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 royals are

baseball's world champions after rallying to the top of the new york mets 7-2 in 12 innings. congratulations to the royals. they had to wait a long time, since 1985, to become world series champions once again. checking in on u.s. markets ahead of the u.s. open, we are coming off five straight weeks of gains, the dow and the s&p. by the way, the best month in october that we've seen since 2011. so u.s. futures are higher, above fair value. maybe up two points on the s&p 500. dow jones industrials up 34 points and the nasdaq looking at gains of 9 points or so. >> some of that, susan, is coming from european trade which is opening down. the stocks are opening down. we have rallied during the last couple of hours as you can see. the ftse 100 is still lagging,

commodities weighing off the chinese pmi. continental europe pretty much positive across europe. germany up .6. 12% gain in the month of october. we've also had pmi data out this morning and here's a breakdown of the individual pmis. spain was first out of the gate. that came in at 51.3. it was the lowest reading since december 2013. italy has shown some growth, 54.1. france continued to lag. just above 50. 50.6. germany disappointed a little bit came in at 52.1. analysts said overall we have taken some positivity in european trade. we've gotten lots of pmis, right? two in the last 24 hours. chinese factory activity slipping for an eighth straight month in october. the pace of decline has actually slowed. now the official pmi read over the weekend also showed

contraction for a third straight month. let's get out to singapore where we're joined by sri. that comes off of serious declines when it talks about services decline which has seen its weakest growth in seven years. >> yeah, i'll highlight some of the points of the private forecasters. the dataset, the balance was quite mixed, i'd say, susan. something for everyone. pointing out 48.3 versus 47.2. the eighth month of contraction. the pace of those declines is slowing. that's good news. perhaps hinting at a degree of stabilization in the broader chinese economy. this was the interesting factor. the external side is starting, i stress starting to look a little bit better because we saw a pickup on new export orders. yes, it was at the margins but it was a pickup all the same. so perhaps the export pictures looking a little bit more

rosier. we need more data, don't we? we really need more data to complete the picture here to conclusively tell us if beijing is finally and conclusively drawing a line on the growth expectations. numbers on balance were a little bit shaky from the market's perspective. that was an execution for the equities to delever and also to profit take. so we ended up softer on the shanghai composite. tomorrow we got more central banks meeting. at this time it's the reserve bank of australia. it will be a bit of a coin flip. consensus suggests they'll be on hold but for how long is the big question. the aussie dollar folds will be on the defensive if the statement does strike a dovish tone. if you're watching the s&p index 200, watching the aussie dollar and let me just remind you that we are weaker today. the banking stocks went lateral down the broader market. for the rest of the week towards

friday the nasdaq will change and it will watch the nonpharmpayrolls and what it means in the high stakes environment. it can be a bit of a negative in this neck of the woods anyway. that's where we stand, wilford and susan, back to you now in london. >> thank you so much. speaking of state side, let's give you a rundown of what to watch for this week. today the october ism manufacturing index and construction spending are due out along with earnings from visa and aig. on tuesday we're going to get october factory orders and auto sales as well as earnings from cbs. on wednesday fed chair janet yellen is testifying before the house financial services committee on capitol hill. the fed's regulatory activities. she's one of several speakers. we'll get earnings from facebook, time warner and 21st century fox on wednesday. thursday you have to look out for weekly jobless claims.

q3 productivity and labor costs from disney and kraft heinz. friday, nonpharm payrolls for the month of october coming your way. let's talk through it. so much to talk through as we kick off the new week. let's go live to new york. we have the president at capital markets joining us. i hope you enjoyed your extra hour sleeping in thanks to daylight savings. what are you watching out for specifically? i'm guessing it's nfp on friday? >> mainly going to watch a little bit job numbers. what i would say is basically the fed, whatever the fed going to do in december. it's a waste of time for fund manager, somebody who's a long-term investor. if you think about what happened in market, how the market went down, everybody expecting the fed to raise rates. they were afraid. market went down in september because the fed doesn't raise

