is falling compared to european markets, it's half what the european markets have done. so it is a case of sentiment driving the u.s. to a certain degree. there are some concerns about industry policy in the u.s. and around fed inflection points we do get volatility this time out. so the u.s. is kind of playing catch-up. and in the u.s., it feels like it could have another couple of sessions to just bottom out where the levels are. but europe, i think, has seen the sell-off. and interestingly, it's probably a good value right now. >> earnings will take center stage in the u.s. analysts saying 4.5% jump in profitability this earning season. do you think earnings could, in fact, provide a rescue to the stock market? >> absolutely. that's what we see in the current quarter with earnings kicking it off. you have 50 companies reporting this week. and that will give us a good cue. and overall earnings have been relatively robust. the weakness we have seen in europe, we have seen the negative side of it, but what we haven't yet seen is the impact of the ecb stimulus measure. th

let's have a look at european markets. it's been all changed during the trading session so far today. the ftse 100 is the laggard, down 0.6%. it's weighed down by tesco, which is off some 6%. but also weighed down by retail saels sales, which were in positive territory, up 2.7% year on year. but that was weaker than expected the and that's hurt the markets in the last hour or so. germany is up 0.4%. eurozone pmi data came in better than expected as did the specific german pmi data. that's listed markets having been down at the start of the day. france is up 0.25%. french pmi specifically didn't beat, but the rest of continental europe and the positive sentiment has helped that market into the green. italy is just below flat. let's look at bonds. the u.s. ten-year is at 2.23%. so yields have just started to pick up again over the last week. but certainly still a story of low yields. certainly still a story of yield compression over the last month as a whole. and we're at 2.23% on the u.s. ten-year. germany is at 0.88%. uk g

european markets open in the red after u.s. stocks had their worst day in october since 2011. # the russell 2011 was in correct territory. # >> the economic minister tells cnbc they're sticking with their growth forecast. >> the differences are so small between ours and theirs. so it depends. >> we speak to the ceo of lamborghini as it unwraps its latest luxury model at the paris auto show. others tell cnbc they're optimistic on a european recovery. >> the worst here is behind us. i think the necessary measures have been patient. there's still a lot of work to do. my job is to turn europe around. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> ecb meets today. the main re-phi rate is 0.05%. banks are repaying deposit catch at a rate of 0.2%. mario draghi announced the ecb will begin buying asset backed securities in a bid to expand the central bank's balance sheet to 2012 levels. >> and that is what makes today's press conference key for investors. top of the agenda, mr.

we have our european affairs editor. a rough morning. tell us. >> absolutely.e have to remind our viewers that exactly one month ago jean-claude juncker is the new president of the european commission and unveiled his lineup of commissioners. 27 in total one for each country minus luxembourg. each commissioner has been assigned a portfolio and now as part of the european system of checks and balances, it is up for the -- to the european parliament to grill the candidates. they must be confirmed by the parliament. they have the power to check their cv's, to see if there are any conflicts of interest. it is a pretty aggressive exercise. i was listening this morning. it was here's -- peirre's turn to lender -- to come under fire. liberals and conservatives were accusing him of being the ambassador of france and as such, questioning his right ability, reminding him that his country systematically breached the eu fiscal rules. but listen to what he had to say on that. -- let's listen to what he had to say on that. >> i am french, and i am a social democrat. i am not

the european banking chief executive will join us next. ♪ >> welcome back.et's take a look at your fx check. this is euro-dollar since the beginning of the year. it is down by 7.6%. after results from the european central bank stress test. currency at a two-year high. it could show business confidence stabilizes in germany. the big news from the ecb yesterday showed the stress test identified a total capital shortfall of 25 billion euros as of the end of 2013. all but the .3 5 billion euros of which has been made good by the banks. another of the banks was found lacking. the feeling is these stress tests should allay concerns about the health -- health of the euro area banks. todayg piece of data out is out of germany. it is the climate index, based on the survey of 7000 executives. economists expect that to be little change. the gauge was in september after pastning 1.5% for the three straight months. let's recap on the stress tests. have moreperformers than 6 billion euros. let's get to brussels and the chief executive of the banking federation. good morni

in recent european elections, the u.k. independence party, the skeptic party, came out first. >> david cameron acting angrily when he got the news about this bill. it shouldn't be that big of a surprise to him, should it? >> no. it follows the normal bureaucratic procedures in brussels. how the e.u. budget is established. in fact, chancellor angela merkel pointed out the only thing that came a bit sudden is the timing, how much time a member state is given to repay the amount in three weeks. that is a bit of a surprise. otherwise, britain has performed extreme and well economically and henw a bi that should be paid extra to the european budget. >> what about italy? italy is also furious. what is the story there? >> italy has its own row over its national budget because the european commission for the first time can reject national budgets of member states that have the euro. in the case of italy, the debt is not so much a -- that is not so much the problem, but italy has leaked the information they have been resized for th

