it's friday. a very warm welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. mixed signals on the health of the german economy. industrial orders jumped sharply, but the bundes bank dampens hope of a sustained recovery. chinese stocks have their best week in five years as

investors back on further bank stimulus. policymakers pledge practice fiscal policy in the year ahead. we are live in warsaw where the foreign minister says prolonged sanctions in russia are worth the pain for regional security. >> we are willing to put up with the sanctions because we think that the issue of borders in europe is more important. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and welcome to the show. seema, sharp sell-off in europe yesterday when we heard mario draghi being less mimted to 2015. >> it's incredible just to see yesterday how much focus was on draghi. markets were interpreting what

he meant when he made those comments about further easing, whether it will actually happen. at the same time, i wonder if investorses shouldn't just sit back and not focus on whether bond buying will happen. >> he tempered expectations. he used words like i will intend to expand the balance sheet, i will expect to expand the balance sheet rather than saying i will do so. people questioning his desire to do it and whether he was willing to. that is one of the reasons why we haven't seen full blown quantitative easing. >> a very, very strong rally in the chinese market. since they announced the rate cut, how much do you think -- >> i know the shanghai composite is up about 20% over the past month. one-win. >> there's more focus over the

last weeks. the asian market is now at a valuation premium. that is very, very rare and doesn't usually last a long time when it does happen. we're saying in the headlines people expecting a further rate cut. if we don't get that, we could see a sharp fallback. >> that would be india. prime minister mody, of course, providing fuel to the indian markets. the stock market, the sensex up about 34% year-to-date. of course, u.s. markets have been trading on record highs. today, it's all about the jobs report, the november u.s. jobs report out at 8:00 a.m. eastern with economists expecting another solid month of forecastling. forecasts calling for another 230,000 nonfarm payrolls. that would make it the tenth straight month employment has jumped 200,000 plus. wage gains are still tepid given

the gain to hold off rates well into next year. here is what some of our cnbc guests have been predicting ahead of today's release. >> we have a forecast north of 200,000 both for this coming friday as well as into 2015. >> i think we'll see moderate jobs growth, meaning 200 to 230,000 kind of jobs growth. that is strong enough to keep people thinking that the economy is growing. but not enough to scare people into thinking the fed is going to move faster than spec'd. >> the best numbers, roughly what we've been seeing, 2228, 225. >> i think the string of 200,000 plus jobs is going to break and i think we're going to start to eventually lose jobs and we're going to see the unemployment rate begin to rise. >> let's talk about the jobs report. joining us now, allen higgins. thank you so much for joining

us. given the acceleration in job growth that we have seen in the u.s. over the past couple of months, will the focus now turn to wage growth which has come in weaker than expected month over month? >> yeah, i think you're right. the key number is probably not the traditional nonfarm payroll, but focus on the average hourly earnings. it started to tick up. but more importantly, yellen said she looks at a wide range of employment indicators and that will be key. >> of course, the concern is if we see a rise in wage growth what that will do to earnings and margins. that could be one of the headwinds facing companies going forward. >> ultimately, yes. but we have a long way to go yet. >> will the jobs front make any difference to the year-end rally? markets have priced in very good jobs improvement. looking ahead to 2015 is more important than today's print itself, isn't it?

>> yeah. today is always an interesting day, always has been. for year-end, well, you've got this strange -- that is a great time to be invested, november, december, early january. so whatever the number, i think markets are likely to push higher. vols likely to drop. it would take a bit of a shocker in terms of a number to shake that, i think. >> let's talk about mario draghi yesterday. so much of europe's recovery is based on the expectation that he will act if necessary. yesterday, did he reduce investor confidences that he will prepared or able to act if necessary? >> he seemed to. then the markets took it and we had this semi official leak that, looks like there's potential action coming in january. i think the way we look, the bottom line is they would rather not buy government bonds. of course, germany is against it and it would involve buying a huge amount of german government bonds, italian government bonds

in particular. they would rather not do it, but they will if they have to. >> they might not want to do it, but do they have a choice at this point given the sluggish growth we've seen across the eurozone? >> yeah, and no oil prices. i think it becomes a bit behavioral, the idea that inflation ticks down to zero below. that will be problematic for them.. but they do have a choice. euro weakness would be one route out for draghi if he's fortunate enough to get that. but it's looking increasingly likely there's going to be some kind of package, broader package. could include corporate bonds, it will obviously continue to include covered bonds, but also some government bonds. >> allen, stick with us. we want to discuss more about the ecb's plan, what they do to revive europe's growth rate. but first, a look at the markets. >> thanks, seema.

we sold off yesterday when mario draghi seems less committed to full below qe than people expected. we lost about 1.8% on the stoxx 600. we're up 11.6%. it's not all just on that point that allen was making. after today's close, there was relief to suggest maybe january he was willing to come in at qe. that is partly on the back of stronger industrial production from germany despite lower estimates for next year's gdp. up in the less, we've recovered about two-thirds of yesterday's losses. germany regaining pretty much all of yesterday's losses. they're focusing on the industrial production out. those are sort of expected.

france is up 11.3%. let's look at bonds. now, similar moves to and fro in the bond market. yesterday, we saw bond yields stik back up in europe and today we've seen them come back down again. in the u.s., 2.62%. germany, 0.76%. the u.s. has just tickedback above 2%. those are the kinds of movements, very low in the grant scheme of things, but a little bit of movement around the margin whether or not we're expecting to have quantitative easing. forex, 1.2375, basically flat. it will strengthen on expectations. the yen has pushed past that crucial 1.20 mark. it is a record seven-year low

once again. this is really interesting. we crossed the 110 mark only in late october. we crossed the 115 mark early in november and we crossed the 1.20 mark early in december. the pace of the yen decline is incredibly strong. sterling is flat today, 1.5666. the ruble is very volatile. today, it's strengthening 1.3%. yesterday, it started about 1.5% in the green and ended about 1.5%. and the ready today, it's bouncing back again. commodities, wti and brent have had a two or three-day rally. 66211 for wti. what does all this mean for markets in asia? samantha is standing by in singapore to give us an update. samantha. >> thanks, wilfred. as you can see behind me, many green across the board today.

