it is friday. a very warm welcome to "worldwide exchange." >> investors await ecb stress test results amid reports several banks could fail. the manufacturer of volvo accelerates after post ago surprise profit despite concerns around the long-term impact of

russian sanctions. shares of amazon sink after the online retailer reports the biggest loss ever as heavy investments continue to eat into the bottom line. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> worngelcome to the show. we'll be looking ahead to the ecb stress tests on sunday and looking back on a slew of big earnings results in the u.s. yesterday. also, seema, a couple of hot start-ups to focus on. >> two impressive companies with attractive valuations will be joining us. >> all that and more to come. but first, news of our top story, which is once again ebola. an american doctor in new york city who treated ebola patient necessary west africa has tested positive for the virus, sdr

craig spencer returned to the u.s. from guinea on october 17th. officials say he had his temperature checked when leaving africa and the u.s. and continued to monitor himself as a precaution. spencer developed a fever thursday morning, called health officials and was transported to bell view hospital in manhattan. new york mayor says there's no reason for residents to be alarmed as the hospital followed protocol. >> we have been preparing for months for this situation and bellevue hospital is especially designed for isolation and treatment of ebola patients. >> spencer is the fourth ebola case to be diagnosed in the u.s. new york city's health commissioner says since returning to the u.s., he traveled around by subway, took

an uber car and went bowling. he was in contact with his two friends as well as his fiancee who has been quarantined out of precaution. head to cnbc for full analysis. keep it right here on "worldwide exchange." we'll be speaking to experts throughout the next two hours. >> markets are down about 0.25%. they were down a bit more than that, over 0.5%. they found a little bit of strength in the recent minutes. anyway, 0.25%. we're headed for a positive close this weekend. if things close as they are, we'll be up around 0.5% in europe. that's a very, very different situation to when i was standing here last friday. so much can turn around in the space of a week. the stoxx 50 is down a similar

amount. looking across all the individual markets, a little bit of red across the board. stephane joins us from paris with more. stephane. >> good morning. the global sales for kering were quite good. the number was higher than expected. but it's only due to the stronger performance of the life science fortune and actually, puma posted for the quarter a 6% increase of its sales. but, as you mentioned, in the luxury sector, the main brand, gucci, did not fare very well on

the quarter. it follows a 2.5% decline. gucci is a key indicator. gucci makes 65% of the profits at clearing. speaking at a conference call yesterday morning, the cfo of kering said gucci probably hit bottom in terms of revenue in the third quarter, but it declined to say when the brand would probably return to growth. gucci is suffering from weakness in asia why and declining sales in small leather goods. the performance of gucci is really disappointing. the main fashion brand of the rifle posted a 2% growth in the third quarter, to compared with a 2% contraction at gucci. some of this is extremely

dynamic. good performance of other brands but, again, the problem remains gucci above the outlook for the brand and how kering is going to revive sales for this unit and as a result, kering is the wofrtd performer on the cac 40 right now. over to you. >> thanks, stephane. shares of volvo up 10%. ericsson down 1.2% after it missed expectations with third quarter operating profit 10.9 billion swedish crowns is the number. we'll be talking to the ceo at 11:20 cet. and german chemicals company

basf has cut its 2014 earnings forecast due to weak european demand. the chairman said it could weigh on the block going forward. >> we are looking at the biggest investment problem here in germany. however, at the same time, we can beef up the investments in the emerginging markets and also in the united states. there is now a climate summit in brussels. and it will be extremely difficult forestry to hit these targets, which means there's another cap on growth in europe. let's have a look at bonds. and a lot bit of strength forever equity these week has meant weakness for bond prices. yields just pick up across the board. we're at 2.6% in the u.s. still very low compared to about a month or so ago. ten year in germany, 0.88%.

gilt, 2.219%. and italy is just below 2.5%. let's look at the united states dollar. it's given up some support. whenever it does that, it plateaus. the u.s. dollar/yen paring is basically flat today, but we did ski a bit of yen weakness yesterday, 108.2. let's have a look at what that means for asian markets. and the nikkei has found some strength, up 1% today after the weakness in the yen yesterday. the negative correlation between those two is astonishing. a move one way in the currency almost always means that the equity market moves in the opposite direction. otherwise, quite a quiet day across asian markets. a little bit of a surprise to see shanghai flat because we had weak property numbers out this morning. but the market apparently ready to shrug those off.

>> earnings taking in tech land. heavy spending on many investments continue to weigh on its bottom line. amazon lost the $170 million loss for unsold phones. amazon fell more than 10% in after hours trade and the stock, as you can see, down more than 10% in frankfurt. now, let's check, microsoft has reported stronger than expected revenue in its fiscal quarter helped by sales with surface products and cloud-based products. microsoft did not discuss cloud products, but say it doubled. shares rose about 3% after hours after we got that microsoft

report. shares ul 2.6% in frankfurt. foor more on markets, we did see a rebound on wall street. let's bring in bill o'neal for wealth management research. bill, a lesh mr. your having you on this morning. a big rally on wall street as well as promising data coming out of the eurozone. how closely today will people be watching the ebola story? >> right now, the emphasis will be on those affected by the traffic, the airline stocks, etcetera. here we've seen a relatively fast rebound after the markets indicate the news. but clearly, this is something that's going to be with us for a period in terms of the regions most easily affected.

i think we will continue to see bad news. >> and i noticed in your recent note that you wrote the global growth fears are probably the biggest weight on markets in recent weeks. do the pmis change that at all? >> not that difficult. we will see something in terms of growth momentum. but we look to a better outcome for europe's own economy, some acceleration in the new year. it should be around the impact of the expansion of credit, the post aqr, also the influence of the weaker euro. you're beginning to see a sense of civilization coming through in the pm numbers and we do think up around the end of the year, you'll get some evidence of some reacceleration. but this is in perspective. we're only expecting 1.4% growth next year. >> and, bill, of course, european leaders meeting in europe at the moment. yesterday, french pmis were

worse than expected. germans were better than expected. we still have got divergence of economic performance. and how significant accompanying that is the divergence of policy belief amongst those in the corridors of powers of europe? >> clearly, the main focus for the market is still on what the ecb may or may not do. typically in the aftermath of getting qrs in the way for the weekend, the terms of the new offering of the extended target of some terms of the financing operation and also any further additional steps in abs. there's the argument in terms of fiscal and the new budget. it does look at if either italy or france are prepared to give much ground there. that is the key focus of attention of governments within the eurozone. >> and how about that data out of germany. we were just talking about how france's data kaet came in at an eight-month low.

