president obama and china's xi jinping reach a deal on climate change. let's update you on the bank's charges as we just head to the top of the headlines the uk levied fines against ubs, jp morgan chase, citigroup, rbs, hsbc and barclay's. as you can see, the stocks in general off, but only off slightly. barclay's is not included in the

fines as it was working with the fda on an fx settlement. sources told cnbc it pulled out after issues with the u.s. regulators. >> that's why the u.s. regulators are holding a press conference at any moment. joining us now, marc ostwald. heel ya is also joining us in studio to give us more on what just happened. also, i would love to get to know your biggest take away on the fines that have been charged. >> the consult temperature still has major, major hurdles and i think everyone would degree. we've been the chairman of ubs talking about the culture still hasn't repaired problems still within the investment bank and lots of action needs to be taken. remember, we have been talking

about the fx probe for a while. we had expected a fine in terms of the uk authority of around a billion pounds. it's come in just above that for the uk. the exception, though, of course, is what's happened with barclay's. they pulled out 11th hour and we understand that's because of an issue they have had with the u.s. regulators. remember, the u.s. is not just one regulators, there are a whole bunch of regulators, including the dfs and the head of the dfs we'll know in this country because it's benjamin lousey. and from what i understand, there's a bit of jostling in terms of fines and in terms of payments and barclay's is thought to have decided that it was in their best interests to first deal with the dfs before signing an agreement with anyone else. >> barclay's down about 2% on the day. you cover a lot of these banks. what are your thoughts on the fines that have taken place? will this be enough for banks

and regulatory forces to come in and ensure these type of manipulations don't happen again? >> there are two things. one, looking at the fines themselves, turret part of the fine is much, much greater than the actually breach part of the fine. and looking at barclay's, it is an interesting situation, i think. i think if they've been looking at a fine that was reasonably close to the provisions that they set aside against forex, that they would have -- they probably would have taken it. my function is that, actually, the potential fines they might have been looking at would have been greater. >> uk european regulators, they were in the same point and as we saw with other banks, the issue was what happened in the u.s. remember, this is the biggest fine ever leveled by the uk regulator.

in fact, a press conference that we're about to head to that we've been talking about is really the first style of press conference we're seeing from the uk regulator. very similar to what we have all the time in the u.s. with regulators coming out and now saying the results of these major probes, the uk has led on the fx probe. remember, it's a 5.3 trillion dollar business, 40% of it goes through london and the fca has really led on it. >> mark, i want to bring you in here. is this politics on these fines? >> there has to be. it has to be seen this is a prosecution which is full force. however, we do need to be a little bit careful here. regulation is getting extraordinarily heavy handed. we are destroying what i'd call the processes of financial market intermediation, i.e., market making and underlying market liquidity. and in the long run, that will push more and more money into the shadow banking sector.

secondly, i think people also need to remember in the case of the uk, the banking sector has been a major contributor in some facets. the huge volume of fines is not just for this, but for all the other things that have been levied on the banking sector will be deducted against future profits for very long time just when the uk budget needs more revenue. >> george osborne has collected a nice 2.3 billion pounds thanks to libor and fx. this is money that until 2012 would have stayed within the banking community because the regulator would have kept it like in the case of the u.s. and would have used it to lower fees for regulated businesses, but that's changed. >> in fact, the uk regulator, the fc as we've just told you is speaking now. let's listen in to what they had

to say. >> thank you, martin. martin, has the microphone just to make sure we can catch you. >> two questions. the banks that haven't settled in this helm, can we expect to see greater punishments for them? is there any advantage and secondly do the firms that we've expected now, does this represent the defenders or are there more to come? >> the settlements we reached today with these five firms, we have said in our presses this is where we found the worst misconduct and the program work which martin referred to that we're putting in place across other firms will ensure that they put their victims in order.

clearly, it's not possible to speculate as any subsequent investigation that might happen. >> okay. thank you. is there a way of estimating how much activity and how much profit banks made from it? >> what we've found in the notice we sent out is that the system controls attempts to regulate markets. sometimes that would have been up, sometimes that would have been down. the ability to quantify that for individual clients is, frankly, not really practical and which is not something that is -- for our case which is around the way in which our traders were controlled. >> that was the fca press conference. we'll be going back to it over the next hour. how did this impact the upcoming earnings season? do you think these banks have

enough cash set aside to build up these fines? we had bofa as well as citigroup. what are you expecting next quarter? >> well, i mean, next quarter and also the past several quarters, there's been a pattern that the fines seem to be pretty close to the earnings, the profits that the banks generate. what is interesting is the banks' fines are a decent earner for the government. it's obviously not a quid pro quo. what would be very interesting is to see the actual methodology by which these fines are calculated and how it really hails with the actually

penalties. >> at rbs, three people have been suspended, six people are currently being investigated within a disciplinary process and 50 people are taking part in the overall internal probe that's going on with rbs. but none of the kind of protections that are offered to the banks through this deal is offered to those individuals. so if they are found guilty individually of misconduct or illegality, the fda will go off with them. >> i think criminal investigations can still be brought. we know what the size of the fines are. they're not big for the long-term future of thinks banks. they did announce they will carry out super remediation programs for firms to drive up -- and market. they don't know if there's an end in sight for all the spread

tech. >> i think that's one aspect. the first aspect is if you've got the regulator bothing down your neck the whole time, the likelihood is you'll shy away from a lot of bit a lot of times. there would be people who will widen spreads out as a result. secondly, as you say, if this goes on for a very protracted period, the damage will become intrenched. that's not a good thing, particularly as we go into a rising retirement environment. >> what is the debate about whether regulations in the u.s., for example, against market making have made liquidity so low that you get this incredible volatility. i think in terms of the ongoing process for banks, they have half of the accounts in london probably sitting in their offices controlling for ppi

claims or interest rates or, remember, the big fines that goes against retail customers that this is a smaller amount individually when you look at the banks. remember that on ppi, the uk banks have faced over 20 billion pounds worth of charges. that's a much bigger quantity than we're talking here. >> and does that change your indicator on these individual stocks? >> in some ways, no. i've been quite pessimistic for quite a while. but it's worth noting that the language the fca is using in the statement today about forex is really all about changing the culture and the trading floor and making it a fair market environment for, you know, small investors and retail investors. that's probably, in part, a lot of change in terms of the actual processes, but it's really hard to pin down in terms of what rule to follow and what rule to not follow kind of thing.

