good morning. global market alert the pound plunging to 31 year low amid brexit fears. latest comments from british prime minister teresa may straight ahead. a developing story. will deutsche bank strike a favorable deal with the doj. live report from frunk further coming up. race to the white house. vice presidential candidate tim kaine and mike pence prepare to square off tonight. it's tuesday, october the 4th, 2016. "worldwide exchange" begins right now.

good morning. i'm wilfred frost. good morning to you. >> good morning. >> great to have you with us. let's check on global market action. yesterday a little bit soft around about a third of 1%. but we were off the lows of the day by the close finding a little bit of impetus in the second half of the day. we're higher by sort of similar amount to what we decline yesterday, 35 points for the dow, 3.4 for the s&p and nasdaq 16 points higher. let's have a look at the pound sterling dropping to the weakest level against the dollar since june 1985, the plunge in the currency coming off the uk prime minister teresa may said she would trigger brexit at the start, the brexit discussions by the end of march. we're down half a percent. we were down the best part of 1% earlier but half an hour ago we got uk construction data which

was showing positive growth for the first time in quite a few months. so that was unexpect pandemic come off the lows of the day but still down as we were yesterday as we were over the weekend. 127.73 for the british pound. >> a positive session for european equities. take a look at the ftse 100. it continues its recent out performance given the massive depreciation we're looking at the sterling. that's helping fuel uk equities higher. ftse 100 above 7,000 the first time since june of 2015. a pose tip session for germany, italy and spain. mainland china is closed for week long celebrations. japanese nikkei being held by a weaker yen. one of those days where currency is playing a big role in moving the equity market by .8 of a percent. hong kong, we're expecting an

indian central bank decision very shortly. oil prices are up -- no they are not. softer having been up yesterday. 48.45 for wti. wti was up 1.2% yesterday. let's look at the dollar. some big moves today of dollar strength against the euro bio.3% against the yen of 0.7%, and for the panel as we said earlier it was a 1% move now half a percent move but the pound slipping and going below some of the support levels we had seen since brexit so questions out there amongst currency traders about how much further this could slip in the short term. treasury note back to 1.6%. we've come back from those lows hit last week during the peak of the risk off sentiment in and around deutsche bank. a little bit of impetus in terms

of risk sentiment ass to concerns of deutsche have eased 1.62%. gold prices very quickly to round things off at the moment are a little softer, well fraction they are flat 1312 for gold. >> india central bank meeting today announcing they are cutting their rate by 25 basis points. this just in to 6.25%. that's the lowest level in six years. first monetary policy meeting with the new rbi governor. he took over. cutting rates by 25 basis points. being helped by the fact that inflation has been on the move lower, helped them due in fact to the drop in oil prices but definitely something we're watching here to see if it impacts indian and asian equities. to this morning's top corporate showers, shares of deutsche bank rising. markets in germany were closed for a public holiday yesterday. big question will the justice department settlement be

favorable to the bank? deutsche bank guesting a strong vote confidence from big name competitor on wall street, jpmorgan chairman jamie dimon believes the german lender will be just fine. >> there is no reason that deutsche bank shouldn't get over its problems. they have plenty of capital, play liquidity and we want all our, all these banks to get through because it's better for everybody that we move on and help do our jobs. now nor on the deutsche drama, julia joins us live from the bank's headquarters in frankfurt. >> reporter: good morning. as you guys quite rightly said the share price lifting in the european session, obviously the stock market closed yesterday. i think this is a bit of catch up on the rumor driven rally we saw in friday's session just finding bit of equilibrium. we could make the argument that $5.4 billion settlement rumor is back in the price here now so

that's your benchmark when we get this settlement number. the question is if and when. the news here in germany is based on politics. bit of push back we're seeing on those comments that we heard from the deputy chancellor. remember i was telling you yesterday he was criticizing deutsche bank saying hang on a second, this is a bank that made speculation into a business model and now it's complaining about being the victim of speculation. people are saying the vice chancellor also the economy minister, remember, should not be making these comments. remember we know why. there's an election coming up. this is about posturing. a recent poll that was done after these rumors started saying 69% of germans that responded don't want to see deutsche bank helped. 24% on the other hand said they would. but you get the since these guys are savers they don't want to see taxpayer monies chopped off.