australia shedding some points. you know that they're braiding for one year on from the devastation. but the tropical storm risk downgrading the typhoon to category four, should hit category three by landfall. the country is preparing for that. we're seeing evacuations taking place. in japan, a sex-session winning streak. they're bedding on u.s. demand. on everyone's list right now is the shanghai markets. if you've got to look at the stats yet, this market has rallied 30% this year. it's a top performing market floeblly right now. as you look back to november 21st, the market is up 28%.

they say buy on the dips when it comes to china. they see it fueled by more easing come through to the pboc next year. anl, as i said at the top of the show, 19.8% returns in china since the rate cut. you still think valuations are still attractive. >> yeah, in a small way. you have these big caps, especially the banks, still very, very low valuation. i like to compare china with japan, for example. a lot of people compare china with japan in terms of a bubble. when i started my career, the likes of ibj in japan was on a hundred times earnings. in contrast, the likes of bank of china on six times earnings.

it's almost completely in the price that npls are low and it doesn't take much. there's a very interesting bit of research. if you look at the largest em funds, a large number, the majority were underweight china. and so just a little bit of good news. you see a big scramble to get in. >> but do you think investors are ignoring the fact that china is still dealing with growth and putting more effect on the fact that the central bank may cut rates going forward in 2014? >> yeah. that doesn't sounds too bearish to me. cutting rates, usually good for markets. slowing growth, who doesn't know that china has to go to a slower growth regime? that doesn't sound so bearish to us.

>> i get where you can be constructive longer term, but why are you cutting rates? you cut rates when there's surging unemployment or you're facing deflation or a recession. it underlines how badly this economy has been managed in the long-term. >> they want to transform the economy, but they want to do it in a very controlled, slow way. if you like growth slow too much, you get these rates cuts. >> mismanaged? maybe. it's very, very vibrant private sector. >> allen, thank you very much for joining us. much appreciated. coming up on the show, things are looking up in the toy space this year.

we take a look at what's hot and what's not this holiday season. are you going nuts ourover finances? there's an apps just for that. we're joined by the co-founder of a financial technology app called swirl. canada has given away for burger king to be crowned the third biggest fast food chain in the year. we'll get you the details, next. cute little guy, huh? this guy could take down your entire company. stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon. why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm.

and let's focus on russia. the ruble continues its volatile run as traders suspect intervention from the country's central bank after president putin vows to defend the country against speculators. he also suggested russia's military was still a force to be reckoned with. >> translator: will succeed in achieving military superiority over russia. our army is modern, xwad ready, polite, but threatening. we have enough forces, will and

courage to defend our freedom. >> russia has lashed out with its own countersanctions against ush. its economy will shrink 0.6% as a result of sanctions on europe's agriculture sector. >> could investors now see poland as unstable due to its proximity to russia and europe inspect. >> together with the united states, 15 to 16 times more supportful. when we speak together, our voice is stronger and we should be very clear and unprovocative but clear to tell the russians what they're foregoing in terms of their economic growth, in terms of opportunities for their

people in having this confrontation, which we didn't wish for and we hope can somehow be avoided. and brought under control. but it really is up to the russian leadership how they want to deal with russia and the united states. russia is growing at the rate of 5% for the last five years. now it's facing stagnation, maybe even recession. if you project over the next, say, ten years, russia would be losing trillion by entering into this unnecessary confrontation. first of all with ukraine, but also with us. its russian leadership needs to take stock of the situation. >> your trade ties and your

business with both russia and ukraine is longer than other countries, many other countries. do you think some countries may be thinking, we don't want to deal with poland now because we don't want to deal with them by default? >> you're right, that our exports are suffering more proportionally than markets in germany, not to mention the united states because as neighbors we trade so much more with russia. but nevertheless, we are willing to put up with the sanctions, particularly to our farmers with agricultural produce because we think that the issue of

valuebility of borders is more important. they are designed to prevent an even bigger threat, bigger -- bigger cost. now let's get out to wee wees sa who is in war sow. [ speaking foreign language. >> i tried. listen, it's really interesting being here because, first, the growth story in poland is pretty intact. they've talked about how they've seen growth in 20 years. at the height of the financial crisis when you saw a drop in growth, you saw growth happening in poland. they had a lot of austerity measures put in place. they've managed to see growth hanging on viably.

so in your open words, what exactly do you do, for viewers? >> we focus on private equity growth, we have one of the oldest funds specializing in internet growth. definitely the largest one in eastern europe. >> and the focus on text? >>. >> so when looking at the general trends happening here now and russia's sanctions and things like that, are you feeling any of this on your business? >> no, not at all. internet is growing faster when the economies are slowing down. >> and where are you finding

that there are newer opportunities? >> definitely specializing in the national trends. similar to russia it's close to 160 million people leaving eastern europe. it's easy with growth in the european market. we've seen more and more companies willing to become european champions. that's expanding growing -- expanding to the west european markets. we are seeing more and more willing to make this. >> and what are you finding with regard to money flows? are people willing to invest and take chances now? >> no.

