. >> a dash of self-promotion, very much tongue and cheek. i think on this particular example, fair play because i'm sure apple approached them, offered them a huge amount of money and that's up to apple how they deliver it to their customers, not youtube.

on this one example, i'll stick with bono. >> i'll stick with bono. in other news, heightened global fears continue to weigh on crude prices. 41 out of 43 stocks in the s&p energy sector are now down over 10% since oil hit highs of the year in june, so a big move in the energy space. meanwhile, u.s. retail sales in september due later, expected to show the first monthly decline in spending since january. could we see an uptick next month as customers feel the effect of cheaper energy prices, especially when it comes to price cuts at the pump? we want to hear from you. let us know how you're spending the cash you're saving at the pump. perhaps oil prices are making no difference at all to you. if you want to join the conversation, get in touch with us. worldwide@cnbc.com or @cnbcwex. >> this come ahead of the holiday shopping season, so a critical time. it will be interesting to see if

consumers take that lower gas price and use some of that money they're saving on other goods. >> particularly high in europe, but stickily in the u.s. it's been much lower. irish finance minister michael noonan has announced his budget for 2015 amid increasing pressure from u.s. regulators. this as u.s. firm abbvie says it will reconsider a deal for shire due to the tax clampdown. let's talk about that irish budget. from the headline, it looks quite positive, the first year in quite a few that there was no serious austerity measures. but i noticed that you thought it was a, quote, kick in the teeth for irish entrepreneurs. >> yes, there was a social charge increased taxes on the highest producers in ireland. the irish economy, and had this

is a tax situation you described slightly earlier, the irish economy is currently geared towards attracting foreign investment. obviously that's very, very important to us. remaining independent and being able to exercise tax competition is crucial. however, domestic tax policy is loaded in a way that punishes domestic entrepreneurship, the start upculture, sme and the self-employed. they are the biggest producers that they had in our domestic economy and the budget yesterday unfortunately didn't do anything for them and, in fact, these are the people that have been paying the bills and that have really, i think, been taking a big part of the brunt of the so-called austerity measures. i would have expected them to get a break yesterday. they didn't and that was a missed opportunity. >> and how will the crackdown impact ireland's economy?

they've been helping able to employment as well as business spending. >> these investors are hugely important to our economy. tax competition is essential for irish growth to be able to continue. and for the success story of ireland which has, you know, hit a bump along the road, but for the success story of ireland in the past 30 years to continue. the fact that our tax competitiveness is constantly under attack is something of grave concern. we were given guarantees in the second lisbon referendum that the eu would not interfere in our tax affairs, yet yesterday we had an eu commissioner congratulates himself and giving himself a pat on the back for the pressure the eu ex eithers. it's breaking their proposals around the lisbon treaty in ireland, celebrating the fact that this pressure has brought some result. i'll say this, there is going to

be a pattern type arrangement put in place, we will remain competitive and those foreign investors who are looking at ireland as a destination i'm quite sure will find uniformity from every political strand in ireland, that we will defend our tax competitiveness and ireland will remain a solid plate for them to invest. >> the u.s. secretary of state john kerry says the u.s. and russia have agreed to share some intelligence regarding the fight against islamic state militants following a meeting with his russian counterpart, survei lavrov in paris. but speak to go cnbc, dimitry medvedev says international relations have been damaged as a result of the sanctions. he will be traveling to brisbane for the g-20 meeting hosted by

australia. geoff joins us now from moscow with the latest. geoff. >> yeah. there are a lot of people unhappy with the russians, let's be quite frank about this. we've had two rounds of sanctions imposed. this g-20 story is just the latest ip carnation of what has been a long running issue this year, not only the incursions in ukraine, but the tragic downing of mh-17. vladimir putin is set to go to the g-20 meeting in november, but there are those in australia who would rather not see him there, given a number of australians died in that tragedy. tony abbott used this phrase. he said r he said he would give vladimir putin a shirt fronting, which would a number of people outside of australia what this actually meant. it seems it is a term for a tackle in australian rules

