a very good morning to you. this is worldwide exchange. i'm wilfred frost. >> i'm size san li. these are your headlines from around the world. >> european stocks see red after the fed holds steady but janet yellen is criticized for creating a third mandate and blames the growth concerns in china for the decision to hold. >> the outlook abroad has been more uncertain as of late and concerns about china and other notable market economies lead to notable volatility in state side

markets. >> the dow swings 300 points. but today's futures are pointing to higher open. >> a vote could throw the imme menation of the bailout in doubt. >> japanese stocks closing in the red despite optimism for the bank of japan. growth is returning but they will keep a watchful eye on china. >> the reaction by european stocks this morning is a negative one as you can see. we're seeing red particularly in italy down 1.34. now the reaction was sort of simulate yesterday in the u.s.

we didn't see a rally, certainly. it was sort of mixed to down and we are expecting a bounce back today for u.s. equities. the dow expected to open up about 10 basis points. s&p similar and the nasdaq just above flat. for this negative reaction we've seen in europe and the u.s. since the fed meeting yesterday bear in mind that we're still in positive territory for the week as a whole and follows stronger performance last week as well. yesterday a big bounce of volatility toward the end of trade after we saw the fed move but only finishing down hardly a massive move. let's look at the dollar index as well. that was a clear move down as we got that decision and both the markets had seemed to start to price in a possible hike during the last week or so. thus we did see the weakening to

a tune of about a percent late yesterday. a similar story there as well particularly the two year note. we had seen yields tick up to a four year high and we did see a move down in that. 0.67 period at the moment and it had got close to 2.3% before the fed failed to hike so have they assigned themselves a third mandate? chair janet yellen explained her concerns for the health of economic activity outside of the u.s. >> the outlook abroad appears to have become more uncertain as of late and heightened concerns about growth in china and other emerging market economies have lead to notable volatility in financial markets.

the furthering depreciation of the dollar and spreads tightened overall financial conditions to some extent. these developments may restrain u.s. economic activity some what and are likely to put further downward pressure on inflation in the near term. >> chair janet yellen was cautious in her language when it came to indicating when a rate hike might actually come saying that uncertainty remained around the strength of the recovery. >> we recognize that there has been a great deal of focus on today's policy decision. the recovery from the great recession has advanced sufficiently far and domestic spending appears sufficiently robust that an argument can be made for a rise in interest rates at this time. we discussed this possibility at our meeting. however, in light of the heightened uncertainties abroad and as slightly softer expected

path for inflation, the committee judged it appropriate to wait for more evidence including further improvement in the labor market to bolster confidence that inflation might rise to 2%. >> the morning after this much anticipated rate decision i think i have seen every joke and anlage surrounding doves. like prince. this is what it sounds like when doves cry. >> exactly. lots of these anlages out there but bottom line for me they choked. completely and utterly joked and they really did bring in the international, the third man dane. i think this is a sign that they just don't have enough confidence in what qe achieved or we would have seen a hike. >> they're also talking about this negative feedback loop when

it comes to exports. a stronger u. s. dollar, earnings declines and moderate expansion but it's interesting because one hand they were giving and one hand they were taking away. that economic recovery has been surprising strongly. a agree with you. i don't understand what the hesitation is right now. >> but adding to that i wonder if it's pointless looking at the numbers right now. the mathematics and economics of it all aren't what's making their decisions. it's a psychology now. it's hard for us to know what they're thinking on that level. obviously, china, the international situation but for me, more of what is effecting them is this idea of what europe and japan might be doing. they've had easing so long and they'rer the pied about what

might happen when they come off of it. we might see more easing elsewhere which would accentuate it domestically. i think that's the issue and steve mentioned what he said this morning about hotel california, you can check out any time you want but you can't leave. they haven't got confidence that qe achieved enough in the fundamental economy such that it can stand on its own two feet. >> i feel like the market is disappointed. they're wondering when exactly -- when are the conditions right for the first interest rate hike in nine years and when you look at some of the fomc predictions out there we had a doubling of fomc members pushing out the hiking curve and normalization beyond 2015, what does that say? >> people are lacking confidence. they didn't get a idea that they had fundamental outlook and

