it's monday, and a very warm welcome to "worldwide exchange." i'm alfred frost. >> i'm seema mody. the asian markets lead higher with the biggest gain since 2013. and shares in the advertising firm are sent higher, however the investors holding company slumps at the bottom of the stoxx 60. and philips tells cnbc that

the decision to split the company was a right one. >> we'll be able to maximize on the capital opportunity and in life solutions. so in a way, it's a journey and this is the right time to take the decision to separate philips into two gross companies. shares of adidas get a kick out of a report that they could be bought for $2.2 billion. >> you're watching "worldwide exchange" bringing you business news from around the globe. >> and welcome to the show. it seems like a crazy week of volatility last week. one of the big factors is that weaker german data we had two weeks ago, and yet germany, the dax, ended last week in the green. amazing. >> we had to take a step back

with the markets in correction territory. still down 10% from the recent highs despite the move to theup side last week. so still a lot of pain for the german markets. >> of course, and volatility across the board last week. the big question is what is going to happen in equity markets this week. >> absolutely. on that note, do you think jer man markets are oversold? do you expect a weekend rally? and tweet us your thoughts and cnbcwex. now despite all that volatility last week, friday was in fact a green day in your. and that might be why we have a little bit of a correction today. we are down 1.5%. let's have a look at the individual markets. well, first of all, the stoxx 50 are down more than 1%.

so the biggest stocks slightly correcting today. we'll look at the individual markets, the ftse 100 is up 1%. the dax was in the green last week despite the volatilitvolat greece ended the week 7% down despite a 7% correction on friday. so huge amounts of volatility during the week there. we'll have a look at some of the individual stocks. bollore down 8.5%. havas is up 5%. they have jumped after france launched an exchange offer for the advertising group. stephan is in paris with the full story. >> reporter: good morning, will. there's a 30% stake in havas and he would like to increase the stake to at least 50% on friday afternoon.

he made this offer, nine shares of bollore for five shares of havas. that's nearly a 20% premium from the last closing price. and it still fits into the continuity of the offer. the son of the ceo of havas is supporting the offer. the board will be consulted a bit later in november and will appoint an independent firm to look at this offer. what does it mean for the company? obviously, we are all looking at the dividend given that the mainshareholder and the chairman of the french media communication group, someone has speculated recently that such a deal would pave the way for a closer corporation if not a combination of the two companies. so far they have been rejected.

the speculation has been rejected by the dividend, but this is all what it is about. for the time, the market reaction is not really surprising with havas trading sharply higher. the dividend is almost flat for the time being. >> merci, stephan. a group of investors is looking to purchase adidas for $2.2 billion according to a report in the wall street journal. they are up 2%. and lufthansa's walkout has caused 1.5 flights to be canceled. and if we are bearish, 2.4, bullish, 2.6. we have seen compression and settled near 2.2% on the u.s.

ten-year, but we have come back from the 1.8 we touched on wednesday. in the major markets the same is true, i.e. yield compression in general but we have just come back off the low of yields, the highs in bond prices we touched on wednesday. germany at 1.83. the u.k. at 2.16. one moving the opposite direction is greece settling below 8% having gone below 9% on wednesday and thursday of last week. let's look at the u.s. dollar just gaining a bit of strength on friday following the decent cop summer sentiment report. today's generally flat across most of the pairings. interestingly, it is bouncing back against the yen. the last couple of weeks have seen the yen take strength following a six-year low against the u.s. dollar at the start of the month. what does that mean for the nikkei? we'll get and update on the asian markets more broadly. sri is standing by in singapore. good morning, sri.

>> reporter: good morning, wilfred. absolutely blistering risk on rally in the asian markets saying up 4% after the sentiment. 6% gain at the close, so that makes it the best one-day gain since june 2013. a big question is whether we're going to see these gapes being sustained. tomorrow will be an absolutely critical day for the china quarter gdp, retail sales and fixed asset investments. therein lies the risk. if we see down numbers with q3 gdp and consistent below 7% handle, that's going to be very bad news for risk assets. on a more positive note, jakarta composite is looking good. the president who was up august rated today in indonesia is liked, but the big challenge for him is he does not have a

majority in parliament. that's going to be a big challenge for his pro-reform agenda and gathering the political support he needs. wi wilfred, seema, back to you. electrolux shares their report being up 10 this morning. sap se is down 4.63%. and metro is looking to be up 1.71%. philips' ceo spoke to cnbc earlier to say the decision to split the unit was made at the right time, but he cautioned over the slowdown in russia and china. >> both china and russia have significantly slowed down. and this is suppressing the

growth they originally had in the gross markets. i think this is a reality for the near term that they should not anticipate immediately that it will recover. i am more positive about china, even though the gdp growth there is now hoovering near 6% to 7%. we believe that fundamentally the market will require a lot of health care, a lot of liking solutions. and once the ill filtration has been taken care of, i think that market will start showing a better result for philips, maybe next year already. russia will take a bit longer. i really hope there will be diplomatic solutions to the tension. it's a pity that it's now escalating. >> so can earnings provide a relief to european markets? we'll bring in kerry craig, we have seen a massive move in european stocks the last couple of weeks.

france, italy, spain, down 10% from the recent highs. earnings have kicked off, is that in response to the market? >> last week we saw fears driving the markets and not the fundamentals. with the correction now taking place, they will start hosting the fundamentals and earnings will be a good driver of the market, not also in europe but also the u.s. unfortunately, the europe outlook is not as good as last quarter, but as we see the euro fall and see this feed into earnings, the earnings will pick up this quarter and into next quarter to provide a tail wind into the future, especially we valuations on now. i won't write europe off just yet. >> when we look at the volatility in the markets the last couple of weeks, how much has the slow down been in germany. in particular, is it a concern among investors globally there's

nothing that monetary policy can do to stem the decline if it continues? >> i think that was the case. it was at the start of the year the ecb saying we can go out with monetary policy but can't solve all the problems in the eurozone. we need help from the government, the change to structural reforms. and the market was just focused on the ecb. now it's believed that mario draghi realized that you need these to be address ed and that's why you are seeing the correction. we are at a strong point for the economics but also politics. >> wow were saying you are not writing off europe just yet, so if that's the case which sectors do you like and which can benefit from the weaker euro? >> well, 45% of the european earnings come from outside the euro zone. so anything that is an exporter, you may want to veer away from companies that only export to china. maybe something with a broader european exposure, broader global exposure. the u.s. economy is very strong.

coming into the end of the year, you could see that strong pessimism about the eurozone fade away as you see the asset quality review completed. stress on banks will go away. and also given that they are strong dividend payers, the yield may go up to some of the financial stocks. so as that credit grows, maybe more domestic focused companies, maybe something all about the consumer consumption. >> and you do favor the yield stocks, so how do you differentiate from a safe yield in equity to a growth trap? >> you have to focus on the quality, the us is tapability of the dividend you're looking for and what is a low income environment. just this last week, expectations are going to raise the policy rates down a bit. and investors still need income. that's why peripheral debt will still perform and the higher dividends will still perform in the sectors so far this year. >> kerry, thank you so much.