we see really strong demand for investment. we have a record fund this year rather the challenge in order to make a proper investment using the liquidity but, of course, because we are specialized. eastern europe, we are still making that easy. >> and how about government policies and the change to the pension plan, as well? any of this having an impact on you? >> definitely. if ipo markets are not as -- which for us is kind of relatively good situation because we are looking at the public investment and private equity because if you look at the valuations level of the u.s. stock exchange versus poland, that's because of the pension

funds. maybe at the moment, it's not the best idea. but if you're thinking about making investments today, right now there's excellent value. >> just thinking ahead, what should i have for lunch? i want a good polish dish. >> bash is a red soup. typical of the ewe crane. deraghi is -- how can i say in english? >> i might have some red soup. when i spill, at least you can't tell. that's it from the warsaw stock exchange, guys. >> louisa, i personally loaf polish sausages. those are my favorite on top of my list. >> they're delicious, i know. >> take a picture of what you have for lunch and tweet us, yeah? so we can see how you're enjoying warsaw. >> will do. >> thank you so much. another big story for us here on "worldwide exchange," uk

households will spend an approximate $22 billion on christmas. >> that was aimed at 12-year-olds, that toy. >> how tall are you? >> i'm 6'4", it wasn't designed for me, but a hell of a lot of fun, i must say. we would like to know, what was the best present you ever got under the christmas tree? or perhaps you have given an awesome gift in the past. jeff tweeted in and said the best gift was my dog. do join the conversation here on "worldwide exchange." worldwide@cnbc.com or tweet us, @cnbcwex. >> what was your favorite?

>> a table tennis table one year. it was great. hours and hours of fun with competition with my brothers on that. we still do. we're very xes competitive. >> if you ever want to lose, i will be happy to cream you at wing pong. i am quite good. >> what was your favorite present? >> i got a bunny for christmas one year. >> a real one? >> a real one. it was the best thing ever. still to come, will the nonfarm payrolls number steal the numbers shine? plus, this. coming up on "worldwide exchange," need some christmas shopping ideas? we'll be talking toys after the break.

european stocks rebound as investors position for a solid nonfarm payroll data .expectations the ecb could be preparing for nonfarm payroll in january. industrial orders jumped sharply, but the bundes bank dampens hope of a sustained recovery for 2015. >> chinese stocks have their best week in years.

this as policymakers crack fiscal policy in the year ahead. we are live in warsaw where pollland's peeker says prolonged sanctions on russia are worth the pain for regional security. >> we are willing to put up with the sanctions because the issue of invaluebility of borders in europe is even more important. >> and we're just getting some data out of the uk. this is inflation expectations and for the two years ahead, they've fallen to 2.5% in november versus the 2.8% reading that we last got. that was back in august for the five years ahead. whereas the previous reading we had was 3.4% back in october. for the year ahead, the shorter term reading, the expectations has fallen from 2.5% to 2.8%.

not drastically lower and, of course, sort of as expected following comments we've had out of mark carney and other uk officials over the last few weeks. sterling/dollar is basically flat on the day. >> and we've been putting a lot of focus on the auto sector. mercedes group, november car sales up by 11%. reporting that from january to november, global sales were up 11% at 1.6 million and that november sales up 23% year of year. so some better than expected numbers from mercedes bends. of course, the auto sector in general has been performing well over the past couple of months, helping the german markets move higher. on that note, take a look at european markets because it was a volatile trade yesterday as

the markets tried to interpret what exactly mario draghi was trying to do around sovereign bond buying. right now, we're looking at stocks trading higher. german industrial orders coming in higher than expected. >> there were mixed signals on the health of the german economy so far today. industrial orderses jumped, competing expectations for a rise. in the last few hours, the german central bank halved its gdp forecast to 1%. >> the euro is holding off two-yee lows, but could give off yesterday's gains. the single currency bounced after mario draghi signaled

policy measures discussed qe, but stopped short of giving an exact time frame. >> the work of the ecb committees will continue. it was the focus of a very rich discussion. we discussed broadly all sorts of measures. we discussed various options of qe and more work is needed. and we will keep you ip formed as this work will proceed. >> central bank forces have said mario draghi could present a plan as early as january. how do you trade the euro going from here? let's bring in stenos. the market had a tough time discussing what mario draghi was trying to say yesterday, but what did you hear?

>> the markets are expecting too much. i think the bottom line from yesterday is that the ecb will introduce sovereign qe early next year. most likely in january. draghi mentioned the past two or three years and the inflation outlook. and they to wait for the disease -- before deciding. we expect this meeting was to prepare the ground for qe. the specifics would be part of the decision process. but this is happening. the market was disappointed perhaps because of too much. >> you're sounding pretty confident that we would get some form of qe in january. i thought mario draghi sounded

less committed. he didn't say he will hit it, he said he hopes to hit that target. that didn't sound like someone to me that got the free reign from germany to go into qe if he wants it. >> that's true. but also he emphasized that they will proceed by majority. so they don't need strong consensus to do so. i think at this point the key part was they expressed strong concerns about the duration in the outlook because of the low oil prices and emphasized the mandate is price stability. if he doesn't leave it early next year, it will be -- the markets. some say it will spur growth, others suggest it would weigh on inflation even more so. >> that was the big question going into the meeting.

how is that, given the starting point that inflation in the eurozone is so low? it could boston inflation very close to negative territory. the ecb seems willing to address this risk. the u.s. dollar rose above the 1.20 mark versus the yen ford first time in seven years yez. abe would win a land slide victory in snap elections. just about ten days ago, you and i were talking on "squawk box" saying in the short-term, the yen had been overshoulder even though it didn't in the long-term. >> we like particular selling. i think the short-term moves explained by two forces. one, the latest force that would

do well into the elections. this is abe-nomics. section, positioning is not as database as it was a year ago. this move would not be sustained particularly against other asian currencies. but in the short-term, but must see a connection. >> the big market mover today would be that jobs number. if it comes in weaker than expected, how will global currencies trade on the back of that? that could strengthen the yen. >> the market is very long dollar at this point. it is the most crowded trade. the market expectations above the first rate hike. wk say the market will reaction to a negative number versus the

numbers today. >> for 2015, what's your top trade? >> we're still bullish dollar. this is our favorite trade. >> and that is because of why, weakening growth from china? >> it will benefit from the slow chinese economy. because we expect high volatility moving forward, higher trades will be affected. >> that will be good for the aussie/dollar which moves on the back of commodity demand. >> yes. we're going to see more stimulus from the chinese authorities. we still believe china is in a sharp landing scenario, which will affect australia. >> thank you very much, we special it. the pend gone has confirmed u.s. commanders tried and failed to rescue an american hostage.

