Transcripts For CNBC Worldwide Exchange 20131203

Vote. Reports suggest cyber monday in the u. S. , sales hit a new record, clipping 2 billion for the first time. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. Hello. Welcome to todays program. Were just over an hour into the trading session here in europe. We are down once again. Decliners being outpaced by advancers by a ratio of around about 7 to the on the Dow Jones Stoxx 600. The if it is ft. Yesterday was down from 55 points. You can see at the moment, down 0. 3 . Take a look at where we stand on some of the individual sectors, as well. No sectors at the moment in positive territory. Basic resources once again. Its been a year of underperformance for the resource sector. Spot gold, bouncing off after hitting near those fivemonth lows at 1222. Copper is a little lower. The spread between west texas and brent now getting ever wider. There seems to be more u. S. Supply coming on board. The question is whether the weakness in the u. S. Prices will eventually target down brent or not. Well get into that as opec starteds. That spread certainly getting wider, as well. Lets bring in sixuan to see whats going on in the asian markets overnight. In thank you, ross. Asian markets are under pressure. The nikkei 225 ending at some 5 1 2 year high against the yens weakness. China markets reversed early weakness in todays trade. The shenzhen composite rebounded from yesterdays heavy losses. Meanwhile, south koreas kospi ended lower by over 11 is as automakers struggled on weak Sales Numbers putting the breaks on gains and pressure from the soft yen. Australias asx 200 ended lower by 0. 4 as miners take a beating over renewed set tapering fears. As for individual movers, investors favored japanese exporters, financialses and heavyweights. The nikkei has gained over 9 in last month alone helped by strong earnings and the weakening yen. Consumption related stocks rebounded strongly included some home appliances, automakers and producers. Keeping these sectors in the green is raising domestic demand and chinas structural reform. Back to you, ross. Sixuan, thank you for that. Thats whats happening in asia overnight. Lets bring you up to speed with where we stand on bond markets. 2. 79 , just below 2. 8 on the yield on the tenyear. Ism manufacturing yesterday up to a 2 1 2 year, 57. 3 would suggest the u. S. Economy is gradually regaining momentum. And on the currency markets, dollar yen now up to 103. 08, up to fresh sixmonth high on dollar yen. Euro dollar, just below the 1. 36 mark we were at on thursday and sterling just back from that 1. 64 of 11. 6 1. 6384. The aussie is the second worst performer after the g10 in the currencies. Australias Central Bank Says the countrys currency is still uncomfortably high. Those comments sending the yield down further. Little urgency for more rate cuts. Policymakers keeping them on hold. Earlier cuts are still taking effect once inflation is tamed. Joining us with his thoughts, may bank in singapore. Andy, thanks for joining us. Is the aussie dollar going to get weaker . I think generally if you look at the markets, you look at the options site, it looks like were probably going to see a bit of saturation on the short aussie. Youre probably going to see a limit about the 90 levels. But our view is tapering in the First Quarter, probably First Quarter of next year, it may go down to about 88 cents against the dollar. We have quite a few things. February may be the month to actually ease. That may weigh a bit on the aussie front. The aussie has also been something of a proxy, you know, over the last five years for what happens to the chinese economy. Is that influence waning . Theres quite a number of factors. I think if you look at it in terms of trade figures and you have forces against that, you have the yield seeking behavior, you have the differentiations given australia is a aaa rated currency. So there are defensive sectors affecting the aussie. So the china affect is affecting in terms of trade side of on things. At the same time, you have flows supporting the aussie. So you have over the next few months debt coming into play and some interest in terms of flows into the aussie asset prices. So it may stay up around these levels, about 92, 93, unless we see major policy shifts Going Forward. Lets talk about the yen. Were at sixmonth highs against the dollar. Theres now talk that we might get another stimulus package out of japan. Reuters is talking about this. What target have you got for dollar yen . For the end of the your, we were initially targeting 105. Towards 100, 105 towards the early part of next year. And end of the year, closer to the 105 levels. End of 2014 towards the 110 level. So if the policies of stimulus announcement comes out, i think the levels might start to sort of rise a bit earlier than expected. So essentially, the trajectory for dollar yen is an upward trajectory. Its the target levels that need to be shifted. Near fiveyear lows against the dollar and the pound, as well. Is the yen now back in as a Global Funding currency . Possibly. If you look at the central bank around the region, you see sort of different sort of trajectories Going Forward into 2014. The yen seems to be the one that probably instead of a more stimulus sort of approach whereas the rest seems to be cutting eu last week and the fed, the tapering and then the ecb with no stimulus at all. So it looks likely sort of funding story. Theres a differentiation there so it could be ricely so. Its interesting you talk about the ecb, because clearly they did cut rates the last time around. The most fascinating dilemma here is euro dollar, which has been absolutely stuck in a range for sort of lets call it 1. 30 to 1. 40. Is that going to change in 2014 . Are we going to see a difference between the ecb, lower for longer than the fed which on the margin which theoretically should weaken the euro . I think weve been hearing in the market in terms of flows coming in, even out ott japan into europe, moving away from the aussie front. There are risks to the aussie weakness sort of trajectory. Sort of the yen coming into the similar side of japan, there could be outflows, for example, into assets or there could be further flows into the european side. So there could be further support on this. Its linked with some of the japan policy measures if you get introduced by the end of the year. Okay. Thanks very much, joining us from may bank in singapore. Every week, cnbc is asking you to talk the trend, as well, by taking part in our online support. Are you banking on a santa claus rally for the s p . Perhaps you dont believe in santa. But u. S. Equities are up 80 . Head to traderpoll. Cnbc. Com. Cast your vote. You can have your say of course on twitter using traderpoll and let us know your thoughts by emailing us worldwide cnbc. Com. The ukrainian president is decided to go ahead with a visit to china despite protests occurring today. Prowestern protesters block aadd the building overnight. The white house has criticized the use of force and the president has admitted Security Forces acted excessively. Meanwhile, the Opposition Leader has been hospitalized following the eighth day of her hunger strike. Shes refused food since the start of the protests. Theres a new tax by thailands government to diffusion tensions in bangkok. Allowing protesters inside, tear gas and rubber bullets have given away to calmer demonstrations. The protest leader says the fight will continue. Meanwhile, Consumer Confidence has been hit dropping to a twoyear low because of the unrest. The National Transportation safety board says the new york commuter train that derails sunday was traveling at 82 Miles Per Hour when it entered a curve where the speed limit was just 30 Miles Per Hour. Four people were killed and more than 60 injured. The ntsb says the trains brakes were working properly but were applied just seconds before the crash. And pointing and clicking is becoming the preferred way to shop. Adobe says u. S. Cyber monday sales topped 2 billion for the first time, up 16 to 2. 