a very warm welcome to worldwide exchange. i'm wilfred frost. >> these are your headlines around the world. >> a staggering slide weighs on asian markets. chinese equities make a u-turn amid reports of more government intervention. >> exports and imports hitting a high. >> shares spike in london after the british insurer is bought by

japanese rival for 5.3 billion. >> and shares in commerce bank and deutsche bank rally. coming up, we speak to the analyst behind the call. right another volatile session in china as august trade data reinforced concerns over the slow down in the world's second largest economy. imports sharply missed expectations falling 14% while exports fell for the second month in a row. we did have a decline initially in chinese trade but it rallied after talk of further intervention from the government. we're looking at about 3% of gains by the close. let's get out to eunice live in beijing with all the details.

>> thanks so much wilfred t. focus, like you said was on the import figure. a drop by 14% for the month of august and this was a lot worse than the previous month and worse than what people expected. a lot of that is because of the falling commodity prices and weak domestic demand. the import of a lot of construction materials or different commodities hike iron or anything like that has been not as strong as people had been hoping for and that of course is because of the lackluster building going on here. the other component is the reexport of a lot of materials and if you look at the export figure there's a little recovery there in that it was falling by less than in the month before by 5.5% as opposed to 8% in july

but it still wasn't an encouraging number. we did see some strength of exports going to the united states. over to europe as well and to japan but it wasn't enough to lift spirits. some analysts were saying the august data could be skewed or one off because of the port explosions which forced some factories to shutdown production lines and in the past couple of weeks there were thousands of companies that shutdown factories in order to make sure that the military parade last week was going to have perfectly blue skies. so there is some argument to be made that the august figures are a little bit skewed or a one off but at the same time there is concern going forward about the weakness in the demand here and a hot of discussion now as to whether or not the authorities are going to have to cut interest rates sooner rather than later or see much more

investment spending as well to pick up some of that demand. especially in construction materials. wilfred. >> thank you for that. >> meanwhile the ripple effects from china's economic woes felt across markets today. this despite revised gdp data showing japan's economy shrank less than previously thought. >> this wasn't as bad as previously expected but markets didn't seem impressed. is that right? >> just what eunice was talking about and the disappointing trade figures out of china, they have had a deeper effect on the japanese equity markets rather than the mainland china he equities and hong kong. the trade linkages are strong so the market is responding to the weakness in the china data. in terms of the mainland china

data we saw characteristic wild swings. we were down for a large part of the morning session and then came roaring back in the afternoon session. it is related to the fact that the chinese authorities are trying to encourage longer term capital into the market in the terms of pension funds, et cetera, in the meantime trying to shake out the hot money inflows. the speculative end of the market as well. i think that is why we saw that strong gain in the later session in the afternoon session and then rallied toward the end. up by 3%. nikkei 225 on the defensive. let me just add that we have turned negative year to date for japanese equities with regard to the nikkei as well. i think the emphasis is going to remain on the china data for the duration of the week. thursday will be critical. we get the inflation numbers and ppi and cpi.

so if these figures continue to be tamed that takes the inflation pressure off the authorities and off the pboc and that does give them some room to maneuver. back to you. >> thank you for that. we'll discuss that in london. joining us is the economist and strategist. thank you for joining us. let's kick off with the china data this morning. imports weak and exports falling for a second month in a row. big cause for concern or not really? >> i don't think so. the trade within emerging markets is going to be driving of global trade. you've seen a real slump in discretionary spending from russia, indonesia, brazil and if

you look at overall trade there's no negative. so the growth in the u.s., japan, europe. that's reflecting the chinese numbers. you always have the pricing effect commodities and volume commodity imports are weak. that's the fact that they're weak at the moment. it's about 10% year on year. until the housing recoveries. until housing starts to recover you're not going to see the import numbers improving. >> but doesn't really matter does it? what's causing the weakness in chinese trade surely it's still a problem for china and it's another data point that's uninspiring at the moment. >> it's uninspiring but the key is can it fall 15 or 20% and can hedge funds create a 1992 moment and force a devaluations because reserves aren't sufficient to continue intervening aggressively. that's the relationship of the markets now. we don't think so.