enough to hike i think. we've seen everyone push it back. particularly when people were expecting september or at least certain that we'd get december and that china volatility made everybody push it back a bit but the market itself clearly moved yesterday and some people were expecting a hike and didn't get it. >> speaking of china, it's interesting that one central bank is criticizing another central bank because in the press conference janet yellen was highlighting the lack of deafness from beijing authorities. should you be going out to criticize others. >> if i was yellen i wouldn't be going there. that's what i think. >> the debate wages on as to when the fed will pull the figure. they speak about their move.

>> they have been pitching it for so long and basically promised 2015. i would say yes. what they want to do is start to renormalize to move that the united states and perhaps the global economy is standing on wobbly two legs but standing none the less so i think they're going to go. what i think is important though is they're not going to go very fast and very far. >> i also think it's important here that december is a possibility still as long as the u. s. economy does hold up. that will make a big difference if the consumer continues to charge ahead and that could bring the doves off that and chair yellen really discounted that. >> there's not that much data that happens between now and then. i think you're pointing toward a december move. >> so one former fed official told cnbc why he thought it was a mistake not to hike this

month. >> if we have calm global situation, why not october? i think it should have been september but october is next best and december if not october. i think it will be this year. she keeps saying that, i believe her. >> joining us now is the global macro strategist at jp morgan asset management. right decision or wrong decision? >> right decision. i disagree with what you said. the domestic conditions are not in place to hike interest rates. they did mention the inflation condition in the statement for me the weakness of price pressures already in exist answer the plus another route in commodities plus the fee from headline into the core will make it unlikely that inflation is going to be where they want it

to be and that was always the main reason not to hike. the dollar is high on a trade rated basis. a lot of income has sold off. it's simply the conditions to raise capital for businesses in america have worsened and also thirdly i'd say yes we made a lot of progress on the labor market but nobody knows what full employment is. i suspect it is well below 5%. i suspect that the committee is coming around to that view now and one of the most interesting things we saw is changes in the long-term projections for where they are. they continue to rachet down. we're getting to an understanding where we'll see a lot tighter labor market if we get pressure there. >> if we look back to a year and two years and the messages they were giving them. unemployment has to fall below 6.5% and growth has to be at a certain level, we crossed those

targets a couple of times already and every time we get to thinking they're confident enough to hike they don't and now the signals perhaps aren't giving markets encouragement because even the people that love qe are saying it's not doing enough. >> the thresholds they gave were not magic vines. they believed that growth conditions would be stronger. they made forecasting errors. a lot of people did. they got there and realized the world wasn't the way they thought and reevaluated. what else do you want them to do? of course they had to reevaluate and change their mind. china is slowing, economies are falling off a cliff. the whole nature of how labor bargains in the western world has been altered by a collapse in unionization rates and an understanding of the weakness of

labor. this changed the calculation on how robust and how strong inflation is going to be. >> aren't they changing the play book? there's two mandates that govern monetary policy. it's inflation and employment. we're at full employment. >> i disagree. >> 5.1%. that's at their target they stated. it's near term deflation that they're saying these are near term factors. >> they have racheted down their full employment estimates consistently. they have been wrong. >> they keep moving the goal post. full employment is 5.5% and now it's 5.1%. we're still not there. >> full employment is whenever you start to get robust wage growth. everyone is talking about it on the inflation side of the mandate. that's not the most important point about it. that's actually the most important thing. i would say that, you know, the economy has changed and they're changing their circumstances.

i don't think we're going to get a rate hike in october. i don't think that either the global conditions they cited nor the massive undershoot in inflation on going. that's the biggest credibility there. it's been too low for years. massively low and they hike into that environment. i think potentially you could get in in december but you need to see a turn around in domestic inflationary conditions to target that. >> we did have a big correction in august but are we seeing enough earnings growth after a five or six year qe rally? >> no, we're not because it's been massively impacted by lower oil and we've seen the stronger dollar and that hurt the exporters and multinationals as well. that's two temporary hits. oil can stay low. the dollar can stay strong but it's a flow thing into the earnings side of things.

