a very warm welcome to "worldwide exchange." i'm wilford frost. >> good monday morning. i am susan li. these are your headlines around the world today. a sea of red after a sharp factory slowdown in china sparks declines across asia and europe. >> investors cheer the first dividend from commerzbank amid cheers that the ceo will step down. >> hsbc has trades in the red. >> turkoglu hitch lira strikes

after the ruling aka party strikes an outright majority in eye lekss. hailed by the president as a vote for the country's stability. okay. let's quickly check on some breaking news. we have pmi data coming from europe coming off some disappointments from china's official numbers. better than expected. looking at the eurozone september manufacturing pmi read above the boom/bust line of 50. we are expanding, not contracting, at a rate of 52. that is the read for the month of september. when it comes to the eurozone, october may have a pmi forecast holding steady at 52. not deteriorating or getting any better. >> indeed, susan. the individual countries coming out over the last half an hour or so.

here's the breakdown of the pmis we've got spain at 51.3. and that was first out of the gate earlier. the first reading since december 2013. italy showing some growth, 54.1. france continues to lager. a reading just above 50 still. gener germany has slipped coming from 52.1 down from 52.3. what does this mean for european equity trade. in fact, we have strengthened since the open. it opened in negative territory. slightly to be expected partly because of the pmis, partly because of asia's retrade down a couple of percent notes we'll get to shortly but also because of such a strong performance we've gotten to in october. the fact that we've rallied in the last hour, a little bit of a

nice surprise. now flat. individual bosses in europe, down .3% for the ftse 400. germany up 2 and i mentioned that the factory has slipped for the eighth straight month though the pace of the decline has declined. let's get out to shriev who has an update. >> this was a mix. there was something in this for everybody. the headline, 48.3 in october. this is versus 47.2, so still well below the boom/bust demarcation level of 50. the eighth straight month of contraction but the pace of those declines is slowing. i would draw your attention towards the external side where we are seeing a pickup. new export orders did increase. they did increase for the first time in about four months. we saw expansion on the external

side. it was very nice, however. the markets don't really believe it. we've seen these false storms before with the chinese data. i think what we need to see is further evidence of really meaningful lasting recovery. we're not quite seeing that in the data which remains subpar, quite mixed. the market was down at the close by 1.7%. the data on balance was the excuse for more profit taking and eleveraging. similar story for the rest of asia rank on the performance. inextricably linked to the china economy story. no surprises there. we saw 400 point decline on the nikkei. for the rest of the week, i'd say that the nasdaq is going to switch towards u.s. datasets and the nonpharmpayrolls capping off the week on friday and the implications for the fed at higher rates involved. that's where we stand. back to you. >> thanks very much for that. let's focus in on german banks which has been

disappointing. commerzbank says it will resume for the first time since 2007. investmentbacki ibanking will continue. karen has the latest. >> reporter: good morning to you, will. last time i checked they're up by more than 3%. why? a couple of notes. first of all, the earnings were better than expected. the pretax profit for the third quarter came in at 401 million our rows. that certainly beat expectations, in part because of lower loan loss provisions. the big take away this morning is the fact that they're back to paying a dividend for the first time in eight years. this is a bank that has seen very, very turbulent times during the financial crisis. they made two major acquisitions which really didn't pay off. they had to accept state aid to the tune of 18 billion euros.

the german government still holds roughly 16% stake in this company. we saw a number of very painful capital increases for investors. now for the last one or two years this bank has seen its restructuring and we're seeing the profits coming back to this country. thirdly, the big news coming tonight is the fact that the ceo who has been with the bank for three years throughout the entire financial crisis has decided not to extend his contract when it runs out next october 2016. that was a big surprise to many. a lot of people said now that things are looking a lot rosier for this bank he would be able to stay on and reap the benefits of his labor. also be able to grab some market share from deutsche bank. deutsche bank is now paying a dividend. this should be a positive for investors. he has decided to look outside of this business. at this point there's a lot of

speculation about who could succeed him but no one yet specified. we'll be talking to the cfo ste stephan engals coming up. hsbc benefitted from a slew. hsbc declining to give anymore details on its domicile review which has reportedly broadened its scope to include the u.s. as well as hong kong as a contender to london in the future. hsbc still predominantly an asia-focused bank. 3/4 of its revenue comes from the asian pac. loan books 653 billion in hong kong alone. >> 70% of assets based in hong kong. that factor with the pboc -- not

