a very warm welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. these are your headlines from around the world. >> don't worry about the strength of the dollar. fed policymaker charles plosser says the rate won't be determined by short-term volatility. >> even an interest rate. >> upbeat earnings drive european stocks higher with vodafone leading the stoxx 600 after it hikes the dividend and

launches a new broadband service. shares in henkle. the ukraine crisis is hurting europe but russia's economy remains strong. >> the surrounding countries are reacting and russia remains strong. europe is strong now. but germany is having the strongest growth since 2012. $6 billion and counting. alibaba firmly on course for record breaking sales as consumers snap up online bargains. cnbc speaks to founder jack ma later today. display you're watching "worldwide exchange," bringing you business news from around the globe. nouriel roubini says he doesn't think the fed will hike

interest rates anytime soon. factors in whether the u.s. inflation and the rest of the world could lead officials to start hiking more slowly. >> it could be sometime in the middle of the year. could be june, could be july. even if inflation employment data the right level to start hiking, the fed would like to wait a little bit longer just to make sure that if they start hiking with the liftoff, they're not going to abort it and they can go back to zero. >> roubini also said easing by other central banks could impact the u.s. economy. he's saying even when all the growth, inflation, unemployment is in the right place, even then we won't see the fed start

hiking. central banks also overreact to whatever the fear of the day was. then it was inflation and they kept rates prohibitively high. central banks will really not want to have to increase rates and cut them again. that was very positive for equities in the short-term. >> listen, the prospect for rising rates continues to be the big debate. 18 months ago, that's when this talk started on whether the fed would raise rates. we got a look at inflation. that's well below the fed's target of 2%. until inflation picks up, i don't think we could see rates rise until we see that being hit. >> absolutely. and that's positive for equities until we get to that point. but even when we get to that point and people start during deflation, even then equity sess a real asset or protection against that. so it does make one thing that particularly if that cause of inflation is positive growth, that equities are a very attractive investment at the moment. >> listen, we saw a lot of volatility in early october, and one of the reasons is the rise

of interest rates. interestingly enough, volatility is now down 59% since hitting a high this year on october at 15. so, clearly, the market doesn't expect rates to rise and that's one of the reasons you're seeing stocks hit new record highs and that's exactly what we saw on wall street yesterday. speaking of central bank policy, boston fed president eric does not say when he expects to fed to start hiking short-term rates. he warns sluggish wage gains and a stronger dollar could make it harder for inflation to hit the fed's 2% target which we were just pointing out. rosengren says weak inflation must remain very low which gives the fed little room to react if the economy runs into trouble. we see a laterally in europe yesterday which means we posted

small gains. at the moment, the stoxx 600 is up 0.4%. let's look at the individual markets. up 0.5%. the individual markets, you can across the board and nowhere is really tearing ahead. what's leading this? there's no specific europe-wide reasons for it today, but there are some interesting stocks that we'll get to later in the show like vodafone. as you can see, a bit of strength across the board, but nothing too significant. germany is up 0.4%. france, slightly ahead of the rest, up 0.25%. let's look at bonds. on the u.s. ten-year, 2.63%. september was range bound between 2.4% and 2.6%. we dipped below that in october with more negativity. it seems like so far for november, 2.4% is the area to test. we got close to that last week. on friday, the jobs number took that risk off trade slightly below the cards again.

2.63%. germany, 0.84%. and uk 2.2 the 3%. let's look at forex and the u.s. dollar is just causing at the moment against most of the currencies other than the yen. euro/dollar, 1.2408. aussie/dollar, 0.8597. the yen is interesting, the u.s. dollar bounced significantly today, 0.8% up into the green. 115.76. but we're still some way off the highs. what does that move mean for asian equity market? let's check in on asian markets with sri jegarajah who is standing by for us in singapore. sri. >> hi there, wilfred. lovely action in today's trade was concentrated in north asia, in japan and in the chinese markets. let me start with japan first. seven-year highs for the nikkei at the close. and we also saw fresh seven-year

highs in dollar/yen, as well.. the yen getting dumped on speculation prime minister shinzo abe could delay the second round of the sales tax hike. not only that, there's a possibility that he could call a snap election, as well. the trading action in dollar/yen has been nothing short but fascinating. yes, we saw a fresh seven-year high well above 115.75. as they hit a session high, a new session high off of 116. and if you look at ebs, it moved a little bit of that threshold of 116. it has since retreated from those multi year highs. the dollar/yen, remaining very, very firmly big. let me talk about shanghai and shenzhen. we've seen record turnover, record transaction volumes, trading volumes. although a lot of volatility on the shanghai market. earlier in the morning, we saw a three-year high where we settled

lower. november the 17th, let me stress the importance of this date. this is when the hong kong/shanghai stock connect goes live and that, seema, will create the world's third largest equity market. a lot of interest just ahead of that key data. the brokerages and the banks, they have been on the tear. seema, back to you now. >> now, back to the central bank policy and what that all means for markets. carolin spoke to charles plosser, president bank of philadelphia at the ubs conference and asked if the fed was worried about volatility and asset prices. >> we shouldn't be responding to every little wiggle in the financial markets, whether it be the exchange rate, stock market or even interest rates. our job is not to suppress the asset prices or volatility. we need to keep our eyes focused on our longer term objects. monetary policy works with a lag

and we can't allow ourselves to be whipsawed day in and day out by what happened in the financial markets. carolin, i found your interview particularly interesting because of what plosser had to say about financial volatility. this coming on the back of janet yellen saying expect further volatility as rates will normalize. >> those are real interesting comments, mr. plosser saying it's not our job to look at what the value of the dollar is. let's bring in our next guest and get his take on this. george, those are mr. plosser's comments. do you agree or disagree? >> the idea that the federal reserve doesn't respond to markets or big changes in sentiment in markets is not true otherwise qe would never have happened.