we think you're going to get low double digit earnings growth next year. that's one of the reasons we think this market will continue on. >> thank you for joining us. >> let's check in on what's happening when it comes to government bond yields. we had yields coming down along with a two year note because they didn't do anything and looks like they pushed up their expectations to possibly next year in 2016. tracking what we saw last night. let me bring that up for you in the u.k. guilt. bond prices going up and yields coming down. we're not going to get any

tightening when it comes to monetary policy and we did have a sell off taking place in japan. it was a relatively positive session and maybe there are concerns about what happens in china and how that riels through markets around the world and japan. let me show you the rest of the market action as you see some gains. let's talk about asia. we have sri joining us from singapore tracking the reaction to the fed how long is this bounce going to be sustained for is the big question when you have structural problems over here and you have growth concerns over here as well. touched upon by janet yellen during the fed press conference and that statement, remember?

so because we have seen status quo in terms of policy that gives emerging market assets something of a respite. the fed did flag a number of issue with the global economy. china was front and center. they see weaker global growth so that's going to effect us over here and if things are going to get worse that's going to sour sentiment over here furthermore as well. now one of the benefits of risk aversion is going to continue to be the safe haven japanese yen and when we saw the dollar being undermined we saw it going into the yen and that undermind the sentiment toward others.

bringing down the broader nikkei by about 2% at the settlement. that's where we stand. back to you. >> thank you for that. sticking with china, new home prices up 0.3% in august. the fourth straight month of dpans he dp gains helped by government support efforts. in beijing, prices were up 3%. >> we're going to go to break here on worldwide exchange. coming up on the program, greece shae is heading to the polls for the third time this year. are the people fed one politics? we'll cross out to athens where julia has the latest. also further approval for the heart failure drug. we'll go live to speak to the company's ceo and sidney's amazing cafe culture. we find out what the purr-fect weekend looks like for australia's animal lovers.

many wrinkle creams come with high hopes, but hope... doesn't work on wrinkles. clinically proven neutrogena® rapid wrinkle repair with the fastest retinol formula available, it works on fine lines and even deep wrinkles. you'll see younger looking skin in just one week. stop hoping for results, and start seeing them. rapid wrinkle repair... ...and for dark spots rapid tone repair. from neutrogena®. then don't miss sleep train's want youbest rest event.? you'll find sleep train's very best mattresses at the guaranteed lowest price. plus, pay no interest for three years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. and rest even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪

announcer: babies who are talked to from the time they're born.. are more likely to have a successful future. talking and reading to children in their first years has a huge impact on what they do with the rest of their lives. the fewer words they hear, the greater their chances of dropping out of school and getting into trouble. talk. read. sing. your words have the power to shape their world. learn more at first5california.com/parents >> croatia has blocked off seven of its main road crossings in serbia in an attempt to limit the number of migrants entering the country. the country is full and it has advised migrants to stay away but despite these measures reports suggest that refugees

continue to find routes into the country and in response we also have hungary beginning work on a wall to close off it's border with croatia. the council president will host a summit of eu leaders next week and this is an attempt to find some sort of resolution to the on going migrant crisis. meantime, reports suggest that russia is applying new types of air and ground weapons to the syrian military. members of the international community expressed alarm over russia's support for the assad regime. the izraeli prime minister is set to meet with putin next week to discuss the issue. >> greece is gearing up to vote for a new government this weekend with many voters still undecided. let's get out to julia. she is live in athens with a preview, julia. >> thanks so much, wilfred. too close to call according to the polls. the question is are voters just too weary, too sick of elections

