hello and welcome to "worldwide exchange." i'm wilfred frost. hsbc reports a 12% drop in earnings. and the ceo of ryanair says the competition for fares is fierce. >> increasingly across europe, you have seen air france pulling up prices very strongly. customers are turning to ryanair and we see the strong growth

across the beat. french advertising publicis buys safient in an all-cash deal and shares trade lower in paris. and proctor and gamble is accused of tax fraud and production is halted. you're watching "worldwide exchange" bringing you business news from around the globe. good morning, everyone. let's get straight to data points. the eurozone manufacturing pmi for the month of october, that has expanded slightly slower than first thought last month with the number of 50.6. e were expecting a number of 50.3 so that is slightly better than forecast, but still lower than the flash number that we saw. we'll get to some commentary from the market this morning. again, the eurozone

manufacturing is slightly slower than first thought. for the discounts out the factory gate failing to drive up new orders, this is according to market, a second month of price cutting alongside tend expansion in germany. and we got the individual numbers for france, germany, iti italy. in france it slow ed at the sharpest rate in 17 months. seema, the number we see here is pretty stable, isn't it? but you have to wonder, does it have to deteriorate significantly for the ecb to take further action. >> that's the big question coming up this thursday with the ecb policy meeting. analysts are expecting mario draghi not to unveil further easing measures with further clarity on the asset-backed security program, but does this manufacturing data change what he will say on thursday. that is the question. now over to wilfred with a check on how markets are responding. absolutely, seema.

thank you very much. markets are basically flat at the moment. we had opened into more positive territory about an hour ago up 9.3% in the stoxx 600. it has fallen off in the last ten minutes. the german print came out five minutes before at 51.4 against the reuters forecast of 54.8. the manufacturing pmi for october was 50.6 last month. now at 50.3. we are flat across the stoxx 600. now the stoxx 50 is suffering more in today's trade, but all in all we are range-bound. just a reminder, on the 15th of october the european markets are down as much as 10%. then the rally in the second half meant the markets globally are flat for october. we are in the red across the major indices. the ftse mib is down .78%.

this follows a strong finish to the end of the month and a strong finish to the end of last week. so just correcting a little bit there. we'll have a look at the individual stocks, ryanair shares rally to the top after the group raised its 2015 guidance and posted a rise in q3 profits. it is up 9%. earlier our colleagues spoke to the ceo on cnbc to ask about the decision to cut fares. >> we are going to cut them in the second half of the year so for the full year we expect the fares to rise 1%, essentially flat. that's one of the reasons business is increasingly strong. you see air france pulling up prices strongly. customers deserting them and turn to ryanair. we see that strong growth across the fees. what is unheard of in our business is we are entering into

the winter period with forward bookings 25% ahead of where they were last year. really strong fundamentals. >> and hsbc is taking on the latest hit from earning litigation. they were fined for a settlement after reporting a 12% in underlying earnings in the third quarter. it was down 2% but now just under half a percent. karen, back to you. we'll talk more about the numbers. joining us onset is the business editor, partner and senior marketing strategist, paul, good morning to you. what do you make of the numbers and more importantly the share reaction down 2% this morning but now pretty much flat? >> it's a small miss to me and some of the important features, hsbc always put out their sort of cost management as one of the key objectives of the team, but

it is higher regulation cost building into the system which means they are really struggling. so for some years to keep control of that cost income ratio costing up 10% to 15% during the course of the quarter are a hindrance to the numbers. >> the cost ratio is above 17%. not great news as you said. there was a miss on the call with journalists talking about the regulatory regime globally for a bank like hsbc just being more expensive. now and presumably for the future. in those numbers, remember you've got 701 million dollars put aside for redress cost in the u.k. they are talking about ppi claims just now saying they are seeing an uptick between august and september, a significant step up in claims coming from those claims management firms. if you've got a phone in the u.k. you definitely have been contacted by a claims management firm when you are seeing that

bleed into some of the banks. also in there, results and a bit of news on a french case being taken to court over tax claims. you have that bad news. and as you say, it's all about the expenses and the fact that they don't really have control over it, even though impairments are coming down. some of the trading in their business is actually doing well. but you have headwinds like 4x and the biggest headwind, regulatory red tape and it is not really looking that rosezy. >> in terms of share price reaction, what is interesting is they are responding to slightly better markets for 4x trading and for exwety trading. that has been a positive feature but all the banks in q3 are getting a better interest rate margin at the moment. so higher deposits in the u.k. and hong kong, earning more of the deposits. so the market reacted negatively immediately but the share prices are responding positively similar to what we saw last

week. ubs is showing maybe the banking sector is looking for the good in results and not the regulatory version. >> looking over the last 12 months, down 6%. lloyds is down as well. rbs is up 3%. so hsbc is somewhere in the middle here. so we won't necessarily call a cheat, would you? because you think there's still so much litigation risk out there. >> reassuring the expense within the sector one would possibly describe it and banks sort of trade near their value. it is weather they are trading .7 to the asset value, and that comes down to financial management, how they handle the crisis and the capital requirements they are going to need. of course, hsbc very strong capital position reported in the results. >> and the dividend policy helps. >> we are losing dividends left, right and center out of the food

retail sector. so increasingly the income funds are being relied into dividend sources. >> the lack of volatility in the financial markets has resulted in a dampening in trading revenues, but do you think that will continue to rise in the next couple of quarters given the rise in early october, does that pick up and ultimately help trading revenues for the banks? >> absolutely. the top-down process has brought down the markets over the last two years and there's been concerns over that, the concerns of the complacency in the risk taking that is in breeding in terms of on the back of low volatile till. as we start to see volatility pick up, then it's better for the trading revenues of the investment banks. i see that as a longer term. the chief executive is commenting on hong kong as a huge base for hsbc. and you said he doesn't see the recent protests as having a

significant impact. there's been a lot of political chatter about some of the comments made from a known executive at hsbc but confirming on the call he's recommitting to hong kong. >> we are talking about hong kong and china later in the show. paul, thank you for now. moving on, a deal has been drug to sell irish whiskey brand resulting in a 408 million pound payment. the brazilian company acquired portugal in 2013. the banking problems left the company and now it is off a half% there for altice. and publicis groupe is trading

down this morning and we'll join stephan in paris. this acquisitit rryquisitio in more than 50% of the total revenue from digital three years ahead of the original plan. the problem is the cost of this acquisition 30%. it is offering $25 per share, $3.75 billion in total. they did say it will finance the deal with existing cash but also to increase the debt level. although the ceo of publicis will be able to keep its credit rating, there's a question not above the debt of publicis. and they are not planning to sell shares for acquisition. also, disappointment when it

comes to synergy, 50 million euros in and yule cost savings. that's very limited when you compare this to the rough news the new company would have, $8 billion per euro is explained. this is trading lower today. >> stephan, thank you very much. still with us is paul cabner. let's dive in on this publicis deal, what do you think of the deal? >> they are playing catch-up and the media world is transitioning much better than the big players moving their business models. we have seen with the likes of wpp they have hit the digital space early and succeeded in a result of revenue growth at the moment. there's a big mismatch in where money is being spent at the moment and where the eyeballs are turning to. it's quite clear that mobile advertising, for example, is seeing more of the eyeballs but less of the spend. and that is moving.

