a very warm welcome. this is worldwide exchange. i'm wilfred frost. >> i'm carolyn. these are your headlines from around the world. >> vw ceo says he's deeply sorry but his future hangs in the balance as the board tackles the fall out from the emission scandal. >> million of people all over the world trust our brands, our cars and our technology. i'm deeply sorry that we have broken this trust. >> european shares now trading in the green after a negative session in asia due to disappointing chinese manufacturing data. french factory growth surprises

to the upside while germany slows fractionally. >> global stability. chinese president urges stronger cooperation with the united states as he looks to reassure senior business leaders amid concerns over reform and cyber security. >> total slashes spending by $3 billion as lower crude prices take their toll. the firm also faces allegations of natural gas price fixing. >> good wednesday morning, i'm susan li. also coming up on the program, shareholders are backing brian moynihan. find out how bank of america's chief held on to both of his titles. and a victory for hillary clinton. a pharma firm says it will drop prices but by how much? and we find out how social media

giants are waging the battle for users. we have the composite at 53.9. manufacturing was 52.0. that was just in line and services 54.0 just below the expectation of 54.2. so that follows german data that was mixed just below expectations and french that was just above expectations. the euro is flat on the day. it's been up and down either side of when the french and german data came out but none of this data too far from consensus. overall it's just below expectations and the euro is flat. >> a lot of volatility in shares

of vw. currently we're higher by 1.4% but over the last week the stock has lost 36% in the last two trading days alone it's lost some 15% in market cap or 26 billion euros. i also want to show you what the dax is doing. that's shown you a turn around as well. it's down over 6%. we're up marginally this morning. that despite advising it's target lower on the index on the back of the scandal. the contribution is 35% in terms of eps and roughly 25% in terms of market cap. >> it is germany's largest corporation. they cut the price target to 130

euros. also cutting it with a price target of 179 euros. diesel penetration may see fall out from the scandal across europe but they think that the market reaction is overdone in their words and it sees some modest share opportunity for vw shares. vw also faces at least 50 class action lawsuits in the united states. the company has admitted to over 11 million vehicles being effected in this and vw ceo apologized for misconduct but rumors continue to swirl about the safety of his job as we have this emergency meeting this week and his contract is up for renewal as well. >> they are expected to meet today after a crisis meeting on the admission scandal reportedly already kicked off last night. let's get back out to nancy that joins us from volkswagen headquaters. this could be a make or break

meeting for the ceo. >> that's right. it certainly could be make or break because the ceo needs to convince the others. he's still the right man for the job to steer this company through a very serious storm. it's not just about the u.s. where they're already piling up and facing orders to recall about 500,000 vehicles. this case could stretch into europe and beyond so a lot is at stake here. some of the 70,000 employees that work here, they would think listening to the radio and local newspapers that it was a foregone conclusion at this stage but he doesn't seem to agree. he released the second serious apology in a matter of three days, this time with a video

message stressing how sorry he was and what he intended to do to win back the trust of the customers. >> i personally am asking you for your trust as we move forward. we will get to the bottom of this. we're working hard on the necessary technical solutions and we will do everything we can to avert damage to our customers and employees. we will do all of this with the greatest possible openness and transparency. >> so trust is the operative word there but he has a very sere warehouse battle to achieve that keeping in mind that he has been in this position since 2007 and the deceit devices that we're talking about in order to pass or cheat these emission standard tests started to come into existence in 2009 and this is a ceo that prides himself on being an engineer and knowing every little detail of the vehicles so this is a special embarrassment for him and next

up will be to survive the supervisory meeting talks. and there's a meeting to be held on friday originally intended to look at his two year contract extension which was largely seen as a foregone conclusion but what a difference a week makes. >> thank you for that. >> now he said a lot of people in volkswagen would have known about the emissions issue. it would have been hard to hide such an effort to false identif. he urged the industry to be extremely open. >> joining us now is martin briggs. good morning to you. thank you for joining us. let's kick off with the issue with the whole volkswagen scan doll. do you think he would have known about it? >> if he did, he has a very good