and -- >> especially if there is further cultural change. we're going to leave it there. sandy chen, marc ostwald, thank you for your time. give us your thoughts, as well. worldwide@cnbc.com. keep in mind, the s&p 500 financials index up about 10.3% in line with the s&p 500. wilfred. >> let's have a look at european markets. so far this week, we've been eking out gains, not really based on any fundamental positivity. today, that has rebounded the other way. we did actually have very, very slightly down at the open and it has got worse throughout the course of the trading day. we're down 0.7%. not that surprising when you

talk about the volatility, also the uncertainty we have ahead of the uk releases today, some european industrial production later today and eugdp later this week. we're down 0.7% on the stoxx 600. the stoxx 50 is down 1.1%. some of the bigger cap stocks suffering more. let's look across the different bourses in europe. the ftse 100 is down 0.4%. germany is down 1%. france down 0.85% and italy down 1.76%. we'll bring you some news out of the banks earnings stocks in italy a bit later. but as you can see, these huge fines levied on the banks but only slight withdraws in the european markets because the bank fines were expected. let's move on and look at bonds. we're at about 2.33% on the u.s. ten-year. so far in november, we've been range bound between 2.3% and 2.4%. so it's a little less of a risk on trade than we had in

september, but a little more of a risk on trade than we had in october. germany, 0.81. the uk 2.22. let's look at forex rates and there's not much happening in forex, as you can see. the u.s./u.n. paring at 1.2463. we will go and join sri now for an update. no, we won't. in fact, we'll be getting an update on asian markets a bit later in the show. seema. >> that's right, wilfred. now, coming.on this show, as the bank of england looks to get set, we ask adam rosen when he thinks the central banks should raise rates. and can disappointing retail earnings take a -- out of the market? we look ahead at jcpenney and

m macy's.

the japanese nikkei has touched a seven-year high on hopes that prime minister abe

would look at tax hikes but a government spokesman deny that a decision has been made. sri is now live from singapore with the latest. sri. >> hi, seema. that is one of our top stories today. the nikkei at the close has backed off from those session highs and backed off from the seven-year peak. you've got to ask yourself as a distinct lack of charity over whether the japanese government will post the sales tax hike and the market is also trying to get a handle on whether prime minister abe will call a snap on election. that is why they came off their highs. i do want to say in terms of the deciding factor, it's going to come down to the economic data. in particular, third quarter gdp. that could be the deciding factor that could really decide

whether the government will go ahead with that tax increase. it could imply that the japanese government, the japanese economy is not able to hold that tax burden. the yen, as you were talking about earlier, it has backed off from seven-year highs, as well.. once again, we are getting some very confusing signals from tokyo. and that's forced some in the currency market to step back from the cross, including nomura. they were out with a note yet yesterday saying we are inclined to -- profits on long dollar/yen positions. expect volatility over the lack of clarity over whether we'll see a sales tax hike or not. back to you in london.

>> by-r burberry shares falling 2.3%. sainsbury is off the best part of 5%. sainsbury has announced plans to cut cap ex costs in order to roll out discounts to consumers. they forecasted lower profitability in the first half. boosted by a partial business, however, the ceo has remained tight lipped over government sales. you can see it's off just over 0.5% today. annette is in frankfurt with all the details. >> just after the market opened, the stocks were the biggest losers here on the german equity market and that is because those numbers, as good as they look, are missing expectations, at least when it comes to their revenue and also there are ebit.

so it's a mixed bag, although the company is setting its 2014 and there is some likelihood of a dividend next year. the ceo was hinting at thinking about a special dividend. yesterday, we have that story from reuters that the german government looks into privatizing part of their stake or selling part of their stake. take a listen at what he had to say. >> what the government said is they had no plans for this terms of the government. you know, this is at the moment speculation more than reality. so we have not seen any major impact in the last year. we don't know, either, what their plans are. >> now, utility giant eon posted better than expected figures for the first quarter. it's up 0.85%. annette is still with us with

mop more on e. on. >> that was a surprise market reaction approximately looking at the numbers, there is a drop in net profit, a drop in revenues and the down side factors weighing on the possibility that e.on is still intact, like the lower wholesale prices for electricity, the access to new practice, and also, of course, they have business in russia and the big ruble is weighing on the earnings, as well. but i guess up theside potential for the shares today is that e. onhas beat expectations. that is something which has not been happening quite often in the past, ever since the german government said they were going to exit in particular.

they are also saying they are boosting renewable energy outlook on their own. back to you. >> annette, thank you very much for that. the market not reacting well to that. banjo popolare down 3.2% largely due to bad loans written in the third quart he. unicredit off the best part of 3%. this is helped by a stake sale which took place earlier in the year countering a drop in income. as you can see, the market is not reacting strongly to any of these results, down 4%. now, claudia is in milan with more on all of those results.

>> good morning. we are seeing the markets spenlize some of these banks. banco popolare, for example. but the two largest banks, both in terms of bottom line were able to improve versus last year. in terms of top line growth, unicredit did worse in top line growth. but both of these banks this morning are suffering. in terms of bottom line, they have increased their proinvestigation that they have held in the last year.

the dividend seems to be in focus where they would be reconfirming their dividend that they expect for the next four years of 10 billion years total. nonetheless, these stocks are still down, all the banks suffering, putting this italian market on a worst performer in terms of the rest of europe. but earnings in general have been quite tough so far, even in other sectors. higher this morning by 7.17. back over to you. >> thank you, chaud ya. still to come on the show, mark carney prepares to take the stage with a more dovish tone. that's you after this break.

european and u.s. regulators hit five banks with fines after a year-long probe into fx manipulation. >> uncertainty surrounding barclay's sees its stock head lower. a week russian rouble takes its toll on ale. in the green, its nine-month

earnings beat expectations. degree to disagree, president obama's and china's xi jinping reach landmark deal on climate change, setting assign differences on protests and human rights. >> and welcome back to the show. we are waiting for some data out of the uk. but jobless data, unemployment data and an outlook from the bank of england, we're just having a look into that at the moment. we were -- economists had expected the jobless rates to fall to 5.9 the%. we're just waiting for the number to come through on the wires as we speak. and -- >> european markets, they are trading in negative territory. the big focus today has been the unemployment number coming out

of the uk, which we're just looking at it right now for second came in at 6%, which was the lowest level since 2008. so, again, showing some signs of recovery in the labor market, that, of course, has been a focus for investors. >> the uk jobless rate, which was expected to fall to 5.9% has remained unchanged at 6%, that fall between july and september. but had expected to fall slightly. which matches its lowest level in six years, that data coming from the office of national statistics. we also had average weekly earnings, excludeing bonuses, which rose by 1.3%, picking up speed from an increase of 0.9% in the three months to august. so wage inflation slightly higher than the previous reading, which is obviously good to see that kind of data that has been soft in recent weeks in the uk while unemployment still at the same level of 6%. also waiting for the bank of england forecast, which haven't

