welcome to "worldwide exchange." i'm carolyn brock. >> i'm susan lee. let's get to your headlines around the world. >> a tale of two stocks. slumped to the bottom of the 600. >> glencore surges. they're listening to takeover offers as the commodity trader appears closer to spinning off some of its agricultural assets. in portugal, prime minister becomes the first leader to be

re-elected. emerging market emergency. lots of es. the brookings institute warns that developing markets could lead the world economy into a slump as the world bank cuts its growth forecast for east asia. i guess this is a session that marked the tale of two commodity stocks. let's start off with k plus s because canada's potash company has abandoned its bid for the takeover of k&s. now back in august we had k plus s saying the $7.9 billion takeover abandoned the prospects. it could lead to job losses.

carolyn, this deal seems to be off now. >> at the other end of the 600 glencore shares spiked after the telegraph suggested the company would, quote, listen to potential takeover offers. the company's also reportedly close to spinning off some of its assets as a number of funds hey stakes in the agriculture business. the shares are higher by 9.9% in the past week. we have rebounded quite a bit. year to date, shares still down 2/3 of 1%. it's interesting it seems as though the market believes that we've hit the bottom. many of the bargain hunters coming in. many of the buyers are buying, we can buy too. many of the reports surfaced on friday about some of the sale of some of the agriculture assets. >> we've been talking for a long time about glencore spinning off the agricultural marketing.

it's very cost intensive. when glencore needs to reduce the $30 billion stockpile it seems opportunistic. i love glencore's hong kong stock up at some point 71% almost doubling in an hour's time. >> just joking how much volatility we are currently seeing in the stock. the company coming out with a statement. they're saying, we don't know what's behind this. we can't explain it. who knows who's actually behind it. it tells you that while there is a lot of interest, we've seen very high trading volumes in that stock. gold prices jumped friday on the back of the fed or on the back of expectations that the fed is going to delay rate hikes. that's created a problem for glencore. if gold is higher that could mean higher prices for the screening agreement. >> the fed bank president thinks that we should be putting off an interest rate hike until well past 2016. >> all right. we're going to talk much more about that later in the show.

boston fed president says he expects them to raise prices. he added that the slowdown in hiring last month heightens his sensitivity to the economy's performance the rest of the year. if it grows less than 2% or unemployment rise frz 5.1% he says he prefers to wait until next year or hike rates. he says he does not need to see inflation or wages to support the move but the labor market is absolutely key. susan? >> that's what i mean. that's why we saw bulls rally 2%. let's talk about former fed chairman ben bernanke making headlines saying more corporate executives should have been prosecuted for actions that led to the financial crisis back in 2008. ben bernanke speaking in an interview with "usa today" saying that the justice department really focused more on indicting financial firms.

he says analysts were slow to realize how serious a downturn would become in 2008. he also blamed himself for not explaining well enough why it was prudent to rescue companies that caused the crisis. now bernanke is owning a new book. he's written a new memoir called "the courage to act." we should point out ben bernanke will be on u.s. "squawk box" for an exclusive interview. that should be interesting. that comes your way at 8:00 a.m. eastern time. it's interesting that he also pointed out that he at the federal reserve in 2008, it wasn't his mandate to pursue these investigations. it was up to him, he probably would have looked at individuals more thoroughly. i guess he's kind of passing the buck saying it was the department of justice that maybe should have launched more investigations. he said, you blame financial firms or entity, it's not like you can charge an entire company.

>> he's right in terms of passing the buck because it really sits with the justice department, it doesn't sit with the fed. he mentioned those comments while he was still in office, that would have caused a lot of turmoil. they're essentially independent. it doesn't surprise me that he's coming out with that now. he obviously echos the view of many other people out there. why have there been no criminal proceedings against many of the executives that caused the turmoil. lehman, bear stearns, et cetera, et cetera. we've seen huge fines for the misselling of mortgage funds or bonds rather but we haven't really seen a crackdown on the individuals. that's something that frustrated a lot of people. >> also, yeah, the individuals that have been there have been very low ranking vice president of sales. no one at the ceo level or chairman but, again, i would bring it back to what bernanke says. it really -- i think you have to go back to the actual law itself and what it states, flight how you cannot charge an entire firm