poker face if you see his last two announcements he made. there's going to be people that will have known about it. initially this was a u.s. scandal. it's now quite quickly escalated to a wider scandal, 11 million vehicles have been effected but it's not going to be something the ceo is going to give sign off on a certain specific device however product managers involved within that specific engine, within the diesel range, within the countries they're the ones that probably will have known about that. so those few people are the ones likely to be implicated in the next few days. >> and criminal charges have been brought as well in the u.s. so we'll have to see what the fall out is on that front. clearly there's going to be fines. how big could those be and what from other areas. >> if more pressing challenge is

the consumer cost. now people aren't going to want to buy it from vw and others as well. so others trying to do it in other markets are going to struggle. people that do have the vehicles are effected. does that mean they have to give them a refund or replace them or repair them? you're going to be worried about that and want something whether it's compensation or diesel. >> that's the thing. >> i want to talk to you about the testing standards as well. doesn't this show that maybe there are outdated testing standards around the world. the korean government has come out? we heard from the french minister saying this could be a global issue. >> very much so. the standards are different globally. within the u.s. you have different level of pollutants

allowed versus the u.k. for example. that means when you're trying to sell effectively the same product in different markets you're playing toward different standards. so you either create new models, provide new engines that cost a lot of money or they have chose on the take a slightly more deceitful way, they've chosen to cheat in those areas. not just the actual standards bt how much they are applied in different markets. what we'll see going forward is each of the countries will have a look at theirs and this will have a knock on effect for the rest of the market. >> you made an important point. you said customers may not want to buy diesel car anymore. a lot of people first of all are faithful when it comes to their diesel cars and it spells trouble for the other brands. they're just launching their own diesel models. is this the decline of the diesel cars and the return for

many of the gasoline cars specifically in europe? >> not in the short-term. i had a text from my boss this morning saying i drive the diesel car, don't kill off the diesel car. that's something that's not going to happen in the short-term. many have gone to it because of the environmental standards. each of the cities are starting to look at the regulations for diesel and starting to question it. so that is something that will effect it. >> quick mention of the share price. is that bargain hunters coming back? do you think that was it in terms of the share price declines? would you be a buyer here? >> if it started to level off it will be a wider industry thing than just vw. people will see that it bottomed out and start to buy it again. people will not just lose confidence on this one thing. it will come back and it's going to be a wider industry. >> i'll just say one quick thing

as well. consumers care about miles per gallon and not emissions per gallon. one quick final comment, if i may, the economy minister in germany said the entire reputation of the german car industry is at risk. how much will people will looking at german manufacturing and saying can we trust these guys? >> that's important. many sell on a premium. so i think if people are look at this now, is it really true engineering or is there some areas of deceit it's going to be a big question mark. not just over vw but over several vehicle manufacturers. so that will start to come back but in the short-term it's going to be something where the us. buyers will be looking at german manufacturers perhaps not in such a positive way. >> indeed and the whole european auto sector sold off

significantly over the last couple of days. industry principle at frost and sullivan. if you're looking for a positive spin on this story head over to our website to find out three reasons why shares are a buy. that's on cnbc.com. having sold off again for the third day they bounced in the last half an hour or so. they're now up about 1.5%. >> the pope kicked off his us. tour in a modest fiat 500. his car was dwarfed by the comparatively large security vehicles flanking it as he made his way to the vatican mission in washington. what happened to the pope mobile? i loved that thing. tweeted #blessed as the pope got in the car after touching down for his first visit to the country. >> he has to do that for the italian auto makers, right? >> i would guess. i don't know what the compliance issues are in the catholic

church. >> in the vatican. >> i don't know. but that's still within italy. >> the vatican is an independent area. >> that is true. >> i say it's fuel economy. >> yeah, the pope mobile was this big monsterous machine. probably ate up a lot of diesel. >> probably. i always viewed the pope mobile being an electric vehicle. >> with bullet proof glass. >> let's hope this new pope vehicle has bullet proof glass as well. >> i'm sure it does. security has been a big issue for this trip. anyway, lots to talk about. >> lots. still to come on the program today. we're just warming up folks. you got a bitter pill to swallow. find out how pharmaceutical company reacted to pressure from hillary clinton to lower the price of one of its drugs. we'll get you the story right after this. oh, look. we have a bunch of...