come through so far. inflation forecasts and growth forecasts, just that unemployment data so we will go to simon wells, who is a uk economist at hsbc and joins us now. simon, a little bit of a pick up in wage inflation which is good to see. unemployment rate staying as it was at 6%. what's your take on the data? >> i think the unemployment rate was a surprise. we and most of the market were expecting another drop to 579%. however, 6%, it's still good. it's still a little bit better than the bank of england was expecting just three months ago. so there's still a little bit of upside news for the bank. and, yeah, wages, they picked up, but again, not as much perhaps as we were expecting. you've got wamgs, including bonuses, at 1%. real pay is still being squeezed. the alarming thing is, it looks like unemployment has risen. while the bank of england was expecting a slowdown in the economy in the second half of

the year, certainly wasn't expecting unemployment to start to rise again. so, perhaps we're getting slack in the markets to widen out once again. so this is going to be of concern. >> if we have got wage inflation, does the actual unemployment rate really matter for the bank of england's hink it does matter insofar as if you are a hawkish member for rate rises, you've been looking at employment rates, you've been saying, look, they just have to pick up sooner or later, the labor market is tightening, hiring is getting more difficult. perhaps when we get into the first quarter, we will see wages rise. now you are looking and the you're thinking, well, actually, unemployment is ticking up already and we still haven't seen any signs of life in wage data. so yeah, i think both are very important, but the puzzle of why unemployment has been falling and is still relatively low compared to where it's been and wages aren't picking up, that's

still a big puzzle on the uk economy. >> simon, the market has pushed back its expectations of a rate rise from the first quarter of 2015 to, i believe, the third order fourth quarter. given the data that just spoke a couple of minutes ago on jobless claims as well as a wage growth, do you think this changes the story of the picture and when we could expect the boe to raise rates? >> well, i'd be surprised if they were there now that they push out. i think you saw the market move pretty brutally in october and push out in that rate rise almost into q4, as you say. whether we'll push out further into 2016, i don't think so just in today's data but, of course, in less than an hour, we've got the inflation report and it's the bank of england and mark carney in particular very dovish. then i guess it's not possible that we do see a further pushout. i think probably a lot of this was in the price. had we gone in the other direction, maybe to 5.8, then we probably would have seen a big sell-off in short selling.

but for now, i think a lot of this was in the price. >> simon, what are you looking for from that report from the bank of england, that outlook from the bank of england later. are we expecting them to could it cite specifically why this will happen in the next couple of months? do you think they'll cite reasons outside the uk? >> definitely. i think is bank of england has been concerned for quite a while now. we can expect a lot about the external risks. we can also expect a lot about the lack of wage growth and as i say, today's data completely in line with that. but the main thing the bank of england has to do is explain what it thinks about this fall in short-term interest rates that we've been talking about. the curve that it issues is probably going to be about 70 basis points lower in 2016. it's got to decide what it does about that. has the market got it right? is this move warranted or is it going to sew a seed of doubt about the rates?

>> simon wells, thank you very much. appreciate it. back to our top stories, regulators on both sides of the atlantic finds on five global banks totally, $3.2 billion for forex manipulation. the banks include ubs, jpmorgan, rbs and hsbc. the uk lovied a fine while stateside they've had ordered to pay penalties. ubs fractionally in the green today while the other banks are in the red, whether they're trading in frankfurt or london. barclay's is not included in the fines. it's working with the fca and fcc for a more regulated fine. it has reacted most negatively in the ftse 100 so far today. down the best part of 2% because of the uncertainty. speaking at a press conference in the last half

hour, the ceo said it may must change in order to regain trust. meanwhile, the bank of england has fired its fx dealer for serious misconduct un-l related to this problem. he acknowledged traders at the bank were using a practice known as matching. while not illegal, the bank said the activity could lead to improper behavior. taking a look at european pkts right now, trading in negative territory. we got the jobless rate out of the uk as well as seeing a tick up in wage growth. right now, markets reacting negatively to that, trading down by around 0.4%. germany, the underperformer, down by around 1%. italy down 1.5%. now, a good day for stocks across the eurozone, let's take a look at the stoxx 50, down about 0.8%. keep in mind, the index is up about 3% over the past one

month. the big data this week will be the gdp data on friday. >> indeed, and industrial production data out of the eu in just under 30 minutes. bonds, as you can see, 2.34% on the u.s. ten-year treasury. it's been around about that level for most of november and the ten-year german yield, 0.81%. the biggest move in coming in dollar/yen. the yen bouncing back about 0.3% today after yesterday it had fallen significantly on news that prime minister abe might call for a snap election and, indeed, increase -- the second increase in the sales tax hike. he had come out yesterday to deny those rumors, but today is japanese press still running that story. but nonetheless, the yen bounces back a little bit today. let's get out to the ubs conference where carolin is standing by with more market

insight. carolin. >> you were talking about the banking sector before. many people still steer clear of the banks because you could aurm it's a bottomless pit. there is one man next to me who says we actually like the european banks. why is that? >> well, first of all, i think that european equities -- we don't believe in that. if you look at the ecb lending survey, it's picked up since the beginning of 2014. if you look at the aqr, i think that allows banks to increase the size of the balance sheet. i think that's a fairley good outcome for european equities as long as you have alternatings growth. >> how do you take that into

account? >> obviously, working at ubs, i'm he very aware of that. but i think the key boost to the earnings is going to come from less provisions. that will away big boost to european banks for this year and we actually expect three quarters of the earnings threw growth is going to come from banks. that's the sector that we want. >> in the u.s., we've been the markets still at record highs. many are banking on this year-end rally and it's very likely based on historical performance that we are going to see that. but who tells thaw we're not going to be seeing another vat of volatility on the way? is it possible to have the best of both words and benefit from the upside in the markets and be well positioned when there is another round of volatility? >> it depends on how you look at the price in the u.s. premiums are at the 96 percentile. a large part of that is because rates are low.