pboc, bcom, i think that's why we still aren't seeing a positive reaction in the share prices. despite this underlying beat, the fact that the shares are down highlights exactly the point where this beat really came because of a lack of one off costs, fines and so forth. >> under performance down 17% of the year where it's been pretty much flat for european banks. >> right. this has really hit the bank going forward. i think, you know, this aspect that there's a $1.4 billion drop in fines, that's a big drop in fines. i think investors don't believe that whole culture of banks being more under the regulation spotlight, more under the potential to pay the fines has passed. maybe it's passed for the time being. investors are concerned that it will come back. >> makes for an easier comp for last year for hsbc. the speed is not surprising. people should be surprised about the 4% decline in revenue. when you're not bringing in as much money as you did about a year ago, that says something

about what's going on in china as well. why not give us some more clarity on where they're going to domicile their headquarters. they set this as a deadline. actually, it's up to us when we decide to actually announce this. this could come in the final years resolves. it could come whenever we have made a final decision. >> right. i completely agree. i thought we'd get a bit more news. just recently they knew that derivatives training in hong kong, we thought that would be a tease. >> i don't believe their derivatives trading business is actually -- >> no, it's not. given that they're discussing it is an interesting move to do. anyway, as we said, hsbc off more than 1%. the greek government has submitted legislation which outlines rules for recapitalizing its banking system. the nation's bank bailout fund will be used to recapitalize the biggest country's banks by purchasing both contingent

convertible bonds and new shares issued by the lenders. over the weekend the ecb said greek banks need to raise over 14 billion euros. the death toll for migrants crossing from turkey no greece continues to rise with reports of up to 60 deaths in the past week. the u.n.'s refugee agency estimates over 600,000 migrants have landed on greece's shores so far this year. the greek government recently announced it would temporarily house a number of refugees. earlier today we spoke with the governor of greece's southern islands. he criticized the migrant crisis. >> we were the ones saying, don't hide from it because you

will find immigrants in a year or two, you will find them in your backyard. now they're there. now europe has to deal with this issue. >> joining us is the alternate greek tourism minister. >> hello. thank you for inviting me. >> very good to have you with us. let's touch, if we may to start with, with the migration crisis that we've had across europe. has that hit greek tourism? >> actually, we do priorityize the rights and the choice as well. we don't have influx so far. we're very proud to say, all our tourists have been really great and they support these people that are left in their countries and they're trying to survive. so i think we should see more from the side of human rights the problem and i think is not a national problem, is not a greek problem, i think it's a european and global problem.

so we have to find a solution for these people the best way because they're not numbers, they're souls, they're humans. >> very refreshing point of view, elena. not the only crisis greece has faced this summer with the debt crisis across most of the early months this summer. peak tourism months. did that have a hit on tourism this summer? >> first of all, i have to thank the british tourists, that they support and they trust greece and they came. we increased 25% from the british tourists in greece. they were there and they support. i want to thank them from the bottom of my heart. we didn't have an influx so far. we have immediately some incentives to resolve any problems. they had lovely holidays. they really enjoyed beautiful and relaxing vacations, which is very important as you

understand. so we're very happy to see that even for 2016 we are already in a very positive number as well. >> i don't know about you, will, but a lot of people i saw were traveling to greece this summer. there's no such thing as bad press, bad publicity. they were heading to the lovely greek islands. are they able to get cash out of the atms? >> yes. we didn't have any problems. no problems with credit cards, with cash money and they didn't. they were very, very happy. we are very proud of this because we just resolved right away any problem which would confront. so things went really great and also the last-minute booking increased as well. so we are very happy to say that we have this big record. we're a country of only 11 million citizens. at the same time we had a great season, 22 million tourists and 2015 with all the problems if

you want, 25 million, which is a record for us. >> now despite the economic challenges that greece has faced, it's still a pretty expensive place to travel to even from brittain's shores, london's very expensive. most popular destinations in greece, like crete, they're very expensive. would greece benefit from a devaluation of the currency? >> may i ask, the comparison to be expensive. what's a relative comparison? >> it's not expensive. i'm shocked you're saying that. greece is the best deal you can get in europe right now for all the islands. i don't know you want to go luxury. luxury is expensive everywhere. >> would the tourist part of the industry not benefit if the euro was -- >> i think euro is our currency. we're a member of europe and we're a very good deal for any tourist. i think there is no something --

