a very warm welcome to "worldwide exchange." i'm wilfred frost. >> i'm carolin roth. these are your headlines from around the world. >> ifo is expected to announce imminently it will keep the 2020 c cup. >> the u.n. accuses moscow of fueling the war in eastern ukraine. >> inflation looms over europe as prices fall further. this as jack lew --

>> shares of cisco come under pressure as emerging markets weigh on the company's earnings and outlook. >> announcer: you're watching "worldwide exchange," bringing you business new from around the globe. >> hi, everybody. i'm seema mody. coming up on the show, big business of retailers, we find out how american eagle plans to get its claw into the key fashion market here in europe. and sold for $151 million after a record breaking auction, we take a look at some of the world's most expensive pieces of art. and find out why resident necessary cambridge could be hearing a weird buzzing in the air over the coming months. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe.

>> welcome to the show. we're waiting for a report that is expected to get fifa into qatar in 2022. that record was due at 9:00 a.m. this report is from the fifa head judge. it is not the report a few months ago by michael. >> yusef, we're still waiting forethat report. it is expected to clear the way for qatar to host the 2022 cup. >> this is a huge deal. remember, this will be a summary, as you mentioned. it will contain recommendations. it will contain conclusions. and all of this is based on the 18 months' work of michael garcia, the former american attorney who has led this campaign and these interviews to

basically get the facts straight and help the committee make its recommendation. now, this was anything but a given, the publication of this report or this summary. remember, back in august/september, you had the fifa president who said there's no way the outcome of this investigation is going to make it to the public domain. so we are expecting the report to come out imminently. what will it say? this report looked at your 2018 and your 2022 world cup bid. the winning widz, qatar and russia. the losing contenders, like australia and possibly england. cnbc understands that it is unlikely to contain a call for a revote. as you mentioned, the expectation is that qatar will be cleared from the probe and basically echo what officials have been saying. distancing themselves from one of the controversial figures in the world cup bidding process. and then there's the financial

toll that this has taken on the world soccer body basically just last week. another setback, emirates airlines decided not to extend its sponsorship beyond 2014. this is one of the six top tiered sponsors of fifa, basically because of those corruption allegations. the reputational risk was simply too great. and then for qatar, of course, very, very important as a source of momentum, a driver for the $200 billion and infrastructure spending until 2022. and that, of course, weighs on sentiment, not just on the qatar exchange, but also for equities in the rest of the dcc. >> yusef, thank you so much for that. and i'm hearing now we've got the flashes out right now. what are you seeing, wilfred? >> i haven't found it if it is out. we are expecting it any minute now. so perhaps -- >> apparently it's not out yet. that was some misleading

information there. the bigger question, too, is even if qatar is cleared is whether some individuals will be facing disciplinary action. this would be usual in some cases. i'm not sure if we're actually going to see that. >> absolutely. i think in general, though, the extent to which qatar took place in getting the bid for the 2022 world cup is still up for question. but still, it goes to show how important these tournaments play in terms of economic growth. you take a look at brazil, the world cup, they were able to get about $3 billion from the world cup in 2014. clearly, qatar trying to gain more exposure to the foreign world through tournaments like world cup. >> staying with the story, qatar is still not protecting its migrant workers, despite making promises to fix the issues. that is according to amnesty international. 180 migrant workers died in the gulf states last year. qatar has seen a large number of people entering the country seeking work since being

appointed host of the 2022 world cup four years ago. now, europe eked out small gains on monday and tuesday and had sharp losses yesterday. today, it is up 0.24% as you can see in the stoxx 600. that's up, bigger cap stocks doing slightly better than the small caps. let's look at the individual markets. as you can see, a bit of strength across the board. it's similar to monday and tuesday. there's no significant data out that spurred the markets up, but the market moves aren't too big, either. and there's a bit of uncertainty around the ahead of the gdp figures tomorrow. the be big data we have had so far is from germany. that inflation data shows prices are falling monthly, they are increasing year on year. but that was expected. it does keep pressure on the ecb and we're certainly not going to see any tightening of policies.

the question is how much looser will policy get? germany up 0.8%. italy and france up over 0.5%. let's look at bonds. there hasn't been a significant move in bonds in november. they've been -- than they were in october. we're at 2.73% on the u.s. ten-year and in germany we're at 0.81%. let's look at forex and the u.s. dollar has given up a little bit of its gains that it had yesterday against the euro where it's 1.247. we're somewhere off the low which was 1.26 last week. we're hovering around the seven-year lows for the yen. today, not much movement. the ruble, very interesting at the moment. up 1.6% today. we will be discussing that much more with simon derrick, bmy melon's chief strategist in about half an hour's time.

cable is flat, 1.5774. let's look at commodities. the most interesting is oil. it is down again, below 80 for the first time. this is looking at light crude. it's down 0.5% today. significant declines in the oil price after opec said that we have had less demand for its product. all eyes on its meeting later in november. let's go back to carolin with some news on the fifa report. >> fifa's judge giving the all clear to the 2018 and the 2022 bids as rightly expected. once again, the soccer world cup of 2018 and 2022, they're set to go ahead in russia and qatar, as planned. the ethics committee said just a couple minutes ago, it found no grounds for opening the controversial bidding process. this is a long awaited report. it said various incidents are

not suited the compromise the integrity of the 2018/2022 bidding process as a whole. so no major surprises here. >> the internal investigation by hans hokim ekhart fifi judge. everyone called a few months ago for michael garcia, the independent investigator, to have his report plushed, which they still have not done. if qatar, russia, fifi have been cleared of all wrongdoing, i don't see why we can't see michael's report. >> is there any disciplinary action for specific committee members? i think that's the question. >> it is the question. i suppose perhaps also more is the fact that at the moment we still suggest that it's impossible for qatar to host the world cup in the summer. if that is the case, then a lot of people voted for that, perhaps not because of any wrongdoing, but they've shown the rationality to be able to vote for something that is being

suggested is not possible to host in the first mays. nonetheless, cleared of any wrongdoing, qatar and russia will keep their world cup in 2018 and 2022. >> now, lepts check in on asian market. sri jegarajah is standing by in singapore. sri. >> let me start with china. we got the data barrage for the month of october and i want to highlight factory outlook. that missed expectations. investment slowed down and cooled, as well. so on balance, this once again build tess case for further stimulus and further action by the pboc, the central bank in china. but it's going to be a gradual approach. they don't want to scope asset price inflation. the markets took this one on the chin. shanghai composite, a little weaker. but still close to two-year highs. one of the bigger stories today was japan. a market up by more than 1%. fresh, seven-year highs.