>> what is the one catalyst that could upset the markets.? right now we're in a low growth yield environment. what is it that is going to tip us over the edge? >> i think things like inflation in a traditional way that cycles into the u.s. >> don't tell me it's fed tightening. >> that's volatility. we agree with that. i think what worries me is the high markets in the u.s. we're assuming they would have a $90 or $100 price of oil this year. so, obviously, these are low quality issues with a lot of leverage on the balance sheet. if they start to default, we think that could spill over into the risk yield market and into the equity market. >> we're running out of time. what is this price in the european bond markets right now?

we do see yields going up. that is mispriced, isn't it? >> we believe so. ireland, also, a two-notch upgrade. i think that's a clear sign of mispricing. we didn't see the sell-off that we should have seen. >> thank you so much for your time. and in about 20 minutes' time, we'll be speak to go adam would is waiting in the wings. we'll go through all that data we had. that's coming up at the top of the hour. burberry shares falling after the uk luxury retailer posted a 6% rise in line with analyst estimates. but the group highlighted a, quote, more difficult external environment.

this has been a highly competitive environment given what we've seen in europe and instability. >> shares reacting negatively because of that statement. particularly related to china, as you say. and burberry's not super high end luxury, but it is a luxury brand. interesting to see that section of the markets also suffering. >> for a while, that was the opposite strategy. for more on emerging market and less on the economies, maybe they should reshift that focus. >> i think they'll be hoping that can sdwrauf set the declines recently. stains bury has fallen and announced plans to roll out discounts for consumers.

we had expected they would reduce cap ex and did forecast the full year dividend might be lower. the discounters doing very well. doing relatively well, as well. tesco and stains bury lost what was in between. >> at what point do us i need to cut my losses and wait on the sidelines for the companies to improve their growth margins? >> absolutely. in fact, you rewind about a year ago, the three years previously it was gaining market share again. but nonetheless, caught in the middle. >> now, still to come on the show, the u.s. and china coming together to fight climb change.

but the two super powers still stand opposed on several issues. we will discuss after this break.

the u.s. and china have unveiled a landmark plan to curb their greenhouse gas emissions

in a surprise move ahead of the fresh round of international climate negotiations. president obama and xi jinping made a joint statement in beijing expressing shock at the scale of the commitment. during the press conference, obama and xi jinping sparred over democracy protests in hong kong while the two confirmed they had discussed human rights. and i suppose, seema, despite the republicans back home in the u.s. being a bit critical because mitch mcconnell came out and said they were unrealistic targets, both on this and in particular i think a day or two earlier on visa changes, this is quite significant progress between the two presidents. >> absolutely. and i think some would say that this climate change, this progress is seen as a historic move. by the way, china and the u.s. together produce about 45% of the world's carbon dioxide. so the fact that these two countries are onlying this and putting together some type of

target, that is seen as progress. >> there are other issues where we haven't seen the same level of progress. president obama mentioned the security and fair treatment for foreign firms in china. the audience went dead pan silent. so it doesn't sound like there was any progress or agreement on that. >> they want to identify issues and find a solution. >> exactly. now, the pro russian city of donetsk has been hit by new shelling. >> and it was the stock of the day, alibaba suffering its second worst trading day since going public on tuesday, despite reporting more than $9 billion in sales. a record. however, there's one person paying no attention to the move, founder and executive chairman

jack ma. speaking sclus ofly to cnbc, ma said he does not want the company stock pricing. it was his responsibility to look after the business. the alibaba founder confirmed reports he was considering a listing for alipay. however, china's wealthiest man said he was not happy with the pressure of being rich. >> everybody surrounding you for money. i want people see this is -- this is the guy -- i want to be myself. >> that just goes to show, wilfred, money cannot buy happiness. quite surprised how candy jack ma was. he was bees the head of alibaba, examine founder examine executive chairman, was not an easy job. >> no, i agree. it was an interesting interview by david faber. bur, of course, he's also

reflecting on the last six months of his life presumably getting away. hopefully not the -- to relax and be happy in the months ahead. some top yahoo! shareholders have reportedly reached out to aol's ceo tim armstrong to explore a possible merger. according to reuters, they want armstrong to run the combined company. armstrong is reportedly receptive to the deals, but he is down playing the possibly of any transaction soon. yahoo! is making a bigger push into digital video ads, striking a deal to buy bright roll for $640 million in cash. this is yahoo!'s first major acquisition. brightroll powers brands across websites, ads and internet tvs. it collects data and puts the ads on the right pages. brightroll has revenue of about $100 million. yahoo! says the deal will add to earnings. right now, the stock up about

0.5% in frankfurt. i caught up with david carp, the founder of brightroll. david carp and tumblr, they were expected to transform yahoo! back into a -- company and marissa mayer making a string of acquisitions. >> there's certainly a lot of pressure on marissa mayer. but nevertheless, the share price has done fairley well, of course, because of alibaba. global news, shares in the biggest saw by lender has jumped 10%. hadley, talk more about this ipo. why is there so much interest? >> we're talking about the largest in the arab world and it represents this huge victory for

the finance minister himself, saying a couple of years ago and they really brought it forward to the position it is today which is a very strong one. and it speaks to the fact that this is the market, as we know, that is looking to open up to foreign investors. it's looking quite strong now. blackrock is attempting to go in there and start an etf. they want to get the measure of this market and there's a great deal of interest with this ipo. >> before that, we were unsure whether the pricing was right. this share price perhaps suggesting they priced it very well. >> indeed. and they are looking for this to do very well in the rest of the weeks and the coming months. this is the largest lender in saudi arabia. >> what are some of the risks in investing in stocks in that region? >> wheelchair seen obviously in the last couple of weeks this minor scandal with saudi mobile in terms of the accounting and

that kind of thing. but as we move forward, certainly into the early part of next year, i think you'll see a great deal more on the part of the finance ministry, on the part of the securities exchange to make sure everyone is mag by the same rules. and i think that's become very important to them going forward. >> we saw that happen in china, as well. regulatory forces and try to improve transparency and that resulted in a lot of the chinese ipo performing exceptionally well in the u.s. jp.com, alibaba among others. i wonder if this is the second wave in the arab world and if that will help improve transparency and result in more foreign buyers. >> but, of course, they overcame the opposition, those are established to make this a success. and that's a great move. for the arab world and saudi arabia. >> hadley, thank you very much for that update. for some, slang words are a way of life, but the manager of a chick-fi-let won't have any of

it. he's banned his employees from using several words, including bra, buy and chill. although seema is literally laughing outlout loud at me as i'm doing this. although this one includes a side note that the word can be used if employee res talking about a product that is clild. also banned is the worse cuz because it creates confusion on whether the employee is referring to a relative or the actual word. unbelievable. if you want to join the conversation here on "worldwide exchange," get in touch with us, wor worldwide@cnbc.com. any more words you want to add to this list? >> i would say dude. how about yourself, wilfred? >> i don't know. i can understand the workplace

is not the right place, particularly if you're doing live television. >> how about are you using bea and brah? >> i think this is the first time i've ever used any of them. in other news, funny or die. the popular website is reportedly up for sale. reports say the site has hired an investment bank. sequoia capital are investors in funny or die. the site has become a goo-to outlook for comedians. and if you guys missed that, it was definitely hard to watch, but very entertaining. >> indeed. i love galifianakis. tuesday night, number 21 brought in $45 million.