that's kerry craig, market strategist at jpmorgan asset management. and coming up on the show, we have a lot going on in terms of market volatility. and if that will impact european markets, that will be the focus for us. we're also going to be talking to leading entrepreneurs which land in london. we'll speak to the ceo of why the bitcoin exchange is making a big push into europe. and as microsoft gears up to join the smartwatch race, we'll speak to the ceo in an exclusive interview. and also, gambling on privacy. we talk to the author of a new book that investigates how las vegas casinos are using your personal data to grow business. your customers, our financing.

your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us.

a single ember that escapes from a wildfire can travel more than a mile. that single ember can ignite and destroy your home or even your community you can't control where that ember will land only what happens when it does get fire adapted now at fireadapted.org all right. leading tech stocks include digital wallet maker coinbase saying its nearing a launch in the u.k. we'll bring in brian armstrong, co-founder of coinbase and 35 on the disrupter list. brian, thank you for joining us. >> thank you for having me. >> tell us, why are you expanding in europe right now? >> this enables for the first

time customers in the countries to easily buy and sell bitcoin by connecting their bank account. what happened in the u.s. when we did this is not only did the adoption of bitcoin grow dramatically but it enabled merchants who accepted the bitcoin as well because the basic consumer was there. for the first time, this is available in europe and we believe this will follow suit. >> what do you say to the skeptics of those saying bitcoin is being used for money laundering and those trying to transfer drug money? >> i think it's been pretty clear in the last year we have the ceo of dell computers and overstock.com, expedia, square, the list keeps going. we have announced the deal with paypal and it's getting harder and harder to make the argument as more merchants come aboard. >> stepping back and looking at the u.s. dollar seen as a safe haven currency across the world, what are the characteristics to give the currency a safehaven status people trust? >> i'm not sure if it's historical reasons or anything

like that, but bitcoin has a lot of better properties in a way. it is not just a group of countries but a currency that is around the whole world. people are trusting the laws behind it, they are not trusting the laws of a certain country or group of people. and that's an empowering deal for some people. >> who is the lender of last resort in that aspect? >> there isn't one. anybody can go view the bitcoin source code. it's all open source and peer viewed by thousands of people all over the world. so that's what people are trusting in, that they can have it distributed open payment system for the whole world that nobody can manipulate without their permission. >> let's talk more generally about epay and electronic payment bank. of course, apple is launching apple pay based on existing credit card infrastructure. so did apple miss the trick there? >> not at all. there are a lot of interesting things you would think of for users to interact with it, but bitcoin is actually innovating

more in the payment rails underneath. it's competing more with visa and mastercard and western union, people like that. but there already all types of products on top of that for merchants as well to integrate bitcoin. if we look for it in a few years, apple will be in that group as well. >> i'm concerned about the consumers using bitcoin as we saw massive volatility in it over the last year, how are you building on the trust issues people have? just look at twitter trying to bring it in as well, are you doing anything specific around there? >> yes, the volatility of bitcoin has gone down every year for the last three years. still in the early stages but it's an exciting trend. for example, the pmerchants are accepting bitcoin payments. they are expecting those priced in their local currency and we instandpointly exchange it out to the that. so they never have to be exposed to the price volatility.

and it also points to why developers and software engineers are excited about bitcoin because they can build on top of the platform in a way we have not seen before. and the adoption of people using api or publishing apps of bitcoin has been exciting over the last year. >> huge fluctuations in the price of bitcoin when it broke $1,000 last year. since then the price has traded near $350. do you think it will ever reach that level again? the $1,000 level? >> we have been through three bubble periods so far in bitcoin. after each one comes down, it's been at a plateau. there was only $5 million a day being transacted in bitcoin. if you look today, there's $50 to $75 million a day being transmitted in bitcoin and the price is up to 400. so there's going to be a lot more volatility to come in and upward channel, but these are the early days of bitcoin.

it's like being in the internet around 1998, people weren't quite sure what to make of it with a lot of innovation happening. >> brian, how are your conversations going, your conversations going with government? it seems like that the governments are wanting total control of their currency banks, so they must hate the industry. >> not at all. they have been very positive. in the u.s., for example, they released guidance on how bitcoin will be regulated and we registered as a money services business. here in the u.k., we've had really positive conversations with hmt and sca, they are positive about bitcoin and you'll see that trend continue. >> all right. we'll leave it there, brian armstrong, co-founder and ceo of coinbank. thank you for your time. i'll be attending the tech crunch event later today speaking to aol's ceo tim armstrong. if you have questions for the

aol ceo, tweet them to me. and apple is launching the new mobile payment system. apple pay is available through a software updated to ios 8. he tells cnbc the service is secure and apple will not track or collect information about what people buy. taking a look at shares of apple up fractionally by 10% over the past three months. you can see josh lipton's interview today on "squawk box" at 7:30 a.m. eastern. now microsoft wants in on the smartwatch game. forbes reports the company plans to launch its own device within weeks. the smartwatch will passively track a user's heart rate with a battery life exceeding two days. forbes says the watch could be in stores for the time of the holiday shopping season. microsoft down fractionally in frankfurt up 4% over the last three months. cnbc's john ford has an exclusive interview with microsoft's sea satya nadella

that you can see on "squawk box" at 6:00 a.m. and ibm is moving up their earnings report to 7:00 a.m. they originally expected to report their earnings after the close today. they have a major big announcement to go along with this semiconductor unit. and they will be paid $1.5 billion to take the units off its hands. ibm up 1% in frankfurt and it will be a big mover today. >> indeed. now moving on, paris and berlin are reportedly working on a secret deal to see germany sign off on france's budget in return for a written agreement on a detailed rumor on cutting spending and reforms. still with us is kerry craig, market strategist at jpmorgan.

is the scale of the reforms that they still have to pass just massive? >> it is. they have a lot of work to do to get to the place where the economy comes back to be sustainable and will generate good economic growth in the future. when you think about the size of the french economy in terms of the yeuro done, that's going to weigh on the outlook in the same as what germany is focused on at the moment. that is looking at the secret talks between france and germany. it highlights about talking heads, but slow progress is being made and that progress needs to be speeded up faster for investors to have faith that the eurozone is not about the faint of heart, it is not all about mr. draghi and his companies are working to a reform. italy is a great example. in principle, spain is making

great strides. the governments know if they can push the reforms through and france is politically different because they have quite restrictive government there at the moment, that when they do come through, they will see the support of markets. just the penalties for not leaving these types at the moment are too weak. why the european commission is not doing much to help makes the debt bigger and is no proactive. so this is encouraging for markets. >> indeed these types of reforms meet short-term pain. so it's surely sensible for germany to relax its views on austerity and relax its views on the importance of civility and allow this to happen for a couple years. >> most definitely. you see that while germany was the strongest economy, it could have a hard line to say everything else needs to fall in line in terms of fiscal responsibility. as germany gets weaker dragged down by the internal partners like italy and france, it realizes it is not going to stand alone but it needs a strong eurozone as much as

anybody else. that's why you are seeing the leniency come through. however, they will see minimal changes. germany will still want them to have a very strong plan for this growth and have something that is measured and can be tested into the future. so they are meeting there with the goalpost shifting further and further out. >> how are you factoring the infact in russia and does that impact germany's economy? >> i think the economic impact of what's happening in russia and ukraine is smaller than the markets face. it's having a very negative impact on sentiment but not necessarily on the economic principles. the trade between the two countries is very small and all about what people think is going to happen in terms of what is going to happen to the natural gas supply. if you did see a section on gas, that's when you will see the strong economic impacts. unless it happens, you don't think of it as equity markets. at the same time you're having negotiations between ukraine and russia on gas prices and that will start to fade away. >> kerry, brilliant, thank you

so much for your time. kerry creag, market strategist at jpmorgan asset management. still to come, tesco batons down the hatches as rumors swirl of up appropriate behavior by staff. we'll take a closer look, next.