football. i had the opportunity, of course, to talk to the prime minister so i asked the prime minister what his response was to this quite undiplomatic language from tony abbott. let's listen. >> president putin will be going to the g-20 meeting. the prime minister of australia, who has used this peculiar term which we're all trying to understand. he says he is going to shirt front the president, apparently, which is a reference to a kind of tackle they do in australian rules football. i wonder if he's aware of the president's prowess on the judo mat. >> this is a question for the australian prime minister. i don't have the honor of being equated with him, but i knew, too, of his predecessors and had good relationships with them. if he likes to use sports terms, let him go ahead. mr. putin is quite adept at sports and they could have

forceful debates. that said, serious politicians should choose their words carefully. >> now, this is getting quite a lot of play in australia as you would imagine. when tony abbott first made the comments, there were those domestically who wondered why he was using this terminology. well, they've heard it now in moscow and they're not impressed. having said that, this is a serious issue. clearly we want to see some progress into the investigation of what caused the downing of mh-17 and if mr. putin's trip to the g-20 meeting can help us do that, then i guess he should go. wilfred, back to you. >> thanks very much, geoff. for more of geoff's exclusive interview with the russian prime minister including more on those comments on his australian counterpart ahead of the g-20 summit, head to cnbc.com. and we want to update you on the story, of course, on ebola. a second health care worker at

texas health presbyterian hospital in the u.s. who provided care for that first ebola patient has been diagnosed with the disease, has tested positive for ebola. we'll deep you up to date on the condition and the state of that health care worker throughout the show. now back to the ceo of networks. before we talk about europe and ireland, let's talk about russia after that interview from geoff. is the biggest fallout here not sanctions, not oil industry, but just the pr, what people think of russia in the global economy? >> i think it's more than that. congratulations to cnbc and to geoff for getting that interview. it was very revealing, i think. you know, the fact that you have this pr exercise that -- where

we hear about, you know, the respect to human rights and the integrity of the states and that the estonians have nothing to worry about neglects the fact that russia invaded ukraine. it violated the boarders of a sovereign state. there are ample evidence of russian artillery actively operating in ukraine to shoot down of the malaysian airlines airli airliner. it's a real shame. europe needs russia. i suspect we're going to have some dpifkt challenges and that we will see sanctions being faced off against this coming winter and i think gas will be used as a tool in that exercise.

it's happened, we need rush a ya. i agree with him that issues like isis will the most -- issues that need to be dealt with right now. >> you were saying you used to be an investors 234 russia. what needs to happen for you to get interested back in russia? >> hopefully russia will change. hopef hopefully it will start respecting tin tegty of ukraine's boarders. hopefully a solution can be found for the ukrainian situation. then we can get back on track. we want to quickly apologize to our asian viewers who missed the end of geoff's interview with the russian prime minister. also want to say thank you very much to declan for joining us. let's have a quick look at

european markets, what they're doing before we go to break. we're in the red across the board today. the ftse 100 is the laggard, down about 1.3%. germany is down about 0.9%. italy and france down both 1%. let's have a look at the u.s. market ahead of trades. u.s. futures point to go a negative open for the s&p and the dow joins down 4 points and 12 points respectively. the nasdaq expected to open fractionally up. >> wilfred, you were just talking about the markets. could the sell-off mean very good buying opportunities? we'll discuss with an expert. plus, crude oil prices trading at a four-year low. does that offer an opportunity? we'll discuss that, as well.

welcome toe "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. >> the u.s. clamped down on tax inversion hit takeover targets in london. shares in shire plummet after abbvie says it's reconsidering its $55 billion bid. but a deal is on the horizon for qualcomm.

a rebound in pc sales boosts intel. you're watching "worldwide exchange," bringing you business news from around the globe. and another big day for the markets, wilfred. we're seeing ierpan stocks trade lower right now, but we dot that better than expected jobs number out of the uk. >> interesting contrast yesterday, inflation weaker than expected. employment slightly better. but i think it's all really at the margin. as you say, i think the biggest things on the minds of mark carney and other central bank governs is this tight economy. >> and we have crude oil trading at a two-year low. that's weighing on investors