sentiment here still very awkward and we know this is politically toxic for merkel. guys it comes down to this number and we wait for the settlement deal. >> it's not the hardest thing for a bank bail out if it becomes necessary. what's the response across the rest of europe plrl ita, partic italy and greece. if germany decided to break those rules to bail themselves out yet clearest message yet that eu is run by germany for germany, wouldn't it? >> did you say bail out or bail in there? because you're absolutely right. depends which way they would go. what germany would get away with, i know. but the point is even if germany decided to use this get out clause on bail in, and say look this is a systemic bank they would be very hard pressed not to see kind of bail in of even junior bond holders here because you're absolutely right.

italy would be up in arms. greece would be up in arms. remember wolfgang was the key proponent in berlin. pretty tense times. to go back to your point does germany rule for europe? rule for one country and one rule for everybody else. ouch. >> thank you. i would add to what julia's opening point was that yes we're up in european trade today, but europe hasn't traded since friday lunch time on this so is that pull back from where the adr went on friday and largely because that friday move in the adr was pricing in the deal very soon around $8.5 billion. we can expect them to pull back a bit today but not a collapse in the share price. we stabilized but haven't got the deal. but friday's moves expected. >> the eye of the storm is deutsche bank shares. something to watch in today's trade. some fed speak on today's

economic agenda at 8:00 a.m. eastern we'll hear from richmond fed president and then at 8:00 p.m. eastern chicago fed president will speak. he's a voting fomc member. darden restaurants, the parent of olive garden reporting results before the bell and get results from micron tech after the close. coming up on "worldwide exchange" this morning top market stories including the plunge in the pound. a live report from london straight ahead. >> today's twitter and facebook question clinton versus jamie dimon who has it right? has the bashing of wells fargo and john stumpf gone too far? your option yes, nothing criminal going there or no banks are evil. get involved with us. much more discussion coming up on "worldwide exchange" in just a couple of minutes.

spraegs r

welcome back to "worldwide exchange". very good morning to you. yesterday we lost about a quarter to a third of a percent. today we're expected to open up by about that same amount of losses from yesterday. we did come off the lows of yesterday afternoon performance better than morning. we're up by a quarter of percent in the pre-market or 42 points for the dow. the pound hit a fresh 31 year low earlier in today's session. slightly off the loss of the day down about half a percent. european trade off the back of that let's have a quick look, ftse 100 soar because of that. same was true yesterday.

germany up 0.8%. let's get more on the details of what's moving the likes of the pound and ftse 100. louisa bojesen joins us from london. >> hi, wilfred. it's really interesting to see what this drop in the pound is doing, the likes of rolls royce, for example trading up. likes of pearson trading up. you have to remember a lot of these exporters are benefiting from this very weak pound environment. real boost to them. 75% of the ftse 100 comes from outside the uk in terms of some of these multi-nationals when looking at the revenue picture. that's what we're seeing. rolls royce higher by 3%. pearson sitting up there nicely with a 5% gain. vast majority much uk stocks trading in positive territory. we're seeing a lot of green on our screens this morning. important to note many analysts this morning, the uk chancellor,

finance minister laid out his vision for what happens to a brerkt scenario and more commentary from theresa may. many people seeing that as a turning point and quite a bit of criticism if you look online if you're in the states at the ft this morning talking about how this is going to be a real problem and he talked about theresa may essentially has been walking into this brexit trap announcing a date where you trig an exit of march of 2017 but having to renegotiate a divorce and these big trade deals in the course two of years not a lot of leeway or time. instead what could have been more preferred is you have some type of preliminary agreement agreed first when it comes to some of the trade negotiations especially and then you trigger this article 50 date. that would have been the smarter way. that's what people are commenting this morning. just in comparison switzerland, for example, a lot of analysts comparing the uk and what we're

about to go through here with the swiss and the independence scenario that the swiss laid out for themselves many years ago. their trade deals it took nine years for them to negotiate their trade deals before they came to fruition. they are a tiny economy in europe compared to tuck. something like the 16th largest economy in europe where the uk sits up there among the big three. so you're looking at a different scenario and different way of doing things. some are saying it's very reckless what theresa may is doing, it's driven by politics not driven by national interest and should be driven by national interest. it's a time frame issue out there. coming back to some of these market moves, the pound, it's interesting because, again, a lot of fx analysts are saying you're still looking at very low levels of liquidity. you got two years to go before anything will happen and a lot of people are boosting that long dollar position given the