for something that they did. you know, individuals, again, that is in the sphere of the mandate of the laws at the time. so, you know, i guess our question to you, do you lock them up? do you agree with ben bernanke that more bankers should have been prosecuted during the financial crisis? you can e-mail us, find us on twitter and our personal handle's right there on the bottom of your screen. let's talk about the expense of luxury stuff and richemont. they will book a one off accounting gain of between 610 and 670 million swiss franks on the back of the completed merger of yoox and net-a-porter. the first day of trading on the milan exchange. this is after two online fashion retailers agreed to an all share

merger. let's get straight to milan. claudia joins us live. claudia. >> reporter: yes, good morning. it is a big day for yoox and net-a-porter. this is not the first time. he was here in 2000 noon in november when yoox went public for the first time. the two groups were born around the same time and followed parallel lines with yoox working more in the off price business and net-a-porter on the full-price building. first of all, welcome, thank you for being with us. >> thank you. >> is what is the newly merged group -- how is it going to be different? what are going to be the benefits of joining your forces? what are the challenges? >> i thought about this merger six years ago because i thought the two companies together, they

can have a better future and as well as for our employees. and the rationale is about complimentality. it's like we are managing monobrand division totally comprised of the living divisions. as well as they don't have a monobrand division. so like bringing the two companies together, we are strong in the brands. we are strong in the price. this is absolutely true. and basically we can combine forces to offer the brands, the luxury brands and service in terms of the platform, the logistics. you know about the technology platform and basically all the formats of distribution.

>> so you're very close to your clients, 2 million potential clients that you are contacting. you're very close to your prands as you are saying as you are managing actually their websites or they are selling online. you've had a very interesting strategy there. what do you see in the future? what are the most attractive products? where are the biggest margins? >> the customer is definitely our every day, when i wake up i think about our customers. that's together with me the 3500 employees working combined group. the 2 million customers that we ha have, it's like the high end of the customer base. they're willing to spend 400, 500 euro every time they come to our websites, brand stores.

and what we see in the future is that it's integration. we start working on the mobile at yoox with a task force. currently we see over half of our traffic is coming from mobile. we expect that the growth it will continue. especially in the mobile. that will be priority for zblus what's most important in the very strong growth that is perceived to be coming by 2019? it is expected that there will be 30 billion euros of revenues coming from purchases made online for luxury goods. in that sense what is the future for retail and, you know, how do you expect to move within that sector? >> by combining the two companies, yoox and net-a-porter, we become the market leader in luxury online and as a market leader we expect

to grow mother and the market is growing. we continue to grow. we continue to innovate and that's our objective. >> one last question. what are the synergies that are making here by this merger actually in terms of numbers? >> we estimated the synergies to be at around 60 million on the third year. 60 million in savings. after the announcement it was the end of march the two teams have worked with a lot of passion together in order to fine tune the number and fine tune the synergies, but i have to say that after six months i do confirm this number and actually also we're probably being conservative. >> so better news coming out from this group in the future. we want to thank you for being with us. the ceo of the newly formed yoox

and net-a-porter. flash floods in the french riviera have killed at least 17. 5,000 homes are still without electricity this morning following blackouts on sunday. meantime, over across the pond, at least seven-weather related deaths have been reported on the u.s. east coast which was hit by heavy rainstorms. the governor declared a state of emergency in south carolina. hundreds of people have already been rescued from these fast-moving flood waters. the fire chief for the state capitol of columbia says more door-to-door searches are being planned today. that's to make sure emergency responders get to everyone that needs their help. we're going to go to break here on "worldwide exchange." coming up on the program, volkswagen continues its damage control as it's motions probe hones in on two engineers. we'll bring you the latest on

the scandal. plus, printing money. we log on to see how much capitol companies plan on putting into the cloud. moving to the middle ground, the u.k. conservative party poaches a former rival minister to head up a new independent commission. we'll bring you the very latest on the torey party conference in manchester. hold the phone. because at&t and directv are now one! which means you can access your dvr at the dmv. change channels while he changes pants. you don't have to be a couch potato, you can be a train potato! and let them watch all the shows they love, inside the ride that you really kind of hate. introducing the all in one plan. only from directv and at&t.