nothing to discuss about that. to be honest, the greek islands and the main land, everything like the hotels, the packages, the food, everything is very, very good price as compared with our competition which is the rest of europe. so from the members of europe we are the cheapest. >> can i ask you about your confidence in the government and the economy. we're hearing about the 14 billion euro short fall. >> sure. >> those facing taxes are voicing their opinions. thinking how stable is this government and how stable is greece really? >> well, year' vewe're very opt >> you are optimistic? >> yes, i am. i'm very optimistic as well. the thing is right now we did a recapitalization. we have the review. we're getting the 2 billion that we had to get. at the same time we're working very, very hard to have all the

reforms and all the measures that we need so we can get done with the cuts and go see the future because we're at the most important thing is to get out of the economic crisis. so we work on this direction and tourist is very, very important because it's going to be part of the gdp and at the same time we have more than a million jobs so it's very important for us. >> okay. elena, thank you so much. >> thank you so much. >> appreciate it. we're going to go to break here on "worldwide exchange." coming up next, the big breakup. will hp's separation of the enterprise of pc businesses be better for the company and shareholders? plus, there's more separation anxiety over aig as the group prepares to announce its latest earnings release after the bell. could visa's earnings be over shadowed by a visa europe.

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the republican presidential candidates can agree on one thing apparently, how their televised debates should be run. aides from more than a dozen campaigns met behind closed doors in washington, d.c., on sunday night and they've agreed on a series of changes to give them greater control of future debates bypassing the republican national committee on coordinating with network hosts. cnbc is making changes replacing its debate chief. in d.c. new u.s. house speaker is working with president obama on immigration reform as long as the president is in office. in several interviews on sunday ryan says obama can't be trusted on the immigration issue. the president is going around a gridlocked congress with an executive office to save dozens of immigrants from deportation. speaking on "meet the press,"

paul ryan explained his stance. >> i think if we reach consensus on something like border enforcement, security, that's one thing but i do not think we should advance comprehensive immigration legislation which the president has proven himself untrustworthy. >> ryan says they need to start fresh and spell out a clear agenda of how they'll do things differently. turkey's ruling party has returned to power. a decisive win for president erdogan. the surprising results and the turkish lira up almost 4% on the dollar, 2.8 as it stands. let's go to hadley. she has more live from us from istanbul. hadley. >> hey, wilford. it was a decisive win and a surprising win for the akp

party. whether or not mr. erdogan can convince other parties within parliament that it's time to hand over more presidential powers. i'm joined by an economist here in istanbul. talk to me about the current economic situation here in turkey right now. we've seen this spike in the lira, the results. the bigger question is can turkey grow and can they develop? >> turkey needed a stable government actually. this is obvious. if you look at what we have experienced in the past three, four months since the last election on june the 7th, turkey needed a stable government. now we have it. it's obvious that we're going to have some minor changes in the econo economy. markets are going to react positively and the stock market is going to be up for some time. and interest rates, again, are going to be a little bit maybe lower. moderate changes we'll be

witnessing in the coming days. these are the short-term things. these are the short-term items on turkey's agenda. but we -- if we look at what will happen in the long term, we have some other issues actually. turkey relies on short-term funding so we need economic reforms to change that destiny as we can say because we need to change industrial production structure of turkey. but it's going to take some time and unfortunately foreign direct investments are not going to flock to turkey unless turkey implements those reforms. in order to have some long-term investments in turkey, foreign direct investments, these reforms should be implemented. and we had some announcements back in december 2014. now we are going to see whether

there's going to be -- they are going to be implemented. there is the high growth side, the other one has a different approach and they're saying that we should have sustainable moderate growth let's say between 4%. if we just move to the high growth levels in a very short period of time, it has some dangers because as of the end of this year we're going to witness the first net capital outflow for emerging countries. turkey's one of them. that's why it's extremely important what sort of approach turkey's going to take in the future so we need to wait for the new cabinet, actually, for that. >> so there's a split in the ak party now, isn't there? in terms of the structural reforms. the question will be who the party brings in to do this economic portfolio. will it be mr. alli babajan or whether the president will bring