the data coming out of germany has been discouraging, to say the least. industrial production, factory orts, but did this data yesterday tell us things could improve in germany? >> there's a case to be made through the summer months was distorted, things like that, for instance, holidays, school and i think also there's some evidence of improvement linked to that, basically a payback. so i think towards the end of the year, we should see an improvement in the position, but, again, this is very much related to the pace of global economic revival. germany is a very export oriented exposed economy. but i do think that we will see some sort of rehabilitation of opinion around the german economy. of course, the eurozone issues pertain well beyond germany, particularly the weakness of the economy in italy. >> i noticed in the recent sell-off, you said you recommend balance portfolios towards risk

assets that are sold off. which assets in particular? >> particularly we're focusing on the u.s. markets and the high yield sector. we are overweight u.s. equities. those clients who are overweight in terms of equity exposure will see it again. the buys are still towards risk apps in portfolios. >> bill o'neal, thank you so much for joining us. wilfred, coming up on the show, halo changes lanes, getting back to its black cab roots. we speak to its ceo on the group's three-year anniversary and its expansion in europe. too close to call, brazil's

presidential election is a statistical tie. which candidate has what it takes to turn the sluggish economy around? we will discuss with a couple of experts. and ericsson warnings of a slowdown in north america. we speak to the group's ceo first on cnbc in the next hour. from fashion retailers to healthcare providers, jewelers to sporting good stores, we provide financing solutions for all sorts of businesses. banking. loyalty. analytics. synchrony financial. bankinengage with us. ytics.

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annette is in brussels. european leaders are meeting. >> of course, that's an awful timing of bad news coming out from brussels. but honestly, he should have known because the uk economy is doing far better than expected and far better that's brussels had calculated. so that's mechanism. every single member state knows that it is about a based on economic growth and that determines how much you have to pay. anyway, today is the big economy day here in brussels.

all these ministers and heads of state are talking about the worsening trend of the economy here in the eurozone and in europe overall. as we were just at arrivals, i had a chance to catch up with the new swedish prime minister. i had to ask him about today on the agenda. listen. >> today -- >> are you worried about the recent trend of worsening of the economic outlook? >> i'm sorry? >> are you worried about the recent trend of worsening outlook? >> of course. we need to make sure that people can get a job and have growth and regrowth, of course, but still growth. we need to show that. >> are you talking about budget? >> excuse me? >> are you talking about the french budget? >> no, we're not discussing individual nation budgets.

but we need to see what we can do together. >> probably, it would be more in a group dinner and i think we will discuss, but without -- we will discuss diplomatically. >> france and italy are now getting money back now? >> each year, each year we have final revisions of a budget because the payments which we pay as a member of the european union are based on -- and by the end of the year, the european commission revises and some countries need to pay, some countries receive back. >> is that your message to david cameron? >> probably, yes. >> so also the uk is not aloep. they have to pay a higher contribution to the european union but at the same time, we have winners from that institutional funds one can call

that. it's getting $1 billion euro back. even germany gets a rebate of more than 600 million euros. france, that might actually help them when it comes to their budgets planning because that is money they don't have and they are still asked to have improved their budget of currently. and there's a growing sense of frustration, according to my source, that france is not doing enough and they will touch on that issue today, as well. >> annette, thank you very much. hailo is being priced out of the region by competitors like uber. hailo is launching a feature that allows you to pay for taxis that hail on the streets of london. tom bar, the ceo of hailo joins

us from new york. great you have to you here. >> thank you. >> how important is it for europe given that you're being pushed out of the u.s.? >> i wouldn't say we're being pushed out of the u.s. the uk is very important. we just opened in singapore this last week. we're not only expanding in europe, but also aig asia. >> and do you think you can continue to be successful without the u.s. or is that -- >> i don't ever roll out the u.s. there's reasons why we moved out of the market. the regulations are still up in the air. we just did not want to be involved in at the time. to put all that money into it to

compete against those with everything up n air didn't make any sense for us. >> uber is a great -- of that type of company. why should regulators or governments protect the old way of doing things, the existing infrastructure with the likes of plaque cab? why shouldn't they just allow the likes of competition of uber? >> we're definitely not against competition. we think competition is good. it makes the industry stronger. what the black cab industry is asking for is a level playing field. they do a lot to be part of the infrastructure of the london transportation market. all of the vehicles are accessible to wheelchairs. they go through special licensing and insurance. they're asking that other competitors who pick up street work can have the same requirements. either way, we think we're positioned well. we have a great fleet of black cabs in the market and we're

priced competitively. >> you say price competitive, i just moved to london and i found so far that uber seems to be cheaper than hailing a black cab, so that right saying that you're price competitive with some of the other competitors in the market. >> the black cabs in london are different from those in new york. they take three years to get their olympics. they have incredible knowledge. they get you there the most efficient and smartest way. in the back of the car, you can work on your iphone, you don't have to give directions as you're headed down the street. it is definitely worth the value. >> are you profitable right now? >> yes. >> and about the uk markets, i love the story as you say that traditional black cab drivers founded this company. the was their way to fight back against the competition and congratulations to them. but moving forward, you are taking on mini cabs and nonblack

cabs to your app, which has created quite a lot of attention with some black cab drivers. is that fair to the original guys that founded the company, you know, the black cab drivers and i suppose originally came up to try and protect themselves and now you're bringing in other competition? >> first, quite honestly, we're not moving to main cabs. we never have. that was in june when we moved into executive cars which is in london suites, there are black cabs, executive cars, mercedes, bmws, there are lower priced inside of the equation. once we explained that to our drivers, we didn't have very much in that way. >> thank you for joining us. we're going to stick with the start-up beat. coming up, we speak to the chairman of glib who is setting

out to be the hailo of uber of the beauty business. and to restaurants to take away object, on demand apps are growing fast and furious. but what on-demand app do you want to see that doesn't already exist? get in touch with us. our certainly handles are on the screen, as well. >> you see almost everything going on. i think the mobile revolution is going to bring everything you can ever imagine to your house or to you on the street. >> i would like an on demand app for delivery of fine cuisine. still to come on the show, our next guest says up to 18

lenders may not make the agrees on the europe stress tests.