>> we've had three rounds of that. >> exactly. i think possibly what he's trying to say, if i can put words in his mouth wsh is that there isn't a particular change in the dollar or the s&p to which the federal reserve should respond. the dollar isn't the federal reserve, in brief, anyway. but the federal reserve has a responsibility for monetary conditions in general and for the inflation rate. so if the dollar rises appreciabl appreciably, that is something which i think will be of interest to them. >> big story this year is the rise of the dollar. at the start of the year, many people were frustrated by how slowly it will risen and now we're finally seeing that dollar run that so many people were forecasting and helping the boj. it also sparks a currency war out in asia, doesn't it? >> it's 50% movement, actually,

from the highs. but once that extreme valuation has corrected, it's gone about 15% or 16%. and i think this is still in the foot hills of the mountainous rise in the dollar. it will be the first upswing of the dollar during the post war era. i think it's going to take dollar/yen to 1.35, 1.45. i think the euro will go quite a long way, especially since the bank of japan showed us they're willing to go to the max in terms of qe. the big issue is what impact will this have on the exchange rate? many rates seem reasonably stable. but i don't think that's going to last if we have another big fall in the value of the yen. then i think we'll not only get asian currencies going down as a

consequence, but some stalwarts like the rnb could go that direction, too. >> this week, we'll get third quarter gdp numbers. we get the inflation reports on the boe. which of the two is the one data point that you're looking out for? we're not expecting much from the boe. we're not expecting rates to raise anytime this year or even in the first quarter of next year. is it really all eyes back on the eurozone? so many people are nervous about was going on here. >> yeah. i mean, of the two data points, you have to pick a couple -- actually, the calendar has a couple which will go without much commentary. we know the our row zone is the basically stag nating. we can get small ups and downs in terms of the quarter gdp, but it doesn't have much to do with what's going on.

the policy environment is frozen. all eyes are on when and what the ecb might do in the future, if anything. >> but you say the policy environment is frozen, so you wouldn't expect much more from the ecb? >> well, i'm not saying that the ecb won't go the whole hog to do full blown sovereignty reads, but i think it's a question of defining how bad the situation in europe has to become before politically draghi finds himself able to do that. he's got the authority to do it, he probably has the majority on the council to do it. it's pure politics that's holding him back and not risking a lot of angela merkel's report. the uk figures are on help. >> thank you so much for that, george magnus. and we'll talk much more about politics within the ecb. we'll talk to former ecb council member sabini smi arney.

coming up on the show, we talk abe-nomics. we look at the stocks set to win and lose from the cold weather. and it's game on in the battle for holiday video games. can microsoft's halo outmaneuver creed? check it out. and we ask what is the fairest way to charge for the internet. location. location. (shouting) location. here's the location that matters the most. here. or here. or here. it's wherever this is. to get customers to come here and stay here, you're going to need an app that connects to all your systems. so they can bank, shop, do what they need to do, and you gotta do it fast. before the competition does. it's tough out here; you better be on the right cloud.

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are you single? china has the answer for you. celebrate valentine's day on november 11th or 11-11. singles day was created for the unattached. china alabamaly baba has helped make this day the biggest online shopping event in the world. >> that's right. the dominant player in china is alibaba. last year, it took in a staggering 5.8 billion in sales just on singles day. and transactions today are expected to surge 40% to a record 8..2 billion dollars.

now, in comparison to the u.s. cyber monday, the online shopping day in the u.s. following thanksgiving, you basically pull in about 1.7 billion dollars. definitely a big day for chinese internet and for sales, of course, for alibaba. >> absolutely. and we want to hear from you on this. what do you think is the best gift for a single person to buy themselves? i don't know. perhaps doughnuts. short-term gain for long-term pain but, god, that short-term pain is worth it. >> i think you would know best, right? this is singles day we're talking about, wilfred. >> it is. is and sometimes the hard ache is so bad, there's no gift in the world that can ease the pain. >> but until i find that one, wilfred, what do you -- >> you mean that one doughnut. >> whatever you want the one to be. what would you think men of your age would be buying on singles day if we did celebrate it here in the uk?

>> i don't know. we're getting some fresh suggestions from our producer in my ear at the moment which i won't be able to repeating. something maybe for a sport that you couldn't make the most of when you're in a relationship. >> someone tweeted in a body pillow. >> i don't know what that is. you'll have to explain, as well. >> i don't, either. get in touch with us, e-mail us your thoughts. worldwide@cnbc.com. tweet us @cnbcwex. you can see our handles on the bottom of the screen. talking about alibaba, it's a big day for them. david faber will be sitting down with allibabalibaba's jack ma cp appear 1600 cet. one person not celebrating singles day today is harold ham, the ceo and chairman of

continent day who has been ordered to pay nearly $1 billion in a divorce settlement. hamm's ex-wife will receive $322.7 million plus $7 million installments. >> surely you just complete all assets. what is the ongoing annual payments about? >> i think there is complicated, given there's a share buybacks, it's not just your typical 50%. >> both of them certainly have the ability to buy quite a lot of gifts for themselves. and another single person looking for love is the chinese entrepreneur who spent $55,000 on 99 new iphone 6s and arranged them in the shape of a heart before asking for her hand in marriage.

unfortunately, things went badly when his girlfriend said no. it's unclear if she delivered the news via text. absolutely. now, we've been talking about alibaba in general. we've been getting a couple of headlines from an alibaba in general. allibaba is in talks with apple about a possible payment cooperation. alibaba has its ali-pay and apple which has its apple pay unit. there was speculation a couple of weeks ago that the two companies would find a way to work together. just getting headlines, more news on that. alibaba saying talk wes appearing focusing on payment in cha. it would be quite a collaboration if they're to move forward. >> indeed one to watch. now, henkel shares are merging

to the top of the market. the german firm raised its full year outlook. annette is in frankfurt with more. >> yes. what was surprising, as well, that the ceo early on today on the program on "squawk box" saying that germany particularly is going very strong, whereas, of course, the macro data right now is suggest that germany is kind of in a dip when it comes to the economic recovery. but reading through the press release, it's astonishing that the consumer related story for henkle is 100% intact. on the back of better than expected shares in asia and africa, at least when it comes to home care and beauty care. making up half of the overall revenue. everybody probably has scored one of the products of henkel,

shampoo and which are going very good in those ee memorying markets. in general, one could say the united states is knot doing very well in this but the industrial unit is strong in the states. but that scenario, as well, that the strong recovery we are seeing in the states is not triggering down to consumer spending. with that, back to you. >> annette, thank you very much. another company with earnings was ap mullinard, beating company expectations. the danish shipping giant says they expect the maersk previous results to be about estimates and wore global demand growth is

slowing. shares down so far a fraction in today's trade, up 4% over the last 30 days. joining us now from london is robert swanson, head of transport research at mcquarry group. robert, thanks very much for joining us. the first headline quin i wanted to touch on was the move in the oil prices we've had which is the face of it is good for maersk line but not good for the company but what does it mean for the company as the whole? >> if you look at what has stripped the shares over the last few weeks, it has basically been the oil prices. we think that is justified. what you have to remember about this stock is oil only accounts for about 50% of the valuation.