luke somers was threatened with execution in a video released thursday. >> as i sit here now -- >> it's one more chilling video. an american held hostage by islamic terrorists pleading for his life. >> my name is luke somers. i'm 33 years old, i was born in england, and i carry american citizenship. >> >> somers was captured in yennen and was the target of a daring u.s. military rescue mission just last week. u.s. officials say a pair of helicopters with two dozen navy sales landed. the american commando sprinted to a cave where it was thought he was being held. eight host aems were rescued, but luke somers wasn't there.

he had apparently been moved from that location only days before the receipt cue mission. a week later, al qaeda released this video. back home, outside seattle in a video message to al qaeda, his brother jordan and mother paula appealed for luke's release. >> he's a good person. >> please show mercy and give us the opportunity to see our luke again. he is all that we have. >> al qaeda in yemen is considered the most serious terrorist threat to the u.s. homeland. president obama is set to announce his nomination for the vacant secretary of defend post after the departure of chuck hagel who resigned following pressure from the white house last month.

sale at gap rose 18% as customers responded to the brand anticipated holiday items and promote. last month, the company cut its full year outlook lady of the struggling gap brand. in other news, though, american eagle outfitters reported its fifth straight drop in quarterly profits. the retailer's fourth quarter out l outlook says same-store sales fell 5% in the third quarter and it plans to close 150 stories over the next thee years. shares down just about 7% in after hours. take a look at how it's trading in frapg further. right now, down just about 13.4%. key retail space, very hard to

figure out for these retailers. how do you prepare inventory for the teen when their decision on what's cool, what's fashionable continues to change? it's tough. >> very tough, indeed. canada has signed off on burger king's $11 billion takeover of tim horton's. burger king has agreed to several conditions including listing on the stock exchange. tim horton's will be management as a separate brand. burger king and tim hortons, down 0.5%, burger king down the best part of 3%. we've seen a ride in m&a. the value of m&a hit $3.6 trillion. that's a 60% increase from the

same period last year. will this continue as washington try toes crack down on these the deals? >> they're so frar from getting any congressional agreement in terms of passing a law. i'm not surprise to see these deals go through. >> a lot of focus on m&a. the owner of london's songbird says the offer does not reflect the full value of the company. songbird shares initially opened higher on the reject, but have since moved lower. they're down about 3% right now. >> indeed. hadley, what's happening? >> it's a bit complicated. songbi songbird's canary has said no to a joined offer.

this is the second time the group tried to purchase the development. songbird rejected the deal last month 37 if the deal had been done, that would make ka nadry works the third highest asset deal in london. why is song bird holding out? the answer is simple. they don't think the offer reflect tess value of the company. adding to the tension is a complex ownership. songbird owns 70% and the qia partner holds a 22%. qia now olds 26.6% of songbird's shares. so a bit complicated there. i don't think we've heard the end of this. >> so what's the solution or the consensus here? who is going to own canary bird? >> i have a feeling they're come back with a better offer.

cnbc's phil hand takes a look at what other assets are getting snapped up. the pomp and majesty of london's historic neighborhood may seem as british as fish and chips. but what you may not know is according to research by real capital analytics, sovereign wealth funds spent nearly $9 billion on commercial real estate prompts in the last year alone. the biggest investor? qatar. the company has spend billions on property in lopped in the past few years. they've bought up the almost village and the american em ba city. kuwait was a distant second having spent $17.2 billion on

london's south bank. >> this is bond street. need one say more? >> even the nor weej yands are getting in on the action. what other cities are being bought up? coming in a distant second is manhattan and a very far third is los angeles. and we're getting flashes out of the german bundes bank. he says he's in a very uncomfortable position as a central bank. he says you cannot use the same formulas that were used in japan and elsewhere. a clear reference there to outright quantitative easing being used by the ecb to help very different types of risks across the eurozone. he says we have the monetary policy which is too expansive for germany.

so more rhetoric coming out of germany against outright quantitative easing in europe. >> the next steps to be decided in the first quarter by the ecb will come in the first quarter of next year and that the ecb is to discuss further concrete measures in q1. one of the big questions from yesterday's policy meeting and speech from mario draghi is when in fact sovereign bond buying will be implemented, will be unveiled. still a lot of questions around that. q1, that's when you could expect some type of measures. >> exactly. that's austria's central bank saying he agrees at the same time germany's weidman in the other direction. >> the political drama shows receiptry coming out from both

sides. it must condition for the next couple of months ago the ecb decides what the solution really is. tag could be the next big business to go high tech. it may unveil its its first smartwatch next year. it can run on an intel processor and can measure your steps, calories and rumors surfaced it was partnering with apple. we know apple is about to unveil a smart watch in 2015. now you have higher end watchmakerers saying we can create the same type of device.