portugal's coalition has claimed victory in the nation's general election with just over 38% of the vote just shy of the parliamentary vote. julia is with us. it sounds like a victory but it sounds like a setback at the same time. >> reporter: well, carcarolyn, you're quite right. it does mean the incumbent prime minister doesn't have the elusive majority. in order to form a coalition government he has to get the buy in of the socialists. one of the questions we're asking going forward is what kind of influence are the socialists going to have on power politics here in terms of reforms going forward as well. remember, i was talking last week about the manifesto of the center right and center left social iists

socialists. it's laying that out and it's a positive response. ultimately we have to see how that plays outgoing forward and to what extent the socialists interfere in policies going forward. let's get some thoughts from portugal. good morning. thank you so much for joining us. to what extent are the socialists going to influence and derail politics? i think that's the big question going forward. >> well, i think they will have quite a big influence because although they don't have a majority. they have a sufficiently blocking power in parliament not to let certain measures pass and they said that they would be ready to do some sort of arrangement if certain red lines would be respected. so i would speculate that if they have a minister of finance, a minister of social security, a minister of health, probably a minister of economic development, that would be enough for them to let the minority government pass. >> so you can imagine something

like financing. >> there is even a name i can tell you, used to be leader of psd but she became very close to the ps leader. she became very close and they said she was very close to the ideological. >> already having a key influence? >> right. >> i made the point if you look at the manifestos, it's difficult to choose between them. isn't that the point, as investors look at portugal, if they can do a deal behind the scenes, a supported deal, we can pass a budget and come up with a plan. >> there is an expression which is arc of accountability which means the three parties, psd, cvs and ps. these parties together have something like 75, 78% of the vote. that is what's relevant for the market point of view. >> the pro consolidation, pro europe. >> they are part of the same

family. they have different discourses or different stresses in certain parts, but they are for euro, they are for europe, they are for european union, they are for a market base economy. they're involved in privatization. i'm not going to say there are no difference, there are personal differences sometimes in politics we know it's bigger than ideological difference but they are part of the same family basically. >> there were little concerns last night that this government would only last a short amount of time. >> it's still possible. >> exactly. if we're talking about particularly for the socialists here if they can't win an election after four years of austerity. >> right. >> surely they aren't trying so hard. >> right. >> will they not be penalized both creating instability when the country doesn't need? >> yeah, the portuguese voters are talking about leaving the system. they used to reward people that have a program and if you just

have a negative program, people will feel that they are talking chaos. but saying this, there are a lot of question marks on our system because we have had biggest abstention rate since the last election. >> great to chat to you. nuno here in portugal talking to us. all of the analysts have come out saying they see this as a positive result. barclays say it's important that they get the investment upgrade. sentiment positive even with the minority government. back to you. julia, thank you so much for that. meantime, the world bank has been busy. it's downgraded its growth forecast for east asia. the brookings institute warns emerging economies could lead the world economy into a slump. the world bank predicts the region will grow around 6.5%.

also the emerging market fallout and the uncertainty around the first hike or the federal reserve in almost a decade. >> i think they're predicting growth of 6.9% for china this year. >> not too bad. >> not bad. they're pricing the predict shuns above 7.1% which is above market consensus. in other -- we get a gloomy picture, i guess, being sent by the world bank. let's get to the positive part. i love talking about positives. we are kicking off a new week, a new day. this could be the landmark day for the dpp. the trans pacific partnership has a huge trade deal involving 12 countries. they've been holding the week long discussion in atlanta. they announce maybe later on today that the u.s. and 11 pack room nations have reached a consensus. japan, the nikkei, outperforming

other asian markets in some form of agreement would provide a boost from prime minister shinzo abe. there's a lot of ifs, don't you think, in a 12-nation trade pack. >> yeah, in my experience with these trade negotiations with the tpp the last mile is always the hardest, isn't it? but we are already seeing a reaction in japanese equities because the automobile inches did industry and agriculture look like the biggest beneficiaries. those two sectors were up broadly. nikkei closing at a two-week high. it's going to stay with the bank of japan needing to review policy. there are expectations that we will see status quo, no move to expand asset purchases although the pressure really is on the b.o.j. to do so, especially when you take in mind the macro data has been underperforming. there are many base cases that

suggest that you won't see any action this week. could see some action though at the end of october in order to get to 2% inflation which is looking increasingly elusive for the bank of japan. liquidity broadly in the markets and trade volumes that much more thinner on the ground. remember, china markets, shanghai composite is closed until thursday. let me also remind you we've got an interest rate decision by the reserve bank of australia tomorrow. broadly it could be quite dovish. i'm not sure whether we will see an interest rate cut. they could shift into a neutral bias. remember, australia still feeling the heat from the terms of trade shock delivered because of the collapse in commodity prices and also slowing china as well. so expect more dovish nuances from glen stevens and the policy makers over at the reserve bank of australia. let's see what the asian