we're looking at 6.8 and next year a smooth glide path is what they'll try to imagine and stability is the watch word. >> what would it be trading at if it was free floating? >> our view has always been on a free float it would be 15 or 20%. >> and a lot of expectation that the pboc could come forward with a forward triple r cut. do you expect that as well and will it have the spended effect. >> absolutely. to get to that 6.8 by the end of next year you're looking at a further decline of 100 billion in reserves. that's not to ease policy. that's just to offset the liquidity squeeze coming through from what's happening in reserves. so mechanically they have to continue cutting. >> shifting focus to japan. we did have the gdp data out today.

i'm wondering on the positive side, japanese economy really should be seeing benefit from the lower oil prices of course but have we seen that yet or do you think the effects will take a little bit to trickle through to the economy there. >> apart from china there's about 70% of total exports. tourism has been a big boost to domestic retail. i don't think the current move in the r&b is going to make a huge difference to that. if you have the situation that would impact the demand within the retail sector in japan. we're very bullish on japanese equities. there's a bit of a divergence. you could break out to new highs by q-1 next year. what happened is both india and japan was very big overweight in risk off funds.

they have been used to liquidate positions. fundamentally it looks good. >> helping the corporate sector and not so much the consumers. i suppose an indication of that this morning. them trading sharply higher after the firm agreed to be bought by japan. firms look to expand geographically as well as diversify their portfolios. this kind of thing is indicative of what abenomics is achieving. do you think we'll see more of this m&a? >> absolutely. given the democratic profile of japan they have to buy growth overseas. but the problem is you reach an

impasse. the quid pro quo is you'll see the equity boosted but you have to spend on capex and wages. this summer both have disappointed. so the recent impasse, the question is does it apply investment trust but have you reached a point of returns and is there some sort of fiscal move, et cetera? >> is it a short-term call? it's one more leg of liquidity. >> if you went back three or four years and asked anybody who appeared in this show would the return in equity in japan challenge the return in equity in the emerging markets, i don't think anybody would say that was possible. focussing on returns and focussing on shareholder returns and that's a major culture shift. once they get going they can run

for years and that is very very supportive. >> great stuff. pleasure having you on the show. economist and strategist at intex can economics. >> meanwhile the slow down in china seemingly is not impacting germany. exports climbed 2.4% while imports were up 2.2%. both were far ahead of expectatio expectations. that widens the trade surplus to 22.8 billion euros. the highest since 1991. earlier this morning cnbc spoke to steven king and he gave his knew. >> the broader story is rather discourage chg is that germany's trade surface keeps getting bigger and bigger and bigger. it's a giant sponge taking it out of the rest of the world.

and elsewhere we need the service by simply boosting domestic demand and supporting the rest of europe and frankly the rest of the world. but the germans would rather see themselves with a bigger trade surface. >> let's have a look at what the markets are doing. despite a lot of weakness in asia and particularly japan we're strong in europe. quite significantly so. we're up 1.5%. it follows about .5% of gains yesterday. all in all that nearly eradicated the losses we saw last week. we had about 2 or 2.5% of declines last week. it's really focused in on the german market. we had some descent trade data out of germany earlier which of course contrasted the weaker trade data out of asia this morning but that's across the markets and we're seeing significant gains here in europe today. don't forget of course first day of u.s. trade after the labor

day holiday yesterday and all three of the major u.s. indices were down over 3%. will they bounce back today? we'll see. let's look at bond rates. last week on friday that nfp number did see equity sell off. we're still around 2.15%. clearly people still not sure if we're going to get rate lift off in september or not. let's look at forex. quite surprising how strong the euro and the yen have been in a risk off period but the bigger theme over the last couple of weeks has been g-3 and g-10 to a lesser extent. g-3 strength against emerging market currencies as a whole. so yes against the dollar they have been strong and resilient but that's the stronger term. weak emerging market currencies. sterling 153. we've had a bit of weakness over the last couple of days. bouncing back today by .5%. it was at 157 a couple of weeks

