a very warm welcome to worldwide exchange. >> these are your headlines from around the world. >> don't let the party go on too long warns the fed's jon williams as he says today's jobs data could help tip the balance toward a rate hike at the october meeting. >> thoughts and prayers are not enough. president obama pleads with politicians to tackle america's gun laws after another fatal shooting at a college in oregon. >> somehow this has become routine. the reporting is routine. my response here at this podium

ends up being routine. we have become numb to this. >> experian is hit by a data breach. sending shares lower in london. >> lift off. they get a bullish note while klm takes off on news of significant job cuts. don't let the party go on too long so says san francisco fed president jon williams of the easy policy they're due to start reigning in. he said policy makers did not need much more data to make a decision and said if today's jobs growth was above 150,000, that would be, quote, good. >> let's tell you what we're

expecting. what clues will today's non-funds payroll report say, forecasts say 200,000 jobs were added in the month of september. some are hoping for signs of a rebound after employment growth in august came in at the slowest rate in five months. >> it comes on the back of a solid adp report. private employers added the strongest reading since june. they lead the way taking on 188,000 more employees. construction hiring is also the best it's been since february 2006 but the big drag was the manufacturing sector shedding 15,000 jobs. analysts pointing to the stronger dollar and weaker international economies for the strongest reading since 2010 in manufacturing. lots of focus on this jobs number but i don't think it matters nil.

they already decided they're going to go in december and each months separate print is irrelevant. it's the trend we had for the last year or so. if it's 100,000 or 200,000 today, nonetheless, it's adding jobs to a very strong average. but i don't think the individual numbers matters. >> what are they looking at? global developments and i would agree with you. i don't think it matters when we get a 250 number, 203 number today as what we're expecting. i don't think it matters whether we get a 5.1 or 5.3% print but the jobs market is improving. what really matters is what global markets and the global economies do over the next couple of weeks or so. >> and the bottom line for me is they don't want to hike too early and have to backtrack and in september the data is not going to be largely different into december unless something crazy happens and are they going to move at a time when they're going to have to regret it

because of global factors. it's not just global growth concerns. it's what's happening potentially to the u. s. dollar via other central banks and the two we focus on are the ecb and japan but the elephant in the room is the pboc and you get this stronger dollar off the back of it and do they want to be hiking once the other guys are loosening. i think that's what they're watching right now. or 0.1% here or there. >> one caveat though, maybe the average wages picture will be a decider for the fed after all because that feeds into cpi. that feeds into inflation. we're expecting a growth number of around 2.4% year on year and that could be the fastest growth rate since 2009. maybe that will be a positive and pretty hawkish surprise after all. maybe we're wrong. >> maybe we are wrong but still important, particularly if it's a surprise. but for me the fed wants to move

in december if it can and that's based on international factors. >> you brought up emerging markets. they'll serve a net outflow of capital in 2015 for the first time in almost 30 years. this according to the institute of international finance which blamed china's economic slow down and uncertainty around the next move. the economic advisor said emerging market troubles will drag on global growth. take a listen. >> look at sectors that have been completely unhinged. emerging markets have been completely unhinged. they're broken in terms of markets. >> joining us now is steve jacobs. vice chairman of bsi. great to have you with us. let's kick off with the emerging markets view. of course you're a significant investment banker in emerging markets. leading up over the last year to a possible first fed rate hike, it's going to be very negative

for em but we heard sentiment coming out of various central bankers. they want to get over the hump. get the first one out of the way. is that the kind of consensus for you but we need to end the uncertainty? >> i think so. there's been so must have talk and echoing your comments you just made most of this is priced in now. people understand the fed may expect it to rise last month. it may raise in december or delay until next year but they're going to raise. people see the expectation of future raises. majority of that is baked in. whether it's december or next year. not too much of a difference. apart from the signal that they're sending around the world to what they believe how we call, how tepid the growth is on the global economy so i agree with you. i think it would be better to start the rate rises, probably not rate hikes. i think they'll be very slow and gradual and then we can start to put this behind us and start to