a single ember that escapes from a wildfire can travel more than a mile.

that single ember can ignite and destroy your home or even your community you can't control where that ember will land only what happens when it does get fire adapted now at fireadapted.org

you're watching "worldwide exchange" bringing you business news from around the globe. >> the european markets help a global rebound as gobl talks steal the spotlight after leading asia higher with the biggest gain since 2013. and bollore launches a bid to take over havas. and philips is hit by legal costs with a slowdown in china and russia. but the ceo says the decision to split the company was the right one. >> you'll be able to capitalize on the massive opportunity in both health tech and in lighting solutions. so in a way, it's part of a journey and this is the right time to take the decision to separate philips into two gross companies. and adidas shares like a group of investors saying they

could be taken over for $2.2 billion. and a look at the european markets this monday morning, we're looking at red across the screen. the biggest loser right now is the german market with the xetra dax down .80% after germany snuck out a gape last week despite turbulence in the overall markets. germany saw a fractional gain last week but trading in correction territory down 10% from its recent highs. the ftse 100 is down .40%. france is showing a little bit of red down .75%. italy is down .50%. europe stoxx 50 are down to 2,936. so investors still seem to be on edge given market turbulence and also for renewed global growth concerns. as we look at bonds in the story for october, it's one of yield compression. but we have just come back off

the lows we saw on wednesday and thursday last week, nonetheless the ten-year treasury is at 2.2%. lower than where it was trading in september ranging near 2.4% to 2.6%. the german ten-year gilt is at 2.17%. italy, 2.5%. we'll look at the u.s. dollar which has given up ground over the last two weeks has a bit of strength today. particularly against the yen which has seen the nikkei trade up. euro is flat. 1.2765. and the aussie dollar is bouncing back a little bit. shares of tesco are trading higher after some of the world's private equity groups say they are planning to make bids for the asian business. this and other reports suggest that the internal investigation found evidence of inappropriate

behavior by staff. we are joined in the studio now by halle with more. >> for tesco it's a bit of brief news for the company. where growth is delaying results coming down from thursday, and the fear has been that not only do they say for the trading period in the first half of this year, we've got to restate profits. but actually this issue with pushing around profits and kind of magicing them up is going to mean looking back at accounts beyond this year and looking back to last year's account. and what we understand is that it's unlikely to happen. it will be limited to the period in question, i.e. half year this year. that doesn't change the fact that the profits being restated will be 50% less than the profits as they were in 2013. and it's grim news for tesco and the new chief executive dave lewis. because once he kitchen sinks

the cultural issue, remember we're talking about deep problems with eight people suspended from tesco's board for inappropriate behavior. people under pressure to deliver, so changing numbers around, once he gets rid of that issue and deals with that, he has the wider problem of how do you make tesco sell to consumers? where does it fit? in the run-up to christmas trading, how do you compete? i don't think we have seen an answer quite yet. >> interim results are due on october 23rd. what is the likelihood of the management providing more clarity on the investigation? >> on the investigation in the probe, you'll have a result because obviously in order to come out and say, these are our recent accounts, they have to say what the limitation to that investigation is. remember that the fca will still be taking a wider look after this. >> all right. stick with us, you can get by without a little help from your

friends is the message from the outgoing president jose barioso. speaking on the friendship in london, he warns they should not isolate themselves from david cameron's increasingly tough stance on immigration. >> the british government has not presented a concrete proposal, there ared ys floating but i cannot comment on specific suggestions, but what i can tell you is that any kind of capital seems to be not conformity with the european rules. because for us it's very important, the principle of nondiscrimination and the freedom of movement is a very important principle in the internal market. >> and let's bring in back halle on the topic, i think this could work out well for the u.k. because there's a big difference from when david cameron first floated the negotiation terms two to three years ago. you can't ignore the fact that

the u.k. was taking up a huge popularity amount of sentiment and david cameron has to make the discussions and europe has to take note of that. >> you're right. remember that baroso is the outgoing president so he's doing a lot of political sounding. really immigration will be the key deciding factor come next year to the election. and we had the u.k. leader on the weekend saying if i'm going to be kingdom maker, which of course is everyone's nightmare for the main party, then i'm going to insist on a referendum. not in 2017 as david cameron was promised, but instead possibly as early as next year. so this is a huge issue for ordinary people in the u.k. who have seen their wage stagnate for the last couple of years despite the u.k. economy running forward. so in the reed, we may have had lyrics from the beatles, but in

fact it's going to be alien to a lot of people in the u.k. with the sound coming do unto europe at the moment. >> halle, thank you. prime minister david cameron said this election is the biggest regeneration and does look exciting. looking forward to it. moving on, shire shares are falling after the ceo says he'll step down. this is due to expected change laws in the u.s. and seven trend will be joined when he steps down in the first quarter of 2015. now the botched deal helped send the failure rate of mergers and acquisitions up higher. the total level of collapsed values has hit a high according to logic. t mobile also had a failed attempt to buy ilead.

>> british financial firms virgin money postponed their ipos last week on market conditions as well as french construction firm spy. gary mccartney is now joining us to talk more about m&a and the ipo market. the market clearly already responding to the receipt market volatility. you're seeing less deals, slashed evaluations and average returns from your desk at ubs, what are you seeing? >> the first half of the year there are conditions cop deucive to the strong secondary market, adding fun flows as well with the european engagement equities. generally we were seeing a credit with the equities moving. and that was conducive to the markets. now we're seeing a r re-trenchment. >> the ipos are peaking since

'07 and '08. by definition, do they always peak at the end of the market rally when evaluations are higher or does the fact that now they are falling off paint the end of the recent bull market? >> it's a cyclical product. and i guess timing is difficult to call. i see it more as a restocking of the ipo pipeline we have seen in the first half of this year and really since the middle of 2012 when the market reopened after the financial crisis we saw a heavy line of issuance to restock the pipeline. >> and do you think the market volatility decides to go public? when do we think the companies delaying their listings will list on the public exchanges? >> volatility i think is the key factor. we have seen the number grow from 12 to 26. and that makes it hard with investors much more focused on their corporate failures rather that adding new ideas. you need to see volatility subside before we look at the

transactions. >> i want to talk about two deals with you. >> if you look at what has happened, this is a broad-based sector with a lot of different ipos in different markets and regions actually strucking. i think it's the secondary market and volatility issue. >> but the weak economic backdrop here in europe is surely impacting sentiment and companies willingness to go public, no? >> you have to look at the selling of the companies. a lot of this of what we're seeing has been because of this avenue that hasn't been opened through the 2008 to 2012 period. they need to assess their options. you mentioned m&a earlier with refinance options and it is a question of responding to the market conditions and choosing the correct option for those