rates, it went up in october because the fed looked like it would not raise rates. so, i mean, whatever the fed going to do where to look long term. i would say that six months from now nobody's even going to remember what the fed is going to do in december. >> why? i mean, are they going to hike interest rates? you haven't actually told me what they're going to do. >> i mean, i don't know that and they don't know it. it looks like they don't know exactly what they going to do. what i say is it's not so important for the economy and even for the market. you know that the fed raise rates 24 times since 1971 and 20 times following it raise the market up 6 months afterwards. so i would say, okay, we were going to take a lot in december of the fed, what the fed is doing but it's in the big scheme not so important. >> let's talk a little bit more about your sector preferences. you're a fan, i believe, of internet and social media stocks. are you a little concerned about valuations there or you just

like them so much that it doesn't really matter? >> for now i would think that the internet sector, everything you hold in your hand. in your hand you hold an iphone. you connect with internet through facebook, to amazon where you going to shop. the valuation there are not so important because the growth is there. it's more than 20% growth. if you look at the so-called unicom which are private companies, uber, air bnb, maybe there is valuation in this part of the world, but then it may be difficult for themself to get listed at this level of valuation. but today if you buy google, apple, amazon, there's a constant valuation. it's placing the business for them. you don't go to walmart anymore, you go to amazon. >> let's talk about your preferences then within those names. google, twitter, amazon, which is your topic?

>> i would say i don't have a topic. not only are they great sideways and by anything, but also they're what is called aws, which is the cloud business. the cloud business at amazon is taking market share from everybody. ibm cannot get any growth out of the cloud so you have this huge flair at the time when the internet and every kind of software is moving towards the clouds and that is amazon. you remember amazon being so criticized for investing but they invest so much the last ten years. now they're ready to grow even more. one more thing i would even say. only 10% of the world population right now is buying stuff on amazon. so the potential of growth is still there and still very important. >> thank you so much. today is a big day for earnings because we have aig as

well and then this week we have facebook. analyst bernstein has been bullish on aig is calling for the company to shrink to greatness. this is a new analyst report. they describe the firm as slow moving. urging sales and costs. bernstein's call comes on the heels of a public letter from carl icahn advocating a breakup. bernstein says as a systemically important financial firm aig may be permanently disadvantaged relative to smaller insurers. aig will report earnings after the closing bell today. and it's official, the hewlett-packard that we knew for more than 75 years is no more. the tech giant which was founded in a garage in palo alto, california, back in 1939 splits into two separate companies. hp inc. will sell computers to businesses and hp enterprises will focus on software. each could generate $50 billion

of revenue. meg whitman who led hp since 2011 is now the ceo of hp enterprise. she rings the opening bell at the new york stock exchange today. she will be speaking with david faber on "squawk on the street." 76 years and they're splitting up hp. you know, this split means more profit on the high margin printer business, right? somebody see as a dinosaur. the fact that hp enterprise hasn't been serving the business customers very well, the cloud, there's a lot in the future of hpe. >> hpe i suppose is up against it but long term that's what the core has been. that's what meg whitman will continue. i agree. putting on the point the fact with the spinoff of the printer business, the hardware business as it were is the margin. i wonder how that's going to trade separate to hpe afterwards. is that going to be a low

multiple because it's less long-term growth or high multiple because it's churning off cash. it will be easy to see. >> we're calling it higher margin when it comes to actual revenue. the printer and hardware brings in $50 million, hpe 53 million. they employ 253,000 still which dwarfs the hardware business. they're not bringing in as much money as they should. that's embarrassing. >> a lot of debate of the print business, is that going to use it to invest in r&d. has it been under served in r&d because of the investment in hpe? we'll have to wait and see. >> that's right. let's talk about the new york marathon and kenyan runner swept yesterday's new york city marathon. stanley biwott won and mary

keitany topped for the women. she is the first back-to-back champion, by the way, since paula radcliffe won in 2007 and 2008. speaking of winners, triple crown winning horse american pharoah has officially retired following a final victory at this weekend's breeders cup. american pharoah won by a comfortable 6 1/2 length. the win clinching the first ever unofficial grand slam in horse racing. he's riding into the sunset. i bet you he can make millions and millions, endless millions of dollars for those breeders as they -- he is releasing. >> in retirement it will be more enjoyable. we'll leave it on that note. we're back in a couple of minutes.