focus on the major issues. >> what is your expectations? when do you expect to see that? >> it could be december now. i think as we rolled into the last decision the markets moved against the fed and they reacted to it and i think they realized maybe they have to put their foot down now and say okay december will raise. like i said it's largely priced in so people will move on quickly. >> you have a good view of how emerging markets are doing and how commodity based countries are doing. you're seeing very slow growth. you're seeing inflationary pressures. do you think that despite all those facts though sentiment toward emerging markets is way too bearish? it's not justified? >> we have one other angle. we have a very big global commodities business based here in london. so we see the global commodity side and input provider in

practices s brazil and latin america and it's overoptimistic especially on brazil and other commodity-related producers. mow you're seeing the opposite. it's taken it's cause. the slow down has happened. the general feeling is its overshooting now and we're into that kind of phase of okay we may have gone a bit too far and now we can pull back and maybe we start to do the end of some of this. >> is glencore an example of that overshooting? >> personally, i think it is. when you look at the balance sheet and the ammunition that glencore has, especially on the marginal activity to cut marginal activity which is capex heavy they have a lot more tools than people give them credit for. >> you mention you're still expanding your commodities business. you're buying up teams in asia and that's fascinating. where are you doing it at this time? >> history tends to be slightly

contra contrary. we made a big move in commodities three years ago. we have 600 or 700 people around the world. >> it was bad timing, wasn't it? >> excellent timing. we made great money from it. we built a bigger franchise so there was almost a vacuum in that space and as glencore became less of a trade and more of a utility we were able to pick up very good people and very experienced people to trade these markets and we have done well out of it. >> if you're still looking to expand in that area would you look into buying noble group? is that looking incredibly cheap right now? >> that's more than a million dollar question. we don't like buying entire entities. you never know quite what is there. knee jerk reactions to buying someone like a noble group or anyone else in that space would be the wrong thing to do. i agree that it looks cheap but it probably looks cheap for a reason in that case.

>> great stuff. we're delighted you're sticking with us and we'll explore the other areas you're expanding into. we'll be back in a few minutes time. >> authorities in oregon has identified the gunman in thursday's shooting at a community college as 26-year-old chris harper mercer. one survivor said he demanded his victims state their religion. president obama addressed the nation thursday evening say thoughting and prayers are not enough as the country responds to another mass shooting. >> somehow this has become routine. the reporting is routine. my response here at this podium ends up being routine. we have become numb to this. >> mainly clear in europe as you can see. just spain in the red there. neighboring portugal at 1.4%. we'll be out there to join julia for preview of the elections later in the show and we're up

1% for the ftse 100. the rest are up in and around 1%. yesterday we kicked off october in positive fashion in the morning but lost steam by the afternoon and down 0.4% for the stoxx 600. finishing the week on a positive note. sri let's have an update on markets in asia. >> yeah. it's all about the payrolls. so we're in a holding pattern when you look at asia. we wrapped up the trading day today at the end of the week. so all eyes on the u.s. jobs report. what it means for the fed. what it means for the u.s. dollar as well. not a great deal of conviction. also bear in mind that the chinese markets, the mainland markets, shanghai not seeing any quotes for them because we're closed today and a large part of next week. liquidity, traded volumes that much more thinner on the ground. i wanted to bring you back to japan and talk about the boj next week because some believe

we may see an expansion of asset purchases. credit suisse is expecting the status quo but they're likely to downgrade the growth forecast rather materially is how they characterize it at the next quarterly review on october 30th. so additional easing not forth coming next week necessarily but maybe at the end of october. so the u.s. jobs report, the next key risk event, watching that very closely. very stark warning from the chief asia economist over at deutsche. he says that a sell off in em assets could well be the first of a three round event and confirms something that i have been saying for quite sometime. that malaysia is in the eye of the storm here. fragility there is striking given reserve adequacy measures and also the political concerns.

so will be interesting to see and the higher rate environment how these sovereigns like malaysia and indonesia are being hit by the terms of trade shock on the commodities side, how they are coping. so a degree in stability in the markets over here. solid session for the hang seng but we're in a holding pattern until we get clarity on what it means for the fed and the dollar. >> we're going to go for a quick break. but here's what's coming up on the show. the portuguese prepare to face the polls but what will the vote mean for business. and it's that time of the month again. economists are forecasting payrolls to rise by 200,000. but can you nail the number? and thinking about holidaying in the bahamas? think again. we'll be back in two.

