hello. a very warm welcome to "worldwide exchange." >> a muted open for the markets even as the nasdaq had its biggest gain of the year. >> high yield market is in a bubble. i think that sooner or later, it's going to -- i'm not telling you next week or next month. it doesn't mean i'm right. in fact, i'm losing money on it

right now. i think that is a no-brainer, also. >> yahoo! shares jump in frankfurt as the internet giant reports better than expected third quarter revenue. but if pressure is still on as the company's online ad business continues to lag. a different story for peugeot as sales slip in latin america, but the french automaker sees signs of progress at home. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. hi, everyone. i'm seema mody. boeing takes flight with third quarter earnings. phil lebeau joins us with a preview at 11:30 cet.

hong kong student protest ers hold more protests as talkes with hong kong officials fall through. we speak to an industry expert in the next hour. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> good morning, everyone. we were just talking about this between ourselves before the show. very interesting that the european markets responded positively to those rumors that the ecb might byte buy corporate bond. if they did, that would be massive news. the chances of happening would be so slim. i'm amazed that markets responded at all. >> that's not what we talked about, wilfred. we talked about football. we talked about bayerm munich's game. they won, right? >> we did talk about that.

a resounding win for the german team. >> we'll talk about the ecb again. you say there's a slim chance. maybe it's not all that slim. this is the fourth biggest market in terms of the bonds that the ecb could be targeting. the chains are not that slim because it's targeting an even bigger one. maybe as inflation forecasts are going to be downgraded, this is the only chance for the ecb to rescue the eurozone economy. >> a lot of excitement or hope that the ecb will unveil stronger measures. we spoke about apple and the stocks rose $100 a share yesterday. one of the robes we saw is nasdaq post a triple digit gien, the first tooip time since 2011. >> yahoo! has eked out a modest revenue gain in the third quarter, excludeing fees, revenues rose 1% beating

forecasts. it's the second increase in the past six quarters. profits jumped on the alibaba sales. yahoo! reported more than $200 million in mobile revenue. but the play ad sales fell again. on the conference call, marissa mayer defended the company against activist shareholders who contend yahoo! is wasting money on ill advised acquisitions. >> we have built a true, excellent team that is up to the task. that team, our board and i have and will continue to be careful stewards of shareholders money. we've achieved much more than em people realize. we have delivered significant shareholder value. >> let's have a look at how yahoo! shares are doing in training. keep in markets markets are up today. marissa mayer has bought herself some time.

how much time was she able to buy herself given that it was relentless pressure. >> and you look at top line results, sales of just 1% year over year, which questions the company's ability to grow sales now that alibaba has gone public. >> i suppose all the folks was on the alibaba number, and we'll see what they do with the cash they got from that moving forward. but interesting, the ad revenue did beat forecasts. that, of course, is a key area for longevity of earnings as opposed to the one of alibaba. at the moment, of course, people are pretty skeptical about it. >> absolutely. and we'll be putting that into focus today. yahoo! shares are up about 2% in after hours trade after we got the earnings results. >> we're roughly one hour into

the trading session. the stoxx europe 600 is modestly ticking higher. we've seen volatility early on in the trade. we're off the session highs and now eking off a gain of less than 0.1%. i guess the fall on from yesterday's impressive rally, we were up by more than 2% on the stoxx europe 600. the dow has fizzled out a little bit. not a convincing follow-up to what we saw yesterday and what we saw in the u.s. and asian trading session. maybe there is a little bit of caution as we head into the banking stress tests results coming up on sunday. we get boe minutes in about 25 minutes time. let's have a look at the euro stoxx 50 which is in the red by about 5 points or so. the european markets one by one, we have the ftse underperforming today. this is in part because british american tobacco saw a decline in sales and this is putting some pressure on the index. the xetra dax, though, up by around 0.3%. the cac 40 is flat and the ftse

mib has dropped into the red. i guess the effect of the reports of the corporate bond buying by the ecb, that didn't last all that long. let's have a look at the other top stocks we're watching for you this morning. peugeot in friends, up by 0.7%. the stock trading higher after strong growth in european market helped lift sales despite head winds in emerging markets. stephane is going to join us with more on that story in around ten minutes time. different story for heineken. its trade near the bottom of the stoxx 600 reported a surprise decline in european beer sales during the third quarter. shares off by 1.8%. and nordea off by 2.1% and announcing a big impairment charge after an i.t. systems upgrade. we spoke to the ceo and asked him if he was concerned about

swedish property prices. take a listen. >> it's a healthy development.. but, of course, whenever you have these developments, how prices go up and possibly a bit more than the underlying economy, then of course, we need to hold back on the credit and we're doing that. we are reduced long-term values. we have put in more requirements for the debt and that has been implemented during the recent year and we continue to do that. >> let's continue with a look at the currency markets. we're still seeing the euro/dollar under pressure. we saw the paring down by 0.7% yesterday. it's continuing its decline, off by 0.2% today at 1.2684. the dollar saw a bit of a rebound yesterday, but today it is lower against the japanese yen, despite the fact that we're seeing more risk appetite coming bavp back to the market.

this is, of course, an unwinding of the safe aiven trade and the aussie/dollar. but we saw that pair spike higher after we saw benign inflation reports and we saw a short squeeze there. obviously, lots of saucy bears out there. let's have a look at the bond markets. and we're seeing prices tick higher. this is a reversal of the safe haven trade that we've been seeing over the last four to five weeks or so and yields are ticking lower. we've got the yield for the german one at 0.86%. but we've seen the ten-year treasury yield ticking higher again, 2.19%. and, of course, we're going to be watching the ten-year guilt year, 2.4% currently as we get those yields. quick check on the asian markets where we saw a rally. the nikkei 225, once again, the biggest outperformer of 2.6%.

remember we saw that 4% rally on monday. today this is in part because of those export numbers. and the hong kong comp up by 1.4%. and this market has been very resilient despite the protests going on and we saw those fruitless talks between the government and the protests yesterday. today, this is up 1.3%. seema. >> are you invested in the high yield market? you might want to recancer. billionaire investor carl icahn says it's in a bubble. speaking with cnbc's fast money, the activist investor cited concern with recent stock market moves. >> the fed has made it clear that they're not going to raise interest rates so fast. this market follows the fed. i am quite concerned that something is going to happen. >> is carl icahn right to be concerned? we want to hear from you. join in on the conversation here on "worldwide exchange." e-mail us at worldwide@cnbc.com.