expectations for still a potential rate hike. >> thank you very much for that and the pound, of course, off the loss of the day given tuck construction data. >> it will be a messy divorce. i just wonder if we can stick with this deadline that has been proposed by the prime minister for ten of march. doesn't seem like enough time. >> i disagree. now that they set the date we'll definitely see article 50 invoked. the uncertainty comes 2019 years that's follows in how the neerks go. the pound certainly reacting the. still to come we'll get you ready for tonight's one and only vice presidential debate. hillary clinton goes after what she calls koub culture on wall street. see what jamie dimon has to say about the candidate's comments. as we head to break here's today's national forecast from the weather channel. good tuesday. we got a busy weather pattern. today one front tracking across the middle of the country could

see severe weather, damaging winds. then isolated risk of a tornado. plus you got a lot of heat building across parts of the south. temperatures back up above average. northeast another cool day. northwest another system bringing snow to mountains of wyoming and montana. this weather pattern will help shape when it comes to matthew which today be approaching haiti and cuba and continues trook through the bahamas in the coming days. we'll keep watch on it. the whole eastern seaboard needs to watch matthew. that's our latest coast to coast forecast. "worldwide exchange" continues after this. up that stock again? well you need to think about selling some of it. my dad gave me those shares, you know. he ran that company. i get it. but you know i think you own too much. gotta manage your risk.

and you've gotta switch to decaf. an honest opinion, even if you disagree. with 13,000 financial advisors, it's how edward jones makes sense of investing.

. welcome back. we'll get you up to speed on the market action. u.s. futures are pointing to a higher open. the dow calling for a higher open by 38 points. nasdaq higher by 17. s&p higher by four. this of course after stocks in asia closed higher. european stocks also in positive territory. a lot of to us the on the ftse 100 which is trading at its highest level since june of 2015. and a lot of eyes on politics with the vice presidential debate tonight. hurricane matthew is expected to pass the east coast of jamaica tonight but officials warn the island is not in the clear just yet. nbc's michael disappears reports from kingston, jamaica. >> reporter: dangerous storm

surge. hurricane matthew felt along jamaica's coastline monday. >> it's going to be bad. >> reporter: earlier in the day a close call. a kid nearly pulled out to sea saved. east of kingston rain from hurricane matthew caused flooding. people evacuated their homes to shelters. >> we have both coastline issues and interior mountainous issues. >> reporter: 500 people turned to shelters to escape flooding by monday. >> we're trying to make last minute arrangements to make sure shelters have proper facilities. to keep the people as comfortable as possible. >> reporter: we tried to take a helicopter there but ran into bad weather and had to turn around. kids across the island will stay home for another day tuesday. as officials warn tropical storm conditions from hurricane matthew may still cause devastating landslides and more

flooding. >> still rain. a lot of wind. we know what this one will be. >> the eye of the storm is expected to pass near the southwestern tip of haiti this morning before heading on to eastern cuba. now on to politics. the vice presidential nominees mike pence and tim kaine will square off tonight in battleground virginia for their one and only one on one debate. tracie potts joins us live from washington. are we expecting fireworks? >> reporter: probably not like what we saw in the previous debate although this is their one and only chance to introduce themselves in a substantive way to voters who may not have gotten to know tim kaine and mike pence on the campaign trail. republican mike pence already in virginia giving a hint what he'll focus on tonight. >> hillary clinton's record on foreign affairs alone could take up the whole 90 minutes and it wouldn't be a pretty picture. >> reporter: democrat tim kaine

is off the campaign trail presumably getting ready for his one and only debate. at times both have disagreed with their running mate. >> i knew,000 use the tax code to rebuild my company when others didn't have a through. >> reporter: the "new york times" report on donald trump's 1995 tax return has him explaining why he took a big loss. nearly a billion dollars in one year. qualifying for nearly two decades of zero taxes. >> what kind of a genius loses a billion dollars in the first place? >> reporter: trump hasn't confirmed or denied whether he avoided paying taxes. his supporters don't seem to care. >> any good businessman should never pay taxes. >> zero taxes means zero for our vets, zero for our military, zero for pell grants to send young people to college, zero for health, zero for education. >> reporter: hillary clinton is in pennsylvania today with bill