this lack of clarity over whether the abe administration is going to postpone the second round of the vat hike. there's a lot of speculation swirling in the market that abe may call a snap election to consolidate his grip on power and suppress the reset button altogether on the reform process. monday is supposed to be absolutely critical. the 17th of november. that's when we get the preliminary read for third quarter gdp from japan. if it is a stinker of a number, then that may very well build the case for a postponement of the hike. let me review these comments from hsbc. we spoke to her earlier on capital connection. she warned there is a risk of a negative surprise in g3 gdp. there is a risk that it could come in below 1%. if that happens, then that may very well seal the deal on a postponement of the vat hike. so a lot of excitement around the japanese markets at the

moment. next week is going to be absolutely critical. back to you now. >> sri, thank you very much. and some breaking news on the ruble, russia's first deputy central bank chair says it's about the economies and more importantly, she says the central bank is limiting liquidity for a tax on the ruble. just two days ago, the central bank of russia removed the trading ban on the ruble to make it freely floating. so this is the path that they want to go towards because they spent so much money, so much of the reserves on defending the currency to keep it from falling further. now they say the limiting liquidity isn't really just speculators who are selling the ruble or is it really those fundamental investors selling the ruble because of the weak fundamentals. e., the weak oil price. we'll continue that discussion later on in the oh show. >> and we should point out the russian rouble is down about

25%. instability in ukraine continues to be a topic of concern. nato has said it has seen russian military and personnel cross the border into eastern ukraine. it has witnessed a number of unmarked convoys of heavy artillery in eastern ukraine. heavy fighting has been reported in donetsk. a special meeting of the u.n. security council, one person said all movement has been occurring on russian soil. >> nato confirmed it has observed russian artillery, russian air defense systems and russian combat troops enter ukraine over the past 48 hours. the list goes on, but the pattern is clear. russia has made commitment, it has failed to meet them. russia has negotiated a peace plan and systemically undermined

it at every step. it talks of peace, but it keeps fueling war. >> meantime, dutch recovery workers failed to remove the downed flight on wednesday. no reason was given by the osce for overseeing the operation. julia ardann has joined us. also with us is tim harris at harris capital associates. good morning to you. what is russia's intention here with the continued incursion? >> for russia, one of the scenarios that would help them achieve keeping ukraine out of the nato and the eu is to have a frozen conflict within the boundaries of ukraine itself. to hold on to the territory for the rebels, they need to ask certain infrastructure. one of them is reporting where the fights are probably going to get heavier over the next couple of weeks. so this incursion is probably to help and secure whatever they need to hold them to -- >> but it's no tricky gain for

the russians, is it? they do know if they escalate the situation once again, it will probably hold up the sanctions. they need to stay within a certain level of aggression that this indeed is not the case. >> absolutely. one of the things behind this is that it will not move and impact entire sectors. >> do you think elevated sanctions are less likely because europe's economy is struggling so much? >> i think the sanctions are already working. i think combined with the oil price, you're seeing the stressors coming out. one manifestation of that is the ruble. another manifestation is -- coming out of russia. there's an economic war going on. yes, those who are closer to russia economically within europe are feeling the pinch. yes, there's inflation having to take place there. but i think the greater issue

has to be run through there. so there is an impact from the european economy. the dowdy numbers that are coming out from much of the eu. and i think russia has a marginal impact there. maybe 3.2% than what you're seeing in the u.s. u bing the greater issue has to be run through. >> you write in your notes that the russian violence will abate the approaching winter. if that's the case, do you think this is a good time to be investing in russia? >> valuationwise, yes. russian economy depends greatly upon its natural resources, upon its utility. if they are being squeezed, with the oil prices, it's not just about russia, it's about the alleged flight demand imbalance. so that is something which is

going to prove unhelpful. as that money is recirculated into the russian economy, we could be looking at an economy here which is running 3%, 4% in recession over the next couple of years in terms of drop of run rate. and that, i think, is -- yeah, valuations are clearly reflecting what's happening so far. but that doesn't -- when you put that whole page together, it's not something i would want to find at this stage. >> we talk about the build up of separatist troops on the border of ukraine at the moment. if fighting kicks up again, have they now got a critical mass of troops to make gains in ukraine? >> they probably do have enough of the build up to take certain sides in donetsk region, certain areas around the city of luhan. the big question will be the port of mayakor. it has two defense rings. they're going to need a special force to take that particular

town. >> thank you very much. coming up on the show, jcpenney sales fall flat as the retail giant stems its outlook. we check up on the retailer later in the show.

cisco systems first quarter profit full as demand for high end routers offset by continued weakness in emerging markets. revenue rose 1%. cisco expects second quarter revenue growth to be below analyst estimates. cisco's ceo will be on "squawk on the street." earlier, our colleague spoke with cisco ceo john chambers and asked about emerging markets. >> we have the uncertainty of emerging markets. we saw mixed results in markets in q1. for example, in the emerging markets, we saw positive growth, 2%. very solid in africa offset by,

you know, lower growth and negative growth in russia. so overall, i think that there were positive results and we think the guidance is pretty strong. clearly, the reduction or signaled reduction in cap expending by the very large u.s. service has provided a big portion of global cap ex. that's going to have an impact. >> despite mixed results from cisco, we should point out the stock is up double digits this year. old tech has been a winning trade for investors. intel, microsoft, .of the other tech outperformers this year. these companies aren't delivering double digit sales growth by any means. but they deliver xwroeth year over year, quarter over quarter. it is not amazing growth, but it is something there. they continue to raise their dividend, which given this low rate environment, that's seen as an attractive value, given what these companies offer. >> now, in terms of other stocks on the move, jcpenney reported a smaller than expected third

quarter loss, but sales were flat and the retailer is sending a full year outlook. jcpenney says warm weather in october hurt sales of sweaters and other items, but it is seeing nand in home goods and jewelry. it fell about 5% in after hours trade. down will 4.8% in frankfurt. but the stock has been one of the underperformers, down about 20% over the past three months. and you really hope that the weather is depending to help out the retailers and the department stores. last year we had the polar vortex. the fall was too warm. so we're hoping for the right winter weather. it shouldn't be too warm, it shouldn't be too cold. i guess we'll have to -- >> it will be a good one to watch, as well. they did before the earnings yesterday. we will have to see how the environment earth cuts into earnings or helps these companies this holiday season. something to definitely watch. >> now let's have a look at some

of the stock moves in europe so far today. the london stock exchange posted an 18% rise in revenue for the first half of the year. the ceo has put a focus on moving into high growth areas, like post trade and information services. as you can see, up 1.2%. ill yad up 4.5iad up 4.5%. k&s is up 2.3%. rwe, on the other hand, is moving down. german utilities says unreasonably warm weather and low wholesale prices will continue to weigh on earnings, despite earnings and ra frovt rise for the first six months of the year. annette is in frankfurt with more on the story. >> yes, indeed. and the market is not really

looking at the bright news here when rwe is reporting. they are looking at some insecurities rounding the dividend because the market is still expecting that the company is going to pay a dividend of one year. and looking at their dividend payout ratio and the profit level there, they probably will achieve that look increasingly unlikely. we have operating profit now down by 30% in that quarter and that was a little bit more than expected. but this does not make up for the level of operating profit we are looking at. and in addition to that poor operating profit performance, there also comes some insecurities surrounding the sale of their dva broader which they were planning on selling to the russian billionaire mikhail freedman for roughly the price

bidding in euros, but with all those tensions, even the ceo of rwe is now saying we cannot predict that we will be able to bring the talks to an end until the end of this year. and that, of course, is negative for rwe because they are desperately seek to go reduce their debt and off more than 30 billion euros, which they ama amassed by investing in the wrong kind of energy production system for the future. they were heavily investing in nuclear energy and coal, which is now, of course, no more the flavor of the year, we should say, because all what we are concentrating on here in germany is renewable energy and german utilities like e.on and rwe have missed that renewable energy trend tremendously. and now they don't have enough money to invest in it because they're sitting on debt. so bottom line is operating profit is through the floor, but

a little bit better than expected. they're above that sale of the va unit to mikhail freedman because of all the tensions and they're still sitting on that huge debt pile. >> annette, thank you very much. still to come on the show, political uncertainty keeps the yen on a slippery slope. we have more on japan's potential snap elections, coming up next.