tweet us @cnbcwex and you can see our handles at the bottom of the screen. >> i want to bring in lothos now. there's a lot of reasons for volatile speak in the past couple of weeks. do you agree with mr. icahn that it comes down to one thing and that is the fed? >> i think that's what triggered it, the end of taper, end of quantitative easing, fear of rate rises. i wouldn't perhaps go as far as he did, high yield is in a bubble. i think it's offering poor valuable. whether it's a bubble or not, time will tell. >> but if we step back a little bit, all the focus has been on when rates itself will go up and the focus hasn't been on the end of qe which is, of course, this month. have markets underestimated that factor in particular? >> i think they might have underestimated what it does to the psyche of the average

investor, just looking back at the end of qe 1, 2, 3 and say, well, markets fell off, what's the chances of them falling again? yeah, we might have underestimated that. >> today we're seeing markets putting more focus on that. obviously, it's having an of course on the equity markets. but the bundes bank would clearly be opposed. do you think this is something that will ever come to life? >> i think it would have to. if they want to fully expand their balance sheet of the ecb, they have to go beyond covered bonds in abs. there's just not enough of it around to buy. the ecb would become the owner pretty much of those two markets. they have to go beyond that. if either government debt or corporate debt, i would prefer corporate debt. >> we should have done this, we should have done the full blown

qe, the option when we were at the height of the eurozone crisis. >> i couldn't agree more. the ecb, unfortunately, because of my german compatriots are behind the curve. >> i think the german constitutional court made it legal what the law says. if you don't think the law is appropriate for the situation we're in, change it, and they can. >> but that will take a significant amount of time. if we're asking for immediate action that's needed, as we look at things, even though data hats gotten worse than germany, it seems as though we're a long, long way from a significant change like that. >> yeah. i think the more pessimistic side of me believes the public opinion in germany is not really supporters of this yet. i haven't got any immediate hopes. but i think the markets can see there isn't any other way for

europe to move. we've seen a contraction in the base which is what happened in the early '90s and '30s which is exactly what we want. >> a reason for the meltdown still exists. the nasdaq and s&p posted their biggest interday gain in a year. >> because nothing really has happened, we're looking back at the fundamentals and i think, well, nothing really has changed and maybe this was exacerbated by a lack of liquidity and the sectors coming together. maybe it's just been a bad early halloween spook. >> so the volatility can continue. do you think it's vulnerable to a construction of sorts? >> i think it's good to have that sort of washout that we had last week. so i think we'll see slightly less volatility over the next weeks because we've had this cathartic week.

but yes, volatility isn't behind us. >> lotar, thank you so much for joining us from tatton's investment. still to come, peugeot runs into emerging market issue. is there hope for recovery in its home market? we'll discuss after the break.

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the european commission is meeting and according to the ft, the commission has written to italy, france, levine ya and more to request more information on their plans. the french lower house of parliament approved the first part of its 2015 budget despite not meeting key deficit commitments. >> russia and ukraine have failed to reach an agreement over gas supplies for the coming winter. the eu meeting was expected to secure a new deal. but russia wants more assurances over kiev's ability to fund payments. moscow is demanding ukraine pay for gas up front accusing kiev of failing to pay a $5 billion bill. and total is spec'd to name board member and former ceo as

the company's next chairman during an emergency meeting. total has not confirmed the time of the announcement, though, expected at around 10:30 cet. the meeting follows the death of former ceo and chairman and a russian plane accident yesterday. let's get out to stephane pedrazzi covering the story for us. stephane, that report that we're going to be seeing in the chairman as the ceo, how much truth is there to it and what can you tell us about the new candidates that are being put forth? >> the continuity of the government and the company, sherry demianet was the chairman of total in 2013. and is the one who consolidated the french oil sector in 2000. that would be the safe decision

for total to re appoiappoint hi although it would be for a short period of time because thierry desmarts will turn 70. so it will be for the transition. as for the the ceo position, the head of the refining and petrol chemical unit would be put before the board, but this decision would have to be approved by the shareholders of the company because he is not yet a member of the board. pending this announcement, total is looking at the shares of its governors. there are no reasons to be worried for the future of the company according to some on the board. >> thank you for that. stick with us because peugeot's sales rose 1.6% in the third quarter thanks to a strong performance in china. so revenue in its key automotive

division dipped over the same period last year. let's get back out to stephane. stephane, what do you make of these numbers? >> sorry? >> what do you make of these peugeot numbers? >> actually, it's good news when you look at the performance in asia. up 44% for the sales in volume. sales in volume grew by 7%. however, the revenue from the automotive division was a bit weaker on the quarter, down 0.8% because of negative exchange rates, especially in latin america. now, in terms of regions, peugeot is more confident about the recovery of the european market. it raises forecasts to 4% to 5% growth for the full year. that's to compare with the previous target of 3%. peugeot citron is regaining market shares in france, although the recovery in france is still very weak.

however, the company is facing difficult conditions in latin america, russia, and it's lowered its forecast for the full year. last but not least, although the performance was very good in asia for the third quarter, there was a question mark for the last year because of the instability in hong kong that could hurt had peugeot sales in the fourth quarter. >> stephane, thank you very much for that. i'm going to bring in christina church, analyst from barclay's. as we just heard, peugeot has increased its outlook for continental europe moving forward. is that somewhat optimistic? >> no. i think it's very much inline with our expectations from europe. i think they were just lagging behind a little bit in their previous forecast. so nothing to get more optimistic about. i think if anything, our worries for them are that they will be losing shares in europe and globally because they're not spending enough money on cap ex

when their competitors are increasing spending. but certainly no more optimism in their european forecasts than the market already assumes. >> so how does peugeot make money in europe when europe is dealing with swelling growth and a weak consumer? it's very difficult for anyone in the mass market to make money. peugeot are doing the right things. they are trying to stream line capacity where possible, improve the utilization rate. but as you said, the macro situation is tough. they are struggling against competitors and are, therefore, able to offer the consumer credit. it's very, very difficult and they are not making money in europe. >> christina, european car sales for the month of september, they grew by 6.4%. peugeot sales up 9.8%. it can't be all bad, right? on the other hand, though, we've got ford downgrading its

forecast for europe. how worried should one be that what we saw in september was really just an aberration? >> i think it's difficult to tell from one month. august sales were much lower than the september sales. certainly september was a relief to the market. our analysis of the underlying market show the trends are getting more negative. as i said, we think somewhere between 4.5% growth is the amount of growth for this year. but we're expecting a very, very slow recovery in european data. consumer confidence is turning more negative. business sentiment data turning more negative. so the macro underlying data is not supported for growth being significantly higher going forward. but neither are we expecting a collapse in sales, either, just that the recovery is not such a v-shaped sharp recovery, but slower. >> christina, shouldn't the lower currency help?

i know we've talked about this before and you've made the point that the currency is much more of a sail wind for the german automakers than for the french automakers. why exactly is that? >> so the german automakers are exporting more to the u.s. and, therefore, the weaker currency, the weaker euro, it's helpful to them. however, the fresh automakers don't have significant exposure to the u.s. they're much more exposed to emerging market currency. they've been hurt a lot this year, to date, by the latin currency, by russia, peugeot in particular, those currencies that they mentioned. q3 numbers show currencies had eased a little bit, but it was still negative and it's certainly dragging on numbers. it's helpful for pricing purposes, though, that the valuation of currency does mean that they can increase price necessary some of those countries in order to cover that currency issue. but for the moment, they're not getting the same easing and currency pressures that the germans who are exporting more

to the u.s. >> christina, quickly, i want to touch on daimler. it sold its 4% stake in tesla for $780 million this morning. the key thing, it's agreement to share technological advancements. does this mark the top of tesla share prices? >> the reality behind this deal was daimler didn't have as much independence in terms of the r&d agreements when they had a joint ownership with tesla. so getting rid of the ownership i think gives them more flexibility in negotiating the pim. but i don't think anything has changed in that partnership >> christine, i'm going to have to interrupt you there. thank you so much for joining us. still to come on the show, we bring you the latest bank of england meeting minutes after this break.