and votes in this country to even bother going to the polls. the morning papers, really interesting, just 48 hours for some 650,000 greeks to decide which way they're going to vote. we're talking 10% of the voting population. i can break this down for you more. 20% of the voeting population either undecided here or going to be voting for parties that might not get into parliament after this vote takes place on sunday. i think that really does show you just how it lays. a lot of people here i'm talking to, particularly young people that were so instrumental back in january on the votes also saying they just don't know how to decide and saying actually given the agreement on the third bailout deal it doesn't really matter whether new democracy or a syriza win because they've got no choice. they'll have to follow the bailout program particularly over the reforms in the next couple of months. the question is how committed though are either to actually

winning this election. i spoke to nick, he is the editor and had some interesting things to say not just about voters but also about the different leaders of the two main parties. listen in. >> it's the election no one wants to win and no one wants to vote in either. there's a school of thought that syriza would prefer to be in opposition because it could then refer to its antibailout, antiausterity stance. >> so they may have shrugged off the leftest platform. those people that were against europe, against the bailout program. but has that made it any easier? it still could be very difficult. i spoke to a member of parliament for new democracy and he actually questioned tsipras's commitment going forward.

listen in. >> i don't think he has any real intention of implementing the program which he signed. this is a program of liberal reforms. it goes against everything that tsipras believes in. i don't think he has the will or the capacity to deliver. >> so the polls say this election is pretty knife edge. i'd have to make the point that the polls have consistently underestimated alexis tsipras in the last two elections or votings that we have seen here in greece. so for that reason if nothing else you have to say that tsipras is still the favorite. he's going to hold a rally here tonight and that will give us a real sense as it did when we saw the referendum of what the support is and whether or not the greek people are going to trust him to give it another go. back to you. >> thank you very much for that. now the voters of course might be tired but no sign from julia who is out there once again great coverage from athens. storm clouds still hanging over

fifa. football's globaling body indefinitely suspended it's secondary general and second in command on thursday after a player claimed he planned to resell tickets to the 2014 world cup games to make a profit. fifa said in a statement it has requested a normal investigation into the allegations by it's ethic committee. he is sepp blatter's right hand man. host nation the wonderful england takes on fiji. new zealand is going as the favorites. world rugby expects 500,000 fans from overseas to visit throughout the tournament and that will generate 1 billion pounds for the u.k. economy so win-win as well. win the tournament and also make so money. great stuff. but we're asking you today is

economic performance a leading indicator for who will win the world cup? in that case, therefore, does england actually stand a chance? and from the perspective of new zealand, the big favorites of course they have recently had to cut interest rates. the kiwi dollar is falling. >> and when they won in 2011 they were the rock star economy. i see the correlation you trying to make. >> it's definite. >> get your views into us here on worldwide exchange on the rugby world cup. we'll discuss that and markets. lots more still to come here on worldwide exchange. with passion. built my buss but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪

and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? i'm watson. and today hundreds of companies are putting me to work. i'm teaching watson to help your vet speak dog. you're a dog, right? i'm teaching watson to help you make healthy choices. i'm teaching watson to help design a vacation around your personality. don't judge. i'm teaching watson to answer endless questions. how big is infinity? where do babies come from? why can't i have chocolate for breakfast? i'm watson and i'm ready to work with you.

announcer: babies who are talked to from the time they're born.. are more likely to have a successful future. talking and reading to children in their first years has a huge impact on what they do with the rest of their lives. the fewer words they hear, the greater their chances of dropping out of school and getting into trouble. talk. read. sing. your words have the power to shape their world. learn more at first5california.com/parents then don't miss sleep train's want youbest rest event.? you'll find sleep train's very best mattresses at the guaranteed lowest price. plus, pay no interest for three years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. and rest even better with sleep train's risk-free 100-day money back guarantee.

get your best rest ever from sleep train. ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ janet yellen is criticized with creating a third mandate after blaming growth concerns in china for the decision to hold. >> the outlook abroad is more uncertain of late and heightened concerns about growth in china and other emerging market economies have lead to notable volatility in financial markets. >> stateside, the dow swings nearly 300 points during the session while the dollar falls to three week lows but today's futures are indicating a higher open.

