--willem buiter.ng over, leading to an anti- euro sentiment coming from italy? willem: there is some risk of that. we should not overestimate the result of elections. populists get the a majority. the real power lies with the heads of state. that you see a majority of populists taking over. yes, the european parliamentary elections are a concern but it is not as significant as some would argue. professor i can green talked about the immediacy of europe getting its house in , given the migration immigration debate. how do countries deal with this? what does the netherlands do? willem: one needs to things. a common policy for the external border. funding of programs in the countries of origin to reduce the flow and attention paid to the integration of migrants into those countries. they have gone easy on that in europe. tom: conrad adenauer would not want the lazy man's out. the lazyey get beyond man out? willem: they have to start spending on integrating new migrants in the economy, not just in terms o

i'm willem marx. these are your headlines dow futures point to triple digit losses as the brief relief rally looks to end after alphabet and amazon sink in extended trade. >>> rbs misses third quarter expectations as the bank books another 100 million pounds of impairments. >>> lafarge hholcim shares get lift on the top and bottom line the and raises its sales guidance. >>> and electrolux shares tumble to the lowest level in four years after slashing its demand outlook and blames the impact of u.s. tariffs >>> european markets have been trading for just over an hour. it's been an incredibly weak session. as you can see, a real sea of red this is after amazon and alphabet reported disappointed outlooks yesterday dragging those two stocks down. filtering through to asia where we saw losses across that region europe is proving to be quite a victim as well in addition to those factors, plenty of corporate earnings in europe the stoxx 600 is down about 1.2% today. let's look at the sectors and see how the

willem following the political noises out of there. are you beginning to think that perhaps too much bearishness is priced in at this point? people are coming around to the view that rating agencies will be expected to downgrade the credit and therefore it may be a buying opportunity >> i think btb spreads are too wide, and there's scope for them to rally they're trading wide to brazil, the italian credit is. it's getting close to the level of greece. i think italy is better than th that what the market is pricing in is a risk of italian exit in the near-term. so italy exiting the euro. i don't think there's any appetite in italy for that so there's opportunities in italian credit and fixed incomeful. >> political leaders say they will not budge on the budget, yet they have made some concessions. do you assume that there will be further alterations to their spending and borrowing plans if we see this continued pressure from financial markets >> i think they will start sending more positive signals. what set the market off wasn't so muc

i'm willem marx. these are your headlines fashion fail europe's luxury giants take a tumble on the catwalk after morgan stanley cuts the sector to underweight and lvmh's third quarter sales figures fail to convince investors. >>> italian banks trade lower as salvini says europe's institutions are ganging up against his country. >>> and the global bond selloff cools as treasury yields retreat from multi-year highs after president trump blames the fed for moving too fast. >> i like to see low interest rates, the fed is doing what they think is necessary, but i don't like what they're doing. >>> sterling rises on hopes of a brexit break through as british minister dominic raab says it is time for the eu to match britain's pragmatism >> we should stay resolute and focused and i feel confident we will reach a deal this autumn. >>> there's been a bit of soft start to today's trading the stoxx 600 is down more than a tenth of a percent as you can see, if we look at the individual markets behind the numbers,

willem >> reporter: thanks so much, karen. i've spoken to someone inside the ministry and asked them whether the letter would be delivered by the midday deadline she said, i hope so. i said, are we talking 11:59 she said, probably that gives you an idea how chaotic things are it passed the budget in a late night cabinet meeting on saturday that was after they came to rome and outlined some of the concerns in a quite detailed letter the italian finance ministry were responding to that letter the government says what it's hoping to do is to explain the rationale for the measures it's taking, in particular the universal income at $780 a month for those who don't have an income there's also a hugely significant decision to once again lower the retirement age for many italians. that was very unpopular when that age was raised a few years ago under monti, the so-called fordnaro pension reform. that's something they're looking to roll back what that means is they're going to have to borrow a substantial amount of money, more than the

i'm willem marks. >> i'm joanna versace. here are your headlines. >>> chinese stocks get one of the worst declines in the year the pboc fails to stem losses with the reserve requirement cut. >>> italian bank shares sink and the ftse mib hits the lowest level since april of 2017 despite the deputy prime minister comments that a eurozone is not currencyon the agenda. >> lloyds bank group considers a multi-billion dollar breakup with sh roaders. sending it into the green on the ftse. >>> south african rand weakens after reports that the country's finance minister asked the president to fire him. >>> well, it is a bit of a risk off start to the week. we had the chinese equities trade as low as 3.7, 3.8% weaker after coming back from national holiday all of the week last week what we're seeing is a similar playout this morning in new york we have all of the majors trading in the red. xetra dax down 7.8%. germany weak industrial production numbers as well not helping some of the german names there. the focus is back on italy once