ago. interesting move today as we've seen wti weak yet brent up but quite a sharp sell off. we're at 44.5 on wti. >> plenty hr here to come on worldwide exchange and uber is taking a spin around beijing. find out why the raid sharing service is staying bullish on china. it's cheap but is it cheerful? rumors of a $50 tablet. cnbc has a interview with the oracle of omaha. that's live. ♪ ♪ (under loud music) this is the place. ♪ ♪ sustainable tea tree eir boil and kale...ade from you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing,

you see what's coming next. you see opportunity. that's what a type e* does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere.

welcome back. shares trading higher after a positive note from jp more dpga. they include deutche bank in the top spipicks saying new managem made a strong impression. we'll speak to one of them on the banking sector coming up in 15 minutes. do stay tuned and we'll see why these shares reacted so

positively. right ashmore shares are near the top of the stoxx 600 despite seeing assets under managements fall at the end of june from $75 billion a year ago. ashmore shares up 6.3%. alstom is up 1% after a report that eu regulators will approve the french company's sell today. let's get out to stefen in paris. >> the deal was announced. the european commission is about to approve the largest acquisition ever for general electric. they have already informed the company that the decision would come today ahead of the deadline set at the end of the week. regulators will meet and they're expected to make the announcement early in the afternoon at 2:00 central european time. however the green light will

come with conditions and it's going to include part of the services business of alstom. something that ge didn't want to negotiate in the beginning because it's an important and recurrent source of revenues but to get the approval ge was eventually forced to make some concessions but in july general electric says it submitted the remedies to address it's concerns but never say publicly precisely what are these conditions in the meantime they reduce the deal in order to take into account these. the commission was concerned that the deal would reduce the competition and the gas to buy market in europe which could lead to higher prices and less innovation in the sector so we're now a few hours away from the official announcement. shares are trading higher in

paris and barclays raises recommendation ahead of this that we are expecting today. >> thank you stefen. >> now around 5,000 farmers clashed with police in brussels on monday as they protested the fall in food and milk prices. they were meeting to discuss a 500 million euro aid as they have been hit by weakening demand for sanctions. they use tear gas to disperse the protestors that threw stones and fire crackers. >> well, this is becoming an increasingly big problem across europe. the dairy farmers in the uk pushing for them to make it obvious when the products come from the u.k. so it's not just brussels. we also saw the protests in paris with the farmers moving their tractors into the capitals there. i have a feeling we'll have more of this to come. >> also quite surprising to see

the extend of this. serious uprisings with this recently but there's a lot of discontent across europe in various sectors and unions are exercising their power. >> that's for sure. >> let's move on, apple is reportedly ramping up hiring of artificial intelligence experts. reuters say the company is recruiting from ph.d. programs and posting dozens of job listings. the goal is to challenge google in an area where it's been for yea years. >> amazon is planning to sell a new tablet for just, get this, $50 in time for the holiday season. it comes with a mono speaker and would cost less than the cheapest current tablet. that's the 6 inch fire which retails for $99.

let's see how stock is trading on this news. up about .8 in germany and 18% over the three month period. we have a raise to the bottom in term of pricing as these tech companies try to hang on to their market share and in emerging markets amazon is trying to fend off challenge there is and there is a lot of competition here but how do you feel as a consumer buying these gadgets is cheaper better? >> in a tech gadget. it's in a luxury item where you start to think is it not as high quality. but that's the key questions for the margins of the likes of apple. samsung struggled in the area because they're more up against the competition but $50 is