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

welcome back. european markets bounced back significantly in the last 45 minutes. we opened soft today following the weakness over the last couple of days in markets globally but particularly in europe as you can see we have bounced strongly.

we're now up 0.6%. we had pmis out for europe but those were largely mixed. volkswagen has been included in this rally so it's probably been lead by that and the auto sectors. let's look at the individual markets and you can see that the dax is up nicely by about 1%. that has suffered heavily following the volkswagen scandal. let's have a quick look at asian markets. the story there not so positive. pmi data out of china was softer than expected and that's effected the likes of shanghai and hong kong markets. they closed down over 2%. australia also down over 2%. susan. >> okay. yeah, let's take a look at why asian markets are feeling the pain today. this is after manufacturing pmi figures for china dropping to a scary 6.5 year low so the september figure dropped to a

read of 47 that missed estimates also declining from the final august read of 47.3. export orders shrinking since mid 2014 while new orders hit a four year low and when it comes to china data as long as things don't get worse the markets like it but in this case the number keeps getting uglier and uglier. >> let's take a look at that headline number. 47. that was the preliminary estimate so this came in below expectations. the market was looking for 47.5 and i would say it's not entirely expected. the market was very disappointed but we know that the growth is slowing in china. what was particularly troublesome is it seems to be coming from the external factors. the new export orders component was particularly dire. we're seeing weakness internally

and externally as well. here's the excuse for more deleveraging. shanghai composite ending down by more than 2%. a two year low for australia. so it's interesting that the fed arguably last week lit it once again. concerns over global growth. the data today seemed to under line that point. that's where we stand. back to you. >> thank you for that. let's now talk about total where shares are trading lower after energy regulators say they're investigating the company and two of the traders for rigging it's prices of south western natural gas as well. they will further reduce capital and operating expenditures due to the oil price. >> let's kick off with the announcement from the ceo of total this morning. as expected the company is going to increase it's cost reduction plan while at the same time

significantly reducing it's capital expenditure over the next few years. they're going to sharply reduce the capex from 23 to 24 billion euros this year. it will shrink from between 20 and 21 billion next year and the 17 to $19 billion in 2017 and that's to compare with $28 million in 2013 and total remains confident in production. the output would grow by 5% per year on average between 2014 and 2019 after that date it will grow by 2% per year. the announcement was made this morning. meanwhile, the company is facing an inquiry in the united states. the u.s. energy regulatory commission says that total put in place a scheme to manipulate

market prices between 2009 and 2012 at least at 38 locations. they are expected to have made some large economic trades in order to move the market price which would benefit to the company total said it fully cooperated with investigators. >> moving on, the ceo has told nbc he will lower the price of a pill at the center of a drug fire storl. hillary clinton sparked a sell off when she accused the sector of price fixing. it came to direct response to the fact that they raised the price of its drug from $13.50 to $750 overnight. that is a 5,000% increase.

they did say they would lower the price. they didn't say how much. hillary clinton has had quite a sway over this. >> i can't get over that. she's not even the democratic candidate. >> when you're the front runner you have a lot of influence. >> she can't influence policy yet. >> when you use the term price gouging everyone sees attention. you see that with the biotech stocks but this is a drug that prevents or helps people with infections with compromised immune systems like those suffering with hiv and aids. if you're raising the price, 5,000 times, isn't that price gouging. >> i'm not applauding what they have done at all. i'm just surprised at the fire storm clinton has managed to spark and the ceo is saying this is something that we've only

recently required the rights to and we're increasing the price. i'm just surprised at the level of traction it's managed to get from a tweet from someone not even in government and can't be for at least a year and possibly never. >> we talked about this yesterday. she struck a nerve with the american people. at the same time when you talk about her influence and her sway over the markets you to question some of that because she also criticized the keystone pipeline yesterday. there was no market reaction whatsoever. it was biotech specific. >> this also makes people stand up when it comes to the drug and the hmo industries in the u.s. because they have been consolidating, eta, humana, and the like and these companies have been able to charge those prices because of their market share. okay. let's take a look at some cash and hopefully you'll get to save that cash when buying drugs in the u.s. in the future if