i'm willem marx. these are your headlines treasury yields jump to the highest level since 2011 and pulling up rates on german bunds. >>> i tatalian deputy prime minister mateo salvini says there will be no backtracking on the debt target. >>> and bank of finland governor ollie raines says he wants to stick to commitments and praise the rules as he looks at the ecb's forward guidance. >>> and danish authorities order danske bank to reassess its capital levels >>> let's look at the european markets. a lot of red on that board the stoxx 600 down almost half of a percent at this stage of the morning. let's hone in on the individual markets. all four of the major indices in europe are in negative territory. the ftse 100 is down more than a half percent the xetra dax is down a third of a percent. the cac 40 is down 0.66% the ftse mib in italy down 0.40%. let's check in on the sectors across the continent oil and gas is up 0.62%. household goods down almost 2% at this stage. utilities down 1.5%. the italian

reporting their latest rating on italy we heard last month they went from stable to negative. >> willemx in rome, willem, thank you very much. >>> outside of equities, here's a global look at commodities and currencies oil ends up a little bit still below 70 gold is fractionally lower bitcoin can't get out of its own way. let's get you set up for the markets and your money joining us is jeff hirsch. chief market strategist probabilities fund management. >> good morning, sir. >> good morning by the way how are you? >> i'm okay. >> we're better than the dow september usually stinks, it was good october is usually good now we're down a little bit of both. >> everyone forgot about october phobia the last month of the worst six months is october. >> should we feel good or bad about the fact that we're down 4% is that a good or bad thing? >> it's a good reset we took a lot of that frothy sentiment off the top there. fundamentals are still supported. we're looking for confirmation this sets up really well for us with the four year cycle sweet spot dow's up 20.3% nasdaq's 32% so this really ref

we'll talk to willem about that shortly. that's the picture across the three different markets. it has been a big earnings day we'll talk more about some of those stocks that are reporting today. first, let's talk about china. chinese economic growth is now at its weakest level in nearly a deca decade gdp dropped to 6.5% in the third quarter falling from 6.7% in q2 and a rare miss on forecast. that's amid mixed prints and other key activity indicators. fixed asset investment came in higher than forecast, but industrial production missed the mark chinese markets have closed higher after a volatile session after top officials issued statements to calm investors the pboc governor said volatility was mainly the result of expectations and emotions and the vice premiere says the government attaches great importance to the stock market's healthy development. eunice joins us live from beijing. i'm surprised on a day when gdp print came out lower than expectations that some people are saying this is just the beginning of a sharper slowdown. shanghai index yet is up 2.6%. >> that's the po

willem marx is there he joins us with the latest.t can we expect here with this particular meeting kicking off? >> well, the ministers from the various leaders from the 27 european nations as well as theresa may will get here this afternoon. they'll be having a conversation as a group she'll be addressing them this evening before dinner about her latest proposals on brexit they'll then be sitting down for dinner to talk about their own views and reaction to what she said the challenge coming into this meeting for theresa may has been that the negotiations essentially ended on sunday. both sides unable to get past a certain point. the sticking point seems to still be around what to do with the border on the island of ireland between the uk, northern ireland, and the republic of ireland. they cannot agree on whether there will be a permanent insurance policy in case next year, when trade negotiations start after brexit's formal end date which is the 29th of march 2019, they cannot agree on whether the insurance policy around having no

i'm willem marx. >> i'm joumanna bercetche.hese are your headlines >>> fresh multi-year highs across u.s. treasury yields spark concerns of a slowdown but mohamed el-erian says he thinks the american economy looks good for the next couple of years >> government spending which will get stronger not weaker, household spending and business investor spending, that takes the u.s. through the next couple of years. the u.s. economy is building up momentum the problem is the rest of the world is lagging. >>> a shock change at the helm of aviva ceo mark wilson agrees to step down and the search for a successor begins immediately >>> buying into fintech. wire card rallies to the top of the dax after the german payments company forecasts a six-fold increase in core profits with marcus brown telling cnbc why he's bullish about the medium-term outlook. >> in the next five to ten years probably the large financials will still remain point of sale volume and come into the full digital ecosystem that we provid provide. >> and richard branson s