9 billion. Adobe tracks visits to 2,000 websites. A record 18 came from mobile devices. Other trackers report even higher numbers. Ibm dish analytics, sales rose and amazon sales were up 44 as of 6 00 p. M. Eastern and ebays were up 32 . Gloo global pc shipments could be set for the most severe yearly contraction on record. The group said shipments are expected to fall by 10. 1 this year, procedure than previously projects. Ibc pointed to the increasing life spans of pcs. It added total shimts weed tohi set to decline 3. 8 in 2014. A mystery customer has been dropping tips of 11,000 some reaching at high as 10,000. The tipper is placing photos of the receipt owes an instagram page. Has tipping got out of control . Does a Tipping Culture improve services . Do you think wages and bar staff now just expect the cash . Theres big difference between u. S. And the u. S. Where in europe staff are paid and sometimes the service is automatically included on the bill. Get in touch with us. Worldwide cnbc. Com, tweet cnbcwex or direct to me rosswestga rosswestgate. Meet bitcoin jesus. Head to cnbc. Com to find out how he got his special title. Still to come, is the british Prime Minister David Cameron getting any chip necessary china and fostering a new eu china trade agreement . Stephane has details for us on Insider Trading allegations on daimler. When does this relate to . What is the period . 2006 is the time. The main shareholders decided to sell a part of their eads shares. But they had access to privileged information before doing so. They knew at the time that the 380 program was facing technical problems and would be delayed. The information, when it was made public, led to a 26 decline in eads share price. Thats the reason why the investigating magistrates decided yesterday, legarde and daimler, would face trial on charges of Insider Trading and a group of former executives, the current head of sales and former ceo would face trial. Its quite a surprising decision because four years ago, ross, the french stock market regulator cleared 17 people in a separate probe. Thats what legarde and the eads said yesterday. They were surprised the case was still being play in court after the different parties were cleared by the french stock market regulators four years ago. Under the french law, they could face sentences of up to two years in jail and the maximum fine of 1. 5 million euros, which for a company the size of legarde is quite limited. Ross. Well see what happens. Stepha stephane, for now, thank you. The british Prime Minister is traveling to shanghai on day two of his visit. His comments are seen as paving the way to ensure successful business meetings with chinese investors. Andrew leung is founder of Andrew Leung International consultants joining us now. What is the perception of British Government in china compared with, say, germany or france . Well, i think the impression is quite positive. You can see whats happening on chinas twitter. David cameron is very, very popular and, of course, the uk and london hold special attraction for the chinas middle class. This is the middle class as far as investment from europe and the uk. Thats the interesting area in china. Where things are changing so rapidly. So the press has been talking about China Investment in the uk, in infrastructure, in power, but the bigger story is whats happening after the third plenum in china. The whole country is on a different trajectory, opening up all sorts of opportunities for british businesses. Its interesting. Weve got this article today apparently in one of the chinese newspapers in the global times which suggests the uk is not a big power in the eyes of the chinese, its a country to kind of travel and study. You talked about london is a great place for chinese to travel and shop. Will people view it as a place to invest . Well, i think those remarks are unlike the remarks of chinas tourist. But i think the businessmen know where the sweet spots are. The length of the uk at this point in time matches while china is trying to achieve in terms of the rise of the middle class, this shift of the countrys economy towards internal consumption, but putting emphasis on the development of financial services. For example, the internationalization and eventual compatible of the renminbi and that lends itself to learning more from the financial expertise in london. And also things like energy, environment, thats also uk is very, very strong. So i think both sides are looking at opportunities both for investments of chinas capital in the uk, but also how the uk businesses could share a bigger size of the cake. Because the uk investment is minuscule compared with other European Countries in china. Yeah. And do you think this will help london become the major offshore Trading Center for the renminbi . I think london is very well positioned, indeed, because after all, london is the leading Financial Center in the world and, of course, the chinas bands also are already being welcomed in london and, in fact, recently, the China Businesses consortium has bought a sizable chunk of the area next to the city of london. So that gives the China Business an opportunity to be near the Financial Center, bring in chinas businesses to london. But, of course, london is a launching plat for chinas businesses all around europe. So i think london is very well positioned, indeed, in terms of financial services. Boris johnson will hear you be delighted, actually, to hear you suggest london is the Financial Center of the world particularly as youre sitting there in hong kong. Which brings us on to how america feels about cameron out there trying to beat, drum up a trade agreement between china and the eu. How does that pitch against u. S. Relationship wes japan and that asian pivot . Well, of course, this is a we are seeing whats happening in this part of the world over the south china sea. It is a great power play between two world powers, the United States as the existing super power and china as an emerging challenger. So you can see the asian pivot and all these problems arising over the territorial disputes have been accentuated. And the recent launch of this air defense identification is a typical example. But over in europe, america is trying to build a massive Free Trade Agreement with the eu. Now, the eu, of course, is chinas biggest trading partner. So china is well positioned to sign a deal with the eu and the uk sees itself as a very effective booker. And thats why David Cameron is trying to leverage that to build better relationship with a riding china. Andrew, always good to talk to you. Thanks for that. Have a good evening in hong kong, andrew leung. The World Trade Organization is kicking off its meeting today. It will center on efforts to salvage a proposal for a landmark impact more than a decade ago. Whats at stake in this key conference . The World Trade