is. a very warm welcome to "worldwide exchange." i'm wilfred frost. >> and i'm carolin roth. these are your headlines around the world. >> republicans win big in the midterm elections, taking full control of congress for the final two years of president obama's term in office. a spark in early rally, europe retail leads the way into the green marking interim results despite sales being hit by hot weather. a weak yen and strong sales in the u.s. as the world's large

ft carmaker posts a profit rise of 11% in the quarter. >> pimco out from a splash of total reach of record $27 billion in the month of october. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> and weir just getting the eurozone composite pmi data come in at 52.1 for the composite number. that's 52.0 in september. we're also looking out for the services number. >> and that is 52.3 versus the forecast of 52.4 in the month of october. so just shy of expectations, but not a huge move, obviously. and we also had a pretty big fall in the euro, didn't we, at the german services pmi. >> absolutely.

so that fall you're seeing in the euro of 1.2496, it is more off the back of the german october sales pmi. the flash number had been 54.8 but it came in at 54.4. that was a 22-month low in the german number. i'm going to bring in nicholas now who is managing director at spirit sovereign strategy. nicholas, a little bit bad news from the eurozone, particularly from germany. >> well, i think it's a mixed bag in the sense that obviously spain is doing relatively well. the overall picture is a fairley grim one. it seems to be that what little growth there was in the eurozone is in danger of being snuffed out or has already been left out. what's worrying to us is the depth and the bregdth of this downturn. this is no soft patch.

the eurozone economy is in worse shape now than it was in 2011 in terms of -- strictly from a geographical standpoint, at least -- was growing in 2011. it was growing at a 2% clip. germany was growing at a 3.5% grip. this downturn has spread right into the hard core of the eurozone. >> but the problem is, in a way, the numbers are not shockingly bad. they're okay. we're just shrugging along here. but they're not about enough to warn further easing from the ecb. he's not like they're going to do that, anyway, and we'll talk about that later. >> that is partly true. as far as we are concerned, bad news in the eurozone is not good news in the sense that that will actually create more scope for

the central bank action. the bad news is just that, bad news. the numbers are quite dire, carolin, as far as france. >> sure, they are. they are. the french firms cutting prices faster than at any time over the last five years. so what's the remedy here? we have to start structural reforms in france, italy and spain. in spain, they seem to be working. but what else can the company and the governments essentially do? >> how on earth can you undertake structural reforms when these economies, particularly france and italy are flat on their back if not outright contracting? meaningful, structural and fiscal reforms as far as france and italy are concerned are a non -- are a nonstarter. >> until we see that happening, though, and they close in. i think we need to have a lot of patience here. because this can take years, not just months. and we know financial markets, they're not as patient as they should be. but until then, until we see those structural reforms coming

through, is the new normal a very slow and a very disappointing normal the one that we have to get used to? >> well, i think we're already getting used to it in the sense that we are now halfway through a japanese style lost decade. there is still far too much being expected from the ecb. the ball has been in the court of a few governments for quite some time. and for understandable reasons, like i've just pointed out. france and italy are unable to actually deliver. >> nicholas, we're going to continue this discussion later on and we'll talk about the ecb and criticism of mr. draghi's leadership. but for now, let's talk about the other big news feed overnight. indeed. republicans have seized the senate for the first time in eight years and expanded their majority in the house.

nancy joins me with more on the details. >> that's right. right now, nbc is projecting 53 seats in republican hands, 44 for the democrats. a few key states we should look at, one of which is west virginia. that was a big victory for the republicans. they will have a senate victory there for the first time in over 50 years, so a big win. but the interesting case here is the state of virginia. mark warner currently has been declared the winner in virginia with about 49% of the votes at the moment. several predicted it could even go into a recount. that's one of the big surprises of the evening. but some other key states, we saw a republican victory in colorado. that was another win the republicans took over. what's important here is people look at colorado as a barometer for the rest of the country. so it could give us clues going into the 2016 race, as well. it's not really considered a red state or a blue state

conventionally. a lot of people call it a purple state. that is good, gives us an indication of where we are heading into the next few years. a lot of red on the map. it will be interesting to see where we go forward. they want to reach compromise on democrats with certain key issues, but again, they will looking straight into tax reform, immigration, and a lot of the energy policies pushing forward, as well. >> and we'll be talking about the likelihood of gridlock now that the republicans are dominating congress. do you think this is a game changer? >> absolutely. we've had gridlock with democrats controlling the senate and republicans in the house. if anything, we could see more agreement with the republicans pushing through their agenda. however, president obama has two years left to go. he wants to leave his legacy with a lot of priority owes immigration, as i already mentioned. so gridlock in a different sense. but the other thing we can't see here, the republicans increase the majority in the house, as well. if anything, they're gaining momentum on that side of

congress, as well. >> thank you very much for that. back to you, carolin. >> we're going to give you an update on markets now, european markets, as you can see, in the green so far today. we had a little bit of a step down at the open and we've strengthened throughout the day. 0.9%. but quite a significant amount of green as we look across the individual markets, largely because we've had two quite big days of decline so far this yeek, so we are bouncing off the back of that. yesterday, the declines were based on lower forecasts for european growth and lower expectations of what mario draghi will be able to achieve in terms of his meeting at the ecb tomorrow. nonetheless, today, a small bounce off the back of the declines. ftse 100 up 0.6%. germany is up over 1%. france just shy of 1% and italy up 1.25%.

let's look at bonds. u.s. yields are at 2.34%. they did fall a little bit yesterday because of the unpleasantry surrounding the midterm elections. it wasn't a drastic move. yields in germany had just come down a little bit yesterday because of those lower zone growth forecasts. nonetheless, confirmation ma growth is going to be lower, seeing a risk off trade and bond prices picking up. in the uk, we're 2.25%. let's look at forex. the u.s. dollar doing better again today. yesterday, it gave up a bit of recent gains. today, the elections are behind us and we're seeing a bit of strength there. in particular, yesterday, the euro strengthened because we're hearing mario draghi might not be allowed to loosen on thursday. therefore, the balance sheet might not expand as much as people expected. today, that's gone back the other way, the euro weakening

1.249$1.2496. u.s. dollar against the yen, 114.53. the aussie/dollar down to 0.8665. let's just date asian markets. services pmi out of china. a three-month low in that reading. therefore, both shanghai and hong kong off the best part of 0.5%. the nikkei continues its strong runs, three trading sessions we've had since the bank of japan announced the surprise easing measures on friday and three days of gains, albeit today the smallest of those gains. a new seven-year high because of the nikkei. carolin. >> software company intuit is looking to shift most of its revenue away from licenses to occurring subscriptions by tend

of 2017. the 30-year-old software company is making the move as it tries to stay relevant in the modern era of cloud xouting. seema mody, she is still at the webb summit in dublin and talking to more heavy hitters this morning. seema, take it away. hey, carolin. as you just pointed out, we are seeing a tip in the tax software space. brad smith, thanks for being here. >> my pleasure. thanks for having me. >> you're looking at small and mid size businesses trying to leverage taxes using online software. >> absolutely. we now serve 55 million customers around the globe. we also have an approach to people filing their taxes. in terms of taxes, we now have about 60% market share so people who file through the cloud file