fifa gives the green light to qatar after a investigation into corruption finds no wrongdoing. the u.n. accuses moscow of fueling the war into ukraine. and german prices fall further, this after a warning from u.s. treasury secretary jack lew. and shares of cisco come under pressure as we check emerging markets weigh on the company's earnings as well as

outlook. let's have a quick look at european markets. we're seeing a very modest rebound from yesterday's 1.1% losses for the stoxx 600. the ftse 100 is up by 0.3%. the xetra dax higher by 1%. k&s is higher after very good numbers lifted its outlook at the cac 40 up by 0.9%. we had a couple of companies reporting up earlier there because it is returning more money to shareholders. the stoxx 5 50, comfortably higher by 0.9%. >> too much movement today, which has been the same story throughout november, certainly when you compare it to october. the ten-year u.s. treasury yield at 2.38%. germany at 0.82%. let's look at forex, as well. there's been a slight decline in the dollar today against -- oh, a slight rebound in the dollar against most currencies. sterling is at 1.5755. this is a fresh 14-month low.

a bit of movement in the euro rebounding slightly today. the yen is flat, quite significant moves in recent data. >> it's pretty much flat, but the trend is, of course, to the down side. the yen is extending a slide versus the dollar thanks to renewed speculation that japanese prime minister shinzo abe may postpone an additional sales tax and call for snap elections. let's discuss the further moves in the yen. joining us now is simon derrick, currency strategy at byn melon. the market is pinning its hopes on a president from mr. abe. do you think that is all priced in? >> no, i don't at all. it was only a week ago that we weren't discussing the idea of an election. and it's really all we've heard over the course of the last few days has been the denials. i think now the market has its head around we could be serio

seriously postponing the date of the hike. >> longer nikkei, short the yen, that's been a winning trade so far this year. is this a trade that can continue to work for investors? >>. >> i think what you see, if you look at what the government pension funds do, yes, you get a pretty good idea. then the money reallocating from the markets, he's going actually into the nikkei. the idea that the stock market continues to do well on the back of ebx. it's a straightforward. >> expectations are sort of fulfilling. how close is japan past that point of no return in terms of

deflation and it not being able to recover? >> the very fact that there was that move by the bank of japan and governor koroda was worried we won't have that stock price a week and a half ago told you we still have some way to go. given the fact that the government probably has the better ideas. so i think more to come. >> and what we've missed over the last month or so, we've had the bank of japan, we've had those changes in the pension fund and a call for snap elections. >> i think that for me i'd have to say it's probably the yen story. the election story because they're pushing back the data, the fiscal reforms. so it's adding fiscal money. >> and the other currencies, it's a huge focus recently is the ruble. in the last 30 minutes, russia's central bank has said it is limiting liquidity for a tax on the ruble, this after the bank abandon its trading corridor on

the currency earlier this week. >> the ruble fall has taken a toll for brutal calls which earlier this week it indicated a fall in profits. i caught up and asked if he expects sales to take another hit. >> looking out to the future, there will be growth again in the russian markets and also in ukraine. we are very low in terms of consumption level now 55 year per capita, 30% lower from investing markets. and it has been driven by a lot of price increase, driven by increases and always a part of the universe kiosk, stepping out continue selling beer. i think of course the currency rate and the current geopolitical situation in the short-term can create some uncertainty and also create local high inflation. that will not help category. but into the future, yeah, we

will get close into this market. >> let's go back to simon derrick, chief currency strategist at bny melon. many of the investment banks have dropped their trade recommendations on the ruble because they think it's simply too hot to handle. do you want to get back into the game and tell us where the ruble is heading? we have more visibility. we know they took away the trading vent on the path to the floating currency. >> we have something that, yes, they've made an astonishing move. getting over the free flows, if you speculation, the world is -- forward. this really is about -- than oil prices on the foreign growth. the ruble continues to get better. yes, i do. because i think the oil prices

continue to get better. that is where the major problem lies from. they're lower in the ruble. >> mr. putin said these are all speculators which are on the value of the ruble. but it's not. it is fundamental investors with oil prices to see the growth outlook. >> look at the central banks and russia's forecast just last week. they were talking about zero growth in 2015. they were facing an oil price because it is $94 a barrel. another $80 a barrel. it's based on some high elements. >> let's take a look at the euro because the die verging monetary policy between the fed and the ecb, the fed pulling back on monetary support, ecb looking for other ways to provide stimulus to the economy. does that make the euro a great short right now? because it would be interesting to see if there were any investors who would go long the euro. >> i wouldn't recommend going long the euro.

i think it's probably the euro actually -- that we know where the ecb is going. but it's the pace at which they're goth at. they're going slowly. we know the reason the battle is taking place within the policy with mr. draghi and with the bundes bank. as long as that moves remains stymied, we're moving more slowly than we need to on monetary policy. sterling and the yen, it could reverse a little bit. there's no question, we were at low 1.20. >> but what if we see a surprise in tomorrow's eurozone growth rates, could we potentially see the eurozone move higher? >> well, it would be fascinating to see rebounding european growth rates. we did. but i think most of the numbers that come out would go against that. >> we will definitely be watching. simon, derrick, thank you so much for your time, chief currency strategist at bny me n

melon. two separate warnings in brisbane, jack lew says the region is facing a lost decade, criticizing policymakers for not achieving the 2016 objective of strong, sustainable growth. the imf has issueds own warning on growth saying it expects the eurozone to the downside. german growth price inflation fell 0.3% in october. fire up the printing press to ward off the flet of deflation. meanwhile, the german government panel of independent economic advisers known to some as angela merkel's wisemen have cut their forecast to 1.2% from a previous 1.9%. and after the release of their annual report, louisa spoke with the chairman and asked if there was a risk of germany falling back into recession. >> well, we are not talking about a recession. we have been disappointed because economic recovery that we have foreseen which was carried by the first quarter,

the strong growth in the first quarter has not materialized. we have seen a jump in development and for geopolitical reasons, the conflict between ukraine and russia have expectations here, obviously. the euro area has developed much weaker than we hoped for and we expected. and, of course, the german government has undertaken a lot of reforms to the labor markets through the social security system and energy policy which, as a whole, as a package, did not generate really the basis for a strong recovery. >> how much do you fear deflationary scenario, not just for germany, but for europe? >> well, in the moment, nobody really projects or predicts deflation to happen. we have monitored and discussed very closely the actual side of the european central bank and the quantitative easing they have started to engage in. and then our assessment, the

country's assessment if the deflationary tendencies actually to emerge, then there would be enough ammunition in the arson of the ecb in order to counter that. quantitative easing undertaken stringently. in the moment, it's visible that it is enlarging its bank sheet as it sometimes discuss to be more cautious because there are some other risks. >> now, speculation that the tax hike will be delayed in japan is growing stronger and pushing stocks on the nikkei higher. we have the story live from tokyo. >> the nikkei rose for the third straight day today, hitting another seven-year high. the government will postpone its planned sales tax high to 10% there by lifting the economy. the bank of japan governor