>> a watch has a practical use, but it's also fashionable. it's a samt. exactly as you say, a time of people don't want to have something technical. >> as a man, which one would you like to wear, a tag watch or argue smart watch that has a tech savvy spin to it? >> at the moment, i still like a classic watch. i'm not sure if it would be a tag or not. coming up next, we're talking the top christmas toy and what's high on the households for this christmas season. >> we're getting in the driver's seat here on "worldwide exchange." this toy, more about it, that's coming up next. ño

so what is hot and what is not in the world of toys this holiday season? joining us now, peter jenkinson. thank you very much for joining us. >> thank you. >> thank you for lending us some of your toys. >> we're not allowed to keep them. but over the last 24 hours, you proved one of two things. either that i'm still a kid or

that toys aren't just for kids. >> absolutely. kids, the toy market is kind of catering for us. but it's very true. there's a lot of lappive play toys that are in that. you buy it for yourself, as well. >> that is certainly not one just for kids. it's expensive, but very hard to control. >> it's amazing. this is the flying gadget quad incorporator. it has absolutely taken off, if you'll excuse the pun. lots of news, stories and los angeles. this is pure fun. so we've got a gdp homing device inside. it has a camera inside, 360 dress.

you can send it from about mile away. >> how much does this go for? >> about a thousand pounds. >> tell us about the crazy cart because we were out there using it this morning. great lot of fun. >> it's hard to explain in words. it's like dodge ems, but without the dodge em things. you don't need the whole arena. jump in, have a spin. but it's definitely for us. >> a to a plus, but can fit in a 6'4" 29-year-old. >> it's not an el gat exist, but while you're in there, it's a lot of fun. >> do you know now with the use of technology, kids will opt for names and technology? >> i think we're kind of moving out of that. i think we're kind of moving away from that. it's like it's back to

collaborative and open fun air. >> i like that. >> this is flying gadgets momentum drift car. it's faster than pretty much any remoment car outcome. goes quite fast and you're both having fun. >> tell me how this works. i don't -- >> you have to turn it on. >> we've got ten seconds. >> okay, fine. >> there's lots of stuff going on. legos are always going to be popular. i love crazy car and flying stuff. it's really difficult, i just love toys. in merry christmas. >> thank you. >> we'll be back in two minutes.

and happy friday to everyone and welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. >> it is all about the jobs report. u.s. futures, in fact, trading higher as investors put their eyes on that important jobs report due later today. >> this is not the time to act rationally. follow speculation that it could trigger full blown quantitative easing in january. the home of the whooper is one step closer to adding

muffins to its menu as canada gives the green light to its takeover of tim horton's. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. and we're just getting the eurozone second estimate for gdp has come in with no changing. >> we've got the year on year number for q3 coming in at 0.8% and the quarter on quarter number coming in at 0.2%. >> acceleration in consumer spending was partly offset by a decline in investment spending and the contribution from trade. of course, that's been a big concern for traders over the

past couple of months. we're looking at the euro/dollar, pretty much flat. no big movement on the back of that eurozone gdp second estimate. let's take a look at u.s. futures ahead of the jobs report. that is what market participants are watching. the dow jones industrial trading up about 25 points in premarket trade. the s&p 500 and the nasdaq indicating a higher open. the s&p 500 and the dow hit new ip tra day all-time highs yesterday, but failed to close at a record. crude oil prices ended at the lows of the session. we've been talking about how we've been seeing big moefs in global markets. eats fought just about europe, chinese markets are hitting multi year highs. the accept sex has been hitting a new record high earlier this week on the prospects of modi

and what he can do to help improve india's growth rate. it's the dralgy rally. the ftse 100 in the green, xetra dax up about 1.3 points. the xetra dax broke 10,000 yesterday, hit a record high and then it fell lower as traders were concerned maybe draghi wouldn't unveil quantitative easing in 2015. right now, we're looking at front and isly. a 2% gain for italy right now. today, markets seem to be taking it with stride and saying he will deliver the goods. >> equity markets bounding back today. similar things happened in the bond markets.

today, the thought is we might well, indeed, get a bit more of that. italian yield went up to 2.06%. in the uk, bank on 2%. germany, 0.772%. we were getting closer to 2.3% earlier in the week, but 10-year is now 2.26% ahead of the jobs number. let's look at forex. the yen, 5% gains -- sorry, 0.5% of gains for the u.s. dollar. it was only the end of october we saw it push through 110. troid moves in the yen over the last month. the pound is flat today, 1 of 568. and the ruble, it's strengthening a couple of

percent. yesterday it started strong and finished weak down 1.5% after putin failed to reassure investors. 1.5% to 2% moves are becoming standard for the ruble. the dollar has been hitting multi year highs. will it continue? a lot of that depends on the jobs report. economists expecting another solid month of hiring. forecasts call for an increase of 230,000 in nonfarm payrolls, following 214,000 in october. that would mark the 10th straight month of job growth that has topped 200,000. the longest stretch, by the way, since 1994. unemployment is expected to hold to a low, but wage gains are tepid following the fed pausing to raise rates until well into next year. thanks so much for joining us

this morning. it's a big day, the head of the jobs number. strengthening data has propelled markets higher. if the jobs number is weaker than expected, do you think that could derail this market rally? >> first of all, we don't expect the jobs numbers to come in weaker than expected. i don't think so. look, we've had the bulk of the year-end rally occur in middle november off of that big sell-off in early october. and we expect at this point fairley choppy trading trending upward towards year end. thing this market is very much intact and i think the consumer will be the big story in 2015. >> you say this is a middle aged market and we're only halfway

through the rally. that is a fairley bullish outlook. we haven't got five more years of this type of rally, have we? >> well, we very well may have three, four, five years to go in this rally. you know, one of the positives of having a slow growth economy that is characterized this expansion so far, the so-called 2% expansion is there hasn't been enough growth to create any excesses. and so bull markets die not because of geopolitical events, not because of ex ojs news events, they almost always die in aemgz of the next recessioof. as people say, show us the jobs, show us wage growth. do you think we'll get that this

month? >> well, wage growth is slowly starting to improve. it's clearly been a lagging component of this expansion so far. but we expect wages in the second half of this expansion to pick up and the consumer now is largely deleveraged. job growth is continuing to have momentum and we finally have energy that is a huge tailwind for the consumer. so look for the consumer to be much more active and look for 3% growth in 2015. >> hapg, i know you write the household deleveraging in the u.s. is almost over. but surely in the grand scheme of things, deleveraging has started. this is a mountain of debt to pay off in the u.s.