options. >> does this lead to more m&a? >> each time you look at what is possible and then there are a number of other opportunities with free financing, the m&a, we just need to react tos as they play out. >> alibaba's ipo hit the same time so what are your thoughts? >> i think this makes it very difficult to put any strong meaning behind the correlations. so it's difficult to say. >> but it allows us to make nice headlines at least. >> absolutely. gary mccartney at ubs, thank you for your time. the dallas health care worker being monitored for ebola on board a carnival cruise ship tested negative for the virus. the woman is a lab supervisor at the dallas hospital where thomas duncan died of the disease earlier this month. the pent gop says it will create a 30-person team of experts to quickly leap into action to

respond to new cases of ebola in the u.s. the move comes in the wake of two nurses from dallas being infected with the virus. the hospital texas health presbyterian took out a full page ad in two area newspapers on sunday apologizing for mistakes in handling the case and promising to remove its efforts. the japanese prime minister suffered a setback today as the two female cabinet members resign over the money scandal. here's the story live from to o tokyo. >> reporter: the redding nations come as a huge disappointment to the prime minister shindo abe as he shuffled his cabinet last week. this is one of five women committed to the post, but the resignations cast a cloud over his policy of female empowerment. one stepping down is yuko abuche and daughter of the former prime

minister. and the other is the justice minister. now currently abe's ruling coalition has a firm grip of power holding a majority of seats in parliament and the next generation election won't be held until 2016. but the opposition party sees the resignation as damaging abe's popularity. at a time when the prime minister needs all the support he can get facing tough decisions on up popular issues such as whether to prove a second sales tax hike and to restart the nuclear reactor. the two high profile ministers will only make the job harder. back to you. weekend clashes in hong kong saw pro-democracy protesters enter their fourth week. the government seems stuck in stalemate. hong kong's chief executive spoke earlier about the limited options. >> it's hard to control even how

people budgeted or scripted it. you still see them writing articles about in some cases being occupied and to talk to the people who recently helped you last night. but they cannot and the movement which is a major concern. still to come on the show, former furniture business and position takes the top post in indonesia. we cross jakarta for the latest on the inauguration. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster?

today there's a new way to work. and it's made with ibm.

welcome back. we just have results out of china mobile. and net income fell 9.7%. we were expecting a decline but that's the first three quarters of 2014. 82.6 billion. that's the number of earnings amid the rising competition. the stock has done pretty well since about may this year. that following it bottoming out after its results six months ago when it failed to increase the ratio despite falling earnings in a massive cash balance. the stock price did relatively well the last few months with the foreign earnings expected slightly bigger than expected. this comes as apple gets set

to report earnings after the bell today. analysts expect $1.30 a share which would be an 11% from a year ago. today marks the income to apple pay, the iphone-based paymentis with shares up 1.5% and up 20% year to date. staying with tech, leading entrepreneurs land in london for the tech crunch disruption conference. later today i'll speak with aol's ceo tim armstrong. if you have questions for the disruptive tech start-ups, send us your thoughts. josh had one tweeting, he has a question for armstrong, will we ever get to a point where online data is reasonably safe? great question. e-mail us at worldwide@cnbc.com or tweet us with our handle on the screen. the u.s. military aircraft what dropped weapons, ammunition and medical supplies to kurdish fighters battling isis in kobaine. the supplies were transported by

u.s. 130 aircraft. the supply drop is intended to help continued resistance against isis attempts to overtake the syrian border up to. cnbc spoke to former u.n. general kofi annan to find a solution to the crisis in syria. >> i don't think you can do it with military means alone. they need to find diplomatic ways of pressure iing all the supporters. and you need the key players in the country, you need iran, saudi arabia, you need qatar and egypt. but it has to be a sustained effort with a clear objective with how to approach the issue. a fragile coalition where members of the coalition have

different ideas and different xerp interpretation of what they have to do. >> would you be against the boots on the ground? >> where would you find them? everybody is saying we don't want to put boots on the ground. countries in the neighborhood have indicated that. i have not seen any of us who are volunteering to go in. the americans, the u.k., france and others have made it clear they are not going in. and none of the neighbors have offered to go in. so the idea is to train 5,000 soldiers to take the fight to isis. training takes time. after working with the military, i know how long it takes to prepare. >> you can catch the full cnbc

conversation with kofi annan on thursday at 23:00 cet. sweden is investigating a possible rugs intrusion in its waters after detecting suspect activity over the weekend. the swedish armed forces said they launched an intelligence operation involving a few hundred people in stockholm after receiving information from a credible source. russia denies reports with sub marines entering swedish waters while the swedish foreign minister tweeted that the defense command now confirms probable foreign military in the stockholm area. meanwhile, in indonesia he's becoming the first -- >> it is almost like a carnival atmosphere here surrounding the inauguration of the seventh president, better nope as takoe. millions of indonesians are

celebrating right now. he's a map of the people, the people's president. a son of the slums, one of them. a breath of fresh air compared to the steal politics that indonesia is so used to. but can he deliver is the question? expectations are high. there's a lot riding on his shoulders. and it's a tough job with the economy slowing, indonesia's trade is deteriorating and to brim bridge a foregrab at a high. he has to come together with a fuel subsidy. developed to infrastructure development, health care and also education, but the problem is he does not have the parliamentary support to push those reforms through there's a lot of other trading going on which will be reflected in the new parliament.

so people are watching that very closely. that is key to wlornlt he can push through these reforms in indonesia that they so desper e desperately need and deserve. cnbc, jakarta. >> joining us on the phone is eric, the economist from this company. the first leader not from the political or military elite, and jacoby relied on his personal popularity to get where he is, but managing parliament is a very different issue. how big of a toss does he have in his hands? >> well, basically what we are going now is to deal with the parliament and the main task he needs to do is to reform the budget. the sale we have is november

this year. >> as you say, the fuel subsidies are high on the agenda, is it likely he'll push that through? and is that what investors are focusing on, the fuel subsidies? >> the vice president said the price is high despite what they find in parliament. i just want to underline that the jobl seats are not the ones we are used to have. >> do you think this will stop him from achieving reform? >> sorry, i didn't hear that. >> we were just saying he struggled to build support from

the parliament. do you think that will stop end grating strategies better for indonesia? >> getting support from the parliament may been challenging, but, you know, yesterday and two days ago he would also be the leader. he offers support here -- i don't know of anything coming despite worries that the negative parliament is trying to block them from fuel prices. i think israel so far is gaining popularity support. with the statement from revel itself, that puts us back in the parliament. the wild moves in the stock

market last week sparked speculation that the fed might extend qe which was suggested by st. louis fed chair james buller, but in various interviews this week, he says the program has achieved its goal. he told cnbc's "squawk box" that on friday. >> we have made a lot of progress in the labor markets at 5.9% on the up employment rate. we were much higher at the outset of the program. the program was really designed that once we made financial progress on the up employment rate and labor markets more generally, that the program would end. if it looks like we're not going to get that kind of progress now and going forward, we would have to reconsider it. but i would be surprised if in the next two weeks we get enough data to make us change our mind on that. he also tells the financial times it may not make sense for the toad to keep lates low for a considerable time. it meets next weeks. it was a record-setting night in the national football

legal. payton mapping throwing his touchdown pass to move brett favre. manning adds another score later in the game to lead the broncos past the 49ers. corporate earnings get set for high gear in the u.s. markets. we'll preview it after this break on "worldwide exchange."