now, in terms of the european markets right now, after we got the european bank stress tests, take alook at the red across the screen. the ftse 100 trading lower by 12 points. we got the german data weaker than expected. germany responding negatively to that 30 points on the day. italy showing a drop around 220 points by around 1.1%. wilfred? >>> well, let's give you the rundown of what to watch this trading day. the september read of pending sales is out at 10:00 a.m. eastern time following a previous gape. we also get october's data fed survey. a jam-packed day for earnings with major companies set to record. look at the results of merck, allergan and amgen as well as buffalo wild wings. >>> and the failed ecb stress tests exposed a 25 capital shortfall among the bank that is failed. the biggest capital shortfall was 2.1 billion euros. as you can see that's up 17.5%. by far the biggest faller from these results for bmps. even with a rise in 2.76% for commerz bank. and soc gen is down while major banks fared well. one to mention is lloyds bank that narrowly passed the test today dow

this is a european problem. that's why it is so high. >> let me ask you about the euro/dollar and your view over the next six months. a lot of people including david bloom are looking for the current 1.20 level. we are currently at 1.2695. >> i think the euro is in the $1.25 to $1.45 level. i think there's a degree at to which we'll stabilize. currency is not going to do anything for the short-term. it will improve or make something negative, but i think what will change net and going into the federal reserve meeting this week as well is the fact that people continue to sit around and wait for improvement in the u.s. numbers. it's not common but part of the international economy. hence the euro/dollar will get a little bit. >> when you look at it, one minute you have underestimated where we have gone and the next minute you say don't under estimate it in qe. >> very valid point, steve. but the fact at what is going to change the u.s. policy is not the federal reserve. it will always be dollars and every time the

a muted open for the european stoxx 600. activist investor carl icahn tells cnbc, new risks are forming. >> the high yield market is in a bubble. i think that sooner or later, it's going to -- but i'm not telling you next week or next month. that doesn't mean i'm right. in fact, i'm losing money on it right now. i think that that is a no-brain no-brainer, also. >>> yahoo! shares jump in frankfurt with better than expected third quarter revenue. but the pressure is still on as the company's online ad business continues to struggle. >> it's a mixed for earnings. >>> and david tapper turns bearish of the euro, taking a bet on further ecb easing. >> and we just had the minutes from the bank ooh england's meeting two weeks ago. as expected the vote was 7-2. mr. wheel and mr. mccafferty, the two that still continued to vote for a raise right. the other seven members continued to vote to keep rates on hold. we're going to bring in helia and advance. as expected, where they were, two out of nine votinger for a rate increase, lasted

i'm referring to peripheral european countries, where i think the european banking sector -- certainlytutions that were exposed to the periphery had to take very aggressive balance sheet contraction. that has had to knock on impact, in terms of those economies. it was in those peripheral countries where you have the demand for credit. but that the european banks could not, obviously, meet that demand. it is not a very clear picture, when you look at europe as a whole. i think in the peripheral, you have had demands for credit. but the banks have not been there. stress as part of the test exercise, the fact that you can allow european banks to actually build that capital base to make them more available for lending, i think that's important. i would agree that potentially, in some of the core european countries, there is potentially a lack of demand. that reveals a more structural issue. i don't want to portray the picture that now that we are finished with the copper heads of assessment of the european tank -- central bank, we will see a sudden spike in terms of a spike for credit. it

the european banks that did not pass the latest round of stress test carried out by the european central received confirmation today. >> public confirmation will only come on sunday. it is expected that about 10 of the 130 banks that were tested in europe fails. -- failed. some countries will have some explaining to do, but apparently all the german banks pass the test. >> managers and staff of many major banks will be doing overtime in the coming days. the european central bank has told institutions how they fared in banking stress test. the results will be made public on sunday. the ecb put the finances of 130 euros on banks under the microscope, including 24 from germany. the head of the lobby group says he sees no cause for concern. >> it was a strenuous exercise, both for the banks and the supervisors. but it was worth it. i'm totally convinced it will bring more stability. it was also an exercise that has never taken place before anywhere in the world. >> but critics say the test was not tough enough. >> is no german banks fail the test as exhibit expected, -- as is expected, then

either russian route or european route.n get this from one direction or a different direction. >> as i understand, the stocks now are not enough to get through winter, right? >> existing stocks with projected consumption, yes. >> thank you. ryan chilcote, thank you very much. andriy kobolyev, privileged to have you in the studio. coming up, humor. sales figures at kering. ucci gets no love from china. stay with us. ♪\ >> welcome back to "on the move ." here are some companies on the move this morning. ericsson reported a 9.4% drop in third-quarter profit. competition in the wireless network sector weighed on margins as the company works to expand other businesses. erickson says a decline in north america was offset growth in other regions. big push higher today after announcing plans to widen cost-cutting operations. the truck maker will reduce spending by an additional $480 million. operating income dropped more than 6%, falling short of estimates. cut its 2015 profit target by more than expected, falling to 2.4 billion eu