so we think this stock is a lot less exposed to the oil price than people think and you do have a real big buying opportunity at this lil level. >> oil, one of the roens we've been seeing the stock on the move. also the plan to raise rates. how do you encompass that in your investment when looking at this stock, robert? >> well, the shipping lines are always planning to raise rates. whether they're able to do it is a different question. if you look at freight rates over the last 12 to 18 months, they've been rel ofly stable if you average them out over a quarterly basis. we actually expect that to remain the case going forward. there is balance taking weak at the moment. it's difficult to see that changing while the balance remains weak. >> and with respect to the maersk line, they did lower the global growth forecast

minimally. were you surprised by that? >> no win wasn't sprieft. i think that's the trend we're seeing on the year. i think some of the benefits in the first half of the year were driven by restokting. i think we've seen that that eased during q3 and that's why maersk has become more cautious on its volume guide. after reporting strong quarterly demand, vodafone upgrades its full year earnings

outlook. vodafone is moving higher along with orange, telecom kp and others. >> this is more stemming the tide in losses in europe rather than good numbers. in italy, declines on the first quarter were about 16%, and that's improved to about 9.7%. so there's a stabilization going on in europe. and why is that? because that pulls so much money into their network in europe. so it's about 20 billion trying to upgrade their network, moving it from a 3g platform to a 4g. when people are 4g, they download about 50% more data. and this is where vodafone want to be spending their money. but apart from europe, which is, as you know, a mature market and a disk market where regulators have imposed kapts caps on fees, it's bright stock in emerging markets. you have places like india and turkey and deals going on in

kenya, which is the currency that is going on 16% about 18.5 million people use them now. so there's a lot going on with vodafone. but you shouldn't forget that the one attractive quality of voe da phone, bar none, is the dividend yield. they upped that today by 2%. this is a company that has a yield of about 6%, just under that. they had that massive cash payout to shareholders from their stake in verizon wireless. so i think investors are happy with this. there's no bad news. there's some bright spots. europe looks a bit stronger. the chief executive is on the line now currently working through the numbers. i think all in all, very interesting. and, plus, they're going into broadband and residential in the uk. >> helia, thank you very much for that update. still to come up on the

show, we hear from one guest who says italy is on the verge of a major rebound. we will cross live to rome for more after this break.

don't worry about the

strength of the dollar, fed policymaker charles plosser tells cnbc, the timeline won't be determined by short-term volatility. >> we shouldn't be responding to every wiggle in the financial markets, whether it be the exchange rate, stock markets or even an interest rate. upbeat earnings drive european stocks higher with vodafone launches a new broad backhand service. shares in henkel rally after the german consumer giant gift guidance. the ceo tells us the crisis in ukraine is hurting europe, but russia's economy remains strong. >> the surrounding countries are suffering significantly and we're seeing negative impact on the western european economies in russia. russia remains strong. europe is strong now. but germany is having the strongest growth since 2012.

>> we are seeing european markets move high they are morning. germany a little bit of an outperformer here, up about 0.4%. france and italy also in the green. we'll see a good gauge of stocks across the eurozone. that is helping a lot of multi nationals. you can see the index right now up about 17 points on the day. but hey, take a look at the one-month chart. a little bit of a recovery for the u.s. stocks, wilfred. >> let's move on to bonds. we haven't had any significant moves so far this week. the ten-year in the u.s. which isn't around 2.34%. the ten-year on the uk, 2.23% and germany 0.85%. but i want to move on to forex. the u.s. dollar is basically flat, others with dollar/yen has

moved significantly. the dollar strengthening 0.8%. the nikkei has surged over 2%. this is on news earlier today that they might cancel the second increase in the consumption tax which is expected to come soon and may cause a snap election. but in the last ten minutes or so, we've had flashes coming out of prime minister abe who has said there's no plans to call a snap election. and he has said that they window make specific comments on fx news and made steps needed to deal with the impact of the weaker yen. abe denied there are plans for snap elections and denied there are plans to cancel that increase in the consumption tax. barack obama says sanctions against russia are having a material impact on moscow's economy, but they have not changed the kremlin's approach towards ukraine.

this as pictures emerge from the east of the country showing a column of tanks. moscow has repeatedly denied it is supplying arms to the separatists, despite claims from kiev. ahead of the g-20 in australia, british prime minister david cameron backs the impacts of sanctions. they played down fears of a new cold war. >> mikhail gorbachev has warned that we're on the brink of a new cold war. that is not an outcome we believe to be inevitable, neither it is one that we seek. and i will make that clear to president putin in brisbane in weekend. but i will also be clear that if russia continues on its current path, then we will keep upping the pressure and russia's relationship with the rest of the world will be radically different. >> mr. cameron saying it will continue to up the pressure. what is open to up the pressure?

>> certainly, i think you can be safe in saying it would be on the table. if we continue to see what we're seeing in ukraine and that looks very likely. but at the same point, you also have to remember it doesn't seem to be moving markets much and it doesn't seem to be playing in the united states to a very great degree. and it's interesting, as well. you know, not too much real news is coming out of it. we know president putin and president obama have spoken at least three times in passing in the lai last day or so. supposedly they talked about ukraine, syria, iran. but at some point, it asks the bigger question, what is this really about? and at the same time, there are big things happening. they were tough talks and nothing really coming out of them so far. now there's even talk of an extension of the november 24th deadline. so big things happening. >> yeah. i was going to ask you what do you think is the biggest take

away so far for the apex summit. we had that wonderful exchange between abe as well as xi jinping and obama and xi jinping, as well. >> exactly. i think there are just little moments. we found something funny this morning and weren't able to put that video up that president obama seems to be -- on the wife. he puts a jacket on her shoulders. making that sort of huggy movement. at home, we didn't even notice. >> thank you very much. it was a very funny moment. hopefully there will be something more significant to come out of the apex summit overall. in japan, there is growing speculation that shinzo abe may call a vosnap election before t end of the year.