well the come back. the headlines. u.s. futures hold on to a flat line after a sharp factory slowdown in china sparks a selloff in asia. chipotle closes restaurants in seattle and portland, oregon, after a reported e. could he lie outbreak. visa reports it will brie out visa europe.

turkey's ruling party has returned to power with an outright majority in particle will men try elections over the weekend. decisive victory for president erdogan. the turkish lira sharply higher as you see. let's head out to istanbul. for american interest, turkey is very important and it has been an ally in the fight in the middle east. >> reporter: people in the west are going to be watching the results of this election very closely. certainly president erdogan has been the leader in fact in saying that, for example, mr. assad has to go. you saw over the weekend the talks in vienna failing to produce much fruit in terms of when a time line would be set for a departure for mr. assad including russia and the united states will be out of syria. some big questions going forward. mr. erdogan expected to play a big role in those conversations, certainly about the conversation

between he and angela merkel about whether or not turkey is going to help hold back those syrian refugees. flooding into western europe, that's something that many in the west have been watching as well. this result from the elections, aka the majority, is going to be somebody that at least western policy makers are going to be looking on and at least pleased in the short term. in terms of foreign investment, bigger questions remain whether the ak party majority can put through the much-needed structural reforms. we know the ak party will be suffering a split down the middle on what can be due from the economy. one side of that is the entire policy making team, the man credited with the last ten years of economic growth in turkey. the president's people are coming into the core as well. they have a very different idea of the structural reforms should be taking place. bigger questions on the horizon, guys. >> hadley, thank you very much for that. hadley gambel live from

istanbul. president vladimir putin declared sunday a day of mourning. bill nealy 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 tail three miles from the cockpit, investigators say it broke up in midair. they are investigating the 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 will be looking for

flight controls. they'll be looking for fuel assistance. they'll also be looking at maintenance issues that may have induced some sort of technical failure. one of the things 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 mourg 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. metro jet said again today its aircraft are technically safe. russia isn't so sure. some airlines are now 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.

>> in the last hour the russian airliner responsible notwithstanding -- the russian airline involved says it's impossible that a technical call for pilot error caused its jet to break up. that's the latest that we had on this story. we're going to go to break here on worldwide exchange. still to come in the program, rental problems. is air bnb facing an existential threat. long words in the scripts. existential threats in the backyard. we'll explain all of that ahead of a key vote. stay with us. you can't predict... the market. but at t. rowe price, we can help guide your investments through good times and bad. for over 75 years, our clients have relied on us to bring our best thinking to their investments so in a variety of market conditions... you can feel confident... ...in our experience. call a t. rowe price retirement specialist or your advisor ...to see how we can help make the most of your

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air bnb is facing a vote on tuesday that could be crucial to its future survival. residents in the popular startup's hometown of san francisco will decide on a proposition that will limit all short-term rentals down to 75 days a year. it will also make it easier for neighbors to sue the company for violations. now critics of air bnb listings reduce the supply of longer term rental worsening the already tight housing market. san francisco currently limits short-term rentals to 90 days a year when the host is not present. anybody who's been to san francisco they know how difficult the real estate market has become. chipotle has closed all

restaurants in san francisco and seattle. health officials are investigating 20 locations. this is the third outbreak of food contamination at chipotle restaurants since early august. it's involved salmonella and a highly infection neurovirus. chipotle and the shares how they've been performing, down 4.5%. this is pretty scary given this is the third reported outbreak at chipotle since august. salmonella, neurovirus and now e-coli. they taut themselves as a healthy alternatives. it serves up something delicious and fresh for those that want something other than mcdonald's. >> absolutely right. even though it's not that many stores that are affected, it's unsurprising to see a 5% share