european carabout sales. 13 months of gains.king to extend the winning streak with another solid month in september. chris joins us with a story -- story from berlin. be solid butear to everyone is talking about the eurozone falling into recession. >> there was a good month for september but a lot of that growth was bought by discounts. there is a lot of uncertainty about where is the fundamental demand in the market. the forecast is excellent for the fourth quarter, it is not a lot of stability and optimism in the auto industry right now. not much optimism but look at the standout performance for september. >> it was a great month for the industry, again 6.1% across the all the big five markets through. the biggest gain since march and but it isolid growth still coming off a historic demand low with 20 year lows last year. they're like bouncing off the bottom, with discounts in the market, fulks wagon was heavily audiunting audi and discounting germany, we up to 11.5% a big gain in discounts. there was a lot of gain in the mark

people realize that the european peripheral game is played now.the yield -- we look at the graphic and and we can see that along the bottom. when people suddenly realize this will become a big risk. the next time we see a correction, spain has made real improvements in the economy. that is one of the ways we invest in emerging markets. look at italy. politics remain an absolute farce and there has been absolutely no reform. you have to explain why you're still holding on to italy. the risk is potentially coming back. we will not see a repeat and the europe is going to be fine and dandy. i think you are wrong. >> let's be clear, it is not my call. we have come down from 6.5%. plenty of people saying, the run is over and the rally is over. there is a big difference between avoiding the periphery and actively being short the periphery. this could be the widow maker out of japan. >> there are various ways you can play that trade going short. start thinking about how do you actually exit at the right moment. because of the liquidity crisis, the fact th

>> we have flexibility in the european woods. nobody is asking, no one is asking, not the french government, not the government is asking. there will be no need, for me it is to do what we agree to implement. >> i don't think anybody is saying that this process is easy. i mean, clearly it isn't. and clearly we see politicians and governments struggling currently with the political narrative in europe, it is not a good time a we so growth generally weakening to try and impose fiscal austerity. i wonder if you could share, maybe, some examples from the italian experience where you have overcome orr perhaps you have got workers cancels or younes for adjustments for the sake of growth. >> let me go to examples, one which has been raised about the pension system. the pension system in my country used to be under heavy criticism and rightly so and now it has become stable over the long term. and this is achievement of past governments. as far as the current government is concerned when someone would say very ambitious, some would say v

right now, trading lower, falling european markets by around 7 points. wilfred. >> an american doctor in new york city who treated ebola patients in west africa has tested positive for the virus. the fourth case to be diagnosed in the u.s. cnbc's meg terrell joins us from outside new york's bellevue hospital with the latest. meg. >> good morning. we know that dr. craig expenser, who is 33, was working with doctors in new guinea. we know he completed his work on october 12th, left on the 14th and arrived at jfk on the 17th. it wasn't until days later that he started to feel sluggish and then yesterday, came down with a fever. now it's important to note that because he wasn't symptomatic while he was traveling, health authorities say there was little risk that he spread ebola when he was traveling or in the gates until yesterday. he is a doctor who was well trained, looked like he took all the right steps. they were careful in transporting him to the airport -- to the hospital wearing personal protective equipment, put him right into isolation here at bell

increase in european activity by moscow.rd of europe's gas supplies come from russia, and for those here in donetsk, the fear of winter is very real. this derelict hospital is now home to many, either too poor or too old to flee the fighting. they live in the basement, lit only by candles. this man says, we can cook food only using a fire. fire which is a problem, but there are many broken windows knocked out by explosions. we gathered them and make fire. there is no heating here. a cease-fire may be in place, but that hasn't stopped the fighting that continues to rage on. ukraine says several soldiers have been killed this week alone. there may be optimism in brussels, but for those here, there is no sign of a deal to end this crisis. laura westbrook, bbc news. >>> sarah rainsford is in our moscow studio. there's a lot of relief, it seems, from the eu side of the fence. i guess for economic reasons, there is from where you are, too. >> yes. the energy minister has said that russia is quite pleased with this deal. of course,