hillary clinton has her way but let's talk about super yachts. well, you can buy one because it's up for sale at the monaco yacht show. phil had the chance to step on board the biggest boat at the fair. >> talk about size. at more than 280 feet it's the biggest and most expensive vessel for sale. with an outdoor pool, dining rooms, lounges, outdoor bars and a spa it all adds up. price tag, 175 million euros. >> it's the price to what it would cost today to replace her. less personally some of the individual personal supplies you have to do. you buy your own tenders and pay for your own linen, sheets, crystal. add another 10 million on. >> it's the most expensive super yacht per sale per gross tonnage. is it worth it? >> to a dollar based buyer who

in the majority of cases is where we're targeting the sale of this yacht. the middle east, far east, americas, russia, they're dollar based so this is now a cheaper boat than last year. >> if you can't afford the 175 million euro price tag for this super yacht but you wanted to try it you may be out of luck. over the summer they were chartering it out for $1 million a week but now unfortunately it's only up for sale. >> the most likely buyer for one of the most largest yachts on the seas will most likely be a gulf royal. >> the royals are going in trying to get the longest yacht at 160 or 170 meters but the junior royals, why not? he has reiterated the fact that future growth in super yacht, those longer than 25 meters is from the he emerging markets but

culturally it's a harder sale. >> the chinese don't buy boats and don't want to buy boats. and what they bring to the yacht market is a whole new way of looking at how boats can be even constructed and how they're laid out and designed. >> as the super rich battle it out for title of biggest boat, the sale of the solange has the potential of becoming whose boat is biggest. oh, look. we have a bunch of...

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

volkswagen ceo is deeply sorry but his future hangs in the balance as they hold an emergency meeting to tackle the fall out of the emission scandal. >> millions of people all over the world trust our brands, our cars and our technology. i am deeply sorry that we have broken this trust. >> european shares trading in the green now after a negative session in asia due to disappointing chinese manufacturing data. french factory growth surprising to the upside while germany slows fractionally. >> a bedrock of global stability. the chinese president urges stronger cooperation with the united states as he looks to reassure senior business leaders amid concerns over reform and cyber security. >> france's total slashes spending by $3 billion as lower

crude prices take their toll. the firm also faces allegations of natural gas price fixing. >> midweek in the markets here across europe and we have a bit of reprieve. we were close to one month lows. now bouncing back. ftse 100 up today and xetra dax down 22% from recent peaks. ftse mib up 1%. let's check in on fixed income. a lot of people have been getting into the safety of sovereign debt. we have bonds looking like this. the ten year u.s. treasury yield. just a little bit above 2% there. 14 points above it and dramatic moves in recent days. so your money with uncle sam for ten years. meantime we're holding steady

and just 61 basis points. as you see we have gone negative now. that's almost close to negative. 33 basis points and the gilt i would say that's probably a lot more money than you're getting in japan. >> absolutely. i love the way you put it. 214 to give your money to uncle sam. i like the terminology certainly. let's look at forex rates. despite quite a lot of volatility relatively muted so far for most of the main currency pairs. euro, sterling, and yen all broadly flat as you can see today. aussie dollar 0.704. it suffered off the back of the data today. commodities a little bit of a bounce in oil prices late yesterday and that's continuing a bit today up about a percent for wti. copper is suffering a bit off the back of the chinese pmi data. >> one of the worst days since

early january for copper pricing and this all stems from the slow down taking place in the chinese economy. and this as the chinese president, he is in the united states seeking to reassure the u.s. business community that the world's second largest economy is still a good place to invest. speaking in seattle he said that beijing will not manipulate it's currency to boost growth and also pledging to implemented strict reforms. >> when it comes to the toughest reforms only those with courage will carry the day. we have the resolve and the guts to take it forward. we'll stick to the direction and continue to introduce bold and result oriented measures concerning the market, investment in financing, pricing, opening up and people's livelihood. china will never close it's open door to the outside world.

it's a state policy of china. it's policies for investment will not change. nor will it's pledge to protect the legitimate rise in interest and to improve it's services for companies operating in china. >> cisco will unveil a new partnership later today. shares in frankfurt looking like this. off by 0.8%. >> meanwhile, the chinese president is scheduled to meet a string of tech leaders later on today. that includes tim cook. now cyber security concerns will be front and senter days after the app store was hit by a malware attack in china. an inside look at how hackers actually operate.