koroda said the tax hike would go ahead as scheduled. chief cabinet said the timing of increase is for the government to decide. the market took the remarks as a sign that abe is leaning towards a postponement. another reason they're betting on a delay is the likelihood that a snap election will be called. as for when a decision on the tax hike will be made, economy minutester amare hinted that abe could make the call any day after the 18th. it appears the prime minister may not wait until the revised gdp and the other key economic indicators coming out in early december, which is when he was widely expected to announce his decision. back to you. >> thank you very much. now, it has been a rough year for the teen retail saels space, but american eagle enjoyed a nice jump in trade yesterday after boosting its outlook for the third quarter to 22 cents per share from its

upper target of 19 cents. it has erased most of its losses this year. take a look at american eagle, up just about 10% in yesterday's trade. now, take a look at some of the other players in the teen retail space. you can see it hasn't been a very good year. you can look at abercrombie & fitch, down 11%. arrow pose tai aerotostale down 68%.. coming up next, we look at how american eagle is looking to enter the retail market. that is coming up next.

. ceo brian roberts says the company is pushing ahead with the deal to buy time warner cable despite hiccups into regulatory review pep says he still expects the transaction to close in the first quarter. recent rules for broadband providers or net knew tallty has not damaged his interest in the acquisition. comcast trading higher by about 1.2% in frankfurt.

hasbro says companies have agreed to the basic framework of the deal to buy dreamworks. dreamworks has been exploring a sale with several potential suitors, including japan's softbank. but those talks fell apart when they became public last month. hasbro is flat dreamworks up around about 30%. >> well, that story got us thinking about our favorite board games. >> has it been that long for you? >> it has been a long time. i think it's probably one of the german board games. i think the equivalent would be trouble or -- >> what is your interest after some of the board games? >> i can tell you after the show. >> there were a lot, like risk. hotel was a good one.

the game of life was a good one. >> this is so nerdy. >> nerdy? it's about world domination. what's nerdy about that? monopoly. they do take a long time to play out. but the modern day we're playing a board game is on an ipad, which is quicker, but you lose some of the romance of sitting down. >> it is a beautiful game. >> now, julia, we want to hear from you. whether you're testing your likes to the skills of monopoly or do you like scrabble? get in touch with us, worldwide@cnbc.com or @cnbcwex. our personal handles are on the screen now. >> american eagle enjoyed a surge of 10% yesterday after a boosting its outlook for the third quarter to 22 cents per share from its upper target of 19 cent. the clothing and accessories

retailer is now getting ready to land in the uk, opening up its first shop in london and kent tomorrow. joining us now is the executive vice president for global commercial business at american eagle outfitters. simon, good to have you in studio. >> thanks for having me. >> despite raising your guidance, it's been a tough year for american eagle. now you're planning your expansion into europe going through its own economic challenges. why expand into europe now. >> we have been looking at it for some time. great opportunity, great markets. we're a global brand. we've seen selling to the uk for a number of years. we have a great lead into the markets through our online business. we felt the timing was important now. >> there's a lot of competitors to the space. you could argue top shop among h&m and others. >> we compete with them everywhere. we compete with them on a global stage. for us, i don't think -- i think competition is global now. i think the day of, you know, having a local player as your

competition is long gone. for us, it's a global stage. >> the bigger question is, and one that you've been facing in the u.s., how do you stay relevant in the teen market? how are you changing your strategy? >> i think, yeah, we took a change in direction earlier this year. we've now focused -- our strategic direction hasn't changed. we see the digital channel as a critical part of our expansion. this year, you know, the last two years, we've significantly expanded our technological offerings and we've found mobile is the fastest growing channels today. we're looking to engage with the customer the way the customer is engaging with us. >> let's talk about the locations you're launching in london. you're going into stratford, a big shopping center and into a shopping center far west. is that better than a stand alone store in london? >> the last flagships today are

not necessarily about real estate. the flagship for us is about the experience. so we're focused on giving a flagship experience no matter where you turn up or shop with us, whether it's online or in one of our brick and mortar stores or a combination of the two. >> we're a classic american brand with an urban edge. we sell a time of dem. our business is primarily bottom driven. and then over time, they move into top players, we become relevant to the various trends that, you know, occur from time to time. >> despite moving into two of these big malls in london, mall traffic continues to be weak in the u.s. what are you going to play a more active role in the digital world? >> for us, the next four weeks is critical. thanksgiving is the most important time of the year for retail in the u.s. for us, we've engaged with the customer very differently. most people say who is our

direct competition today? our direct competition is digital, it's data. definitely anyone who sells online is our competition. i would even go further and say samsung. at the end of the day, the consumer would rather bay data than other things. how we build our model around the way they want to shop with us. >> what about -- which appeal to a lot of female consumers? >> i think we're a brand, so we compete in a different space. we're looking for the consumer to buy into what we as a brand stand for and the value and the proposition that we offer. >> your company lost the ceo at the beginning of the year. there's still no replacement. how difficult is it for you to do your job when there is no clear leadership role at the top right now? >> i wouldn't say that. jay is definitely our ceo. jay has been involved as the ceo since we're in public. our focus is on our consumers

and delivering returns to our investors and to our employees. we've got a clear strategic direction, we're very focused on delivering them. i think our third quarter results speak to the efforts we've had made over the last nine months to deliver those results. >> we're going to leave it there. simon, executive vice president for global commercial business at american eagle outfitters, which by the way, stoke was up 10% yesterday. >> now, they see the wiseman built his house on rock. the team behind this sand castle is hoping the guinness book of world records will -- the decision to build it on a beach in brazil. the castle, which was built to advertise two american brands carries down with wind and rain. there is no announcement yet if the castle is a record breaker. is it a bird? is it a plane? if you're in cambridge, it could be your christmas shopping

winning its way. amazon has announced it is to begin testing same-day drone deliveries in cambridge where it has an r&d office. the online retailer has posted a number of uk job adverts including for flight engineers. i was speak to go craig at the desk. why do you think drones could play a bigger role going forward in terms of delivering goods and products to consumers? i would imagine a kid being on the ground, seeing one in the air and using his bb gun and shooting it down. >> that's one of the risks. there's probably bigger risks out there. it could cost cuss massively for delivery companies. i was thinking about the logistics of it. sounds like complete chaos to me. air traffic control would get involved. i can see the potential for it, but i think it must be a hell of a long way off. the european space agency has broken a new frontier by landing a spacecraft on a comet. the washing machine sized

shuttle is hurling through the solar system somewhere between mars and jupiter. >> these are pictures from 300 million miles away of something we've never seen this chose before. the surface of a comet. this journey began a decade ago. today, success. from mission control in germany to viewing parties across america, scientists and space watchers were overjoyed. >> i feel proud. >> and in some cases, overwhelmed. rosetta chased the comet for 4 billion miles, recently getting close enough to pick a landing site and even take a selfie. but touching down was anything but easy. >> essentially, it's like dropping a penny into the mouth of an open bottle from a really great height. >> except this was infinitely

more complex. the comet is relatively smile, barely wider than the islands of manhattan. but with a rough surface, low gravity and is constantly spinning. >> i think it was bold. it took a certain amount of ambition, shall we say, to even attempt to do this. >> despite the initial good news, tonight, confusion about whether the washing machine sized lander managed to stay put on the comet's icy surface. still, scientists did collect some data and that could help solve one of life's biggest mysteries. how did we get here? >> the comet was formed before the earth was and it brings an enormous amount of water with it 37 now, we are a water planet. where did our water come from? and one of the ideas is indeed a lot of the water came from outer space. >> man kind has marvelled at comets for centuries.