with our service. >> let's talk about renewing subscriptions. >> today it's three out of four of all of our dollars that we receive. about 70% of our services come in through hosted products and services. >> how correlated is your business to the economy? no matter what the economy is doing, you have to pay your taxes. >> it is brilliant. one of the things that always happens with taxes is regardless of whether the economy is doing well or not, the government still has to be paid. so our opportunity is to provide the lowest cost solution and the easiest way to file your taxes. that's why our taxes continue to grow even when the economy is tough. >> i consider myself to be a tech savvy person, but i can't get my head around paying my taxes on my mobile phone. >> it's a huge opportunity. this next generation entering the workforce doesn't think about doing something unless it has the ability to do it on your

handheld device. >> if you don't take the right picture or if it's blurry, you have to go back. >> in addition to taking the picture, our computer is learning from others. it can help correct any human error and catch those opportunities before you run into a problem. >> it is a highly competitive space. we're here at west summit. several people that i have spoken to are in this space. what are you trying to do to fend off this competition? >> that's the benefit of being a 30-year-old start up. we've seen a lot of competition in 30 years. competition makes the market better and keeps us on our toes. but i'm pretty confident that will continue to have us in a market leadership position. >> are you hear to make any acquisitions? are you hear to make any expected deals or partnerships at the webb summit? >> the answer is all the above. we're always looking at opportunities. many of these people here are partners of ours. many of these people are

competitors in our space. it's always a great opportunity for us to learn and embrace new ideas. >> oh, come on, let's get into the nitty gritdy. are there other companies that you would evaluate as a good buying opportunity? >> i always have my eyes open. we did ten acquisitions in the last 12 months. if there is something here, i wouldn't be surprised if i'm talking to you again soon and talking about it. >> cloud computing has been an issue here. companies are looking for a way of stripthenning their cloud computing. >> if you look at our small business segment, the consumer business has moved through the cloud. one out of two individuals filed their taxes through the cloud. now it's three out of four. small businesses hit that tipping point in the last 90 days.

more businesses have chosen the cloud version instead of the desktop. >> lastly, the macro events, geopolitical tensions, ebola, market volatility, what are your thoughts? how is that impacting your business, if at all? >> certainly. they always provide a challenge for the macro, but if you think about who we serve, consumers and small businesses, these are families living paycheck to paycheck. these are about 60% of the workforce. as long as we stay focused in helping them persevere, things will work out for us. >> brad smith, thanks for your time. >> wilfred, i'll send it back to you. i know you've been watching our interviews over the past two days. someone who you're very fond of, of course, stopped by and no, i'm not talking about eva langoria, but your brother, as well. >> he is, indeed, seema. i'm glad you guys made contact. and thank you for that interview.

colin, what does seem ma have sliend up for the rest of the day? >> coming up at 150k 40, seema speaks to alex depledge, a founder of the website hassle.com. later in the day, cnbc speaks to the current host of nbc's food fighters, allen richmond. we'll hear from adam fichman, werner vogels and peter thel. and still to come on the show, as investors gear up, they gear up for earnings. we ask whether shares in the company have further room to run after that spectacular rally in the last year. move over white sox saks fifth avenue, top top is the new kid on the block. cnbc's connie breyer gives us an inside look at the british

chain's largest shop yet. plus, sweden's london petroleum will stick with spending plans despite the sudden drop in oil prices. we speak with ashley to find out more first on cnbc. that's coming up after the break. 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. engage with us.

♪ introducing synchrony financial. bringing new meaning to the word, partnership. banking. loyalty. analytics. synchrony financial. engage with us.

welcome back. let's have a look at oil prices. 76.8 for light crude and 82 for brent, continuing their decline today. we're now down around 28% from this year's peak in june and well over 10% at the start of october. blp billiton has started to sell to overseas buyers without the permission of the government. bhp says the oil has been minimally processed. the u.s. export ban is a by-product of the arab oil embargo in the 1970s, but washington does allow refined products to be shipped abroad. earlier this year, two u.s. companies got the green light to start exporting overseas. london petroleum beat expectations of net profit 5.6 million in the third quarter, up from the same period last year.

the swedish oil producer confirmed its full year outlook for 2014 and '15. as you can see, so far, shares up around 3.4% today off the back of those results. joining us now down the line is ashley haddenfield, ceo at london petroleum. ashley, thank you very much for joining us and congratulations on a decent set of results. first of all, i'd love to touch on the big picture in the decline in oil price. you're continuing to invest in future exploration projects despite that decline in oil prices. do you have confidence that the oil price will turn around? >> ultimately, i think the oil price will turn around. i think in the long-term, we will remain very confident that oil prices will be much higher than what they are today, despite the current uncertainty and volatility of short-term oil prices. >> and you said in your segment earlier that continued success of the company will be driven by your ability to increase your

move. let's have an update on the resource base because you've had some significant finds recently, haven't you? >> yeah. we've probably been the most successful in our core area over the past ten years. that culminated three or four years ago with the discovery of this field which is back 2.5 billion barrels, recoverable and which will represent the further oil production when it comes on stream. and, obviously, as a field reach likely at the bottom of the cost curve, that field will be the least impacted by low oil prices and certainly will go forward and be developed in whatever oil price the market throws with us. >> ashley, you say over the medium to longer term, oil prices will continue to decline again. whether that's wishful thinking, who knows. but for now, we know oil prices may continue to fall even further. what do you do in that

environment? do you like your rivals, do you cut exploration spending, do you cut exploration overall? >> you have to prudently manage your balance sheet, but like everything else, it's the balance. we are blessed by the fact that we have current production, we're very low operating costs at $10 a barrel. and also, we are in a position where our balance sheet is very strong. and our development projects are all very economic at low oil prices. like i said to our board recently, if oil prices continue to fall, that creates opportunity for us. and but, of course, like everybody else, you have to prudently manage your balance sheet. we've stretched our portfolio down in terms of oil prices. the past generation, we believe we can survive low oil prices and what we've seen for a

sustained period. whether or not we see those oil prices, time will tell. >> looking at your stock price, it seems that analyst res discounting $87 per barrel and this is what they're basing your stock price on right now. shares have fallen 25% over the last six months. do you think that your shares are undervalued right now? >> very much so. i think that the value is represented by the ceo. and today she apprised the discount value for that fell below $5 a barrel. and i would be a buyer at $5 a barrel even in today's lower oil price environment. so i think it's worth pointing out that our main area of operation for every $10 drop in oil price, we are only impacted by $2.20 per barrel because it's a 78% tax shelter. so it does give the added benefit and we are sheltered

from lower oil prices. >> yeah. the tax break in norway definitely helping. ashley heppenstall, ceo at lundin petroleum. thank you. set to challenge ahead of the european central bank over his management style. according to reuters, mario draghi is accused of erratic management and operating in secret. central bank governors in the eurozone are allegedly nationwide with draghi effectively set a target for increasing the ecb's balance sheets immediately after the policy making council agreed in addition not to make any figure public. some intend to raise their concerns at a working dinner tonight. nicholas, that is likely to be a very uncomfortable working dinner for mr. draghi. i don't know if the food and drinks will be in focus. is the ecb in a leadership crisis? >> it is. it is to a certain extent. but to criticize mr. draghi, who almost single handedly turned sentiment towards the eurozone round in july 2012, for not

being collegial enough, almost begs the believe, one is tempted to see a german hand in this. but -- and it's obviously a very important but, it's clear that one could see this coming a mile off. this is what happens when the limitations of monetary policy are actually reached. it's clear that the ecb cannot solve the underlying -- the underlying problems of the block. there are many not only in germany who believe that the last two years have been wasted. that's not the ecb's fault. but the ecb is publishing the signaling effect have contributed to that level of complacency. what is clear now is that full bel