clinton, michele obama, bernie sanders and elizabeth warren all out campaigning for her. donald trump is in arizona today but he's also picking up a key endorsement, the ohio police union. in ohio he's five points ahead. >> is the vice presidential debate going more about the individuals or about their superior running mates? >> reporter: it could be a lot more about their running mates because there's so many issues to address and because these individuals, pence and tim kaine are not as well-known. it could a lot more about policy because you got a governor, a senator who is a former governor, who are very conversant in some of these policy issues that were questionable in the other debate. there was a big question whether or not donald trump would get into that. these vice presidential candidates are a bit different. the rule for vice presidential debates tends to be do no harm. they want to come out of this clean. whether they win the debate or not, not doing any harm to the

ticket. >> thank you very much. that's tracie potts live in washington. now we're hearing a lot of wall street bashing on the campaign trail. here's hillary clinton yesterday. >> it is outrageous that eight years after a cowboy culture on wall street wrecked our economy we're still seeing powerful bankers playing fast and loose with the law. >> jpmorgan chairman and ceo jamie dimon respond during an interview on "power lunch" yesterday. >> when people blanket a whole class of people by making statements that's unfair to everybody. i could do the same thing about media, about politicians or lawyers and they are never accurate. this business is full of high quality qualified talented ethical people, smart and ethical as you'll find in stooss almost anywhere. i wish people would stop doing that and figure out pembroke the law should be punished. but let's take a deep breath.

you all in the press don't have to fuel it which is adding to it and oversimplifying it. >> the battle for the white house is extending to internet domain names. clintonkaine.com has negative headlines about hillary clinton and tim kaine with a small tag who owns the site. the former owner bought it for $7. he sold it for $15,000 after the chinn campaign offered 2,000. the trump campaign bought jeb bush.com which redirected people to its official website. the bottom line is they are doing whatever they can to control the message. >> but i suppose you can't blame the original owner. he got 15 instead of 2,000. fair enough. moving on to sports you and monday night football the minnesota vikings playing host

to the jets. things went the vikings way in the first half, quarterback sam bradford found tight end carl rudolph in the end zone for the score to put minnesota up 14-0. vikings beat the giants 14-10. minnesota is 4-0 for the first time since 2009. coming up this morning's top stories including the plunging pound. now at a 31 year low. why facebook new marketplace is trending for all the wrong reasons. stay tuned. you're watching "worldwide exchange," first on cnbc.

good morning. a sterling stumble. the pound trading near its lowest level since june of 1985. >> financials in focus. can deutsche bank strike a favorable deal with the doj. we'll talk expectations coming up. >> video gone viral. a pant suit flash mob pays homage to hillary clinton's wardrobe staple. you're watching "worldwide exchange" on cnbc. good morning. very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. welcome, seema. great to have you with us. yesterday we lost around about a quarter to a third of 1% but we

are off the lows today. today we're expected to open higher. 46 points for the dow. five for the s&p and 19 for the nasdaq. so about a third of 1% higher expected to open. big story this morning or big move sterling dropping to the weakest level against the dollar since june of 1985. plunge in the currency after uk prime minister theresa may said she would trigger the start of a brexit by the end of march. we're down three quarters of 1%. we moved around a bit. some construction data brought a bit of reprieve. no real news developments on the brexit front today overnight compared to the weekend but i think we're testing new levels. since brexit we found a range of 129 to 134. now people are trying to work out where the new range will be. >> the brexit now seems more real after those comments from the prime minister, theresa may. as you said we've seen the move

in the pound, depreciation currency. ftse 100 back above 7,000. we're looking at stocks in germany, italy and spain higher on the day. in asia, mainland china is closed for golden week celebrations. india's central bank announcing a surprise 25 basis points cut to 6.25%. first rate cut we've seen in quite some time. bond base index higher by .4. >> broader markets, oil prices are a little softer today. we had some strength yesterday and of course had strength, significant strength in the last week or so losing .8 of 1% this morning. the dollar is stronger today against the major currencies about a third of 1%. against the euro, 0.7% against the yen, 102.35 and the pound a decent move to the down side, dollar higher by three quarters

of 1%. the ten year note has moved off the loss in terms of yield that we saw last week in and around the peak of the risk of sentiment. we touched 1.5%. now back above 1.6%. gold prices were flat. above the 1300 level. we're still 1311. >> at 8:00 oom we'll here from jeffrey lacker and then at 8:00 p.m. we'll hear from charles evans. he's a voting fomc member. darden restaurants parents of olive garden will report and we'll hear from micron after the bell. among today's top corporate news shares of deutsche bank rising. markets were closed yesterday for a public holiday. will the justice department be