>> greece's leading parties are neck and neck ahead of this weekend's elections in a vote that could throw the implementation of the bailout into doubt. >> japanese stocks close in the red despite optimism for the bank of japan. policy makers say growth is returning but they will keep a watchful eye on china. >> so it is the day after the fomc fed decision. let's check in on european markets and how benchmarks are performing on this final day of trading week. losses across the board. quite a pronounced sell off taking place in germany and france and the ftse mib telling us we're lower so far. gold ending the day over in the u.s. at levels not seen since the beginning of this month after janet yellen and co held off on tightening. gold stocks across europe get a boost after the fed's inaction last night. investors taking profit on the

precious medals this morning after it jumped more than 1% following their decision to hold steady. >> let's look at bonds and forex because moves in both asset classes did suggest markets priced in some form of a hike yesterday and then we saw moves that reacted to the fact that we didn't get a hike in particular. let's look at the ten year note in the u.s. 2.17 today. it had got close to 2.3 ahead of that decision and the two year note is about 0.67 this morning. it had been up to 0.8 before that decision. let's look at froex rates. the u.s. dollar did sell off to the tune of 1% yesterday. let's have a look at the euro there flat today but climbed well above 114 yesterday. 1.144. the yen also, let's have a look at that, 119.46. >> okay. let's check in on the federal reserve and the surveys out there because the fed did hold off on raising rates this month. most expectations still favor some sort of move by the end of

this year. a flash survey shows that 64% of respondents still believe that the fomc will hike interest rates at one of the two remaining meetings in 2015 with 56% leading toward december's meet although 15% now expect a hike in january next year more than half say it's still too accommodative. they're pricing in the first full fed hike in marchand a move sun likely before the end of this year cnbc has been speaking to ceos from around the world. carolin joined us on set for our next guest. >> that is joe. thank you for taking the time. so many things to talk to you about but i want to kick things off with the fed. you have a huge u.s. exposure.

you report in u.s. dollars. does it matter to you when the fed makes it's first rate hike? whether it's october, december, or next year? >> no it doesn't really matter to our business. the more interesting thing is that this is the first time that an event in china has lead to global dislocation of financial markets. that is a big marker that says that china has arrived and it is going to have a big impact on global markets but for our business personally, whether they raise it now or later it's not going to make a huge impact on our business. >> you make an important point about china leading the fed to hold off on hiking rates yesterday. 26% of your revenues come from the emerging markets. china as a determinant for many of these. how worry redirect examination you about the slow down that we're seeing there and are you

considering pulling back from some of these regions just because the growth there doesn't stand up to your expectations? >> we've seen a bit of a slow down in emerging markets, particularly choo in a but in our business that means moving from mid double digit growth rates to now in the mid single digit growth rates. if you think about the global health care market at 2 or 3% this is still incremental growth. we're in these markets for the long-term and we're going to live through the volatility and come out stronger once these economies start to move as fast as they were before. >> joe, it's susan here in london. i want to talk to you about the curious market of china because it's a little bit different in terms of how you sell pharmaceuticals in that country as a foreign pharmaceutical player because up until recently i'm still not sure that prices have been fully liberalized but you have a cap on how much you can charge chinese customers.

is that still the case or do you feel like the reigns have been loosened as opposed to just being lip service. >> novartis has pharmaceuticals but we're the number two generics in the world. a lot of it is self-pay. there's still universal health care coverage but a lot of it comes out of the pocket of the patient. so less expensive generics that are high quality do well in china so that's really what is driving our growth in the country. >> i want to talk more about your business. >> and one of the growth trends is immuno oncology. by 2025 they see oncology revenues of 29 billion u.s. dollars. how much of that will be immunooncology? >> well, that remains to be seen