below, it's questionable when that will ever happen. it's also questionable whether or not it will ever happen. mr. draghi is not about to resign. that would be -- that would be reckless. but it is clear that many believe that he has overstepped the mark. >> thank you very much for joining us. appreciate that. nicholas spiro at spiro sovereign strategy. moving on, nato's chief says russian soldiers are again moving closer to the border with ewe crepe. russia has denied claims of -- in eastern ukraine. he says the kremlin has a key role in the process. >> he with call on russia to make genuine efforts towards a peaceful solution and to use all their influence on the separatists who make them

respectfully minsk -- and to republicfully cease-fire which is preconditioned for a political solution. >> ukrainian president poroshenko is mobilizing military units to send to the east of the country in reaction to the weekend vote in separatists areas. this as swearing in ceremonies were held in donetsk and kiev has warned the balance yosts invaded the peace process. heads of states, business villages and even criminals. russian president vladimir putin took the crown in 2013. so we want to know from you, who do you think deserves the top spot this year? if you want to join the conversation here on "worldwide exchange," get in touch with us by e-mail, world would it@cnbc.com, via twitter, @cnbcwex, our handle, of course, you can see them on the screen. who do you think should win?

>> i wonder whether this year it will be xi jinping of china, even domestically in china, he's the most powerful leader since deng, perhaps. either him or the other area that's not been mentioned is the central bank. their power in the world in terms of policy making has massively increased. >> that's so predictable and boring, though. what about the sports celebrity? i still think the german goalkeeper should win, why not? >> and what's his name? >> noya. >> he is a very good goalkeeper. moving on, it's a busy earnings day today with time warner reporting before the opening bell. then after the close we'll get results out of news corp., tesla and leading mobile phone chip mashg qualcomm. on thursday, we hear from astrazeneca, disney is on the docket as well as social media gaming company king digital and zynga. we'll get more tech updates from

seema throughout the show from the webb summit in dubly. finally, on friday, we will find out how warn bust's berkshire hathaway is fairing following a tough quarter for two of its main holdings, ibm and tesco. and we quickly want to recap the services pmi. let's dive into the different countries. first, germany's private sector growing at a slower pace in the month of october. now we've got uk services pmi. the growth slowing sharply in october and uncertainty weighing. what is the exact number? have you got the numbers? >> we are just looking at the numbers now. >> 56 of.2. that is a 17-month low in the month of october. it's down from 58.7 in the month of secretary. even the gloomiest forecast in the reuters poll. >> indeed, the lowest raiding since may 2013. let's bring in our uk editor.

helia ebrahimi, 58.62, is that more than we were expecting? >> it's quite a hit. we have positive number necessary terms of manufacturing earlier in the week on monday and again, construction was very expansive. it was above the 60 number. but construction is only about 7% of the uk economy whereas services, all the accountants we send out into the world is a huge part of our bread and butter. but just a quick point to say that the uk economy is humming along nicely while the eurozone was downgraded by the european commission. the uk was actually upgraded by the european commission, by visa as well, today. so it's above trend in terms of growth, in terms of employment levels it's almost as norm. in terms of, you know, output, questions about productivity and about wages, but i think in the realm, the uk is still doing quite well. >> i just wanted to give you the reaction, sterling, sterling

falling to a day's low of 1.59 after those uk services pmi. again, they were quite disappointing. futures, ten takes after the weaker than expected services pmi. what does that mean for the boe? >> i don't think they will take too much from these pmi readings. i think overall, one has surprised on the up side. today, surprise on the downside. much bigger impact to your right because of the importance of the services industry in the uk. but i think in waters going on in the uk, as i said, we are still doing very well. we are growing quite fast. the projection for next year as we look at forecasts have been upgraded from previous expectations and unemployment is at the levels we started to see before the recession. so we're in positive territory in the uk. the issue will be are we very vulnerab vulnerable? because central bankers or you

may want to put them as man of the year, woman of the year. >> not man of the year. but they are very timid these days and worried about shops to the assistance. >> thank you so much for that. still to come on the show, a weaker yen is helping drive toyota's operating forecast higher. we cross to tokyo next for a breakdown of the earnings.

republicans take control of congress for the final two years of president obama's term in office. the results spark an early rally in europe. retail stocks lead the way into the green as marks & expenser's interim results press despite sales being hit by hot weather. but weaker than expected business tivity in thor row zone and the uk weighs on the euro and sterling as the services outlook slump to a 22-month low. toyota, the world's largest carmaker, posts a beating rise of 11% in the second quarter. here is a quick check on

european market. we are higher across the board today. ftse 100 up by 0.6%, partially boosted by m&s. the xetra dax up by 0.9% despite the fact that we got those disappointing services pmi as will just mentioned and the cac 40 higher. it may have to do with better-than-expected earnings from some of the companies out there, but also some certainty now that we have got the u.s. midterm elections out of the way. >> moving on, toyota has raised its full year operating forecast by 1%. kaori enjoji joins us live from tokyo with more. >> this is already japan's largest automaker and now the world's largest automaker. now they say they're expecting record profits this year. there are two reasons for that. one is the strength they're seeing in the north american market. the second reason is the weaker

yen. take a look at these new figures. they're spething operating profits of 2.5 trillion yen. that is nearly $22 billion u.s. so this is a record for toyota. net profit also forecast was raised today. and toyota says north america is doing well because consumer sentiment has improved. gasoline prices are lower. demand for us suv have been strong. their forecast for 20115 sounds bullish, as well. >> translator: consumption and gdp growth are solid, and we expect that to continue into the new year. i do not see any -- as far as the industry is concerned right now. >> the thing that stood out to me today is the fact that they're expected to actually sell fewer cars than they initially planned this year. yet they're saying profits are going to be higher. and the single biggest reason for that is because of the weakening yen. toyota is impacted by a weaker yen much more than its rivals,

like nissan and honda because of all the cars, toyota cars may have sold around the world, 40% are made in japan. that's a higher percentage. and they say a one yen weakening in the yen boosts operating profits by 40 billion. so if today they're telling us they're expecting dollar/yen at 105 we're currently at 114. imagine the center boom they're going to be sitting on if this trend continues. and on top of that, they're saying that the cost cutting measures are also starting to sink in, as well. there's one concern about the industry, auto industry overall and this is this big recall that's been going on by takata. honda seems to be bearing the brunt of investigation from the u.s. regulators. toyota, very tight lipped on that, but here is what they had to say. >> our first priority is to ready enough parts so we can

quickly replace them with sound air bags. we can't comment specifically about our relationship with takata. >> it's a great result, guys, but i think the weak pss in japan, despite all this extra stimulus from the bank of japan, japan sales remain very, very weak here in the domestic market particularly after that sales tax this year. >> kaori, thank you so much for that. joining us on the line from tokyo now, good afternoon to you. how can you justify buying or recommending a stock really just based on what the currency movements are, in this case the yen, and not the underlying strength of the company. >> yes, hello. i won't say that the earnings momentum was just created because of tail winds. when you see their annual op guidance, as mentioned, they range from 2.3 trillion yen to