today, they became a destination. and we all got to go along for the ride. katie turr, nbc news, germany. let's have a quick look at european markets in the green today, bouncing back after yesterday's quite significant losses. not too significant again today, nor any clear reason for it. a bit of a bounceback from yesterday's losses. similarly, u.s. futures point to go a higher start to the trading session after the dow and the nse were lower yesterday breaking five-day streaks of record closing highs. brazil's economy facing several challenges, but that's not stopping general electric from stepping up its investment in the country. we go like to rio de janeiro, coming up next.

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 to a rebound after major averages snap a six-day winning streak, investors eyeing earnings retail giant walmart for direction. shares in cisco come under pressure as emerging markets weigh on the company's earnings and outlook is. >> shrek may soon have to answer to a new boss, optimus prime as hasbro is set to buy dreamworks

animation. reports suggest is russia is fueling the war in ukraine. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> i'm carolin roth. still to come on the show, fifa gives the green liar for qatar to host the 2022 cup following a corruption probe. sold for $151 million after a record breaking auction at christie's, we take a look at some of the world's most expensive pieces of art. and find out why cambridge could be hearing a strange buzzing in the air in the coming months. >> announcer: you're watching "worldwide exchange," bringing you business new from around the globe. and it's all about the consumer, isn't it, wilfred? over the next couple of days, we heard from jcpenney and macy's,

two retailers giving us a good indication of if the consumer is spending money in the u.s. economy. wage continues to be an issue. one of the reasons we're not seeing consumers spending a much, that could change in this holiday season, given the highly promotional environment. >> i'm much more interested in that forecast for the holiday season. it could be a really strong holiday season for all the retailers. we've got employment improving and oil prices down. it is setting itself up for very high sales for the retailers. but interestingly, so far, those six factors don't seem to be working. it's good to get a sense from the retailers why that is and which areas for the benefit is presumably going to be towards the lower end. >> given that, walmart will be very much in focus today. the biggest retailer reporting earnings that will set the tone and help us understand if the drop in oil prices is resulting in consumers spending mover. taking a look at premarket trade, right now, markets are indicating a higher open despite yesterday's pullback.

the dow jones industrial up about 3 points in market trade. the dow jones up about 14 points. s&p 500 also in the green. if we take a look at the euro stoxx 50, currently up just about 20 points despite that inflation data that came out of germany. of course, now all eyes on that eurozone gdp number which would be due tomorrow. we have u.s. retail sales which could change the story, of course, because wall street has been trading in record high territory, diving into the european markets to show you where we're seeing the greens across the eurozone. the ftse 100 has been helped by better-than-expected earnings we've been getting over the past couple of days. germany in focus. 72-point gain for the german ind index. which just goes to show that low inflation, even deflation is still a topic of concern for investors. france and italy in the green. a positive day here in europe, wilfred. >> absolutely.

a lot of green behind us, which is surprising given the lack of clear fundamental positivity in recent data. let's look at the bonds. there hasn't been that much movement in the last couple of days or, in fact, throughout november. so much, much less volatile in the bond market that we had in october. the u.s. ten-year seems pretty settled between 2.3% and 2.4%. 2.36% today. the ten's year in germany, 0.8%. that is just a little more yield compression we've seen in the u.s. the ten-year in the uk, 10.2%. let's get to forex. we've seen the u.s. dollar come off a little bit today. nothing too significant in most of the currency price. the euro has just bounded back from two-year lows. 1.2465. the yen bang on flat today, 11548. that has been hovering around seven-year lows on the talks we

might have snap elections in japan which abe has been denying, but the pretty keeps on picking up steam on that story. it's down 0.13% today. seema, back to you. >> wilfred, two separate warnings for europe ahead of weekend's g-20 summit in brings gain. the imf has issued its own warning on growth saying it expects the eurozone to surprise to the downside. new york fed president dudley has said that an early rate hike might be difficult to rectify

and could undermine the central bank's credibility. michael, let me pit forth a counter argument. i would argue if it tients too late, we are risking another asset bubble. where do you stand on this? >> i was pleased to hear what he had to say out of dubai. it was very clear we will rather run hot than be too late and into into another recession in the united states. >> michael, it's often said the market takes the stairs up, the elevator down, similar to what we saw in october. major volatility, a big sell-off. the recovery has been remarkable. will we see these big sell-offs going forward as we wait for rates to ultimately rise?

>> well, that decline, some people are saying victory, i would call it vulnerability. the issue with that recovery and when it happens was key with a lot of companies around the world. having a lot of conversations with the different regions of the businesses. and it wasn't a very, very good feeling to be going through budget and cap ex decisions at that time. certainly in canada where we've been hit in the energy sector with the price of oil, it has reverberations across our country. and eelths not a very confident feel that we went through in october. so it will be interesting to see what happens if this can be sustainable. >> you say i think markets will continue to rise through the end of the year. one of the reasons for that you say is fomo, which i quite like. >> yes. certainly in the north american region, a lot of hedge funds, a lot of mutual funds for that

matter, a lot of money managers are sitting behind the index. we've got a six-week run in here to the end of the month. i think it's a classic phrase, window dressing. i think it's going to happen. i think if you see the top leaders in the s&p 500, the dow, certainly some of the leaders in canada, they'll extend their lead into year end, likely. i don't think we're going to see a much bigger rise certainly in canada. i think it's probably going to trade sideways. i think you'll see a lot of leadership and those will be the name that propel you into december 31st. >> 3%, 5%, 6% in the markets until year-end. if we do see more volatility hitting us, you might be losing much more than that. >> you know what? if you stick with some of these great companies, they're doing

very well. they're doing very well independently of what's going on macroeconomicly. i'm not saying we know what's going to happen over december 31st. i'm very cautious. all of my portfolios are much higher in cash than normal. i would suggest most should be sitting with a higher reserve. >> the consumer discretionary sector continues to lack. where do you tell investors to be right now? >> there's a lot ofcation about the gas prices going down at the pump. i'm not really sure that people translate what they're saying at the pump into shopping immediately. i think it works more negatively. i'm not sure it really works in the other direction.

having says that, you ever to be careful in the consumer space. you have to go where people are positioning for where the ball is going. we have walmart this morning, wall street next week. wallet mart is a dow component and it will have a big influence on the move out there. but i think people have to look at the different spaces to make money in retail. >> michael, thank you for your time. cisco systems first quarter profits fell 8% as increased nand was offset by continued weakness in emerging markets. earnings beat forecasts as did revenue. the company saz cfo will step down in january. cisco shares fell about 1% in after hours, down a similar amount in front further so far today.