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welcome back. a muted open for the european stoxx 600. activist investor carl icahn

tells cnbc, new risks are forming. >> the high yield market is in a bubble. i think that sooner or later, it's going to -- but i'm not telling you next week or next month. that doesn't mean i'm right. in fact, i'm losing money on it right now. i think that that is a no-brain no-brainer, also. yahoo! shares jump in frankfurt with better than expected third quarter revenue. but the pressure is still on as the company's online ad business continues to struggle. >> it's a mixed for earnings. and david tapper turns bearish of the euro, taking a bet on further ecb easing. >> and we just had the minutes from the bank ooh england's meeting two weeks ago.

as expected the vote was 7-2. mr. wheel and mr. mccafferty, the two that still continued to vote for a raise right. the other seven members continued to vote to keep rates on hold. we're going to bring in helia and advance. as expected, where they were, two out of nine votinger for a rate increase, lasted week we had slightly better inflation data, but weaker than expected data. >> there is a development in the september minutes already where they've been turning a bit more cautious in view of the growth risks to growth growth. the minutes may -- the minutes may indeet highlight, but those trends have deepened. it is encouraging that we don't

see a change in the voting split speculations ahead of the minutes. that maybe mccafferty may have changed his mind. if anything, that may help the bound with any jerk reaction right after the minutes. overall, however, it seems the bank of england will be monitoring especially global development and their impart on the uk economy before deciding so raise rates. >> do you think as early as next month we could be seeing an h-1 split or even a -- >> no. >> why not? >> it's boring as hell. what can it you? who would have thunk it? just when you thought interest rates may go up in your lifetime, the bank of england has all turned very dovish. we had this incredible speech out from andy, the chief economist last week saying basically forget about it. we're going to keep it at record lows. forever, actually, it seems. >> he didn't say forever. he did not say that. >> well, no, he was incredibly

dovish in turn talking about the rising current of the economy. i think the issue is we have this wheel from martin saying don't worry about inflationary pressures because, actually, a lot of the slowdown in prices picking up in the uk are because of issues that are not to do with the uk economy. they're to do with commodity prices. and there's not that much slack in the economy. remember what the bank of england are doing is saying how much slack is there in the economy? when do we need to start picking up rates? and the consensus seemed to be it was going to happen around february. the concern over what's going on in the eurozone, especially germany, has been what's put a nervous twitch in everybody's bath. you have this speech saying the uk is a lot weaker than we thought, a lot more fragile. >> i want to come in here with a

trading idea. sterling falling after the minutes dropping to 1.6040 on edf. there's the euro raising to a day's high after the boe minutes. buy on the dips here, is that the idea? >> in the case of cable, the more important print today would be the u.s. inflation data. that's the one everybody will be watching. i had a chance to look at the initial headlines from the minutes. they were as expected, some deepening concern about the potential negative impact from the slowdown in the eurozone on the uk economy. obviously, the weaker inflation print was mentioned, as well. if anything, given the pricing in the market, given the revision we saw in market trade, high expectations, short selling, it's been very bit in recent weeks that could suggest the markets may be starting to correct and normalize and bringing forward agagenerate hi. in terms of trade ideas, i think

the view is long the count against the euro. in cable, the latest development has been driven by dollar selling rather than sterling buying. so if anything, if you want to be buying the bound, do it against the euro than the dollar. >> remember we've got gdp figures coming out on friday for the uk. so people will be looking at that. but really, the issue is that even though we've gone fast in the uk this year, growth is going to slip next year. >> all right, helia, thank you so much. we've been talking about the sterling/pound. but what will happen to the euro from here? read what david tepper thinks on our website. log on to cnbc.com. with us now, valentine marinov. i want to get your thoughts on the euro. david tepper, he's short the euro. do you think that's a good trade given the concerns over the weaker than expected economy in the eurozone? >> longer term, the risk is firmly on the down side. the deterioration in the eurozone growth and inflation

outlook is a fact. and the ecb has been caught, again, really, just un unable t respond to that in a timely manner. if anything, policy action seems likely. the november/december meeting will attract a lot of attention. there is no clear evidence that the measures are having an impact or growth. measures including qe buying up sovereign bonds will likely linger on the currency. >> that's the biggest consensus trade out there. if you want to enter now, does it make any sense or have we seen most of the lows against the dollar already? >> i think in terms of targets, the answer to your question is yes, 1.20, maybe the potential target of a more medium term. it is, again, a fairley well established view of the policy divergence between the more hawkish fed and presumably the extremely dovish ecb.

that's been in place for a while and a lot of people are having that trade. that said, the latest market of insurgency which leads to the convergence trade or the decouplel trade, if you wish, has given us some interesting selling opportunities. so the current levels for euro/dollar may indeed provide interesting selling opportunities, targeting 1.20. >> thank you so much. for joining us. let's get an update on what markets are doing so far in trade today. the european markets are off just a little bit. some volatile moves, a couple of countries in the green, but the bigger industry in the red. the ftse 100 is off 0.4%. germany just below flat and france and italy also off a little bit so far today. markets yesterday in europe were positive on rumors that would

consider buying bonds. euro stoxx 50 likely to be much different, down 0.6% continuing its 30-day downward trend. and let's look at bonds. interesting moves the last couple of days. wall street was strong yesterday. that meant the bond market was weak. saw prices come up and yields pick up today again. the ten-year treasury, 2.9%. the wider trend for september/october still if place. german ten-year at .85%. and the uk, 2.14%. >> how many of europe's key banks will fail the ecb stress tests? more than 5, less than 5 or they'll all pass with flying colors? i guess that last oukt is not what the markets are wanting because that's what we've seen before. head to trader poll to cast your vote.

straightaway, you'll see that trend. and speaking of stress tests, the ecb is looking to get third time lucky with the latest round of stress tests as regulators are hoping to convince markets of this ability of the region's banks. we'll be going live on sunday, yes, on sunday, that's the 26th of october to break those results and bring you the press conference with the ecb vice president. >> we're looking at the japanese markets move higher in today's trade. one company in particular is under pressure, takata, after they were urged to immediately replace defective air bags made by the manufacturer. we have the story live from tokyo. ma keeko. >> yes. four deaths in the u.s. are reportedly linked to takata air bags malfunctioning.