incredibly cheap and will attract plenty of consumers. >> there's an argument to be made because the technology changes so frequently what's the point of buying a $500 device if you're going to buy a new one next year. >> i think there's an issue of saturation now as well. a smartphone or an ipad they're not new and everyone has got them now so having cheaper options is sort of understandable five or six years into the cycle but at this stage it's not that surprising. >> do you think that tech products can ever be too cheap or are budget gadgets the way forward. get in touch with us worldwide@cnbc.com or via twitter @cnbcwex. >> uber ceo is speaking in

beijing later today. the ride sharing service will expand to 100 more chinese cities over the previous year. that's double the goal he set three months ago. it currently operates in 20 cities. his speech comes a day after uber china raised 1.2 billion in on going fund-raising. reports say he took part in the round. the rival reportedly raised $3 billion. interesting to see him out there, expanding very fast and it's an amazing story. >> it is and they have said very loud and clear that we want to be the leader in china but they're trailing to competitors there and having some difficulty in the indian area. some analysts questioned their aggressive expansion into china against such fierce competition and you never know when the regulatory tide will turn against you so there's an

argument to be made for focussing more on the u.s. but the ceo stated he wants to be the dominant player in quite a quickly growing market in china. >> absolutely and that first move average they lack out there but they believe they can make it workout there. >> right, still to come here on worldwide exchange, banking stocks moving on the back of an indepth analysis report from jp morgan. stay tuned as we hear from the author of that report. >> plus it's the 20th anniversary of squawk box and the celebration starts today. cooperman, gabelli and rieder kick things off with a special conversation about investing. watch squawk box for that. >> also coming up, warren buffet, he's in new york to sit down to lunch with the $2.3 million winning bidder of the annual ebay auction. before he puts in his orders

he'll speak to becky quick to discuss the markets wild moves and the outlook for the economy. that's today, squawk alley, 11:30 a.m. eastern time.

weak trade data amid reports of more government intervention. >> but germany so far defying the china slow down with exports and imports hitting a record high. the dax outperformers amid a broader rally in europe. >> the british insurers bought by the japanese rival for $5.3 billion. >> and deutsche bank in the green after they're named as top picks. we speak to the analyst behind that call.

>> we are seeing strength across the board. particularly in germany up nearly 2% after strong trade data out of germany as well. we did see slight gains yesterday with a lighter session with the u.s. markets on holiday in the neighborhood of 0.5% so investors will be getting confidence after the rapid losses we saw last week. u.s. markets were on holiday yesterday. we saw gains for all the major indices. month to date, quarter to date and year to date. we're expecting a bounce back today. s&p up 34 points. dow expected to open up 277 and the nasdaq expected to open up 81 points. let's have a quick look at oil prices and in particular the fact that wti is soft today but brent is strong.

that comes off the back of the opposite being the case yesterday. brent was a little softer off the back of some report of more supply and that's unwinding today. europe's biggest bank will find out how much capital they'll be required to hold after they reached a decision on cop mon equity ratios. policy makers will communicate the news to banks shortly. reports suggest they'll have to hold a ratio between 9 and 12%. >> we are getting flashes out from the ecb delivering their opinion on the german draft banking resolution and legislation needs to be in line with objectives of the banking union. they have also said that the legislation that leads to fragmentation of the banking rule rules are trying to avoid any fragmentation and really work to level the playing field.

this comes as supports suggest that europe's biggest lenders could suffer a 26 billion euro capital short fall by the end of 2015. this is according to the latest analysis of 35 european banks which identifies six main lenders where the missing cash is concentrated. >> thank you for joining us. >> thank you for having me. >> one of your calls moving sharply higher but the overall theme is that you don't expect this to level the playing field and it could hurt competition among the banking sector. >> it will hurt competition but it's also a way to create a playing level at least in terms of capital in order to calculate level. it is more comparable to the u.s. >> walk us through the banks on the down side that might need to

even raise capital or scrub the dividend. which banks are more concerned about? >> the french bank starting point on capital is slow and as a result they look weak in our analysis and there is some need to either shrink the balance sheet significantly or to cut the dividend and in particular we are below expectation on that potential point. the capital level starting point is very low and due to the new potential regulation that will be impacted and they might have to raise equity. >> would you prefer exposure to retail banks or investment banking exposure? >> we prefer investment banks over credit related banks. we don't want to have a lot of