>> jcpenney report a smaller than expected third quarter loss of same-store sales were flat. jp penny says october was hurt for sales in october and other items. jp penny shares qualified in after hours trading. wart march reports third quarter earnings prosecute the bell. analysts are expecting down 2 cents from the last quarter. investors will be eager to hear what the retail giant has to say about consumer sentiment we also the drop in price in oil, what that means for walmart consumers. annoy let's get you a rundown of what to watch this trading day. at 2:00 p.m., we get the october

federal budget statement. fed chair janet yellen isn't taking questions. charles plosser, you spoke to just two days back. aside from walmart, we get numbers from kohl's and after the bell we hear from applied materials and nordstrom. it's game on for the 2022 world cup. we bring you the full story after the break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.

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these are your headlines this morning. walmart reports earnings before the bell. how much has the strong dollar hurt the retail giant's numbers? cisco shares fall as expected, growth to slow in the second quarter. russia central bank says it will act some speculative attacks on the sliding ruble. visa has given the go ahead for qatar to host the 2022 world cup, this after a judge overseeing a corruption investigation saw no evidence to reopen the bidding process. in a long awaited report, the group said the very -- which might have occurred did not

compromise the integrity. and russia says it has seen military equipment and personnel cross into the border in ewe crepe. europe said it has witnessed a number of unmarked convoy in eastern ukraine. heavy fighting has been reported in donetsk while a ukrainian soldier was killed near luhan. moscow's representative said movements were on russian soil. however, the u.s. ambassador has a different take on events. >> nato confirmed it has observed columns of russian equipment, primarily russian tanks, russian artillery, russian air defense systems and russian combat troops entering ukraine over the past 48 hours. thrift goes on, but the pattern is clear. where russia has made commitments, it has failed to meet them. russia has negotiated a peace plan and systemically undermined it at every step. it talks of peace, but it keeps fueling war.

>> meantime, dutch recovery workers continue to remove wreckage from the mh 17 flight on wednesday. and next up, carolin, we go live to rio de janeiro to talk to general electric on why it's expanding into brazil. we'll get thaw story, next. ♪ 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.

welcome back. let's take a look at u.s. futures. after five consecutive days of new closing highs for the s&p 500, we did see stocks retrieve just a little bit yesterday. but right now, the s&p 500, the dow and the nasdaq indicating a higher open as we await walmart to report earnings. moving on, is it a bird, is it a plane? if you're in cambridge, it could be your christmas shopping winging its way to you by a drone. amazon has announced it will begin testing same-day drone delivery in cambridge. there are a number of job openings on its website for flight engineers and the like. amazon, the pressure really is on the company to find way toes strengthen its product appeal and to ensure that the consumer didn't slip to another online service platform to buy

its goods. >> that is such a boring approach with amazon. let's focus on the drones. they look awesome. i don't just want the drones to deliver my package. i want to have one. >> you can buy one, you know. >> why? >> i think amazon. buy it from amazon and deliver it via drone. >> i don't think they deliver it just yet. i think this is the plan to one day get there. >> you know what? they're still looking for people to work for them. if you're so bored of this job, you can always go to work for them and flight operations engineers. >> i'd be quite -- >> it would be fun. i don't think i would get through the even first day vetting process. but it's very exciting. i'm flower should whether it will work or not, but it sounds fun. comcast says it's moving forward with the deal to buy time warner cable.

roberts says so-called net neutrality hasn't affected his interest in the acquisition. comcast, a parent of cnbc, is up by 1.25% in frankfurt trading. hasbro is reportedly in talks to buy dreamworks animation. the companies have agreed with a price likely to top $30 a share, which would be a 5% premium. dreamworks has been exploring a sale with several businesses, including japan's softbank. but those talks fell apart when they became public last month. hasbro flat, dreamworks up some 20%. >> that story got us thinking around the desk about board games. i don't care what it is, i just don't like losing. let's go with the game where i always win. i'm sure against you guys, i would win in the german board games because i clearly have the advantage here. >> i don't know. if it's monopoly, it's quite good, carolin. that's something we play every christmas at the mody household.

>> there are other great ones, as well. risk, game of life. and my own personal favorite -- >> game of life, i'm good at that. >> another favorite one, called the really nasty -- have you ever heard of that? >> i have not. that sounds intriguing. >> i recommend that. >> i would recommend, wilfred, the next time you're at a public, you should talk about these games, about how you like playing them. i'm sure that will score. >> i'm going to make a note of that. seema tells me to do that next time going out, bring monopoly board. we want to hear from you, what are your favorite board games? do you still play board games? or do you use the electronic versions on ipad? robert tweeted in and said surely the best board game to play is settlers of catan. another tweet, my favorite is

monopoly. i'm not quite sure where the link comes from, but we like your conclusion, nonetheless. join the conversation here on "worldwide exchange." on to another interesting story, the european space agency has broken a new frontier by becoming the first organization to land a spacecraft on a comet. the washing machine sized shuttle is now hurling through the space system somewhere between mars and jupiter. >> these are pictures from 300 million miles away of something we've never seen this close before. the surface of a comet. this journey began a decade ago. today, success. from mission control in germany to viewing parties across america, scientists and space watchers were overjoyed. >> i feel proud.

>> and in some cases, overwhelmed. rosetta chased the comet for 4 billion miles, recently getting close enough to pick a landing site and even take a selfie. but touching down was anything but easy. >> essentially, it's like dropping a penny into the mouth of an open bottle from a really great height. >> except this was infinitely more complex. the comet is relatively smile, barely wider than the islands of manhattan. but with a rough surface, low gravity and is constantly spinning. >> i think it was bold. it took a certain amount of ambition, shall we say, to even attempt to do this. >> despite the initial good news, tonight, confusion about whether the washing machine sized lander managed to stay put on the comet's icy surface. still, scientists did collect some data and that could help solve one of life's biggest mysteries.

how did we get here? >> the comet was formed before the earth was and it brings an enormous amount of water with it 37 now, we are a water planet. where did our water come from? and one of the ideas is indeed a lot of the water came from outer space. >> mankind has marvelled at comets for centuries. today, they became a destination. and we all got to go along for the ride. nbc news, germany. >> a very g cool mission right there. i will say i would admit there was a brief second in my childhood where i did want to become an astronaut. even i was sent to space camp back in the day. very cool, right? >> being an astronaut is probably the coolest thing out there. do you want to go to space,

carolin? >> why not? anytime. now, ge moving on, it's tapping into brazil's oil and gas resources. the focus on the developments in the energy sector. as we have been saying throughout the show, we were planning to join mark live in brazil. there have been technical issues. we are working to improve those, but we won't have interviews right now. but other news to look forward to, christie's gets an offer it could be refuse as andy warhol's painting close for close to see 70 million at auction. arrows pointing higher, joy jouns higher in premarket trade.