. >> steve is outside westminster as brexit talks have hit crunch time sylvia is in brussels and willem is in rome as the italian government plans to deliver its fiscal plans to the e.u. let's start here in brittain as they have pressed pause on brexit talks brexit secretary rodnick with his counterpart michelle bernier in brussels said there was more to do. we are still weaker down .2. $131.30 roughly on the trade let's get out to steve in westminster for more steve, we thought it would be a busy day on the ground we seem to have stalled. where are we at? suggestions were we're 80% there. doesn't seem like that this morning. >> reporter: no. we're always 80 or percent there. you speak to juncker, we're 80 or percent there it's the final 10 or 15% which has proved the biggest sticking point. there are skeptics who told us years ago that this would be the issue. years ago we were asking the question i remember speaking to leon fox a long, long time ago, at least 12 months ago with you and jeff and said what about the irish issue. there's a customs partnership solution the europeans haven

willem marx is in brussels, but let's begin with the slowdown in china.unice yoon is live in beijing with more on that. >> thank you very much china's economy is growing at its slowest pace since the global financial crisis. q3 gdp missed expectations, but it did put the economy on track to meet its full-year growth target these numbers were anticipated because it's the first time when investors and economists could get a sense as to whether or not the u.s./china trade war is having an impact on the chinese economy. there's some evidence to suggest it's starting. exports for the september quarter were surprisingly strong, but the industrial production has been slowing down it dropped again in september by 5.8% so what's happening is that manufacturers have been front-loading shipments, because they want to make sure they get all of their shipments out before the tariffs come in the factory output has been weaker, which suggests the pop we're seeing in exports is probably only temporary. with all the new tariffs coming into play, a lot of manufacturers hav

i'm willem marx. these are your headlines this morning. the comeback kids. european equities trade higher after the u.s. sees higher volumes and the dow erases a more than 500-point decline. >>> strong sales for gucci help kering beat expectations leading the sector higher. >>> and deutsche bank in the doldrums trading revenues take a hit in the third quarter but the bank says it will still be profitable for the year as it strengthens its capital base we'll speak to the cfo at 12:30 central european time. >>> and brussels and rome face off as the eu rebuffs the populist's government proposals. >>> just to bring you some flash numbers for october for eurozone pmi, the composite pmi is 52.7 against a reuters poll, expectation of 53.9. that's down from 54.1 in september. in terms of services, the number is 53.3, that's against expectation of 53.5, down from september, 54.5. manufacturing is 52.1, against an expectation of 53, that's down from 53.2 all three of those down. you can see the euro is weakenin

i'm willem marx. these are your headlines >>> italian banks rally after a report that rome could be ready to reduce the deficit target, but mateo salvini claims there are those in europe who want italy on its knees. >>> a remarkably positive outlook for the u.s. economy, jerome powell says these are extraordinary times. >> the u.s. economy is doing extremely well inflation is up to 2%. i spent a long time indicating that i think inflation needs to get up to 2%, and here we are. i think things are going well this is something that can be continued for a number of years. >>> tesco shares sink after the grocer misses half year profit expectations thanks to weaker sales in asia and mainland europe. >>> and stock in reverse aston martin slips in its long-awaited debut a share price of 19 pounds values the british carmaker at more than 4 billion pounds >>> welcome to the show. to bring you some eurozone pmi numbers, the final numbers for composite future output, 62.1 against the flash of 61.9. services pmi

i'm willem marx. these are your headlines this morning. >>> wpp shares plunge after weakness in the u.s. weighs on sales and the ad giant slashes its full-year guidance. >>> a bitter taste for ab inbev. the beermaker drops towards the bottom of the stoxx 600 after it halves its dividend. >>> shares in abb open sharply lore despite a bullish outlook from the industrial firm >>> and the bears take charge. european equities hit their lowest levels in 18 months tech stocks are among the biggest decliners after the dow, nasdaq and s&p turn negative for the year >>> you can see it's been a negative start for the markets in europe. the stoxx 600 currently trading down around a quarter of a percent. if we look at some of the sectors behind that driving that number down, you can see where the damage is coming from. look at media, down almost 3% on the back of those wpp numbers mt healthcare down more 1.5%. automakers are up 1.35%. construction and material up almost 0.9%. wpp shares plummeted after a report in