2.5 trillion yen. and if you see the o.p. factor, in addition to weaker yen impact of 135 billion yen, they are also adding 50 billion yen improvement from extra, you know, cost efficiency and cost improvements. >> and as you said, there was significant cost cutting which shows these results and yesterday well. it's not just the yen with the fundamentals. but the correlations to the yen is very strong in terms of share price performance. so how do you think we should be trading this stock right now? >> yeah. i think, you know, if we see the recent, you know, share price up to now through the couple of months, you know, i think the share price hasn't really correctly factored in all of this kind of forex tailwind. you know? we believe there's still a large potential up side with the share price and also, again, not only due to this kind of forex tailwind from extra cost

improvements also from improvements in their pricing or model -- you know, new model launches. we believe they can -- there is still potential that they can overshoot their annual o.p. guidance. >> and let's talk about china because both honda and nissan cut sales estimates to china whereas tokyo is continuing to try and boost sales by some 20%. so what are they doing on that particular strategy? >> yeah. so i think the difference as we compare nissan and honda is that toyota has newly launched core models. one is the corolla, which they nearly launched in july. also, they launched another derivative model in september. mainly, this is supporting their strok sal strong sales, which we see in september. >> thank you so much for your time. >> so, metal mining will double

its capacity of lithium ion battery materials by building a new mant in disaster-hit fukushima prefecture. >> the firm is aiming to double its production capacity of a material essential in making electrodes as demand for light yim ion batteries is on the rise. the plan includes the construction of a new plant located about 15 kilometers south of the stricken fukushima nuclear power plant. the area is slated to have its evacuation order lifted sometime next year. and a material producer at the new plant will be turned into electric extraordinaodes and th panasonic. the construction costs are expected to reach around $30 million and the government will pitch in with subsidies in hopes of creating new employment and encouraging more residents to return to the area. and that's all from the nikkei. back to you. >> makiko, thank you very much. still to come on the show,

we hear from one london-based tech company that is taking the hassle out of cleaning your home. we cross to dublin for more from the webb summit with seema mody. >> plus, top shot is moving in on some of the world's most luxurious store fronts, opening its largest store yet. find out what cara thinks about the grand debut? >> i'm terrified. it's going to be fun. it's an amazing shop, amazing clothes. it's sporting me, keeping me alive. >> that's right. introducing synchrony financial bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. engage with us.

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.

finally, good news for marks & spencer. the company posted its 13th consecutive quarter as falling underlying sales blaming the warm weather for the down turn. shares are up higher by as much as 8%. helia, why, exactly. >> using the 13th quarter of a consecutive down trend in sales isn't a good news. what they've delivered on today is that it hasn't been worse than expected and also you've seen some kind of improvement in margins. the chief executive promised

that he would add about 100 bits of margin toes clothing sales. he's done that for the rest of the year. there will be sold at higher prices, not as discounted, 100 to 200 bits by the end of the year. so i think the markets really like that. they have bad sales on line, but they've seen an improvement in women's wear. and that is the bread and butter of m&s and many years they've become too kind of mumsy, you know, not very good at fashion trends. they haven't been followed well in the press, obviously. we're not the right demographic for it, but even the demographic has stopped shopping there. i think that's rebounded after the fabulous leadership of belinda gale. but her boss has lots of questions because a lot of that business international is still under difficult trading conditions from places like ukraine. food, we know m&s does very well

in food. food was up 1%, unlike the likes of tesco and sainsbury, they've done very well. so it's not been a great set of results, but it's been a better set of results than expected. and that's what is delivering the relief in the market. remember m&s had a big position from lone star, the american hedge fund who took a 1.6% bet against the company. i think there's a bit of relief in the air. >> and as you said, they beat on food retail. the low end is doing quite well. is that part of the reason why tesco has been struggling, because they don't occupy any clear brand in the uk? >> well, lisp, retail in the uk has diversified and polarized to their value level at one side and the luxury level on the other. so the likes of m&s have done very well while the german discounters have done very well, as well. as consumers, stop shopping in

just one place every week. but rather goes through to one super store from one product, another shop for another more expensive item and mix up their weekly shop like that and people that occupy the middle ground, they are that middle grouped. if you can't prove to people that you are more either fashion led or discount or something, then you're going to lose customers in this day and age. mark wollend was saying on the call today, we've never chaipg chased the youth, but our cashmere has done well. much more expensive cashmere. >> helia, thank you very much, as ever. investors continue to pull their money out of pimco. the company slashed the total

outcome last month, extending the large withdraws following bill gross's surprise resignation. the fund has just under $1.7 billion in assets, down from a peak of $293 billion last year. now, forbes releases its most powerful people in the year today. i wonder who will be on the list? perhaps fund managers if they can create good growth of money. >> not such growth. >> now, we want to hear from you. who do you think will take top spot this year? sammy tweeted in and said my most powerful man is nigeria's good luck jonathan. what would do you have for us? >> actually, we got a very interesting tweet. she or he is saying wilfred frost. you started the new show. why not? >> it's a generous tweet, but

i'll take it and run with it. anyway, get in touch with us, worldwi worldwide@cnbc.com. a uk-based tech firm is looking to take the hassle out of finding a cleaner. hassle.com helps manage buyers and sellers to other home made services in london. seema mody joins us now. >> thanks for joining us. >> thanks, seema. >> you just raised a major round. what was it like to raise money given the economic challenges europe is facing right now? >> i think q1 and q2 were very busy. i don't want to say easy, because it's never easy to raise

money, but the conditions were very right. i think it's harder now. at least that's the sense i'm getting. i'm not an expert. i think the money is still out there. but i think the money is definitely more -- than it was and growth companies and companies in what i would call the hard tech space. i think that makes sense given the uncertainty at the moment. conflict in the middle east. america not doing quite as much as we originally said. in that environment, i think people are doing more. so i'm glad we got it out of the way. >> absolutely. tell us how that process works. were you met with initial hesitation from investors? and what was their primary concern while they were trying to evaluate and figure out if they should invest in your start-up? >> yeah. i think there are conditions different from the u.s. and the uk. but from a european perspective, we were slightly unusual in the

sense that we run for profitabili profitability. we didn't think we were very, quote/unquote sexy, we wanted to make sure that we survived, no matter what. we were very lean, very capital efficient, focused heavily on the tech rather than expansion or something like that. so when we actually went to market, i think we were seen in a slightly different light. it was very attractive. so the prospect is relatively smooth. we did it very quickly. it was about ten weeks, thank heavens. it was my experience of a major round. >> focus on your business model, the online cleaning space. there's a couple different companies offering similar service. what are you doing to fend off competition? >> we were never in this to solve a consumer problem, per se. we do all the vetting and all

that you would expect. i think our position really comes from our supply side. you know, ultimately, she didn't know how much, when they could come. so we've looked at how do we lock those things? by adding supply. we have at the back end the tools that the cleaners need to manage their business. hence why we're able to be the lowest price in the market, but we give the cleaners the most, about 35% more than the going market rate. so very happy. the media is enabled by tech. >> and very huge, very important component of your business model. how do you ensure that the cleaners are reliable, and ultimately safe? >> that's interesting. my core founders call our businesses the edge kiss. we're dealing in human beings, which means you have a critical

point of failure at every single interaction that we have. we can only do so much, just to put it out there. but we have a high reliability rate. we actually ask the consumer and the cleaner every single time they lock on how is it going, what do you need to tell us? and what we are looking for is to maintain not the most extremely high -- because we're not a concierge service, but high enough that everyone is rest assured when they come to us, they're getting the best in the market they can trust. >> wilfred, sending it back to you. thank you so much. >> later on in the day, cnbc speaks to the current host of nbc's food fighters, adam rickman. plus, we hear from peter thiel of the founder's fund. let's get a quick update on the forex. we are at session lows for both sterling and the euro which has weakened off the back of

disappointing pmi data. the euro is down 0.5%. 1.2483. let's have a quick look at european markets. in the last two days, markets have been soft. we're bouncing back off not. germany up over 1%, france up over just 1%, as well. power is shifting from wall street. we'll find out what it means for markets and your money. that's coming up after the short break. see you on the other side.

welcome to "worldwide exchange." i'm wilfred frost. >> and i'm carolin roth. >> republicans sweep to a majority in the senate and taking full control of congress. >> the results spark an early rally. europe leading the way into the green as marks & spencer's interim results despite sales being hit by hot weather. >> a weak yen and slumped sales in the u.s., the world's largest

carmaker beat rise in the second quarter. the same old story, pimco has net outflows in terms of its total outflow and record $27 billion in the month of october. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> usually after a midterm election, we see a rally into the year-end, especially with a democratic president and with a republican-led congress. we usually see a rally and an average over the next couple of months. will we see that?