favorable to the bank. deutsche bank also getting a strong. vote confidence of a big name competitor on wall street, jpmorgan chairman jamie dimon believes the german lender will be just fine. >> there's no reason that deutsche bank shouldn't get over its problems. they have plenty of capital, plenty of liquidity and we want all our, all these banks to get through because it's better for, if everybody we move on and help do our job. >> slight gains deutsche bank stock today. will represent a small pull back from the adr given that this is the first time that the european stock has traded since friday lunch time. a slight gain today is in fact a pull fwrak where the adr got to on friday. the deal has not been announced yet. we're not seeing a big settlement. deutsche bank not the only financial firm feeling the heat. wells fargo coming under attack for its sales practices. john stumpf called before

congress twice. here's what jamie dimon had to say about that yesterday. >> i don't know about congress but we've obviously been asked by multiple agencies. this always happens. this is standard. someone does something wrong in the industry, everybody else gets question from everybody else. >> that slight bit of news yesterday on this story because we've heard the congress. . man last week saying other banks should be looked into. no wrongdoing been found in other banks. we're not sure if they have to wait and see if other wrong doing. jamie dimon said it's not congressman various regulators and agencies are asking. wells fargo has infected the wider sector. no sign of wrongdoing by the likes of jamie dimon and jpmorgan. >> these two major banks have captivated the attention of investors. do we know if that

renegotiation, washington, john crine will come together. >> john crine is traveling to the u.s. for the imf meeting. he'll use that presence in washington to speak to the doj. this comes back to where we settle. market move on friday afternoon suggests the deal was imminent. it was expected over the weekend based on that share price move. we haven't had that yet. as time slips away i think we can see the share price shaken again. things are quite calm. if we walked away another couple of weeks you might see some pressure. >> absolutely. let's switch focus 0 tech. google is holding an event in san francisco today where it's expected to introduce new hardware to potentially take on amazon and apple. landon dowdy joins us now with a preview of what to expect. >> google is searching for success in gadgets and it's

expected to ramp up its product portfolio at the event today and in the most strategically important product may be google home, voice activated speaker to channel amazon's echo and expect more details. other products in the room, google has struggled in the mobile home market which is dominated by samsung and am. their phones are expected to run google's latest high end android features and to cost more than $600. directly competing with the leading player the iphone. google's video streaming strict chrome cast which will support 4 k quality and expected to show off the new day dream head set for gamers to spread internet connectivity throughout your home. >> virtual reality sounds fun. i wonder why gog simple attempting to really get into

the smartphone market again when apple is clearly the dominant player. are they wasting time? >> it will be a low margin for them because they are outsourcing the aspect. they want to try to control the hard ware as well as they do the software. have to wait and see if it works. low margin business when at a time margins are coming down. thank you very much. more stocks to watch today. astrazeneca says its heart drug failed to show a benefit. the setback follows similar disappointing results in march for stroke patients. no real move in the share price. team health a top physicians service company is buying florida emergency physicians. terms haven't been disclosed. they provide emergency medicine staffing for patients across florida. cypress semiconductor is

caught 500 jobs or 8% of its workforce. it's off.2 of 1%. >> salesforce is buying crux. it already has a partnership with salesforce. lvmh is buying a majority stake in a german luggage maker. known for its high end aluminum suitcases. lvmh is higher by 2%. ericcson cutting 3,000 jobs in sweden. cuts will come from the company's sales, production and research development team. that stock also hire. jpmorgan chase is preparing to pull its chase atms from

walgreen stores. this serena williams from an agreement the bank made in april to sell over 2,500 cash machines to the atm operator. the deal affects nine states in the u.s. including stores in arizona and the chicago area. switching gears now to today's top trending stories. kim kardashian has returned to the u.s. after she was robbed at gunpoint in a private apartment in paris early yesterday morning. husband kanye west postponed two concerts in philadelphia and detroit. he cut short a show in new york telling a family emergency. kim and other family members have been silent so far on social media. that toledo conspiracy theories over whether or not that was publicity stunt. it seems surely that it wasn't. >> very scary situation. a ring worth $4.5 million, a jewelry box worth $5 million stolen. developing story we'll don't