but if your business model such as publicis is mismatched, then they have to grow organically or make acquisitions. they have in the past been keen to make acquisitions in the digital space and some of them are allegedly overpaid for the deals, but it is playing catch-up because they have to strengthen their offering in this area. >> paul, thank you very much. publicis shares are suffering down 4%. italy is assessing a number of options to manage the shortfall uncovered by the stress tests. unicredit has looked to hire two banks to help them after the results that were announced a week ago. we'll go out to claudia with more. it spawned 40% since the results. the shares are cheap but on the other hand they may be too hot to handle. >> reporter: well, you know, the bank has been very hardly hit by these results from the stress

tests and the board that management is scrambling to find a solution to raise these 2.1 billion euros that they need to come up with. what seems to be most likely in today and in fact the market is reacting to that, is that they'll go further we are a capital hike. we'll know on the 5th of november when they have to actually finalize the plan of how they intend to make up for the 2.1 billion euros. the options out there were to delay paying back multi-bonds, one of the bits of news that is official at this point. they are not going to do that and will be reimbursing the 900 million they have to reimburse of multi-bonds. what is out there is still possibility of asset sales continuing to go forward, reducing the 2.1 billion euros they need to raise by the capital hike. the major shareholders would be participating in the capital hike that is fintech. the brazilian investment group

holds a 0.5% foundation in the stake. also in the news out there, there could be funds that are interested in coming in to take on stakes like qr, subaris and jp flowers. these are groups that have showed interest going forward. just a few more days of more volati volatility until they face this issue. monti is trading higher by 58.5% after suspended limit down. at the very cheap prices, it is nonetheless still a very unclear situation so the market continues to be still having mixed feelings as to what are the rumors out there. so until the fifth of november, we'll most likely continue to get the extreme volatility. back to you for now. >> thank you, claudia. it could be just a technical bounce-back. thank you so much. tesco is considering the

sale of its banking unit in a move to raise up to 1 billion pounds for the weekend supermarket. the new report shows dave lewis, the ceo, has been forced to look at the assessment of selling the business in the wake of the scandal. shares have fallen 30% over the last three months. seema, what is up next? coming up on our show, richard branson fights for the survival of a virgin galactic spaceship program as new details of this weekend's deadly crash emerge. and could china's housing market be on the brink of a recovery? we hear from one guest who says central bank action is lifting the sector. plus one day to go before americans head to the polls. will the senate turn over to republican control? wee get the full story at 11:40 ct. how much money do you have in your pocket right now?

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you're watching "worldwide exchange." >> welcome back. we'll look at the 4x markets. we expect to get significant easing action from the ecb this thursday. we'll recover the ground so far today just below flat 1.2508.

the bank of japan eased significantly in markets on friday and that pushed the yen to a fresh seven-year low. it's a 112.7 down half a percent today. australia is also suffering today on the back of und underwhelming data. we'll look at the asian markets and the big mover friday was the yen that spread markets higher up 4.8% friday but closed today. today we are having a pull-back off the back of friday's strong gains. china is up a half percent, but the rest of the markets basically are settling down a built. korea is down just over half a percent. hong kong is down 1.3 as is australia. we'll digest the numbers from china which was a mixed picture for the chinese economy this morning as the final hsbc manufacturing pmi showed growth holding at a three-month high. the company's official

manufacturing sunk to a five-month low in october. carolyn? meanwhile, china's housing sector has been a drag on the economy in recent months is starting to show signs of improvement, at least that's according to new survey from china confidential. joining us now to discuss the survey is rafathe research arm the financial times. rafael, thank you for coming in. help me out here because your survey says we are seeing the first month-to-month expansion in home prices since june. in a separate survey over the weekend says we are seeing home prices in china dropping for the sixth consecutive month in october. how do you reconcile the two? >> this is a separate survey from my home company showing it grow at the fastest rate in four months. the latest survey shows it growing the fastest rate in five months. so it's a similar trend. but the most important part of my survey a rebound in home

sales. also, they show home sales growth at the fastest rate for 18 months according to developers we spoke to. one of the developers said despite the drop in home sales, home prices have not picked up so much because developers are still increasing supply very rapidly. our measure of supply was the highest on record since the survey began. so you still have the housing market that is depressing home prices, but demand is pretty strong. >> can i ask you where you get the data from? many times there are question marks about the reliability of data points. >> yes, there are massive issues with the data. we talk to companies directly so every month we survey 300 real estate developers. and as i say, things have been fairly negative since january and october when we saw a sharp rebound in sentiment. very sharp increase. >> the housing sector abides for 15% to 17% of china's economy. is this data consistent with

what you're seeing in the past and do you think this recovery can continue going forward? >> yes, a good question. i think the stage we're at in the chinese economic cycle is that the slowdown of home sales we saw at the beginning of the year is now beginning to impact on the wider economy. the official pmi and manufacturing pmi came out over the weekend, and i think the government is now concerned about that. the fact that the housing slowdown is featuring into the other sectors. it's now beginning to take some measures to try to support the housing market and that should support the economy as well. >> even if the housing market is showing signs it's turning around, the liquidity taps in china have been on since april of this year when data was much worse, so how reliant is the housing sector on this continually loose support? >> it's a good question. and i also suggest that the rebound in october was very much driven by the pboc's decision at the end of september to reduce mortgage rates. so the housing market recovery