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credit reporting agency experian says hackers got information from about 15 million mobile customers.

they use it for credit checks. it may effect customers that applied for services. let's have a look at share price action and it's off around 5% near the bottom of the ftse 100. >> lufthansa is in the green rating the stock a buy. it reflects strong demand and fuel costs for the airline adding that they looked in a strong position with recent talks with pilot unions. >> i'm looking at comments from the main pilot's union. he's ready to make new proposals to management. that's all i've got right now. as soon as we've got more information on that we'll bring you up to speed on that. this is as they will announce major job cuts as part of the turn around talks with the pilot unions failed to reach an

agreement this week so there may be a little bit of emovement on that front. >> it's like a poker game between the management of air france and the main unit which accepted a 3% rise in product activity where the management was asking for 17% so there was no deal at the end of september and the management of air france made clear for a long time that without an agreement it would implement an alternative plan based on a 10% reduction. this will include the withdrawal of 10 long haul flights -- 10 large aircrafts considering that each plane generates a 20 pilot position. 80 cabin crew and 250 jobs on the ground. so we're potentially talking thousands of job cuts at air france klm. they probably believed management would not implemented this plan but after the

announcement this morning they're ready to come back to the negotiations and perhaps make another offer. in the meantime ahead of the announcement due on monday they called for strike action for monday, fifth of october. back to you. >> stefen, thank you very much for that. now u.s. auto sales jumped to a 10 year high in september but the diesel scandal at vw looms over future sales. >> call it a sizzling september in the show room. u.s. auto sales roared to their strongest monthly sales pace since july of 2005. most of the major auto makers posted double digit gains with some like general motors doing far better than expected. what drove those strong numbers? labor day which is traditionally one of the busiest weekends of the year for auto dealers save september sales an early pop. meanwhile, trucks and suvs remain red hot thanks to low gas

prices and the combination of strong consumer confidence and low interest rates is convincing millions this is the time to buy a new vehicle. even volkswagen which has been rocked by the diesel emission scandal pulled out a slight gain in sales last month. impressive since massive negative publicity and an order not to sell clean diesel models left many vw dealers struggling to bring in customers. now heading into the 4th quarter the auto industry is on pace to have it's best year since 2000. >> and after a huge september some are talking about the possibility of 2015 u.s. auto sales climbing to an all time high of greater than 17.4 million vehicles. that's the story from here in the u.s., back to you. >> volkswagen's u.s.ceo will face questions at a hearing

thursday. they'll also present their findings as the auto makers emission scandal intensifies. nancy joins us in the studio. this is intense grilling, isn't it? >> expected to be very intense grilling. just a week ago we were talking he could be dismissed but he has stayed in the position. but now his job turns to dealing with the regulators trying to explain exactly what went wrong here. how long ago they made the decision to implemented the devices and considering that the epa is in attendance as well we'll hear from their side and they did release a press statement last week saying these devices, we know they were deep within the engine so there's no case that can be made here that it's an accident. so we'll see if we can get information on who will be held responsible in the u.s. as well. we did get an update from credit

suisse and what the actual costs look like. what are we looking like? we know they set aside 6.5 billion euros to cover any lawsuits and the whole refit of the diesel powered engines but people saying they're not going to cut it. due to an uncertainty they're putting a range at 28 to $78 billion. >> what about the impact on the u.s.? phil was talking about really strong september auto sales and to the u.s. auto makers which did really well, vw stagnated. was that part of the impact of the diesel he emission scandal or fully seen in october? >> i think we have to wait for october. this really broke september 20th and then the order came that they couldn't sell the diesel powered cars. but the fact that they still saw a sales increase less than 1% when you saw them up double digit percentages. some ways they have already been

having trouble in the u.s. market. again it helps push their presence there and now that is all in doubt. we saw german passenger figures coming up 5 to 6% increase this month. we'll have to wait for october-november to see what the impact is. >> thank you for that. they completed the $1.3 billion purchase of the swiss private bank bsi group last month. still with us is vice chairman of bsi. when i look at switzerland the allure is long gone. we have very high costs given the fact that the swiss franc is so strong and margin pressure. why do you want to be in switzerland? >> well when you put it like that. no it's simple. a huge change is going on in the market at the moment. you know the market very well, the whole kind of idea of the confidential swiss number bank account loved by james bond movies and spy movies is out the

window. next year you have the open exchange of information. it's a new landscape. it's a new level playing field and we strongly believe that that plays to our strengths. so you're moving from secrecy to service. confidentiality to concontent. so those that can provide good advice, strong asset allocation expertise to clienlts ats are g to win. we're a partnership. we put our money where our mouth is and invest along side clients. and we do that and clients expect that and for someone like us with that culture and business model this is a really exciting opportunity when you combine it with bsi. >> i get that there's a changing culture in the swiss private banks and consolidation is happening but you guys are predominantly emerging market bank because it seems like an odd fit.