an interesting element here heldse we are european entity.will be interesting. >> it is going to become an and ask for some the companies? >> in a way. it is a pretty injured to entity. though -- the all the people who typically invested in pershing were wealthy people. now anybody in the world can invest. the economic terms are much more a tractive and the terms for private investors. n terms forve i private investors. people have a piece of our economic interest. >> what are they getting the aps off? >> they are getting a he's off of the -- piece of the pershing square team. i get a lot of the disability. the word is being done by a very talented investment team and legal team. it is a big operation. this kind of strategy requires a lot more -- >> pershing square can exist without bill ackman? >> i think that is true. if you look at a long like scott ferguson -- alumni like scott ferguson and people who have left pershing, a senior member who has been with us longer than scott and mickey can leave. i do not plan on going anywhere. we built

of the european union.so those would be poland, czech republic, slovakia, the baltic countries. and this work has provided me with an unintended but i still think valuable and unique perspective on the effectiveness of the u.s. democracy assistance. so what i'd like to be in my presentation today is give you a quick sense of the central and european europeans are promote democracy with that teaches us but effectiveness of u.s. assistance. then i will move on to briefly reflect on the effectiveness of the center and eastern european themselves of one of the potential cooperation opportunities i see a joint eastern, central europe and the u.s. in the field of democracy promotion. without worrying about central and eastern european to marx promotion and some country and started immediately after their own democratic breakthrough. and it was championed by some of the same people who organize those domestic breakthroughs. so given the nature of those regime change in center and eastern europe, civil society aski

businesses --d eter any european businesses?, i don't think so. i think the community in general wants to go back to doing business. they didn't like the destruction. i think most business and then want to -- most business been want to get back to business. they do not want to see the protests spiral into china. most have very little sympathy for the hong kong protesters, and part because the hong kong people have been fairly negative and have a lot of anti-mainland chinese mentalities. i don't think that will have an ongoing effect on mainly in china but it will have an effect on hong kong business. >> we will see you soon. at chinaing director market research group joining us from shanghai. he comes out with a new book next week. india's second-biggest software company has released results today. the company will issue free stock to shareholders. is live fromw mumbai. what emphasis does this say? >> it is all about the stocks in the newly appointed ceo. they become the first non-founder ceo. like you mentioned, the estimates a

european union.fore, the european piece of legislation was announced. the first time in history the waspean legislation announced totally and not in pieces. following the austrian court rules the austrian implementation of this law is invalid and is also in violation of fundamental rights of austrian citizens. >> can you talk about the significance of edward snowden's revelations and how they have impacted this debate? in the u.s., the president has said, of course, edward snowden has been charged and wanted in the united states to face charges. but he has said this discussion would be happening without snowden. is that true? thingl, i think the main that edward snowden did to the world was provide evidence, things that were suspicious about previously -- we do have the facts from the organizations and therefore, we know what they're talking about. every piece of communication is being monitored. it needs to be addressed. how much we are willing to accept in our societies and how such thing ino democ

the first european jobs summit. back then the jobless rate in he euro zone was 11%, now it's 11.5%. why have we made no progress in 17 years? the chart goes up and down, but essentially the figures are the same. >> when you think back, he was writing an awful lot why there was a high jobless rate in the european economy. and again, he is looking at this issue. he is writing about it back in the early 1990's. obviously, this is being hotly contested. lots of issues and we have gone through a major recession. g.d.p. is down from where it was before and unemployment is high. various european economist are very different. improved. market has labor force is patient. and look at switzerland and france. all countries have different issues. >> everybody holds up spain. the one thing being held up is what to do. you can't devalue your currency. spain -- tell it is what it is that spain did that had such a dramatic impact or is having a substantial impact that can be replicated in italy and france? spain, it went into a majo

that is another reason we are attracted to european equities.tractionsheets of ecb led to a strong euro last year, which i think cut a lot of people off. we are getting the opposite this year. >> tell us about your picks in the commodities space. i know you like platinum and palladium. palladium is down 13%. why have you chosen these metals? >> they are two of the commodities where it is very favorable. demands is very strong. it has got the precious metal aspect. if you get the inflationary environment, you have the precious metal valuations. coming frome are russia and south africa. you have labor sanctions. you could see potential growth spikes. >> you used a word deflation a couple times. taking a contrary in in termsontrarian view of success of the ecb. tell us why. >> we are probably too early. when risk aversion spikes up we want to be short on the rallies. 85487%. it is not going to kill me if i am wrong on this. the ecb will print money. you will see higher yields at some point. >> if i gave you 1000 pounds and asset for six months, wha

france wants to be alibaba's european hub.hey're hoping to build upon an earlier agreement that allows small and medium-sized european countries to use the alibaba platform at a discount rate. time for one last story. a famous motorcycle being auctioned. the customized harley-davidson from the 1969 movie, "he's he -- "easy rider," was sold for one million euros, despite concerns over its authenticity. it's that the previous 12 years on the national motorcycle museum in iowa -- it spent the previous 12 years on the national -- in the national motorcycle museum in iowa. >> if you have one million euros going towards a motorcycle, we will join you in your desire to be very certain that it was peter fonda's motorcycle. >> thanks for that business update. you are watching "france 24." time for our press review. we are joined by nicholas rushworth. are you going to start with a look at what is happening in the united states in "usa today"? >> it is one of the main papers in the country. the front page of the international addition -