but it is a very exciting and important part of the overall oncology market. novartis is the number two player. we have six agents either in the clinic or moving into the clinic and it's unique because these agents a lou your own body to work as defense against the cancer. so this is what is so exciting about it. it's a new technology. i think it's going to become a material part of but we'll have to wait and see in terms of percentages how it looks because there's also other new emerging technologies helping cancer parents around the world. >> you are currently number two. but what do you do to remain really competitive in that space? >> well, in oncology, as you know, last year when we announced our portfolio transformation, we required the

oncology portfolio and put that on top of our portfolio which is a very strong portfolio in certain types of blood cancers. we're now in metastatic melanoma and what we have done is broadened our line and we believe that as oncology moves into combination they are pass and they become more and more important the winners in oncology are going to be the ones that own all of the elements of the combination so you're not having to split economics. you own all of thelda and that's really what is driving our efforts in oncology. >> finally, before we let you go, it's been a record year for m&a specifically in the health care space and you have been quiter in terms of acquisitions and takeovers over the last year or two. you just eluded to the big deal you closed earlier this year. i just want to get your sense, though, on how you feel about valuations because we're pretty late in the cycle now. >> yeah, we're still absorbing

the transactions that we did last year with gsk, can eli lilly and with csl but if you think about, we're looking at everything that's out there. the reason why novartis hasn't moved sass sets are very expensive now and we're going to hold our powder. we're going to see what happens in the markets but that doesn't mean that we're not looking. we're looking at every asset that is out there. >> always great to catch up with you. appreciate your time. the ceo of novartis. >> thank you. >> here is more of the c-suite reaction to the fed's surprise decision from cnbc's coverage of the singapore summit. >> there's a lot of wisdom in the decision, no? >> why. >> there is wisdom when you look at the american economy. when you look at what's happening in the global economy they have taken a very careful stance. but they give a signal. they may act one day. they don't say they will not act. they say, look, we don't do it

now and they explain why and i think this is great. >> i am not surprised. i think that's what the market expected and what i expected too but the keyword is normalization. we would welcome the normalization as soon as possible. >> it has to be good news. normalization will mean that the world economy is doing better. >> that's right, yeah. >> and people are way too focused on the interest rates per say rather than what it means for the economy and there's no scenario where the world economy doing better is bad news. >> overall, this at the situation was probably a pragmatic one. i think interest rates should rise at some point. they need to rise slowly so that it doesn't cause any major disruption. it's a question of when. rather than whether. but i think that a postponement is probably understandable. >> so what was your reaction to the fed decision? shocked? happy? angry? excited? worried?

disappointed? or bored, perhaps? by the lack of action. well check out rick's response. he certainly wasn't bored. you might need a bottle of water for this one. >> china has been slowing for quite awhile. commodity prices have been going down for quite awhile. the only thing that's really change sd td is the communist ls are worried about it. i continue to go back to 1977. you have pillar one, unemployment maximized. you could argue that. at least based on their numbers that's true. you have pillar number two, very stable prices. they have stable. 2% is arbitrary. but anybody thirsty out there, a third pillar. they're now the un central bank as well and i'm not so sure that they're sanctioned to make that as large a focus at a time when they don't have a handle -- it's

my turn. >> yeah but you're being really silly, rick. >> it's my turn. >> you are just being silly. >> why. >> well, go ahead and be silly. >> let rick finish here. >> waste everybody's time. >> the european central bank doesn't have the latitude that's not given to them by their leaders and i'll not sure that janet yellen is completely on solid ground here. it sounds to me like an excuse and i think that these press conferences ought to be rethought. that was very uncomfortable to listen to. >> i like that passion. >> definitely not boring. but that's the consensus around the world. we have a man date for the federal reserve. it's no longer just ploiemploym or inflation. it's how global markets are doing. >> i'm not surprised they mentioned the international situation but there's a much clearer focus that that was a factor in their decision. not just an observation. on the international situation i don't think it's just china that they're looking at or just

slowing global growth. they're taking note of what other central banks are doing around the world. the ecb and boj in particular because them tightening, if we're about to get another bout of easing, it accentuates what they're about to take. >> should they be judging it on the u.s. economic situation. >> a agree with you on that but you can import deflation. >> now they're saying they're the global central bank to the world except for being for the u.s. >> listen a agree with you and i agree with the sentiment but if you're saying it the other way, you can import the deflation in china growth slows a lot and also if the bank of japan and the ecb ease themselves then the dollar is strengthening and tightening in it's own right. >> that's the feedback loop they're talking about. slowing exports, stronger u.s. dollar but the take away from a lot of the analyst and economist notes the day after this is.