>> it's a complimentary fit. i had the pleasure of living there for five years and working there for ten. among other people. we also have had to focus on providing high quality investment content to our client base. that's the only way you compete and it's really bringing that culture and that mind set and it is a mind set to this changing world. i think it does put us -- it gives us the chance to be at the forefront of that change. someone that's been in some of the traditional banks, especially the swiss banks and they have been there for -- not personally but the banks have been there for 50 or 100 years they have focused on not solely the secrecy and confidentiality but it's a big part of what they do. you can't just calibrate overnight. but we can be at the forefront there. >> is it because you want to move out of brazil? we see the slow growth numbers.

we see rising inflation and corruption. we're seeing so much political drama. >> i get asked that question believe it or not and we look to the swiss market and global wealth management market. we're really talking about the global wealth management market. it took us a bit of time to find the right deal and the right transaction so we would have done this deal regardless of whether brazil was firing or misfiring and it would have had the consequence of diversifying our revenue flow. now today the combined group. more than half our people are outside of brazil. more than half our revenues are so the timing looks like we're doing it as a knee jerk reaction to brazil. it's not because of that. it's a good strategic decision anyway but it helps when brazil is misfiring. >> all right. so sounds like you're pretty bearish on brazil still. >> i think that's going to change very quickly though. i think we're coming to -- your earlier comment, i think we're coming toward the floor now.

>> thank you for your time. appreciate it. steve jacobs. vice chairman of bsi. >> right. let's switch focus and bring you to our viewer exchange today. snapchat will launch a new add format on halloween letting advertisers insert their brands on users as selfies. the financial times says the popular messaging app will sell sponsored lenses costing up to $750,000 or $450,000 for an off peak day. so we're asking you today has snapchat cracked the all important social media advertisiadvertis advertising conundrum? i like this idea. it's clever. >> why is it clever? i think it will backfire. because the teenagers, they don't want to be associated with brands. if they don't have a say on who

is in their selfie. >> they still have a say. they can choose to do a normal one or bring this in. it's not like they put a nike tick in front of them. it's being part of a james bond movie or disney theme in the background. or your celebrating scoring a winning goal for arsenal. but i think it's a good way of doing it because it's bringing in the brand in the background but through the choice of the consumer. it's not getting sponsors that you don choose to see. we vn se we haven't seen how it will work. >> if it's not forced. if you can decide for yourself what ad you want in the background it might be a good idea but these teenagers they're so fickle. >> these teenagers, you sound so old. >> i am old. >> these teenagers. we have to leave it there and go to break in just a minute but do get in touch with us on our

viewer exchange @cnbcwex. also we cross live to get the view on sunday's election. we're back in a couple of minutes here on worldwide exchange.

don't let the party go on too long warns the fed's jon

williams as he says today's jobs data could help tip the balance toward a rate hike at the october meeting. >> thoughts and prayers are not enough. president obama pleads with politicians to tackle america's gun laws after another fatal shooting at a college in oregon. >> somehow this has become routine. the reporting is routine. my response here at this podium ends up being routine. we have become numb to this. >> experian is hit by a data breach that could effect 50 million customers that signed up for their service. >> the stock gets a boost from a bullish note while they also take off on news of significant job cuts. >> all right. let's bring you some u.k.

september construction pmi. it's coming at 59.9. it was last month at 57.3. expected to be 57.5. a healthy jump. sterling up off the back of that. >> and a little bit of news on volkswagen. they opened a preliminary inquirely in inquiry into volkswagen for aggravated fraud. no good news for vw this morning. >> that was a good sting. can we have that again. >> can we have it again. it's coming again. that was nice. request didn't we have that for the u.k. election. it was u.k. votes. let's have it again.