is, i would say, extremely reliant on the government continuing to lose the mortgage and wider credit policy, continuing to make sure that mortgages are cheap for home buyers. and so it's a step back from the easing where we could see a slowdown again. >> there's a risk of japanese-style deflation pressures coming through in china. people pointing to the initial green shoots of that. could it get much worse? >> possibly. i do think as i was saying the chinese government is concerned of the slow down spreading now. and i think it is possible that they are trying to put this out due to inflation. and we may see an uplift through all parts of the economy going forward. now a british banker appeared in a hong kong court charged with murder after police say they found two women dead in

his apartment. he worked for bank of america merrill lynch until last week and spoke twice that he understood the charges against him. the 29-year-old banker called them to his building where they found two bodies, including one in the suitcase in his apartment. and republicans are holding a slight edge in the race to take back the senate. now the u.s. midterms are expected to cost $4 billion according to the center for responsible politics. this would make them the most expensive midterms to date. so what could that type of cash get americans? it could build 100 ebola treatment centers in west africa or a fleet of f-18 jet fighters or pay 12,000 students k-12 education. how would you like to have seen that $4 billion spent? we got your tweets, lenox says

definitely education spread across health, engineering with science faculties. inspire a generation today instead of tomorrow. get in touch with us and e-mail us at worldwide@ycnbc.com. >> the price tag they say was 2.5 billion, so maybe this is just some inflationary moves in terms of the cost. still to come, the eurozone pmi came in line. next we'll have the u.k. pmi after a short break. stay tuned. synchrony financial partners with over two hundred thousand businesses, from fashion retailers to healthcare providers,

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hsbc falls into the red on will the litigation charges. and we are hearing from the ceo of ryanair that the

competition is fierce. >> customers are deserting them and turning to ryanair. and we see that strong growth. french advertising publicis makes a $3.7 billion bet agreeing to buy its u.s. rival in an all cash deal. shares trade lower in paris. and operations at proctor & gamble are suspended after the government accuses the household maker of tax fraud. we have a surprise from u.k. final manufacturing. british manufacturing is expanding at the fastest rate in three months since the month of october. the number came in at 51.5. the highest level since july. and that really compounded expectations as we expect a read of 50.2 in reuters' poll.

so once again growth accelerating up expectedly in the month of october. some pretty strong numbers. >> the new orders rose from september's month low to the highest level since july thanks to increased demand in the domestic market. cable picked up a little bit, not a huge amount, just above 1.60. also with us now is rob dobson, senior economist at markets. rob, this number coming in higher than expected and seems to be driven by domestic demand. >> what we are seeing is a drop in the eurozone that came out from our figures earlier. the domestic market is particularly good as we saw u.k. manufacturing slowing down very sharply. what this has done, the pmi is seeing the declining level move back up suggesting the easing sequence is broken now. >> is it too early to say september would have been too early to report manufacturing? >> it is too early.

it breaks the sequence but we see what happens for the rest of the year. new orders are good for production going ahead, but it depends on how much of a drag the eurozone or exchange rate has on exporters in the u.k. >> the exchange situation on thursday when we hear from the monetary policy committee on interest rate expectations and a potential rate hike? >> not really. i think the expectation is that they won't do that but will continue to have this wait and see approach. particularly with the general election coming up toward the early part of next year in the way in which the broader company is going, so they have to wait and see. but the pmi stock is quite low compared to where it was earlier in the year with an expectation to increase. while i expect this to continue in the second quarter. >> even if we have seen a bit of a dip of late, we've got falling

petrol prices, we have falling inflation. wage growth, that's absent. when is that going to come, that's the big question? >> this comes really when you have a sustained period of growth where people really start to feel like this can continue. but yes, there's a lot of positives. what we are also seeing is a situation with a lot of headwinds. some companies are still going to be uncertain about whether or not the eurozone is still strong. china growth is slow which has a big impact on the background. unemployment when you base it, it's difficult for companies to hold off as long as they can, but the employment levels, employment has been rising and pay growth is up. >> as you said earlier, domestically the situation in the u.k. is looking a bit better but globally as the pmi is out of europe and china conflict, things are looking negative. so does that mean continually even if the u.s. and the u.k.

look pretty positive, we are unlikely to see tight anything for a significant period because globally there are too many pressures out there? >> exactly. what you'll find is the bank of england looking more so toward reasons why they can hold off as opposed to which they can move forward. the key example we are seeing during this period of recovery from the global crisis, sweden, they have seven rate hikes over those seven-rate cuts. they won't want to move too quickly in case they have to come back to support again. >> rob, thank you so much for sticking with us. and we have an update on the european markets, cable ticked up 1.60. but we'll have a look at the european markets, as you can see all of them are in the red today. we did start the day just in positive territory but we have weakened off the back of that. friday was a strong finish and the last couple of weeks have been a strong one. so unsurprising to see a little bit of weakness in part coming from weaker than expected pmis out of germany about half an hour or so ago.

germany itself is down 9.23%. and we'll look at the stoxx 50 index down after weakening in the last 15 to 20 minutes. it was down earlier in trading. and moving on to bonds, the rally we saw in equity markets for the second half of october was offset by bond prices just ticking back and yields ticking up. we are now at 2.3% in the u.s. and germany 2.24% in the u.k. the last two weeks or so, nothing too dramatic. still very low yields overall. and i want to give you and update on wholesome and lafarge will have to sell assets to please the regulators around the world. holcom's ceo said they had more than 60 bids for the assets. a significant interest in all assets as a one package. and the ipo of some of the

businesses is still an option according to the company this morning. they expect to complete this with due dill jeigence by early september. and germany could be interested in the assets but then ruled themselves out. opening higher on the back of this, holcom shares were hit by weak 4x. angela merkel said she would rather see the u.k. leave the european union than compromise over the fundamental purpose of workers. merkel fears david cameron is, quote, approaching the point of no return and has warned she will abandon attempts to keep brit in the eu as the conservative party is under pressure to stem migration from eu states. rob, i want to get your thoughts here, how much of the economic impact could this have on the u.k. if it does exit the

european union? >> i think we'll see two forms of the impact. the first will be a short-term impact. they will probably need to go for the referendum before we could withdraw anyway, so we have the financial market of uncertainty. sterling will take a hit. in the medium term, it depends on what the outcome is. if we do withdraw, that will have a big impact on trade but the u.k. will remain a part of the world trade organization to allow us to access to the markets, but the u.k. has no access to the market rules. so the manufacturing is probably a bit bad. the financial markets, i have a feeling this will be beneficial for new york, detrimental to london and not so much to paris or frankfurt. >> rob, thank you so much. ryanair raised its full air guidance to issue a bullish outlook after posting a 32% jump in first half profits.