>> doves. >> doves, absolutely. more doves. in fact a doubling in the number of fomc members that have pushed their expectations for a rate hike until it went well past 2015. you're really enjoying the footage. >> hawks are much -- look at those. i like that. and also a hawk looks some what russian. >> eastern european. >> which is interesting. >> possibly more aggressive than the american hawks. >> but interestingly we did get no hike but a very dovish statement still. >> yeah. >> you might have thought it would be the other way around. either they would be really, really positive without hiking or hike can be -- anyway, i'm confusing myself. >> too bewildered by the dove footage. what i found interesting was where they're going to see interest rates and growth trajectories there's one fomc

committee member that predicts the fed's fund rate will go negative this year and next. so we're importing inflation. >> we talk about it for the next year and three months later they're not accurate at all. >> but it's an indication as to where they think things will be but has it really translated into the moves from the fomc that we have expected? not really. >> right. we'll continue this discussion after the break. also still to come here on worldwide exchange, high fashion, low prices. stay tuned to find out how the sharing economy are disrupting the luxury clothing sector. we're back in a couple of minutes. female announcer: want your best rest ever?

then don't miss sleep train's best rest event. you'll find sleep train's very best mattresses at the guaranteed lowest price. plus, pay no interest for three years on beautyrest black, stearns & foster, serta icomfort, even tempur-pedic. and rest even better with sleep train's risk-free 100-day money back guarantee. get your best rest ever from sleep train. ...guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪

the perfect cafe for cat lovers is part of cnbc's series of reports on the sharing economy. matt taylor visits a cafe in sidney with an unusual business model. >> it's not on a planet far, far away but this cafe is like no other in sidney.

latte are in high demand but so too is something else. >> he is one of those that you can mingle with at catmosphere a cafe that just blasted off. >> guests can come along and spend some quality time with adorable rescue cats. they used inndygogo to open it's doors to the public. several hundred people pledged funds. >> we set out to raise $35,000. initially we managed to launch a very successful start. we made something like $4,000 in the first hour hours of the campaign because a lot of people were waiting for something like this to come along. in the end we made about

$40,000. >> kick starter globally raised over $529 million for 22,000 projects last year alone. >> the top 20 campaigns raised over $20 million in australia and the interesting thing is that most of the funding, more than 65% of it was australian dollar funding by australians on australian platforms. >> the idea was hatched after experiencing a cat cafe in thailand and he plans to expand it to include kitten adoption. >> there's two feline filled rooms. this is the kitten adoption room where if you're looking for a new member for your family you may find the perfect addition. >> and it's not just cat caves with crowd funding investors making a beeline to this start

up. honey flow smashed it's target of 70,000 australian dollars instead raising over $12 million making it the best ever crowd funded venture outside of the united states. it's developed beehives that require no human interaction. revolutionizing the hundred years old tradition. thousands of hives have already been ordered and the company thanks crowd funding for its rapid expansion. you could say it's the bees knees. in sidney, matthew taylor, cnbc. >> the bees knees. >> well, and the cats. >> cats meow. let's talk about london fashion week. on to another topic. it's not really on to another topic because it's still part of the sharing economy. the london fashion week does start today but for many the clothes are just only on show and they're simply too pricey to actually purchase though this could be changing. a breed of sharing economy companies are make designer