>> also very hard to draw the core balance sheet from that. perhaps there's correlation in those movements. it could be a lot of different things and we'll be discussing that as we go on. >> absolutely. the republicans are all smiles today as their party won big in the midterm elections on tuesday, taking control of congress for the first time in eight years. the gop is capturing at least seven seats in the senate from democrats, who failed to pick up a single republican held seat. mitch mcconnell is certain to be majority leader after winning in kentucky. mcconnell criticized president obama but offered an olive branch. >> just because we have a two-party system doesn't mean we have to be in perpetual conflict. i think i've shown that to be true at critical times in the past. i hope the president gives me the chance to show it again. >> and tracie potts now joins us from washington with more on the

story. good morning, tracie. >> good morning. so the question is now this morning, where do we go from here? is president obama going to be able to work with this republican congress and get anything done? president obama will be speaking later today. he's going to sit down on friday with the new congressional leadership, the democrat and the new republican congressional leadership. they have now firmly got a grip on both houses of congress. in fact, the 250 projected seats that they're winning in the house, we haven't talked as much about that and that they were expected to retain control there. but now strengthening their majority in the house to what we're projecting to be 250 seats, it will be the largest republican majority that we have seen in the house, not to mention those seven seats that you mentioned that they picked up in the senate. they only needed six and we're still waiting on results from alaska with that last support. about 94% in there. but that was a tight race. so republicans leading in that race at this point.

so yes, it was a big night for republicans and now the question becomes what is their agenda? what do they want to get done over the next couple of years? we heard from house speaker john boehner. he talked about jobs, energy, tax reform. interesting, he did not mention a returning health care, something they tried to do more than 40 times here. >> tracie, thank you very much. history has shown a bullish buyer for u.s. markets after a midterm election. barclay's says since 1928, the s&p 500 has posted an average return of 7% in the 90 days following the midterm. credit suisse says in the 20 midterm elections since 1930, the s&p has seen an average return of nearly 18% in the following calendar year. and let's have a look at how u.s. futures are shaping this up morning. yes, we are expecting a slightly higher start to the trading session. the s&p 500 taking the rally into account is seen higher by almost 7 points. the dow jones could open up by 57 points and the nasdaq up by

17 points. this is after the s&p and the nasdaq did end lower yesterday to the tune of 0.3%. but the dow jones eking out a modest gain. in focus today, aep and services ism. over to europe, green akrod cross the board. this is in part because we got better-than-expected earnings from the likes of marks & expenser and a couple other countries. we saw declines in the last two or three trading sessions. eurozone pmi and the services sector, a little bit disappointing. the ftse 100 up by 0.8%. the xetra dax showing a strength of 1 .3%. can cac 40 up by a little more than 1%. how are the bond markets looking? >> indeed, carolin. we had a bit of movement yesterday in the u.s. ten-year, which is up. down a little bit because we had bond buying. the uncertainty surrounding the elections, taking the negativity

coming around from the oil price. but it was a one-day move. we're back to around 2.34% on the u.s. ten year. we have had a little bit more yield compression in germany over the last day or two. that lower growth outlook coming out of the eurozone autumn statement yesterday. pmi, as well. but nothing too significant. we're basically staying at those low levels we've been at for about two or three weeks in the uk, 2.25%. a bit of fok ex today. the euro and cable are at session lows. with disappointing eurozone pmis. 1.2484. down 0.5%. we had underwhelming uk service pmi, sterling, cable is down at 1.5885. it's down the better part of 11%. quite a significant move. the aussie -- dollar has moved a percent. the u.s. dollar strengthening across the board today against the yen, 1.448. >> let's give you a rundown of what to watch this trading day?

the october adp employment report is out at 8:00 a.m. eastern. a trio of fed officials is speaking today. march anna kocherlakota, jaefry lacker and rosengren. joining me now to discuss the impact of the midterms of the currency markets is boris from ek management. boris, is there any correlation between the two? >> oh, yeah. i think you are starting to see this in the currency market today. i think what's interesting about this particular election is that we are now basically facing the idea the republicans are effectively taking over control of the legislation. a legislative part of the u.s., congress. and they tend to be very hostile towards the fed. we may have the fed moving much

faster than originally thought, so more nominalzation of monetary policy because that's exactly what the feds want to move. i think there's going to be more pressure from the republican legislators on the fed to normalize policy. >> sorry to jump in here, but i have to challenge this. i would say politics has no bearing on what the currency market will do because they have no bearing on what the fed will do because the fed is independent. >> correct. but the republicans have been extraordinarily hostile to the fed. there is a bill by rand paul that is basically audit the fed's bill that they may threaten to put forward to the floor. there is basically, i think, much greater political hostility towards the fed now and that may indirectly pressure fed officials to act much more -- where they want to go rather than their own independent views. so i think the market is playing

on those two components. clearly, you need to have good u.s. growth to continue. but if you have strong u.s. growth, i think the political pressure on the fed has ramped up tremendously, which is why you're seeing the u.s. dollar now start to rally. >> surely more eyes will be on hard facts of the u.s. economy, such as the nonfarm payrolls due later this week. and on the other side, the likes of japan and europe are easing in the opposite direction. >> correct. so you have all of these components. basically, if the recipe sort of works itself out, you have the europeans start to ease, the japanese are committed very hard to easing and the u.s. economy simply stays on pace, then you have the potential here for a much faster normalization of u.s. policy because of the new republican regime in washington. and that, i think, is what you're seeing as to why the currencies are reacting positively on the u.s. dollar

side. all of this can get blown up. but that seems unlikely right now. we have relatively decent momentum. i think if you get this combination of political pressure and economic growth, the u.s. dollar moved stronger than it did just 24 hours ago. >> stick with us, boris. natural central bankers are reportedly set to challenge the head head of the european central bank over his management style. boris, do you think that's a fair accusation? he's done a great amount since 2012 to keep the eurozone on track. surely he's just acting to keep the know going. >> yesterday i tweeted out i think this idea is basically trying to cure the patient by killing him. i think it's absolutely ridiculous that they are trying to create a coup against mario draghi right now. not only does it create massive uncertainty at a time when europe needs massive confidence, but because mario draghi is

doing everything and anything he can to stimulate the economy in the eurozone. i'm really at a loss. what would they like to do, have widerman as the head of the ecb so they'll go into depression worse than 1982? that is what's going on right now and in some ways that could be very destabilizing to see if it continues. >> thank you so much for your time. coming up, seema joins us again from dublin with a former mu sish yun turned tech entrepreneur. find out who it is after the break.