automakers have recalled more than 9 the million vehicles that could be affected. in an unusual move, u.s. regulators issued an additional warning on monday after an ongoing investigate indicated that high humidity might be an indicator in the deployment of the air bags.. nearly 60% of the vehicle being pushed for recalls are made by honda followed by toyota, nissan, bmw and general motors. takata has booked an extraordinary loss of over $400 million add to go repair and compensation costs to the current fiscal year. with the announcement, takata shares nose dived yesterday and continued to head lower today with the stock price ending flat. now, the first round of talks between students and government officials in hong kong has ended without any break

through. large screens were erected to allow thousands of protesters listen to the city's debate. there have been possible concessions to choose the next chief executive. one of the protesters dismissed any potential government plans. >> translator: there are some proposals by the government today, but they are empty and powerless. no one knows the exact content and they did not explain what it is. >> hong kong chief secretary carrie lamb said the talks have been constructive, despite there being no initial break through. >> you can't expect to reach agreement with the students representatives in a single dialogue tonight. but i do find the discussion very constructive. because we are able to exchange views on important subjects relating to constitutional -- >> susan li joins us live now

from hong kong. susan. >> hi, seema. we weren't expecting much agreement given that it was a live televised debate. but i should point out that we heard the hong kong government's view in china, at least those that actually watch and listen in to this debate because it's not a negotiation. then when they went to the student protesters, they blocked it out. you see it's not what they're calling a protest any more. it's what they're calling a sit in or a live-in right now as we call this tent city. but i should point that there were tensions today in another heated part of the city which is another flare up, another protest. barricades have been -- at least the police tried to tear down a barricade and apparently

protesters stepped in and there's some heavy vehicles in place there right now. as for these protests, they tried to march because they came out with more inflammatory remarks this morning. in the first international interview he held was in the financial times, the "new york times," he said you're lucky you're dealing with me because the patience in beijing is very thin right now. he talked about foreign interference with the protesters saying there is a foreign interference element to these protests and not saying that's stemming from domestic hong kongers that want peace. also, i want to tell you if there has been, say, a ban on celebrities. it's interesting that the mainland has banned 47 of these what they call pro occupy celebrities. and we also had a visit from a celebrity, as well, if we can bring up the picture. kenny g made an appearance here. he's not supporting the pro

occupier moment. he wants peace as he makes his way to a pro am golf tournament. back to you in london. >> thank you so much, susan li. breaking news, we have seen a slot in the euro against the dollar in the last half an hour. we've seen significant weakening in european equity markets. take a look at the euro/dollar. 1.2689. this is after reports that at least 1 is banks will fail the european stress tests. they're citing several unidentified football sources. let me just ask, the results of the stress tests will be out on sunday. but it's -- it's four banks in greece, three italian lenders and two as treean ones are among those in preliminary data have failed the tests. no comment obviously from the ecb. >> and that's weighing on the euro/dollar.

1.2688. european equities, as carolin was just mentioning, at session lows over the fear of the bank stress tests. we'll keep you updated on that story. still to come on this show, w.h. smith may be best known for selling pens and paper in the back to school retail season, but our next guest is sees it as a prospective investment prospect. and history going up on the auction block in new york today. we chip away at the details, next. introducing synchrony financial bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. engage with us.

welcome back to the show. i just want to keep you abreast of a story that has been moving. european markets and the currency markets over the last half hour or so. at least 11 1 banks will fail the european stress tests. that is according to spanish news agency efi. we're seeing the euro/dollar close to session lows at 1.2695. it is down roughly 2% on the day. and the european markets which had started the day in positive territory, they're falling. the ftse 100 down by 0.3%. the xetra dax down relatively well 0.1 spers.

three banks in greece, three e italian lender and three austrian ones will fail the stress tests. of course, we do want alternative banks to fail because if no banks fail, that wouldn't make the exercise credible and it hasn't been credible the last three times. absolutely. i think it's important that this shows it's not just a broad brush approval of the banking system and those results will be key on sunday when they come. the euro moving to session lows. people are not certain that this is true yet. nonetheless, all eyes will be on the results on sunday. moving on, a rare piece of computing history goes up on the auction block in new york today. this apple motherboard along with a keyboard and monitor is expected to fetch as much as $500,000 or six times what it cost in 1996.

the motherboard is expected to be one of the original 50 that apple co-founder steve wozniak built in steve jobs's garage. >> will you make a bid for that? i know you have somewhat of a tech enthusiast. >> this one in particular i'll let go to someone else. apple and gd advance have struck a deal to close a key factory in arizona and allow the company to explain the circumstances leading up to the bankruptcy filing earlier this month. gd was expected to be a major supplier of glass for the iphone 6, but apple went with corning instead. apple shares are up mow that are 27% this year and next year. carl icahn, the billionaire investor has been talking up the tech stock. the billionaire investor along with david einhorn say they see more upside. >> you look for companies like this that come around maybe once

in a decade, maybe even less than that. there are just no brainers to buy. and the risk/reward is so much in your favor on that one. where do you see a company that literally could do eight, nine times earnings in 15 and we know the earnings are going to grow. even if they don't, it's tremendously cheap. >> apple is right now working on all the cylinders. there are probably more things that they will innovate and grow in the future. right now, pretty much everything they're doing is going well. the capital allocation, the buyback, has made a difference. i think it added about 7 points to the earnings per share growth. it seems likely that they're going to continue doing these things. >> glaxosmithkline reports third quarter earnings today with

investor looking for a return to form after the group slashed its 2014 earnings outlook in july. shares in the group are down almost 17% so far this year. catherine bull joins us now in studio to discuss what to expect. catherine, how much do you think generic competition could eat away at the bottom line this quarter? >> you're going to see a real erosion and even more than some had feared, particularly gsk's treatment drug. and prescribers are looking for better value, propositions and prescribing anything that looks like it might work at a lower price point. its had a lot coming through in the pipeline. they just haven't come through as well as expected. it's trading at a roll discount

to the factors in europe. it has so far been completely sacrosan sacrosanct. that looks threatened by declining revenues and even big signs such as they saw in china earlier this year. there could be increased worries, i think. >> cath rip, i just want to step away from earnings for a moment. we know gsk is working on an ebola vaccine. when would that be available and what would it do to revenues? >> it's not likely to be a big revenue boost. the development of the vaccine business has been more of a public health initiative rather than revenue target. for example, they've been working on a malaria vaccine for many years which they're hoping

to launch later this year. the ebola vaccine, the protests to bring that to market has been sped up. but this will essentially be trading people here. the only way that could start pumping up sales is, for example, westerners traveling to certain parts of africa have to all get it or something like that. >> catherine, thank you so much for that. do send us your e-mails to worldwide@cnbc.com or fine us on twitter. my twitter handle is at carolin@cnbc. the show twitter handle is @cnbcwex. back to the markets, is carl icahn right to be concerned? we want to hear from you. he did of course tell cnbc yesterday there may be some risk in this market. join the conversation here on "worldwide exchange." e-mail us worldwide@cnbc.com, twitter handles on the bottom of your screen. with earnings season fully under way, we're taking a closer

look at the best stock picks for your portfolio. here to help us do that is alex gund, fund manager at hecht gone capital. alex, always a pleasure speaking with you. is this the right time to be a stock picker? we know in the past with qe from the fed, with qe from other central banks, the rising tide has always looked -- now that they're taking away the punch bowls, is it the right time to look at those? >> i would high like two factors in particular. in the absence of central bank policy, we're very, very focused on high quality business momgdzs. and the stocks that we're here to talk about today we think are

all exceptionally under valued. >> union vrsal health services is one of the stocks you put down. >> we think with regard to human health services and hospitals, it's a very simple story and the number of potential things that can go wrong in the story stands to be lower. with regard to uhf, they are the number one hospital provider in the u.s. they're number one, number two in acute care. the three things that are going to drive the stock, assets, the change in the affordable care act. clearly that means a lot more people coming into hospitals and getting the payment for that. and number three, clearly, the pick up in the economy in states where they're very focused, california, november november, very strong trends at present. >> and tell us your case.

undervalued business and misunderstood. can you explain? >> absolutely. >> while it's very -- the current derive revenues and has gone backwards really for the last ten years, i think that's missing the point. this is a company that's been very successful in terms of taking out costs every single year. they've expanded their travel operations substantially. that's why they're making money and they're consistently returning -- b. >> and do you own all three of these stocks? >> we do. >> we'll leave it there. alex from heptagon capital. taking a look at u.s. futures, we're indicating a lower open on wall street after a big move on wall street, big move in markets yesterday. to.

. welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are yours headlines from around the world. >> the nasdaq and the s&p post their biggest one-day gains in a year. >> and 11 european banks could fail this sunday's stress tests according to a spanish newspaper. ya should shares jurchl as the internet giant reports

better than expected internet revenue. but the company's ad business continues to struggle. >> gsk says research for an ebola vaccine is advancing at an unprecedented rate. sfla you're watchi . >> announcer: you're watching "worldwide exchange," bringing you business news from around the world. i'm carolin roth. boeing takes flight at the u.s. open with third quarter earningearning s phil lebeau joins us with a preview at 11:30 cet. a rare piece of computing history goes up for sale on the auction block. and hedge fund types down low putting pressure on am again to split it into two different companies. find out why.

we'll speak to industry experts in the next hour. we've seen massive moves in the equity markets. last week, concerns over ebola, youth global growth concerns, we were very close to entering correction territory with the s&p. this week, the nasdaq and s&p posted their biggest interday gain in a year. >> there wases some positive earnings in apple, the big one that changes sentiment as a whole. but there were negative ones out there, as well, like mcdonald's. it's a bounceback at eyes on fed policy. indeed, yesterday, that flirtation with the possibility of more easing in europe just giving european stocks a boost. and that reached european markets. >> clearly, there's still money on the sidelines waiting for the

stocks to go lower, to get back into the markets. so a little bit of bargain hunting at play here. let's take a look at u.s. futures right now indicating a mixed open. dow jones industrial down about 10 points. s&p 500 down about 2. the nasdaq up about 4 points after logging its first triple digit gain in over three years. it was a big move in the nasdaq. a lot of that having to do with apple and that better-than-expected earnings report. taking a look at the cnbc global 300 index, it is flat. ahead of that, a speculation. on that note, dive into the european markets. we were at session lows about 20 minutes ago. the ftse 100 down about 12 points. the xetra dax, up about 1 point

on the day. france in focus, down about 3 points. italy down about 52 points. so a mixed day of trade but, of course, those bank tress tests will be in focus not just today, but going into sunday. >> absolutely. this sentiment has certainly changed what markets are doing today, as you're suggesting. yesterday, a very strong day for wall street as seema just said. that meant a negative day for one market. we're going to quickly update you on asian markets. a strong day for the nikkei. it's been volatile this week. today it's back up a couple of a percent. hong kong is up about -- was up about 1.4% in china down 0.5%. let's look into bonds. as i was saying yesterday, strong day for wall street. the ten-year depick back up 2%.

with he those minutes out of the mpc earlier today. no change, the vote 2-7 in order for rates to stay on hold. very much staying as expected, 0.5% in the minutes confirming that sentiment. let's have a quick look at forex. down 1.5%, 1.269. that's where it is following that bank stress test rumor that we heard earlier as seema mentioned. 106.89 on the dollar/yen. and sterling is at 1.6029. carolin, back to you. >> the high yield market is in a bubble, according to billionaire carl icahn. speaking with fast money, the activist investor cited concerns

with recent stock market moves. >> the fed has made et clear that they're not going to raise interest rates. this market follows the fed. i am quite concerned that something is going to happen. >> carl icahn, is he right to be concerned? we want to hear from you. join in on the conversation at worldwide exchange. worldwide@cnbc.com,@krns wex. given the volatility that we're seeing in the markets, the vix above 30, there still seem to be a level of fear in the market. >> yeah, but has he told us anything new? the high yield market has corrected in the last fou four weeks. we've got some viewers writing in this morning that this is a buy signal. to be honest, was i surprise? not at all. but that comment, anyone could have made it. >> they could, but what he's

pointing to, the biggest factor is the fed. the market was selling off because of weak fundamentals in germany as a whole. a couple of comments from the likes of mr. bullard and people are focussing on what the central banks are doing again. >> the markets perhaps could be vulnerable. on that note, let's get some expert opinion, the cio at deltic international group joins us. great to have you with us this morning. let's continue that discussion. do you think global growth fierce and ebola as well as the drop in the price of oil still exists? and will that rock markets going forward? >> there are two things negatively impacting markets right now. the first is global growth momentum is weak right now and it is expected to remain so

until the next couple of months. it sets up for a volatile and weak mountain condition. >> next week, janet yellen is expected toned quantitative easing three and remove the line that says it will keep interest rates low for a considerable period. if we get that, could stocks move lower? >> we're concerned about what's happening. we're more concerned about what's happening with short-term market rates. now, interestingly, in the three months that we saw through september 30th, we saw that two-year rate increase dramatically. we saw that two-year rate

increase by a third. if those upwards movements in market rates that are causing a lot of that volume telt because it's telling us liquidity globally is falling. they're all going to suffer as a result of that growth. thief pe compression. which of those sectors and where would you like to position yourself now? >> that's a good question. if we were looking for a bout, and certain market indicators do push towards that. we're in a weak level of growth. it would be in the sectors where we're seeing period compression. some of the sectors which we think look optimal right now, which fall within that, tech, hardware and equipment in the

u.s., boling of those sectors have experienced pe compression. as well as that, neither of those sectors is slowing with liquidity growth. >> we've seen it over the last four to five trading days, haven't we? if you're chasing that bound now, it may be too late to jump on the bandwagon, isn't it, especially as liquidity continues to tighten. >> that's exactly right. that's why we say we always have to come back to those points. liquidity growth environment is slowing, as well. that doesn't make for stable markets. where we are going to see a bounce, typically you would see the most oversold sector down. we're saying don't necessarily chase the areas which will bounce the most, things like commodities and emerging markets. that's going to be exposed to that strong liquidity growth.

we look at markets that are improving going into 2015 such as that because in the u.s. and a few other sectors globally, as well. >> you're right. thanks for your time. and i just want to update you on that story we've been telling you about over the last half an hour or so. the ecb spokesperson has come out to respond to those reports in spanish media that up to 11 banks might fail the stress test. he said everything at this point is speculative. final results will be released on sunday. nevertheless, the euro/dollar has touched session lows off the back of this rumor. >> i'm surprised they commented on that. usually i would expect a couple days to go until the release of the stress test they would say no comment whatsoever. but they didn't are we now going to guess whether this is a bluff or a double bluff? >> we're looking at the euro/dollar trade at session lows at the moment. let's give you a rundown of what to watch this trading day in the

u.s. september cpi is out at 8:30 a.m. eastern. consumer price is expected to rise modestly when you strip out food and energy. after the close, our eyes will be on at&t. >> let's take a look at today's other top stories. yahoo! eking out a modest revenue gain after the third quarter. revenues rose 1% beating forecasts. profits did jump on the alibaba stakes sale excludeing that earnings still beat expectations. yahoo! reporting more than $200 million in mobile revenue, but display ad sales fell once again on the conference call ceo marissa mayer defended the company against activist sha shareholders who.