welcome to "worldwide exchange" this monday morning. i'm seema mody. >> i'm wilfred frost. these are your headlines from around the world. >> europe halts global relief while u.s. futures point to a higher open. and alibaba suggests a group of investors could buy reebok for $2.2 billion. and in the clear, a health care worker on a cruise ship tests negative for ebola just as the pentagon wraps up response to the disease. and big blue has some big news. ibm moves up its earnings report to before the u.s. market open. the reports say the company has struck a deal to shed its money

losing chip business. you're watching "worldwide exchange" bringing you business news from around the globe. and a wild week for the stock market last week. triple-digit moves to the up side and downside for the dow, but we saw that snap back in a rally on friday. but participants have been pointing out to both of us here, investors still seem to be on edge given the weak global economic fears. >> absolutely. as you say, the volatility is back with a vengeance last week, but what is interesting is how the week ended. look at germany, in particular, the dax finishing many the green despite germany being one of the sparks for the volatility to follow. yes, there was volatility but there was a bounce back to create opportunities. >> up on the week but down today, u.s. futures indicating a higher open. the dow jones industrial up 24

points in premarket trade. the nasdaq up 4. and the s&p 500 up just two points in pre-market trade. earnings are expected from 20% of the companies in the s&p 500. so corporate earnings will be in focus for investors. on that note, take a look at the ftse global cnbc 300 fractionally on the day, not a lot of movement but on session lows at the moment up just about five points. now we'll take a look at the european markets and where we are seeing the action. the ftse 100 and the xetra dax and france trading lower after what was a negative week for france, italy and spain. as wilfred was mentioning, germany was able to eke out this gain. all the markets are trading in correction territory down more than 10% from their recent highs. so that, of course, still a big focus for investors given that we have plenty of economic data out due this week as well. >> one interesting point to note, last week every single day

the whole of europe was one color, green or red. a little bit of differentiation today to create opportunities for investors to make specific calls. we'll look at bonds that have been on a yield compression trend from september to october. that trend still in evidence, but we have just come back from some of the really low yields that we touched on wednesday and thursday last week. the u.s. ten-year just below 2.2%. of course, it touched 1.8% on wednesday. germany is at 9.83 and has been below 9.75%. and now we'll point out the u.k., 2.16%. within europe, the u.k. has been seen as a relative safehaven trade when we've had rising global fears. so we've seen more yield compression than the rest. one of them that stands out is greece. it did touch above 9% with greece moving in the opposite direction of europe. this is much of a bigger risk

with greece concerned about the fundamental outlook. we'll look at the u.s. dollar giving up a little bit of the gapes it's had over the course of the year, but still they are a strong position for the u.s. dollar. today things are sort of generally flat. the euro/dollar at 1.2756. the u.s. dollar gaping a little bit of ground against the yen to help the nikkei come to 107.04. the aussie dollar is relatively flat at .8757. sri is standing by in singapore with more for us this morning. sri? >> well, thank you for that. blistering risk on the rally in the asian markets. really exemplified by the nikkei. almost a 600-point gain at the settlement to represent the first and best day since june of 2016. the question is, will it last? there's a fear that this is a little off the rational exuberance heading into tomorrow.

it will be a key day for third quarter gdp for china. the concern i have is if these numbers do underwellme underwhe, this could reignite the global growth concerns. china data tomorrow will be front and center. i want to talk about indonesia since it's been a focus for you. the markets in jakarta are coming off the highs of 5100. and this is probably exemplifies this. his coalition doesn't have a majority in parliament, but his reform agenda may stumble in parliament in terms of getting the political support he needs, perhaps that's why the markets are looking again at what the future holds, the challenges

that they face, especially with massive structural reforms in a country like indonesia. that's where we start at the moment. china gdp tomorrow and the data they lose is critical for our markets on a global basis. seema, back to you now. >> sri, thank you very much. it was a big week for global markets are renewed global concerns, bow louisiana fears and earnings weighing on investor minds. for a look at what to expect this week, we'll bring in jeffrey, a lot of volatility in the markets last week do. you think the volatility will continue, and if so, how does one make money? >> well, periods of low volatility have been followed by periods of higher volatility. we have been through a lowball environment for a long time, so i think we'll get the increase in volatility going forward. that said, i think there's a really good chance that you made a low last week at 637 new lows on wednesday. only 23 on friday. there were a lot of energy

stocks that are off 20, 30, 50% in some cases. pretty extreme correction going on underneath the surface of the 10% correction for the s&p. >> jeff, let's talk about some of the causes of this bond. cying here as i do in europe, for me, it was germany, the biggest spot for volatility as you do sitting in florida. what do you think the biggest cause is? >> i think a lot of the portfolio managers were more focused on what was happening in hong kong or ebola or isis than anything else. the thought was that turned into a tiananmen square to suck the rest of the world down into a vortex. >> it was not concerns about the european outlook at all? >> i think there are concerns about that but the u.s. has a positive forward momentum with capital not put to work yet. the still industrial bond market

yield dipped below 2% for the first time in quite some time. and we are seeing this seen as a safehaven when looking at the european market. is that the place to keep our accessories. the u.s. dollar was stretched more than i have seen in 44 years of this business. >> another one to cause a human amount is the oil price. do you know why the producers continue to produce back levels. >> i spend a lot of time on jfk. they are going to peppize isis and iran. i am sip call to believe things like that go on in the world and believe it's a near-term to

intermediate. >> that's one of the reasons we are seeing the sector underperform. you think there's actually now value in buying the dip but then i would -- >> you don't think there's further run to the down side? >> the person who told me the manipulation was going to take place, you can withstand oil under $80 a barrel for a while. but for an extended period under $80, saudi arabia can't execute its social agenda. >> i noticed you're a fan of the wolf street adage, sometimes knowing the right question is more important than the odds. it should be my job to know what the right question is for you, but when you look at the markets, what's the big question to ask? >> i think we can say we're in a secular bull market that likely has eight to ten years left in it. and you want to be long stocks.

>> so those that are sitting out on the rally, the s&p 500 gain last year above 30%, those who have been sitting on the sidelines waiting to get in, is this the right time to buy the dips. >> coming in this year, the odds say you would get a 5% pull-back in the first three months of the year, the historical ads also said you were due for 10% to 12% full back. >> if we talk to you one week from now, we continue to see the market move to the down side. you ha you have the rundown of what to watch this trading day. it's a big day. no economic data but look for reports on existing and new home sales and consumer prices. ibm leads the opening before the opening bell. and look for results from

haliburton and garnett and texas instruments. we'll look at today's top stories. actually, before the top stories, we'll have a flash coming out of e-bay. marc andressen resigns from the e-bay board of directors. >> he's been a big supporter of e-bay over the past weeks and months given the pressure for e b bay to split off from paypal. and now he's decided to resign from e bay sports of directors. we'll keep you up to daylight on that news. ibm is moving up their third quarter earnings to. ibm is selling the semiconductor unit to attract global maker

global foundries and will pay the company $1.5 billion to take the unit off its hands. a quick look at ibm, it is up in frankfurt by 1%. microsoft wants a piece of the gape. the company plans to launch its own device within weeks. the smartwatch will be able to passively track a user's heart rate with a battery life to exceed two days. forbes says the watch can be available in stores by the holiday season. microsoft and frankfurt trade is basically flat just off a quarter of a percent. cnbc's john ford has an exclusive interrue with the market's ceo. which you can see today on "squawk box" 6:00 a.m. eastern time. apple is reporting its system the same day as apple pay goes through. apple executive eddie qui tells cnbc that apple is not

collecting information on what people die. up fractionally on the day. keep in mind, it's one of the outperformers when you look at tech up 10% over the last three months. you can see apple's eddie cue there. is the central bank more likely to stay the course? we'll discuss that after the break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*?