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european mkets see red after the first case of ebola in new york city. the federal reserve outlines criteria for its own round of bank checks next year. truck manufacturer volvo accelerates to the top of the stoxx 600 after posting a surprise profit despite concerns around the long-term impact of russian sanctions. shares of amazon sink after the online retailer reports its biggest ever quarterly loss as heavy spending on investments continues to eat into the bottom line. and we just had the uk preliminary prints for q3 gdp, it's come in at plus 0.7% quarter on quarter, plus 0.3% year on your. that is bang in line with forecasts. a slight decline since q2, but that was, as i said, forecast. it's coming in at 0.7% quarter

on quarter, 3.0% year on year. as you can see, sterling/dollar is basically range bound today. it's just above flat. a little bit in the last minute or so, but nothing too significant. still slightly below intraday highs. but interesting following, seema, wed better than expected unemployment, worse than expected inflation and this has come in line. >> absolutely. for a while, this has been seen as auto bright spot. the uk economy, 3.4% above the peak in the q1 of 2008. that is the longest uninterrupted run of growth in three years for the uk. >> absolutely. so all this says about the growth growth, the uk remains one of the development world bright spots. sterling is only up 12 basis points on the day. let's move on to european market. how are they doing so far today?

they are just down on the session. they were down more than that on the open. this is a slight correction i would describe it after heading for a gain in the stoxx 600 over the course of the week as a whole. today, all of the major indices are in the red. for a gauge of what's happening across the region, down 0.4% and down for 30 days. as you can see, just at the end of pick up over the course of this week, bouncing back from what has been a tough 30 days. let's have a look at bonds. the story as equities have been relatively strong this week has meant the bond prices have been weak, allowing yields to pick up a little bit from where they were last week. 2.25% on the ten year and germany just below 0.9%. the european central bank has played down speculation over the outcome of this sunday's stress test which will be conducted by the european

banking authority. 123 banks will be tested with 30 subject to the ecb asset quality review. at least 11 banks will fail the health check. three in greece, three in italy and two in austria will flunk the tet. we spoke to a number of ceos and asked whether they feel confident about the growth. >> we feel confident to go through without major problems. but, really, for the european banking sector it will be -- there's going to be a lot of transparency around that. i don't think we believe it's going to be something that's going to end up with a lot of volatility in the markets, but i think in general the transparency will be helpful. >> i think what we did was

basically position ourselves walking into aqr at a bar with our best competitors in the market. but right now, i'd say that we are optimistic about our abilities to pass this given the size of the offering. >> so what can we expect from these bank stress tests? joining us now, phillipe from pimco. great to have you in studio. you write there is high conviction, over half of the banks are under review. are you overly optimistic? >> no. i think it's pretty clear at this stage the profits that started a year ago, all the large banks that may have been debatable a year ago, those we're seen a big capital increase earlier in the year. so i think everybody has been

enough time ahead of the exercise. so i think what will be more interesting is the category of banks that only narrowly pass the tress tests and how the ecb looks at those. >> lots of banks, whether it's ahead of the aqr or not have been strength.ing balance sheets for a number of years now. is that the only factors the ecb are looking at? >> i think does the all mark using a 5.5% mark for the stress test and that is what will drive, whether you're above or below the mark. now, having said that, then they will have to either set assets, shrink their balance sheets or raise equity. for many of those bank, they should be able to do that. >> the banks have to maintain a capital buffer of at least 5.5%. is that a feasible request given the possibility of europe

entering another recessionary period? >> the stress test is a projection of the duration in the macro outlook. so what you are test, this mark is the ability of banks to resist the sharp deep recession, a big collapse in financial market, etcetera, etcetera. >> dprooes, for example, hoouj fluctuations in the ten-year yield price and ten-year bond over the last week or two. has that been because of fears of banks failing the aqr coming up? >> purely related to the move in the government bond markets and politically related to the agenda and fields in the election especially next year. that could bring a more radical left party to the table and that could trigger all orts of consequences. so it's nothing to do with the banks in greece.

the banks in greece, some of them are looking at the numbers, quite wobbly. it will not be very, very large and institutions at that rate about 9 billion euros of equities this year on the markets. it will either get wiped out because of government state aid or capital. >> so the majority of the banks pass these stress tests. what is next? will we finally see lenders put money to use and give loan toes smaller corporations in desperate need of cash to expand? >> i think what the stress tests will contact is that the european banking system is fit to survive. yoj it will conclude that it is fit to be a trigger for unleaching a lot of growth in

the eurozone banking system. i can what you need to see after this is the policies from the ecb which have been undertaken. i think it is the first time you've seen something quite coordinated to reduce the funding of banks and officially profits bond purchases as well as qe next year. but something more to be done. the stress test is, again, something that will tell you whether you're still out of hospital or in hospital. >> we'll leave it there. phillipe, thank you for joining us. and join us on sunday for a especially live program where we break stress tests results live in frankfurt. louisa bojesen will take you through the numbers from 12 to 2

cet. in march, the vacation rental site is discussing a possible employee staff sale. reports say airbnb is discussing the sale with investors. now a $13 billion valuation would maybe airbnb worth more than several publicly traded companies including hyatt and windham. >> the sellers of pretty much anything, the latest amongst these is new start up on demand app priv. thank you so much for joining us. >> a pleasure. thank you very much for having me. >> where are you in your growth strategy right now? >> basically, we started in london in new york last month and we rolled over to langs in september. and planning to open london on the 21st of november. >> and what's unique about the offering of prizv?

is i the sort of pulling of range of different services? >> absolutely. we are not only a beauty app, we are a platform that we can add everything. the share is for the next step for thanksgiving in new york. that is something that the platform is very strong and very well built. obviously, here, what we do in europe and what we do in either state in our growth in strategy is bring beauty to your doorstep at any time anywhere. >> i'm interested in the fitness offering more perhaps than the beauty offering. how can you offer an appearance of something i'm not a member of? >> that is a very good question. i'm training like two or three times a week. and the gentleman, the strengther is coming to my office only every two days. and it's absolutely amazing.

>> dournlg it's cost-effective for the average person out there to use your service? >> i think it is. our price sg to bring you luxury into your home. >> and what is it like raising money right now? i spoke to start-ups who say it's tough to raise money right now given the slowdown in europe. is that what you're seeing, as well? >> not at all. we will close with $2 million last week. so everything is perfect. >> and just a quick one, do you -- the date you're gaping for people? in a couple of years, you can sell and be more valuable in remaining service? not only that, we own an amazing database. >> a it is a pleasure of having you on the show. thank you very much for joining us. >> thank you.

>> now, we've been asking you what on demand app would you want to see that doesn't already exist? get in touch with us, world would it ad cnbc.com or @cnbcwex. moving on, too close to call. brazil's presidential election is a statistical tie with just two days to go before the voting day. we discuss after the break. you can bring back a lot of things from a trip around the world. but you can't always bring back customer data. because many customers don't like it when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be. today, there's a new way to work and it's made with ibm.

xwloe r. the margin of error in brazil means the race is still too close to call. investors hope it would allow reforms needed to help brazil get back on track. edwin joins us now. looking for things from the outside, it seems clear that the economy has changed things significantly. unemployment is low, there's been increases in minimum wage.

that means a huge portion of the electorate affects this. >> the headline gdp growth looks terrible. we haven't had growth above 2% quite a while in brazil. unemployment is quite low. we just had the proof from last month with 4.9%. the unemployment levels from brazil and duma is doing well because of that. >> are you surprised duma is leading in the polls? we've seen the opposing party promising change, promising hope, that person tends to lead, similar to what we saw in indonesia. why do you think duma is holding on to the lead? >> i think it's the headline gdp growth and the hm unemployment data. we'll rages continue to go up.