Organizations dohar round turned 12 this year. But years of setbacks have eroded confidence in the wto. Now the body has given up on ever passing the deal in its original form, opting for a watered down version instead. Some say it is now bahli or bust for the global trade organization. But the wtos new chief, roberto asavito, who took over in september is determined to push the new dohar plan forward. The world will not wait for the wto indefinitely. It will move on. And it will move on with choices that will not be as inclusive or as efficient as the deals negotiated within these walls. But despite ten weeks of marathon talks, diplomates failed to seal a deal in geneva. Now a deal focuses on whether they can work out differences in bahli. Of course, many still believe in what the wto stands for. You cannot solve issues only to the bilateral or regional trade. The second one, to the best of my knowledge, is always about wto plan. And wto is the lowest common denom iter. So if you cannot have an agreement on this lowest common denominator, then you dont have any benchmark any more. Theres plenty at stake in bahli, and many are wondering if the wto will be able to profits still relevant. And lisa will be live from that wto meeting throughout the day on cnbc tomorrow. We have a press release from Johnson Controls and hi tashy. Theyre announce ago global airconditioning venture. There you go. I dont know whether that story leaves you cold, but that deal has just been announced. The email address is worldwide cnbc. Com. Still to come, the mark in north korea, the u. S. Is tied with uruguay. What are earth are we talking about . Its the corruptions index. More after this. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Stacys mom has got it goin on stacys mom has got it goin on stacys mom has got it goin on [ male announcer ] the beautifully practical and practically beautiful cadillac srx. Get the best offers of the season now. Lease this 2014 srx for around 369 a month with premium Care Maintenance included. You can fill that box and pay one flat rate. How naughty was he . Oh boy. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Thai government and Security Forces takes a softer approach on protesters, hoping the lack of heavy handed intervention will defuse tension. In ukraine, opposition is calling for a no confidence vote. U. S. Cyber monday sales hit a new record, topping 2 billion for the first time. Were an hour and a half into the european trading day. Equitier are softer day following a softer close on wall street last night. Right now were up 0. 5 , a little more on the german market. The cac 40 down 1. 14 . Yields, 10year gilt year, 2. 87 . The tenyear gilt still at the lowest mark, 2. 7 . On the currency markets, dollar yen, 103 at the moment. We have been up to 103. 76 in the last 24 hours. Euro dollar is at 11. 3569. Were over 1. 40 for the first time in two years. Sterling dollar, 1. 64. Stronger than expected construction pmi daddy. We have stronger than expected pmi data. Construction came in at 105. 6. Another latest in the sign of stronger than expected uk data. The big one will come tomorrow with services because that accounts for a much bigger chunk of the economy, of course. But nothing to stop uk asset prices appreciating in terms of sterling and the fact about what it means for future policy. Big focus on the uk on thursday with the chancellor having his statement. 70 of the 177 nations accept the latest corruption index are said to be more corrupt than clean. Transparency international is revealing the details. Somali, north korea and afghanistan are at the bottom of the table. A third of the nations managed a rating above 50. Joining us on set, roger, what are you measuring when you measure corruption or transparency . Youre looking at how corrupt the Public Sector in and youre measuring perceptions. We have been trying to measure corruption for 20 years. Its pretty hard to measure. So in this particular survey, where youre talking about perceptions. Who is it that youre asking . In this particular survey, its really a poll or polls. We take data from the world bank, intelligence units, so on. We then aggregate the data and ask people like country experts, diplomates and particularly Business People. Syria, clearly, theyre having an awful time, no surprise that it would slide down this table. No. I mean, generally, when you look at the very poor performers, north korea, syria has slipped down, afghanistan, somalia and so on, youre looking at either very repressive states or states where there is immediate conflict. Very fragile states. Its interesting, the u. S. Has a mediocre performance. Its in the top 30. One of the interesting things about the u. S. Is its a long way from being in the top 10. And the uk itself, not quite in the top ten. Its improved in recent years, but its not where it was years ago. What are the issues that keep the u. S. And the uk out of the top ten . You have to ask the question why would Business People pure receive the Public Sectors in these country toes be corrupt. And in the uk, it slipped badly, the government showed it wasnt really serious about prosecution construction. Since then, its introduced the uk bribery law and thats seen it creep up the table. What about in the u. S. . Whats the perception about the u. S. That keeps it down . What one sees is a continued level of scandals related to the Public Sector. Of course, its a very big country and a very big sector. And so you see a series of scandals state by state, but also sometimes at the federal level. Things Like Campaign finance, government contracting, controls of Money Laundering . In the u. S. In particular, the particular issue people have looked at have been Campaign Finance and lobbying. Greece, were still trying to sort out, is it still perceived as the most corrupt place in europe . Yes, it is, but theres been an improvement this year. Its quite interesting, i think, to see this improvement because there has been some action in greece, some people jailed for corruption. So it shows you can work your way up the table as well as down the table. Where does that leave china . China, interesting. About the same level. British Companies Might want to joint ventures with Chinese Companies. How do you operate with a company from an area where they are taking a different appropriate to corruption . I think the china story is very interesting with regard to corruption. Its difficult to operate with regard to corruption. The real issue for Chinese Companies are are they going to pay bribes and be advanced ahead of european and u. S. Companies . That is a question, isnt it . Is the perception that they are doing that . There is indeed. We have a poll of international Business People that says Chinese Companies are among the biggest bribe payors worldwide. I think one of the most positive things that could come out of camer camerons visit to china is they will come more under laws like the bribery act and be expected to act more with international law. That is a big thing. New zealand got a top spot. I think were comfortable with that. Scandinavians always perform on the high side of these indices. Thank you very much for that. For full analysis of this sections index, head to our website. Cnbc. Com or catch us on twitter cnbcworld. Speaking to Michelle Caruso cabrera, harris warned challenges still remain. Obviously, we have come a lock ways since the springtime. We have exited the danger zone, we are