>> from his office, he tells us he heads a 5,000 person team known as red hackers. >> i decided to learn hacking skills after my computer was hacked. after i retired from the army i thought i could use my skills to continue to serve and love my country. i chose to be a red hacker. to be the personification of justice. china's hackers are a source of friction between washington and beijing. alleged cyberattacks from china angered the u.s. which blocked business deals for chinese companies and is considering sanctions on those suspected of engaging in commercial cyber theft. >> they work from all over the country but cluster in high-tech areas. this city is home to the biggest electronics market and is china's silicon valley. >> he denies his group targeted u.s. companies though they have attacked organizations in

regional rival japan. he showed me one way he hacks today into a local hospital. he finds an e-mail. based on the security question he guesses passwords. by the third try we're in the system in less than five minu s minutes. we're now able to gather more information. e-mail, phone numbers, facts he said. the hackers act on their own but occasionally they're called on by the government to help track those believed to be work against the state. the chinese government doesn't support hacking activities and we couldn't verify his claims. >> i independently have some cooperation with the chinese government but it's all off the record he says. the government normally asks me to follow the electronic footprint of different hackers, gather information on hackers and ultimately submit official reports. for the country, he vows to

protect. eunice yoon cnbc beijing. >> apple is taking steps to preinvented future attacks. the marketing chief told the chinese news site that apple will make it easier for chinese app developers to download it's tools for mobile apps. the company will list all tainted apps so customers can delete them. >> instagram is taking the social media world by storm. the popular app announced on tuesday it has hit the 400 million user mark. this coming after instagram hit the 300 mark. it posts a bigger user base than twitter which posts monthly active users. i'm still not on instagram so i'm clearly behind the curve. mark zuckerberg says he doesn't

think about a service being a real business until it gets 1 billion users. instagram, still not a real service. >> he just has 400 million more than a billion. 70% of their community lives outside of the u.s. of those 100 million that they just added half of that came from europe and asia. so it's about penetration into these external markets for them. >> but i like what gook is doing about having targeted separate apps with different stuff. they have facebook which is catch all and does everything. but they have what's app now just for messaging. instagram just for pictures and there are consumers out there. i left book but i do have instagram where you just want an app for one thing. i don't like logging into something and having endless notifications about various different things and instagram works really well for that. >> but it's still only a niche business and they need to cater to advertisers better to get to

that crucial mark because right now it's about showing off how great of a holiday you had or how great your meal was. that's always the perception that i have. >> if you were on instagram you would know. susan follows me. so there you go. the other thing i would mad is adverts on it. i've said this a lot of times in the past. twitter should offer a nonadvertising subscription model. >> you'd be happy to pay for that. >> i'm not saying they should force it on everyone. but they're crazy to not just try that. give people the option. you don't have to take it off. one pound a year or one pound a month and see how many people go for it because for me, certainly on instagram as well, an add vert feels the whole screen. on instagram i only follow my friends and my family and thus even getting a single advert is

annoying. >> making users pay for the service is a sticky road. >> not making them pay. you're giving them the option and i don't see why they haven't even tried it yet. the default option you don't pay but click this button and you have no adverts. >> so offer a service where you have to pay for nonadvertising. isn't that making you pay for social media. >> the default you download the app for free and you have no advertising. if you're someone like me and you get really annoyed you're being to pay more and they can workout a pricing that people are willing to pay for and that could lead to huge revenue. it's a thing to go for. >> i said it lots on here and usually people on twitter get really annoyed. but i'm saying just give it as an option. >> this will get a lot of instagrams. pope francis considers his six day tour of the united states after arriving in washington yesterday.

peter alexander filed this report. >> his holiness today made history. his first visit to the u. s. the pope welcomed by president obama and the first lady at base andrews. he's only done it once before. also showing special affection for school children. he then left in a fiat dwarfed by the american suvs carrying his secret service detail. he said he would not bring up the issue of the u.s. embargo on cuba saying this is a pastoral trip and not a political one. the pope calling for a tenderness. thousands lined the streets to greet francis as he made a surprise trip to celebrate mass at cuba's holiest signs.