in people his own. >> this is a big question. my idea is turkey should have a sustainable moderate growth rate of 3 to 4%. in the latest mid term program of the government we have witnessed it. some targets were changed. actually growth rate was down around 4% roughly. unemployment rate was expected slated to be around 10.5%. it was up from 9.5% so we see that the government is expecting some negativities in the global economy. it is very difficult to implement those reports -- reforms that i talked about because the global environment is not favorable these days and it's not going to be favorable in the maybe coming two, three years for turkey and for all the emerging countries. that's why we have to be very cautious on that and not very

aggressive. we can manage them. we can manage the implementation of those reforms in a moderate pace, i would say actually. so that's -- that is the approach we need, turkey needs today. if you are very aggressive on the growth side, then funding is a big problem now in all emerging markets including turkey. >> economist here in he istanbul. thanks so much for joining us. >> hadley, thanks so much for that. switch focus between the latest flashes of the russian plane crash over the weekend and indeed alliance has come out to say it's the leading reinsurer on the plane. they're hoping it was insured for losses around $24 million. let's have a quick look at european markets before we go to break. we are increasing that positivity that we saw throughout today's trade having

opened down by about half a percent. we're now up across the continental europe forces. germany is up half a percent, germany and italy a little bit less. we'll be back with much more here on "worldwide exchange" after the break.

negative start to november. a selloff in asia. european stocks holding on to the flat line. investors cheering a first dividend from commerzbank in eight years. the city shares higher despite news the ceo will be stepping down next year. hsbc beats third quarter forecasts for trades in the red. russia mourns the 224 victims of the egypt plane crash as authorities say that the jet broke up in midair above sinai. they say it's too early to say what caused this disaster. wow. we have a 16-month high for u.k. manufacturing pmi. it' co it's come in at 55.5 for

month of october. that's up 51.8 for the month of september. quite a marked increase there for u.k. manufacturing pmi. look at sterling. look at that jump. 16-month high. you can see 154.95. just shy of that 155 handle off the back of that surprise beat. >> we also have a bank of england rate decision later on this week as well. that should be interesting. let's stay with aviation. we're going to aviation with shares of ryan air despite second quarter net profit rises of 41% on the back of a strong summer period and the low price of fuel. the dublin based low cost carrier said after the 400 million euro share buy back in the distribution of rival air lingus will not return anymore shares. europe spoke with michael

o'leary earlier this morning. he gave his views on the airline market in general. >> heading for 1.2 billion in profit this year. our concern at the moment is not a competitive one. costs are well under control. unit costs are down 6% this year. it's more of what's going to happen some extraneous event. >> extraneous events aside, you have very clearly documented to jeff and i, we have been talking to you for a decade, this industry keeps shooting itself in the foot. too much capacity. when the times are good that's a couple of cycles ago you were e bemoaning it then. >> what's different this time around is that capacity has been reasonably disciplined in europe. most of the orders have been going to places like asia, russia, latin america.

sometimes it screws up and they find their way back into europe. at the moment, we've ordered more aircraft than anybody else. we expect to double in size over the next eight to ten years. off a cost base that's significantly lower than every other airline, we've hedged our dollar for the next three years at 135 to the euro. so we have lower costs aircraft, bigger aircraft coming, lower cost dollars. we're raising finance now at 1.125 and the industry never looked so skarlly good for us. >> china is getting to the plane making business completing production of its first large passenger jet. the c 919 will look to compete with airbus's a320 and boeing's 737 in the future developed by the company in china. it will take flight in 2016. it has orders for 517 aircraft according to the company. it makes sense given that

china's aviation market expected to be the biggest overtaking the u.s. in the next few years. boeing and airbus see china as the biggest opportunity for them, right? airbus has recently signed $17 billion in deals with the trip by the german chancellor. >> yeah, i have to say i didn't know about china's plane industry before this story today. i'm really surprised. you think of all of the industries where they play catchup with the western world and are on par with autos, financial services to whatever it might be. the fact they still have never made a commercial airplane really surprised me. also surprised me 500 orders, hasn't had one made in flight. that goes back to next year or the year after. negative spin oen a positive announcement that they've now completed. i was surprised that they've never made a plane before. most of the world relies just on boeing and airbus.