you've had access to credit. there are a lot of individuals who feel thief benefited from the past decade under pt rule. >> edwin, i suppose a lot of the market is suggesting we want the pro business nevesh to come through and win and that might give the economy a boost going forward. how much does the headline rest on investment for quite a number of years, meaning whoever wins the election is going to find it very, very hard to turn that trend around? >> that is a very good question. investment low has fallen to a shocking 15.3%. brazil is a very closed economy. exports to china, only 2% gdp. the reason it's not growing is because of investment or lack thereof. whoever comes in, that is going to be a job task number one is

to reinvigorate investor sentiment. and the prospects of doing that are greater of aneves administration. >> some would argue the fiscal stimulus policy are leading to a rise in debt instead of a rise in growth. do you think that is the truth and do you think her policy plan is sustainable? >> you see fiscal spending go up. this has failed to generate growth during the three plus years of dilma. it is very much a failed strategy. brazil needs to approach it in a different way in terms of growth. it needs to bring in the private sector again. to get back to, say, 19% growth, that can happen if neves were to win. but to get to higher levels of

gdp, about 24% by the administration. we're going to need structural reform in brazil for that to occur. >> hopefully the new leadership will be able to bring that structural reform that's needed in brazil. edwin, thanks for your time. >> thank you. and an american doctor in new york city who treated ebola patient necessary west africa has tested positive for the virus. thursday morning a fever developed and he called officials and was transported to bellevue hospital in manhattan where he's being treated in isolation. chris paloney is outside bellevue hospital with the latest. chris. >> hi, seema and wilfred. that doctor has been back in the united states for a week after treating patients in new guinea. now city and state leaders are trying to reassure the public that they are not at risk.

that doctor is 33-year-old craig spencer who works at the hospital. around noon on thursday, he called the organization he works for to report that he had come down with a fever. that fever was 103 degrees. he was mafkly whisked here to bellevue hospital in midtown manhattan. a team has been prepared for this inventorilty that a patient would come here. a hazmat crew wrapped him up in a full protective suit and brought him to the hospital where he is being treated today. he went bowling with a group of friends on wednesday night. his fiancee is now also in isolation here at the hospital. she had not showing any signs of ebola. two other friends with the group are in violation at this point.

president obama has been briefed on this situation. he has spoken with the governor of new york and the mayor of new york city. and a team for the centers of disease control is coming to new york to monitor this latest patient. >> new york city is, of course, the financial hub of the u.s., arguably of the world. how do you think the city will be reacting to this case of ebola? do you think there will be fewer people going to work, less business activity? what are you hearing from the ground in new york? >> new yorkers are a pretty resilient bunch. i think for the most part, most pokes here are going to take this all in stride. the initial reaction both here in the hospital and around dr. spencer's apartment, a lot of it was met with shrugs and a lack of surprise. but there are some people who are going to, really, be anxious about this. that is why city and state leaders are doing all they can to reassure the public that other than those people that

spencer was with, there since a great risk. they did mention that he rode the subway on wednesday. he took a private car service and they want folks here to know that riding the subway is safe, that ebola just isn't transmitted that easily. >> chris palone, thanks so much for your report. reports suggest japanese automakers are set to release reports for 2014 despite strong demands. >> thank you, wilfred. the nikkei report its first half earnings estimate for carmakers today. toyota's offering profit rose 4% on the year to $12 billion. as for the domestic market, demand for this period was sluggish, falling 5% due to the construction test site. because recovery in the u.s. boosted sales, especially of sport utility vehicles. the weaker yen provided support, given that half of the vehicles

produced in japan are exported. the weakening japanese currency alone lifted the company's profit by over 0.5 billion. a weakening yen provided a tailwind for other automakers, too. nissan figures seen climbing 17%. >> sticking with global news, ukrainians will go to the ballot box this weekend to vote in parliamentary of elections. billionaire investors george soros has been involved in ukraine since 1998 and annette asked him for his take on the country. >> it's really up to russia, up

to putin. or whether he views active warfare because he, at the moment, has the upper hand. because the russian army confronted by the ukrainian army, the ukrainian army is no match for russia. >> what do you think about developments in the next few months? will russia bow to european pressure? >> europe, it needs to act, get its act together. and be more active in helping ukraine fight for itself. ukraine wants to be part of europe.

effectively, an attack on ukraine is indirectly an attack on the european union. and it's certainly in europe's duty and interest to enable russia -- ukraine to fight for its independence. >> what might be the next steps of russia of mr. putin in the ukraine? >> i think that he is probably going to wait and not renew active were fare. because of the fear of additional sanctions which are hurting russia. and wait for the winter.

and to see if ukraine can be it may collapse for lack of support. and that's why i wrote this article to wake up europe, to warn europe that they have got to be more active, proactive, enabling ukraine to fight for itself. as europe counts down stress tests results on sunday, the fed has laid out scenarios. the fed will put lenders in situations with the top 10%. oil prices hit $110 a barrel. the main difference of this year's test is a larger widening

in corporate bond spreads and higher crude prices. the fed runs stress tests on 31 banks with at least $50 billion in assets who must have met capital plans by january. new home sales for september will be out at 10:00 a.m. bristol myers, colgate, ford, procter & gamble and upstairs are all reporting before the opening bell. it's been a wild week for markets. take a look at u.s. futures as we head to break. when change is in the air you see things in a whole new way.

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welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. a doctor in new york city has been diagnosed with ebola. ericsson profits slip below forecasts as the equipmentmaker warnings of a slowdown in north america. we think the group's ceo first

on cnbc in 20 minutes. shares of amazon sink after the retailer report its biggest ever quarterly loss as investors continue to eat into the bottom line. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. a big rally for wall street, wilfred. that case of ebola in in, weighed on investors sentiment sent stocks slightly lower. it's interesting to see that last week it has hard to find knit bright spots. this week, a major rebound for markets. >> absolutely. we're due a positive close for the week in both european and u.s. equities. but i think it's really interesting what's driving that in the u.s. and it has been earnings this week. it's the macro, the positive earnings results leading the markets higher. whereas in europe, the focus is

still very much on the stress tests coming on sunday and what that is likely to mean for policy going forward, rather than the results of individual companies. >> absolutely. on that note, let's take a look at u.s. futures, an indication of how markets will trade. when we open, the s&p 500 down about 1 points. the dow jones up fractionally and nasdaq down about 7.5 points. that has to do with amazon and its disappointing earnings report weighing on the tech-heavy index. now a look at the cnbc global 300 index, chinese gdp as well as inflation data, ukraine and brazil elections, a lot for investors to digest. the index, though, trading down just about 1.3 points on the day. diving into european markets, uk gdp did come in line with expectations at 0.7%. how are markets responding? a mixed day of trade. the ftse 100 down about 17 points from the big losers

there. tesco continues to weigh on the index. the xetra dax, german markets, actually, the underperformer today, down about 0.4%. the cac 40, the french markets down about 17 points. remember, yesterday pmi data, manufacturing data at an eight-month low for france. italy, though, a bright spot up just about 12 points, trading at 19,449. of course, this weekend, it will be all about the bank stress tests. that will be what markets respond to on monday, wilfred. >> absolutely. and i think it's been a positive week for european equities, as you just pointed out. a little bit of weakness today, that's probably the head of the uncertainty. while it has been a positive week for equities, that, of course, means the company has been a slightly negative week for bond prices. the yields, therefore, ticking up just a little bit. 2.2r5% we've got on the u.s. ten-year. it is quite a big move since last wednesday when we flirted with going below 2%.