for instance, using european budget. but at the same time, we have to be careful not to crowd out private money. >> so there's a lot at stake here at the discussion. the big buzz word are investment. but there seems to be some recognition that there needs to be more public spending. there won't be a lot of attention from private investors. they don't need the european investment bank to come up with that. normally they find them themselves. so the big question is what chunk of money they will come in on as the german government is standing by to have a balanced budget and no extra spending. >>> moving on, will ireland cave to international pressure and close the double irish tax loophole favored by apple and google? the speculation the government will end the scheme, which allows firms to pay very little tax on their understander national earnings. the controversial double irish will be closed for 2015. catherine joins us with more on the story. >> and it looks like the irish government is probably not going to quite kil

whenever it is, european equity selling off again. european stocks across the peace selling. interesting afternoon. on markets in focus. the real focus in many ways. yesterday, the greek 10 year -- look at this chart. parabolic on the right-hand side. up at 8.80%. the dash for cash is on. if you think about where you want to be, bid big liquid faitn. -- faith. that's the 10-year over 3 months, 73 basis points. the currency story is less dramatic right now. this is the move we have seen in euro-dollar, 1.2794. and equities that are seeing the action. inflation expectation in the europe dropping. t's a story for the rest of the day. what else are we watching? hans nichols is paying attention to what we are watching with apple later on today. on itspany put out website pictures of its new product. pr stunt or mistake? hans nichols? i make if the mistakes claim were intentional. we will never know. maybe tim cook will come clean. we found out what the new ipad's are going to look like. sales were down last quarter, down 9 percent. only 13 million units shipped. we get a better ca

you are underweight european equities. shouldn't it be that you by european stocks? >> there is not a lot of great pop behind that. and japan we have seen valuation among the lowest they have ever been. in europe multiples are not as you see fundamental start to improve. you see evidence start to play out. in the last week we have in having a lot of internal debate about whether to increase european equities. we are doing a lot of work, and that is worth covering. >> the water expand the balance sheet? you have to do more than a purchase program. qe might even do solver and -- sovereign qe. let's talk about practicalities. with yields this low, is it going to make a difference? a risk-freeng to be carry trade. they are going to rebuild the balance sheet. are they going to take the money regularity. qe need encouragement beyond . >> we have done japan. we have done europe. let's wrap is the view here? >> equities are so heavily weighted in certain sectors you cannot even speak about it. the u.k. economy is doing quite well in terms of raising rates. we do not see it p

we are live from the new york -- european headquarters.dimiran president putin is meeting european leaders. he is threatening to cut the supply of natural gas through the ukraine which will affect the whole of europe. you stayed up late to get a few words with president putin. talks on the war in the ukraine have been going well, quite literally the russian president and german chancellor or supposed to meet yesterday at 7:00 p.m. for their first meeting since june where they were also discussing the ukraine and they in fact met at 11:00 at night because the russian president was late getting from serbia where he was visiting the prime minister. only emerging at 1:30 in the morning. we were there and we had an opportunity to ask him what he makes of the accusations, you heard it from the german chancellor and many others yesterday that he is not doing enough to resolve the crisis. he if actively that is nothing new. >> the russian president then got in his limo that was waiting for him before he was whisked away, little did i know he was o

the european union. and european countries are not interested in a comfort inn with russia. why should we? at the same time, we have questions it has to be clear that they respect the country like ukraine. we are doing everything we are -- the commission is promoting concrete steps. for example, negotiations on energy between russia and ukraine. >> next week, the eu weenimeets. is it too early to get rid of the sanctions? >> i cannot commit. my sense is the following. they asked them to prepare. if we believe there is enough level of guarantee on the russian side, yes. at this moment, it is too soon to tell. >> what happens here in the lawn over the next day could determine what happens with these engines against russia. w of course -- could dteremine what happens with the sanctions against russia. >> of course. >> google showing its age. some 3% inas down after-hours trading. hans nichols's will break down the numbers. bad quarter? are you panicking? >> i am still googling. in some ways, this is growing pains for a complete switching from desktop to mobile. even though face