markets are doing. the jobs report tells us that the fed or the rates will stay lower longer. the xetra dax up. glencore up 10% germany, we had pot ash walking away. pretty good start for the european markets. in terms of the currency markets, the on the back of the weaker jobs report, it is a touch higher against the japanese yen though. still a lot of talk about potential easing by the b.o.j. we're seeing that here at the 120.11 mark. pound sterling, 152.22 against the u.s. dollar. we will be getting services pmi in ten minutes' time. euro dollar couldn't quite hold onto the gains we saw friday. we're still up by 0.5% at 112.59. in the commodities phase, oil is making it. crude up by 1%.

48.66 is where we're currently trading at brent crude. russia is seemingly not open to talk to other producers about the imbalance in the market and we saw a continued drop in rigs. spot gold giving back some of its substantial gains we saw on friday. up by more than 2% on the back of the jobs report. let's talk about sports and well bring station with the miami dolphins in town taking on the new york jets. the dolphins faced off against the jets in the nfl international series taking place right here in london. jets running back chris ivory was back in action following injury and set the tone really for the rest of the game crossing the line early in the first to put the jets ahead where they stayed to finish the game 27-14. the two teams fortunes continue to diverge with the jets 3146 and the dolphins 1-3 as both head into a by week. while their season is far from going down the toilet, the

jets did take some certain precautions when making their first trip to london to play. a list of the logistics from the trip obtained by "the new york times" noted a recommendation by an intern for the move as -- he said that toilet paper in london is, quote, very thin. so you should bring 350 rolls of toilet paper when visiting london. >> is it really that thin compared to the u.s.? i don't know. >> you know, i'm not sure if i would bring 350 rolls of toilet paper to ensure that it will be fine for a few days but, you know, what can you do? on that note we're going to take a break here. we'll be right back.

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the tale of two stocks as it slumps to the bottom of the stock 600 as potash abandons the k and s takeover. >> glencore surges in hong kong and london. a report suggests that management would listen to takeover offers as the commodity trader appears closer now to spinning off some of its agricultural assets. in portugal prime minister becomes the first european leader to be re-elected after opposing the terms of the bailout. emerging markets emergency. the brookings institute warns

that the developing nations could lead the world economy into a slump as they cut the growth forecast for east asia. all right. we've got some pretty bad news for the u.k. services sector. the pmi dropping to the lowest in 2 1/2 years in the month of september. what we got way a bid of 53.3 versus an august print of 55.6. just want to show you what sterling dollar is doing. we've seen quite a big dropoff on the back of the data. now still in the green against the dollar but a change of hands at 152.03. let's check in on the european markets on this monday as they are kicking off a new trading week. we came off a volatile friday. we're looking at pretty nice gains as kro the board. i wouldn't call them explosive.

2% up with the ftse 100. the german dax seeing gains above 2 and a cac 40. we're moving towards a 3%. the ftse mib. the euro stocks, 50 and pretty much similar to what we're seeing for the individual benchmarks. caroline, i'm picking up the pretty positive session so far, 2.5% higher. >> absolutely. in this environment bonds don't do so well. want to show you what gilts are doing. they're rising on the back of the data. we're seeing 1741. the 10-year note back below 2%. that's quite a big deal given that we saw the below expectations report. 1.99%. dropping to 53 basis points. the currency markets, the dollar still under a little bit of pressure today. the dollar index is down and the

euro dollar is making minor advances. 1.1256. down to 1.13. couldn't hold on to those gains. as i mentioned, we're seeing cable under pressure. >> quite a dramatic move for treasury. we're at six-week lows for the ten-year lows. citi had four year lows. long bond in japan. we haven't seen these levels, pretty much benign interest rates. for close to niechb montne mont. ford and the uaw have averted a strike at a plant in kansas city, missouri, that builds the top selling f-150 pickup truck. the two sides say that they've struck a tentative contract agreement without providing specific details. workers had threatened to walk out on sunday. ford has inbe vested a billion into the plant and they sell one f-150 every 40 seconds in the