international credit risk or a lot of commodity related credit risk. so investment baichks are preferred. >> we struggle on the price levels today however we see a domestic player at 4.5 times book value which we like a lot. >> and you like lloyds bank. >> yes, it's a domestic retail bank but on top of that it offers a lot of yield and we like high yield in domestic banks such as lloyds. dividend yield is something you're attracted to in the way the market is changing. is there a sense with the regulation and attractiveness

that banks will become slightly more utility securities as opposed to being the players they have always been in the past? >> that's a good point and i do believe that is the case and i think the market will pay a premium for high yielding stock and other banks are trading at 8 times and deutsche bank at 6 times. that's why we're searching for opportunities. >> can you report also banks most exposed to commodities given the on going sell off in that sector. which names are you avoiding? >> we would be careful on commodities because we do believe there's a potential risk of defaults increasing and it's clearly very difficult to know what bank has what exposure. so the only data we have is total exposure and risk and here we would be careful on the

u.k.-asian banks. but also the french banks which come out quite high and dnb in norway as well. >> how important are your expectations for what the central bank is going to do in terms of how these preferences that you just outlined play out and what are you expecting the central bank to do and if that didn't play out would you have to change your list of preferences? >> the central bank is acted by increasing capital levels to create already some cushion ahead of what will come. ie, harmonization of capital rules. this is in line with our note last night. in our view this is the right step and it's very much playing into what we are forecasting. we don't want to own stocks where capital is tight.

we want to own stocks where we are comfortable as a yield and that trade at good prices and at the same time we take the macro effect into our numbers by avoiding international risk banks. >> what is your reference? >> our reference is investment banks, deutsche bank. it is trading at 6 times earnings and 7 times tangible book value. it doesn't need more capital in our view and it can rerate. we expect the new ceo to give more details on a cost cutting program which will elevate the stock further. that is our top pick. on top of that we like ubs but to be honest ubs is turning more to be a private bank, a nice yield play rather than investment bank. >> overall looking at your report it seems the assumptions are based more on what investors

would perceive the rules to be rather than what the regulations are. do you expect these banks to go riskier and get closer to the regulations than some investors may want? >> it's a good point and i do believe that interestingly what you mentioned earlier the discussion by the ecbt capital levels are moving to what we have in our numbers. let's assume that's not the case and banks say i don't see the capital that you're projecting, then they will trade at a discount. ultimately the investor decides what the capital of the banks has to be. not the regulator. we will trade you at a discount. >> thank you for joining us in that report today. >> jp morgan is quitting open outcry trading at the london medals exchange. it reduces the number of firms trading to just nine. it's the only european exchange that still uses open outcry.

it reaffirmed it's commitment with plans to invest 1 million pounds in technology. >> hungary's defense minister quit following criticism they were taking too long to build a fence on the country's border designed to keep migrants and refugees away. this as around 1,000 migrants continue to march to budapest. ahead of an eu meeting on the crisis on monday german chancellor angela merkel says all european countries must take in more migrants. i want to bring you flashes coming from the german finance minister regarding this issue. he is saying that germany to enjoy good economic growth this year and next domestic demand to remain german's economy growth pillar. they'll have to expect a longer

period of lower interest rates. he has said tackling the crisis is a top priority and in terms of that he says he wants the refugee crisis to deal with this without taking on any new debt. saying the economy is strong enough to tackle the migrant crisis as things stand. right, let's discuss this further. joining us around the desk is hadley gamble. hadley still an on going crisis. the same thing every day. how are views shaping up around europe. >> we've had migrants come into europe. a lot of conversation about that and not as much about the security concerns. that's something we're hearing quite a bit. certainly here in the u.k. i had the chance to catch up with him and i asked him what would you say to people that say david cameron just isn't doing enough? >> social media may skreel and