earlier our colleagues on "squawk box europe" spoke to the ceo and asked about the revised outlook and the carriers in the new fleet. >> we have boeings and airbus dealing with delays of the carriers. whereas we would like to do this without a fleet of 40 to 50 aircraft, we can't do it and it's off the table for the next four to five years. we'll double here in size in europe where you are literally running around kind of picking and taking the marks o. customers are loving the new warm and cuddly ryanair. it's working like a dream. >> a couple questions for me then. first you would have seen angela merkel's report to david cameron about limiting immigration. and it seems like the u.k. is

talking its way out of the european union. just your thoughts on that political narrative. >> it is always a difficult issue here in the u.k. fundamentally, the economics will keep the u.k. in the european union. it is still by and large the biggest market. the ease of travel in the u.k. is not going to leave. if they do, we are an airline. people will still fly to spain on their holidays and italy on their holidays. they didn't come here to learn english, so it will not make a big deal to our business. it is a scottish referendum. >> and the survey that alleges you are the second worst brand in the world for customer service. that's not the warm and fuzzy -- axle is at the top. >> i love these -- >> that's not the faulty brand

you are trying to project. >> i love the surveys. i would like to see a bunch of nobodies doing these surveys. in a year we'll grow from 80 million to 89 million passengers. long may we continue to be the second worst in the world while the business is booming. in regards to the sign of great praise that we are doing things right when they are slagging us off. god bless them. and that is trading ryanair up 9% in today's trade. we also have flashes out of the international air transport association saying global air volumes are up 5.2% in september versus a year ago. global air fight capacity up 3.8%. and in asia pacific, carriers spread volume up 5.7%. and europe is down 1.6% for that industry as a whole. ryanair doing well this morning up 9% off the back of the earnings.

>> the industry overall is in pretty dire straits. we have seen that in the case of airfrance and their profit earnings. ryanair, why can they raise guidance again after hedging at a higher price of $93 per barrel is where they are hedging, we are below that level at $87. they told steven jacks this morning all they want is visibility for what their costs will be over the next 18 months or so. it is pretty impressive, isn't it? >> we have seen the broader airline sector outperform given the price of oil. so ryanair benefiting from that as well as the forecast out there from analyst that is the price of oil could potentially drop below $75 a barrel. that would be a huge boom for the airline companies. >> but a rising high is not that great in this case. >> there have been stock specifics of course with strikes and things of that to be in a direct beneficiary for ryanair

up 9% today. up 22% over the last three month. proctor & gamble has been accused of tax fraud by an argentinian authority. according to a statement on the presidential website, p&g overbilled exports to funnel money out of the country. they are working to resolve the allegations and decline to comment on whether the argentinian shipments were suspended. greenberg is suing over the handling of the aig bailout during the financial crisis. the former secretary tim geithner and former federal chairman ben bernanke testified in previous hearings. aig reports earnings after the market close today. investors looking into the crash of virgin galactic two says the cause of the in-flight

breakup is still unknown. the american national transportation safety board says all the important parts of the rocket which left a five-mile path of debris across the mohabi desert in california have now been found. the crash killed one test pilot identified and the second pilot survived parachuting to safety and is now in the hospital. speaking of the mohabi space area, richard branson said his space flight company would learn from what went wrong and then move forward. >> i truly believe that humanity's greatest achievements come out of our greatest pain. this team is a group of the bravest, the brightest, the most determined and the most resilient of people. we are determined to honor the bravery of the pilots and the teams here by learning from this tragedy. only then can we move forward united behind a collective desire to push the boundaries of

human endeavor. >> and we just had flashes reported by reuters from a senior e.u. official says they completely annexed greece from the eurozone bailout is highly up likely. that's a debate whether greece will exit the imf commitments early and bond yields have been moving around a lot on that potential news. the clean exit means no precautionary credit line, right? i believe so. that was the case with porch gal and ireland. >> again, more generally it just means this is an ongoing issue with no clear answer. as we can see, the ten-year bond issue is seeing a significant yield spread over the ten-year. we'll leave you with a picture of the u.s. davedevil nick wallenda who took to the skyline over the weekend. he has taken on niagra falls, traversed the skyline twice

including once wearing a blindfold. no word yet on what his next stunt might be, but a pretty commendable fleet there. >> wow, incredible. that looks absolutely terrifying. still to come on the show, saudi arabia's first nonshare bank is going public. we'll bring you the latest on the $6 billion offering after the break. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and its made with ibm.

you're watching "worldwide exchange." >> billed as the arab world's largest ipo, saudi arabia's national commercial bank says the retail portion of its share was 16 times described late on the final day of the offer. joining with us the latest news, usef, over to you. >> well, seema, this is a big story in this part of the world. this is the largest lender and the last of the 12 saudi banks to go public. this is the bohemuth, this is the household name that is basically the mother of all ipos is how one analyst put it to me last week. keep in mind of course that 25% of capital offerings here, we are talking 6 billion expected as 15% goes to retail investors. that's the oversubscription you just mentioned. then 10% to go to the state

pension agency. analysts for the most part that i have spoke on the agree that the stock was cheaply priced at 45 reals a share. if you compare the bank to its peers across the sector in terms of price to book, you'll see the significant discount there. and it's also overcoming a bit of a downturn in the market over the last month. seema? >> yousef, one analyst comment said the value of the ipo could be exaggerated because many banks are offering generous loans to those who want to buy shares. is there any truth to that? what are you hearing? >> banks in general have been generous interlending, at least this is what the anecdotal evidence suggests allowing people to take part in the ipo. keep in mind, this is a brand that is a household name and people feel very strongly about ncb. it's a very familiar brand and

the largest lender in saudi arabia. moo moodys said other obstacles would keep the profitability in check. >> yousef, thank you for the update. isis militants have killed 322 members of a sunni tribe in anbar over the weekend. among the dead were dozens of women and children whose bodies were dumped down a well. they held off the militants for weeks but ran out of supplies before being rounded up and executed. meanwhile, the isis separatists have taken control of their second oil field in a week. they posted pictures with their flag raised at the gas field in the central province of hams. and we are seeing the path continual lower on china's manufacturing pmi data hitting an unexpected five-month low. and we have the strengthening

dollar. crude is off just a tad at 80.48. and just a smidge lower, but keep in mind that prices of these two, they have fallen precipitously over the last month or so. crude is off 11%. joining us is phillip, senior economist from north africa standard charter bank. good morning to you. let's cut to the race, you're bullish on oil prices. why is that? >> well, actually, we think that, first of all, there's been a story of mispricing for the market of many assets. and i think that the geopolitical risks have been mispriced for quite some time. and we also think that the market has sort of woken up to the point that there was a little bit of a supply. but when you look at the number, by what we say is that this office supply is not out there. it might come in q1 but figures don't show a real office supply.