stabilizing the situation, were taking control of the situation. The challenges, of course, remain, but i think this is what the rating agents are beginning to register. The resilience of the secured economy and the determination to bring it back on tap, basically. So you mentioned that there are still challenges and hurdles. One of them must be the removal finally of the capital controls. You said earlier this month that within months, they would be fully lifted. Does that mean youre still on target for january sometime . Because the president had said earlier in the year that they would all be listed in january. Yes. Thats the aim of the government. Let me say the afflictions are nothing compared to what they were. There are restrictions on all the new money coming into the economy. And most normal banking transactions can already be conducted without any restrictio restrictions. We aim to do away with all domestic restrictions. Sometime early into the new year. The last item on the list, not speculating as far as that last thing is concerned. It will obviously be the situation. But i think the method of the gradual steady relaxation is the correct one under the circumstances and we shall continue. The greek finance cypriot finance minister speak to go Michelle Caruso cabrera in washington. Italy had Great Potential for growth and could outpace many other countries if it was properly enforcing reform according to rehn. Email us your thoughts and commenced, worldwide cnbc. Com. What do you look for when investing . We talk to one man who got it right early on. Whats he up to now and has the world changed entrepreneurs . Plenty of countries are trying to slog off Postal Services. Portugal has set the Postal Service ipo price at its range. Its a good time for floating companies. Meanwhile, in japan, maritime shipping companies and the university of tokyo developing a huge ocean going sailboat which they hope to commercialize by 2016. Fushiko has more for us from the high seas. Were off to the high seas . Hi there, ross. Theyre trying to build an exceptionally large 80,000 pound vessel with roughly five sales, powered each 20 meters wide and 50 meters tall. You will be able to sail without the assistance of an engine. The sailboat will have a Computer System to calculate the winds direction and instruct the sails to move automatically to get maximum volume. This sailboat will consume only half the fuel and half the Carbon Dioxide compared to normal shipping vessels. The United Nations is expected to introduce tougher maritime rules in 2015. Major Japanese Maritime shipping companies are involved in this project and are currently building a half sized mockup hoping to have it finished by the end of this year. Ross, back to you. All right. Well see what happens. Thanks for that, fushiko. Interesting stuff. Now, the mystery talking about the google barges may be solved. The Company Plans to use them as floating Retail Stores next year for its new google glasswareble device. There will be three barges, one in san francisco, one in new york and each will be build from 80 shipping containers and will feature large sales. El google said has little about the barges, only that theyll be used to learn about interactive technology. Apple buys social media topsy for 4. 2 million. Apples acquisition tends to focus on hardware, but its new itunes radio streaming Music Service could benefit from p topsys twitter data. Today apple up 0. 5 in frankfurt. Tech has been the big winner on cyber monday. Jon fortt has been revealing which devices drove the most sales. Holiday season off to a strong start in the u. S. , at least online. Thanksgiving sales topped 1 billion for the first time. Black friday sales nearly 2 billion coming in at 1 1. 9 according to adobe data and the projections for cyber monday on track for 2. 7 billion in sales. But the big story here behind the online stories is mobile. Adobe projecting that nearly one in every four dollars spend will be spent through a mobile device, either smartphones or tablets, and apple is way in the lead which is interesting given that Android Devices have overtaken apple in terms of unit share. Certainly not in terms of usage, not in terms of spending apple devices overall making up nearly 19 of overall purchase volume, which is way outstripping their market share. The ipad in particular over black friday and thanksgiving pulling in 417 million sales, ten times more than android tablets. Theres a question out there as to why this is, why apple seems to be outperforming android when it comes to shopping. One, demographically, people who buy apple devices tend to have more disposable income and theyre more able to spend. The other factor is particularly on the ipad, there are more retail apps geared towards viewing on a tablet and particularly the screen sizes that apple has because theyve got that tailored experience. Its easier for people to buy and complete purchases. Mainly the ceo of blue nile telling squawk on the street this morning that 60 of web visits to his site are mobile. They might actually plunk down the cash using that mobile device. Well see if android can catch up or if apple will remain the ruler of the roost when it comes to mobile shopping. When we get the official numbers and as the Holiday Season moves on. For cnbc, im jon fortt. Jons report. Joining us is manglo capital partners, got in early on the Video Call Service skype. They realized a huge profit from that. Mark, ceo of mangrove capital partners, thanks for joining us. Did morning. Do you think apple is going to keep winning in mobile in the tablet space over and droroid . Theres no friction to make the acquisition. When youre using the apple device, its a simple click. As long as they keep the friction away and the competitor products are not quite as good as keeping the purchaser aware of that, apple will continue on that trend. Is it all about making it the Easiest Service to use . Is that the key to design . Its about design, right . Product design and how you use it. At the end of the day, its all about having no pain in using a product. That is true in everyday life. A toaster. We run around the world looking for people who are the best product guys because those are the people that are going to create products that you and i are going to use and use seamlessly. A push a button and it works. We invest in europe, russia, israel, looking for those guys building those products that are exciting and make it so easy for you to use. Does it matter whether the they are changing a complete industry or not . I mean, because skype sort of did. Wix, which is another success of yours, allowing you to build websites fairly cheap and easily. It does matter for us whether were changing world. In the case of skype, that was obvious. You made calls cheap or free. Wix is enabling all the Small Businesses of the world to have appear identity online like never before. Before, a website would cost you 10,000 or 15,000 to build. Today, wix is tree. Skype was free. Youre into free stuff. I love free. Im a free guy. So if you want to give stuff away for free as a means to drive a business, ultimately when do you start mon tieeti it . From the first day. You always have to have just a bit you hold back from that product so people would ultimately say, yeah, im willing to see the value in the extra piece. In the case of wix, its free, theres a banner at the bottom that says, brought to you by wix. Want to remove that . Its like 7 a month. You