united states. meantime uaw president dennis williams will try now to restart the contract talks with chrysler this week. the tentative deal was rejected by union members last week. reports say they'll see whether fiat chrysler is open to sweetening the deal. they both trade in europe and going along with the rest of the broader benchmarks. we're seeing gains. all right. volkswagen shares still under pressure as they continue to feel the heat from the dieselgate scandal. an investigation into the scandal at volkswagen has focused on the two engineers. audi's chief engineer and porsche's head engineer are at the center of the probe and have been suspended by the car maker. joining us is the head of the global car maker. good morning to you. you did a survey with investors. what did they tell you about

what is the key focus for management going snoord what did they want to see? >> we did a survey asking auto investors what do you want to see. people want to see change. they want to see much improved corporate governance within the company and of course the number one priority for the new ceo is to fix this massive scandal and that the company and the industry are going through. >> do a lot of investors feel that the stock is investable or do you think a lot of people are exiting their positions. it can really see the extent of the fines of the legal cost of the reorganization on the back of this. >> well, the new chairman is saying, it's an existential crisis. 60% of the investors that we surveyed are saying that vw will remain uninvestable. >> uninvestable. >> uninvestable for six months' time. that's very tough. the leagua finds the damage to the brand. all of that is unquantifiable.

>> let us shut the gate and talk about the possible transpacific partnership deal. some say they could get it signed later on today in atlanta. the most important part that i found really interesting was this auto deal. japan and the u.s. might be signing within the tpp framework. the rule of origin, you know what that is, right? the amount of parts to be made in the u.s. in order for the autos to be sold in the u.s. that can be reduced to 45% or below if, if japan doesn't want to keep the cost of the pickup trucks in the market? >> overall it is clear that every local government is trying to protect the big industry. the auto industry is one of the biggest globally in every big region. everyone wants to make sure, hey, guys, if you're selling cars here you have to produce them here. you can't assemble them here. you have to have local -- >> i agree with you. i can't believe the u.s. wants

to give this up in the tpp if japan doesn't come in or korea doesn't come in with low cost pickup trucks to compete with the f-150 or ram full body, you're going to reduce your rule of origin to protect the pickup space. >> you have to be competitive. you can't protect the industry until the bitter end. it's a global industry. i'm not -- you know, i don't believe this is like a game changing thing for the industry with everyone competing everywhere. >> how do you feel about the health of the industry? we saw pretty strong u.s. september auto sales. european auto sales, seemingly very robust, too. yes, we don't know about the vw impact. we have 50% tax cut by the chinese for the small cars. you would think aside from vw everything is going swimmingly. >> well, you know, just as people were trying to get back into the sector, the frank

furthfrankfurt show was pretty positive and the vw scandal just hit. everyone who was about to invest retracted and they said, that's probably another reason not to invest. the u.s. is booming. europe is recovering and china numbers will grow. >> okay. 15.4 million vehicles. that's where we're at in the u.s. that's something we haven't seen for like ten years plus, right? it's got to be concerning when china is seeing the first negative sales read for 15 years in the bond market. >> the chinese market is getting bigger and big zbler no, no, it is of course, right? these percentage growth rates can't -- in the double digit or 20 to 30%. >> the fact that it's shrinking isn't a concern? >> no, we had a lot of prebuying because consumers expected more regulations. they were prebuying. i bet you china will continue to grow but the growth rate's probably going to be in the high single digits?

finally, topic, i know you still have voeks wag -- volkswagen out to buy. >> we were surprised by this. i like the vw restructuring story over time. my topic remains bmw. >> thank you for your time. head of global automotive research. >> don't you find it funny that bmw is his topic. >> that's opportunistic. let's stick with cars. ferrari's management are set to hit the road ahead of the highly anticipated public offering. can they live up to the million ipo buzz. >> it is one of the most prestigious brands in the world. ferrari's prancing horse is coveted by rich car collectors around the world. the question is can ferrari

maintain its cache and retail values while also satisfying the stockholders with the ipo. they're raising up to $1 billion and potentially valuing the company in more than $10 billion. in the filings they said they will explore controlled growth while maintain being -- maintaining our exclusivity. they will expand to theme parks, clothing, even retailing. ferrari owners are like a global cult and they're passionate about the cars and the company. they worry that ferrari's current production of about 7,000 cars per year could soar to over 10,000. they fear in trying to appease shareholders they could dilute the brand and launch too many models or even the unthinkable, ferrari suv. >> what i would like to see is that ferrari does not produce

more than 10,000 cars a year because it's an exclusive market. you have to keep it exclusive. production numbers are key. so if you increase those numbers, you may damage the brand to a certain extent. we don't want this either. i do not want ferrari to produce an suv. i do not want to see ferrari produce a four-door car. that's not ferrari, okay? ferrari is a v-12 engine sports car normally aspirated engine. it's a legend what you buy. >> vintage ferraris are the most expensive cars in the collectible market and even pre-owned newer ferraris maintain their values. we'll see in the coming months if ferraris can maintain their values. the justice department says the details of b.p.'s $18 billion settlement over the gulf oil spill will be filed today. the agreement is with the u.s. government and five states.