and finally, i would say that supply is very small. and if you take out libya after a surge this summer there's no supply anymore. >> if we look at where the oil prices are at the moment, even if it's due to go up, which of these are suffering the most from the oil prices. obviously, they are not quite even in how to deal with the price slide. besides the country like oman, which is the weakest in terms of oil prices and their ability, the other is gdc countries that is very strong and can air. within months the not years at oil prices near $70 with the

coffers, it's be half. >> we'll talk on the battle that we had once again. the u.k. is helping president assad in nigeria. is that something we'll grow to worry about instead? >> what the coalition is really trying to do is to attack isis more than anything. by any means that they can have both in iraq and syria. they are trying to push them back, but we don't hear an official word. he's got the u.s. declaration from the area.

but do you think that turkey can insure the heightened situation in khobani doesn't hit us but is it inevitable? >> i really think the situation in kobani will be the biggest challenge for turkey, for the presidential general, we are angering the whole kurdish population that you hopped out. if you do interview, the anger on the whole other part of the operation sees pkk as a main terrorist threat. >> phillip, you said before, you think oil prices need to go higher, but let's take the majority of prices, many are

there. >> these two run policy that is are counter cyclical. and when you have a country like saudi arabia that have reserved close to $800 billion, you can just imagine how long it would takement with that level of reserve. we have two different in the country at $25. again, $75 for most new or extraction crosses. >> senior economist for turkey. >> kiev in the west are refusing

to recognize the results of the outcome. but moscow says it will abide by the outcome. for two reasons, didn't reach in and one day to go before voting day, we are talking about the enormous cost of the midterm election, which are expected to cost, get this, $4 billion according to the centers for responsible politics. this would make them the most extensi extensive. this could fight and pay for 100 ebola centers in west africa and 25 f-18 fighter jets being built. hope would you like to see the 8 80%. health care infrastructures are okay while jeff tweets "i am fine." it's a local stimulus to local

economy. wilfred, did this catch you by surprise given that you were born and raised in the u.k. i would find that those who aren't from the u.s. would think this is a ruccous. not just on one clarifications but there's always some form of election happening. it's ongoing and costs so much. there must be a better way of doing thing. still to come, how to play the central bank's move after this break.

welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines around the world. >> falling into the red after closing the month after record highs. sluggish numbers from china stoke fears on wall streetment. and publicis makes a $3.7 billion bet agreeing to buy its u.s. rival as shares trade lower in paris. hsbc falls into the red after they increase provisions for a slew of investigations and a drop of 12% in underlying earnings. and a bullish outlook as the

ceo tells cnbc the competition for fares is fierce. >> if you look at paris france pulling up customers strongly, they are deserting them and turning to ryanair. we are seeing that strong growth across the market. >> you're watching "worldwide exchange" bringing you business news from around the globe. >> still to come on the show, proctor & gamble operations in argentina are suspended after the government accuses the largest household goods maker of tax fraud. we'll tell you the whole story. richard branson fights for the survival of the virgin galactic program as new details of this brings the deadly crash to emerge. just one day to go before americans head to the polls. will the senate turn over to republican control? we'll get the full story at 11:40 c.t.

>> you're watching "worldwide exchange." bringing you business news from around the globe. and what a remarkable snap-back for the u.s. markets, wilfred. the dow is now up 10% from the october lows, the same for the s&p 500. but talk about a comeback, you have to look at the tech-heavy nasdaq up 12% from the early lows. some would debate about what was really driving that outperformance, earnings or just dubbish commentary from the fed? >> astonishing bounce-back during the course of the month. huge volatility and global markets in the end roughly flat despite european markets being down as much as 10%. the biggest drive out in the final trading day of october was the increased monetary easing from the bank of japan's surprising it. so all eye this is week on the ecb. will they follow suit and ease as well? >> and will that help markets. ? the dow jones industrial is down

31 points in pre-market trade. the s&p 500 indicating a lower open just two points. so it could be a negative start to the month of november, but again it was a snap-back rally in the month of october for u.s. stocks. on that note, take a look at the ftse cnbc global 300 index with vendors analyzing the latest pmi data from china. they are trading down by 15 points or about a quarter of a percent. very close to session lows. diving into the individual european markets, investors really focus on the economic data we got out this morning from germany, france, pmi data, what does that signal for future growth for the companies. the fse 100 is trading down 18 points despite the better than expected data we got out this morning. germany down 40 points, but the german dax gained 2% on friday. so right now we're seeing a little bit of profit booking in the german markets. same story in france and italy with the shares down 240 points.

so right now it could be a negative start to november, wilfred. absolutely. but there's a type any bit of green in dublin up 1.76%. probably ahead of your arrival, seema. she's going to the web summit there tomorrow. we are host of great stocks and bond interviews to bring you later on this week. we are seeing in the u.s. they are up 2.3%. bond prices coming just off the slight risk on trade that we had during the last two weeks, but of course put it in perspective. 2.3% in the u.s., not -- we'll look at 4x with a bit of strength in the u.s. dollar against the euro at 1.2499. people think we might see ecb

loosening on thursday following what the bank of japan did on friday. what the bank of japan did on friday was lose unexpectedly and that has made the yen weaken half a percent today with a seven-year low against the dollar. 112.90. the usd is also off after the chinese pmi data did not come as strong as possible. the strong markets are here following easing in japan up 4%. today we are just seeing markets for her pull back because of the china pmi data that was not as expected as earning. a pretty cautious start to the month of november then. we'll try to make sense of what we can expect now is a chiefs strategist. good morning to you. do you think that the market simply needed to get this out of

its system and the big snap-back we have seen, do you think it will be smoother sailing ahead? >> i do. i strongly believe that, actually. the fed is obviously going to realize that people need to be fearful in -- >> in terms of central bank policy, that has been the catalyst for u.s. markets over the past couple of years. but now the quantitative easing is end ed which is earning. >> you would think so, but a couple different things can