>> well, public debt, you're absolutely right. but in terms of the financial sector, that has largely played through the deleveraging. you're right, you know, we have some 17 plus trillion dollars of debt. but the more important thing is debt relative to gdp. if we can get the economy growing, that will solve a lot of problems with regard to public debt. let's gist you a rundown of what to watch this trading day. in addition to november jobs report, we also get october trade deficit, factory orders and consumer trade deficit today. we will be looking for any comments from her on whether the rate hike will come. mid 2015, late 2015, that's the

question. >> slightly. let's move on and look at today's top stories. gas, to a blonk butter month to its old navy brand. sales rose 18%. last month, the company cut its full year outlook ahead of the brand. shares are up so far in trade today. and a very different story for american eagle. they're reporting its fifth straight drop in quarterly profits. american eeging says it plans to close 150 stores over the next three years.

sars in frankfurt are down just about 14%. still to come, president obama is expected to announce his pick in a few hours time. details after this short break.

welcome back. 2 markets await u.s. nonfarm payroll today. canada gives its seal of approval for burger keng's $11 billion takeover of tim horton's. creating the world's third largest fast food group. president obama is set to announce his nom name for the vacant secretary of defense post after the departure of chuck hagel who resigned next month. the question is who is next? hadley joins us on set. there is talk about ashton carter. he's someone that we know well. >> absolutely. essentially, just a few hours from now, we'll know the name of the next nominee.

basically what we're looking for from the white house going forward is continuity. people want some sort of strategy. continuity would be great. hopefully this next time we won't have it so rough. >> president obama's foreign policy has been widely criticized. do you think this nominee, ash ton carter, could strengthen his policy going forward?

perhaps. he's had a great deal of experience. multiple billions of dollars on projects, but most never seem to come to fruition. >> once the nomination is made, how much further does it have to go? >> he has to go before the senate and answer some tough questions. eye hear from people in washington who tell me there is strong bipartisan support already. this is a good thing. president obama needs by partisan support moving forward. hadley, thank you very much. >> are you stressed about your finances? have no fear, there's an appear for that. we'll speak to the founder here in the uk catching the attention of investors.

welcome back. let's take a look at u.s. futures. right now, stocks set to open higher ahead of that jobs report. that, of course, will be the important data people to be guy guested. right now, the dow jones higher by 22 points.

>>. >> they are back up two-thirds of that amount today. the stoxx 600 is up 1.1%. after trade, we had news we might get more quantitative easing. germany bounced back strongly, up 1.3% despite the bundence bank getting growth forecast for next year. >> the draghi rally continues. we see a lot of movement "n" u.s. dollars. many investors have been taking the soous is a bad investment in a bad neighborhood. right now, the dollar higher against the yen at 12040 against

the u.s. dollar. it did strengthen slightly yesterday on whether sovereign bond buying will happen in early january. this friday, it's been suggested 20% of uk citizens are losing streets because of their finances. thank you so far for joining us. >>. >> 80s pressure. >> your financial being app. why does your company differ from other platforms out there that offer similar services? >> there are a few factors. we're not an alternative to credit. what we're trying to do is say that if people are stressing, about to go out and take out a pay date on an unauthorized pay draft, we will rather nurture

financials. we're empowering employ ayes to become more financially resilient. budget. we bring the employers into the mix. so it's a b to b play. employers have a vested interest. >> you offer this service via the employer as opposed to direct to consumers? >> yes. right now, we're leveraging a pre-existing distribution channel to make sure we can target employees that may face financial distress. it's the best way to get tout to a mass consumer as quickly as possible. decreased absenteeist due to people being distressed.

we're telling employees, you can be a more responsibility employer which leads to you becoming a more profitable employer, as well. >> broadly speaking, europe is going through a number of economic challenges. are you confident employers will be willing to pay for this app? >> most definitely. employers we've been talking to, vodaphone, telefonica. we see employers realize there's a need for a financial well being platform and solution. the current solutions out there are along the lines of fsn financial awareness. it's like a diet, it's exciting for the first couple of weeks that you try it out, but the excitement drops off. and it doesn't really stick. we're telling employees that we have something sustaining.

we have long-term solutions that can stick. it doesn't the job and it's effective. does this lead to higher productivity at work? >> most definitely. decreased absences, increased productivity, morale increase overall and lower turnovers as well as lower costs taechd to turnovers. employees can look at the advantages of becoming a more attractive employer. on the face of it, i think it's a great idea and i can see how it would be helpful to help you save. i think if i used it daily on the short-term, it would be quite clunky, do people really

use it over the short-term? >> this is designed to work over monthly cycles. it's tied to your pay cycle. if people set up the apps and it hepz manage their bills, it helps let longer term savings goals, that's idea for us. it's not meant to add complexity to their financial sliefs. >> i guess the royal family has shown interest in your app. the duke of yord putting money forward. >> the duke of yord has been pushing forward purely activities and supporting entrepreneurs within the uk and beyond. we got to push at st. james palace among some of the best teams, all the accelerators were in the uk and beyond. we're able to tap into his

rolodex of influence, mentors. >> i'm sure he has some good people in his rolodex. >> absolutely. >> thanks so much for your time. let's talk about toys. uk households will spend $22 billion on gifts this year. wilfred trying out his favorite toy this season. >> this is aimed at age 8 plus. >> illustrate was so far fun. >> and on that note, we've been asking you, what was the best prevent you ever got under the christmas tree?