keep an eye on. moving on to social media, facebook's new marketplace site. the social network launching the app yesterday allowing users to buy and sell to each other through this mobile app similar to craigslist. within hours users were selling things that you can't sex, drugs and body parts. facebook issuing an apology saying a technical issue prevented it from identifying votes that violate its standards. >> as long as nothing real wrong happened, big hype for this market. still don't get it right. >> no start up. facebook the biggest social media furm. they didn't have these measures in place ahead of time is questionable. here's a unique way people are showing support for hillary clinton. flash mob in new york city paying tribute to hillary clinton's favorite fashion choice pant suits. more than 200 dancers in new york city's union square

starting to gain traction. organizers said it was meant to serve as a rallying cry for the democratic candidate. >> can you dance that way? >> no. >> we'll work on those. >> i like the idea of a fashion mob. >> i don't know if it's a new york thing. more of an american thing. >> we should get one started. >> coming up on today's show we're looking at the must reads this morning, plus we'll check out how europe is fairing in early trade. a 31 year low. say tuned. you're watching "worldwide exchange," we're first in business worldwide. switched t. sprint? i'm hearing good things about the network. all the networks are great now. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs.

switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com.

now to this morning's must read stories catching our attention in the "financial times". my pick is titled selloff in european banks fails to hit u.s. peers. the author outlining key points why u.s. banks are faring better than european peers. first u.s. banks in decent shape in terms of capital. secondly negotiate worries are behind them. regulators are doing a better job. contagion risks are limited because nobody think deutsche bank will fail. mainly focused on the share price moves. all four of those points

relevant for the fundamental median and longer term strength of u.s. banks over european banks. and the interest rate picture not pretty here but very ugly in europe. it all comes down to earning season. if financials can buck the trend, report earnings that are decent or surprise to the upside this could be a great entry point for a lot of these beaten down banking names. >> interestingly both key one and key two beat expectations. despite the tough picture they all have been making profits this year which is a turn out to past years. they've been beaten up for various other reasons. >> and keeping rates lower. >> the real thing is expectations. >> my pick is in the "wall street journal". apology of donald trump. the writer got a copy of what he says is trump's speech that will come out later this afternoon. he quotes trump let me tell you

something the pollsters have no clue. none. they don't have a clue who the electorate is and they don't have a clue of what's going on in america. believe me, folks, on election day they're going to find out. he's trying to put cold water showing hillary clinton is picking up momentum. it does bring back memories what happened on brexit. opinion polls suggesting the vote is much closer than it is and outcome being very different than what the polls showed. >> no doubt he galvanizes the support of people that have traditionally not voted before and probably never been polled before. does that offset a large portion of middle ground traditional republican voters. we'll have to wait. approaching the top of the hour. the team is getting ready for "squawk box". joe kernen has a look on what's coming up. good morning. >> you mean like those people out in the back woods that ain't never heard no vote magazine shin before going to vote this year and vote for donald trump? that people you talking about,

wilfred? >> that's exactly right. >> yeah. okay. i never even thought about voting before. they never seen one of those voting machines those trump voters. i was shocked at the piece. i was thinking about 52-48. that's where it was, wilfred the night before. 52-48 and even the betting houses were 80% for brexit and didn't it come out 52-48 the other way? we're told it's a three-point margin of error. is that eight points? >> that's correct. >> that's crazy. now how about farc. when you were saying this yesterday and i got nervous. >> it was closer. >> when you said farc, you get at me for talking about that other english word you were trading close -- but that was supposedly 66-33. that was 2-1.

2-1 down there and it was very close. quarter of a point. >> i couldn't agree more. that's what we were making the term the polls hard to one. >> he's been like the biggest never trump out there. i was reading it. i'm waiting for the -- another guy who wrote a great piece today, andrew ross sorkin in the "new york times" saying you want to see people that really know how to use the tax code u-got to go to the big corporations. you got to look at companies that actually merge with other companies to get net operating loss carry forwards. that actually happens. or look at apple. >> citigroup had huge deferred tax assets. >> even though they got bailed out. they got bailed out. if you're bankrupt you don't get to keep your nols. or apple. these guys have hundreds and hundreds of accountants that look at ways to do things. and they feel justified. i'm not criticizing them. the money they can save they can