that was great. we can't cover the story enough today because every time we'll get to hear that. but let's get to the story now. portuguese prime minister looks on track to gain re-election this weekend as voters prepare to head to the polls at the end of a campaign which has been closely watched across the whole of the euro zone. julia is on the beat for us. >> thanks so much wilfred. this is something that was unthinkable even just six months ago. the idea that an austerity government he would be able to get back in power but what we have seen is the center left party losing ground in the polls. i think syriza had something to do with that as well. the kick back they got hurting this idea that some kind of difference could make a change here. the center right party coming back from behind and i think it's one of the newspapers showing you even in just the

last month the gains we have seen from the center right. the incumbent coalition versus the socialists on the left. even talking about the possibility of getting a majority now for that central right opposition. we have to see what they come up with over the weekend. 15 to 25% voters still undecided as well. this could be an interesting come out when we get the election results late on on thursday night. if we don't manage to get a majority, minority governments struggled in the past and what will that mean for reforms going forward. but what does the business community think? does this actually matter and what do they need to see from the next government. i'm joined by the chairman, thank you for joining us. does this election result really matter? we have a socialist leader that's the former mayor, also

pro-business, pro-europe, do you care? >> i think there will be no measure change in policy. the socialist or the actual government because they are all pro-european and i think will continue in the same type of policies. >> what happens if we get a minori minority government though? more reforms are needed and given what we've seen in the past with the constitutional court here challenges can come at unfortunate moments. >> you know, the bulls lately have not been very accurate so we can have all kinds of surprises on sunday night. we'll have to wait until sunday night and see what really happens but i think in the end people recognize the need for some reform and so kind of agreement will be reached. >> one of the key differences for the business community is the incumbent coalition government are talking about lowering tax rates. 17% by 2020. they said if we get in it's not

happening. i mean, this is essential to send a positive message about investment and opportunity in this country. >> i totally agree with you. i think it's very important to lower the corporate rate. we need to attract more investment and that's important to attract business. the socialists agreed to go to 17%. they actually now say, i think it's a big mistake for the business community. >> talking about the changes we've seen as a result of the bailout deal and the reforms that have been imposed, how much more easy is it to do business in portugal? have things dramatically changed in terms of the way business is approached as well and the perspective as an international investor looking at portugal. is it more open? >> it's more open. it's more simple now. there's a lot of internet things

you can do and the administration is more friendly. even the tax authorities although much more efficient than before and collecting much more taxes than before. it's easy to talk to them and it's an attractive environment. >> this is something we see in many european countries. greece the classic example of taxes not being paid for businesses. originally it was very sporadic but it's all one agency now. has this made a crucial difference as well to government finances? because there's still a big deficit to work down. >> i think that's a big, big difference because we manage to lower cost in the government side so much but the machine is working very well and there's less informal economy. i think they have managed to bring more people paying more taxes and that has improved a

lot. >> for all the gains that we've seen in the last three to four years, the reforl efforts, there's a lot more work to be done. the labor market and the pension system is a huge unsustainable burden at this stage but there's also 130% debt to gdp. we have a deficit of over 7% at this stage. i just wonder when i look at a 2.3% bond yield for portugal whether there's too much optimism in the price. >> we cannot understand the situation in portugal without understanding what the bce is doing. of course we are being benefit for that. i'm not too concerned with the deficit because that's one off. i think the most important thing is the government still believes that the fiscal deficit can be around 3% and that's a measured accomplishment when four years ago we had the 10% fiscal

deficit. >> thank you very much. making a great point. no matter who wins the election both saying the fiscal consolidation has to continue. that's why voters are having a struggle deciding which way to go. back to you. >> thank you for that. elsewhere, spain's prime minister announced the country's general election will be held on december 20th. it's likely to feature heavily on the campaign after gains from pro-independence parties. the popular party is ahead in the polls but his job could be at risk if they choose to join up in coalition. >> i'm just looking at the latest report in the financial times about the diesel scandal. the epa is expanding the diesel emissions probe to other brands in the u.s. that's according to the financial tiles. just glancing at that report, more than 2 dozen diesel car models made by bmw, chrysler and