the disaster spilled nearly 130 million gallons of oil into the gulf. meantime, flash floods in the french riviera have killed at least 17 people. it left four missing. stefan is here with all the details. >> reporter: the weather this weekend in caans known for the film festival, they got two months of rain in three hours. torrential rain flooded roads and train stations. traffic was interrupted for hours. the flights to niece airport was diverted to other airports. thousands of homes are still without electricity this morning. the french president traveled to the disaster area on sunday.

he promised to declare the state a natural catastrophe. this week at the cabinet meeting. that's important because that's the avenue for people to get compensation for their damages. this morning also the debate is going in france about the impact of global warming on weather and this debate comes just a few weeks ahead of the conference on climate change that could take place in paris. we'll keep up until the end of next month. >> stefan, thank you so much. stefan padrossi in paris. let's talk about air france and it's set to cut 1700 ground staff and 300 pilots according to the latest union sources. let's get back to paris and bring back in stefan for this. stefan, yeah, thanks for sticking around. you know, what does this mean?

>> reporter: it's not what we were expecting. over the weekends unions were saying that they were about to announce 2900 job cuts. we know the details. this is 300 pilot positions, 900 cash bin crew and 1700 positions on the ground. for the first time air france will include some straight layoffs and not departures on a voluntary basis. it will reduce it 10%. it will have 14 aircrafts from the long haul. it's going to cancel its order for 25 787s. we were expecting them to delay this order, not cancel it. this comes after the negotiation last week on the pilots on cost reduction and productivity this week. the main union of pilots is going to have some new troubles

in hopes to resume the negotiations. stefan, thank you so much for that. let's talk sports. susan, a weekend for england, i don't know if you saw that. england's rugby team became the first host nation in the world cup history not to progress beyond the tournament's group stages after being knocked out by australia. england's captain has apologized to the fans for the team's poor performance. neither he nor the team's management have stepped down following the defeat. the quarterfinal matches take place in two weeks' time. >> a lot of red eyes. coca-cola, visa, budweiser and mcdonald's are among the brands calling for feef's president blatter to resign. they said they would allow credible and sustainable reform process to begin. however, other sponsors declined

to join the call for the fifa president's exit. we're going to talk politics and moving to the middle ground. u.k. conservative party poaches a formal rival min bester to head up a new independent commission. we'll bring you the latest on the torey conference coming your way after this break.

welcome back. there's some competition for who will replace john boehner as u.s. house speaker. jason chaffetz who chairs the house oversight committee said he's running ford position. he's seen as a long shot bid to beat kevin mccarthy. chaffetz said there should be an automatic promotion. he thinks americans want a new face. >> that's the call also for the republican race for the white house. donald trump is still leading in the polls in the early voting states of iowa and new hampshire but his support is slipping. a new nbc/wall street journal marist survey shows trump has a 5 point lead over carly fiorina and ben carson but the gap has narrowed just in the past month. fiorina has 16% support in new hampshire. that's up from 6% in august. now on the democratic side,

hillary clinton still maintaining her lead in iowa. bernie sanders is in the lead when it comes to new hampshire. so it looks like a tight race. >> yeah. what did trump say? he said he's going to pull out if the polls plummet. >> plummet. >> plummet. there you go. the u.k. treasury has announced that a retail share of lloyds banking share will be launched next spring. at least 2 billion pounds of equity will be sold to retail investors. members of the public will be offering a discount of only 5% of market price. the bonus share will be issued for every ten shares for those who hold their investment for more than a year. prudential, meanwhile, may leave the u.k. and relocate the headquarters to asia in a bid for e.u. regulations. this according to the sunday times. they're eyeing the change on capital requirements which come into force in january. in a statement though prudential