>> hey, wilfred. there still is a possibility that prime minister abe ma decide to postpone a planned hike following a uk poll. reporting that the coalition partner told his party to prepare for an early general election. others may -- as early as next week and a vote may take place on december 14th or the 21st. he said the japanese prime minister will decide on whether to go ahead with that unpopular sales tax hike after examining the outcome of the gdp data from the july to september period expected next month. ever since the april sales tax hike, the 8%, the recovery of the economy has been slower than expected. a series of meetings currently beelg held by experts on the sales tax increase will end next tuesday. according to a poll, 70% of the

public is against another sales tax hike. with abe's approval rating sliding, winning snap election is essential to keeping his power, the prime minister is currently in beijing attending an apex summit. he will come back to japan on the 17th. back to you, wilfred. >> thank you very much. now, germany is on the brink of recession, that's according to hans wernerson. speaking to reuters, he blamed an economic crisis in the bric countries for germany's woes. the comments came days before the release of third quarter gdp data, which could show the economy contracted for the second straight quantitier. >> he says the eurozone has lost momentum following economic situations critical. mr. mersch said, quote, it would be irresponsible if we weren't

to consider all options. italy, italian prime minister matteo renzi is boosting a fight to push through reform and pull the eurozone economy out of recession. more bad news yesterday as data received outpull falling 2.9% since last year. let's talk about that. marco join us now. thanks for joining us this morning. italy is faces challenges right now, but youth unemployment is north of 40%. do you think matteo renzi's labor reform plan will lead to improvement in the labor market? how does that, at the end of the day, revive italy's economy? >> good morning. happy veterans day to all the u.s. and english viewers. thank you seema for your question. they have been focusing on trying to stimulate labor hiring and the biggest obstacle has been the unions.

she has been obstinate in terms of coming down to negotiating terms and trying to help the italian economy get out of this serious significant difficulties. bear in mind that spain and greece have recovered to a certain extent. portugal has, also. italy is in a total quagmire. the reason for this is because of the obstruction of all the italian unions and vested interests, which is chesseling down one by one. >> and i suppose, marco, the question is since he came to power, and he did come to that, international investors were boosted by hi intention to carry out these wide reforms. two questions, are they intentions as good as we thought pe beginning of the year?

do you think they will have is to -- >> well, wilfred, first of all, his intentions are not good, they're great. i think it's a question of not if but when these reforms will happen. he's the first version of the italian prime minister under 40 years old and he has a lot more stamina than the old, geriatric -- that roouls ruled italy in the past. he is going to slam down these people and he is going to be successful in doing it. anecdotal evidence, he has two of the unions to agree with him. one is still refusing. he's gotten some entity, some organizations to come on his side and agree with him.

parties that otherwise would never have agreed with him are now agreeing with him. he has a lot of support from the italian electorate, which makes him different from his competitors. do you think it's fair that italy continues to bend the rules here? >> seema, that's actually a good question. italy is not overspending. if you look at the current account, they're actually not doing as badly as the journalists or the press would have you believe. the problem is italy has been on a negative growth trajectory pattern. just yet the results came out just went down 237% spending year on year. if spending stays the same, it's going to split out the limit. but in a normal environment,

these things wouldn't happen. another thing to bear in mind, with interest rates so low, thanks to the ltro and the qe, given that mainly all european countries by the european central bank, the cost of italy's funding has come down significantly. now, when you project these debt ratios, over 20, 30 years, these enormous drops in interest rates really come back and help the country in five, ten years' time. witness the fact that italy this year was going to have negative growth in 2015 wsh i estimated i would have zero growth. but it's going to explode in 2016 for the reasons i just mentioned. moving on to the banks in italy, some of which are due to report after the, i suppose the main question ahead of these

earnings, march mao, is whether feel banks have failed too much and will that allay the fears of the capital market? have they already, in fact, fixed the situation slightly? >> wilfred, i think they've definitely fixed the situation. witness the fact that most of what we're seeing now has dropped, i'd say, 50% in the last two, three months. it's seen as market cap is lower thank ubi, lower than mid year banker, which really are not very large banks. the viewers must know it's one of the oldest banks in the world. it survived the italian unification, world one one, world war ii, the absolute pillaging of the italian economy by politicians and it will survive again this time.

they have been assigned a 1% satisfied by the sfb yesterday. one of the reasons why i'm optimistic is people are looking at the equity. what really one must look at is what the debt is parading at. ironically, the debt has gone up in price. so people invest in the bank because it's going to survive. >> marco, thank you very much for joining us. much appreciate it, partner at advicorps. >> thank you, wilfred. thank you, seema. still to come on the show, all the single ladies, or single lads, it's time to celebrate. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company.

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alibaba founder and ceo jack ma has confirmed the company financial services arm alleypay will definitely go public, although he's declined to give a timeline for the listing. the comments came as the e-commerce giant announced it has sold about $2 billion worth of goods within the first hour of trading on the annual singles

day shopping festival. eunice is now live at alibaba's headquarters with the latest. tell us about the excitement around singles day and what you're witnessing at the headquarters of alibaba. >> well, there's definitely a lot of excitement. this is seasonally very important day where the company is watching around the clock for 24 hours how the sales are doing. you mentioned jack ma and that interview that he had here at the headquarters. in fact, sticking to this state broadcaster of cctv, he did say that alley pay would definitely go public. he also said he hoped that listing would happen on the mainland. as we were noting, he didn't give a time frame. he also didn't say on whether or not it would be al ipay or its parent. he did say he regretted alibaba

had to list in new york instead of here in china. he could potentially see quite a bit of demand. i'm not sure if you see the clock behind me, but already they have clocking up $7.2 billion in sales and we still have another six hours of the clock. a lot of people have been expecting alibaba to exceed last year's number of 5.8 billion. the tuck has been that it could be 8 billion. at this point, it looks like it could potentially exceed that. now, this day, singles day, b is very important. it was traditionally a day when a lot of single people would just celebrate themselves. they would buy themselves gifts, go on blind dates. but eventually that morphed into a day where people would celebrate the chinese consumer. alibaba had a really big hand in that. in fact, alibaba has been

marketing steep discountes and that's pretty much what everybody diop line has been talking about, the massive discounts they could get on purses, on dresses, as well as mobile phones. wilfred. >> eunice, thank you very much for that. do stay tuned on cnbc throughout the day. david faber will be sitting down with alibaba's founder jack ma for an exclusive interview. wilfred, it is game on in the battle for holiday video games. this week, microsoft, ac at thisvision and ubersoft are all out with different franchises. >> microsoft releasing halo, providing gamers with a sneak peek ahead to halo 5. keep in mind, microsoft shares up about 30% for this year. the historically assassin's creed story continues.

unity is based in paris during the revolution and seems to be exciting fans during the franchise. that is also up today. and on thursday, activision release tess fifth expansion of the world of wars franchise. activision shares up about 17% year-to-date, wilfred. >> thank you, seema. and sticking in this area, of course, is the idea that traffic is very relevant for all of these companies. barack obama has approved the strongest possible rules to make sure internet rules are equal for everyone. his comments triggered a sales of shares. time warner cable off by 5%. the dissengz comes after internet companies would provide communication fast lanes.