and a few actresses may scream and say we're doing more but the vast majority of british public opinion says until we get a grip on current levels we're in no position to do anything more substantial. the other problem here, people are very skeptical and they're right to say are these people refugees. two comments. firstly, the slovacian prime minister said 95% of people coming to the eu are refugees and another comment from a very senior hungarian conservative, very moderate conservative, he said looking at the people coming through hungary they're

much better off and far richer. we have a tide of humanity coming over the mediterranean. i predicted this. i said if they stay you'll get a large number of people but i don't think we're really de dealing. there's clearly some cases that are genuine refugees but a lot that aren't. >> he is tapping into fears people have about security but about an influx of folks coming in from syria and other countries as well. where they're going to live and how they're going to be processed and if this is going to be a benefit to the economy. >> also the other outside question is how many of these people are genuine refugees and how many of them are migrants from elsewhere that might not be under life or death threats in their home country. clearly it's hard for us to know and we want to help as many as possible but he has a point. >> at the end of the day unfortunately for these folks

coming from syria that country has been destroyed. so whatever your political views are this is not a situation where there's anywhere for them to go home to. it's something all of us will have to continue dealing with. >> it's the cost question as well. he is saying this is great. we need to welcome these refugees but we don't want to issue anymore debt. prime minister cameron said we already have these funds and they'll be taken from a foreign affairs budge and there's a desire to have more spending. it's fine for germany and the u.k. that can afford it for the time being but when you talk about the countries under fiscal pressure can't afford it. >> 20,000 over 5 years. that's not that many. i think you'll continue to see that play out. >> and they'll all be pointing the finger at each other and asking each other to do more. thank you for that update. >> meanwhile the migrant crisis continues to dominate europe.

people are arriving carrying refugees and migrants and germany trying to take out it's leadership position in this taking over more of the migrants than anyone else we've seen so far. >> still to come here on worldwide exchange will the repercussions of the 2008 financial crisis still rattle spanish elections later this year. we'll hear first on cnbc from a former eu commissioner and prominent member right after this break. [ female announcer ] when you're serious about fighting wrinkles, turn to roc® retinol correxion®. one week, fine lines appear to fade. one month, deep wrinkles look smoother. after one year, skin looks ageless. high performance skincare™ only from roc®.

u.k. prime minister lost a vote on the country's membership in the eu. the vote will still go ahead but the government will be limited in it's activity and what it can publish during the campaign. it was called, quote, humiliating by the u.k.'s opposition labor party. >> it's neck and neck in the polls as we edge toward greek elections in september. a new poll has the syriza party in the lead with 27% of the vote. new democracy sits just behind at 26.5%. other polls published over the weekend suggest new democracy

overtaking syriza for the first time. it's expected to finalize it's state list today. these are the candidates awarded seats in parliament based on what percentage of the vote the party achieves. >> spain's economy may be picking up with gdp expanding 1% in the second quarter driven by strong performance in the service sector but the fastest growing country in europe could face growing political uncertainty. julia joins us around the desk now. the big difference ahead of the spanish election compared to the greek ones in february is the economy has already turned the corner. >> it's been a rocky ride and it's bouncing from a low level. you have to bear that in mind. it's around 22% and high deficit too it's recovering but there's still on going issues and then look at the political side. the two party system blown right

apart: so i think the ultimate question is to what extent does the economic pick up filter into the election we're likely to see in december and can it allow the incumbent people's party to win that vote. the latest poll sharing taking around 28% of the vote. so he is gaining votings but the question is can he pull it off for a full majority when that election comes? i spoke to former socialist party leader and former competition commissioner and i asked him exactly that. >> believed that because of macro economic figures they'll have eligible vote and it's not the case. they have improving a little bit in the polls but they lost a lot of votes. not only because of the crisis. indeed because of the crisis and