>> we have built a team up to the task. that team, our board and i have and will continue to be careful stewards of shareholders money. this team has been in place for two years and we've achieved much more than people realize. we have achieved significant shareholder value. >> and shares are up by 3% in frankfurt right now up by a little less, 278%. coming up, investors anticipate third quarter earnings from gsk. this as the global community awaits its work on an ebola vaccine. we get the latest 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.

welcome back. yahoo! given a boost as the internet giant's first quarter revenue beat forecasts. a spanish newspaper says 11 banks will fail the upcoming stress kefts, but the ecb has done everything expected at this point. glaxosmithkline is looking to advance after an unprecedented case. as we just mentioned, glaxosmithkline releases third quarter earnings today as the pharma group says work is progressing at an unprecedented rate to to develop a vaccine for

ebola. let's get back to catherine who has been covering this story for us. an unprecedented rate. but i think it's too lit too late for all those people in west africa, hasn't it? >> the ebola epidemic has been a classic example of how some problems get treated differently from third world problems. i think if action that's being taken by international health and indeed governments in the west does seem to, in some cases -- groups of people who have already died from this horrible disease. having said that, anything which has -- means that the clinical trial tests with these kinds of vaccines is spread out is probably a positive for the industry and also, of course, for patients if they're being put right at the heart of this. but, of course, we also have to remember that the clinical trial is there for a very important reason, which is that you can

identify any bad side effects. nobody wants a vaccine which might stop the ebola but causes your arms to drop off or something like that. >> just to clarify this, it's not a game changer for gsk. the revenue that we're expecting to see from this and the profits, they're not expected to be huge, right? >> it's likely to be negligible. further down the line, there may be some potential for revenue growth. for example, if attorneyist res travel to go that region, but certainly not for the first year or so. that's going to be address this particular health emergency. it would be a pretty bad move to start charging at this stage. >> thank you so much for that. earnings will be out in 45 minutes time, right? thank you. still to come on this show, we take a closer look at the economic toll from ebola straight after this break. ♪

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open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. nasdaq up about 5. keep in mind, the nasdaq had its first triple digit gain in about three years. it was the combination of short

covering as well as bargain hunting, which did help the s&p 500 and the dow move to the upside. keep in mind, the s&p 500 has now gained more than 6% from its session lows hit last week. >> let's have a look at european markets. the biggest factor moving them today has been that story out of the spanish newspaper suggesting that it's possible some of the banks might fail the big stress test coming on sunday. since then, the ecb is coming out today. that's just speb lagz. they're basically flat. the stoxx 600 is indeed flat. ftse 100 similarly flat. germany and italy fractionally up. >> let's have a look at euro/dollar. down by 0.2%. very close to the session lows. 1.2695. corporate bond buying sent the euro/dollar down yesterday in the trading session.

sterling/dollar, 1.6031 right now. down by 0.5%. that is a big mover today. after we got the boe minutes out saying that 7-2 members of the mpc still voting for no change in rates. we were expecting a slightly hawkish 8-1 is what some people had expected. now, a rare piece of computing histories goes up on the auction block today. this apple 1 with keyboard and monitor is expected to fetch as well as $500,000 or 600 times what it comes in 1976. the motherboard is thought to be one of the original 50 that apple co-founder steve wozniak built on special order. what i would give to go to that garage and see where apple, the most valuable stock in the text index was created. >> how much would you pay for that motherboard? >> i don't have that much money, so i don't think i could pay that much, but it's interesting

to see how much interest there is on this. >> i saw the movie steve jobs over the weekend. have you seen that? >> no. >> it didn't get up to the stage where he invented the ipod. >> a little disappointing. >> on that note, take a look at apple shares. up more than 27% just this year. carl icahn has, again, been talking up the tech stocks. the billionaire investor, along with david einhorn says they see more up side in the stock. listen in. >> you look for companies like this that come around maybe once a decade. maybe even less than that. that are just no brainers to buy. and the risk/reward is so much in your favor on that one. where do you see a company that literally can do eight, nine times earnings in '15 and we believe the earnings are going to grow 30%. but even if they don't grow 30%,

it's just tremendously cheap. >> apple is right now working pretty much on all the cylinders. i mean, there's probably more good things that they will innovate and grow in the future. but right now, et much everything they're doing is going well. in the quarter they announced, it seems likely they're going to continue doing these things. >> as we said earlier, we told you about carl icahn, telling cnbc he was concerned with recent market moves. so we've been asking, is he right to be concerned? we want to hear from you. join the conversation here on "worldwide exchange." meal, worldwide@cnbc.com or via twitter @cnbcwex or our personal handles which are on the screen now. what do you think, is he just stating the obvious? >> i think he is. i think that's exactly what we could be expectsed to hear about a month ago, two, three, four months ago. and we've seen sell-offs over the course of the summer. we saw a pretty big one in

august. we saw another one over the last couple of weeks. he even says i think it's a no-brainer. >> totally optimistic, you're saying? >> i'm not saying that. but i wouldn't think this adds a lot of value. i know he's very experienced in terms of his investments in specific stocks. had a lot of success in the likes of apple and ebay, for example. but does that help? >> speaking of hedge fund investor, recent reports indicate that hedge funds on average are underperforming the s&p 500 this year. in fact, the reason we could see some of these hedge funds play catch up in the year, something to watch. let's quickly give you an update on the market right now. european markets have recovered a bit of ground over the last half an hour or so. they had traded down on that news abdomen we said that 11 banks might fail the stress tests on sunday. they've now come back to roughly flat across the board. germany slightly leading up 0.22%. but in general, european markets

struggling for direction and range bound roughly flat. >> still to come on the show, we're going to talk biotech. hedge fund down putting pressure on amgen. find out why when we speak to an analyst next.

hello and welcome to

"worldwide exchange." >> u.s. futures point to a mixed open in line with a muted session in europe after the s&p and the nasdaq post their biggest one-day gains this year. >> reports suggest 11 european banks will fail sunday's stress tests, this according to a spanish newspaper citing unnamed sources. but the ecb says everything is speculative at this point. yahoo! shares jump as the internet giant posts better than expected third quarter revenue. but the company's online ad business continues to struggle. gsk says research for an ebola vaccine is advancing at an unprecedented rate. >> announcer: you're watching "worldwide exchange," bringing you business news from around the global. >> and if you're just tuning in on this wednesday morning, thanks for joining us. here is a look at how u.s. futures are positioned ahead of

that wall street open. right now, a mixed day of trade in premarket. dow jones industrial down about 20 points. s&p 500 indicating a lower open by 5. the nasdaq, though, seeing a little bit of a gain when you look at the premarket move in the nasdaq. earnings will take center stage. 106 companies have report earnings in the u.s., averaging a 15.6% jump in profitability. today, our attention turns to at&t, morning star and abbott labs. we'll be watching the s&p 500 closely. last week, it did break below a key technical level. that was its 200-day moving average. but yesterday, it did come back above that support level. that, of course, a bullish move when you speak to the technical traders out there who watch the support levels closely. we'll be watching the nasdaq because it did see a big move yesterday, its first triple digit gain since 2011. a lot of that had to do with apple and its 2.7% gain thanks to better-than-expected earnings. but now our attention turns to yoo-hoo. it reported earnings last night.