clothes available to a much wider market. joining us now the managing direct direct director sheik by choice. they have gotten that word into my head. so i'm sorry. i'm a little subconscious. i can get designer dresses at 15% of the actual price. >> yes, you can have run way looks from some of the most inpyring brands. we're talking about any woman dreams of but only for 10 to 15% of retail price. >> or any man dreams of if we're honest. these are the types of things that we're looking at. >> these are really luxury items. even you look great. >> even you look great. >> which would be do we think is the one i should be renting? and how much would this cost to rent? >> we're talking about for example retail price of this dress would be above 700 pounds

but for rental only 114. and dry cleaning is included. free second size to guarentee perfect fit. >> okay but sizing, right because wilf -- >> clearly i'm not going to be ordering one but usually you have to have these things adjusted and the like or not. >> we're talking about women that they probably don't know if they're a size 10 or 12 in that specific brand. they're trying the brand for the first time some of them. so we give them the chance at no extra cost to access a free second size. so instead of receiving one dress per rental for that size they receive two dresses in two different sizes so we guarentee perfect fit. >> is this just a totally new trend of renting very high end dresses? or is it just something that's taken off because it's enabled by smartphones and by tech and various apps? >> we're talking about two

different effects. we've seen for example in the u.s. renting is huge market and has been there five years really strong and we have the effect that people want to access ownership. they're enjoying uber and enjoying airbnb businesses and now they're more and more into trying it. so fashion can be one of them and yes, so different effects that we're talking about but it's growing. >> one more question for you. quickly get this in. if you were to recommend one dress that might be perfect for me or wilf what would that be right now on the website? is he an alberta type or prada type? >> it's an amazing designer i love it and it's young, trendy and you can wear a pattern without investing too much in something that you're not sure if you're going to wear ten times that pattern so it's a good rental choice. >> well, good luck with the enterprise. and thanks for dropping by today. >> thank you so much for having

me. >> managing director at chic by choice. now for more info on the chairing economy and the companies offering luxury products and services head to cnbc.com. there you'll find a guide to ride sharing trips on private jets and so much more when it comes to sharing. >> watch out netflix, bbc could become a force to reckon with as it plans to roll out a new subscription style tv service. the u.k. broadcaster hopes the platform targeting u.s. audiences will increase profits by over 30 million pounds a year. this as the bbc continues to face funding cuts and a budget squeeze. i have to say, this is a very interesting additional story to the ever changing, you know, landskap of broadcasting. of course bbc is the most traditional pretty much out there. it's funded by the taxpayer. it's starting to boost revenues externally. it's a long time before they're out given it's status as being funded by the u.k. government. but this is an interesting one.

it highlights the type of content the bbc has and it can stand on its two feet. >> coming from asia we get bbc entertainment channels. bbc knowledge and bbc entertainment so this is not something new if you're living overseas trying to get access to bbc shows like doctor bho awho the like but this is something they'll go international with first. >> it's going to be launching in the u.s. so only certain shows are still allowed to be released externally from the u.k. but if the bbc is moving in this direction clearly the industry is as a whole. right let's move on and talk about rugby. the 8th rugby world cup kicks off today when host nation england takes on fiji. new zealand go into the tournament as the favorites. england second favorite. the sports governing body world rugby expects 500,000 fans to

visit england and wales throughout the tournament. today we have been asking you do you think economic performance is a leading indicator for who will win the championship? in that case, does england actually have a chance to win it? because they're looking all right. >> do you think? >> we have a chance. we do have a good chance. we are second favorite which is i think is a little much. but new zealand is definitely the favorites. >> you can tell us who you think has a fighting chance. we'll get a break here and see you in just around a few seconds time.

everywhere you look, it strategy is now business strategy.? and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now... to what it needs to become.

happy friday, welcome to worldwide exchange. i'm susan lee. >> i'm wilfred frost. here are your headlines from around the world. >> european stocks see red after the fed holds steady but janet yellen is criticized for creating a third mandate as she blames growth concerns in china for the decision to hold. >> the outlook abroad appears to have become more uncertain of late and heightened concerns about growth in china and other emerging market economies lead to notable volatility in na