you're watching "worldwide exchange." >> welcome back. we'll give you headlines, u.s. futures point to a higher open. ibm moves up its earnings to before the bell as calls suggest they could sell their chip business. and reebok could be running away with a sportswear giant. now u.s. military aircraft have dropped weapons, ammunition and medical supplies to kurdish fighters battling isis in kobaine. the supplies were provided by authorities in iraq and transported by the u.s. aircraft. the just says this is intended to enable continued resistance by isis to overtake the area. another top story, the dallas health care worker being monitored for ebola on board a

carnival cruise ship tested negative for the virus. the woman is a lab supervisor at the dallas hospital where thomas duncan died from the disease earlier this month. the pentagon will create a 30-person member team to quickly respond to action of new cases of ebola in the u.s. this comes in the wake of two nurses being infected with the virus. the hospital took out a full page in area newspapers on sunday apologizing for making mistakes in handling the cases and promising to improve its response method. now in other news, u.s. companies are a little nervous about what is happening across the pond. the latest survey from the national association for business economics finds 51% are worried the eurozone slowdown will have a significant or minor negative impact on their businesses. about 75% believe the fed will start raising rate miss the second quarter of next year. boston's fed president rosengren says they should end

the bond-buying back program this month unless something wild happens. this marks speculation the fed may extend qe suggested by the fed chief. rosengren said the program must change its goal. something he told cnbc on friday. >> we have made a lot of progress in the labor marks. we are at 5.9% unemployment rate. we were much higher at the outset of the program. the program was really designed that once we made substantial progress on the unemployment rate and labor markets more generally, that the program would end. if it looks like we're not going to get that kind of progress now and going forward, then we have to reconsider it. but i would be surprised if in the next two weeks we get enough data to make us change our mind on that. >> rosengren also says it may not make sense for the fed to make changes to keep rates low for a considerable amount of time when it meets next week. the professional strategist at raymond james is still with us. i have a little bit of an issue

with this, how can anyone suggest quantitative easing has done its job until many years down the road when the markets react? >> i think if they have not taken the radical steps that they took, there are a lot of people in the u.s. who think they shouldn't have bailed out the banks. we won't be in a depression. wells fargo would be gone and jpmorgan would be gone. the fed did a heroic job and the right thing. and they think we have reached a scapegoat where they can ease back on the quantitative easing. if the market starts to slow, i think this would work. >> if more is needed, that may suggest that the economy needs it forever to keep going. >> i don't see it that way. i have been on a couple plant tours with gm and ford, i think you'll get a capital education pendture cycle because they have not reinvested in the company in years and their equipment is wearing out. it is not just the automobile space, pretty much across the

u.s. the receipt survey of small to mid-sized businesses said they have increased their capital expenditure plans for the 12 months ahead. >> jeff, thank you for that. that is the chief investment strategist at raymond james. what happens in vegas doesn't always stay in vegas. that's what our next guest says. stick around, that's coming up next on "worldwide exchange." when change is in the air you see things in a whole new way.

it's in this spirit that ing u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement. to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪

it's the end of the currency as we know it. the book puts a spotlight on the casinos of las vegas and the methods they use to increase profits. adam tenna is here and the author of "what stays in vegas." thank you for joining us, adam. personal information these days is gathered by all sorts of companies from airlines, travel companies, retailers. what puts a casino a level ahead of them? is it the data they have access to more juicy? >> in a casino you do so much within the well of the casino that it does well for them. you'll know to the penny how much you gamble and what kinds

of food you hike in the restaurant, they will know your likes and entertainment, although everything up to the bedroom door, they can keep track of that over the course of years. >> i have been to vegas three times, so who has accesses to what i do there? >> the interesting thing to las vegas in cop thatntrast to many businesses is they do not sell their findings. they keep it as a valuable asset. many companies like if you're subscribing to a magazine or making purchases join line, they will sell or rent the data to other companies. so there are bits of information that do stay in vegas. >> at some point do ceasars and others have to face an ethical decision on how far to take it when it comes to mining personal data? >> that's right. because you can update information from data broker who is have all your contact information for basic stuff, but your consumer habits, they know your relimb, politics, sexual

preference, what is the line when you're a marketer, how much useful information could potentially make people feel uncomfortable. that's the line all businesses are looking at. >> given the research you found, how should one approach a trip to vegas next time around? >> is this going to benefit me? what do they do with the data? a bunch of the las vegas companies keep the data. but if you prefer not to share data, you can gamble anonymously, they won't know who you are and you leave anonymously. >> we'll learn about the type of data caesar's has access to is more advanced, but is that much better than other companies? >> they can be on the floor of the casino with thousands of slot machines. and they know an important player is down $700 in the last two hours, he typically gambles

$400. they may send over a hostess tonight with a steak dipper saying, it's great to see you. he thinks he's having a fantastic day in regards to being down. >> what is your biggest conclusion? >> the biggest conclusion is data is widespread across sectors of the economy. many things about the economy are good, but there are aspects unintended and worth looking at. sort of like the automobile invented years ago didn't have seat belts and other mechanisms, it is worthying about other mechanisms to protect us from the unintended consequences of personal data. >> adam, thank you for joining us. adam tanner there and author of "what stays in vegas." in other news, i'll be attending the tech crunch disrupt event later today to speak to the ceo of aol tim armstrong. if you have questions for him or the disruptive tech starters

we'll speak to, e-mail us at worldwide@cnbc.com, tweet us @cnbcwex. wilfred, any questions for the start-ups we'll be interviewing? >> i'm interesting to know how highly they rate cop tent as a valuable asset compared to the quality of the technical base they offer. so if you can ask them that. still to come, ibm unveils it earnings earlier than suggested. reports say they could be selling the chip business. we'll bring you the full story after the break. and futures indicate a higher open on wall street after what was a volatile week.