now we'll watch how to see trade. diving into the markets, there's been a choppy session, fears over the upcoming banks, stress tests, initially sent equities lower. germany, the outperformer up about 9 points are at session highs. the ftse 100 still holding on to a loss of around 9 points. also focus on france and italy, there's news, of course, that the european commission will inform five eurozone countries, including france and italy, that their budget plans are at risk of violating eu budget rules. so we're keeping an eye on france and italy, both trading in negative territory. a look at the euro stoxx 50, keep in mind, the euro has been trading lower today. it was at session lows against the u.s. dollar on those fears over those bank stress tests. right now, we're looking at the euro stoxx 50. lower by around 8 points lower on the day. down about 5% over the past three months. so, let's give you a run down of what to watch this trading day.

in addition to earnings, inflation will be the key focus, september cpi is due at 8:30 a.m. eastern. consumer prices are expected to be unchanged from august and rise modestly when you strip out food and energy. >> let's have a little stink about where we think markets are going to go. carolin, i think the interesting thing here is over the last week or so, because you have more volatility, the change in sentiment expected we would get more easing. i think europe is a very different situation for one main reason. if we get worse news, it doesn'tly mean we'll get a remedy that will fix it. the question being, a, is there anything the ecb can do? b, will they be allowed to do it? >> i think you're absolutely right. it's all about the effectiveness of some of the measures that have been announced. and the u.s. really has the first mover advantage.

because they move boldly at the height of the financial crisis. even before that, even before it got to that point, they did the stress test and they did the bond buying. europe never did that because we have 17 countries that need to be reconciled about what we're aiming to do and that's why we're seeing this once again. it's too lit too late. >> absolutely. the question is will mario draghi now have no question but to unveil quantitative easing? is that realistic? >> all right. let's get back to the markets. and specifically, talk about one sector and that's biotech. activist in esthesther dan loeb written calling for a split of amgen. loeb ranked a top holder in the biotech company and says a split would generate more shareholder value. shares in amgen are up 21% in

the last three months. let's bring in matt loden. thanks for joaning us this morning. let's get your take on amgen, the largest biotech company out there. do you think a split is necessary in order to unlock shareholder value? >> hi, seema. nice to see you again. thanks for having me on. is a split necessary to recognize returns for shareholders? i do think that this one potential avenue for shareholder value creation. but i do think that the strategy executed over the last couple of years arguably has worked. you know, if you go about two years back, this stock was stuck in the $50 to $60 range bound area. one they executed an accelerated share purchase and makes deployment of capital there and executed on the pipeline over the past year, you've seen significant gain in value. so i think it's hard to argue that the avenue that we're on

today isn't creating a lot of value. now, whether a split could create more value, i think it would make sense. it's just i think that they still have upside to estimates. they still have further pipelines to come. so i think it's reasonable to believe that there's an avenue for value creation without a split, as well. >> matthew, let's take a step back from amgen. a lot of people skeptical of some of those valuations and outputs on them. what's your take on them generally? >> it's a great question, the most topical thing that i'm hearing. and, you know, i think it's hard for some people to reconcile the idea that it could be such a big outperformer the last couple of years and still on fundamentals so be relatively inexpensive or even -- the point that we make to inveters is that the move up

in the stocks over the past two years in biotech is tracked very closely with upward provisions and long-term eps growth. in other words, i argued that the run up in the sector has been highly rationale, actually, and that the price of earnings ratios have actually not increased substantially. in fact, they've increased over a two-year period, but not substantially. and auon a relative basis to lae cap growth is very attractively valued. we showed on the basis of historical valuations, certainly very much in the -- what i would say attractive in terms of the large caps. as you go down the cap range a bit, you know, you could look at the midcaps where you're value more on the sales, you know, revenue metric. those are also, i think, reasonable versus historicals. but the thing is, this group has created a lot of value over the past couple years in terms of new pipeline, new product cycles, just like any other

company. apple, you were just talking about apple a few minutes ago. apple needs new product cycles. when these product cycles come to market as they have for some of these large caps and midcaps, you'll see the stock move upwards to numbers to reflect those new opportunities. now, as you get down into the small caps, i think it's been argued that the valuations there are a little bit more stretched. you know, i would say in the small cap space, which really in aggregate constitutes a relatively small part of the sector, you know, we're just selective. we look at the opportunities. >> if you take a look at the buy your shares index, up about 22% this year. can that stock continue to move to the upside? how big does the hepatitis c drug playing in boosting earnings this time around? >> great question about iliad.

fist, can we beat the up side numbers? second, can they deploy their cash in a way that creates val for shareholders? yes, i think they can beat, particularly in the fourth quarter of this year. their expectations are too low. also for 2015, this has been one of their specific points of interest over the last couple of weeks is to note that we think if there's going to be another reasonable side step up in the market for next year, they will be the biggest beneficiary of that. can they create more value on the capital deployment? this includes capital spending, m&a and share of pure chase. this is all, i think, more or less being ignored. so we think there's still very significant value creation opportunity in igilead. >> thank you so much, we will leave it there. thanks.

sterling is set to announce quarter results before the opening results. they have beaten specations four quarters in a row surprising to the up side by almost 20% in the second quarter. phil lebeau joins us on the phone with chicago with what's spec'd from the numbers. >> wilfred, it's hard to call any quarter an ordinary or clean quarter. but that's i think what we're looking at with boeing. it should be a relatively clean quarter. we are not expecting any one-time charges to complicate matters. we think that there's a decent shot of boeing beating the street again. of course, the main focus is going to be on the commercial side of the business. and in that area, boeing has been working on improving its efficiencies and driving greater profits especially out of its two main vex or profits of drivers, and those being the 737, which is the bread and butter airplane for boeing. then you have the 787, which has

been gradually increasing product of this year. as they have increased production, they've been improving the efficiency and driving great er efficiency out of that line. it's not quite the break even yet, but the dream liner is getting closer and closer to that even as they expand production. is that greater profitability that we're seeing on the commercial side of the business, how much is that able to offset the weakness that we're seeing on the defense side of the business as defense budgets have been tightened particularly here in the united states? but also around the world. and the other thing thainest havers will be looking at is any indication, any hint at all that boeing, the chairman and ceo jim mcnearney is close to saying, you know what? i'm ready to step down and it's time for a new person to lead the charge here at boeing. there is no indication that we will get that word today from boeing. but remember, he has passed the

mandatory retirement age. he's not indicated that he plans to step down soon. but he's had a heck of a run and there are more than a few people who expect some of the questions from analysts today will revolve around how much longer can he expect to stay in charge at boeing. remember, the numbers coming out within if last couple of hours, again, i would not be surprised if we see a slight peak. >> thanks very much. sad news to report, ben bradley, the long time editor of "the washington post" that guided the paper through its coverage of the watergate scandal what the has died. he was 93. bradley took over as managing editor in 1965 and led if post for 26 years. president obama calls bradley a true newspaperman who transformed the post into one of the world's finest papers. and coming next, we go behind the wheels of tesla.

stay with us on "worldwide exchange." [ male announcer ] some come here 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 in this spirit that ingu u.s. is becoming a new kind of company. but it's always about the very thing we do best. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya.