happen. the current adviser of low interest rates has fueled this. it will continue to fuel the market because we'll see higher rates in 2014. we raised rate s s in that peri but stocks we want up during that period. instead of this great fear and people focusing on very stock-specific stories or specific earnings from each individual companyies will be more positive on real estate, is that right? >> that's correct. we have an incredible situation in the u.s. in real estate right now. i don't know if you're familiar

with the u.s. real estate programs. we are some of the world east cheapest, particularly when you factor in that we had the greatest bust in generations in the area is high, but there's still fear among the home builders under expectation to buy. even though i'm bullish on the stock market, i'm with my up money making or heavily investing in u.s. residential real estate n particular for the state of florida with a variety of bullish chases to be made in the state of florida. >> steve, i hope you're not talking your own book there because it's your homestate. i want to switch over to china because we got some pretty disappointing datapoints over the weekend with the pmis falling to seven low. you say china is in the market

with the best chance of durable che cheap. >> just these numbers are a great example of it. china is hated. the news is bad and the big picture has been bad and vent ne news. >> china's stock has been. >> china is trading at the singing digit right now. you want to see a market hated by everyone and meanwhile the market is going up where the bull markets begin. and i don't know if you're aware, but twice in the last decade chinese stocks have soared by over 100% in less than two years. this setup is very similar to the last two setups we have seen in the last decade in china. so i am realizing that the news is not great, but this is the

ideal setup. you want to buy when things are not looking great or hated if you want to make tripping digits into to your investment thesis? >> midterm elections in my opinion are not that strong. they don't make that much of a difference locally. it's interesting, where the number is actually moving is what really matters. and these -- i think these are a bit of barometer to the future but not playing into my personal investment expectations right now. >> steve, thank you very much for joining us. new data out in the last 30 minutes to show 125.4%.

we'll give you a drup down of what to watch this trading day after a solid end to october. investors are keeping an eye on important data coming out of the ar area. and they are watching earnings from aig, herbalife and others. kelly o'donnell has this report. >> reporter: making a final sprint, today president to unbarely aboarded her connecticut party and campaigned for connecticut's governor. >> i can't vote in california but i'll tell you who i vote for. >> reporter: trying to save senate. today hillary clinton returned to new hampshire to help

democrat jean that hoo-- >> and democratic senator joni ernst is said to be out in the lead. and pat roberts, the one republican senator most on says is hard to get in touch with. >> orman can even switch sides. four to five months as hon by and we are in the same old partisan politics. i'll be able to change our allegiances and work with the other side. >> today his mom mark ed this a

he looked for new ideas. >> reporter: but in conservative kansas, roberts vulnerability as a long-term incumbent could cause the republicans a big side. and some of that story could have landed you. >> taking these stories, i take it to her and know i have been fighting this. he might be able to throw control. the u.s. midterms are expected to cost, get this, $4 billion according to the center for responsible patrolitics. so what could this type of cash get us? it could build 100 treatment centers in west africa or perhaps 25 f-8 jet fighters or pay for $12,000 education from kindergarten to 12th grade. how would you like to see the $4

billion spend if not this weekend. you can e-mail us and see this much money counted on the midterm elections. do you have a stock and sal the owner says the price tag is around $19 and is expected to be higher for the midterms. compare that to other democratic regions like u.k., $3 per vote. and in gemny there's a low against too much fund-raising. you can still buy a lot of cake

with that but not as much in the u.s. >> i don't care it should be okay. and the $40 billion asset over the handling of the aig bailout crisis. secretary timothy geithner and the form erben bernanke will also appear in court today. now french advertising giant publicis is making a play for a u.s. rival. more on the $3.7 billion bet after the break. when change is in the air you see things in a whole new way.

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you're watching "worldwide exchange. "u.s. stocks set to follow europe into the red after closing out the week at record highs as pmi numbers disappoint. and french advertising giant publicis makes a huge bet on the

u.s. rival sapient. and hsbc is setting aside nearly $400 million for 4x charges. ryanair shares rally at the top after the group raised the 2015 profit forecast and posted a 9% rise in revenues. earlier our colleagues on "squawk box europe" spoke to michael o'leary first on cnbc to ask about the decision to cut fares. >> the first half of the year, we'll cut them in the second half of the year. so we only see the fares rise 1%, which is essentially flat. that's why the business is so strong because increasingly across europe you see air france that is pulling up prices very strongly. customers are deserting them and turning to ryanair. we have seen that kind of strong growth across the piece. what is unheard of in our business is we are entering into

the winter bookings 5% ahead of where they were last year. really strong fundamentals and the margins in the half year jumped from 18% to 23% after tax. >> ryanair shares were down initially but have come up 9%. in other stocks to focus on is hsbc following in the footsteps of its rivals taking a litigation hit. it set aside $378 million for a potential forex probe settlement after a 12% fall in underlying earnings in the third quarter. stocks are up in the green half a half percent. publicis agreed to buy digital and a bid to expand stateside, they are offering $25 with a 40% to try the clothing price. the deal is through existing cash and you speak on a conference call. the ceo said he did not expect any more big deals and went

digital going forward. the top story for us, argentina pulling the latest plug. we'll get to that story coming up next on "worldwide exchange." who are these clowns? our new hires. feels like we are just hiring people off the street. we are! we're growing so fast we need man power. at least cdw preconfigured these 2-in-1 devices with intel inside for us. it's a tablet when you want it and a laptop when you need it. just take it already! ♪

investigators looking into

the crash of virgin galactic's spaceship two says the cause of the break-up is still up known. the national transportation safety board says all the important parts of the rocket which left a five-mile path of debris across the mohabi desert in california have now been found. the crash killed one test pilot identified as michael tiner albury. and billionaire virgin galactic founder richard branson said his company would learn from what went wrong and then move forward. >> i truly believe the greatst achievements come out of pain. this group is the brightest, the most determines and the most resilient of people. we are determined to honor the bravery of the pilots and the teams here by learning from this tragedy. only then can we move forward,

united behind a collective desire to push the boundaries of human endeavor. >> argentina is suspending all proctor & gamble operations. bertha coombs is joining us live from cnbc hq with more. martha? >> forpg. bad news for proctor and gamble of they are exaggerating imports to send money out of the country and reduce its taxes. the top agency says the company inflated prices nearly $140 million on imports from brazil. proctor & gamble has been in argentina since 1991 with three manufacturing plants as well as three distribution plants in the city. we're seeking a ban on foreign companies as well as suspending the tax identification code.