they've never made one surprises me. >> now they have one, c919. japan is coming out with their own homemade plane finally after decades of delay. so i think people recognize the need for more aircraft. boeing has said that china's expected to add 6300 new aircraft to its commercial fleet for 2034. 6300 planes demanded for the next 20 years. >> michael o'leary is talking about how the industry tends to invest too heavily when there's slight demand for it. and it will lead to over capacity. anyway, very interesting development. i'm just surprised how far behind they are in general. >> c919 set to roll out. in asia we should point out we had the first meeting of leaders of china, japan, south korea in three years since their summit in 2012. given tensions in overseas, prime minister shinzo abe and

his counterpart avoided the most touchy issues. they are trying to improve cultural ties between the three nations. the leaders say it will resume on an annual basis. >> why premiere li instead of xi? >> optics. the historical tensions between china and japan which are very visceral, very relevant, i tonight think they're friendly enough for the chinese president to sell that to the rest of china to say he's going to be with shinzo abe and the japanese prime minister. >> interesting. the president travels to the u.s. and the u.k. but not to see the south korean and japanese. >> as i said, world war ii playing heavily. >> interesting perspective. eurozone central bankers have received a helping hand from an unlikely source when it

comes to the quan at thistive easing program. according to the financial times the people's bank of china has been a willing seller to drive yields lower amid low liquidity. let's talk about the largest ipo of the year. this is going to take place in japan. in fact, this is one of the largest privatizations in japan that we've seen in close to a decade. we're looking at the ipo being five times over subscribed. they're looking to raise 11.6 billion in what can be the country's largest ipo in two decades. looks like it's going to be split up in two. you have gentleman upon post bank japan post bank and japan post insurance all expected to list on november the 4th. looks like this is going to be a big one. five times over subscribed which is actually pretty positive for what has been seen as really a government holding that we've been -- yeah, a government holding for the last few decades or so.

let's get straight to tokyo. >> reporter: yes. japan's state owned postal service, japan's post holdings along with the banking & insurance units will be listed separately on the tokyo stock exchange on wednesday which is the next trading day. the largest share offering in nearly two decades and the japan post runs over 24,000 post offices throughout the country and banking & insurance units together handle $1.6 trillion worth of assets or more than 10% of all household financial assets in the country. interest among individual investors is high and all three are priced at the top of their proposed price ranges. the sale this time will be worth around $12 billion in total and the government is looking to eventually raise more money and use all the proceeds from the sales for the ongoing rebuilding efforts in earthquake struck northeastern japan. the government will retain an

89% stake in the post holdings. it will be challenged to be in the world market. the biggest issue will be how to deliver letters and packages which has been struggling with negative earnings. they're in hopes to expand business overseas and the firm's successful privatization depends on whether it can avoid government interference and push forward with restructure and reform and that's what's in the nikkei. back to you. >> thank you so much. let's turn our attention to aig and analysts bernstein who have been bullish on aig are calling for the company to shrink to greatness. in a new note they describe the firm as slow moving and difficult to manage urging sales and cost kuss. bernstein's calls come from a public letter from carl icahn advocating a breakup of aig. bernstein says as they have a

financial firm may be permanently disadvantaged relative to smaller insurer, aig reports earnings after the closing bell today. hewlett-packard, hp as we know it for more than 75 years is no longer. the tech giant which was founded in a garage in palo alto, california, back in 1939 split into two separate companies on sunday. hp inc. which will sell pcs and printers, consumers and businesses, then you have hp enterprise and it will focus on software and services. each could generate more than $50 billion in annual sales. meg whitman who led hp since 2011, now ceo of hp enterprise rings the opening bell of the new york stock exchange. she will speak on "squawk on the street." sprint is looking to slash its expenses by as much as $2.5 billion next year. this includes layoffs and a wide range of cost controls as part of the turn around efforts.

sprint says it will provide more details on the job cuts when it reports earnings on tuesday. "the wall street journal" says among the percs are free snacks notice office which include bottled water and yogurt. sprint is trading at the moment in germany down 2.6%. right. off the back of this, while sprint is cutting costs like we said including free snacks, we're asking you what company perks would you hate to see taken away. get in touch with us at worldwide.cnbc -- >> wait. >> what's yours? >> mine is air conditioning. very apt one today. we've been making complaints about that. are there any differences between the asian offices and the london offices? >> we get free coffee. >> really? >> you get that here? >> we get that here? >> right. >> they've been making free coffee for me? >> we don't get free coffee

here. it's not very tasty. >> okay. not very tasty. that's why we head out. yeah. more of that. get your suggestions i in @cnbcwex. we'll be back in a couple of minutes.