mercedes benz are under scrutiny for potential rigging of emissions tests. volkswagen shares down by 3% but it's very interesting that the epa sees the need to expand that probe to other car brands. moving on, despite outperforming the other major u. s. indices the nasdaq posted it's first quarter? >> historically tech investors have had good news in the final quarter of the year. sam stovall of s&p capital iq says since 1990 the tech sector climbed an average of nearly 7% in q-4 and the sector is up about 80% of the time. now we know tech just dropped about 4% in the 3rd quarter but that should not worry investors. since 1995, the tech sector has climbed an average of about 5% in q-4 after afafalling in q-3

rose more than 70% of the time. now as for s&p's top tech picks right now they include alliance data system. a company that processes data for marketers. symantec trading at a big discount and xerox where analysts think the company could split in two creating value for investors. you might think that sam stovall would be overweight tech as a sector but he isn't. he says he's neutral because the sector isn't cheap right now. it's trading at about 16 times earnings or roughly in line with the broad market. for cnbc, i'm josh lipton. >> right. we're going to take a quick break here on worldwide exchange. but still to come, russian air strikes in syria continue. we bring you the latest on the developing story straight after the break. we're back in two.

welcome back. a spokesman for the u.s. government says russia's air strikes are indiscriminate. speaking at the united nations mr. lavrov insists they are targeted at terrorist groups. >> if it looks like a terrorist,

acts like a terrorist, fights like a terrorist, it's a terrorist, right? i would recall that we always were saying that we're going to fight isil and other terrorist groups. this is the same position which the americans are taking. the representatives of the coalition command have always been saying that their targets are isil and other terrorist groups. this is basically our position as well. we see eye to eye on the coalition with this one. >> iran sent hundreds of proops to support president assad's regime. teheran is said to deploy the troops as part of a major ground offensive. >> russia's air strikes in syria are set to dominate talks and coalition partners are likely to raise concerns that russia's involvement in syria is focused

on supporting the regime rather than defeating islamic state terrorists. joining us now is the executive director on russia and syria at the henry jackson society. the big news overnight is iran also jumping into the fray and entering the equation. it wouldn't be a surprise to many people here. but still it complicates things further. how do we make sure that all the different parties don't collide mid-air and i mean literally? >> that's a good question. first it's getting to the stage where almost the only people not involved are us in syria right now. secondly the idea of coordination is increasingly difficult. it's okay when you have one or two powers coordinating but now you have the russians, the coalition forces targeting isil. you have assad's forces. how are going to coordinate these things. we run a serious risk of a terrible accident happening where one allied nation takes out another engaged in

terrorist -- fighting terrorist activities. >> now we know mr. putin is not a man that we can trust on his word but we just saw that clip from lavrov's press conference. he came across as genuine in that. that these were targeting isil camps and the like. is that just a flat out eye? are we sure that this is russia pulling the rag over the eyes of the best. >> almost everything that comes out of the kremlin is a lie. it doesn't disclose that he's lying and hiding what they're doing. it's not fighting isil but fighting everyone they consider opposed to the assad regime. >> if he is lying, can we really here have an argument? because this is different from ukraine. ukraine a sovereign area where they welcomed involvement of the

west, peace keeping forces and the like. syria is very different and our involvement already is not welcomed by assad where as he has welcomed russian involvement. so do we have an argument? >> we do. it's called responsibility to protect. it's a un doctrine in place for sometime. when a state is incapable of stopping genocide or acting in genocide on the scale assad is doing. we can intervene. so far we haven't done on a particularly high scale level. whether we're going to change that or not is a big level. are we going to let putin and iran to set the tone or are we going to say assad has to go as well as isil. we're going to make a stand now and stop more chaos and civil wr -- civilians dying. >> and you say we'll risk a bigger blow back from jihadists.

why? >> if you look at the history of how they recruit, if you look at the propaganda they do, one of the prime arguments has always been the west does not care about muslim lives. the west wants to see the muslim world decimated and it will do nothing to help save muslims. now if the west does in this case not help, the civilians of syria, either against isil or assad that killed ten times what isil has killed they have a great recruiting tool going forward. it's only if we actively get engaged and try to bring some peace to syria that he we pull that card from them. otherwise you'll see tens or hundreds more of western muslim kids going to fight on behalf of isil and perhaps fighting here against us. >> the russian defense ministry says air strikes in syria destroyed islamic state command point in training camp over the last couple of days. that's the latest flash out of the russian defense ministry.