even raul castro seemed impressed meeting with him for the third time. carrying his own briefcase as he boarded a flight to the u. s. awaiting him in washington a city known for tight security police everywhere closing streets, putting up barricades and everywhere excitement. >> there it s going by, and there's the pope. >> we're focussing on the message of love and mercy and the joy he brings to all of us here. >> francis will visit with the president at the white house tomorrow. on thursday becoming the first pope to address a joint member of congress. while here francis will also parade along the national mall and celebrate mass at the largest catholic church in the u.s. tonight he arrived at effectively the vatican's embassy located across the street from the vice president's mansion. a humble man of faith now at the center of american democracy. >> still to come, the eu agreed

on a plan to tackle the migrant crisis but the vote wasn't unanimous. so are they deepening? we'll cross over to hadley standing by in brussels for the latest on the ground.

the world's biggest

endowment fund warned that some markets are getting to look frothy in their view. the harvard management company is proceeding with caution in several areas of its portfolio. the elite university posted a 5.8% return in 2015 with a record amount in their fund of $37.6 billion. however the growth rate is still well below the return of several of harvard's rivals. that include princeton and yale which have yet to release their returns this year but some say they're in double digits and since you to have money to make money, you have $37 billion shouldn't you be posting returns better than 5%? half the rate. >> 5.8% this year, i'd say thanks very much. >> for the fiscal year. >> it is pretty good compared to mit which posted 13% returns. >> i don't mind. i'd take 5.8. particularly compound if you have that every year over the long-term but even in the middle of the bull market in '10, '11,

'12 i'd say thank you very much. but i'd definitely take that. >> i wonder what they call frothy. i don't know how heavily invested harvard endowment is in that sector but we're seeing pes in line with historic average. that's not expensive. that's not cheap. i wonder what they're talking about. >> they're looking for people with expertise in short selling now. they're thinking how do i benefit. >> 15% last year. 15 is pretty good. >> absolutely. i'd take more but i wouldn't be complaining about it but the thing to bear in mind as well, they don't pick stocks and the like. they're hugely diversified funds and once it all filters down, essentially they have market exposure with some kind of

exception. clearly you just have too much aum to be able to be like this is a nice stock. let's buy that. you end up owning half the company. it's tricky to really go into what this means specifically for markets. but regardless of it, the fact that they're saying markets are frothy clearly is the case and when you're toward the end of a bull market five or six years in you might still have a leg up but it's going to be with much more volatility which we have seen this year already. >> and if you account for the risks going off. and fed rate hike and they warned about china. but if you take a look at earnings and gdp growth not looking to frothy. >> you're saying it's not volatile. >> it doesn't look too expensive or too cheapment it's somewhere in line with historical average. that's all i'm saying. to i want to know what harvard means about frothy. what portfolios they're looking at. let's move on the european union

pushed through an agreement to relocate 120,000 asylum seekers across 22 european countries. they voted against the plans. these nations may have to welcome many migrants against their will. hadley gamble is in brussels. that was a very controversial decision because usually the eu works by consensus rule. >> yes, indeed it was. so now what we're talking about is 120,000 refugees. they'll be redistributed and do this according to the size of the economies and according to the population. there's going to be a financial penalty if they don't comply and we're talking about countries that push back against these eu leaders, particularly, hungary, romania, the czech republic and slovakians. many are forced to go along with the plan and later today we'll hear more about that. i got the chance to catch up

with the sweetest minister for justice and migration overnight. take a listen at what he had to say. >> i'm very happy with this. it's what i've been working for almost a year now. the simple principle that europe needs to take a joint effort here and to share the responsibility and on principles of solidarity. you're asking about when will things start to move, well, the 40,000 that we agreed upon this summer, that is already on the go. we decide d form-- decided form on that last week. well, as fast as we can i hope. >> are you embarrassed that the eu had to override countries like hungary or the czech republic? >> i'm not embarrassed.