price in german trade since this all broke in the u.s. it's the third this year. different infection, e-coli. salmonella and neurovirus before. >> they should take heed of what happened back in the 1990s. remember jack in the box? >> i don't. >> four children actually died from eating under cooked meat. this is something obviously that they want to prevent and get ahead of, which it seems like they're doing, shutting down some of these stores and outlets. let's move on then to talk about something else that's been controversial in u.s. markets. that is valeant and filidor and a short seller targeting valeant. they wrote a bombshell report on the company. andrew left who heads the research has told "the journal"

investors shouldn't expect anything earth shattering from his report which comes out later on today. it plans to update his view of valeant including corporate culture and two months ago accused valeant for using these for phantom sales. valeant up 4.5%. still to come here on "worldwide exchange", seeing double. credit card giant visa could be in talks to acquire, well, visa europe. we'll explain more about that after break and we'll also have a quick look at u.s. futures ahead of the open. where we are expecting a slightly positive open. we're back in two. the only way to get better is to challenge yourself,

and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you.

we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. hi, everybody. good monday morning. welcome to "worldwide exchange." i'm susan li. >> i am wilford cross. here are your headlines around the world. a negative november. holding on to a flat line which is sparking a selloff over asia. separation anxiety for aig. they're shrinking to greatness following carl icahn's call for a breakup. a visa for europe. the credit card titan reports earnings before the bell today. all eyes are on any news that they'll buy out the european version that bears its name.

president obama can't be trusted on the issue of immigration. that's the view of new house speaker paul ryan saying he will not work with the current administration on reforms. >> i think if we reach consensus on something like border enforcement, interior, that's one thing, but i do not believe we should advance comprehensive immigration legislation where the president has proven himself untrustworthy on this. good monday morning, everybody. hope you enjoyed your extra hour of sleep thanks to daylight savings. we had a very busy weekend, haven't we? football, baseball, of course rugby. world cup. >> world cup final. new zealand the champions. >> again. >> fantastic victory. great battle. >> and we should also, of course, congratulate the kansas city royals for winning the world series for the first time since 1985. let's check in on u.s. futures and what they're pricing ahead of the wall street open. today we are looking at a higher

start today. above fair value. by the way, the s&p is coming off four straight declines. despite that, we are looking at five straight weeks of gains for the dow and all three benchmarks at the best since the open. we are up for the s&p 500, dow jones industrials with gains of 34 points. the nasdaq up 8.5 points so far. will? >> thanks, susan. let's look in on european trade. continental europe despite being negative for the ftse 100 down .4%. the rest of europe holding on to decent gains having opened in negative territory after an incredibly strong october. germany up 12%. slightly negative. up .6% and france and italy up as well. let's look at the breakdown of this morning's pmi data out of europe. spain was first out of the gate. came in at 51.3.

that's the lowest reading since december 2013. italy, that showed some growth. came up to 54.1. france continues to lag the rest of the region but still just above 50 whilst germany slipped from 52.3 to 52.1. despite this mixed bag, european markets managing to hold. >> i guess you got two reads from chinese pmi as well. that's a bit concerning. both are showing contraction right now. over the week end we got the official chinese factory numbers. the official pmi figures slipping for an eighth straight month in october. the pace of declines has actually slowed down. so it isn't as bad as expected. still though, looking at still below that boom/bust line of 50. yes, we are still contracting. what i think is probably most concerning now is a services pmi. china is now more of a services dominated economy. given that services pmi have