>> ever since the internet was created, it's been organized around basic principals of fair ps, openness. there are no gatekeepers, there are no toll roads on the information highway. this set of principals, the idea of net neutrality has given innovators the chance to plot. >> i do think this is a very interesting topic. companies which use more and more data and they're getting pretty cheap rates to do that. i wonder whether this is a ploy of the president. he is doing something that will be popular with voters, with consumers. ahead of a republican-dominated congress, i can't imagine this is going to get pushed through. >> an lichts were quite surprised to see president obama calling on the fcc to set strong rules to protect natural

volatility. where he saw cablevision, time warner and r and r a. >> it might be able to draw that's charges. nonetheless, we'll have to see if a republican-dominated congress allows this to continue. moving on, a pair of mike ross cow paintings sold for more than $75,000 in new york monday night. they were owned by rachel bunny arpd. melan was a close friend of jackie kennedy. pepsico has first experimented with a new mountain dew flavor that ip corp.s the narcho cheese chips.

the results? dew-ritos. the verdict? one student says it honestly was not that disgusting. wilfred, this sounds intriguing, i have to say been we can't judge it. we have not tried it. but what would you say? we had a taste test here. >> i'm judging it without trying it. it sounds disgusting. >> i know. it does not sound good. typically you have those separately, not together. >> a quick update on european markets, strong earnings out for vodafone. slight gains across the board. let's look at forex markets. the u.s. dollar has just bounced back significantly against the yen. you can see a move of 116.

an increase of 1%. nonetheless, 1% higher. let's get a quick check off u.s. futures. the s&p 500 and the dow hitting new all-time highs and closing at record highs in yesterday's trade ahead of that all-important retail sales number later this week. right now, we're looking at the s&p higher, dow jens up 18 points, nasdaq trading at a 14-year high also in the green. and stay tuned. after the break, we'll be heading out live to the ubs congress in london. we needed 30 new hires for our call center.

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welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. >> u.s. futures point higher after another record close on wall street as dow transports lead the way higher. >> don't worry about the strength of the dollar, fed policymaker charles plosser tells cnbc the central bank's rate timeline won't be determined by short-term volatility. >> we shouldn't be responding to every single wiggle in the financial markets, whether it be the exchange rate, stock market or interest rates.

natural gas prices slide as forecasts suggest the chill may be contained. $6 billion and counting, alibaba firmly on course for record-breaking single day sales as chinese consumers snap up diop line bargains. cnbc speaks to alibaba co-founder later today. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and it is singles day in china. that could be a big boost for alibaba sales. >> all right this year beating forecasts. comparing it to the big sales days in the u.s., it puts them to shame, really. and if anyone needed a reminder,

for alibaba in its core online e-commerce market just in china, today is a great indication of that. >> absolutely. take a look at the premarket trade. the dow joins industrial currently up about 20 points in premarket trade. the s&p 500 up just about 2 points. that's coming in ahead of a dose of economic data that we will be getting out. later this week, we have the eurozone gdp, and later this week, a good gauge on the hope of the u.s. consumer. on that note, let's take a look at the cnbc global 300 index. we did get that inflation data out of china yesterday which did help markets move higher. individual european markets, you'll see it is green across the screen. being helped by better-than-expected earnings. ahead of that eurozone gdp data, that, of course, is a question whether that will come in better than expected and if markets will respond. right now, the ftse 100 up about

10 points on the top of the stoxx 600 index. we're looking at gains across the screen for france and italy. so, really, a positive day here in europe. will that translate to u.s.? which, of course, futures are indicating. >> futures pointed positive here, but not pair european markets. slightly in the green. let's have a look at bonds. and the u.s. bond yield, which we have in fact got here around 2.34%. we've seen yields just pick up a little bit. the risk on trade has taken a slight set back since friday's uninspiring jobs numbers. in general, still positive. let's look across at forex. the u.s. dollar has just gained, but only slightly against most of the other currencies. as you can see, around about a percent gain in the u.s. dollar. we're at 115.9, just shy of that 116 handle. and that comes off the back of that this morning. that and prime minister abe was

considering scrapping the second increase in the sales tax and possibly calling a snap election. having said that the last half an hour or so, he's been speaking at the apex summit to deny both of those rumors. nonetheless, as you can see, the yen has beakened around the back of that news. seema, back to you. >> wilfred, nouriel roubini says he does not think the fed will hike rates anytime soon. factors in weather inflation and the rest of the world is worse than is currently striking. >> it could be sometime in the middle of the year, could be june, could be july. it depends very much on that and the dollar what happens to the rest of the world. also, the fed wants to have an option value of rating. even if inflation employment are at the right level to start hiking, the fed would like to wait a little bit longer just to make sure that if they start

hiking with the lift off, they're aborted and they can go back to zero. in other words, they lose their credibility. now, carolin spoke to charles plosser, president of the bank of reserve of philadelphia and asked if the fed was worried about volatility in asset prices. >> we shouldn't be responding to every little wiggle in the financial markets, the exchange rate or stock market or even interest rates. our job is not to suppress volatility, not to suppress the adjustment of asset prices. that's not what our job has to be. we need to keep our eyes focused on our longer term objectives. monetary policy works with a lag and we can't allow ourselves to be whipsawed day in and day out by what happens to the financial markets. >> carolin is at the ubs conference in london and joins us now with more on the central bank feed. >> yeah, absolutely.

from one central bank to the next, let's talk about the ecb. i'm joined by lorenti, a former executive board member. they shouldn't be too worried about what the s&p 500 is doing. the message from the ecb would be very much the same. we don't look at the exchange rate. of course they do, don't they? this is something that they should be very happy with. >> that is part of their job. the lower in the euro, the less quantitative easing you need to do. >> about quantitative easing, this is what the market really wants, not just any quantitative easing, but unlimited bond buying. this is what the markets have been calling for all along. it simply isn't happening in the euro world, is it? >> unlimited first is too much. i guess you need to have a target. we started -- the ecb started

with private bonds, private assets, asset-backed securities. and the key question is are there enough private assets to get where the ecb wants to go? which is 1 trillion more than today. at some point, the ecb will have to consider what has already basically understood that clearly by government bonds which is, of course, the biggest market in europe. how do you do that? responds, with maturities, that needs to be discussed. my guess is very quickly, the ecb will find out the balance sheet just for buying. >> the problem, though, is indecision in europe. mr. national aleaded to that once again this morning saying there hasn't been any decision in buying bonds. this is exactly what paralyzes

the european decision making, isn't it? >> well, it's not easy. it's not like in the u.s. you have one treasury. in europe there are 17 or 18. so what with -- difference assets, different quality, they are not all aa as. and in some parts of europe, low interest rates are considered a bad thing. because the net savers look at their rates, interest rates on their assets with this coming down. they think this is just monet e monetizing. they don't understand low interest rates are the results of failure in europe. >> ben bernanke alluded to this last week. so does mr. draghi.

interest rates are so low and you just mentioned that, too. they're already so low in europe. why is it investors still expect it because the effectiveness of any government bond buying has been negligible. negligible on the currency. but you need to reduce rates on more risky assets, corporate bonds or government bonds of risky countries. we need to bring all these interest rates down because with zero inflation or very low inflation, interest rates are too high. >> we get third quarter gdp numbers on friday. it's probably not going to look

very pretty. could this be the tipping point for the ecb to decide, yes, we're finally going to do this or when will that point come? >> i guess in a couple of quarters, which brings us to 2015. i think you need to convince people in the north of europe that excessive saving is going to hurt them. and that the low interest rates are not produced by ecb. they have the result only excess of pit. so unless the man picks up and unless there are policies will need to move up. how long did it take for the central bank of europe to understand this? the quicker the better, i guess, because europe is getting into an inflationary environment, which is very dangerous.