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it's 5:30 a.m. in new york. good morning and welcome to withes was. i'm seema mody. >> and i'm wilfred frost. >> u.s. futures point to a rebound after major averages snap a six-day earnings streak. >> shares of cisco come under pressure as we test spending and emerging markets. shrek may have to answer to a new boss, optimus prime. hasbro is in talks to buy dreamworks animation. the u.n. accuses moscow of

fuelling the war in eastern ukraine. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> if you're just tuning in, thanks for joining us here on "worldwide exchange." the dow snapping its six-day winning streak. the s&p 500 snapping its five-day winning streak. but right now, futures indicate ago higher open. we're looking at the dow jones industrial up about 30 points in premarket trade. the s&p 500 up just about 3 points. the nasdaq, though, has really been in focus thanks to the outperformance of oil tech names. we'll get to that in a second. keep in mind, the nasdaq has been trading at a fresh 14-year high and it is indicating a higher open on thursday's trade. diving into the european markets, which, of course, have been in focus given the economic data we've been getting over the past couple of weeks, we did get german inflation numbers. consumer price in germany

stabilizing at a lower level in october. that goes to show low inflation, deflation continues to be a big threat to this market, this coming ahead of tomorrow's gdp number which will be a focus to investors. the german markets up 84 and we're seeing gains across the board for france and italy, as well. now, the euro stoxx 50, a good gauge of stocks across the eurozone. up just about 25 points. keep in mind, earnings, better-than-expected earnings from a lot of the european conglomerates continues to be a catalyst from the euro stoxx 50 index. carolin. >> cisco system's first quarter profits fell 8% as increase demand was offset by continued weakness in emerging markets. earnings did beat forecasts as did revenue which rose 1%. the company said the ceo will step down in january.

>> we should point out, carolin, that old tech has been a winning trade so far this year. companies like cisco up double digits this year. microsoft, intel. these companies aren't seeing explosive revenue growth, but they are delivering stable, consistent, year over year sales growth. also dividend paying. this is a low rate environment and that's attracted a lot of these hunters and these names do provide a dividend yield, which is higher than the average of the s&p 500. and then cash, acquisitions, cto of cisco publishing. cisco is actively looking to make an acquisition in the internet of space. so that continues to keep investors involved. >> but the bar is really high now given that the share price has risen so much. they want to see cisco and other opec companies, that they do deliver. >> absolutely. >

. >> jcpenney same-store sales were flat. jcpenney says warm weather in october hurt sales of switers and other items. but the ceo says november is off to a good start. jcpenney fell about 5% in after hours trade. down just about 0.8% in frankfurt. >> the launch of the iphone 6, that took away from other discretionary spending. hopes are high going into the year-end with the crucial shopping season. but is there enough money left? a lot of people spend it on their iphone. >> we're always talking about the strength, the fundamental strength of this u.s. recovery. so far, the retail stocks aren't really showing it. and it does make you question, is this really -- or does it just fueled by temporary liquidity. now, moving on, let's take a look at today's other top stories. the u.s. house is set to vote

today on a bill that approves the keystone pipeline which would transport crude from canada to two refineries in texas. that bill is sponsored by u.s. congressman bill cafferty. it sets up a vote next tuesday. that bill is being led by democrat mary landreau. >> it is time for america to become energy independent and that is impossible without the keystone pipeline, other pipelines like it that move our energy from where it is produced to where it is consumed. >> the white house says the action on keystone during the lame duck session of congress. president obama has expressed a preference for state department review of the project. u.s. business and energy groups are urging congress to fast track trade deals before the end of the year. they sent a letter to house and senate leaders on wednesday, signed by more than 200

companies, including walmart, boeing, ge and exxon mobil. the bill was introduced in january, but it hasn't moved forward for a vote. let's talk art. christie's has broken a record for the highest sales at action in contemporary art. a total of $852.9 million was taken. the highlight was andy warhol's triple elvis told for $81.9 million. joining us is fill yif hoffman, ceo. phillip, the last time we spoke, the markets were seeing a lot of volatility and i asked you whether or not recent volatility was impactsing sales. we know a lot of your investors are invested in the stock market. right now, the s&p is trading at near record high territory. does that translate into higher demand art? >> we didn't expect such a

strong sale and i think over the next 24 hours of christie's, you'll see $1 billion sold. there was a near record price at 70 plus million. the ed brushea called "smash," smashed the world record for brushe. the triple elvis offered $82 million. so there was really strong bidding. the room was absolutely crowded. there was barely any seating room and the world's billionaires were crowded into a few thousand square feet and bidding like this was their chance to buy the warhol for the like. >> let's talk about a couple of other pieces, phillip. we had john flag and roscoe. did the prices raise for those, as well? >> well, yes. the roscoe, that wonderful

collection from mrs. paul melon, sotheby's did a fantastic job of selling that and most of it made double estimates. the roscoe was very strong. there was a bit of disappointment on the second roscoe from the schlumberger. that should have hit 50 or 60 million. it just got above the 40 million. but the jasper john's flag, we thought that was priced at about 15 million and it bid up to 36 million. that rothko you're seeing on the screen at $45 million, that was the bargain of the week if there ever was one. that should have been up at $60 million, but the lkky buyer got it for 45. >> i just wondered, i'm curious what you think about this. how do you identify mispricings in the art market? because if you look at companies, if you look at stocks, you can look at their fundamental performance, you can look at earnings and revenues. that simply doesn't exist in the art market.

how do you spot any mispricing? >> you've got to look at what -- where is the -- which are the next museum shows? who are the big collectors? who are the movers and shakers affecting that market? five years ago, you could have -- for around 500,000 to a million dollars. today, some of the works were breaking, 8 million, 10 million, record prices. anybody who bought these five years ago would have made five to ten times their money if not more. you have to be sort of inside you. you have to understand the market. you have to really work at it. there are a lot of people who understa understand, but it's really a very, very small market. >> we know russia has played a significant role in the art market, but given the weakness that we're seeing in russia's economy, the fall in the ruble, are you seeing a dropt in demand from russia's rich as well as the o oligarch? >> yes.

russia has shown very low profile in the art sales recently. they are hesitant. it's expensive for them. they're huge collectors. i think they'll be watching these sales, many of them were quite pleased because they've got a lot of art that they've been buying over the last five or ten years. and that art probably has doubled in value. so from that perspective, great. from the buying perspective, no. it was very strong buying from new york, from the american collectors, museums, and allegedly walton family bought the museum, the rothko. so we're seeing the americans coming back and spending strongly. we're seeing asia. there was an asian bidding on the freud which made 16 million, 17 million last night, which was a surprise. who would have guessed that they would like some of the british artists? the bacon -- got 445 million.

tw years ago, you would have seen that make 30 million. 45 million to a european or american buyer. >> some big ticket items, definitely. thank you for bringing that to us. coming up, hollywood has mined for years looking for ideas. now one toy company may be looking to flip the script. all the details, after the break.