communications company slack takes them through $3 billion after two years of existence. the company which accounts adobe, samson has seen its user base grow ten fold in the past ten months. ceo stewart butterfield stopped by the studio on his way to the web summit in dublin, ireland. does he think we are in a tech bubble? >> absolutely. valuations are high but i don't think it's a bubble. we can't say every time there's a market correction coming that it's a bubble. i think that i can imagine an environment where slack as it currently exists will be value waited high. i worked through the dotcom crash. i helped lehman brothers over

the weekend that it was bust. on the public market side we're way up. it's difficult to crawl on top but it's easy to see we're far from the bottom. you know, the fact that there will be a correction is just the fact that there is a cycle that hasn't been there. >> there is a rush to get to market. do you have that urgency at slack to ipo? >> not necessarily to ipo but to continue the growth because i think that's -- that's how tech is evaluated across the board. certainly one of them is the pmi valuation. we grew 70 weeks at 5.5% compounded growth. we're still at the point where we're measuring growth in terms of weeks. >> let's talk about social media quickly. there has been a lot of talk about slowing user growth, whether it's twitter, whether it's even snap chat which isn't growing as quickly as it used to. do you think there is maybe some exhaust on social media? >> i think there's a continual evolution. this is very new to us, the

whole -- it's very new. it's going to take us a while to be able to figure out what it is we actually want and to further the evolution to be able to slow and for things to have some lasting utility. >> it's secure? you need a lot of security? >> yeah. we invest very heavily in security, not just in the sense of networking security but in the processes we have a lot of internal audits, compliance controls, physical access controls, background checks for employees that are 50th higher, this is unusual for a tech startup, compliance and strategy. >> my final question to you because you're actually a co-founder of flickr which has been sold to yahoo!. what advice do you have for budding tech entrepreneurs that want to start something?

>> that's a good question. i think that one thing that people tend to get caught up in, especially in the environment like today, easy money, most of the headlines are about valuations. the most important thing is focus on what the customers need. it's real easy to get caught up in the result of the company. we are 100% customer focus. if you make companies happy, success will follow. >> tech titans are gathering for the web summit. we'll be live from the next two days. we'll be hearing from a diverse group of guests to get their take on how technology is shaping our present world and will shape our future as well. we have the latest on the russian plane crash over the weekend. a couple of crashes coming out of the airline at the moment. they're saying it's impossible for airbus plane to break up in the air because of technical or pilot fault.

only possible explanation for the crash is physical or mechanic mechanical. they're also saying that the crew did not make any contact with the ground about problems with the plane during the flight. those are those discussions coming out on that story. sticking with that, russia's transport minister says it's too early to say what caused an airbus a320 to crash into the sinai peninsula of egypt. the plane came down in a mountainous region on saturday killing all 224 people on board, mainly holiday people visiting sharm el sheikh. the fact that the fragments are scattered suggest that the jet broke up in midair. russian president vladimir putin considered sunday a day of mourning. bill neilly from nbc news filed this report from cairo where the bodies are being taken. >> reporter: it fell out of the sky and no one knows why, but there were more clues today. the debris is so scattered the

plane's tale three miles from the cockpit that russian investigators say it broke up in midair. search teams are examining suitcases, human remains, the tangled wreckage for any signs of explosion, fire, or mechanical failure. amid it all, tragic reminders of the 224 lives lost. the plane's two black boxes have now been recovered and soon the voices and data from the cockpit will be analyzed. investigators still have no idea why the plane suddenly lost altitude and speed at 31,000 feet. why the pilot made no distress call or exactly why the plane broke up in midair. >> they're going to be looking at the flight controls. they'll be looking at the fuel system. they'll also be looking at maintenance issues that may have induced some sort of technical failure. one of the things that you can't rule out at this time is whether or not there was an explosive device of some sort on the aircraft. >> reporter: they're searching,

too, at a morgue where the bodies of dozens of passengers were examined by a russian forensic team. most of the dead have been brought here to be identified. many of them only through dna samples. it is grim work. 25 of the dead were children, some photographed near the plane. the youngest, 10-month-old dorena waiting to go home. metrojet said again today its aircraft are technically safe. russia isn't so sure grounding the airline's a 321 fleet. some airlines are refusing to fly over the area until the cause of the crash is known. in russia, it was a day of mourning, prayers, and tears. a nation in shock. the middle east is gaining ground fast when it comes to tourism. dubai is home to the world's largest international airport which saw no less than 6.4 million people travel through the hub this september.