so the european banks should be in a position to lend. but if you keep hitting them with these litigation settlements and these fines, you're capitally taking two steps forward, perhaps one or maybe two steps back, and you're not getting anywhere. which isn't to say criminality or bad unethical behavior in banking should be count nanced, or should be ignored. but you have to look at the individuals who are causing it, not the institution. when barngss are fined $800 million, it doesn't hurt the people making the decisions, it hurts the shareholders who probably weren't even shareholders five or six or seven years ago when they offenses were happening. it has been upside down over the last three or five years and has to be revised. >> if we look at earnings season, markets were driven by multiple expansion. are we annoy seeing strong enough earnings to justify those multiples? >> well, the earnings, the figures that i've seen have been sdeept. it's about 8% of year on year increase in the s&p earnings compared with expectations even a mont

we are looking at the new european union target for greenhouse gas emissions. a 40% reduction from the benchmark, by 2030. can they do it and still maintain their standard of living and grow in the places where poverty is still widespread. >> could we do it here in the u.s., and would it mean keeping nuclear energy heavily in the mix? still with us, climate action net work in europe, director for the renewable outreege. are we not looking at some techno utopian space age was bang thing, but some fair lagunes stood technologies that are just going to be able to come to scale rather quickly? h we be able to chip away with inventions that are >> absolutely. so we with already see with with solar in this company, that it is middle income people, primarily, who are deploying and that's because there's been a real invasion, but it isn't in technology, it is in the financial instruments that take away the upfront cost, so there was just a report that came out last week, in fact, showing that it is manely middle income people that are are taking advantage of that techn

i am jonathan ferro at bloomberg's european headquarters in london.s what the market looks like right now. the ftse here in london up 1%. the dax up by 160 points. the bank of japan boosts stimulus. we are talking about qe3. we are talking about qe forever as the bank of japan boosts stimulus again. we will break down the car and -- the foreign currency moves. >> earnings, earnings, earnings, green, green, green. bnp paribas up by 2.5%. earnings at france's biggest bank beat expectations today, rising by 11%. provisionsloss falling 9.2% on the quarter. corporate and investment bank pretax profit up by 19%. iag, the parent company of british airways and iberia, third-quarter earnings up by 30% , held by increased capacity and reduced costs. ba expanding. strong north atlantic demand. slashing jobs as well. and routes. iberia is seeking a 1.8 billion euro operating profit by 2015. full year earnings will be 550 million euros. 600 million euros higher than .ast year's 770 million euros by 3%s why shares are up today. rbs, third-quarter profit beating exp

that applies to european and so forth.hink that a good amount of the potential sources of volatility are embedded in this stress test. as far as the greek banks are concerned, it's good to know that one of the potential areas of volatility i consider around the capital is now behind us. the country has a lot to do. it's to clear the air with regards to the new era on this relationship with the european fears and international creditors. it has to do a lot to clear around the political debate. but at least one of the boxes has been in safe position. >> and yet, you seem to be very clear that this draws the line, but there's still a lot to do. can you give us an idea of when -- first of all, whether piraeus will actually take part in the lcro and when you will start, you know, selling abs's. >> look, as a matter of fact, we have maxed out in our eligibility, we saw there's a clear signal from the authorities, and we obviously, we don't shy away from maxing out. and this will help us provide term funding to greek corporate at

european leaders there.la merkel. we had francois hollande, david cameron, mateo renzi from italy. all there along with petro poroshenko and mr. putin. mr. putin had said that he was satisfied, but his spokesman then followed that up talking about disagreements, exactly as you say, steven, talking about the fact that he said some on the european side simply were unwilling to understand the reality of the situation on the ground in ukraine. so although david cameron and others thought things were positive, it seems there's still a very, very big gulf between the sides here. the europeans calling on russia to do more. russia saying you don't understand what's happening in ukraine. >> how much do you think sanctions were discussed? you know, the europeans are trying to punish the russians. the russians have imposed some tit for tat sanctions. where's that going, do you think? >> i think there probably wasn't that much discussion of it, to be honest, because i think two things really. on the european side, what

they are not joining the european union. they are simply having a closer relationship, better trade relations, and if that is a reason to invade someone, i think we are really in trouble. >> in your speech to the united nations, you also referred to georgia. what happened in georgia six years ago? you said it was a larm bells range already six years ago in georgia but no one heard the wake-up call. we must take conflict prevention seriously. we must support states in their choice of democracy. the russian argument is that they are supporting their ethnic-speaking, ethnically russian majority or, you know, population in eastern ukraine. you have one of those in estonia as well. what is the dynamic there? do they feel discriminated against? do they feel protected? do they feel, hey, there is a greater russia here and we would like to be part of it? >> well, if the average salary of a russian minener ukraine is 200 your euros, the average salary of a russian miner in estonia is 2000. so economically t doesn't really -- i mean,