sentiment. >> and i wonder whether oil prices are pulling down lots of the big cap stocks, the energy stocks. will it give a boost down the line to retailers when consumers have a bit of a breather? >> absolutely. let's take a look at u.s. premarket trade. to the down side, indicating a lower open, the s&p 500 down about 3. the dow jones down about 18 points. nasdaq, the tech heavy index showing a little bit of green in premarket trade. still, we're going to keep an eye on the u.s. futures abdomen we have seen volatility over the past couple of weeks in the u.s. markets. now on to the ftse cnbc global 300, this is a good index of stocks around the world. right now, trading lower by around 15 points. down about 0.25% at the session lows. we'll keep an eye on that index. diving into the individual european markets, we were talking about the uk unemployment coming in at the lowest level since 2008 at 6%. that not really helping equities. trading down by around 85

points. coming ahead of this, we did get slowing inflation data yesterday, something investors are keeping their high on. germany, we've been highlighting the weaker than expected data that has been coming out of germany. industrial production, factory other side, that zew report and after that trade data. france, seeing red here, about 44 points. italy, another triple digit decline for italy, down about 200 points. so things not looking good in europe. data will be eyed as we go through this week, wilfred. >> absolutely. a significant amount of red here. of course, stirred from weak global sentiment. i want to focus here on the u.s. 30 year which has fallen below 3% for the first time in auto while. significant yield compression both over the short and the long end over the last week or so. the ten-year, 2.91%. germany, 0.811%. can it break the 0.8% barrier? it's been hovering below 1% for

a while, but it hasn't ticked below 0.8%. and the uk, relative trade within europe is a recommendively safer haven compared to continental europe. it was 2.4% at the beginning of october. it's 2.1%. let's check on forex. the u.s. dollar did, in fact, weaken a bit last week. it has started to strengthen again so far in the last two trading sessions. euro/dollar is at 1.2646 against the yen. u.s. doctoral yen is at 107.17. cable is at 1.590. sri is standing by in asia with the latest. >> wilfred, the markets over here are doing a pretty good job after shrugging off growth concerns coming out of europe, coming out of your neck of the woods and is down to the fact that many investors have been buying some of the beaten down cycles cyclesals.

that was in markets. in china, we saw inflation prints at the consumer level and the worst number in almost four years. that underscores yet again sharply the threat of deflation, the fact that domestic demand still remains very, very subdued. but if the proverbial good news is bad news, if you look at the market reaction here, investors do believe that low inflation is going to give the policies the room to maneuver and the scope to bring on board more stimulus, consolidate growth without raising price pressures. so that is how the market took it and that's why the shanghai composite and the hang seng are up. the nikkei snapping a five-day losing streak and retaking the 15k handle once again. that is how we look.

is this rally going to continue as we see more in the markets? we'll leave ow that note. and we want to get you an update on the ebola story. a second health care worker in the u.s. that provided care from that first ebola patient that came from liberia has been tested positive for the disease. the health care worker reported a fever tuesday and was immediately isolated on that day. we'll continue to keep you up to date on the state and condition of that health care worker. peter oppenheimer from goldman sachs, peter, we saw yet that germany cut its growth outlook for the year and for next year. when we get the q3 prints, will they fall into technical recession? >> well, it looks likely that there will be a negative print. and germany in particular has been very weak in the third

quarter, slightly to continue into the fourth quarter. having said that, we think the pace of recovery through next year is likely to be pretty similar to the expectations before this period of weakness. so we do think it will be slightly temporary. growth is going to be weak in germany, as elsewhere in europe, but probably not as weak as current prints. >> and off the back of that, though, it sounds like relatively bold, at least in the short-term. but you have to be overweight on european equities, both the three month and 12-month. >> a lot of this comes down to valuation. the prospects for growth is not good. it's probably not as good as people were expecting late last year, but probably not as bad as the markets are currently priced in. the valuations are back to fight low levels. you've got a high risk premium priced in, very high dividend

yields and we think dividends are now relatively safe. so in local currency returns, we've got reasonably high returns. but in dollar terms, because we think the dollar is going to continue to rise, europe comes out as being relatively unattractive. >> you know, you also wrote that weak earnings out of europe will be counter balanced by further easing from the central bank. is that -- someone takes issue with that and the says there's a very low chance of the central bank unveiling quantitative easing. >> yeah. we don't think that quantitative easing is on the cards anytime soon. we would look at a 30% probability over that over the next 12 months. but you are seeing financial conditions coming down partly because of the weak euro and, of course, we've got the tltros and other programs still to come through. so i think monetary policy is