below the presale estimates. et hasn't been shown publicly since 1972. jasper john's paintings sold for twice the estimates. and andy warhol's painting went for more than $31 million. now a quick look at the european markets. they opened slightly down and they have declined throughout the trading session, down around about 0.6% on the stoxx 600. >> and a quick look at u.s. futures right now after hitting record highs yesterday, futures pointing to a lower open. >> and we'll be talking to adam after the break.

good morning and welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. >> european and u.s. regulators hit five global banks with a 3.2 billion fine after a year-long probe into fx manipulation. but a concern over barclay's sees its stocks trade lower. meanwhile, rbs is investigating 50 employees as part of a wider probe. and the u.s. consumer is in focus today after macy's and

jcpenney report results after this start of the holiday shopping season. agree to disagree, president obama and xi jinping make an agreement on climate change. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. european stocks trading lower, but if you want to take a look at where we're seeing the outperformers, none other than the japanese nikkei at a seven-year high. japanese stocks continue to move higher as prime minister abe will propose planned -- or expectations that he will propose a planned sales tax hike. >> he denied that yesterday, of course, but the pressure is continuing to go with that story, despite his denials. and the yen has bounced back fractionally today after hitting seven-year lows. big, big moves in the nikkei continue to hit new highs.

you know, the trade would have been by the nikkei and offset the currency a few months. they would have made a lot of money. >> that would have been a winning trade. take a look at u.s. futures which have been closing at record highs for the s&p 500. but right now, indicating a lower open. profit booking perhaps taking place on wall street with the dow jones industrial down about 33 points in premarket trade. the nasdaq, which has been trading at a 14-year high, down about 10 points. s&p 500 down about 5 into market trade. now, a look at the ftse cnbc global 300 index, a look at multi nationals around the world, it's been basically trading flat at the moment. but on an intraday basis, at session lows. divinging into the european markets, the banking sector continues to underperform today. that's one of the reasons we're seeing markets trade lower. the ftse 100 trieding down about 34 points. we did get that unemployment data out of the uk. down 6%, the lowest since 2008.

it will be interesting to see how the boe reacts to that. in germany, we're seeing lowses down about 100 points. that, of course, could come out disappointing. if it does, we'll see how markets will react, given the fact that europe yap markets have been rebounding over the past month. we're looking at italy, the underprmper when looking at the individual markets. down just about 1.6%. so i really think it's either the economic data or those bank fines weighing on investor sentiment right now, wilfred. >> and it's uncertainty as you say before more data releases. slight gains in europe on monday and tuesday and we're just giving up some of those gains today. let's look at the bond markets. interesting to have a look at the u.s. ten-year. so far in november, the u.s. has been sitting new highs, but each day it's been making small gains. we are having gain necessary equity markets, but it's not a full on risk on trade despite hitting all-time highs. and that same sentiment is seen if we look at the u.s. ten-year

yield at 2.34%. i.e., between 2.3% and 2.4%, which is where we've been so far this month. forex, not too much. the yen has just bounced back a bit, 115.3. prime minister abe was considering calling a snap election and considering scrapping the second increase in sales tax. he came out yesterday at the apex summit to deny those rumors, but the japanese press plugged in with the story today. nonetheless, the yen rebounding a little bit today. seema, back to you. wilfred, the uk unemployment showed a surprise jump in wage growth. the overall jobless rate held

steady at 6%. the data comes as mark carney gets ready to deliver the inflation report. on that note, carolin roth joins us in london with a special guest. >> the uk data out the last couple of months and yeeshs, i guess today's data doesn't help clear anything up, does it? let's get to our next guest who can maybe help with that. adam, today we saw wage growth is ticking up higher than inflation, but unemployment is steady at 6%. how do you interpret the data? >> it's a lagging indicator. think about each business waiting to see what happens, what are good business conditions, how much demand there is for labor over several b months before they make their annual pay change. so i think you should look at this as reflecting the past in the rest of the uk economy, but not terribly plausible. >> where do we stand own

employment slack in the malabor market? if you look at the unemployment data, you could argue it's widening. where is it? how do you measure it? >> i think right now it's basically flat. as danny argued, and i agreed, there's a lot of underemployment in the ouk, meaning people who are self-employed, but not. so slack is still there. will we get another mention how surprise from mr. carney? >> probably mott as abrupt, but i think you'll see another about face. >> another about face? >> in the sense that they're going to back off their promise toes raise rates or close to raise rates. in this case, i think it's justified, the data is coming weaker than they thought. the euro area is coming weaker than they thought.

but given what's happened, it wouldn't surprise me. >> the signals from the falling unemployment and the weak wage growth, how will this circle on that? >> i think the latest circumstances say there's no inflation threat, that the forward looking indicators for the uk economy are weaker rather than strong growth, but not terrible. and so they're within the mandate. >> do you think that finally cnbc will go along with what the market is thinking? we've seen that drop in short-term rates. we have seen tienting has been taken out in the curve next year. timely, we'll see actually -- >> i don't think we can get all the way to where the market is. i think there's still a good shot that you can more than that next year. they may now put that off. if you put it off, they're not going to do it in may of the

election. so then we're talking second half. >> we're talking second half and there could be a second one next year. is that your -- yes. >> let's move on to the u.s. you've been saying that the fed should be holding off on raising rates. well, unemployment rates are at 5.8%. >> i'm not sure that's full employment. in the u.s., we're seeing some -- but not very much. much weaker wage data than we see in the uk. participation is rising off big declines. i think most people, including the people of the fed, there's not a million, million and a half people who are long-term unemployment who could come back in. >> there has been a scramble around the world. the boj, you could say whatever they did. >> the ecb should be stepping in

for its mandate. it should be stepping in for the euro area where the various policies have failed. but i presume we'll get to qe this year. >> and that saying the boe was not -- >> not practice mature, but i was, i admit, surprised that they did wait until december can in hopes that the government would raise the taxes or promise to raise the taxes. >> that you can so much for your time, adam. back over to you guys. regulators on both sides of the atlantic have slapped five global banks with a fine totalling $3el 2 billion for forex manipulation. the banks include ubs, jpmorgan,