>> john tweeted in saying it was his dog. we did see a picture of that earlier. it was a lovely looking dog, as well. >> great looking dog, yeah. >> join the conversation here on "worldwide exchange." worldwide@cnbc.com or @cnbcwex via twitter. seema, what was the best toy you ever got? >> you know, when i was a child, i loved board game, monopoly, connect 4, twitter, those are my favorites. >> activitwister was never one . >> you have long arms and legs, you would probably do well in that game. >> probably, but not actually. >> coming up, u.s. futures are trading higher as economists expect another solid month of hiring when the jobs report coming out later today. we'll be back.

welcome to "worldwide exchange." thanks for joining us. i'm seema. >> and i'm wilfred. these are the headlines from around the world. >> the s&p 500 shaping up for its best seven-week period from 1998 with u.s. futures indicating a higher open ahead of the all-important jobs number. wilfred, you almost made me laugh. >> that wasn't my fault. this is not the time to act rationally. he says the central bank needs to wait to decide its next step

following speculation. canada gives the green like to burger king's takeover. >> ashton carter is set to fill its role as nominee for secretary of defense. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> hope you're all having a great friday morning. a lot of it was predicated on what masho draghi said or didn't say. it sent stocks initially lower, but then high er.

the ftse 100 up 35 points. the xetra dax and german mountains up 1.1%. better than expected data out of germany around industrial orders coming in better than expected. that's why we're seeing german markets outperform today. what does it mean for unemployment? they did fail to close at record energy. as we were telling you, it's really all about jobs. today, unemployment rate is spec'd to stay at 5.6%, the

lowest since july of 2008. traders i speak to say it comes down to improvement and wage growth. that's what traders want to see and what the market will be watching. wilfred, over to you. >> seema, thank you very much. so what are we going to get for that number? ? the forecast is down 230,000. last time, it was 214,000. my guess, seema, i think we're going to come in lower than expected, but still a positive print above 200,000. that's the important thing on this. it's the trend that we've seen in the second half of 2014. and the trend has been improving employment situation. >> modest acceleration in job growth. and there is question on whether this recovery has been sustainable. we've seen u.s. markets move higher. one of the focuses for the fed is not just job growth, but inflation. we need inflation to pick up above its target of 2%.

>> absolutely. and so far, qe is really good news in things like the job sprint leads to good news in the markets in the u.s. yesterday, we didn't have mario draghi saying as clearly that he would expand the balance sheet. overnight, with heed these rumors we might see q he. >> monetary divergence has been a big trend, a big theme. and income year it will surely continue as we expect mario draghi to include structural reforms. definitely a divergence in terms of economic data. the focus now on ecb for them to revive europe.

>> absolutely. the latest report from the international labor organization, the ilo's global wage report shows average real pay in develops economies rose to 0.2% last year. workers earned less in 2013 than in 2007. >> let's take a look at today's other top stories. the hackers who hit sony entertainment last year, social security numbers, youtube, facebook, twitter logins and fedex accounts have been posted on file sharing sites on the web. pernl data of some hollywood celebs have also been posted.

sony up 1.2% earlier in japanese trade. bnp para bass will be formally sentenced for violating trade sanctions by processing transactions for countries such as iran, cuba and sudan. bnp will pay nearly $9 billion in fines. shares right now, up about 2.2% in today's trade. coming up, do you want fries with that merger? berger king's takeover of tim horton's is one step closer to reality. we'll bring you all the details, after the break.

now some important numbers coming from three different retailers. let's break it down for you. teen retailer american eagle missing expectations as it continues to deal with weak mall traffic. the stock down just about 3.8% in yesterday's trade. but on the flip side, gap

posting better than expected 6.4% rise in same-store sales. l brands, great set of comps, up about 8% thanks to its victoria's secret brand, wilfred, one i'm sure you're a fan of. >> absolutely. seema had two tickets to the fashion show. did she take me with her? >> no, she didn't. >> listen, it's a long story. >> but you didn't take me with you, still a sour point. moving on, president obama is set to announce his nom name for his vacant secretary of defense post after the departure of chuck hagel following his resign last month. u.s. demanders tried and failed to rescue an american hostage last month. >> as i said right now -- >> it's one more chilling video.

an american heft hostage please mreetding for his life. >> my name is luke summers. i'm 33 years old. i was born in england but carry american citizenship and lifd in america most of my life. >> he was the target of a daring u.s. military rescue mission just last week. u.s. officials say in the predawn darkness, a pair of helicopters with two dozen n s s.e.a.l.s landed in yemen, sprinted to a couple of miles to a cave where it was thought he was being held. the americans took the al qaeda captors by surprise, killed all seven and rescued eight hostages. but luke somers wasn't there. he had apparently been moved from that location only days before the rescue mission. a week later, al qaeda released this hostage video.

back home outside seattle, his brother and mother appealed for luke's release. >> he's a good person and he's been trying to do good things for the population. >> please give us the opportunity to see our leak again. he is all that we have. >> al qaeda and yemen is already considered the most serious terrorist threat to the u.s. homeland. that's certainly the case tonight for at least one american. now, moving on, a womaner of a deal. joining us with more on the story, landon dowdy from cnbc hq. good morning. >> good morning. happy friday. the canadian government has approved an $11 million takeover of tim horton's. the combined company would have about $23 billion in annual

sales in more than 18,000 locations. burger king agreed to several conditions. the company will list shares on the toronto stock exchange. there will be no cobranding at any north american stores. the deal sparked fears when it was announced in august. some canadian consumers were upset with what they say as a beloved national brand falling into foreign hands. berger king's executive said the transaction wasn't canada has rejected several foreign takeovers in recent years.