argentina requests pg&e pay taxes to avoid it. the country says the u.s. securities and exchange commission has been notified. proctor & gamble says it is going to be hard to get this done. this is something that a lot of companies have this issue, the u.s. and other corporations out there. external progress and the taxes they pay here, but this is a big move on the part of argentina. >> bertha, thank you for now. >> stick with us, because despite cold weather it was off to the races in new york this weekend. nearly 50,000 runners took to the streets of new york city to run the 26.2 mile new york city marathon. kenyan athletes took home the men and women's titles. bertha, whenever i lived in new york, i would go down to support the runners. did you ever get a chance to get down there despite the lousy weather.

i was read iing or thinking abo going on a jog much earlier. but i couldn't believe they were running in the weather, particularly in shorts. my heartbreaks for the second place record losing 3 seconds. that's going to stick with her. >> just to run 26 miles at all is quite the achievement. congratulations to everyone who took part in that. thank you very much, bertha. still to come on the show, could midterm elections help continually help.

welcome to "worldwide exchange." i'm seema moody. >> i'm wilfred frost. these are your headlines from around the world. >> following into red after closing the month after record highs. sluggish pmis for europe stroke the fears. and publicis makes a $3.7 billion on sapient agreeing to buy the u.s. company. hsbc falling into the red after europe's largest bank

increases provision for a slew of allegations against them. and just one day to go before midterm elections. >> you are watching "worldwide exchange," bringing you business news from around the globe. >> if you are just tuning in, thank you for joining us on "worldwide exchange" this monday morning. it was a snap-back rally for u.s. stocks in the month of october. in fact, the best week for the year of the dow, the s&p 500 and the nasdaq having their second best week of the year. better than expected earnings as well as strengthening data out of the u.s. economy helping to bring investors back into the u.s. markets. right now here as we approach the first trading day of november, markets are lower in free market trade the with the dow indicating a lower point of 20 points, and the nasdaq also

trading lower in pre-market trade after a rough start in november. u.s. stocks managed to close higher across the board. diving into the european markets and how they are holding up, digesting the latest pmi information. u.k. data came in a lot lower. the xetra dax is trading down .40% right now. and it is red across the screen for france and italy as well. of course, this coming in ahead of the ecb policy meeting on thursday where we're expecting mario draghi to unveil further clarity around the asset-backed security program. but we are not expecting full-blown quantitative easing even though that's what investors are looking for. now taking a look at the euro stoxx 600. the euro is moving lower depreciating against the u.s. dollar. what does that mean for the stoxx 50? a great index of stocks across

the zone is trading down abo about -- we'll look at the currency markets with the head of global technical strategy and bank of america merrill lynch. good morning to you. i want to talk to you about dahlia. not the move on friday but that would make your dolls over the weekend. we're getting outrageous calls here with the sky the limit. some are calling for the dollar/yen to go to 120. wouldn't that be farfetched? i think it depends on what your perspective of time is. on the long-term basis, the move isn't that much out of the realm of questionability. at one point we could run up

potentially beyond this, but in the short-term basis on the year end or so, we are in a bit more with a long-term basis, the dollar is in a strong bull trend with significant room to run. two, the yen is in a pretty sizable bear trend. there's nowhere for them to go. you touch on the euro quickly as well because it's back. what do you think of the ecb meeting this thursday? >> if you take a step back to look at what the largest trend is for the euro, it is clear to the downside. we have expected further weakness in the euro going forward.

in fact, we are not that far away from a long. >> well, the midterm elections will be a factor that investors will be watching. it is certainly a topic, a day before americans watched the poll republicans hold a slight lead. and still with us is mcneil kerry, strategist at bank of america merrill lynch. if the republicans do get the majority of the house, what will be their top trend.

hopefully imperial tax laws are put in place that ease the burden on those in the middle class, ease the burden on businesses and continue strengthening where the market is going and where the economy has been going to continue the highway trends. boris and republicans are referring to the job market that hasn't improved. >> well, the job market has improved, obviously, as they do in an upwards cycle. but it 'tis a cyclical downturn

longer than it should have been. there's a lot more burden on the be taken off. the middle class and small business owner. that's exactly what you should be doing when they take power in the senate, maybe i'm clearing wrong. >> reporter: one of the potential likely outcomes from the midterms is there's more gridlock. what does this mean for u.s. markets? >> if we take a step back and focus more on a couple different things when it comes to the equity markets. there are three things to consider over the next few months. one is the ceo for january, february and march being the strongest months of the year. the ems we have seen from the october lows is very bullish and conducive for higher equity

prices. the market should embrace this but says the equity and the republicans are taking the senate. this is not going to be a clean sweep or landslide, but really more of a trickle. why is it that the republicans can't capitalize more on voters for president obama? >> eight critical races is pretty significant. and to see the chamber change hands is a pretty big show that president obama has not lived up to his promises and his approval ratings are in the lower 40s translating to losses. and to see this action by the democrats themselves, not wanting the president on the

campai campaign. i would say that the winds that you will see are going to be very major and not a trickle. >> if the republican do win the senate and appear obamacare, wouldn't that work for those enrolled in the free health care plan that obama provides? boris? >> if you look together obamacare has been completely negative and while some of the politics vice president been put in place yet. is there a health care provisions place put in these taxes on the american taxpayer and they have to borrow more

money overseas. >> one question is the removal once the election results are over could give a boost to the u.s. equity market. could it do the same to the u.s. dollar? >> yeah, i definitely think that could be the case. getting back to the equity market, if you go back to look at a common cycle called the presidential cycle. and in u.s. equity markets, which is just looking at the equity market returns you will see the worst six months to the run up on a long-term basis. once the uncertainty is out of the way, the equity markets do well and tend to move pretty strongly because of the removal that elections often and

continue to do well. >> neil curry, head of global technical strategy at bank of america merrill lynch. the u.s. midterms are expected to cost $4 billion. yes, you heard me right, $4 billion according to the center for response to politics. this makes them the most expensive year to date. what could that type of cash get americans? it could build 100 ebola treatment centers in west africa, 25 f-18 fighter jets or pay for 12,000 students education from kindergarten through the 12th grade. how would you have liked to see $4 billion spent? rob bitweets in, i would start a hedge fund. that's you'll get in touch with us at cnbc.

and coming up, we jump in the driver's seat to preview the u.s. auto sales. will the sector continue? join us after the break. your shoppers, our technology. your data, our insights. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. engage with us.