rbs and hsbc. stateside, the s.e.c. has ordered the financial institutions to pay $1.4 billion in penalties. barclay's is not included in the fines abdomen it is working with the fca and ftc for a coordinated settlement wile sources tell cnbc it pulled out after issues with the bank. at the moment, down 1.6% because of the uncertainty. speaking at the press conference, martin weakly said the financial industry must prove that it has changed in order to regain trust. carolin is still with us. what is your idea? for me, the most interesting thing is the size of the share price decline. these fines significant relative to other fines we've had significantly, but they're not ground breaking. and i wonder whether the biggest

volatility is looking forward more red tape in another area now, fx, for the banks to deal with moving forward. >> well, it's pretty clear that ubs wants to put this behind itself because the selling with many authorities for around the world. for more than five years, six years, they settled on a libor case. they settled on the mortgage-related issue. it's worth noting there might be another settlement out there. that could be a terminal investigation. but according to those reports, ubs might be getting lenient treatment there and might be lenient fines because ubs has been cooperating early on. we're still waiting for a settlement within precious

metals in the gold feel. ubs has been trying to get ahead of rivals in terms of that, in some cases, it does. in some cases, it doesn't. ubs shares are actually up today, first of all, because this is well teledpraved. this has been leaked a couple of days ago. secondly, it was very, very well provisioned for that. it really shouldn't be a big concern. it's very, very strong. so there you go. from now on, ubs will continue to look for a bill, continue to look at the fundamental business. and their operating profitability.

>> while some of the banks are underperforming today, the s&p financial index up about 10% year-to-date. >> september whole sale trade is out at 10:00 a.m. eastern. forecast to rise about 4.3%. macy's reports results before the opening bell. we'll get numbers from beazer homes and sea world. after the bell, we'll turn to cisco systems, netapp as well as retailer jcpenney. let's take a look at today's top stories. marissa mayer has reportedly reached out to 5r78 strong. according to reports, they want armstrong to run the company.

separate news, digital video ads striking a deal to buy bright wool for $640 million in cash. this is yahoo!'s first major acquisition. profit size app and internet tvs, it connects marketers and targeted ads on the right pages. yahoo! says the deal will add to earnings. take a look at shares of yahoo! up up about 0.5% in frankfurt and up about 34% here. oil prices might be hovering near multi year lows. that's the warning from the iea ae latest report. we'll discuss after the break. ] [ sighs ] [ inhales ] [ male announcer ] at cvs health, we took a deep breath... [ inhales, exhales ] [ male announcer ] and made the decision to quit selling cigarettes in our cvs pharmacies. now we invite smokers to quit, too,

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the u.s. and uk fined five global banks in a px manipulation probe. futures point to a lower open and unhappy yahoo! shareholders reemp out to explore a possible merger. falling oil prices could cut

investments in u.s. shale oil by as much as 10% next year. carolin caught up with the petroleum ceo at the ubs and european conference in london and asked when he thought lower prices would hit production. >> a big question is what is the impact going to be in terms of u.s. production? we hear lots of talk about u.s. shale. what price is it going to start to have an impact? the question is how quickly and how much? >> some people have said maybe it's $50, maybe united states $70. is it somewhere in between? >> i don't know because the u.s. shale business is a completely different business. it's a manufacturing business. i look at it from afar and i see the fact that free cash flow.

i look at the availability of capital over the last two years and i ask myself, can this continue? whether it will or not, i don't know. >> gareth, good morning and thanks for joining us. the iea reports say this morning that the market significantly outpaced the flow of oil in the years ahead. do you think there is a complacent city in the oil price at the moment? >> the oil price represents the situation as we see it at the moment, with demand hasn't been right. in fact, it's nonopec supply and opec is obliged the cut prices. we are spending our days wonder whag opec will do. but if you stand back from this, you get cut back in investment and then demand keeps on

growing. you have a point on the line where investment has been in position and you get a jump in investment. that cycle disturbed in part by what opec does. but over the next 20, 30 years, which report is basically saying let's look at the cycle. what will it take to ensure we have energy security. capital investment year in and year out, as it were, and i think that's the key finding on the study. >> if the price of oil continues to drop, at what point doing it will have a long-term uptick in the u.s. economy because, as we have seen, lower oil prices typically have a net positive impact on economic growth.

>> therefore, it is a beneficiary of the oil prices. >> that is a function of we'll feel shut in because of lower prices and investment. >> it was delayed as a consequence. at the current level, we still see a fail amount of oil prices. but not all of that was currently planned. >> what opec is hoping, if either the price, what they would hope is that over a number

of years, the expected growth is -- opec would them be able to gain market share and have greater market influence and enable to increase inflation just to jump in. >> the iea reports did say iraq is one of the biggest risks in security of oil supply at the moment, particularly oil growth in the year ahead. geopolitics we've talked about for the last five months and why it hasn't had a bigger effect on the oil price. do you think it will in the months ahead? >> people seem to market accommodated itself at the moment? in the south of the country. yes, it is a key question. half a planned increase in opec production. iraq is key here. i think what the iea is saying

in the report today is where as large oil production in focus in a limited number of countries, many of who are politically unstable, as it were, the iea sees energy security or in part, a widespread of oil production. and moving away from oil, used to fill end demand as a whole. a key for security investment, there's a limited number of countries. the u.s. and china coming together on climate change. we'll get you more on this land mark plan coming up next. you can bring back a lot of things

from a trip around the world. but you can't always bring back customer data. because many customers don't like it when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be. today, there's a new way to work and it's made with ibm.

for tapping into a wealth of experience... for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more. the u.s. and china has unveiled the plan to curb greenhouse gas emission necessary a fresh move in international greenhouse negotiations. barack obama and xi jinping made a joint statement in beijing

with climate experts expressing shock at the scale of the commitment. the two revealed they had discussed human rights, military cooperation and changes. now, seem kra, of course, not everything they've discussed over the last couple of days they've been in agreement with. >> as we remember just saying, the u.s. and china combined produce about 45% of carbon emissions. so there is clearly a problem at hand and they need to find a way to reduce those carbon emissions in terms of solving global warming which is the big issue here. >> the biggest development out of the apec summit was developments in these restrictions between two countries. those restrictions being relaxed significantly. still to come on this show, have deep discounts cost retailers a pretty penny? alternatings of jcpenney up after the break.