it turned down bhp's takeover. berkshire hathaway provided $3 billion for preferred shares that carry a 9% coupon. berkshire previously paired up with 3g capital to buy heinz. >> landon, thank you very much for that. now, starbucks will add wine and peer to its evening menu. it is set to roll out in cafes across the united states. >> i wonder if this will steal market share or traffic from some of the bars or publics out there. if this were to happen here in london, that wouldn't be the case given the strong public cut

temperature here. >> are you saying we're alcoholics? >> no. some of the bars i went to were 100 years old. it was amazing. >> happy hour smp. >> it was 5:00 p.m. i'm allowed to do that. >> maybe once a week, but otherwise, we could be in trouble, seema. >> oh, gosh. >> no, i like this idea of starbucks selling alcohol. the big question is whether it would change the culture in the store. if you have people getting drunk, that's going to change quickly. >> it could. if you have a bunch of noisy guys like you in the bar, making it hard to have a conversation, maybe you'll take your coffee somewhere else. >> it's a fair point. >> are you calling yourself roudy? >> that depends on what day of the week it is. >> i have yet to see you in action. if at first you don't succeed, try and try again. nasa and lockheed martin will

try again to launch the orion spacecraft. jane wells is on the ground, kennedy space center in florida. jane, we were looking forward to the launch yet. will it happen today? >> they're hoping. there is a beautiful shot of the rocket and the he owe orion behind me. they were able to fuel the rockets this morning. if you see that live picture, there is a flame off to the left. that is some of the liquid hydrogen burning off. that is not as close to the rocket as it looks. the big question this morning is the weather. currently weather conditions are good. they thought there was a 40% chance that with the

precipitation and the wind we would be going for the launch. the other thing we will have to see is if they have solved the problem with the valves in the liquid hydrogen tanks. the valves got stuck yesterday. they think maybe one of the reasons is the rocket was sitting out there for so long and that liquid hydrogen is so cold that after they had delay after delay, the valves got sluggish. apparently they're confident enough that they can get this off the ground today. they've only represent today launchpad here through tomorrow and they don't have enough fuel spas to refuel tomorrow morning. so if it doesn't happen today, they will try to see if they can stay here through sunday, but after sunday, they won't have a chance because the support crew

here has to get to the west coast of the united states for another launch next week. tag could be the next big brand to go high tech. the watchmaker may unveil its first smart watch next month. it can measure your steps, calories burned and how you sleep. in september, the company said it was working with a smartwatch after rumors it was partnering with apple. >> clearly tag is saying we're not going to let apple take our business. we're going to step up and offer a high end smart watch. i just wonder if sophisticated men like yourself will choose

that option. >> a samsung smartwatch hasn't been out for a while. apple comes out next year. it will be interesting to see if they can steal some watch market share. i still think watch is more of a luxury. >> can your watch you're wearing right now tell you how many steps you've taken or how many calories you've consumed? >> i don't care about that. i have a phone for that. that's the beauty of these wrist bands. they give you smfgz you don't typically have access to. >> i agree. i would wear an extra wrist band if it was small on top of the watch, not literally on top of it, somewhere higher up. >> now you're saying men would want jewelry. >> it needs to be small and separate from the watch. and we basically degree. we think watches stay as luxury

items. >> i don't agree, but that's okay. >> we'll continue this discussion in the break. and before we go to break, let's continue with the headlines. the markets and nonfarm payrolls data today with economists expecting another solid month of hiring. canada gives approval for burger king's takeover of tim horton's b, creating the world's third largest fast food group. we'll be back in a couple of minutes. stamps.com is the best. i don't have to leave my desk and get up and go to the post office anymore.

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welcome back opinion european markets in the green

today bouncing back from declines of yesterday. why? mario draghi initially wasn't supportive enough of the xangz of the balance sheet. after the close, we had some leaks and rumors that they were considering quantitative easing. the ftse 100 is up 0.5%. >> u.s. futures are up ahead of that highly anticipated jobs report. unmroit is expected to be the lowest since july 2008. once again, energy stocks weighing on the broader understaindices.

cleveland fed president loretta mester is speaking about monetary policy before the opening bell. >> joining us now, adam from bull's eye options. good to have you with us. forecast for november, 230,000. does it really matter now as we get to the end of the year what an individual month it is? the absence is 2014 much stronger employment data. >> yeah, i don't think it's really mattered to the market for a long time here. the motorcycles moved forward regardless. obviously, it impacts a lot of people, but the market keeps trudging along. >> how much are you putting a focus on what draghi said

yesterday given that we are seeing the economy recovering. >> and it was interesting to see the market price action. it's all about market price action for me. there are let beds to the short side. let's see if this is for real because it is so heavily weighted to the shortside on the euro currency. i want to see a resounding bounce to shake is that movement up. >> stocks continue to move higher as we approach the end of the year. one trader i spoke to last night said this market is getting incredibly expensive.the. >> not in pe terms it's not at

all. it's nowhere near the historical highs. it's a reflection of earnings. there is not much until january to feed the markets. the market was 5% higher in the dow, 10% higher in the s&p 500 and 15% higher in the nasdaq. that's higher on the year. we've come a long way, but technically speaking, we still have another 2.5% in the near term and the nasdaq. and the market momentum is so strong. i think there are some opportunities. something like facebook has been trading at 70 or 80. and it's down 7.5% from its highs. >> thank you very much for joining us. >> thank you. >> and that's all we've got time

for this week on "worldwide exchange." have a very, very nice weekend. i'm wilfred frost. >> i'm seema mody. thank you very much for watching. "squawk box" is next.

good morning. it's jobs friday. the bulls are betting that will be just enough to push the dow over 18,000. uber is worth how much? the ride sharing start up raising another $1 billion was now took the company's valuation at an eye-popping $41 billion. and starbucks goes up the chain. the term grande. it is opening a fancy new coffee

em porous today, even fancier and he'ding beer and wine to its offerings. "squawk box" begins right now. good morning, everybody. welcome to is b southbound here on cnbc. happy friday. i'm becky quick along with andrew ross sorkin and joe kernen. this morning, we are looking at spacecraft orion. we were talking about the same story at this time yesterday. after multiple attempts, that launch was scrubbed due to serious issues. but first, three other stories on our radar, the november employment report is due out at 8:00 a.m. eastern. the unemployment rate is see