. ceo dick costello's moment of truth, it seemed like he delivered enough to get wall street excited. for now, shares moved higher as he talked about why private messaging is important to twitter's long-term growth strategy. he unveiled the idea of new mobile apps and addressed the need for twitter to understand how to use the service. twitter, ending the day higher around 7.4%. but keep in mind, shares still down about 30% on the year, wilfred. >> indeed. and i wonder how many twitter followers some of these characters next we mention would have if they were able to be on the social service. shrek and po the panda could soon share a new home with transformers and my little pony

if their corporate parents can work out a merger deal. with more, hampton pearson in washington. >> hello, wilfred. this is a big story. has bro reportedly in talks to buy dreamworks animation, giving the toymaker a new outlet for its wears. hasbro would pay a mix of cash and stock and it price could top 30% on the share. it's reported jeffrey catsenberg would stay on. dreamworks animation was spun off from dreamworks studios in 2004. it's hollywood's smallest studio, but it's responsible for hits like "shrek" and "how to train your dragon." those stocks fell apart last month when news of the discussions became public.

now, dreamworks has fallen on hard times over the past year with box office flops such as turbo and the rise of the guardians. it reported two straight losses earlier this year. but in the latest quarter, profits rose 17%. hasbro has reported strong sales in recent years last month. it posted revenue growth of 7% in the latest quarter. hasbro is the second largest toymaker behind mattel. some of its efforts have met with huge success. before live action transformers movies produced with paramount pictures have generated nearly $3.8 billion at the box office. but it's also had a few failures. notably, battleship in 2012. hasbro created a children's cable channel, the hug network,

in a joint venture with discovery. but that ended last month when discovery bought a controlling stake and rebranded that particular channel. >> hampton, thank you very much for that. wooerve discussing here in the studio in london how much we like board games. i like them a lot more than carolin and seema. what about you, hamp toni, have you got any favorite board games? >> working for a business channel and being old school, monopoly would be at the top of the list. but i have to say, i travel a lot and some of the variations on scrabble can fill up a lot of time in airplanes and airports. >> hampton, that was mine, as well, so we're in the same boat. that story did get us thinking about our favorite board games. get in touch with us, when you like monopoly or do you like the challenge of scrabble? what is your favorite board game? joseph tweeting in, my favorite

game is scrabble and winetroll treats my favorite board game is mon ollie, the perfect game combining strategy, greed and alcohol on each dice roll tund down for wine. join the conversation here on "worldwide exchange." i've never had alcohol involved with a board game of monopoly. >> neither have i. >> you think it's a good idea. >> we get great advise from our twitter viewers. >> perhaps we'll throw in a board game, as well. >> carolin doesn't look amused. >> i do. before we head to a break, your headlines. walmart has reported earnings before the bell. cisco shares fall as it expects growth to slow in the second quarter. russia's central bank says it will act some attacks on the sliding ruble. you can bring back a lot of things

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welcome back. let's have a look at european markets. as you can see, green behind me. it's a significant move for some of the periphery. italy up 0.7%. germany is up the best part of 1%. ftse up 0.4%. we had a sharp move to the down side yesterday. we are looking ahead to the ecb's gdp numbers coming out tomorrow. a bit of a bounceback from yesterday's sharp declines. we're going to focus in on russia now. don't forget, the start of the week, we had the central bank in russia saying they're going to allow the currency to free flow. that was a company comment by vladimir putin saying the only thing that's been moving the currency has been speculation. it appeared to work for a couple of days. the ruble regained some ground. it has now sharply moved back again. it's down 2%, acid you can see. it's down 40% over the whole

you're. they said earlier in the week that the central bank was stepping back, they may have to step in again. the ongoing debate with the ruble, is it speculation or fundamentals with the decline in the oil prices? the decline in the oil prices weighing on the prices with the oil company. so far today, both stocks down off the back of it. gazprom down 0.6%. rosneft down 1.23%. >> the drop in oil continues to be a big factor on wall street, as well. energy, one of the worst performing sectors on wall street. the utility sector took a big hit yesterday. but today could be a different day. right now, futures indicating a higher open. the dow jones industrial up about 40 points in premarket trade. s&p 500 and the nasdaq also indicating a higher open. the focus now will turn to retail. retail sales tomorrow and then, of course, walmart, the biggest

retailer reporting earnings in a couple of hours. let's give you a rundown of what to watch this trading day. weekly jobless claims out at 8:30 eastern, forecast to rise by 3,000 to a total of 281,000. at 2:00 p.m., we get the federal budget statement. fed chair janet yellen is speaking this afternoon at a new york fed conference but isn't taking questions. other fed officials speaking today, felly fed president charles plosser and marianne kocherlakota. >> as we were just discussing, walmart reporting third quarter earnings before the bell. analysts are expecting $1.12, down two cents from the last quarter. heading into the all-important holiday shopping season. the other big issue, the strength of the dollar. joining us now by phone from stanford is patrick mckiefer,

managing director. patrick, my big question will be how will the drop in the price in oil impact consumer spending? is that something we see this quarter or something that walmart will guide to for the upcoming quarter? >> well, i think it's something they may talk about in their guidance. i don't think they've seen much of a lift yet in their business. i was down in arkansas in mid october for the annual meeting for the financial community. and guess prices had been falling for some time at that point in time and it didn't seem to have had much of an impact on their business. the body language, the tone at the meeting was quite cautious, across pretty much the entire executive management team, including from the ceo doug mcmillan. so it certainly is a positive for consumer spending. i don't think walmart had seen much of a benefit just yet. maybe it will show up over the holidays. but it really hasn't. we saw some numbers yesterday from some other retailers,

including macy's and penny's that were not good, particularly in the month of october. so it just hasn't shown up yet. >> and, patrick, i want to focus in on a bit of the different sectors within the walmart earnings and food retail in particular. in the uk, e-commerce has been dreadful for all of the food retailers. but that's not really the case for walmart, is it? >> e-commerce for walmart, i mean, they're not -- they don't do a lot of food just yet in e-commerce. they're doing some testing of some delivery options right now. they're probably roll that out in a bigger way at some point in time. so it is a little bit more than half of walmart's sales in the u.s. they've got about 12.5 billion e-commerce business overall. that's where we expect it to be this year. i'm not sure if that answers the question or not, but those are a few numbers. >> patrick, walmart shares have

seen quite a rally over the last two or three weeks or so up 7% on the october low. but you're still seeing selling at these levels. why is that? >> we're a little cautious just going into the earnings today. the stock rallied over the past few weeks, along with the rest of the market. i think some of that is speculation about how lower cap prices will impact their business. there are also cycling some big cuts in the food stamp assistance program that went through in early november last year. it's been about a 50 basis point headwind to same-store sales over the past 12 months or so. so that goes away. but i just -- i don't think we'll see a big xwompt in the underlying problem, which is store traffic. >> all right, patrick, thanks so much for that. that's it for today's show. i'm carolin roth. >> i'm wilfred frost. >> thanks for watching. i'm seema mody. "squawk box" is next. when change is in the air you see things in a whole new way.

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good morning. hasbro said to be in talks to buy dreamworks animation. believe it or not, it would be a multibillion dollar deal. walmart is set to post earnings this morning ahead of the critical holiday shopping season. and smashing the record for the biggest art auction in history, christie's sells more than $850 million worth of pieces led by two andy warhol works. there it is. tri-elvi, one of them.

it's thursday, november 13th, 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. a big scare for youtube front man bono. he was flying from dublin to berlin yesterday when the back door of his private jet fell off and plummeted at least 15,000 feet to the ground. the plane landed safely. the pilots say the only thing they lost beside tess door were two suitcases from the luggage apartment. but holy cow, try recovering from from something like that in the midair. there was no loss of pressure in the cabin. so far, the door has not been found. on today's market agenda, we have a key read on the state of employment in the economy. weekly jobless claims are due at 8:30 eastern time. this is the first significant economic report we'll be getting all week long. the consumer dominating earnings