at 21.50 european. you have u.s. airstrikes in the middle east, tension with russia. a key oil producer. dropped 16% oil over the last three months. that is the worst quarter since 2010. how long can oil prices they desensitized -- oil prices stay desensitized to geopolitical risk? >> it is a miss for that. shocked they are not making their budget target until 2017. it brings a much bigger debate about europe, which is loosening up the purse strings. a bloomberg view piece was written that said spend. they are in naples for their meeting. that starts at one of the worst outlooks. that area has one of the worst outlooks anywhere on this map. there is more sentiment negative and greece. that is hard to achieve. a quarter of a trillion dollars was wiped off global equities. the global index was down 2.8%. that was the worst since june. italy came out and said they are cutting the growth forecast. it is going to contract by .3%. they told the market that they expected the economy to grow bite .8%. they are slashing 2015 growth targets by 15%. there is a story that they wa

refining is going to be strong and european refining is going to be weak. >> going forward, the europeaniners are going to suffer from some weakness. is that total that i need to look at? is that the company that i should be worried about for innings season? >> that is correct. they are going to have the highest throverple the european funding dynamic. total, as with the rest of them, is primarily an upstream company but their exposure is going to be greater than for either b.p. or shell. >> quickly, when we look at the u.s. and some of the producers there, the shale producers, the line in the sand i'm told is $80 a barrel on w.t.i. that it starts to flush out to smaller players. do you see that playing out or does it need to stay here for a longer period? where are i think your number is reasonably accurate. that is when you start to see investment scaled back. it takes a period of months for lower investment and the decline curves to actually correct the overall production. you see crude staying at very low levels, $80 or less. >> now if we see concerted effort by opec to reign their p

falls across all of the european markets.ermany saying industrial production fell sharply in august, creating more worries about eurozone's largest economy. and a rejected offer from glencore. samsung has warned that its profits have sunk by 60% because of falling smartphone sales. there are birding profit will be more than a billion dollars less than expected in the three months after september. it has been hurt by competition from cheaper models. and the first person in the u.k. to lead guilty to conspiracy to do fraud over the libre. -- the libor. several banks have settled cases in the u.s. and the u.k. over the libor rate after a global investigation was launched. >> a very famous french brand is heading to one of the most famous french streets. >> that is right. the department store gallery lafayette is to open on the shop still is a -- is to open. it will be the first time in the country's 87 year history that they will have a presence on the champs-elysees. the new store will be a flagship along with its location in o

the european union managed to broker the deal. energy giant gazprom turned off the taps last summer because it said ukraine owed $4.5 billion. >> translator: this decision we have taken today will provide the energy security of ukraine, but it will also secure the supply of gas towards the european union. >> translator: russia has compromised on the price. this is our contribution to the compromise in order to stabilize the situation in ukraine. we are convinced that our future relationship will be constructive and our agreements will be fulfilled. >> oh more now from rory challands. >> it was an absolute marathon session that got to this deal, 30 hours of talks. you would hope given all of that effort that everyone came away at least partially satisfied. and i think with all hard-fought negotiations like this, every party has to make a compromise. kiev is going to settle its already existing gas bill of some $3.1 billion, and it is also going to prepare $1.5 billion for gas through until march. russia has come down quite consider

european equities rally after european indices post their biggest one-day gain of the year. rates won't by hiked anytime soon. >> the fed minutes pushed the dollar lower. the ceo of royal dutch shell shrugs off the exclusive cnbc interview. >> oil is at the moment in decline. but, you know, when it comes to the oil price, you have to look at it difficultly, as well. it has been remarkably stable for a long period of time, as well. >> mario draghi will take center stage in washington later today. an outspoken critic of the ecb tells cnbc the central bank has far overstepped its mandate. >> according to its opinion, the omt is illegal. that is the promise to repurchase government bonds of problematic countries. >> heavy metal alcoa kicked off the earnings season with better than expected results with higher than expected recovery in higher aluminum production. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> and a big market rebound in yesterday's trade. the dow was down 275 points on tuesday, wilfred, but then a big come back in ye

are you confident in the european banking system?es, what has happened is that the european banks have taken a very large step towards normalization. this is sort of a next step in what has been a five-year process. what we have now for the first time is european banks that now have a credible impartial regulator in the ecb. i don't think anybody is going to be second-guessing the quality from a technical point of view of these stress tests and worry about collusion between the regulator and the individual banks. -- we have ahink number of what is clearly no strong banks in the euro area. it is clear hand, the european authorities and the ecb did not actually take the opportunity to kill off all the potential zombies and the european banking system as part of this exercise. the reason we can see that as use did not choose to what's called a fully loaded basel three capital requirements but allowed a lot of transitory capital to be counted as part of this exercise. markets,uess that the when they take a look at the data that is the di