this is a very big union with 28 members states with different governments with different political views and given that i'm still happy that we could reach such a big majority. it was just four countries outside the majority in the end but a very huge majority said yes. >> so no long-term damage to the eu. that of course decides now deal with the situation. i think that we all have experiences when the european union decides things that we

don't like. i have such experiences before but then we have to just accept that and try to do the best of the situation and i expect that these will do the same. >> so the swedish minister there basically telling me that these guys signed in to be in the eu and now they'll have to take the good with the bad and of course what they discussed last night, this agreement on 120,000 refugees is a blueprint for everyone else going forward. hundreds of thousands of people still flooding across eu's very poris borders and what to do with those that aren't within the 120,000 they agreed upon yesterday. >> thank you for that. another issue of course is what russia is doing in syria and fresh satellite images that

appear to show that they're expanding their military presence in syria with two new bases near the mediterranean coast. they could be getting ready to take part in the syrian war. >> we have seen quite a turn around today. we're up by 1.4%. this is as the dax lost almost 6% over the last 7 trading days and the big heavy weight that dragged us lower that was volkswagen has a 25% market cap waiting, 35% eps contribution to the dax and i want to show you volkswagen shares rebound by 5.3%. probably a lot of bargain hunters coming back in. this is after the market cap. this stock has fallen 15% in two days or 26 billion euros as a result of that big emission scandal. so what do you think guys? is this the time to go back in? >> well, it's definitely an

issue to think about and it's not just volkswagen to think about because we've had the drug maki makers today and we have been talking about that and lots of companies under fire and when companies are behaving badly is it a buy signal for the stock? get in touch with us on that he bait. worldwide@cnbc.com. let's talk about the volkswagen one first. clearly people are using it as a moment to buy. i'd add to the bargain the likes of not just the other german auto makers but the french auto makers because we had very clear messages that these guys are not involved in the same kind of scandal but they have been sold off quite significantly too. so i wonder whether that's the easier way to get exposure to the scandal because clearly with volkswagen there are countless unknowns and we don't know how much this is going to be costing them. >> this might be a bottomless pit and that's why i think it would be very premature to go

in. we don't know the size anymore. they set back 6.5 billion euros for the third quarter alone but again i think this is maybe a little similar to what we saw happening with bp for example. with bp, what was the final tally for the fine? it was north of 20 billion dollars and that really materialized over a number of years. five years or so. that wasn't clear in the first couple of days. i tweeted this question out on twitter this morning, are bad companies, are they a buy or sell. well, he has written in and says take bp, 290 p in 2010 and six months later above 500 p, in that case it did work. >> well, i would argue also if we're staying with the automotive theme, about the air bags that resulted in the largest recall in automotive history. they're down 9%. that stock has crumbled in the past year since.

>> there's another thing to think about add we were talking about yesterday with vobllkswag, '08, '09 it had a similar massive sell off. >> the short squeeze. >> exactly. but we've seen volkswagen in the past, really overreact in the short-term. >> that's true and there's a lot of hedge fund interest in that and going into this big scandal there's a lot of long positions in volkswagen so you always have to look at positioning going into any of these scandals so that's an important factor too. >> a bit of a bounce back today we've seen in volkswagen up about 4.5% following losing about 30 billion of its market cap over the first two days. so get in touch with us at cnbcwex. do you think when companies are behaving badly it creates buying opportunities. >> sad news with baseball legend and ambassador for the sport yogi berra dying at the age of

90. he played his entire career for the new york yankees where he won three mvps, was elected to 15 consecutive all star teams and is one of the pest catchers of all time. he was elected to the baseball hall of fame in 1972. he was also known for such famous quotes as it ain't over until it's over and love is the most important thing in the world but baseball, it's pretty good too. the world will miss yogi berra. we'll go to break here, coming up in the next hour china jitters are weighing on markets today. stay tuned for the analysis that dragged down asian forces.

welcome to worldwide exchange. i'm susan lee. >> i'm wilfred frost. here are your headlines from around the world. >> vw ceo is deeply, deeply sorry but his future hangs in the balance as the board holds an emergency meeting to tackle the fall out from the emissions scandal. >> millions of people all over the world trust our brands. our cars and our technology. i'm deeply sorry that we have broken this trust. >> no end in sight for china's economic slow down. pmi data for september surprises to the down side sending shares in asia sharp