now >> and willem, we appreciate you bringing it to us.commerce secretary wilbur ross and correspondent willem marks. >>> as we head to break, looking at where the major averages stand right now, the dow is down 213 points, led lower by ibm after those disappointing results. s&p and nasdaq also trading wn we have more "squawk on the street" right after this break ♪ a moment of joy. a source of inspiration. an act of kindness. an old friend. a new beginning. some welcome relief... or a cause for celebration. ♪ what's inside? ♪ [laughter] possibilities. what we deliver by delivering. >>> getting news out of washington today, let's get to eamon javers outside the white house. good morning, eamon. >> good morning. the white house says it will begin the process in switzerland today for the united states to withdraw from the universal postal union that's the global organization that regulates postal prices around the world the administration says it's particularly frustrated by china and a number of other countries which are taking advantage, it

comments or any comments coming out of italy suggesting they may want to leave the euro currency willem marx is live from luxembourg the number one question is does the finance minister have any credibility at this point? >> he seems to have credibility with his fellow finance ministers. speaking to a number of them yesterday and this morning after he met with them, he's now returned to rome to try to finalize some budget details, they say we should give the man a chance he has until the 15th of october to submit a budget draft essentially. he has said there are still a number of moving parts in rome in terms of how that budget is constituted. the 2.4% number that they have publicized last week seems to be relatively set in stone. a lot of other elements are not. obviously his growth assumptions may be different from those we hear from the european commission in the weeks to come. i had a chance to catch up with the commissioner on final affairs and i asked about borghi's comments about the benefit of leaving the eurozone. here's how he responded. >> italy is a core eurozone country. it

willem is joining us live from rome obviously you have been following this story it's interesting that today we're seeing a big rally back in fixed income two-year yields about 12 basis points lower 10-year yields are back to 3.50 again. six basis points firmer. italian index rebound. where is all this positivity coming from? perhaps dimaio is right? once invests saw the nuts and bolts of the budget they stopped being so worried about it. >> they won't see the nuts and bolts until they release that as part of the budget lore in italy. we saw last night the new budget plan, proposals being sent to europe under european commission law. the regulations have said they have to submit certain forecasts. it's no different to the forecasts they submitted to the italian parliament not a lot in that document wasny except the impact that the new government measures would have on the government revenues and spending none of the absolute numbers are out there. conte talking this morning and last night once they said they sent this document off to brussels, he had a few comments about fulfilling gua

italian budget concerns have driven the narrative willem marx is there. >> reporter: we had a cabineturday where the government agreed on what the draft budget would look like now has to get passed to parliament they struck a conciliatory tron about the european commission. they had concerns about spending and borrowing plans. coming into the trade, moody's, downgraded italy, still kept it above junk status, crucially outlook kept as stable, not negative gave bond prices a valley over the morning. around lunchtime, the italian economy minister in the building behind me issued formal response to the european commission concerns he said we acknowledge some of our numbers in the draft budget are not within eu rules but we need to stimulate growth we had ten years of a sluggish economy and want to change that. we need to serve some of italy's neediest people. seems to have another few days they have a chance to respond more formally. they can't reject it outright but can express more than concerns, say go back to the drawing board, make amendments, try to improve the situation >> thank yo

those are pictures of the leaders arriving we will bring you more from that summit willem marx has been there and has been speaking to various european leaders >>> stoxx 600 is up about half a percentage point this morning after a weak session in uk very weak session for shanghai, down 3% overnight. but europe is bucking the trend this morning already firmer we had a multitude of company earnings that crossed the wires this morning we'll get into those switching to european markets first, we have all of the majors trading in the green xetra dax and cac 40 up 0.56, and the ftse mib up 0.70%. as far as sectors, media is up 1.4% decent results out of publics earlier. healthcare up 1.31 retail also having a good day today. we had some good numbers out of carrefour, that stock is up 6% on the down side, construction and material down about 0.90 heidelberg cement offering a profit warning. >>> and linde's merger with praxair has been approved. i think the investor community were waiting on this final approval we finally got it from the u.s the stock this morning, praxair shares are up 6%, 7%

military all this if that's what responsible for these watching it with these yeah willem thank you very much. a bomb attack in afghanistan has killed another candidate uncensored a's election the blast was in the southern province of helmand at least ten candidates have been killed during the campaign the taliban threaten to target polling stations and security forces guarding them salah bella's has more now from kabul. it was cold inside his electoral office and lashkar gah home and province this morning a bomb was planted on to his chair people were wounded in the attack three people died later of the injuries the taliban took responsibility for this attack they had warned they would do this ahead of the elections and on election day the parliamentary elections here on saturday he died in the blast he was a very well know one politician here in afghanistan a former military general who had been a politician here ever since the fall of the taliban in two thousand and one he had worked in helmand for the last three years he was determined that they just it wouldn't be a fight a military