in august the 75 year old became the first european to die from the ebola outbreak, the second priest to die days later. they had contracted the virus in west africa, and been brought to spain for treatment. spanish authorities are now investigating how the nurse contracted the virus, given the precautions taken at the hospital, and the fact that she had had limited contact with the patients. >> translator: once detected as the ebola virus we immediately put into action a series of protocols. we're working together to give the best care to the patients, and provide security for our citizens. >> reporter: the nurse had reportedly been given the all clear and mixed freely with family and friends for two weeks, even taking an overseas holiday before being diagnosed. but a doctor says it's highly unlikely the virus would have spread as she was not displaying symptoms. >> we know you only become infectious when you are ill. particularly when you get into the hemorrhagic phase. not just when the virus quietly grows in the person not producing any symptoms. so if you have social contact with

futures are point to go a negative open as european shares slumped on weak european data.dent obama announced plans to increase screening for ebola virus. and it's beginning to look a lot like a merry christmas as the u.s. sales sales hit, three-year high. $75 in checked bag fees. priority boarding is really important to us. you can just get on the plane and relax. i love to travel, no foreign transaction fees means real savings. we can go to any country and spend money the way we would in the us. when i spend money on this card i can see brazil in my future. i use the explorer card to earn miles in order to go visit my family which means a lot to me. ♪ ♪"in the hall of the mountain king"♪ [beeping on the computer] peter come take a look at this. [beeping sounds are more rapid] [beeping sounds are even faster] mr. daniels? mr. daniels? look at this. what's this? the numbers they keep getting bigger and bigger. the clicks are off the charts. yeah the clicks are off the charts. yoshi, i'ts walt. we're back. yes sir! hi. [spoken in japanese] let's go! let's go! let's go! [spo

thank you very much. >> france has defined its european -- to hide its european partners by saying it will take two years longer than initially promised to get its deficit under the european union limit. >> reporters at a news conference were told that the reason for the delay was the fragile french economy. >> the french government announced lands to save 50 billion euros by 2017, also defiantly resisting calls from its partners for more austerity. the french finance minister said the country would get its budget deficit back under their 3% limit, but two years later than promised. >> we assume responsibility for the seriousness of the budgetary situation. we refuse austerity. the consequence is that the deficit will fall from 4.4% in 2014 to 4.3% in 2015 and only fall below 3% in 2017. >> in response, the german chancellor, angela merkel, did not mention france i name but it was clear she had a country in mind. >> we believe there is a reason that it is called the stability and growth pact. sustainable, long-term growth can only be maintained on the bit -- on the basis of solid budg

growth slowdown and it's not even a european growth slowdown. it's a miscommunication in pol monetary policy. that, i think, is going to keep markets volatile like they were in the last six weeks or so. >> david, the history has shown us the process of normalizing interest rates many times leads to a high level of miscommunication, investors misinterpreting what the fed is trying to say. do you think that will happen this time around? >> i absolutely do. look, i don't have a monopoly on the idea that the end of the taper and a change in monetary policy accommodation is going to create volatility. i think that's a pretty well known fact. but i was surprised at how the market came into september with the vix trading at 12 in the middle of the month and stocks at record highs. it struck me that after being up about 10% for the year and the s&p and the nasdaq, it might not be an unreasonable thing to take a few chips off the table and think about a more volatility period as we get into the last meetings of the fed that we're going to indicate we're

they back pro-european parties and sent the pro-russian communist party packing. a free and fair result, say european observers. >> our conclusions indicate that the elections largely upheld democratic standards. >> reporter: president poroshenko and the country's prime minister, who heads up the other leading party, are now working on forming a coalition. >> this is to be a very pro-reformist and pro-european, smart, and even tough, coalition. >> reporter: the question is, though, how will president putin react? >> is this add an mrgs with competing as legitimate and willing to talk business with? i'm not entirely sure that's going to be the case. >> reporter: for now russian officials have said poroshenko needs to form an administration that will bring ukraine to the. that will be a tall order. the separatists say they'll hold their own election this sunday to choose their leaders and lawmakers. the future of ukraine remains murky. craig dale, nhk world. >>> now, let's see what's happening in the world of business. here's our ron madison from the biz desk. ron?

there we go. 24 european banks have failed stress tests of their finances, according to the european banking authority. the test was designed to determine whether the banks could hold up against another financial crisis, and those that failed, they've got nine months to shore up their finances or basically risk being shut down. ten of them have taken measures to bolster their balance sheets. in the meantime, all the remaining banks are in the eurozone. we'll have more coming up on the world business report very, very shortly. >>> how about this? in hundred gagary, the right-wi government says that the tax will target rich providers, not consumers, but many don't believe them. at least 10,000 braved the autumn cold to take part in the demonstration. the government hopes to raise $80 billion a year by taxing each gigabyte of data transferred. critics call it an attack on free expression and a break on the development of fast internet services. the country badly needs a tax on the internet. what next? how about this one? the u.s. federal reserve will call time on its program of governme