joining us now is the ceo of raz al, a tourism industry. if i may, it would be great if we can cover this tragedy over the weekend. we hear airlines are refusing to fly over the sinai peninsula now following the crash until we get more details. what's your opinion on that? >> thank you very much for having me on your program. it's a good question. i think it will take time for people to understand what are the next steps of this. i believe the travelers will continue to travel. the accidents do happen, but tourism and travel has continued through recessions, through good times and through bad times. >> if we talk more broadly on the tourism in the ua over the years, the middle east is facing a lot of challenges. has that affected tourism levels

in dubai and the rest of the ua? >> it hasn't necessarily affected tourism levels across the uae. dubai has seen continued growth. the tragic incident with russia, although, you know, very tragic, we've seen growth from russia. also, we've seen tremendous growth from the u.k. market which is one of our largest markets. now second to germany. >> that's right. passenger traffic has risen some 8% in september. >> yes. >> i'm also looking at the north american breakdown because that was an increase of 17% as well. this is mainly because of the increase in capacity. several of the northeast american groups. >> direct flights to orlando has also shown some increase as well as from boston, chicago and -- >> the reason i bring that up is because you know that the top three u.s. air lines, right, are

protesting against emirates and other gulf carriers that we shouldn't be having these open skies agreements because in essence they're getting subsidies from the government which makes an unfair playing field. how do you feel about that? >> i feel emirates plays a really key role for us in the middle east. it's been a great core for the region. it's been connecting the world to the middle east and also connections into the region from dubai. not only feeding into the uae but the asian pacific countries. >> is there any indication that the big airfares are being heard and there might be a clamp down? >> i don't necessarily see -- oversee this part of the business and i don't see these indications. you know, in the tourism sector we haven't seen any indications of reduction in numbers or visitors across to the middle east from north america. >> dubai, of course, a crucial

hub for an airport for connections across the globe, not just as a destination itself. how much tourism do you get off the back of that, people pausing for a day or two because they connect through the region as opposed to being a destination in itself? >> that's a very good question. dubai has businesses itself done very well across the region. it's become a very important shopping destination. i'm not sure if you know it it's one of the top ten shopping destinations in the world second to london. that has given us an opportunity to ride on the back of that and offer travelers a distinct experience where you experience the culture, the heritage. they still have the arabian authentici authenticity. they have sort of preserved that. there's a great deal of culture. we have over 7,000 years of history. adventure, great beaches. that allows people to do a

combination between dubai and them. >> i would be remiss to ask about the dmien factor. we're seeing an ongoing chinese slowdown. tourism to dubai? >> fantastic news about china, by the way. we have seen tremendous growth from china. 125% growth, albeit from small numbers, but the -- >> 12-month increase? >> no, this is year to date. year on year. >> 125%? >> 125%. small numbers as i say, all of this is coming through aggressive regional marketing activity into china but also a combination of road shows with dubai. right now we are really promoting russa tama through an experience in dubai. the chinese travelers seems to like it. we are working extensively on making their stay longer. we have a 1.5 night average stay from the chinese and we'd like to make at that a bit longer by creating activities and events around the resorts for them to stay longer.

>> thanks so much for joining us. much appreciate it. the ceo of rak tda. air bnb is facing a vote on friday. they will decide on a proposition that will limit all short-term rentals to 75 days a year. it would also make it easier for neighbors to sue the company for violations. critics say air bnb listings reduce the supply of longer term rentals worsening the already tight housing market. everybody in san francisco knows how tight it is. we're going to go to break here on wex. more partisan politics loom on capitol hill.

good monday morning. hello, everybody! welcome to worldwide exchange. i'm susan li. >> i'm wilford cross. here are the headlines around the world. november, u.s. futures are off to a flat line after a sharp factory slowdown in china sparks a selloff across asia. hsbc beats third quarter forecasts but trades in the red amid long-term forecasts of china's slowdown. separation anxiety for aig. analysts know the calls to shrink to greatness calling for carl icahn's call for a breakup. the kansas city