still, yield compression over the last month or so. we've got 0.87% on the ten-year in germany and 2.22% on the ten-year in the uk. let's have a quick look at forex. as we've been saying, the last couple of weeks has just seen the u.s. dollar flirting with giving up some of its gains in recent months, but it seemed to find support as of when it's gone three. the euro/dollar, 1.2651. the yen is at 108.4 against the u.s. dollar. the u.s. dollar just weakening a bit today. aussie/dollar, 0.8774. and cable at 1.6057. the.top story on our radar today, an american doctor in new york city who treated only patients in west africa has tested positive for the virus. dr. craig spencer returned to the u.s. from guinea on october 17th. he had his temperature checked when leaving africa and the u.s. and continued to monitor himself as a precaution.

he developed a fever thursday morning, called health officials and was transported by a specially trained unit to bellevue hospital in manhattan where he's being treated in isolation. new york city mayor bill deblasio says there's no roo reason for people to be alarmed as the hospital followed protocol. >> we have been preparing for months for the threat posed by ebola. we have clear and strong protocols which are being scrupulously followed and were followed in this instance. and bellevue hospital is especially designed for isolation, identification and treatment of ebola patients. >> spencer is the fourth ebola case to be diagnosed in the u.s., new york city's health commissioner says since returning to the u.s., spencer traveled by subway, took an uber car and went to a bowling alley. he was in close contact with two friends as well as his fiancee who have been quarantined out of caution. joining us now is brian

reynolds, chief market strategist. brian, to what extent has ebola been weighing on markets? >> it weighs a little bit on the stock market, but it hasn't had any impact on the credit market. we know that there's a vaccine developed ten years ago which never got tested. unfortunately because there's not a large market. now they're rushing it to market and so ebola will probably be a thing of the past within a few months. but the big thing is that we had a panic in financial markets a few weeks ago. and when the stock market panicked, the credit market shuts down for a while because buyers wavent to see if the turbulence creates a better buying opportunity. once the selling runs its course, the credit market opens back up and this week it opened back up in a big way. we've done over 9 billion a day in new corporate bond issues. there hasn't been any hits in the markets over fears of ebola. >> i'm interested in this and as you say, the credit book is

going to intensify again with one of the lines in your recent notes. let's focus on that. the situation for credit markets is so different in the u.s. as it is in europe. i wonder whether the stress tests results coming on sunday will change that in europe and make it similar to what's happening in the u.s. >> i don't think that the stress tests are a very big deal. you're right, it's very different here in the u.s. because our public pensions used to make 7.5%, which is an insane number. but while they do that, at least through an incredibly intense credit boom, just like the ones we saw in the 1990s, only this one is different. they're bringing in more money from their cities and how to contribute to to them. so in the three weeks of panic that we saw in the stock market, we saw over 20 pensions put mother money into credit and that money hasn't even hit the credit market yet. in a credit boom, there's not enough bonds to go around. so even if some banks in europe

fail the stress tests, given that we're in a credit boom, we'll be easily able to shed some assets to go out and raise capital. to me, that's not a big issue. let's focus on this week's market performance. the s&p 500 and the nasdaq on track for their best weekly performance since january 2013. are stocks going up based on improving fundamentals, like earnings, or are these traders coming in taking advantage of the drop in prices? >> well, it's because of financial engineering, not because the fundamentals are terrific. what happens is when we get into these panics, the buybacks that company do which are outsourced through the trading, they shut down. they shut down until the panic runs its course and then the wall street trading desks ramp the buy back back up. so buybacks took a hiatus through this panic, but in the first three days of this week, we saw over 11 million in new buyback announcements.

as the credit market returns to its full rigger, the buybacks are resuming and that's going to take stocks higher over the next number of months. >> what do us over the last couple of weeks, therefore, that the biggest lesson has maybe been that in the u.s., investors think there's still a lot the fed can do if necessary to step in and help the economy whereas in europe, for various reasons, that's mott the case? >> well, i think it's more due to the fact that the pension needs to make 7.5% and they're pouring more money into the credit market, which is why we're going up. but stock investors don't believe that, so there is a panic at the end of qe1, there was a panic at the end of qe2, and now we've had a panic at the end of qe3. but the credit boom has persisted through the end of all this quantitative easing. so really the stock market has panicked over it and the panic produced tremendous buying opportunities. then they're fourth to trade stocks higher than they sold lower because it's the financial

engineering that takes them back up. >> the equity mktsdz may be stabilizing over the past few days, but the moves we're seeing are still a concern for traders. how are you factorsing in that with investors? >> well, as bullish as i have been on stocks, i've been a bear on commodities. i pointed out a year ago that the structured commodities, the subprime with commodities, we had a commodity bubble from '08 to early 2013. now we're on the back side of this bubble. and there are some trap doors along the way with structured finance. there is another trap door above 1200 and tlt there's another trap door below 75 on oil. when that happens, it can be a very short-term negative for market because people just don't

understand what's going on. but in general, when you get a collapse in oil prices, it may be a short-term negative for financial markets and it acts as a tax cut for the economy and that's generally a positive. >> absolutely. we'll see if that translates into higher consumer sentiment. brian reynolds, thanks for your time. let's give you a rundown of what to watch this trading day. september new home sales are out at 10:00 a.m. eastern. forecast to drop by nearly 7% to an annual rate of 469,000. bristol myers, kol gale-palmolive, ford, procter & gamble and u.p.s. are all set to report before the opening bell. and amazon had a much worse than expected.drop as heavy ad spending continues to weigh on the bottom line. amazon loss includes a $117 million charge for unsold fire smartphones. the company is expecting slower

sales growth than analysts were expected in the fourth quarter. amazon fell more than 10% in after hours trade. it's down just over that amount in frankfurt today. a different story, though, for microsoft. microsoft reporting stronger than expected revenue, helped by sales of its windows phones, surface clouds products. sales of commercial products and cloud services doubled. profit fell 13%. but that was largely due to charges related to layoffs announced in july. shares rose about 3% after we got microsoft's better-than-expected earnings. the stock is up about 2.7% in frankfurt. now brazil's president russeff is still the odds on favorite going into this weekend's elections, but could a last-minute upset be a win for investors? we'll tell you more after the break.