all right. welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. >> and the story today, european and u.s. regulators hit five global banks with a multibillion dollar fine after a year-long

probe into currency manipulation 37. could disappointing retail earnings take the wind out of market rally? macy's and jcpenney report results. and at least two yahoo! shareholders are reportedly asking aolceo tim armstrong to come together with a merger. agreeing to disagree. they've reached a landmark page on climate change. you're watching "worldwide exchange," bringing you business news from around the globe. >> now, traders say expect volumes to pick up as investors return from veterans day. the bond market will reopen. it was another record day on wall street with the s&p 500 closing at a new high for the

fifth consecutive day. the s&p 500 has rallied by more than 9% from a six-month low back in october. but right now, futures point to go a lower open right now, perhaps a little bit of profit booking taking place. we're looking at the s&p 500 down just about two points in premarket trade. the dow jones industrial down about 20 points and the nasdaq, which has been trading at a 14-year high down about four points. will, back over to you. we're just getting some flashes out of the bank of england. mark carney is giving his outlook forecast for 2015. growth will be 279% down from 3.1% a month ago and 2016 will be 12.6% down from 2.8% last month. the bank of england governor mark carney now. >> based by british households and businesses is just one example. fixed mortgage rates have fallen to record lows. in this report, the mpc projects

growth of 357% this year, 2.9% next year and 2.6% for each of the following two years. there's three factors that can explain why the uk can continue to grow at above-trend rates in the face of world demand. first, take home pay growth is in prospect. 700,000 new jobs have been created in the last year. and confidence is returning to the labor market. we are seeing the first tentative signs of the long awaited signs. incomes will be further supported by lower energy food and other import prices. oil prices are 20% lower on the year. food price inflation is at a 12-year low. the mpc expects annual real pay growth to pick up from around zero at present to about 2% by the end of next year. the second reason for above

trend growth is that despite developments abroad and a larger than anticipated slowdown in the housing markets, consumer confidence here is being supported by the combination of lower effective interest rates. a strong labor market and improved pay prospects. during that transition to higher income, we expect the household savings rate to continue to drift down to relatively low levels supporting the growth of demand. and the third reason is that investment growth is strong. although the committee expects the support to the expansion from investment to be a little i less pronounced than in august, business investment is expected to continue growing at well above its historical average rate. that reflects expanding demand, improved credit conditions and the clarity that interest rate increases are likely to be gradual and limited. above trend growth through the forecast period means that the economy will continue on its path towards normalization.

we expect unemployment to fall to precrisis levels and the output to continue to close. there's a wide range of views on the committee about the likely degree of spare capacity in the economy, but overall our best collective judgment remains the case that slack is currently broadly in the region of 1% of gdp >> that was bank of england governor mark carney would says the uk economic conditions continue to normalize. i contends when the rates do rise, it will know gradual. also citing the outlook for broader eurozone growth has weakened. now back to another big story this morning, regulators on both sides of the atlantic have slapped five global banks.

the banks include ubs, jpmorgan, citigroup, rbs and hsbc. stateside, the cftc has ordered the financial institutions to pay $1.4 billion in penalties. now, barclay's is not included in the fines as it is working with the cftc and fca for a more coordinated settlement. overall, wilfred, not good news here, these fines. but we have to point out, while some of these banks are trading lower today, financials index is still up about 10% year-to-date. the question is do they care about these fines and are they willing to brush that over and focus on earnings? >> i think they care. but with these fines in particular, it was a bit priced in as you can see by the move today. some are up, some are down but

nothing too significant. i think what's more interesting moving forward is the fca here in london has said they will announce a carryout. for firm toes drive up standards across the market, yes, these fines are big in terms of the fca's history of imposing fines. but more of a risk moving forward, more red tape, more regulatory pressure for the banks moving forward. it's a tough environment for them. >> and as one of our guests was telling us just an hour back, is cultural change really at the heart of this issue? that's something that needs to be addressed in the coming months. burberry says the falling of the uk lux reretailer posted a 6% rise in profits, in line with demand. the company struck a positive

note on kwurntsy headwinds. they have a saying, the impact will diminish in the second half of the year. and speak, retail, we're going to talk about other companies to focus on today. earnings have come in better than expected this quarter, but that could all change when retail earnings kick off. jcpenney results are due today and the focus will be on jcpenney's turn around strategy. whether its price cuts and promotions have resulted in more buyers. that will also be in focus. now, a different story for macy's, which has been an outperformer in the retail index, up about 10% this year. guidance for management on how the back to school shopping went. plus, what they're expecting this christmas will be key. nordstrom, up about 16% this year thanks to investment in e-commerce and better-than-expected earnings reports. that stock has been steadily rising this year. joining us now from boston is

ken perkins, president of retail metrics. ken, we were just talking about how earnings so far this year have come in better than spec'd. the question is will retail change that? what are you expecting? >> yeah. i don't think retail is going to move the noodle too much. the current expectations, we're looking at 124 retailers, is expected to be up 376% year over year. that's down from 16% expected growth at the beginning of june. we're seeing a lot of retailers and consumer related names issue warnings. we've seen the department stores indicate the flow. jp penny's guidance last month, we have walmart, lower sales guidance, kohl's, same-store sales down 1.4%. so i think it's going to be a tough plug here for the retailers. and how is that possible? economic conditions have

improved. oil prices have come down. surely they should be making significant gains in earnings right now, the retailers. is it an execution issue or is perhaps the retailer weaker than we might expect? >> that is a great question. when you look at the unmroipt rate, it's down from a year ago, 226,000 nonfarm payroll jobs every month this year. consumer confidence is at seven-year highs. gas prices have fallen. why aren't the retailers doing better here? iveng r i think it's the low-end consumers. the last week, average hourly earnings have were 2%. i think also they're spending it on autos, payplanners and other things that aren't benefiting traditional retailers.