been actually holding above the boom/bust line for so many years, it's really concerting that we're looking at the worst greed for services pmi so it may be a steeper slowdown than anticipated. will? >> let's switch to politics. the republican presidential candidates can agree on one thing, how their televised debates should be run. aides from more than a dozen campaigns met behind closed doors in washington on sunday night. they've agreed to a series of changes to give them control of the debate including the republican national committee. the rnc is also making changes replacing its debate chief. new u.s. house speaker paul ryan is rooding out president obama on immigration as long as president obama is in office. ryan said president obama can't be trusted on the issue. the president went around a gridlocked congress with an

executive order to shield immigrants from deportation. that has been put on hold by the courts. speaking on "meet the press," paul ryan explained his thoughts. >> i think if we reach consensus on something like border enforcement, interior, that's one thing, but i do not believe we should advance comprehensive immigration legislation when the president has proven himself untrustworthy. >> ryan says house republicans need to start fresh by focusing on new ideas and lawmakers owe it to the country on how they would do it. >> we have earnings to talk about. busy week, facebook also reporting as well. this is before the bell. they took a back seat to the expected announcement that the company is buying visa europe for as much as $22 billion. let's talk through veisa's numbers. kevin mcvai at mcrory capitol.

good to have you. hope you enjoyed your extra hour of sleep thanks to daylight savings this weekend. is this going to be official? they are definitely going to buy visa europe today? >> thanks for having me. that hour did come in handy. i think so. it's been rumored for a while. one thing i focused into the last quarter was it seemed like the disclosures became much tighter around the transaction. there's been a fair amount of news anywhere initially from 20 to 25 billion. the headline seems to be closer to 21 billion but it's a transaction we think makes a lot of sense. if you think about the spin of visa when they were spun out back in 2008, you know, they opted not to acquire the entity and there have been some pretty clear language in the s1 that they would be the first buyer of refusal. off the back of that predetermined multiples. really the only multiple is what that multiple would be.

it makes sense if you think about the competitive landscape. they should easily acquire it. >> you have an outperform on visa. consumer spending and retail sales, is there another metric that you're looking at? >> great question. you know, the interesting thing about visa is there are so many secular growth opportunities beyond the consumer and the u.s. if you think about the transition towards electronic payments, that's been a real nice incremental tail wind for the company. the international growth notwithstanding europe, there's so many things if you think about the growth that they've really powered through relative to where the consumer is in the u.s. very strong organic growth. we actually look for that to accelerate over the course of the next 12 months aided by consumers continuing to spend the fuel dividend that until recently they've been not willing to spend. they've had a couple of large

portfolio wins between u.s.a., the costco portfolio as well as some business from jpmorgan. so just really, really good sto story. they've put up 12% organic growth last year. we look for acceleration and just again a real nice story from a fundamental perspective. >> kevin, to round things off you said a secular tail wind for digitization for visa. how are they moving forward with something that supports their investment case? >> it's been a fascinating, you know, issue that has unfolded over the last year or so. to me the most important thing you've seen is actually apple pay coming in and actually opting to work with visa and master card as opposed to creating another network. we have the card issue on one side, the merchants on the

other, you have veeisa and mast card on the other side. even as you go into a mobile world you have competitiveness across apple pay, even chase pays, that comes up. what you're seeing is a focus on the networks. i think part of that is they're embedded. they have rate security. you've seen fraud become more and more complex you're seeing not only the merchants but also the card issuing banks opt to, you know, have more of a cooperative agreement as opposed to competitive. >> kevin, thanks so much for joining us. kevin mcvai, managing director and head at mccory capitol. sprint is aiming to slash its expenses by as much as $2.5 billion next year. this includes through layoffs and a wide range of cost controls. sprint says it will provide more details of the job cuts on tuesday. "wall street journal" says among the perks to go, snacks in the

office. bottled water and yogurt. now as sprint cuts costs, including those free snacks that we mentioned, we're asking what company perks couldn't you live without? josh tweeted in. he's saying he would miss his gym and where he watches "worldwide exchange." tweet us @cnbcwex. wouldn't it be great if we had a gym? we don't have one of those. >> we don't have air con today. >> usually we do. we get free fruit, a little bit of a free kitchen. it's not ground breaking. not like a restaurant. >> i didn't know we got free coffee until will pointed it out today. >> do continue to get in touch. >> never told me. >> go to @cnbcwex. which perks could you live without?