welcome back. these are your headlines. u.s. futures follow european markets into the red after yesterday's dip on ebola scares. investors await the european banking stress test results on sunday as the fed outlines criteria for its own checks next year. plus, amazon posts its biggest ever quarterly loss, weighing on the online retailer

shares. the uk faces a 2.1 billion euro surcharge from the eu. france, mean while, is set to receive a $11 billion rebate. this an awkward moment for david cameron who is under a lot of pressure from euro skeptics at home. annette was at the european summit arrivals where uk prime minister david cameron was due to address the press. but after last night's setback, this is what happened. >> mr. cameron, just one quick question. >> annette joins us now. she had better luck with the man who heads up the euro group. annette. >> thank you so much. mr. cameron actually didn't really have a face that showed a lot of joy this morning. he rather looks like a man who had a bad night. obviously, the news wasn't

really great for him and, above all, for him at home. but let me also talk about what happens here. we have, of course, the european economy weighing on a lot of markets, weighing on shares, but here, your european leaders and eurozone leaders are gathering in order to discuss what to do to get growth back on track. and, of course, there's a lot of talk about structural reform we had, as well, during the recent summit. but it seems to get more and more discussion when it comes to the solutions they need to put in place. i had a chance, aus mentioned, to catch up with someone else who was more willing to speak. take ta listen. >> i think the outlook is still moderately positive. we have more growth this year and we are expected to have a little more growth even next year. we have to step up our efforts

certainly on the structural reform side which makes europe more competitive and member states have a lot of work to do there and we hope they will discuss that today. >> france and italy seem to be quite reluctant to do something which is harmful or painful for big parts of their season. how are negotiations going there? >> well, i was struck that the new governments both in paris and in rome are ambitious in terms of reforms and modernizing their society, the government and the economy. and some reforms are being pushed through, both in paris and in rome and i think that's crucial. let's talk about that today. the things we can do to pick up growth, the potential growth in the eurozone has to become larger. and there are many opportunities. let's work on that. >> so france and italy, they have the same problem like mr. cameron at home. they do face a position and also

opposition some rather populist party, be it marie lepenn in france or pepe grillo knitly. some people are arguing that this government, which is now in place, is really the last chance for both countries to push through reform because there is a growing sentiment among the populations of those nations that they don't want to have more austerity. so, you see, it's not as easy as to say that they're not willing to reform, but they also have to ponder whether they would not actually play in the hands of more populist parties at home. with that, back to you. >> annette, thank you very much. . the brazilian election will be a focal point for investors this weekend. right now, brazilian president dilma rousseff holds a small edge over aecio neves. the margin of error means the

race is too sticlose to call. the market has been on a virtual roller coaster ride in line with changing polls. investors hoeld hope neves will help rusher in the reforms needed to get brazil's economy back on track. you can as we watch these polls, neves gaining momentum. we have seen the markets gaining higher. but now that rousseff is in the lead, stocks have been dipping lower. >> yes, indeed. ericsson profit missed forecasts as the mobile equipmentmaker warnings of a slowdown in north america. we speak to the group's ceo first on cnbc after the break.

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welcome back. let's take a look at u.s. futures after what was a big rebound on wall discreet. ebola fears did shake stocks a little bit. but still, the dow jones industrial ending up by around 213 points, the s&p 500 and the nasdaq seeing gains of well over 1%. right now, though, futures point to go a lower open. of course, we're going to continue to watch the story on that patient in new york city who has tested positive for ebola. let's take a look at today's other top stories.

freezer has approved an $11 billion buyback. that's in addition to the 11 billion remaining on its current quarter. pfizer has also cut its full year revenue forecast, fighting the looming generic for its pain killer celebrex. pfizer so far in frankfurt trade up 2% today. in other corporate news, lockheed martin has reportedly struck a $4 billion deal with the pentagon for more f-35 fighter jets. reuterss say the contract will lower the cost of the claims by about 3% and included jets to be built for the u.s. military, the uk and other allies. both sides had expected to reach a deal this spring, but talks slowed after an engine failure on an air force jet grounded an entire f-35 fleet for weeks. lockheed would not cop firmed the reports, but tells cnbc it's

still in talks with the pentagon. vacation rental prices for possible employee stock sales. airbnb is discussing the sale with investment and proceeds will go to employees rather than raising new capital for the company. a $13 billion valuation will make airbnb worth more than publicly traded hotel companies such as hyatt and windham. on-demand apps are growing fast and furious. what would you want to see that doesn't already exist? get in touch with us by e-mail, world would it@kr worldwide@cnbc.com. seema, you said earlier he would like to see a chef app. have you thought of another one? >> on demand masseuse. how great would that be? >> that might be available from

the company we spoke to earlier. >> that's true. >> he was talking about personal trainers that come to your home and various other services. >> anything to make our life more efficient, hey, i'm all about it. >> absolutely. now, in other news, amc network is buying a nearly 50% stake in bbc america for $200 million and will take over operational control of the channel. bbc america, which is available on cable and satellite is an in million u.s. homes. amc is home to shows lying the walking dead and madmen. taking a loot shares of amc, they were slightly higher the last time i checked. atlantic city may have another casino closing doors. the trump advantataj mahal will

close. he says he wishes he never answered the phone when the company called him about it. the taj mahal would be the fifth atlantic city casikcasino to cl this year. and still to come on the show, microsoft is on cloud nine after topping street expectations. we wrap the numbers next and take a look at u.s. futures point to go a lower open after we did see stocks rebound in yesterday's trade.

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it's friday. welcome to "worldwide exchange." i'm seema mody inspect. >> and i'm wilfred frost. >> yesterday's market are lower now on new reports of ebola. the federal reserve outlines criteria for its own round of bank tests next year. shares of amazon sink after the online retailer reports its biggest ever quarterly loss. wall street is already

responding. it cut its price target to $395. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and if you're just tuning in on this friday morning, thanks for joining us on "worldwide exchange." here is a look at how markets are trading in premarket trade. the dow, nasdaq and s&p 500 all lower after a big rally on positive news from dow component caterpillar. plus, promising data out of the eurozone helping boost investor sentiment. ebola fears did shake stocks a little bit as we ended 30s's trade. it was a positive session on wall street. if you take a look at the cnbc global 300 index as well as the european markets, trading in negative territory. we did get that initial read on gdp in the uk at 0.7%. that was inline with expectations. but stocks responding negatively. we're looking at the ftse 100