seema, you've got a very special guest joining you. we are joined by a sfesh guest, jimmy chamberlain of the smashing pumpkines. thanks for joining us. >> thanks for having me. >> so you've gone to tech investor/ceo. tell us about that transition. >> i left the band in 2010 and took about a year off to be just

with my family. about that time, the tech space in chicago was starting to take off with companies like groupon had recently done an ipo and the community was start to go be dynamic and vibrant. there was a ton of parallels between the music business, what it was in the '90s and the tech space and what it had become. and i just found a home in the dynamics of that. and started to go to meeting and go to investor pitches and met these guys and fell in love with the product and came on board as first director of partnerships and then we embarked on a ceo search for about a month. and the board approached me and said we think you know the most about culturezation of those moments and would you be interested in coming on as ceo? i took the plunge and i haven't slept since. >> has hufk been a source of inspiration for you with your current role? >> i think there's a lot of

parallels between the music industry and what it was in the tech community. so i think, yeah, what we're looking at is the migration of culture into digital, the subsequent monitorzation of that. how do you create economic models out of those algorithms. the 90s were the cultural movement with the inflexion of mtv, video becoming a big part of the consumption and really examining the culture and figuring out way toes monetize. that's what we do at live one. we create a social media application called crowd surfing, it creates a digital arena, an environment in which live streaming can be successful. people can communicate much like they do in the physical space and in doing that, we can drive economics. >> and your company has raised about $4 million, you said? >> that's correct, yeah. >> and i have to ask, do you think investors ever approach your company with a little bit of skepticism? they are saying, well well jimmy chamber lynn, smashing pumpkins,

what did he know about tech? >> the one thing i do know is how to work hard, how to throw my whole self into something. i understand the algorithms around technology, i understand how to build a business. my partner and i ran a global, international business, smashing pumpkins for 25 years. so i know a lot about that. i know a lot about international commerce. so yeah, i think there's some merger in there, but i think the creative part, certainly the dynamics surrounding the space and the willingness to learn. >> and the money you made from smashing pumpkins, you've invested and started -- from it? >> eventually, yeah. for me, i'm pretty much an ocd type of person. i'm very much a control freak. so i'm not the type of person that's going to lay my money down and wait for somebody else to figure it out. i'm more apt to get involved in work on the front line of the company. >> we will be watching your

success on live one. thank you so much. >> thank you. seema, thank you so much for that. did you know about smashing pumpkins? i didn't. i wasn't born here. >> i don't know many of this is songs, i have to admit. >> okay. stay tuned from our continuing coverage later on in the day. cnbc speaks to the current host of food fighters, adam richman. and we heard from venture capitalist peter thiel of the founder's fund. and let's have a reminder of your headlines today. republicans sweep a victory in the senate, taking control of congress for the first time since 2008. toyota reaps rewards from a weaker yen as profits top forecasts and more pain from pimco's outflows, total returned fund hit a record $20 billion. still to come on the show, a british invasion is under way on new york's fifth avenue where a

store is opening its largest store yet. we'll hear about the debut. >> i'm terrified, but it's good. it's going to be fun. amazing shops, amazing clothes. he's supporting me, keeping me alive. >> that's right.

how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪

new york city fifth avenue welcomes a new kid on the block today. top shop. the british fashion chain is opening its fifth and largest u.s. store today on the famed shopping row. our vep very own tone ya brayer attended the opening last night and caught up exclusively with topshop's a-list partner, beyonce. >> i've been such a huge fan for so many years, it's a natural things for us. >> are you excited about the elaboration? >> of course i am. >> and is it going to be active with wear? >> yes, it is. i'm very excited about it, starting our meetings and it's the beginning of something exciting. >> so apparently she has a new haircut and overnight, beyonce was named the top earning woman by forbes, estimated $115 million. let's talk to another colleague who -- i think she still has the same haircut, tonya breyer.

>> good morning, carolin. beyonce, everybody loves her and phillip green got her. they're collaborating in a partnership with active wear. they're not launching it until september/october 2015. but, of course, she was there to help him celebrate the opening of his new flagship shop on fifth avenue. now, phillip has been dreaming about being on fifth avenue since 1979 k when he opened his first ever shop in london. and, of course, the challenges have been huge. and he told me about some of them earlier on in the day. >> we've been pretty -- negotiations, some free time. and just the deals for different reasons haven't happened. and i think i've always said it's got to be the right -- i've got to feel it's right. these are not five-minute transactions. these are tens and tens of

millions of dollars of commitment. and this is one location and i want to feel comfortable. it's never been an emergency. but i think it's part of our whole global development. this is a really important landmark moment. so you have to be patient. you have to wait. you've got all these big cities, there's 100 meter stretch where everybody want to be. and you've got to wait until you get that opportunity. >> i remember talking to you during london -- just over a month ago and you said that the u.s., particularly new york, presents a lot of different challenges. what are they and how are you going to overcome it? >> the way the market has gone, certainly over the last two, three, four years in terms of real estate, and just sort of where interest rates are, it's very aggressive buying, very low yields of industry. i think some of the exchanges changed hands as low at 3%.

so in terms of -- you know, and there seems to be a lot of buyers. a lot of people invest. a and, you know, you're fighting all those elements. a lot of people trading, swapping, so it's a pretty active live marketplace. >> the u.s. economy is growing. does this help confidence, you being here? >> look, this is going to be another 300. there is a u.s. side. it's a big commitment. i'm fought going to tell you the exact number, so we have to take tens of millions of dollars here to make it work. so, you know, it's a commitment. so hopefully people see us trying to grow our business here. we just opened san diego five days ago. we decided to go to houston and atlanta in the next six months. so we've made -- if you put a

stake in the ground the average to grow the business. >> as you can see, phillip has big plans for his expansion here in the u.s. back in december 2012, he did sell 25% stakes to men an estimated $860 million to help this expansion. he told me that he hopes in the next five years to make a $1 billion bit of it. not many people here are questioning him. >> well, tonya, thank you so much for that. let's take a look at today's other top stories. investors continue to pull their money out of pimco to a record outflow of $27.5 billion last month, extending the large withdrawals following bill gross's surprise resignation. the fund now is just under $171 billion in assets. down from a peak of $493 billion last year. now, forbess releases it most

powerful people list. last year, it was vladimir putin. the year before it was president obama. who do you think deserves the accolade this year? what do you think? >> i'm pretty sure it's going to away politician again, but we had this discussion before. you could argue that central bankers wield much more power over the world economy in a way and over the world overall than politicians do. so why should we go to mr. draghi, for example, or janet yellen? why not? >> exactly. get your views into us, worldwide@cnbc.com or via twitter, @cnbcwex and our personal handle are on the screen for you now. >> and we'll leave you with a look at how the futures are trading on wall street. the s&p 500, the dow jones and the nasdaq seen modestly higher. we'll be back with plenty more after the break.