all right. with the stock market gaining

momentum and global fears subsiding, investors are selling gold. many times seen as a safehaven trade for wall street. gold future prices settled below $1200, the lowest level since july of 2010. it's also just allowed 9% in the month of october. some analysts say if the dollar continues to strengthen, that could result in gold shares falling even further, wilfred. >> and since the gold financial crisis, is gold prices and gold equities are not necessarily highly correlated. look at the stock fundamentals as well. moving on from gold, investors get a check on u.s. auto sales for october today. the figures are expected to show a continued moderate recovery for the month rising about 6% over last year. joining us son the phone from chicago is phil lebeau. phil, i suppose seasonally adjusted sales in the u.s. are pretty strong. how much longer will that continue? >> the expectation is that we'll see this at least through the end of this year and for the first half of next year.

nobody is forecasting a slowdown in sales, at least at the earliest until late next year or maybe 2016. but even then folks are expecting sales to remain fairly strong. and what we're expecting when we hear the october sales numbers a little later this morning is a sales rate. remember, sales rate of 16.3 or 16.4 million. that's very good but certainly not a spectacular month like we saw a couple months ago when the pace was closer to 17 million. having said that, the automakers like this pace of 16.23 for two reasons. first of all, the demand for all types of vehicles has been fairly kinfair ly consistent and hasn't been spiking or dropping. and the transactions are up a little over 1% so there's growth in terms of the price of people paying for a new vehicle at the

lot. the plan is 16.3 million. >> thank you for that update. i'm going to bring you flashes out of the ecb. they are going to keep the potential namework tomorrow. mario draghi was distressed for the first two slabs in september and december. they should be viewed together and we shouldn't take too my conclusions from the relatively low takeout of the charges long-term. loans in september. the ecb missed this thursday. not only do we expect headline news but we'll get forecasts on the other key ending, which may pick up following the results, these are looking to private

equities as opposed to government bonds. the u.s. stocks set to follow europe into the red after closing out the week at record highs. french advertising giant publicis is making a $3.7 million on the bet. hsbc is the latest global bank to set back from charges. risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

i'd just gotten married. i was right out of school. my family's all military. you don't know what to expect. then suddenly you're there... in another world. i did my job. you do your best. i remember the faces... how everything mattered... so much more. my buddies... my country... everything... and everyone i loved... back home. ♪ [ male announcer ] for all who've served and all who serve, we can never thank them enough. ♪ welcome back to a quick look on the european markets. we are in the red today, not too much in the red but in the red nonetheless. we did open in positive territory but then had weak german pmis in line for the eurozone pmis and strong u.k.

pmis. a strong bounce-back for the second month of october, so perhaps starting november on a cautionary note. the ftse 100 is down .25%. germany off a little more than that. france further, nearly half a percent. and italy down 1.4%. now, we did have a flash out of germany that the government spokesman said the german government wants an active and engaged britain with a strong eu clarified in earlier reports. it hasn't moved markets but nevertheless a point of interest. we'll look at a couple big stock movers or stock stories so far today and those are mainly ryanair with strong earnings increasing the guidance up 9%. and hsbc which was down as much as 2%, often has disappointing news and provisions as a trend across the major banks in europe and the u.s. it did just go into positive territory and is back down

again. so a lot of moves in hsbc with europe's biggest bank down. >> now investors seem to be reacting to that disappointing manufacturing data out of china. will that renew global growth concerns? that will be the question today. right now the dow jones industrial down 20 points in pre-market trade. we'll also get you a rundown of what to watch this day after installing an end to this. aig, herbalife is joining us as well. president at traderaudio.com. ben, given that qe has ended, how much in focus will the u.s. economic data be this week, jobless claims, of course, expected on friday, how much importance are you giving that

report? >> reporter: i think for the most part it's the biggest number of the week. while we are seeing continuation of the bid activity, for the most part at least into this morning's sessions it slowed as you kind of mentioned mixing the activity out of china and european markets in the overnight session. really what we are looking at have the upper extreme levels in the s&ps near the 2015 level, really looking to see whether we can continue the strength that we closed out the month of october with into the beginning of november. all traders have their eyes with vent developments, as her husband without the qe component is going to be a major factor in terms of the market. >> i'm not talking about the day

traders after an extremely turbulent month of october. very few of them have actually gotten the timing right. >> i definitely agree with you. i think there's a little concern. i think there's a little uncertainty in terms of whether we'll see that, but we'll know soon because this market recently showed this as an unfair zone if you will or unfair level last time this market traded up to the highs. now keep in mind one thing really important to notice is that last time we were up on the highs russell was not participating and not seeing the broader base margin. now we have the russel participating the last couple of weeks closing it down 8%. that should be more fuel to the fire as you mentioning you were looking to eat buyers is a good

question as to whether or not we'll see that. i think it would be key and one of the catalysts to get us into the highers could be a job for friday. but if not, the market won't spend time much here. we'll see a sharp sell-off from levels or continuation into the newer hire hires. i'm interesting if it could move sharply lower if the data isn't enough. quantitative easing ended which could have been a big negative for the market. so does the second half of this show too much or deploy more cash to equities? >> well, you know, i think yes is the answer to that, but i think a lot of people are forgetting the actual enormity in the weight associated with

the ebola fear and the crisis that is short-live as of this point at least, knock on wood, but that in my opinion was really a major component or part of there was up certainty heading into the fed announcement and earnings, but really again as you mentioned, the numbers have been mixed. it's my opinion that a lot of that selling came in and rightfully so. we saw the market turn-around and if you're looking at other factors the like xix, looking at the vix, the volatility has come off as well. >> ben lichtenstein, thank you so much. and joining the biggest

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good morning and welcome to "squawk box." a new month for the markets after a big comeback in october. the new highs and now the countdown son for the next jobs report. really? new details emerging on what caused the crash of that virgin galactic spacecraft. and walking the tightrope. deardevil nick walenda completes two walks between chicago skyscrapers, one even blindfolded. monday, november 3rd, 2014. "squawk box" begins right now.

good morning, everyone. i'm becky quick along with andrew ross sorkin and joe kernan. it was chilly out there in november, but it was not compared to what maine saw over the weeken with snow. we'll check in with our colleagues at the weather channel in 15 minutes. but first, investors are ready to open the books on november today. the strongest period for the year on gains. since 1928 the s&p has risen a 3.4% over the november to january stretch. that's nearly double the average gain for the three-month period overall. the bullish statistics and details in a wall street journal story today. the stocks are on a hot streak with the s&p and dow closing october at record highs. the two indexes turn in their best two-week period since december 2011.