got lucky with skype. Wix, thats a company you exited for 1 billion. Is that luck again . Sure. Our business is 50 luck. We look at 2,500 deals a year to do six. Theres a fair amount of luck. I think over time you develop a bit of a nose and the capacity to understand what drives success. How early do you get in . Skype, we initially put 1 s 100,000. Wix, same thing. We initially put a cup couple hundred thousand euros. Theres a business that decides it needs more runway, it needs more fundraising. Theres a big problem with entrepreneurs that start businesses. A lot of times they get in and the founders end up getting squeezed out. I think thats typical of what we find in europe, certainly, that the investors want to get a big chunk early. Our philosophy in our firm is simple. The founders have to make more money than we do or ultimately theyre not going to be successful and neither will we. We think of ours as a cheerleader. So unless youre that, youre going to end up in the description. What are you excited about at the moment . What are you excited about im excited about how mobile is changing our lives. I think that everything is moving to that mobile device, right . So we see the data coming out of the u. S. , for instance, in terms of shopping on monday. This is going to be absolutely massive Going Forward. And as our disposable income goes from roughly 7 to 20 , that becomes fundamental. I need to find a solution how you delete from the internet. Right now, you cant delete on the internet. So if somebody says something bad about me, how do i get rid of it . Theres a company that does that. Fair enough. Id like to meet them. Thats an important element. How do you do those things . Im excited about where this internet thing is taking us. And twitter is buying topsy for 200 million. Apple is buying topsy for 200 million. Theyre analyzing what happens. Its analytics now seems to be an enormous thing. All this traffic, all this data, is understanding it a business in itself . Absolutely. A business in itself as much as a key contributor to every business online. Unless you know exactly what users are doing, what theyre looking for, you simply dont know what to propose to them. In the old days, marketing was guesswork. On the internet, you know every single thing the person is doing. Thats valuable. You bet. Mark, i took a long time with you, but were finish for mow. Thanks so much. My pleasure. Meanwhile, head to go india, the clothing chain has received final approval for its Retail Investment in the country. They hope to open 50 stores on the continent. And enter the credit card, a fancy new set of nounchucks or a youre a bruce lee fan . I certainly am. This is the auction for you. 14 personal items have been belonged to bruce lee are up for auction in hong kong. The auction is expected to fetch between 130,000 and 190,000. Theres the famous suit that we all remember. Meanwhile, the wto trade ministers meeting will be in full swing in bahli. Cnbc will have full coverage in seoul. And joe biden continues his asian trip to beijing. On the november front, well get services pmi out of japan and india, as well. Well take a short break. Still to come, what global macro environment will investors face in 2014 . Less of a fiscal drag . Will the Central Banks withdraw stimulus or keep pumping . Plenty more announcements coming up in the second hour of worldwide exchange. See you in a few moments. Hi honey, did you get the toaster cozy . Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Youre watching worldwide exchange. Im ross westgate. Stocks in europe fall with miners leading declines and hovering near a fivemonth low after a steep drop overnight for gold. The opposition camped outside of parliament in the ukraine called for a no confidence vote. Plus, the web may be winning out this season. Cyber monday sales hit a new record topping 2 billion for the first time. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. If youve just joined us this morning stateside, a warm welcome to the start of your Global Trading day here on worldwide exchange. U. S. Equities down yesterday, s p down 4. 9. The futures now indicate another negative start here this morning. The dow currently some 28 points below fair value. The nasdaq at the moment is just above fair value. The s p 500 is around 2 points below fair value. As far as european equities are concerned, two hours into the trading day, we are down. The ftse was off 55 points yesterday. Another 35 today. 0. 5 lower. Xetra dax pulling away from its alltime highs at 9,500. Down 0. 74 . The cac down down 1. 26 and the ftse mib down around 0. 3 . Commodities and secretaare in f today. We saw gold hovering near fivemonth lows today. So thats one of the reasons just ticking off the low thats weve seen during the session. 1223. Well also keep our eye owes this spread between brent and nymex widening out ever more at the moment. Some about 17 points, 17 between the spread. Well continue to talk about that as we get into opec at the moment. As far as bonds are concerned, tenyear treasury yields, a little higher today, 2. 79 is where we stand, just below 2. 8 . Gilt yields have gone a little higher today, 2. 84 is where we stand at the moment. Construction pmi coming in stronger than expected, as well. And on the currency market, dollar yen, 102. 77, pulling away from 102. 70, a sixmonth high on the yen. Euro dollar, just below the 1. 36 level. Euro yen has been up at fresh fivemonth highs, as well. To recap the session in asia, sixuan joins us out on of singapore. Thank you, ross. Asian markets eased a bit. The nikkei 225 ended at a 5 1 2 year high helped by a falling yen. Continue to go outperform its asian peers. And china markets reversed early weakness in late trait trade. The shanghai composite added 0. 7 . The shenzhen composite gained 1. 7 after yesterdays tumble. Financials recouped early losses. Consumer related stocks, commentmakers and power utilities made a strong rebound today on hopes of the countrys structural reform and rising domestic demand. South koreas kospi lot over 1 after as automakers struggled on weak yen numbers. Ought trait yas asx 200 eased while the rba kept rates steady as expected. As for individual movers, investors favored japanese exporters, financials and large cap heavyweight indexes. The nikkei 225 has gained over 9 in the last month alone helped by strong earnings on the weakening yen. Australian gold miners took a beating today as renewed tapering concerns hit commodity prices. Evolution and kingsgate tumbled over 12 and newcrest tumbled over 6 . Thanks for that, sixuan. Joining us for the rest of the program, anthony scarmuchi, managing partner at skymuth capital. Also with us is jeremy hill, managing partner at ts marketing adviser in rockefeller, as well. Welcome to you both. Lets kick off. Clearly, its been an outstanding year for equities, anthony. The s p up 26 this year. The nasdaq up 34 . We had a massive rerating. What happens now . Well, listen, its a liquidity driven bull cycle. I dont see a tap near term. We dont have the exuberance that you would typically see at the top. Valuation havent gotten broadly extended the way you would expect at the top. So its likely that the u. S. Market will continue to accelerate into the first half of next year. It sounds surprising. People are worried and i think because of that worry, thats the primary reason why i think were going to see upside opportunity in the stock market. Jeremy, is the fact