relatively easing. there's a political logjam and very little prospect of the structural reforms that the markets have been hoping to see. >> to the u.s. markets, a lot of volatility over the past couple of weeks. how does an investor make money in this new area of volatility? >> we had low volatility for a long time. i think that has a lot to the with the growth concerns you're seeing at the moment. revenues were falling, growth was very weak, equity markets corrected and then they appeared to very low volatility with stable rising prices for a number of months. i think at the moment, global growth is weak, not going to be all that good, but probably not as bad as the market is pricing. if you look at global gdp growth for this year, most forecasts are forecasts around 3%.

that's what it was last year and the year before. global growth is weak, not terrible. interest rates are likely to stay low. >> and volatility, of course, in the equity markets must create nice pockets of value on a sector basis. if we look at the u.s., we've been asking our viewers this morning will weaker oil prices benefit the consumer, which sectors do you think you should be overweight? >> i think the weaker oil prices are an important cut across the board. consumption is continuing to come down. equity in most markets is generating a reasonable yield and can grow their dividends look extremely attractive.

that is another theme that i think is interesting, really, across all the major markets. >> as always, thank you very much. peter oppenheimer, chief global equity strategist at goldman sachs. and as we've been telling you all this morning, heightened global growth fears continue to weigh on crude prices, dealing a blow to u.s. energy listed stocks. 41 out of the 43 stocks are now down over 10% since oil hit a high above $107 on june 20th. >> meanwhile, we're expected to see the first decline in spend since january in the u.s. could we see this change especially due to the price cuts at the pump? we want to hear from you on this. let us know if you're spending your cash now that you're saving it at the pump. or perhaps weaker gas prices have no impact at all.

worldwide@cnbc.com, or @cnbcwex. seema, for us in london, using public transport, it doesn't really make a difference. >> it doesn't. do you have a car? >> i do have a car. it doesn't get used much. >> the tube is so efficient. you guys call it petrol here? >> petrol. >> all right. we call it gas. >> there's differences, i'm learning. >> intel's third quarter profits beat estimates as revenues rose nearly 8%. the company shipped nearly 800 million chips in the quarter for the first time. intel is upbeat about the fourth quarter predicting it could grow 10%. >> we're benefiting from a couple of things here. we have great technology coming into the pc segment. we're seeing growth at the high

end and we're seeing lower priced systems bringing back some share from tablets. .we're starting to participate in a wider range of devices. and then our data center business is benefiting from the growth of all these clients computing and connecting to the internet. >> and share hoild holders liked what they heard. intel rising about 2% in after hours trade. keep in mind the s&p semi conductor index has been trading in correction territory. int intel, somewhat of a bright spot in trade. qualcomm agreed to buy london chipmaker for $2.5 billion. the u.s. giant secured the deal to accept another rival. microchip. today, csr up significantly, 30% in london trade and qualcomm off fractionally in frankfurt. earlier, our colleagues on "squawk box" europe spoke to the ceo of csr first and asked why the company accepted qualcomm's

offer. >> qualcomm is one of the largest semi conductor companies in the semi conductor industry. ace mentioned earlier, they are very strong leaders in mobile phones and tablets. with their modems, with their application processes and a whole range of products around it. the revenue last year was close to $25 billion. culturally, if you look at qualcomm, they're an engineering company, driven by innovation. it's all about developing new products. you look at csr, very similar can you tell culture. we're pushing the boundary and all about creating new products. i would say culturally and extra technique imagely a strong fit, as well. coming up, geoff joins us

with more of his exclusive interview with russian prime minister medvedev. find out what he really thinks about president obama straight after the break. i love having a free 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, no foreign transaction fees means real savings. we can go to any country and spend money the way we would in the us. when i spend money on this card i can see brazil in my future. i use the explorer card to earn miles in order to go