how can power consumption in china, impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 70% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. >> taking the spotlight, u.s. futures are pointing to a higher open. alibaba shares get a kick out of a group of investors to buy reebok from the sportswear giant for $2.2 billion. and the worker who tests negative on ebola just as the government ramps up its reaction

to the disease. and ibm has reportedly struck a deal to sell its blue chip business. you're watching "worldwide exchange" bringing you business news from around the globe. it's 5:30 in new york. if you are just tuning in, thank you for joining us this monday. hopefully you've got some rest over the weekend as last week was a volatile week for the stock markets and the global markets in general. we saw the vix trading above the futures. right now they are indicating a higher open, but that could change. it was a snap-back rally on friday, but as we discussed with market participants over the last hour and a half this morning, investors are still on edge over increasing signs of a global weak economy. on that note, we'll dive into the european markets with

earnings in europe kicking off this week. plus, reports indicate germany and france are working to getting france's 2015 budget pushed through. keep in mind, germany ended last week with a bit of green, but still trading in correction territory down 10% from receipt highs. right now we're looking at red across the screen with one outperformer of italy up 148 points. a triple-digit move to the upside for italy. on that note, we'll take a look at the euro stocks. across the eurozone, trading down 17 points. if you look at the performance over the past three months, that will tell the story down 7%. of course, weak economic data across the eurozone continues to weigh on investor sentiment. wilfred? thank you, seema. now u.s. earnings season gets into full swing with apple and ibm reporting today. then on tuesday we have three dow components out with results. mcdonald's, coca-cola and verizon. after the close we'll get the

first set of earnings from yahoo! post alibaba's ipo. on wednesday we hear from at&t, boeing, xerox and u.s. bank corps. and on thursday, amazon, microsoft and gm after hours. on friday, ford and bristol myers squibb. still with us, the chief market strategist from raymond james, some are doing well and others in line with expectations. a big week ahead still. the most important question is if they beat this, real good news for the markets? >> the s&p is somewhere near $119. it's about $136 next year. the negative report from three years is that earnings are not going to come up to snuff like they have. earnings have grown since 1989.

if you look at this into 2020, you come up with $183.36. you put a 15 1/2 multiple you have a $220 price tag. >> how worried are you that the u.s. dollar will weigh on the tech exposure to the international markets? >> i think there's going to be a capex cycle to come into play here. cap is a direct beneficiary of capex and the u.s. dollar has peaked to put a tail wind for u.s. international companies. >> what is the biggest headwind this season? if it's not the u.s. dollar? >> well, for this quarter it could be, yeah, for a single quarter it could be, but for long term i think there's too many powerful trends going forward in the u.s. i think the economy is going to pick up. >> you say a 2800 target for the s&p and you also said earlier we're at the start of eight to ten-year bull market. what gives you confidence to go that far ahead and convince markets? >> my friend who works at bank

of montreal studying that after ten years you usually average 16% when you emerge out of one of the negative environments. and he comes up with a 4200-plus target for the s&p 500 in 2024. and if you study the history of secular bull markets once they get going, they tend to last about 15 years. so i do think we've got eight to ten years left in this. >> and if rates went tough more sharply that expected, could that panic the thesis or be temporary? >> the last time you ended a bull market was in 1949. yield on the 30-year guy was 1.5%. over the next 15 years, it went up 1.5%. >> how much are technicals as we look at the s&p 500 despite the rebound on friday still trading well below its 200-day moving average. is that a concern for you as someone who is watching this

market very closely? >> it is not. we were looking for a 10% to 12% correction, we got a 10% correction and may get a little bit more. however, i think you put in the lows last week. >> jeff, thank you for joining us. he's the chief investment strategist at raymond james. we'll look at today's other top stories. ebola front and center. the dallas health care being monitored for ebola on board a carnival cruise ship has tested negative for the virus. the woman is asupervisor at the hospital where thomas duncan died earlier this month. a move comes in the wake of two nurses being infected with the virus in dallas. the presbyterian hospital took out a two-page ad apologizing for makes mistakes in handling the cases and promising to remove response methods.

elliott management has nominated seven canvas to try to get the discount retailer to sell itself to dollar general. dollar general's $9 billion takeover bid is clearly superior to the $8.5 billion offer from dollar tree. they missed the opportunity to create a bidding war and could have worked around anti-trust concerns rejecting the dollar general offer. family dollar, dollar general and dollar tree trading in the green so far today in frankfurt up between 1% and 2.5%. in other news, fannie mae, freddie mac and private mortgage lenders are close to a deal to ease restrictions on borrowers with poor credit in a bid to boost the housing recovery. the wall street journal says fannie and freddie are considering a program to allow lenders to offer mortgages with down payments of as little as 3%. the changes would also reportedly help banks protect themselves against the future claims of making bad wills. coming up, ibm says it has

major news that is forcing the company to move up its earnings by several hours. what is behind big blue's decision? we'll explore, after the break. your goals, our experience. your shoppers, our technology. your data, our insights. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. engage with us.

i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter.com/offer2. apple is reporting fourth

quarter earnings today. the iphone 6 according to the tech company is the fastest selling iphone in history. the question remains, how much will the smartphone provide? and lists expect earnings of $1.30 a share which would be an 11% jump from last year. today marks the kickoff to apple pay on the iphone pay system. shares are up 1.5% thanks to the nasdaq comeback. but over the past year, we have seen the stock gain 22%. one of the big outperformers in the tech index. >> absolutely. the big question is, how much longer can they protect their margin with superior pricing? the iphone 6 seems to be letting them do that thus far. another tech company in the news is ibm moving its third quarter earnings report after the close today to below the open at 7:00 a.m. eastern. a big lose with a major business announcement to go along with the results. kate rogers is joining us now from cnbc hq with more.

>> reporter: good morning. ibm is possibly moving up its earnings report because it struck a fairly significant deal. the wall street journal reports big blue will shed the semiconductor unit to make blue chips for ibm computers and other customers. this is $1.5 billion to take the company off its hands. the company has been in talks for a while but disagreed over price. the global founders will take over the ibm main chip 60 miles north of new york city and a smaller factory in vermont. lit also take on 5,000 i be, m employees. the company assigned a ten-year supply contract. ibm had reportedly sought to keep control over the design over its chip but wanted to shed the capital intensive manufacturing plants. the huge cost of upgrading equipment for each generation of chips has already forced others in the industry to quit leaving ibm with few partners to negotiate with. revenue from ibm's semiconductor

unit fell 18% in the second quarter. global founders emerged as the second biggest contract manufacturer after tsmc. the company is owned by abu dhabi's arm and expanded when it bought the semiconductor charter the following year. checking the ibm shares this morning, they are higher. back to you guys. sticking with tech news, microsoft in on the smartwatch game. forbes reports the company plans to launch its own device within weeks. the smartwatch will be able to track a user's heart rate with a battery life that exceeds two days. forbes says the watch could be in stores in time for the holiday shopping season. taking a look at shares of microsoft down fractionally in frankfurt. john ford did have an exclusive interview with microsoft's ceo which you can see today on "squawk box" at 6:00 a.m. eastern. snapchat ran its first ad

this weekend for hollywood. universal pictures made a short trailer for the upcoming movie " "ouja" that will open this weekend. they are expected to hit nearly 19 billion in the u.s. this year. here are the headlines so far this year. the u.s. futures point to a higher open following a four-week losing streak. ibm moves up its earnings and reports suggest it could sell the chips business. and reebok could be running away as the group of investors may purchase the sportswear giant. [coughing]

dave, i'm sorry to interrupt... i gotta take a sick day tomorrow. dads don't take sick days, dads take nyquil. the nighttime, sniffling, sneezing, coughing, aching, fever, best sleep with a cold, medicine. welcome back. this is what's happening in the

markets. the stoxx 600 is in the red today. there are no specific reasons for it to be down today other than friday was a strong day for the markets, so we are just coming off the gapes on friday. let's look at the individual markets. a bit of negativity. the german market is 9.9% in the red. why may that be? last week a huge amount of volatility stemming from negativity out of germany. yet germany ended last week slightly in the green. therefore this trading day on monday is just under .59%. interesting to point out, greece is slightly in positive territory up .77%. last week despite a 7% bounce on friday, it was down 7% net for the week. very, very volatile in the periphery of europe last week as well as across the board. but greece a little bit of respite today after a negative week last week. we'll look at the bonds. and the story over the last month since september has been one of yield compression. but that yield compression is