that people arent worried a reason for things to go higher . Or people are worried and thats a reason for things to go higher . Yeah. Thats one possibility. But i go back to the immortal johnny rotten, what you said, down was the old order, in with the new. I think what equities are done this year in the u. S. , anyway, is theyve realized that theres a risk on risk off the past three or four years where we thought we were going to have a global meltdown in europe and the u. S. And the fiscal issues in the u. S. Those things are starting to clear up. So the multiple expansion weve had this year, although quite aggressive, but buyers are still towards the upside. Now weve gone Something Like 18 months without a 10 construction in u. S. Equities. I think were probably due for a little bit of a pullback here. But longer term 2014 i look for the equity market transition to a purely beta market to where one its more selective, where you have to do your fundamental analysis and pick things that are cheaper relative to just putting market into the putting money into the market. We got some flashes coming out on the bottom of the screen. China parliamentary is pushing for land reform and speed up reforms. Keep note of those comments. Jeremy and i are more or less consistent with each other. Im probably potentially more bullish. I understand the selectivity issue. Clearly people need to be selective when theyre picking securities. But theres something undeniable about whats happened in the markets right now, ross, and i dont see any same soon where the fed is going to start the process of tapering or pulling back. March. People are talking about march. But when i was back on the show in july, people were talking about september. I said thats not going to happen. People are now talking about march. I still believe thats not going to happen. It has to do with the u. S. Unemployment situation, the lack of wage growth and the fact that the u6 number in the United States is at 13. 6 . So if we were back in 1982, using the same measurements, the unemployment number would be flashing in the United States at minus 13. 6 . The problem ive got with this is they were saying they were using asset purchases to target employment, when actually the proof and the evidence suggests you cant get unemployment higher with quantitative easing. But you see what theyre super afraid of is without the reflation, youre not going to get some of the consumption benefits associated with the reflation. I agree with you that its not working to the extent that they would like it to work, but its the debt of all of the skills or the tolls that they have in their toolbox. You could have just taken that money and put it into local banks and lend to real businesses. If you want to go really outside the box, right . There may be other issues with that, but you could spend the money in different ways. This is also the big debate. The fed has not printed a dollar of money. We could see on these programs and talk about money printing, but the fed hasnt printed any money because to your point, youve had no multiplier effect. All theyve done is tried to dial down the fear that we all faced in 2009 and 2010. Jeremy. I really think the fed is going to try to switch the efficacy of their Monetary Policy from quantitative easing. Weve seen a lot of noise out of the talking heads. I dont think the market appreciates the bifurcation for lower rates for longer on the front end and anthony has a right to a certain degree that the qu could continue for longer than we expect, but by the same token, i think there is a lot of pressure right now looking at whats going on and the wealth effect. Have we reached kind of the top of that, if you will . And i think there will be a lot of pressure on even janet yellen who is, of course, dovish and more concerned about jobs than perhaps her predecessor was. So i think march is a viable time for a pullback on quantitative easing. Can markets not be can they do what the fed says and say tapering is not tightening . The stock versus flow argument. Its not exactly been accepted with cherry pie and cake by the markets. But i think were in a different position now than when we first started hearing this argument, which was may last year. When we first started hearing bernanke talk about the difference between stock and flow, its not actually going to affect rates in the same way that the market is perceiving it, the market didnt buy that argument. But now were already trading as weve priced in a little bit of qe going away. So i think the general effect will be more gracious with the market. If we get the gdp growth. Jeremy, anthony, stick around. More to come from you. Weve had prices out saying theyre going to push forward in key areas. Well have more on that in a few minutes time. Also, 70 of the 177 nations assess the latest corruptions index, transparencies have revealed the likes of somalia, afghanistan and north korea at the bottom of the table and saw syria plummet following the devastation of the civil war. For more on that, head to our website. When we come back, well talk about cyber monday. Recap of the headlines this morning, the 2 billion mark is broken as u. S. Cyber monday sales hit a new record. Thai authorities take a softer approach to protesters. And china says it will develop new growth areas for consumption. Adobe says u. S. Cyber monday sales topped 2 billion for the first time, up 16 . A record 18 came from mobile devices, up 80 from last year. Ibm digital analytics rose 17. 5 . Channel advisers says sales are up 44 while ebays were up 32 . Anthony and jeremy are still with us. Jeremy, what have you devised from the last full day of shopping in the United States that might help you . Yeah. Well, i think the initial read so far has been that were down about 2. 5 to 3. 5 from where we were last year. But these are very preliminary readings. And as youve just mentioned, cyber monday is going to play into this. So the overall figures, i think were going to come out with a Retail Holiday shopping season for that to make an annodime term will be okay. And for stocks in general, thats going to translate into a bit more of a positive momentum towards yearend. As far as individual retailers go, i think there is a bifurcation between, really, the top end, the electronics, what were going to see over the holiday period. But also, i think you have to look at whats happening in the very low end, kind of the Dollar Stores that were still familiar with here in the u. S. And i think some of those stores present interesting opportunities for investments in 2014. How would you play the consumer, anthony . Im still wonder whag my neighbor neighbors are going to think about having the amazon drone over my house. Thats how i shop. What jeremy is hinting on, which is going to be correct, is if youre shopping with the mobile stuff, you can do it closer to christmas. So the Sales Numbers right now look worse, but theres a huge transition going on in the United States into the mobile devices, into the internet shopping. So as a result of which, our prediction is there will be greater than expected sales towards the end as we get closer to christmas. We dont feel like we have to order today. We feel like we can but its rapid. One other thing, i want to get both your guys views on, a mystery customer has been dropping huge tips in restaurants and bars across the is it either of you guys . Im a big tipper. A come from a family that serves people, so we