>> i'm afraid we're going to have to leave it here. we'll continue that discussion at another time. thank you very much for your time and we'll have plenty more coverage from the european conference in the next hour. >> brilliant interview, carolin roth. thank you so much. let's take a look at the other top stories at this hour. s&p plans to add a new stock sector for the first time since 1999. real estate will be added as an 11th sector in august of 2016. real estate is currently a subset of financials. s&p says the elevation is recognition of the position in the economy. this is a video from michigan's upper peninsula, which is forecast to get up to two feet of snow by wednesday. arctic air is expected to sweep

across the rest of the nation in the midwest and northwest. natural gas prices fell more than 3% on monday. coming up, we speak to the ceo of aeon. that's up after the break. and u.s. commemorates armistice day today. it's the 11th hour of the 11th day of the 11th month. people across the continent will fall silent. we'll leave you with these live shots where the annual ceremony is taking place.

welcome back. let's give you some headlines. u.s. futures are point to go a higher open. alibaba breaks its own sales record for singles day online shopping event. and oil's hamm is ordered to pay more than $1 billion in a divorce settlement. >> barack obama says sanctions against russia are having a material impact on its economy,

but they have not changed the kremlin's approach to ukraine. this says pictures emerged from the east of the country showing a column of tanks alleged to be fighting for the pro appreciate y'allan rebels. now, global markets may be trading at new highes especially for u.s. stocks, but there is a lot of issues out there. greg, wonderful to have you in studio. >> great to be here, as well. since the jenning oovt month, the markets have rebounded. still, some of these risks are still out there. what is the problem for investors? >> well, we're very fortunate. we probably touch more companies every day on the topic of risk

more than anyone else in the world. nearly across 120 countries. a couple of things are really emerging. 2016 landscape is evolving. the pursuit of opportunity absolutely requires a greater understanding of risk there than before. risk and opportunity are absolutely linked. and we're seeing clients have to bring that out. things like the cyber impact. our clients are seeing a package of this, the likes of which they've never seen before and they're going to have to address that if they're going to produce their opportunity successfully. >> the top three risks were economic slowdowns and increasing competition. interestingly, you point out in the reports that these ranking of the top three does point to the systemic nature of these risks and the very high interdependence between them. so those three risks in

particular, you highlight one of key pieses. it's not just the component of risks. so in the global war, even if the client is about to decline, they also are impacted by the global than more than we've supported. they've discovered they've bake dollars in more toll lilt. then this idea of efficiency and volatility, yes, these are connected more than ever before. >> but your clients -- >> on the horizon, do truly come up. you talked about alibaba and $8 million of potential sales. think about that opportunity and think about our clients, with

the risk that's come with that around cyber threats. >> the economy in the u.s. is strengthening, growth higher than 3%. when you think economic slowdown, what do you think they're referencing? >> if you're a client in a specific market, you're worried about the growth prospects. the thing is do i truly want to sur sue this? >> already. greg, thank you very much for time. >> it was a pleasure. thank you. juniper's ceo resigns. he was hired away from barclay's. he had to deal with jama to

about 25 months, it is up 24.5%. google will use land to base aviation and robotics projects. google will manage the company which includes a private golf course and a hangar build to house navy air ships n 1930s. who knew google was operating in that space? i didn't. very interesting. in frankfurt, trade today up under 0.5%. alibaba is looking for a big boost in singles day. will this be a holiday that will be celebrated internationally in the coming years? that's coming up next.

and it's game on in the battle for holiday video game sales. this week, microsoft, ac at thisvision and ubersoft are out. microsoft releases halo, combining remasters verges of halo one through halo four all

in one platform. it provides gamers with a sneak peek at halo five. microsoft shares up about 30% year-to-date. ubersoft is trying to make amendments with the assassins creed. the game take place in paris during the revolution. ubersoft is up, as well. and on thursday, world war of gamers. activision shares up about 17% year-to-date. wilfred. >> thank you, sooch ya. sticking on a similar tech theme, barack obama has called for the strongest possible rules to make sure internet fees are equal to net knew translate. his comments featured a sell off of cable companies.

table and they willy come to allow as to lanes. >> ever since the internet was created, it's been organized around bask principals of openness, fairness and freedom. there are no gatekeepers deciding which sites you get to access. there are to toll roads on the information super highway. this set of principals, the idea of net knew translate and given innovators the chance to throw. allibaba has confirmed it would go public. it has sold about $2 billion worth in the trading on the singles seas festivals. >> what do you think is the best

single gift for someone to buy themselves? ariele tweeted in about will, poor will, give him a hug. then come around to our gaffe ma mates. >> what is that? >> if you want to comment, worldwide@cnbc.ko come owex. i don't know if there's anything country can put at quiet. you're single now, as well, right? >> okay. yes. what are you going to be buying for your. >> a bit of ice cream, bow nuts, burgers, food is always the answer. >> jewelry, why not? >> get in touch with us. what would you buy yourself if

you're single and feeling down to give yourself a boost? stay tuned because david faber will be sitting down with alibaba's sclies i have jack ma. and till to come of this show, an arctic blaft is point to go a warmer winter this year. and a quick look at futures pointing to a higher open, this after wall street closed at record highs yesterday.

thanks for watching "worldwide exchange." >> hesitate are your headlines from around the world. >> the dow transports index leading the way higher. bother the strength of the dollar. charles plosser tells cnbc the central bank's rate timeline won't be determined by volatility. >> we shouldn't be responding to every little wiggle in the financial markets, whether it be the exchange rate or stock market or interest rates. arctic weather across parts of the u.s., but natural gas prices slide as forecasts just a chill may be contained. sgldz 6 billion and counting, alibaba firmly on course for record day of sales.