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welcome back. u.s. energy stocks slip as crude

hits a two-year low. shares in uk pharma are sent sharply lower. and a second health care worker in the u.s. tests positive for the ebola virus. >> as mentioned, a second health care worker has tested positive for ebola in texas. the worker was among those caring for thomas duncan, the liberian man who died in a dallas hospital last week. the unidentity worker reported a fever tuesday and was immediately isolated, officials say. meanwhile, the nurse would became infected while looking after duncan says she's doing fine in isolation and is being well cared for at the hospital. russia is, quote, not closing any doors. but a reset in relations with the united states is not possible while international sanctions remain in place. that is the view of the russian

prime minister medvedev who has spoken exclusively with geoff in moscow. medvedev said the russian people do not want anything from president obama. geoff joins us now live from moscow. >> yeah, good morning or i should say good afternoon, wilfred. what's interesting is we have this meeting in paris where john kerry and foreign minutester lavrov were able to make progress on some areas, not least intelligence sharing when it comes to the middle east. but there is anger here in moscow over the way russia feels it's been treated by president obama. and at the heart of this issue, not only the sanctions, but president obama's recent appearance in the u.n. where he ran through a list of global threa threats. he started with ebola number one, put russia number two and isis number three. they really weren't very happy

about that here. so when i spoke to the prime minister of russia, i asked him, firstly, was there any opportunity for a reset in relations with sanctions in place? let's listen to what he said. >> no, of course not. it's absolutely impossible. let's be clear. we did not come up with these sanctions. our international partners did. as we say in russia, let got be their judge. we will overcome these sanctions. i have no doubt that after a while these sanctions will dissipate. there will be no more sanctions, but we can't deny the fact that they have damaged our relations. i understand the concern our partners may have regarding the international situation and the developments in europe and ukraine. although clearly ukraine is closer to us than anything else because we are almost one people. but when the foundations of international relations, which we have worked sore hard for are

being sacrificed to impose all sorts of restrictions just to show how cool we are, just to show that somebody can punish someone, well, in my opinion, it's absolutely destructive. and i would even go as far as saying a stupid position. it's sad to hear sprb say in an address to the u.n. that the threats facing humanity are the ebola virus, the russian federation and only then the islamic state. i don't want to dig phi it with a response. it's sad. it's like some kind of mental aberration. it's imperative to leave all of that behind and get back to normality. perhaps go back to square one and only then talk about our future relations. >> we are not closing any doors.

to do so, we must bring the situation back to normal. >> so the punch line, we are not closing any doors at this stage, but quite frankly, given the feelings towards the president in the united states at this point, difficult to see how any of those doors are going to open in the short-term when it comes to trying to improve relations between moscow and washington. back to you. in our news, bank of america picks up the baton for u.s. financial earnings. we hear from one ran list who says now might be the time for lenders to clean up its real estate woes. that's coming up next.

we just had news that uk challenger bank aldemore has abandon its ipo due to the recent deterioration of global equity markets. >> this is really interesting. given the recent market volatility, will that result in other companies delaying their ipo listings? i spoke to aaron levy, the ceo of box, the cloud storage firm. i asked him if he's been following the recent volatility and he said it's something we're paying attention to.

>> jimmy chu lowering their price rake earlier in the week. wti crude trading at a two-your low. we also want to take a look at the u.s. premarket trade, slightly lower on the day with the nasdaq bucking the trend. you can see the commodity boards, brent crude trading down by around 1% at $84 a barrel. nymex crude at $80 a barrel. retail sales in september due later today. able to show the first monthly decline since january. could we see an uptick next month? especially when it comes to filling up your tank. we've been asking our viewers whether you plan to spend the extra cash you're saving at the pump. john tweeted in and said money saved at the pump is peanuts compared to investment losses from the market sell-off. i'm not sure that is true for every consumer.

but anyway, we do want to hear from you on this. please get in touch, worldwide@cnbc.com. or via twitter @cnbcwex. let's have a look at u.s. futures before the market open. what are we expecting there? >> we are indicating a lower open the last time we checked with the nasdaq bucking the trend up just about 2 points in premarket trade. dow jones about eight points and premarket in s&p 500 indicating a lower open which by the way still trading below its 200-day moving average. still to come on the show, intel not only beats the street, but hosts its high ever. we'll get you the full story after this break.

welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. the u.s. champion on tax inversion hits takeover targets in london. shares in shire plummet after abbvie says it's reconsidering its $55 billion bid. intel posting better tan

expected earnings. and a second health care worker in texas tested positive for the ebola virus. if you're just tuning in, thanks for joining us on "worldwide exchange." the dow ended in the red after rising as much as 140 points earlier in the session. the vix trading above 20. we also saw a big movement in the dow transports index, which after getting into correction territory did rally up about 2%. small and midcap stocks remain in correction territory. let's dive into the individual european markets to see where we're seeing the action today. the ftse 100 very much in focus, down about 70 points after the uk reported its lowest unemployment rate since 2008.

remember, yet we got data on inflation, falling inflation across the uk. that in focus, as well. germany, given the weak data out of germany roently, industrial production factory orders, trade data, as well as inflation. we're looking at germany right now, trade down by around 66 points or about 0.7%. france down about 30 points and italy another triple digit decline, down 124 points for the italian market. now, if we look at the euro stoxx 50, right now we have moved lower, down about 23 points or 0.8%. keep in mind, though, down about 6.5% over the past three months. new concerned about europe and its economic recovery, definitely a focal point for investors. how do you make money in these markets? here is what some of our experts have been telling us this morning. >> on india, i know we're still

relatively bullish. this is an economy that is growing at well below trend rate. so if you take a bit of a long-term view, india still has a lot of value left. >> there are trading opportunities. over the long-term, i think you would have to look at who has basically the highest potential returns, highest potential for cash coming back to shareholders and, you know, that's probably, you know, a balance between looking at the bhp and rio and just changing your ratings over time. >> we are bearish, medium term on the euro.

more or less appreciation from where we are in the next 12 months. >> we have earnings come through. do you think we'll get enough positive coming through that the u.s. market with slug off these woes coming from europe? >> that's the question of the day, if better-than-expected earnings coming off the u.s. will offset the worries which the price of oil is a concern for investors. we did get a disappointing report for jpmorgan. our focus now shifts to ebay and some of the intel stocks. somewhat of a bright spot after the semi conductor index has been trading down, trading in correction territory. even speaking of intel, intel's third quarter profits rose 12% as revenues rose nearly 8%. the company pc sales improve an effort to put more processors and tablets is bearing fruit.

intel is upbeat about the fourth quarter, predicting revenue to grow 10%. >> there's no guarantees in business. but we have great technology coming into the system. we're starting to participate in a wider range of devices. our data center is benefiting from all this growth of connected to the internet 37. >> the company beat street expectations. let's briven in brook simpson, brett, thanks for joining us. better than expected reports on intel. a lot of that being driven by the pc division. how much can pcs help intel's profitability going forward? >> that's a great question. we've seen in the last 12 months an elevated corporate refresh in pcs. i think since microsoft demands ending support for windows xp, we've seen cios tell us that

they have looked at refreshing their pcs over the last month. that refresh cycle has brought about a recovery. and will the consumer start to rebalance? we've seen mixed results in consumer this year. >> and perhaps it is temporary. let's talk about smartphones and they're on course for 40 million a year. that department is still making big losses. but these are chip giants. how come it's taken so long to become profitable and the biggest growth driver in the industry? >> i think this is a big question for intel and, you

know, it's made big investments this year. 1.5% of sales has been allocated for -- revenues for that business. so essentially we think $750 million of incentives has been spent to drive this 40 million tablet number. i think the key question is without that incentive, what kind of volatile can we expect? we won't see a break even point or profits for some time in mobile. i think it's going to be -- to see how they turn around. when you look@mobile, dominated by samsung, by intel, samsung and apple. apple has their own chip. the chinese have very strong using media. so how intel breaks into those ecosystems will be key. >> the first move advantage really hurting them there. also in the news, csr shares up

on the breach. the u.s. giant secured the deal. the price previously was said to be too low. and qualcomm is coming in t end. >> yeah. i think going forward we're going to see accessories play a bigger part. people are being smartphones, but now it's things like beats head sets, and having the accessories will be important. the other area, i think, where you're going to see a lot of changes in the car so you talk about connected car putting cellular in the car is going to be important. it takes five years for a chipmaker to get qualified in some of these carmakers. qualcomm doesn't have a channel.