have to tip big. Some of them, all over 11,000, some reaching as high at 10,000. The tipper is claiming credits of the gifts by posting photos. Its not clear yet if the tip is one man or part of a group. Some believe it to be a resident of utah. We want to know, has tipping got out of control . Does the Tipping Culture improve service . Do you think wages and bar staff now expect the cash for whatever you do . We know here in europe, service is included on a lot of bills, right . So jeremy, in the states its different. I sort of object walking into a bar and having to put a dollar down because the guy gave me a beer. Am i being mean . Youre not being mean, but if theres a chance to get a 10,000 tip with every customer i serve, United States switid them. But its a lovely holiday story hopefully. You know what the waiter rule is, though, or the american waiter rule. Youve got to watch on your first date how the your respective date is treating the waiter. Thats house youre going to be treated in six months. Whoever is doing that is probably a good im happy for waiters to be paid a proper salary, right . Ill give them extra if theyre really good. When the american bar owners see your accent coming, they know youre going to be tight fisted. And that would explain why i never want to pay for the service, jeremy. And thats why your beer is warm and ours is cold. Just the way i like it. Were teaming up on him now, jeremy. In that case, im going to let you go, jeremy. Thank you very much. Good to see you, jeremy hill. I still have to put up with anthony a little longer. Get in touch with us, worldwide cnbc. Com, tweet us, cnbcwex or direct to me rosswestgate. As the ukrainian president flies to china, we should expect no end to the crisis in the near term. As we do that, a reminder, european equities are down on the session lows, as well. About nine to one decliners outpacing advancers at the moment. Hi honey, did you get the toaster cozy . Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. With my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. If i can impart one lesson to a new business owner, it would be one thing ive learned is my philosophy is real simple American Express open forum is an online community, that helps our members connect and share ideas to make Smart Business decisions. If you mess up, fess up. Be your partners best partner. We built it for our members, but its open for everyone. Theres not one way to do something. No details too small. American express open forum. This is what membership is. This is what membership does. Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Okay. We have some news coming out from the u. S. Vice President Joe Biden in tokyo. He says asia pacific regions are in a period of rising tensiones and a risk of miscalculation, but the u. S. Is fully committed to rebalancing in the asia pacific region. Closer cooperation between japan and south korea, as well. This is the british Prime Minister David Cameron is currently touring around china. The National Transportation safety board says the new york commuter train that derailed on sunday was traveling at 82 Miles Per Hour when it entered a curve where the speed limit was just 30 Miles Per Hour. Four people were killed and more than 60 injured in the accident. The ntsb says the trains brakes were working properly, but were applied only seconds before the crash. A new tank by thailands government is diffusing tensions in bangkok. Allowing protesters inside. But even as tear gas and rubber bullet ves givs have given away calmer demonstrations, the protests have continued. And the ukrainian president has left the country to go ahead with planned fourday trade visit to china despite a no confidence vote scheduled to take place today. Prowestern protesters are outside parliament in the city as reports suggest there is a plan to seize the building. The white house has criticized the use of force and the president admitted Security Forces have acted excessively. Joining us for more is alisa lockwood. Alisa, thanks for joining us. We have to go back to the beginning to see what started this. The ukraine was about to sign a significant trade back with the eu. And at the last minute, yanakovic decided he wasnt going to sign it. Was that because of pressure from russia . Yes, absolutely. Yanakovic has been essentially playing both sides for as long as he could. And ultimately, his bluff was called and there were very likely extensive negotiations with president putin. And offers were made. And as a result, yanukovych made the decisions he did. Yanukovych has always been russias man. Should we be surprised . Its not surprising, as such. It would be a mistake to see he was entirely russias man. However, he was always going to go with the sooiide of this equation that would guarantee him success in the elections. From his perspective, that was going to be russia particularly as the ukraine required Financial Support which the eu seems unlikely willing to provide. If they had been willing to provide that, would the situation have been different . Potentially. However, russia does hold a number of cards. Obviously, ukraine is still very dependent on gas imports from russia and the gas price would have been a crucial consideration in all of this. However, its clear from what has happened yanukovych miscalculated the extent to which the population is in favor of joining us moving towards the eu. We just got this note coming out from the ukraine finance minister saying can ikiev will back its debt on time. What do you make of that . Thats clearly a signal to russia that the ukraine is still on side and possibly able to appeal to russia to come forth with distance. At this point, yanukovych has to show concrete evidence of russian support. Are these protests go to go continue . And what are the implications . The protests are likely to continue. Should the open on siposition n efficient support to pass the support and if yanukovych does not take rapid steps to traes the grievances, then a continued protest is likely and indeed may turn violent. But in items of the impact on gas exports at this stage, its probably too early to say. Lisa lockwood, thanks for that. Still to come, u. S. Auto sales are expected to rebound in november following a slowdown in the previous two months. Can holiday business take annualized sales above 16 million . Well get into that in a few moments. This is worldwide exchange. Im ross westgate. A recap of the headlines. The web may be winning out this Holiday Season. Reports say u. S. Cyber monday sales hit a new record, topping 2 billion for the first time. A revamp and a resale. President obama will try to make the case again to the American People for his Health Care Reform program. It has hit several stumbles still launching in october. As the british Prime Minister visits china, the countrys polit bureau expands domestic demand and pushes forward its key reform. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. If youve just joined us stateside, u. S. Futures are indicating a softer start after the close we saw yesterday. The s p down nearly five right now. The dow is some, what, 35 points below fair value . The nasdaq at the moment is on fair value, just about the s p 500 is around 3. 5 points below fair value. European equities have been soft and were down near the session lows. The cac 40 in france, up 1. 5 . The italian market down 0. 