just easing off since the middle of last week. the u.s. ten-year is 2.2% touching 1.8% on wednesday and then went to 2%. it has just come back up since september when it was 2.6%. we have seen yield compression. ten-year bond is 9.84%. it did go lower at one point last week. and the ten-year gilt is .025. the look at the u.s. dollar has been on a tear for the year as a whole. but over the last couple of weeks, it has given up a little bit of that gain. the euro dollar is flat, but most interesting is the yen. the u.s. dollar has bounced back off a couple weeks against the yen at 107.13. it is up a quarter percent to allow the nikkei to rally 4% in

asian trade today. asian markets generally disrupt the nikkei leading the charge. how are u.s. futures looking? well, u.s. futures are higher this morning, this after the s&p 500 turned in its first four-week losing streak since august of 2011. we also saw the vix volatility index topping 30 for the first time in three years. so a lot of volatility in market turbulence last week. does that feed into this week? that will be the question right now. but the futures indicate a higher open with the dow jones industrial up 44 points in pre-market trade to the s&p 500 up about five. the nasdaq is up about 11 points. earnings will also take center stage. u.s. earnings season gets into full swing with apple and ibm reporting today. then on tuesday, we have three dow components out with results. mcdonald's, coca-cola and verizon. meanwhile, after the close we'll get a first set of earnings from yahoo! post alibaba's ipo and then focus on wednesday will be

on telecom with at&t reporting. boeing, xerox and u.s. bank corps will be reporting. thursday morning it is gm, amazon and microsoft after hours. and on friday, we round out the earning season or at least for this week with automaker ford and farmer giant bmy. so, how did you make money in these markets? here's what some of the experts have been telling us this morning. >> it's a broader european exposure, perhaps toward the u.s. with the economy is very strong. i think as we come into the end of the year, you may see some of the strong pessimism for the you ro require row zone. the financial sectors have given a strong dividend payer given the yield may give up the financial stocks. well, i can tell you what

most people say, we're more than halfway through the current setback. but i think we've got further to go. today we're seeing a bit of a bounce, we're talking about volatility markets with the market very volatile with a move in japan this morning. i think we're going for a bit of a bounce today but we'll have a further setback and that will be the buying opportunity that i would thinwould add more to equities. i think the most important thing you can say about the u.s. markets is that we're in a secular bull market that likely has eight to ten years left in it. and you want to be long stocks. now we're just getting flashes out of the ecb it has started its purchase of colored bonds. we don't know the full size of these purchases. nonetheless, those purchases have started. and let's have a look at what they are doing to currencies. >> interestingly, we're looking at the euro strengthening

against the dollar fractionally trading at $1.2767. interesting to see the requieur strength. this week we'll see reports on existing sales as well as consumer prices. ibm will bring earnings well before the opening bell in focus. and apple, chipotle and texas instruments. on that note, we'll bring in todd horwitz, author and founder of this business. in the likes of pepsi and bank of america last week, the markets still sold off do. you think the markets can provide a relief rally to markets this week? >> good morning, seema. good morning, wilfred. i think that the earnings we have seen here is earnings that the balance sheets look great, but the real growth part of the

earnings, the real growth line has not looked as good as it could. i think we're still banking on that free money from the fed. so all though the numbers look good, the real growth is not there. so i do think there could be a little bit of relief today, maybe tomorrow, but i believe this market is now going to be in full-blown correction mode and we're going to go substantially lower, not just the 10% correction, but i think further down than that. >> that's an interesting perspective. if it is not 10%, how much is it going to be? >> well, i think that we probably have gotten in the neighborhood of 15% to 30% by the time it's all said and done. now, it may not happen tomorrow, but i think over time we're starting to realize that we aren't seeing the true growth. when we look at the overall jobs numbers and look at that picture, there isn't any real growth although the numbers are higher and the jobs are not very good. then in the last part of the picture is that the global economy is in a lot of trouble and we're not going to be able to up fuse capital and keep

talking about how crude oil, the lower price in crude oil is like a tax cut, but we're paying more for services today than five years ago. and most of us are making less money. so it does not sound like a real pretty picture going into the fourth quarter here. >> todd, you're extremely bearish and expecting the markets to trade in bear market territory if i'm not mistaken chchlt sectors will weigh on the markets going forward? where should we see further weakness? >> i think you're seeing a lot of it first of all in the russel. ibm this morning, why did they move up? because they have bad news coming out and they want the market to digest it during the day and think about it overnight. i think apple, we know the good news, we know they have sold the record number of phones, but are they going to really beat earnings here? the balance sheeting will be corky because of the easing

monetary policy. are they going to create real growth and more jobs in i think the tech sector is going to be in trouble and i think we're going to see the energy sectors in trouble. so i think there's a lot of problem there. then retail is a very bad christmas season for the retails. >> i'm surprised you say that. we've got oil prices at record lows, that gives the consumer a bit more leeway to spend. interest rates still very low. and employment numbers have been pretty good over the course of the year as a whole. consumer sentiment coming on friday stronger than expected. why so negative on the retail stocks? >> well, you know, if you take a look at it, again, the lower oil prices really are not a function to help the average guy because the average guy is making less money. so you've still got to see highers for food and other services. if we look at the jobs created, they have been in the weaker sector of the minute mall wage jobs.

housing and lower interest rates have not benefited the average joe or the middle class or the people who support this economy because they cannot borrow money anyways. it doesn't matter if they make zero. the banks won't provide liquidity to the average guy to stimulate the economy. what we really need is the interest rate hike. we need to give higher rates and let the markets fall and let free money flow to everybody and not just to the upper 2% to 3% of the population. >> author and founder of average joe options.com, thank you for your time. don't forget to stay tuned, we have an exclusive interview with microsoft's ceo satya nadella coming up next on "squawk box." >> the stoxx 600 just in negative territory. and u.s. futures pointing to a positive open. so will this be the start of a happy green week? we'll see and be back tomorrow at the same time. but for now, all that is what we have time for.

i'm wilfred frost. >> i'm seema moodi. next up is "squawk box."

good morning and welcome to "squawk box." major turning point for more than a dozen people exposed to ebola victim thomas eric duncan. how a texas health care worker on a cruise ship tested negative for the deadly virus. ibm expected to make big news this morning. it's moving up the release of its quarterly results to 7:00 a.m. eastern time. and peyton manning is in the record books after a big night in denver. it is monday, october 20th, 2014. "squawk box" bins right now.

good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick along with joe kernan and andrew ross sore kso. we are looking the see if there are more signs of low economic weakness, ebola headlines or if earnings live up to their expectations. in the meantime, check out the u.s. futures this morning. at this point we see green arrows. dow futures up 50 points above fair value. s&p futures are up 6 points and the nasdaq is up 12 points. in europe the major averages a in the point look like they are trading weaker. the dax is down .80%. the cac is down by half a percent and the ftse is down .60%. earnings could be fueling volatility this week. 20% of the s&p 500 are due to report including apple, microsoft, boeing, coke and caterpillar just to name a few. also, ibm is