cnbc speaks exclusively to alibaba jam jack ma later today. and it was another big day of closing on wall street. by the way, year-to-date, the s&p 500 up just about 10%. so stocks have been able to come off the lows that were reached in october. we are looking at futures higher across the board. trading well above 2000, up in premarket trade. and the nasdaq trading at its highest level since 2000. up also in premarket trade. earnings will continue to play a big role in the u.s., plus retail sales numbers due later this week. let's take a look at european

markets, which on the back of better-than-expected earnings have been able to look at gains. we're looking at the ftse 100 up just about 10 points. germany up bl 20 points ahead of that critical gdp data coming out later this week. france and italy also in the green. we're going to take a look at the currency market, because that's where we've been seeing some moves specifically in the yen. the dollar slen yen trade right now, higher by around 1%. and the euro continues to fall right now below 1.25. we did get those comments from mario draghi on ways he would like to revive the european economy on the back of that. we did see the euro continue to weaken. >> carolin spoke with charles plosser and asked if they were

worry about volatility in asset prices. >> we shouldn't be responding to every wiggle in the financial markets. our job knot to suppress volatility, not to suppress the adjustment of asset prices. that's not what our job happens to be. we need to keep focused in monetary policy. we can't be whipsawed day in and day out by financial smkts. >> now, seem yeah, he's saying the fed can't so he single -- and even recently, middle of october, we had that step up in volatility. >> the fed has been quite vocal as the market endures market volatility. interestingly enough, just last friday, dudley as well as yellen

said expect market volatility to continue, especially as rates normalize. clearly, future volatility is the name of the game. the question is how will that impact stocks? we did see a marketable recovery over the last few weeks, despite that sell off in october. roubini was saying yesterday, i cannot see the fed tightening until well after we've seen all the data quite strong for quite some time. it's not going to be an immediate response. the central bank. >> that will be something traders will be watching. let's get out to our own carolin roth in london. over to you. >> to be honest, it's been failing down beat, seemed very

bleak. whether the disinflation is concerned and as far as the slowing growth is concerned. as i just mentioned, some of the comments this morning that would have been getting from my guests is very down beat. do you have any better news for me when you talk to your clients? >> yeah. i think part of the challenge here is that we're entering a very different global growth model. in the past, it was u.s.-drove consumption and emerging markets and particularly china drove out to meet that consumption. and yornlg we're going back to that story in the united states. and a consumption story out of asia eventually. by in the meantime, that means

cloeg growing, which i think concerned a lot of people. you say any bottoming out that we're seeing right now, any sign of improvement, that would be too prosecute mature to call it the actual recovery. we're going to have to wait a couple of quarters, don't we? >> i think we may have to wait a couple of years. china is facing a serious economic adjustment in its growth model. i think people are always looking for next quarter, somehow things are going to turn around. i think things are going to get worse in china before they get better. that's going to open up net demand globally, which is critical.

>> are these predicated on growth that is above 3%? >> i don't think so. i think right now we see a situation where the united states is having trouble getting beyond 2.5% of growth. but this year in the market, almost all of the games in the s&p 500 have come from improvement in actual earnings. earlier this year, i was concerned because we were seeing valuation expansion without earnings improvement. but this, by the end of the year, i think the picture has really changed. it's based on actual improvement and company performance. >> i want to get your take on the dollar. mr. plosser said he's not concerned about the strength and the rise of the dollar. i guess the consumers in the u.s. wouldn't be, the treasury, it wants a stronger dollar. can they be comfortable with the

strength of the dollar that we're seeing right now? >> the dollar is a bit of a double edged sword. we saw in september the trade deaf lit so expand. that goes against the rebalancing stories that i was telling and maybe puts a cap on u.s. growth. but at the same time, cheaper oil prices in particular mean that the u.s. consumer may have more to spend. so i think what it takes away from wuven it gives to another. >> maybe ushd be glad you're in london right now because we're seeing more storms coming our u.s. viewers way. seema, back to you. absolutely. winter does not officially starts for another six weeks in the u.s., but this is a adviceo

expected to bring up to two-feet o snow thursday. temperatures could fall 15 to 20 gris below normal. nat gas prices fell more than 3% on monday as twraders launch profits after a string of gains ahead of the cold weather. i was sent out into the cold earlier this year when a blizzard hit new york city. we looked at some of the companies and stoms stocks that sand to benefit from colder weather. and interestingly enough, wilfred, netflix, because of the cold weather, you found -- analysts found more people were staying inside and, therefore, streaming hours went up. >> i can see that. i suppose i've never thought about trading specifically around the weather. now, other stock specific news, juniper is resigning.

shegan's departure came a year after he was hired away from barclay's. during his tenure, he had to deal with the pressure from activist investors parker to cut costs and make strategic changes. juni pe r is up 25% on the year. now, google has sign dollars a $60 dollars projects. google will manage the property. google, trade in further further is about 0.04%. are you a drifter born to walk alone? don't waste your time. the singles day sale is on. how alibaba is tapping in on

this frenzy, coming you next.

are you single? china has the answer for you. celebrated on november 11th, singles day is for the unattached where those without a boyfriend or a girlfriend can treat themselves to gifts.

and a dominant player online in china is alibaba. last year, it took in a staggering $5.8 billion in sales on single is day. transactions today are expected to surge 40% to a record 8.2 billion dollars in spareson. at aing a look what we see in the u.s., the online shopping day after thanksgiving is where you pull in about $1 is.7 billion. taking a loot shares of alibaba, they have been on the move ever since the company went public in september. september 19th to be specific. the stock up about 4% today. since it went public, wilfred, just up about 27%. >> very strong valuations for alibaba. but if ever we need a fuftfication for that, today's steals are a good reminder. that is coming up at 10:00

eastern type. eunice joins us now with more. >> thanks, wilfred. everybody is excited about that interview that is coming up later today. singles day is a seasonably important one for alibaba. we have about five hours left to go and already the sales have reached $7.4 billion. so that is already exceeded last year's record of 5 .8 billion and it's on target to either meet or exceed a lot of people's specations that alibaba would sell $8 billion worth of goods on this day alone. now, this day, singles day, was a commercial holiday. the holiday actually was -- a lot of people say that it started because of a couple of guys who were a little bit lonely and sad that they were single. so they decided that november