employment but corruption. and corruption is not a macro economic issue. >> it seems that the specialist can't capitalize on it because they're too busy fighting. >> but my party wasn't until 2011 and the last elections so the first three years of the crisis happened with the socialist government and this government was obliged to adopt very very tough adjustments and reforms against the electoral platform and these problems have been forgotten so some people say the popular party is not able to solve the real problems coming from the crisis but the socialist were the origins of the problem. >> the problem is we could end

up with a minority government in one way or another or a coalition with them potentially. it's up in the air at this moment. >> you know in spain since 77, the first elections this period, we never had a coalition government at the national level. so there is no experience at this level. we have different kinds of coalitions but at the natural level we have no experience and let's see how this can be possible to get stable government supported by a very very fragmented parliament. >> talking about the spanish economy and the possibility that we could see the first coalition government trying to be formed in spain in december after the elections. it's the first time since they came to democracy in 1977. it could be interesting for

policies beyond that to temperature the recovery. >> thank you for that. we'll stick with politics but switch state side. hillary clinton is set to unveil a set of finance reform measures today aimed at making them more transparent. this comes as a new nbc news morris poll shows bernie sanders is leading clinton by 9 points in new hampshire and also gaining in iowa. >> all this while congress returns today from their summer recess facing a lengthy to do list. the u.s. senate will start debate on the iran nuclear issue this afternoon although no votes are scheduled just yet. lawmakers must also pass a stop gap spending bill. president obama warned of the consequences of a shutdown. >> everybody knows the world economy is pretty volatile right now. our economy is a relative bright

spot. we're doing better than everybody else so a shutdown would be completely irresponsible. >> joining us now for more on that debate is tracie potts in washington. could we really be facing a shutdown debate once again as congress gets back and they have just until october 1st. do you think it's likely to get all the way to the deadline without an agreement? >> it's certainly possible. we saw it in 2013. a 16 day shutdown because they couldn't figure out how to continue to fund our government. there's areas where democrats and republicans agree. they want to extend funding for the defense department taken away previously but the president insists there's other domestic priorities that we need to take a look at as well and not everyone, particularly his republican critics here on the hill agree with him. the other thing is planned

parenthood. there's been a big fight here over their work with abortion and there's rumors that some may be able to hold it up over this issue. both of those could hold up progress. what they do is they'll pass a temporary funding bill and move on in further months to try to figure out something more permanent. we don't know if that will be the case. also the iran deal. the president has the votes to sustain a veto on that but there's likely to be a vote of disapproval and then they'll veto and come back and sustain that veto. all of that has to happen over the next few weeks. not to mention the pope is coming to town. >> a lot is happening in washington there tracie but on the iran issue is there anyway the president can avoid having to get to the veto at this stage or is that a forgone conclusion?

>> he doesn't have enough votes to pedestrians vent the disapproval from happening. republicans are in charge of both houses. the disapproval is most likely going to happen and then they'll have to veto that. >> thank you for that. new jersey governor and presidential candidate chris christie will be on walk at 13:40 cet. >> warren buffet will be in new york. he has a sit down with the winning bidder of the annual ebay auction but before he puts in his orders he'll speak to becky quick to discuss world markets and the global economy. that's today on squawk alley at 11:30 a.m. eastern time. >> let's take a look at how markets are trading. the second straight day of gains here in europe and a lot of investors taking confidence from the china markets.

a late day rally but they'll also be seeing how u.s. markets open after the long holiday weekend. >> let's have a look at u.s. futures. markets were closed for labor day. last week was the second worst week of the year for u.s. markets. all three indices down 3%. they're also all now negative. month to date, quarter to date and year to date. so given that and given that european markets are bouncing we're also expecting a bounce back in u.s. markets. worldwide exchange is back in just a couple of minutes.

a very warm welcome to worldwide exchange. i'm wilfred frost. >> these are your headlines from around the world. >> a staggering slide amid reports of more government intervention. but the nikkei wipes out the gains. >> the dow set for triple digit gains as u.s. stock markets reopened. they close after correction territory after the second worst trading week of the year. >> uber takes a road trip to china. the ceo doubles his growth plan afterai