welcome to "worldwide exchange." i'm carolin roth. >> and i'm wilfred frost. republicans win big in the midterm elections, sweeping to a majority in the senate and taking full control of congress for the first two years of president obama's term in office. >> the results send u.s. futures higher, tracking a rally in europe, despite the data which is weighing on the euro and sterling. a weak yen and strong sales

in the u.s. boost toyota, the world's largest carmaker boosts profit rise of 111% in the quarter. and a new ceo, but the same old story at pimco. the total return funds reach a record $27 billion in october. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. our top stories, republicans are all smiles today. they won big in the midterm elections come tuesday. taking control of congress for the first time in eight years. the gop capturing at least 67 seats in the senate from democrats who failed to pick up a single republican-held seat. republicans cemented their hold on the house of representatives and won several gubernatorial races. mitch mcconnell is certain to be

the majority leader after whipping re-election in kentucky. in his victory speech, kentucky, criticizing president obama but offering an olive branch. >> just because we have a two-party system doesn't mean we have to be in perpetual conflict. i think i've shown that to be true at a critical times in the past. i hope the president gives me the chance to show it again. >> president obama will get his first chansd to publicly react to the midterms today when it's expected to hold a news conference in 2010 and the republicans to control the house. the president called his party's lo . white house aides have discussed president obama steers clear and a similar catch phrase. now, the republican takeover of the u.s. senate could bring new legislation that directly affects the energy sector, that includes approval of new oil and gas pipelines and the form of natural gas exports. it's possible the gop could see

caps and consider another fight over the debt ceiling next year. lawmakers may try to repeal the medical device tax as part of baek which could hurt health care technology stockses. the fed may come under extra scrutiny, and overside of big u.s. banks. we'll get out to washington later to speak to tracie potts for more of the u.s. elections. and let's have a look at u.s. futures and how they're shaping up. the s&p 500 taking fair value into account is seen up by around 7.5 points and we're expecting a gain for the other indices, as well. this is after yesterday's dow jones eked out a small gain. energy shares, though, still under pressure and we saw the s&p and the nasdaq down by 0.3%. but hey, markets like certainty and this is what they got. european markets rallying on the back of the midterm. but also on the back of very encouraging earnings reports. we did get the eurozone pmi.

xetra dax up by 1.3. let's give you a rundown of what to watch this trading day. the employment adp employment report is out, forecasts calls for an increase of 220,000 in private sector payrolls versus 213,000 in the month of september. at 10:00 a.m., we get the october ism services index. a trio of fed foishgz are speaking today, minneapolis fed president kocherlakota, richmond's jeffrey lacker and chrysler, mondelez report before the opening bell. after the close, we hear from qualcomm, cbs, news corp. and tesla. >> after the close, we'll get results out from tesla leading mobile phone chipmaker qualcomm. on thursday, we heard from astrazeneca, disney, social media gaming companies king

digital and zynga. on friday, we'll find out how warn bust's berkshire hathaway is fairing. let's stick with the earnings stories. joijing us from new york is christine. so far, so good on the earnings front. how strong is it then? >> right now, we're looking for s&p 500 growth to come in at about 12% year over year. revenues, not so great. we're at about 4.6. there's a bit of distearty between the top and the bottom line right now. overall, we're seeing six of the ten sectors in the s&p 500, expecting double digit growth. so i would say we're about 80% through the season and the futures are looking pretty bright right now. >> when we consider 2013 and for most of 2014 market moves are driven almost solely by market expansion, we need perhaps a

strong earnings season this time. would you say this set of results is more necessary than it was a positive supply? >> sure. we've seen the markets react to this very favorably. we had some concerns around europe and ebola and softening in china. so the great results weren't resinating at this point bp. but i do think we can lead that back to the sector. we've seen great earnings numbers. for the second quarter, we were up about 1 1%. i would agree with you, though, we needed this right now, especially considering all of the other issues we've seen that has embedded some sort of fear in investors this summer and even in this fall. so it's great to see the earnings season going higher.

>> going into this season, company sales are from outside the u.s. even if the numbers weren't all that bad in light of these factors, these adjourn lying trends, they're not going away, are they? >> they're not. in fact, of the companies that have reported this thus far from the s&p 500, i'd say about a quarter of those have mentioned europe as being a negative impact on some part of their business. however, they say they have found ways to offset that weakness, whether it be in china or the u.s. they are finding strength in other pockets of the economy at this point, but europe remains a concern going forward. i would say, however, the biggest concern, the stronger dollar. again, about another 25% of reporting companies have mentioned that ag as being an issue for them. some heavy hitters, mcdonald's, pebsy, apple saying this is going to have a big impact on our bottom line as we go forward if the dollar continues to strengthen. >> and going into next week, all eyes are going to be on the retail sector.

that's been one sector that's been a lot of -- possibly because of the heavy discounting. how are you going to be shaping up this time around? >> we really need the data on consumers. last week, consumer spending dropped at eight-month lows. consumer sentiment was at the highest level since 2007. i'm hoping next week, as more of the retailers come out, we have a better idea not only how the third quarter shaped up with b but how are we leading into the fourth quarter, extra additionally the strongest for retailers with the holiday shopping season and all? right now we're expecting holiday shopping seasons to be strong. we saw michael kors coming out yesterday issuing very positive forward guidance. specialty retailers, we're expecting a lot of the home improvement companies, lowe's, home depot to do well going into this third quarter season as well as into the fourth quarter. it will be interesting to see what sort of picture they're painting for the u.s. consumer

when they start to report next week. >> christine, thank you so much for your time this morning. appreciate it. christine short, senior vice president at estimize. and we'll stick with earnings. results were boosted by strong sales of its new blockbuster game destiny and a subskrooip scriber for world of war craft. activisio in just launched the latest title in its popular call of duty line. currently in frankfurt, shares are up by 0.6%. and 21st century fox reported a surprise increase of fist quarter revenue. it rose 12%. that was driven by strong results from its skabl networks and film division, offsetting weakness in its broadcast operation. fox says the television ad market is a mixed story while ad prices have held up, volume has been softer than expected. in frankfurt, down by 3.5%.

as tesla gives up earnings, we ask if the electric carmaker has weight takes to stay in the fast lane.

tesla will be charging up your earnings calendar today.

it reports third quarter numbers after the bell today. expect ages are for an adjusted loss of 1 cents a share. adjusted revenues up by 48% to $889 million. foor tesla, there are a lot of questions out there about demand, cost control. shares are up a whooping 58%. the average price earnings move is 12% over the last eight quarters, according to trade alert. today could be a volatile day for the stocks. >> one car company that hasn't been volatile lately is toyota. it raised its full year operating profit forecasts by 9.11% because of the weak yen and it continues to make up for lower vehicle talesales. it now expects profits of 2.5 trillion yen. the company's executive vice

president told the news conference toyota had successfully cut costs. now, another month, another record set of withdraws from pimco's flagship mutual funds. morgan has more. >> investors pulled a record 27.5 billion from pimco's flagship total return fund last year. that tops the more that $23 billion that was pulled from the fund in september following bill gross's surprise resignation from the company. the fund now has just under $171 billion in assets from a peak of $293 billion last year. although it still remains the world's biggest bond fund. the october outflows represent the 18th straight month cash has been pulled from the fund. and the total return fund has lost more than $50 billion since gross's departure. outflowed slowed controlly with the bulk of those withdraws

coming within the first five days of the month. pimco has been trying to reassure clients the firm remains committed to the same investment strategies following gross' exit. in a letter to investors last month, ceo doug hodge said there's been a dramatic shift at pimco. the reality is that our dna is fundamentally unchange. even before bill gross left, the total return fund had been posting spotty returns. so far this year, the fund has returned about 4.1%, which trails the majority of its peers. in comparison, the double line total return fund has returned nearly 6% with. the doubleline is run by jeff gunsplos. the next few months will be big for pimpco as several retirement plans are expected to decide whether or not to stick with the company. roughly $14 billion in funds are

up for grabs. wilfred and carolin, back to you. >> morgan, thank you very much. and these your headlines today. republicans claim a victory in the senate, taking control of the senate for the first time since 2008. toyota reapes rewards from a weaker yen. and more payments from pimco. outflow could left the total return fund at a record $27 billion.