we can't verify that. i want to bring it back to the direct threat that britain and the united states face. is it now far more significant than the threat that was faced, i'm talking about domestically by al qaeda a decade ago? >> it's different. al qaeda at the time was a centralized organization. they were looking to plan attacks across the west and succeeded in a number of cases. we brought out a report that says that isis terrorism is different. what they're doing is inspiring terrorist activities as opposed to directly controlling them. in one way it's better and one way it's worse. it's better because there isn't the command center that can give the training and put things through in an organized fashion but it's worse because we have less ability to intercept the threats and stop them because we cannot tell necessarily where the next one is going to come from. i fear that we'll see increasing numbers of terrorist threats coming our way and we may see

things happen because we can't stop everybody. >> russia repeatedly said we're not doing that. we're not going to plunge ourselves into that conflict. how long until russia also embarks on a ground offensive? >> that will depend on howell their puppet does with the support he's getting. remember he's been losing ground for the last several years. he has been losing men. the need for this offensive has been becauses assad is on his last leg. if he can pull it back the proxy can do it. if he continues to lose ground or rebels regroup or more rebels come on side because of what's happening they're going to have to intervene. >> thank you for your time. really interesting insights. executive director on russia and syria at the henry jackson society. >> joaquin is moving slowly northwest ward as it slams the eastern section of the bahamas. it's now a category 4 storm but

forecasters say the hurricane is expected to begin weakening on saturday. there's no immediate reports of any causalities. it's expected to carve a path that will take it near the u.s. east coast but it's not expected to make rainfall there. >> all the rain caused a large drain to wash out from under this road in south carolina. a man on location when it happened was sweat away and luckily later rescued. the flooding has been deadly. a woman died when her car was overcome by flood water at a separate scene. >> intelligent energy has signed an investment deal worth 1.2 billion pounds to provide clean energy in india. this after reporting revenue of 27 million pounds for the first half of the year. the company expects losses to be lower in the second half. shares are down about 30% so far this year. they're up 1.9% in today's trade. joining us now is the ceo of intelligent energy. henry, good morning to you. thank you for joining us.

before we get on to the investment made into india, let's just broaden the first couple of comments. the great challenge of clean energy is storing it and not actually making it. is that an area you're heavily focused on. >> essentially it's already a very big market and one of the cheapest ways to store energy at scale. we're not talking about the megawatt or gigawatt. but we're living in a world with lots of zeros behind one and for that you need to have storage at scale and that's best and least cost done with hydrogen. >> but we're still a long way of making that truly effective. >> it's already happening. if you look in germany and denmark, the countries which have most renewable, they already utilize large devices which create hydrogen out of water which is from electricity,

renewable electricity and mix it within the existing natural gas grade and that's already happening in germany and other countries including actually california. that allows you to store a vast amount of energy in the existing oil and gas asset which is a great way for both oil and gas and renewable to make more money. >> but still hydrogen is so much more expensive just because natural gas is more expensive here and then the infrastructure problem. how do you solve that? >> you start by places where you don't need to have an incentive of any sort. so all of our business and all our divisions are based on no incentive requires to grow. whether it's in automotive where we work for maybe 25% or where we genuinely replace diesels in india and it's cheaper than the existing diesel. >> what is the incentive if oil prices are so low where they are right now? that makes your business less

attractive doesn't it? >> no, because this is about efficiency. if you live in an environment where you have a lot of particles coming out of a diesel and where you're actually consuming fuel which in particular india has very little petroleum resources of its own, anything that saves fuel which is more efficient than today's diesel engine is good news. and india has a program called get out of diesel. that's what we're doing. >> and is it possible that gm could jump ahead of these markets? in a decade could we be look at the balance being different? >> absolutely. there's a very good reason for that. the more industrialized economies have very very strong centralized generation. so the grid is there. if you go to fast developing countries you can actually leapfrog the infrastructure and

if you look at all the analysts, i recall about a year ago saying the centralized generation is the dinosaur of today. it's exactly what we do. our three divisions are in power. whether on wheels, in the middle of somewhere in india. villages and cell towers or in our consumer electronics division as well. >> thank you for joining us. we have to leave it there. ceo of intelligent energy. still to come here on worldwide exchange, we're live outside glencore offices in london as the company continues to fight it's battle to convince investors all is well. we're back in a couple of minutes. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.

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