i think csr having an established presence in automotive will give them a real boost. brett, just taking a step back, how do you make sense of the recent volatility in the semi conductor index, down about 13% just over the past four weeks. >> that is a great question. i think the concerns we hear from investors around gdp cuts, there's a role, i think the strong dollar is unnerving some people. you've seen in headline markets like automotive, forbes come out and cause some concerns for the outlook for automotive, semi conductor. microchip also was concerning for a lot of players, a lot of investors, too. so i think there are signals that maybe we're in an elevated period for growth and because of

gdp sensitive, and the stocks have done well this year. i think investors want to, you happen, make profits and reduce their holdings. >> brett simpson, analyst, thanks for your time. let's take a look at the other top stories. as mentioned, a second health care worker has tested positive for ebola in texas. that according to the state health department. one health care worker in isolation says she's doing fine and is being well cared for at the hospital. russia is, quote, not closing any doors but a reset in relations with the united states is not possible while international sanctions remain in place.

that is the view of russian prime minister medvedev who has spoken exclusively to geoff in moscow. geoff is in moscow with the latest. >> let's give you some back story on this, wilfred. the chinese have been in town here and we've seen deals signed in the tens of billions of dollars. this is the chinese coming in, taking advantage of the sanctions regime as it exists and perhaps displacing both european and u.s. businesses that might have been in the running for some of those contracts. so there are unintended consequences here. it's a regime that the russian government is increasingly

frustrated by, because it is having an impact on the economy and they feel it's unjust and they feel obama, president obama has been the architect. let me just play you a little clip here of what the prime minister had to say to me on the sanctions and a reset with the united states. >> when the foundations of international relations, which we had worked so hard for, are being sacrificed to impose all sorts of restrictions just to show how cool we are, just to show that somebody can put someone, in my opinion, it's absolutely destructive. i would even go as far as saying a stupid position. >> yeah. and the language becomes more choice in other parts of the interview. there wag r was an appearance at the back end of last month where president obama talked about the major threats facing the world.

number one, ebola. number two, russia. number three, isis. the russians are still feeling pretty sore about the fact that the russian prime minister put them in that position. so the message here from a man who has largely been seen as a liberal, and more soft will i spoken on these matters than the president here, the message is a tough one to washington at this stage. no reset without removal. coming up on the show, has a fall in the price of oil, will that send equities lower? we're going to discuss coming up next on "worldwide exchange."

if you're wondering what sector has been hit harder, look no farther than the energy sector. 90% of stocks in the energy sector are down more than 10% since june. the s&p energy sector down 1%. in yesterday's session, down about 10.34% over the past

month. what's the reason? oil prices falling to a multi year locumed with weaker demand in china. take a look at chesapeake energy, down 40% since june 20th. that's when oil hit recent highs. and new field exploration down about 39%. transocean down about 36%. so some big moves in the energy space, wilfred. >> absolutely. as that high iea report said yet, it's what is of a perfect storm for oil prices as excess demand and supply able to shrug off geopolitical concerns. could we see an uptick next month? will retail get a much needed lift from the biggest spending power? we want to hear from you on this. let us know if you're spending the cash, saving at the pump or perhaps weak oil prices are

making no difference at all. slade tweeted in to say prices never really go down at the pump. prices are up 835% since 2008. there we go. if you want to join the conversation here on was, worldwide@cnbc.com or @cnbcwex. moving on, it's been through weeks since the u.s. treasury department announced new rules to track crackdown on u.s. tap tax inversion deals. the impact is being felt as one big merger could fall apart. morgan brennan is at cnbc hq with more. >> abbvie is now reconsidering its $54 billion takeover of uk rival slier. that's putting it on track to be the biggest deal. the company says its board will meeting next week. under the deal, abbvie would

move its headquarters. if the move falls apart, abbvie would have to pay about $1. 6/billion. in a statement, it's said the impact of the treasuries to the the impact of the financial benefits of the transaction. the two sides have been racing to complete the deal by the end of the year as scrutiny of tax inversions has picked up. some huge names could be hit. john paulson or paulson & company own aes nearly 5% shareholder of shire. if the deal is canceled, it will be the largest casualty from the government's crackdown. earlier this month, sterling

announced plans of a takeover of the, shares, of the environment. shire is down just under 25%. back to you. >> morgan, thank you very much. as we head to break, these are your top headlines. as we were telling you, u.s. energy stocks fell off as the price of crude oil hits a two-year allow. as we reconsider the bid for shire, sending shares of the uk pharma sharply lower. and a second health care worker in the u.s. tests positive for the ebola virus. synchrony financial partners with over two hundred thousand businesses, from fashion retailers to healthcare providers, from jewelers to sporting good stores, to help their customers get what they want and need.