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all right. social media earnings kick off today with the outlook reported earnings after the bell. analysts will want to see how

the company is growing its local ad business as it sees heightened competition from local players. yelp has been caught up in the momentum stock this year. the stock is down about 20%, hitting its high back in september. that is primarily due to valuation and controversy around advertisement retention. earnings could really change the story. set to report earnings after the bell. just to give you an idea of how the stock has traded this year, it's off just about 3.3%, underperforming the social media index this year. wilfred. >> and seema, have you been taking on board my restaurant opinions since arriving in london or turned to yelp? >> i always trust your opinion. moving on, tesla motors is running into some trouble in michigan. the heart of the u.s. auto industry. kate rogers is at cnbc hq with more.

let us start with that big investment. daimler is selling a 4% stake in tesla for $780 million. the german automaker acquired the position through an investment before the ipo in 2010. daimler says while it's satisfied with the investment, it's no longer necessary for its partnership with tesla. it will continue to buy power trains from tesla for its upcoming b-class tesla car due out later this year. the legislation supports franchise laws requiring automakers to sell vehicles through dealerships. gm supported the bill, but some auto parts companies say the ban could stop tesla from increasing its sales. michigan will be the fifth u.s. state to ban direct car sales. in all of them, tess sa operates what are called galleryies.

they have galleries or showroom necessary 21 states. tesla shares in europe are up 21 % this morning. ford is the latest company to drop pimco's total return from its environment plan. the move is expected on november 14th 1k39 company says it made the decision as a result of bill gross's departure from the investment fund. investors can transfer out of the total return fund at any time. and future 401(k) investments will be managed by blackrock through its bond index price. thank you very much. here is a quick reminder of your headlines this morning. shares in yahoo! given a boost as the internet giant's third quarter revenue beats forecast. report out of a spanish newsletter, saying 11 banks could fail the upcoming stress tests. but the ecb says everything is speculative at this point? >> glaxosmithkline is moving to rans the ebola vaccine at an

unpress dentd pace. marissa mayer defender hesitate role at the helm of yahoo!. full defails from that earnings report, next. how could switchgrass in argentina,

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cme group: how the world advances. welcome back. markets are range bound, split between slightly up and down. it's not quite the full story that we've had today, because markets opened fractionally up and then they did trade down about 0.5% on news from a spanish newspaper that possibly 11 banks might fail the stress tests. we get the results on sunday. but then they bounce back again when the ecb came out and said it's all speculation at this point. watch these results on sunday will be very, very big, i imagine we'll get lots of rumors about what the likely results

are. but we won't know for sure until sunday. germany, slightly up, italy slightly up, france and the ftse slightly down. so a split there. let's take a look at the currencies. the euro is do you know now down 0.2% at 1.269. cable is down nearly 0.35%, 1.6038. off the back of the bank of england minutes that we got earlier. we do not expect rates to go up anytime soon. >> interesting to see the euro continues to weaken. we heard from david tepper that he is short the euro. so perhaps more pain to come. let's take a look at u.s. futures. of course, after a big rally on wall street, the nasdaq and the s&p 500 posting their biggest intra day gain in over a year. just to give you some perspective on what we've seen in the markets over the past couple of days, since the s&p

500 hit a six-month low on october 15th, the dow jones transports index seen as the lead heing sector for the s&p 500, up about 7%. and the small tech index has rallied about 7%. right now, futures indicating a lower open right now. s&p 500 back above its 200-day moving average. that is seen as a bullish sign for those who watched these technicals. in terms of what to watch today, let's get to a rundown of what to watch. in addition to earnings, the inflation number will be high. september cpi out at 8:30 a.m. consumer prices are expected to be unchanged from august and rise modestly when you slip out food and energy. another busy day of earnings, abbott labs, boeing, dow chemicals, u.s. bancorp, general dynamics and nor trom. after the bell, our eyes will turn to at&t.

let's get back to yoo-hoo. that beat forecasts. just the second increase in the past six quarters. let's dive a little deeper into those numbers with yusef gali. thank you so much for joining us bright and early this morning. marissa mayers is trying to desperately reach their investors. she's trying to stress mobile and capital deployment. did that reassure you? >> i think to a certain degree. look, i think the quarter was better than feared and i think that was enough to get some people that were on the sidelines to start considering yahoo!. when you look at the numbers, they were pretty muted. but then there were, as you said, some signs of hope. so mobile, which is now

material, 7% more revenues more than doubled. you have native ads, tumbler, acquisition what they may be dining with it in 2015. so i think there are enough positive signs that, considering the valuation of the stock right now, that she still has a little more time. we had say the said before that her honeymoon period was over now that the alibaba ipo has had. but, you know, to them, we think alibaba is the gift that keeps on giving. so we think she showed -- she said all the right things yesterday. >> marissa mayer says yahoo! is committing more than $3 billion of its alibaba proceeds to shareholders. when can we expect this to increase dividends or buyback? >> don't hold your breath on dividends. they have been very aggressive buying back their stock. 3 billion, we think, is just the start. at the end of the day, i think they're going to end up buying a lot more stock. remember, they have some $35

billion in gross proceeds from the second traurch of alibaba coming their way in about 12 months. 3 billion is just the beginning. >> the stock is up 3.2% in frankfurt today. overall in the u.s., around 30% in the last 12 months. what's your call on the stock? >> we have a buy. we have a $43 target and the caveat. the caveat is depending on how the tax treatment of the $35 billion i just spoke about which they'll get in about 12 months is there is a potential for as much as $10 of additional equity. so you could see this go into the high 40s. >> yusef, thank you very much for that. youssef squali, global head of internet and media research at cantor fitzgerald. before we go, let's have a quick look at u.s. futures which are point to go a negative open, as you can see there after a big day yesterday. that's all we've got time for on

"worldwide exchange." i'm wilfred frost. >> i'm carolin roth. >> i'm seema mody. "squawk box" is next.

good morning. the s&p 500 is having its best day in a year. coke and ibm again. yahoo! results beat the street. marissa mayer says they're taking the company in the right direction. and ben bradley passes away at the age of 93. that's a pretty good number. it's wednesday, october 22nd, 2014. "squawk box" begins right now.

good morning, everybody. earnings season is still going strong. boeing, the only dow component to report this morning. the s&p will be out after. biogen, amgen are some of the names reporting today. up more than 1%, then it's at 16,614 points. an even stronger rally in the s&p 500, up nearly 2% for its best day since october 2013. we'll look at that, 1941. all of the concerns last week. >> is at