london said it is its, quote, historic home and remains attractive. it's looking a the the most optimal part of the business. shares up 2.9%. let's talk about u.k. chancellor george osborne taking center stage at the party conference. he is expected to unveil and overhaul how the country works up the infrastructure. let's head live and wilfred frost. >> reporter: absolutely right. chancellor george osborne taking center stage today. there's already a little bit of a political coup on the ground in manchester. he'll announce a new four-step plan for brittain's infrastructure which will include a new cross party infrastructure commission. it will be chaired by former

labor cabinet minister. back in june when he announced the budget and went with the standard new living wage, it seems that he's trying to move slightly into the middle ground and take up policies that may traditionally have been seen to be labor policies and strengthen the conservative's hold once again. we expect to hear from him at lunchtime on that. he will say they will continue to sell down the rest of the state in lloyds banking group. it's targeted to retail investors. that's likely to go down with the crowd here at the torey party conference. want to touch on that prudential story as well suggesting that too much red tape may push them towards moving out of london and europe, of course, one of the big issues here. we did hear david cameron step up his rhetoric. he might be willing to vote to leave or campaign to leave if he doesn't get enough from the

renegotiations. stepping up his referenhetoric . he's going to speak on wednesday. the other big issue particularly on the cards yesterday was syria, the fight against isol, the fight against assad. i caught up with the defense secretary, michael fallon. i started by asking him whether putin's involvement over the last week now guaranteed that the u.k. has to involve assad in their negotiations. >> you certainly can't complicate it what is a very difficult, complex, dangerous situation but it looks as if from our initial analysis that the strikes have been against some of the opposition groups to us. if he's strengthening us against isol, frankly that's not helping. the best thing he could do is to use his influence over us and stop barrel bombing his own

citizens. >> precisely. does it make it impossible to work with them moving forward? >> unless they're prepared to use their influence positively over assad and to agree that assad can't be any part of syria's future, yes, it's extremely althy. >> reporter: i just want to wrap up by saying that once again at this conference it seems like all the major announcements are coming from the treasury's office and from the chancellor himself. it will make today's speech by george osborne in a few hours' time, the center piece. like what starts the focus on what david cameron is pointing towards in terms of who may take over for them in three or four years time. george osborne, he's speaking in a few hours time. i'll send it back to you. >> will, thank you so much. meantime, david cameron has

called russia's decision to proceed with military as a, quote, terrible mistake. putin ordered the action after criticizing western efforts to weaken militant state as infect actual. however, u.s., friend. , british officials say the airstrikes have primarily served to shore up bashar al assad. they have done little to target islamic state strong holds. for his part president assad defended russia's intervention. take a listen. >> the russian initiative has to succeed or else we're facing destruction of the entire region. we're sure of that. our countries have a vifgs and experience. iran has faced terrorism and russia has faced terrorism in different ways, all of these countries. if we unite military intelligence and security wise as well as other means to fight terrorism, i think the coalition's chances of success are high and not low. let's get to the weather. seven weather related deaths

have been reported on the u.s. east coast which was hit by heavy rainstorms in the past several days. south carolina has been hit especially hard. nbc's kerry sanders has a report. >> this is kerry sanders in south carolina. what started under cover of darkness lasted through the day. >> you can see little children, kids being brought out of these homes. >> reporter: the deluge overflowing several dams. 1,000 times more water usual flowing over some of them. downtown lexington cut off because of the rushing waters. some roads collapsing under the weight of it all. state officials say it's never been this bad. keisha simpson among the hundreds rescued by first responders today. >> i never thought it would happen to us. we don't see stuff like this in south carolina. this is the first. shocking, scary. >> i'm happy we got out okay. >> reporter: most of those

rescued saying they didn't realize they needed to evacuate until it was too late. >> we are pea at a total loss. everything is gone. >> reporter: the interstate into the state capitol is closed to prevent more drivers from getting trapped. this family feels lucky. they drove into standing water. their car began to float. >> ten minutes more that probably would have fwn. >> the roof looks like it's given way on top. >> reporter: in some cases there was nothing anyone could do. residents tonight exhausted, physically and emotionally. >> you just don't know how bad it is until you actually go through it. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets

and drive forward with broader possibilities. cme group: how the world advances.

good monday morning. welcome to "worldwide exchange." i'm susan lee. >> i'm carolyn. your headlines from around the world. the fed can raise rates despite the figures on friday. the forecast rates have dropped 30%. a tale of two stocks k plus s slumping to the bottom of the stock 600 after the pot -- aash abandons the takeover. glencore says they will listen to takeover offers as a