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the if it is flths 1100 down 1%. shire is down 30%. germany is down 0.5% as is italy. continuing to be weighed down by general concerns over renewed growth. renewed concerns about a slowdown in the eurozone, wilfred, having an effect on u.s. markets over the past couple of weeks. right now, though, futures trading to the upside, implying a higher open. the dow up about 18 points in premarket trade. nasdaq up about 10 points and s&p 500 up about 1. interesting to see that movement in premarket trade. we were at one point expecting a lower open. also in focus, of course, commodities, wti crude, trading at a two-year low on renewed global growth concerns. now down about 24% just this year. that's one of the reasons we're seeing the energy sector underperform. now, let's give you a rundown of what to watch this trading day. september retail sales are out

at 8:30 a.m. eastern, forecast to drop by 0.1%. but rise 0.3% when you exclude autos. we get the latest fed based book reports. bank of america, blackrock, pnc financial will report results before the opening bell. earnings definitely taking center stage. now according to dow jones forecast, bank of america is due to report the loss of 9 cents a share down from a profit of 20 cents in the same period last year. revenue is seen declining to $21.3 billion. marty joins us now. three big banks reporting yesterday. what did you learn from them and what does that mean you're expecting from bank of america today? >> we are seeing some progress, albeit very slow on the revenue

side. we saw some efficiencies underlying, still being built. so management relative to the little bit of revenue growth we have has been productive. then we're seeing asset quality costs are going to stay and remain at historically low levels for the foreseeable future. so while not robust growth, we are seeing some major i can't knowal gains. and then we saw citigroup come in with some strategic action that we feel like are very productive. expenses took a bite out of jpmorgan profits. how much do you think legal settlements could dampen their earnings? well, there is the big settlement that they've already announced, which is what makes them expected to report a loss this quarter. we think they can earn in their general 30, 35 cents a quarter that they've been doing. and when we're looking at these

settlements, they're not as worried or anxious about the capital of future of franchise risk. so they're cleaning up and moving forward. so they're the kind of things we have to segment out and separate from the core earnings. but right now, they're not really given nearly as much pressure to these stocks as they did maybe a year or two ago. >> thank you, martsy mosby, director of bank and equity strategies at finding sparks. before we go, a reminder that the blackrock ceo larry fink will be on "squawk box" to discuss his company's results. that's today at 6:30 a.m. eastern.time. let's have a look at the u.s. futures before we go. we're expect ago slightly positive open today in trade. those numbers are coming for you now. european markets in the red so far. the stoxx 600 is down today in trade. it's down about 0.6%. nonetheless, u.s. futures expected -- >> but remember, we started higher in the u.s. and ended lower. so still remain toes be seen.

>> and that's all we've got time for today on "worldwide exchange." i'll wilfred frost. >> i'm seema mody. "squawk box" is next.

good morning and welcome to "squawk box." making news, a second health care worker in dallas who provided care for patient zero, ebola victim thomas eric duncan, now testing positive for the deadly disease. the oil squeeze, how the facili fallout in the slide of crude is rippling through the markets. the slide, oil, any idea whatever happens. and inside intel, provtsd as the chip giant grow and the stock moves higher, it is wednesday, october 15th. right in the middle between april 15th. i think it's six months since

the democrats favorite day as 2014, "squawk box" begins right now. good morning and welcome to "squawk box" here on cnbc. joe kernen doing the math on when tax day is going to be and where we are. joe kernen is here. i'm here. becky quick, she will be here. she's going to join us in about a half an hour. she has the newsmaker of the morning. she will be interviewing blackro blackrock's chairman and ceo larry fink. he's going to be discussing his company's latest results. plus, give us his take on the markets, the fed, the economy and geopolitics and much, much more. if there's one guy out there these days that you want to hear from auto on a day like today, it is mr. fink. >> in the meantime were going to get to markets. not a great way to wake up this morning. a second health care worker now in texas has tested positive for