trade down by around 20 points. that manufacturing data we got out yesterday was, of course, in focus with investors. france reporting an eight-month low in terms of pmi manufacturing activity. but germany, better than expected. now investors are trying to debate whether the situation in germany is as bad as some have been forecast b. germany, down by 20 points. france down 17 points. the euro stoxx 50, we have been looking at the euro fluctuate this week. much of that having to do with the conflicting economic data coming out of the eurozone. right now, trading lower, falling european markets by around 7 points. wilfred. >> an american doctor in new york city who treated ebola patients in west africa has tested positive for the virus. the fourth case to be diagnosed in the u.s. cnbc's meg terrell joins us from outside new york's bellevue hospital with the latest. meg. >> good morning. we know that dr. craig expenser, who is 33, was working with

doctors in new guinea. we know he completed his work on october 12th, left on the 14th and arrived at jfk on the 17th. it wasn't until days later that he started to feel sluggish and then yesterday, came down with a fever. now it's important to note that because he wasn't symptomatic while he was traveling, health authorities say there was little risk that he spread ebola when he was traveling or in the gates until yesterday. he is a doctor who was well trained, looked like he took all the right steps. they were careful in transporting him to the airport -- to the hospital wearing personal protective equipment, put him right into isolation here at bell view. and in the news koshs last night, new york governor andrew cuomo and the mayor de blasio emphasized that the city is ready. >> we have been preparing for months from the threat posed by ebola. we have clear and strong protocols which have been skrup

yulsly followed and were followed in this instance. >> the riske to new yorkers is very, very low. he was not out and about while he was feverish. they were in the process of tracing hi contacts. they identified four people who came into contact with him, three of which were close contacts. the fourth was an uber taxi driver. they say he was at low risk. the risk is very low. it's important to note that in dallas, where thomas eric duncan was treated, there were 48 contacts identified, none of whom came down with ebola. it was two health care workers who did get ebola. that, of course, is a concern here, but bell view says it's well prepared, has been working

on it for months. back to you guys. on to corporate news, garnering the attention of wall street right now, microsoft strong phone and tablet sales contributed to microsoft topping wall street expectations. joining us now is norman junk, senior equity analyst at morning star. norman, shares of microsoft upped about double digits since nadella became ceo. do you think expectations are overly optimistic on what he can achieve as ceo of microsoft? >> it's a good question. i think expectations are roughly in check. a lot of what aes done has been strategic tinkering. you're seeing a lot of results now in this last quarter. it's still early, but you're seeing some of the cloud initiative starting to pay off. really a pillar of strength we saw with their promotional business. data centers were strong, bucking a lot of the negative

tech trends that we saw starting off with ibm earlier this week. >> microsoft has been seen for years as an income play, a stock that you buy because of its attractive dividend. its recent earnings reported it's actually now perhaps a growth plate. do you think that's changing? >> you know, look, microsoft is kind of, in the last few years, the growth tenor for this company has always been the commercial business. it's still a double digit grocery store. if people concentrate on that business, yes, it will continue to be a double digit grower for the next few years. is there a lot of upside from here? probably not. it will continue to grow double digits on that basis. i think a lot of the growth is probably priced in for now. >> and let's talk about the consumer side of the business, in particular, its push into devices. is that something that they can really gain traction on? can they catch the likes of apple and samsung or is it a bit of a futile move?

>> it's not necessarily futile, but it hasn't paid off yet. surface had about $900 million in tales which come out to 750,000 tablets. that's a tiny dent in the market. but eats less about surface tablet sales and more about what they're doing licensing wise which allows em to build cheaper tablets. you'll have some tablets coming out for christmas probably in the $199 price range which should help compete better with the android tablets which are taking market share from everyone else. >> what's your call on the stocks? >> right now, we have a fair value estimate on the stock of about $46. so i guess we see it as a hole right now. we see it as still a core technology holding. it's a wide nosed stock. this is a company that has very

large and sustainable competitive advantages. so given the right discount into fair value, we think it's still a hold. >> we're going to leave it there, norman young, senior equity analyst at morning star talking about microsoft. coming up, the fed's detailed guideline for its next set of stress tests, we look at the giant scenarios against what those banks will have to account for, next.

the swedish company missed analyst forecast from operating costs due to development costs and currency hedges. joining us on the phone with the ceo of ericsson. hans, overall, profits declined somewhat more than expected. it's a wonderful space to be in at the moment. but is competition killing the party? >> no. i think that we have gradual improvements in our profits, but in growth. and if you look at the quarter, as i said, 9%, and, of course, we have a slight decline compared to last year when it comes to our profit levels.

then you need to understand we are re-evaluating all our hedges for the future, that it's not realized yet they were taking out a billion swedish crona on our bottom line. it's improving despite that billion that we're talking revaluation of our hedges. so i think we're doing a pretty decent job to improve our core business, going into new areas. this is a transformation ericsson is doing to be relevant for our customers and i think we're on the path of doing that. >> hans, i see ericsson posted growth in the middle east. china, india and russia, can those markets help ericsson off set the weakness going forward? >> i think it's an excellent core. north america has been a generator. ericsson has a very good position. this quarter, compared to many other quarters, we did not have growth. but that was compensated on many other regions, middle east,

india up 66%. 11% in latin america. it shows a little bit of restraint for the company. we're in 180 countries and we can compensate for a small decline in north america, which is by far the biggest mobile technology market in the world. hans, a bigger picture question for you now. this is huge growth in smartphones, of course, over the last five years. but looking forward to the next five years, which subsectors of the market is going to be able to claim most of the profits? is it telecom companies that you're involved with and yourself or is it content owners or the smartphonemakers themselves? >> excellent question. if you take this industry over 20 years, it has moved into different parts of it. in the beginning, it was vendors like ericsson. then operators with another big portion of the profits. now it's the hand set.

clearly it's going to develop in the next tief to ten years. everything was designed for a voice call and we know that that is going to be the smaller service on the net, the internet of things, connectively for cars, for other industries is, of course, going to drive. and who is going to be there depends a little bit who is going to be taking this -- the previous positions to be there and have the competitive advantages. and i think ericsson has a great potential to be part of that whole transformation. >> how much did currency head winds play out on earnings this quarter? do you think the stronger dollar will continue to be a headwind for your company? >> of course. this quarter was one of the biggest changes that wheelchair seen in a long, long time. that's the only major exposure ericsson had given that we're in 180 countries. but, of course, that swing helped us on the top line. as we are also hedging our business in order to smooth it out, that's the revaluation of all those contracts was negative

with a billion for our bottom line, 1 billion swedish cronas. that was a big swing in this quarter. i cannot predict where the currencies are going. but in general, we have these on very good control. we're going to see what's going to happen during the fourth quarter. >> hans vestberg, thank you for joining us, ceo of ericsson. and one stock in focus today will be pfizer, the drugmaker authorizing a new $11 billion stock buyback. this as in addition to the 1.3 remaining in the company's buyback program. the stock has been on a tear, witness ago five-day winning streak, the first time since july. the stock close to breaking its 50-day moving average. something that technical traders will be watching. >> absolutely. and health care has been a strong performer throughout the year. now, the fed is laying out guidelines for its next round of