use for plant, for innovation, for expansion, for hiring jobs, for taking risk in the private-sector. if you want to change the tax code change it. i feel like we're in suspended animation. all we're talking about today this debating tonight. robby mook and kellyanne conway. both campaign managers coming in. so, you know, we're a business network but this is important and it's something we'll cover. earnings season which, you know, seems like it comes every three months or so. it's constant. you're coming in -- becky is coming in on my tease she felt so strongly. >> there's a business angle we can take with both of these candidates. >> one is pro business and one probably isn't pro business. we will talk to both of these, kellyanne conway also. can you do that imitation of like a back woods person like i did it for you >> give me another hit and i'll

try to give it a go. >> i'll see you tomorrow. >> i'll see you tomorrow. >> got to know how to work them voting machines. >> they need help to decide which way to vote. we'll see you on "squawk box" in six minutes time. >> vote for that donald trump guy. >> see you in six minutes. >> you haven't spent enough time in america. a lot to look forward to. coming up on "worldwide exchange," jobs are in focus with the u.s. employment report. will that be a game changer for the fed and markets. that's coming out on friday. we'll ask the chief u.s. analyst at barclays. that's coming up. you're watching "worldwide exchange" on cnbc. michael gappeen

welcome back to "worldwide exchange". let's look at the ten year note. it's above 1 pipe 6%. we hit 1.5% he had peak of the

deutsche bank riskoff. let's discuss markets now with michael gapen. michael, have markets moved on from the fear we might get some contagion from europe last week? >> largely there has. there's some risk events that the market is dealing with. you mentioned some issues coming out of europe including deutsche bank. for the moment the market has largely moved beyond those although there seems to be a cloud of risk factors that we're certainly paying attention to over time and the market will react quickly to them should they percolate to the surface again. >> we're moving ahead to friday's job print which is crucial. some inflation data as well has been pretty decent here stateside. what's your latest take for the strength of the u.s. economy underlying? >> we think the economy is doing fine. we were expecting a bit of a bounce back in the second half of the year. our tracking estimate for growth

in the third quarter has been bouncing around two and a half. had very decent auto sale numbers. consumption should be fairly strong in the third quarter. we're looking for a second half that's about 2.5% versus sub 1% we saw in the first half of the year. really what's happening there the industrial side of the economy seems to stabilizing. we had a lot of pmi data globally just yesterday. so whether it's china or europe or the u.s. the manufacturing sector globally seems to stabilizing. and that does mean you get a sequential upturn in growth. sectors that were dragging you lower no long are doing that at least in the third quarter. that bodes well for the outlook going into the fourth quarter as well. a modest improvement. >> if the jobs report strong this friday does that give the fed more ammunition to raise rates in december or do you think they will hold off given all the uncertainty around the presidential election? >> in terms of the fundamentals i want does give them wish would

give them more reason. they said that they believe we have some more room to run was yellen's phrase. and we did get an improvement in inflation, core pc e picked up to 1.7 year-on-year from 1.6. more evidence inflation is firming towards their mandate. if you got a healthy employment number with the decline in the unemployment rate then you have a little more on inflation, little more on markets. assuming you don't get any spill over risk from election. from the fundamental side it would give them more ammunition. >> we have to leave it there. thank you for joining us there. michael gapen of barclays. main thing to watch is deutsche bank. >> oil as well. traded above 50 now below that. >> absolutely right. deutsche bank up in european trade, about 1% but that is a decline from the adr moves we've

seen friday and monday. that's it for "worldwide exchange". "squawk box" is coming up next.

good morning. u.s. stocks looking for a higher open but the pound plunging to a 31 year low amid brexit fears that caused the ftse to be strong. a full market rundown straight ahead. and developing story continuing to develop. will deutsche bank strike a favorable deal with the doj. we got the latest from germany. race for the white house, vice presidential candidates tim kaine and mike pence prepare to square off tonight in their one on one debate. it's tuesday, october 4th, 2016 and "squawk box" begins right now. ♪

>> announcer: live from new york where business never sleeps this is "squawk box". good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. take a look at u.s. equity futures. dow futures are up by 30 points. s&p up by three. nasdaq up by 15. those futures at this point building on yesterday's gains. overnight in asia mainland china once again closed for golden week celebrations but the nikkei was up .8 of one percent. shanghai composite up by a quarter percent. those green arrows are continuing. dax up by .6 of a percent. the cac is up by close to a percent. ftse that's kind of taking off. direct relation to some weakness in sterling. ftse looks like it's up by 1.6% this morning. take a look at crude another strong mover from yesterday. giving back a little bit