let's talk about hsbc. the global bank as they taut themselves to be has beaten third quarter estimates despite the ongoing slowdown in china which has been weighing on its revenues. the bank had benefitted from a slew of one-off events. that includes a $1.4 billion event of settlements. hsbc declined to give us anymore details on the domicile review which is broadening a u.s. possible home for its headquarters in the future as well as hong kong being a contender to london. hsbc, you know, you kind of expected the beats in the third quarter given the comps from last year when you had to pay $1.4 billion in fines. revenues are now 4%. profits are up on the one-time benefit gains. china's still an ongoing concern because 3/4 of their profits and revenues still comes from the asian pacific. >> absolutely. china's still a big concern. the other concern is one-time

costs have fallen out. share prices being negative, their highlights for investors are still a concern that that can come back in the future. as you say, it's the profit number that's been massaged by this. >> no more clarity on where they're going to headquarter in the future. the u.s. might be possible along with hong kong. >> it's a big outstanding question now and they're drawing it out because they don't want to give that clear answer yet. we're still wondering if they'll move away from london. >> we'll tell you when we know. >> really helpful. thanks very much. let's talk about the world series and kansas city celebrating today with the kansas city royals, yes, they are baseball's world champions in 2015 after rallying to top the new york mets 7-2 in 12 innings. the royals tied the game with two outs in the ninth to force extra innings before erupting for five runs at the top of the 12th to pull away. the title is the second ever for

the world's franchise. the team's first since 1985. congratulations. there you go. in the nfl, the denver broncos defense stifled aaron rodgers and the green bay packers. the broncos rolled to a 29-10 victory. the broncos held rogers to a career low of 77 passing yards. the broncos rumbled for 500 yards and three rushing touchdowns to remain undefeated. quick look around the rest of the nfl. busy sunday. new orleans quarterback drew brees tying an nfl record with seven touchdown passes. the saints topping the new york giants in a shootout 52-49 in a wild one. baltimore kicker justin tucker kicking the game-winning field goal as the clock ran out. the ravens topped the raiders. derek carr passing for 333 yards, four scores as the

raiders rolled over the new york jets. the cincinnati bengals rolled to top the pittsburgh steelers to remain undefeated. still to come on the program, kneel neal sadaka, "br up is hard to do ", you no they song? >> before your time. >> that may be the case in the corporate world. now they're calling on aig to do just that.

today hp as we know it is splitting up after 76 years. we have meg whitman. they're calling hpq. investors didn't like this split, will. the stock has been down some 27% since they announced it. revenues are down 8% year on year. tough job ahead. >> right. the split is right on. it will be interesting to see how investors rate these two different companies moving forward and what multiples they'll both be on. switching from hp. aig has clawed its way back from

the brink of disaster during the financial crisis and returning to profitability. but that hasn't stopped the insurer to consider a possible breakup of its own. let's get out to all of the details from landon. >> they have long been bullish on aig are calling for the company to shrink to greatness. they describe aig as slow moving, difficult to manage and complex. it's urging cost-cutting and asset sales. they're fighting valiantly to create value. the firm says aig is struggling to meet operating goals and is a systemically important institution. it comes on the heels of a public letter published by carl icahn last week advocating an aig breakup. he's calling for the company to split into three separate entities. when they get more competitive

and it's supported by john paulson who has a 1% stock in aig. aig's board is discussing a spinoff or sale of the mortgage insurance business. aig reports third quarter results after the third quarter. analysts suggest a sharp decline in profit as they have been hurt by low interest rates and pricing pressures. the insurer is believed to have an explosion in china and faces a write judown of the investmen. aig in europe, shares are down more than 1%. susan, back to you. >> landon dowdy at cnbc hq. u.s. futures holding onto the flat line after a shocked factory is down. chipotle closes restaurants in seattle and portland, oregon, due to a reported e-coli outbreak. visa reports before the bell

but all eyes are on them that they will buy out visa europe.