>> how about alibaba taking shares away from these stores? or do you think these companies are doing a good job at the digital commerce space or business for that customer looking to buy online? >> yeah. there is no question that those players have been taking dollars and share away from brick and mortar retailers. they've been playing catchup and doing a better job of increasing their omni presence. mobile websites are easier to navigate right now. they're still playing catch up and they're a bit behind the eight ball. companies have been doing a much better job of this, but they still have an uphill battle. they have to invest heavily in i.t. these are expenses they weren't anticipating. >> ken perkins, the president,

as well. the retailer will launch the first round of in-store sales on thanksgiving day at 6:00 a.m. for people who do not want to leave home on thanksgiving. more deals will kick off at 6:00 a.m. on black friday. online customers can shop even earlier with deals on b&up. coming up, could yahoo! be in play inspect horts say 14 want to discuss a merger. details after the break.

twitter kicks off its earnings today. the ceo is under pressure with helping investors know how it plans to make its social media bigger and better. analysts will be focusing on guidance, user growth, as well as management changes with a couple of big changes in twitter's executive teams. there are some questions around

his leadership style. and if he is the right person to lead the company. marissa mayer, some top shareholders are so unhappy with her, they're reaching out to a popular rival about a possible merger. hampton appears joins us now with more from washington. >> hello, wilfred. at least two top ten investors who are frustrated with marissa mayer's leadership have reportedly reached out to tim armstrong to explore a possible deal. reuters is reporting the shareholders want armstrong to run a combined company. armstrong has reportedly been receptive to their plea, but it's down playing the chances of a transaction. reports say there are no talks between yahoo! and aol and armstrong has signaled he would

only consider a friendly deal. reuters is also saying two top ten investors have met with armstrong recently and were left with the impression a combined company could bring up to 1.5 million in cost savings. yahoo!'s alibaba stake is worth about $34 billion. armstrong has led aol since 2009. he's been credited with reviving the company, helped by several acquisitions, including video ad firm adaptv. aol stock has doubled during his tenure. yahoo! stock has tripled since mayer took over in 2012.

some investors want mayer to slow down the pace of acquisitions as yahoo! has just announced a deal on tuesday, paying $640 million to buy digital video ad platform brightroll. that firm has more than $100 million in revenue and yahoo! says the deal will add to its earnings. >> hampton, thank you very much. >> the moving parts and all of that. >> absolutely. hampton pearson from washington, d.c., thank you very much. other headlines, the big bank story, u.s. and uk fine five global banks over $3 billion in a currency manipulation probe. u.s. markets are poised to break the winning streak as futures point to a lower open. and unhappy yahoo! shareholders reportedly reach out to aol ceos to explore a possible merger. opportunities aren't always obvious. sometimes they just drop in.

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the stoxx 600 down 1.35%. slight lows across the board following two days of slight gains. we had those bank fines coming out early. we also have a little bit of uncertainty ahead of data releases coming up, in particular gdp out to the eurozone on friday. and that seems to be translating into losses for u.s. markets right thou. premarket trade indicating a lower open. a dow jones industrial currently down about 17 points. keep in mind, the s&p and the dow set a new intraday all-time high in yesterday's trade. let's get you a look at what else to look out for this wednesday. let's get you a rundown in terms of economic data. wls get numbers from cisco

systems, netapp, and jcpenney. great to have you in the studio. >> thank you. >> now that the fed has ended quantitative ease, do you think the market has shifted its focus back to fundamental earnings? >> i think so. the market is going to do well to look at at rising interest rate environments. that is a rising, looking at that over the last couple of years. you have this run because everything is going to move with so much liquidity in the market. you're going to have to focus on fundamentals, companies have improved in headwinds of higher cost of capital. >> and i suppose we can point to the fact that quantitative easing has ended and markets have continued up. but the fundamentals, as you say, the earnings are improving. markets perhaps respond to go that.

but if that is the case, why do bond yields remain so low? >> i think what you're looking to see is the fed to give an indication that rates are going to rise. they have not said when they're going to. rates are going to stay low and rise over time. but i think more of that will be the market determining that. and when that happens, people are going to sell. you saw it happen a couple weeks ago and then the fed came back and said, you know what? we're going to raise rates slower than we expect. but that hiccup, i think most people think is going to happen probably sooner rather than later. >> tech earnings have been a focal point for investors, specifically the large cap names. they see saturation in some of the markets that they compete in. tell us about some of your top picks in the tech sector. >> so we like google. google going forward is in so many different mayss, whether it's mobile search. they're going to go top line, great cash flow, they're going to go forward. qualcomm is a little out of favor now, but we think given

what's happened in china when they get a res lose, this is cheap on cash earnings, a good dividend that's going to krez. and one that the growth strong is strategist. it's not a cheap stock but, again, you're going to get paid for growth. that is what investors are going to see, not just companies that are growing and gdp plus one. >> what did you make with regard to president obama's comments on net neutrality? >> i think both are going to win. it might help them because if more people are going to the web, you're going to have more access to the google searches and especially youtube because that's one of their biggest winners so far. >> let's talk about some of the economic data coming out, especially the move in the commodities space. we're looking at lower oil

prices, translating into lower prices at the pump. that's supposed to help the consumer, yet that doesn't seem to be having a dramatic impact on the u.s. economy. retail sales due later this week. how do you play that as an invest investor? >> i think the commodity tailwind is going to be fabulous for stocks. >> but whether? >> that will away first -- it will take one or two quarters. the american consumer, 60% of gdp is american consumption. and savings is not the biggest thing that happens in the united states. so you'll see when the consumer goes shopping, especially going into the fall and now into the winter, you're going to see more consumption going on and companies that don't have to by that dependent on commodities are going to get helped, as well. so that tailwind, restaurant stocks, on the retail side, it's going the be harder. you're going to have to look at specialty retailers. like the hudson bay, we'll see what macy's has to say today.

but that's going be a harder play. consumer spending has more confidence with the gdp. what consumers do is spend when they think they're going to have more earnings. when you talk about the u.s. and you say the payrolls haven't really increased, this is an automatic payroll rise for the consumer. this tail wivend of oil going to the '70s and '80s is going to be beneficial for the american companies. >> it's been fantastic having you on. >> thank you. before we go, let's have a quick look in on european markets. stoxx 600 down about 0.35% today. a little bit of negativity across the board after two days of slight gains. >> u.s. futures also indicating a lower open, this coming in after the s&p 500 hit a new record closing high. the fifth consecutive day. but right now, losses in premarket trade. the dow jones industrial down about 21 points. >> that's all we've got time for on today's show.

i'm wilfred frost. >> i'm seema mody. thanks so much for watching. next up is "squawk box," but for those in the uk, stay right there. we're bringing you extended programming for the bank of fwln england inflation report. wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions

good morning. welcome back to "squawk box." stalling relations, the u.s. and china announcing a climate deal calling it a major milestone. yahoo!'s success, some investors reportedly asking aol for a rescue. meantime, a $600 million purchase of an advertising service. and it sounds like an action movie. a jewelry heist in broad

daylight? it's wednesday, november 12th, 2014, and "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. the music this morning is because of a developing story. this one sounds like it's out of the movies. the quest for the first ever touchdown on a comet. a satellite is now headed for a comet. at the end, a cold gas cluster system should be fired to hold the lander steady. that should keep it from bouncing off the surface. but mission managers are worried this morning the system may not have been properly activated. we are going to watch the process throughout the morning. andrew, over to you. thank you, becky. let's talk about our first top