bank stress tests. they get set to release results of the first round of tests this weekend. bertha coombs joins us live with more on that story. >> good morning. it's just going to be the fifth round of stress tests in the u.s., which were introduced following the financial crisis. the fed for 2015 it will put banks through severely adverse scenarios, where unemployment jump toes 10%, the stock market falls by 60% and oil prices hit $110 a barrel. the difference from the past year is a larger widening in corporate bank spreads. the tests, which are required under the dodd frank financial reform law are conducted on the largest banks with $51 billion in assets. eight of the biggest banks, including citigroup and bank of america will also have to test for counterparts and six that

have large trading operations will have to test for a global market shock the fed has yet to outline. last year, citigroup, bancorp and the u.s. operations of hsbc, santander and rbs all failed the test. bank of america was forced to halt plans to raise its dividendes and a stock buyback. after discovering it had reported dollars 4 billion more in capital than it originally had. >> banks will submit results to the fed by january. last week, the fed gave banks instructions on how to improve their internal tests. it's one of those things that are ever evolving. hopefully that scenario never comes to pass. >> absolutely. definitely a big move. we'll be watching that closely from cnbc headquarters. don't forget to join cnbc on sunday for a special live program where we break the stress tests results and price

live to the conference in frankfurt. louisa bojesen will take you through the numbers from 12:00 to 2:00 cet. u.s. futures following european markets into the red after yesterday's dip on ebola fears. investors awaiting the european banking stress tests on sunday as the fed outlines criteria for its own checks. plus, amazon posting its biggest ever quarterly loss.

european markets recovered a little bit of ground in the last couple of hours.

the stoxx 600 due to finish the week about 2.5% in the green. that meaning a little bit of a correction today, also ahead of the uncertainty of the results of the ecb stress tests due on sunday. also a reminder of our top story that moved u.s. markets yesterday. an american doctor in new york city who treated ebola patients in west africa has tested positive for the virus to be diagnosed in the u.s. >> and, of course, ebola fears weighing on investor sentiment. one of the reasons stocks ended off their highs of the day yesterday. right now, we are looking at u.s. futures trading lower on the day. we're going to focus a lot on the nasdaq 100, as well, which was on its best week since december 2011. but that could, of course, change after amazon shares are expected to open drastically lower following its disappointing earnings report. we're looking at amazon shares down about 10% in frankfurt. now let's give you a rundown of what to watch this trading day, september new home sales are out at 10:00 a.m. eastern, forecast to drop by nearly 7% to

an annual rate of 456,000. earnings will continue to take center stage. we're hearing from bristol myers, colgate, ford, procter & gamble as well as u.p.s. reporting earnings before the opening bell. it is an action packed income, couple of hours. >> amazon reported a much wider than expected third quarter loss, despite a 20% rise in revenue as heavy spending on its many investments continue to weigh on the bottom line. amazon includes a $1700 million charge for smartphones. microsoft reporting stronger than expected revenue in its quarter helped by sales of its window phones, surface tablets and cloud-based products. >> now joining us from the cme is michael w. berker, founder and president of berhen hill

partners. michael, can we focus on the earnings coming out and trying to get out about all the noise around the edges? >> i think it's been like that for the last three to six months, but in particular, you do hit on a good point there, which is it is time to start looking at the fundamentales and truly the commodities nkts giving up the biggest lead on how the fundamentals have led us. you know, one of the things i like to bring up is the way that the s&p has rebounded in one of the more miraculous ways i've ever seen, getting through a 200-day moving average and abruptly almost yesterday settling above the 1 00 day at 1961. this could be an incredible week if we get through 1966 and finish up a little higher. but anyway, back to that reference on commodities, you know, gold right now is still up about 2.5% on the year with silver down over 11. i think the weakness that we're seeing in the silver market reminds me a little of the way the s&p showed opportunity right now. and i would like to be on that

precious metal right now because i think it's way too oversold. >> michael, you were touching on the sharp rise we have seen in the s&p 500. trading now above its $ 00 day moving average. but that begs the question, have stocks moved up too fast? >> well, the funny thing on that is, yes, they have. technically, things are too steep, which really makes you scary. but what's really been impressive, you look at longer data charts, 10, 20, 30-year chart owes monthlies, what we've been through sin credibly steep, also. but because of p/e ratios and earnings, it's a sustainable path. that's why i think people are going to look back at this week and especially this month of october and see that abrupt 200-day breach. and look at the actual volume and more importantly the price movement and think that was poouf pure opportunity. you don't get that too often. i think that's one of the things that maybe volatility will bring back into the market is maybe not that abrupt of a move, but some of the ranges coincidently

will be a lot wider. >> michael, did it highlight investors in the fed believe it's always there to step in when necessary which isn't the case in much of the developed world? >> that's true and that's very hard to focus into when we start looking at these charts. but wlg really, what the u.s. said and janet yellen in particular is not going to be so heavily influenced by the different dynamics on these central banks. i think the u.s. is trying to wean itself off the q he. more importantly, i think the punch bowl has been taken out of the room. but the fed is trying to do, i think, the right job. it's taking way too long to do this. >> what about this weekend? it's a busy weekend. we have the brazil election, the

ukraine election. how closely will traders be watching the stress tests? >> definitely. i think late sunday trading here in the states as we get in to start the week is probably going to be more watched than ever, as least from what i've seen in quite some time. mixed results on all the different elections and, of course, what the ecb is looking at with these stress tests here in the states is going to be dominant. real quick here, one of the things that's important is this is counterproductive, but at the same time it's necessary because if we do see the stress tests are working and shows all kind of inadequacies, then the implementation and the rel lagzs are for a good reason. but at the same time, if everything passes perfectly, then how much do you want to start stimulating the economy again with liquidity? that's the question. >> and europe has been one of the reasons we've seen stocks move over the past couple of weeks. michael gurka, thank you for your time. >> and don't forget to join cnbc sunday for special live program where we'll break the stress

tests results for the 12:00 to 2:00 cet. that's all the time we've got today. i'm wilfred frost. >> i'm seema mody. "squawk box" is next. 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. ♪

good mortgage and welcome to "squawk box." a doctor in new york coming down with ebola. authorities are tracing his steps. and microsoft scores while amazon tumbles after rolling out quarterly results. it's friday, october 24th, 2014, and "squawk box" begins right now.

good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. the latest case of ebola detected in new york city, a doctor recently back from africa is now in violation after testing positive for the deadly disease. that took some wind out of the sails of the ramally on wall street. it's still gained -- it still closed up with a huge gain of 216 points. but that definitely took away some of the momentum late in the session. >> you hear 103 and you just got back from -- >> treating patients in western