welcome back. let's just sum up for you some pmi data we have out of europe. which overall was pretty mixed. disappointing to mixed you would say. spain underwhelming. italy, the most positive at 51.4. france stayed basically flat but still above 50 at 50.6. 51.2 down to 51.3. let's see what that means for the trade. when you factor in how positive october was, the dax is up. france and italy above flat. the ftse 100 is down. lagging down 0.3%. some pmis elsewhere. >> two from china in the last 24

hours. the official ones we got over the weekend showing a third straight month of contraction. the others deal with the state-owned enterprise of the larger state-run enterprises. the smaller one is called the ticene, still looking at a slower pace of depreciation or contraction as you want to call it. still, below the boom/bust line of 50. that's a bit concerning. weighing, by the way, into the services pmi which saw the worst read in seven years. that helped drag down the asian section with the japanese benchmark falling 2% down from 10-month highs. there's some pressure today and concerns about where, you know, the china market is going, where china's economy is going. u.s. futures since we are coming off five street weeks of gains, best month since 2011 in october. by the way, still looking at four straight weeks of declines. implied open is higher by 1.5

points for the s&p 500. dow jones industrial at 32 points. the nasdaq could be seeing an advance of 9 points, wolf. let's bring in todd howoritz. todd, great to have you with us. such a strong bounce back in october. does that mean november and december are going to be flat at best? >> good morning, wolf. good morning, susan. i think that it doesn't really matter right here. you could probably look for the markets to try to work their way higher. as long be as the interest rates remain where they are, as long be as the fed can communicate to day trade the market and the chase for yield will continue, there's really no place else to go. if you've got money to invest, there's one place you can go. there are dramatic perform maps. here we look at a potential.

we might see some profit taking here. again, i would not be surprised, as bearish as i am, i am certainly negative, i would not be surprised to see a run at the all-time highs in october. >> you have a big week ahead. facebook and the non-pharm payrolls and janet yellen on capitol hill. >> it will be busy. facebook expecting big numbers. back over 100. little bit of a selloff on friday. you have the non-pharm payrolls coming out. we're going to see probably more of the same lousy numbers. the bond market itself is saying there's going to be an interest rate increase in december. i really don't see that going to happen. i doubt -- it's hard for me to imagine that the fed would actually raise and bring coal to the christmas stockings of the investors by raising in december. the bond market in gold is telling us that they believe

that there is definitely going to be a rate increase this year. i don't see it. that's what the markets are showing us. >> okay. great stuff, todd. thank you so much for joining us today. much appreciated. todd horowitz from the cme in chicago. right. that's it for us here. the debut in europe. stay tuned. we'll be back after the break with an exclusive interview with the cfo of the german commerzbank. >> viewers state side as usual, u.s. "squawk box" is coming your way next. my language skills,

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good morning. all about the data this week. it's all building up to the big jobs report on friday. if that's not enough to keep investors busy, there's more than a dozen, yeah, that's right, maybe even be a baker's dozen fed speeches planned including capitol hill testimony from chair janet yellen herself. oil prices dropping right now. new this morning, we're learning more hedge funds are now shorting crude rather than going long. and a developing story, chipotle closing all of the restaurants in seattle and portland after a reported outbreak of e-coli. 30 years in the making, the

kansas city royals win their first world series since 1985 beating the mets with a ninth -- a rally in the ninth inning and a 12-inning victory where they scored five runs. it's monday, november 2nd, 2015, "squawk box" begins right now. ♪ ♪ good morning, everybody. welcome to "squawk box" on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. asian stocks selling off over the night. the pmi showing trouble for the country's manufacturing sector. contracting for an eighth straight month. though the pace of declines slowed in october, but you can see what that did to asian stocks. the hang seng was dow