republics have seized the senate for the first time in eight years and expanded their majority in the house. we are joined now by david payne, senior vice president at

box global. david, good to have you with us. i suppose one of the big outcomes of this is people suggest there would be more gridlock. we've seen gridlock already. so far, obama has been able to blame that on congress generally. but now, he will either have to sign republican legislation or veto it altogether. could this result mean as we go into the final two years of his presidency that his opinion polls fall even further? >> i think we have not yet seen the floor in president obama's approval rating. i think we've seen a lot of gridlock, but i think what we're going to see in january and following is going to look a lot less like gridlock and more like action on the part of congress. we've going to have a whole bunch of legislation, including some important priorities. some pieces of legislation are going to get unstuck, i think, and that's going to mean some pretty good things for business, too. i think some very important trade deals, for example, might start to move with european nations and with certain asian nations. i think we're going to see

potentially some tax issues coming up and who knows, we might even see a minimum wage bill sometime later in the year. >> you know trade and tax, those aren't the sticking points. that's where we have a lot of bipartisan support, but there are other sticking points at the approval of -- the reforms clulg include expert law. we've got officially another debt ceiling battle, repeal the medical device tax. what are republicans going to do on that front? >> well, i think we're going to see less brinksmanship. in months past, we've seen everything go right down to the deadline, everything go down to a government shutdown or the 11th hour. i think republicans in firm control of both houses of congress are going to get way out in front of these issues. they're going to address national debt issues, budget issues, they're going to get must-have budget bills to the white house for signature earlier than ever before. i think you're going to see the white house acting on priorities like the pipeline, like

liquified or compressed natural gas exports that are less controversial. we're not going to see mega legislation through congress, but we're going to see some key bills get unstuck, i think. >> david, i'm curious to see what president obama's response, specifically the communication will be to this -- really, to this pummeling that we saw in the overnight midterm elections. four years ago, he used the words not many people are used before, shallicking. what do you think he will phrase this time around? how will he phrase it. >> i think president obama is going to go right to his next priority and start focusing on that. he has been telling the nation that he's going to be focused on an amnesty program. not his word. of course, the word most republicans would use. i think that's what republicans will pivot too. he's not going to talk about what happened in this election day. i think he's going to move on to this next priority and start

focusing on something a lot of his core supporters are keenly interested in seeing what happens. and what about the democrats, do you think they will unite now behind their president as we go into the time two years of his presidency or are they already thinking ahead for 2016? >> you know, come january, everyone is going to be focused on 2016. who is running, who is running for the republicans, we have a clearer picture for the democrats than for the republicans. i think democrats did everything they could to run prosecute president obama this electric cycle, to distance themselves from his policies. but you know what? these are democratic policies that they were running from, so they were running from their own ideas. i don't think they have a lot more room to run. i think they have to own up to their ideas, own the fact that america has repudiated most of them. i think you'll see lots of solidarity between the white house and remaining democrats in the senate, but i don't think

they're going to get any of their priorities through congress. >> what about the gop side? because mr. boehner has had quite a tough job. now with a knew united congress, do you think his job will be any easier? there are still many unyielding republicans out there. >> yeah. congress has become more conservative. and i think that's true of the senate and certainly of the house. with the pick up of some additional house seats and including some really conservative republicans winning those seats, i think john boehner has as much a challenge in creating consensus and collaboration with house republicans as he has ever had. that said, it's a whole lot easier to move legislation through the house when you know you have a friendly senate to work with. i think that's going to mean some pretty good things for a lot of people. many of the house priorities that had been stuck for the past couple of years, they're going to start moving. >> david, thank you very much for joining us, david payne, senior vice president at

boxglobal. now for european markets, we're in the green, as you can see. up to 137%. the same amount up for germany and the tts ftse 100 up 1% today. looking ahead to the ecb meeting on thursday, as well. u.s. futures, we are expect a slightly higher start to the trait trading day, taking fair value into account on the dow, the s&p 500 and the nasdaq. we are expecting modest gains at the start. are we going to see that typical post midterm rally right now? it looks like this could be the case. remember that's the s&p and nasdaq up lower yesterday, the dow jones eked out a small gain today. we're focusing on the aep report. jobbox has announced it will team up with microsoft to allow users to share files through the net site and mobile app.

the surprise move. let's krot cross out again to seema mody who has another busy day at the summit in dublin. >> carolin, we've been learning so much, not just from technologies like robotics, but also how the economy is still a very big topic of discussion here at the summit. entrepreneurs, including the ceo of hassle.com joined us earlier today on "worldwide exchange," talked about how it has been tough to raise money in europe, given the slowdown in the eurozone. that has weighed on investor sentiment. that provides an opportunity for kick starter and indigo. these crowd funding platforms, allowing entrepreneurs to raise capital on those type of platforms, as well. we did speak to the indy go go founder who mentioned that as one other catalyst for the company. as you guys were mentioning, dropbox, a company that we have been putting a lot of focus on and asking them whether they will go public in the near future, drobbox's ceo did speak

to cnbc. >> we raised money earlier this year. the tank is full and we're focused right now in scaling the company and opening up offices all over the world in places like dublin and elsewhere and that's keeping us plenty busy. >> and, of course, cloud computing will continue to be a topic that we discuss here at the conference. we did speak to the intuit ceo brad smith about how that is considered one of the big opportunities for the company going forward. all the start-ups, too, trying to gain or -- their presence in that space. we'll continue to watch what happened there. i'm going to head on stage in a couple of hours to talk to the ceo of tumblr, which sold its company to yahoo! for over $1 million. be sure to get you some good notes from that. >> sounds fantastic. thank you very much for that, seema. later in the day, cnbc speaks with the host of food fighters out of richmond. we'll hear from peter thiel from the founder's fund. that's all we've got time

for on "worldwide exchange." i'm wilfred frost. >> and i'm carolin roth. next up, "squawk box." synchrony financial partners with over two hundred thousand businesses, from fashion retailers to healthcare providers, from jewelers to sporting good stores, to help their customers get what they want and need. banking. loyalty. analytics. synchrony financial. engage with us.

good morning. republicans in washington gain control of the senate, adding seats in the house. the party now controls both chambers of congress or the first time in eight years. a lot of wins in the gubernatorial races, as well. jobs in america, investors will focus on a key read on employment today. the october adp report about two hours away. and there's no need to shake this off. taylor swift's new album selling nearly 1.3 million copies in its first week.

it is wednesday, november 5th. that's the day after tuesday, november 4th, 2014. "squawk box" begins right now. ♪ >> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. a lot of interesting races to talk about this morning. speculation about what the republican agenda will be in january's gop-controlled congress. a special "squawk box" newsmaker this morning, former house leader eric cantor will join us on set since his stunning primary loss a few months ago. as for what investors should make about these results, check out sam stovall. midterm years are historically good ones for stocks. since 1946, there have been 17 midterms and every year following, the s&p has produced positive returns. on average, the index has risen nearly

results more than the oil price