. >> excellent back to you certainly, willem. thanks for bringing us the latest from luxembourg >>> again, my favorite segment europe has taken back the ryder cup in dominant style. it pitted players from the united states against players from europe. they stole the victory for the europeans on sunday. the win sparked celebrations watched by some of the biggest gatherings in the event's history and i also spent a lot of my weekend watching the ryder cup, i have to say. >>> coming up on the show, we'll get a view about q4 and take a look back at q3 as well. stay with us can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin, and more patients were symptom free with tremfya®. tremfya® may lower your ability to fight infections and may increase your risk of infections. before treatment, your doctor s

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. >>> and sealed air is cutting its q3 outlook because of shipping costs >>> willem marx is in brusselsnd has more on how the debate and negotiations around brexit are going. >> theresa may came here last night. she spoke. she was heard respectfully by her european peers but by no means conquered. we've been hearing for about a year this summit in brussels was going to be the moment the decisions had to be made on britain's departure from the european union it seems a lot of those leaders are willing to give negotiators a few more weeks, perhaps a couple mormons leading up to christmas for a deal to be struck on that withdrawal. theresa may may be accepting a longer transition period after britain leaves the european union. it will remain a part of the single market, the customs union. that period looking at two years. she said it could last a few more months. that would be important to strike a new trade agreement, and that trade agreement would hopefully have a solution to the border with northern ireland >> we saw your interview with wilbur ross yesterday. what is the specific issue

european correspondent willem marx is standing by in london.kick it off with nancy in singapore and that big plunge in the nikkei overnight >> that's right. you're talking about the good, the bad, this would be ugly for the jach thepanese market. the nikkei 225 off 3.7%. this is a seven-month low for the index. we did see an uptick in the yen as part of the safe haven trade. we saw weakness in the big tech names. a lot of the chip names and the semiconductor space as well. that carried over into the session in japan and in south korea as well. you're looking at the kospi off 1.6% this is significant because the south korean market is now in bear market territory. we saw samsung weigh to the down side along with some of those semiconductors you will see one big market in the green, that's the shanghai it was a late day rebound. after the lunch break we saw some buying but altogether it was flat there is optimism that the government could come through with more support especially for the property sector. back to you for now. >> nancy hungerford,

let's get out to willem. can you walk us through what happened in the last 24 hours and what is the likely response from the european commission today? >> a bit more context. the italian government last monday submitted what is called a draft budget plan to the european commission. that's something that all eurozone countries have to do b draft budget plan, the european commission, the executive branch of the european union has a week or so to give an informal opinion on what they see we got that last week from the two men for financial affairs inside the european commission they said they had serious concerns about some numbers they saw in that draft budget plan. some concerns about the growth estimates. we then heard conciliatory language over the last four, five days. pierre moscovici said he wanted dialogue he met with giovanni tria who works behind me. late saturday night we had a cabinet meeting where the head -- the lead members of the italian government got together, they said we're happy with this dr

. >>> concerns about italy's budget back in focus for the global markets willem marx has an update fromels good morning >>> good morning so, the start of this week the italians sent a budget plan to the authorities in brussels. pretty quickly it became clear that the european commission wasn't happy about it. they set these rules in place since the eurozone crisis and they were thinking the italians might be willing to break some of those rules yesterday the commissioner for the final affairs in brussels traveled to roam ame and said te italians you are spending too much money and using growth assumptions that have not been independently verified and we have real concerns about this tell us what you will do to change things. tell us how you will alleviate these concerns the italians will send a response on monday that bond yield has jumped over the last couple of days in response to some of these uncertainties. over the next few weeks we could see a conflict emerge between these two parties. >> willem marx, thank you very much we'll watch this closely >>> in china, i wish we knew -- you

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