11th would be the appropriate day because there's 1-1-1-1, you know, all these single guys together so that they could celebrate their seen life. that started with people buying gifts for themselves and eventually became a holiday celebrating the online consumer. everybody has been talking about big bargains that they've gotten on handbags, purses, as well as electronics. >> eunice, thank you so much. there is one person not celebrating singles day today. that is harold hamm, the ceo of continental resources who has been ordered to pay nearly $1 billion in a divorce settlement. hamm's ex-wife will receive over $320 million by the end of the year followed by monthly installments of $7 million. that's quite an amount of money

there, wilfred. >> if i was jack ma been i would be getting in charge with harold hamm and encouraging him to become involved. >> it's not just a holiday celebrated in china, but potentially something we could celebrate in the u.s. and the coming years. >> i think it's a great idea. i don't think the exact date will work in europe because it's another significant day, of course, today, which is armistice day. but i think it's a very good idea and it clearly is a fantastic boost is for the online retailers in asia. moving on, u.s. retailers may be the first business group to be -- by republicans since the party's huge gains in last week's midterm elections. hampton pierce joins us from washington with more. >> hello, wilfred. this is a different kind of online retail story, if you will. house speaker john boehner vowing to block a bill to give

u.s. states more power to tackle diop line sales. on monday, he said, quoting now, at the speaker has said he has concerns about the bill and it won't move forward this year. it stalled in the house. it would allow states to collect taxes on purchases residents make from out of state retailers. currently, they can only collect taxes from companies that have a physical location within their border. backers are stip still hoping to get the lame duck session through. the bill may be folded into another piece of must-have legislation. now, that bill is strongly supported by traditional brick and mortar stores, like walmart and target. they have collect taxes on online sales because they have operations in the states that

sales taxes. they say they want to create a level playing field where online rivals, such as ebay and overstock, the same sales tax burdens which ranges from 5% to 10%. many conservatives complained the bill amounts to a new tax by expanding the state's authority and enabling them to collect taxes via online businesses in other jurisdictions. if the bill isn't revived, b gas taxes will go up in at least two states, virginia, maryland, where lawmakers have linked passage of the sales tax formula to calculate highway funding going forward. >> hampton, thank you very much. >> you got it. let's take a look at the other top headlines at this hour. following another record day on the s&p, u.s. futures are point to go a higher open and alibaba hit sales records for the singles day online shopping event. >> and oim tycoon harold hamm is

ordered to pay $1 billion in a divorce settlement. at the 11th hour of the 11th day on the 111th day of the 11th month, i'll heave you with a popular toto. xkç

welcome back. let's have a look in on european markets. we have a laterally today that posted small gains across europe. it's the same theme today. small gains across the board, but for no particular europe wide reasons. we've had strong earnings from the likes of henkel and vodafone. france leading the charge up nearly 0.4%. u.s. futures point to go a higher open, this after wall

street closed at a record high. let's bring in ed, the u.s. market strategist at ned davis research. what's really interesting about the rebound that we've seen in u.s. markets, the outperformance of the transports index many times a leading indicator for the market. but at what point do the railroads and airline stocks look expensive. >> i think we have a little bit of room to go in that area pap big input cost for them is oil prices. oil prices are going to help their margins. so you have a way to go. >> if we look at the market moves that we've had in the last month in particular, how important was it that we had a strong earnings season, given the multiple sxans expansion we've had for 18 months preceding it? what's the earnings growth we've seen crucial as opposed to being a positive surprise? >> it is crucial. if you break it down a little bit further than just the normal multiple that everybody quotes for the s&p, if you look at the median pe, that is at its highest level that we've seen in the past 60 years if you exclude

the bubble period in the late 90s, early 2000s. so the multiple expansion period is over. you really need earnings growth to go higher. >> in a rising rate environment, technology typically outperforms. do you think that will be the case over the next couple of months? can technology, the sector in general continue to rebound? if so, which areas? are you looking at large cap or small cap names? >> first of all, we're not looking for rates to rise too much in the last few months. but regardless of that, we think technology stocks could do very well. in a low interest rate environment, it's an area that can grow dividends. but that is large cap story, not small caps story. definitely large cap over small cap. >> the russell 2000 now rebounding at a four-month high. this was small cap index which basically got crushed in early october. you see small caps, which is a mostly domestic oriented name especially in the u.s. economy continues to improve?

>> what we've seen over the last few months i'd categorize as a dead cat bounce. they did underperform by over a thousand basis points going into october year-to-date. they've had a little bit of a rebound, not enough to call it sustainable at this point. and the stronger -- the stronger dollar, stronger u.s. economy is a small positive for small caps. but a lot of these companies still get a decent amount of their profits overseas. so it's different than what it was ten, 15 years ago. >> given that u.s. markets have seemed to come through the end of qe3 without any real significant pullback, are we now in a sweet spot for equity markets in the u.s., at least until equity markets go up? >> yeah. i think we have room to go. usually it takes two to three rate hikes before it cause aes problem for the market. we're looking for the first rate hike in june. it could be six, nine months before interest rates are a front burner problem for the market. >> what about this cold weather that is expected to head to the east, east of the u.s., that is? how does that impact the market?

do you see utility stocks benefiting from this? >> yeah. companies that can handle the higher and colder weather without having to worry about less shopping and so forth. they should do well. but keep in mind, last winter was so cold, as well. so on a year over year comparison basis for earnings and for overall economic growth, it shouldn't be as big of a deal. >> could the cold weather be a catalyst to stop the decline we've seen in energy stocks recently? >> it could be. when you're support on oil, anyway, if you look at the cost structure for shale oil wells, it's between $60 and $75 on wti where it becomes cost ineffe ineffective for them to drill. so we're near the point where i think we would see support, anyway. the weather does help. >> ed, thank you for that. before we go, we'll have a quick look at u.s. futures, which are pointing to a positive open across the board, as you can see. that is all we've got time for

here on "worldwide exchange." i'm wilfred frost. >> i'm seema mody. thanks for watching. happy singles day. "squawk box" is next.

good morning and welcome to "squawk box." alibaba smashing records overnight. the e-commerce giant pulling in more than $7 billion in online sales today alone. close encounter, president obama and russia's vladimir putin cross paths at a summit of world leaders in china. and speaking of frost, an arctic blast. millions of americans being hit with heavy snow and freezing temperatures. as the climate continues to change on a daily basis. it's tuesday, november 1 1st, 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. 7 million people are under winter storm warnings throughout the upper midwest in the united states today. the frigid temperatures are expected to reach the east coast later this week. we'll have a live report from the weather channel in just a few minutes. first, bad news out of hawaii. that river of molten lava has finally consumed its first home. there's never been any doubt about how hot lava is, but check out these pictures. the lava completely incinerating this home. plumes of smoke could be seen for miles. corporate news for you this morning, this one surprising me, joe. microsoft announcing its first lumina smartphone without the nokia