5 . Meanwhile, u. S. Vice President Joe Biden and the japanese Prime Minister shinzo abe have been giving a statement in tokyo. Japanese Prime Minister abe saying we cannot accept chinas one sided air defense zone over the East China Sea through which japan has been flying airliners. And the japanese Prime Minister says we will continue to deal with chinas actions with u. S. Japan Security Alliance as a basis. This trip is very much about reinforcing the u. S. Japanese alliance and that pivot against perceived chinese power in the region, as well. Well keep our eyes on more comments coming out from that press conference. That is the disputed area you can see on the map. Automakers report their november sales today which is expected to slightly rebound after lower sales in october and november. There could be particular strength in suvs due to lower gas prices and amongst luxury vehicles. Joining us for more, mikalie, anthony is still with us. Good to see you. Weve had an extraordinary year for auto sales. How much of that was driven by delayed replacement and if that was the case, does that mean next year we just cant do a repeat of the same numbers . Well, heres an interesting fact. We think up until now, most of the recovery in auto sales has not been driven by replacement, but rather by a greater conversion of current replacement into new vehicle sales. So we actually think theres plenty more replacement left to go particularly around 2015 when the age of the vehicle fleet will hit what we think will be an ideal age for very high replacement rate. We think theres plenty more to go. Yeartodate, the u. S. Auto czar 15. 4 million has more licensed drivers buying a car in the u. S. On a percentage basis. The sales still have a lot more to go. What is the ideal replacement age . We think its around 13 years old versus the current age of the fleet, about 11 1 2 to is 12. So our view is around 2015 well see an inflexion in scrap rate. By the way, the pickup truck segment, which has done very well this year, hit age 13 this year which partially explains why full pickup truck sales have done well to date. So who is going to benefit most . We still think theres much more room to go in the pickup truck demand market. The mix of pickup truck sales is about 11. 8 of the overall market. We think that goes up to 13 . Maybe even more. We think all of the pent up demand metrics that we track tend to screen very very well for pull size pickups. And theres a lot new product in that segment. We go other segments in the marketplace in the u. S. Thats going to see this high of a replacement or renewal cycle for new products over the next 24 months. Do you think theres a chance to get to 16 million in sales for next year . And if we were to get to 16 million, what does that mean for Companies Like gm and ford . Were at 15. 8 next year, so there is a chance to get there next year. But we think given the age dynamics of 13 years of age that the real inflexion begins in 2015, but essentially no later than 20115. So we think in 2015, we could hit a 15 to 16 million range easily in our forecast of 16. 5. Every million unit of demand, all else equalled could mean about 1 billion in Car Companies. There is a lot of earnings opportunity for the domestic Car Companies there. And with these stacks in this single to low double digit pe, this is a pretty good opportunity, you would say . Yeah. We still think that yeah. Its a good question. I think theres still an opportunity here. These stocks are still cheap on a historical metric. Particularly on pe. Theres other good things happening around the world. Chinas growth, were seeing buybacks in dividends and things we didnt see before. So there are a lot of indicators out there. There is a, quote, new Auto Industry out there and we think the additional growth in the u. S. Market will further support those in the multiple expansion we see ahead. Thanks for that. Have a good day there. Still to come, it may be a battle of click versus brick and mortar retailers. A successful u. S. Cyber monday, coming up next. Sfoo i want to spread a little love this year [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. Some of the best offers of the year. This is the pursuit of perfection. Hi honey, did you get the toaster cozy . Yep. Got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. So i knit until it was full. Youd be crazy not to. Is that nana . [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Some of the other stories were looking at today, president obama will try to sell the American Public on the relaunch of its troubled health care program. The president will speak at the white house at 2 30 eastern. As of monday evening, the revamped healthcare. Gov website has handled around 750,000 visitors, close to the sites daily capacity and processed 18,000 enrollments, nearly double the previous record. The Washington Post reports around a third of the people who signed up contained errors generated by the Computer System. And the house and Senate Negotiates are reportedly trying to finalize a small scale deal to replace requested cuts in the next two years. Politico says under plans being discussed the Discretionary Spending would be set in the 1 trillion range for fiscal 2014, up slightly from the 967 billion in the budget control act, but less than the Senate Democrats want. Talks could still collapse. House Speaker John Boehner is expected to pass a bill next week to fund the government if no budget deal is reached. Bp wins appeals over the 2010 gulf oil spill. The Appeals Panel says a lower court erred by approving that formula. Pointing and clicking, meanwhile, appear to be the preferred way to shop this Holiday Season. Our very own Hampton Pearson has the numbers from waudshington, d. C. Were you pointing and clicking, hampton . Not as much as some other folks. The early figures are in. Cyber monday sales topping 2 billion for the first time. Now, adobe, which tracks 2,000 retail websites says sales rose 16 to nearly 2. 3 billion. A record 18 of those sales came from smartphones and tablets, which are up 80 from last year. Cyber monday was the fifth straight day of record breaking online sales. Adobe says retailers have earned 10 of their annual sales just since thanksgiving. Other trackers report higher numbers. Ibm analytics says those numbers were close to 17. 5 and nearly 30 of all the traffic was from mobile devices. Meanwhile, walmart. Com may have had its best cyber monday ever. The site had sold out of xbox 1 and ps4 game consoles listed at full price. Big savings on tvs and tablets enticed customers to shop. Channel advisers says as of 6 15 eastern, sales were up 44 . The power of social media is evident this year. Adobe says sites such as pintrest, twitter grew. Pintrest is seeing strong growth, increasing its share of referral traffic by 17 from last year. And adobe even broke down sales hour by hour, saying they peaked between 8 00 and 9 00 p. M. Eastern time, bringing in 150 million over those 60 minutes. Pretty amazing stuff. Pick your numbers, ross. Amazing. Im waiting for the drones to arrive. Thats what im waiting for, hampton. Thats the story of the week, absolutely. Thank you for that. Hampton pearson with the latest from washington, d. C. Here is a recap of the headlines, as well. The 2 billion mark is broken. As u. S. Cyber monday sales hit a new record. Gold. Miners fall fast as european stocks fall at the open. In the last few moments, china says it will actively develop new growth areas for consumption. Apple snaps up a Twitter Analytics startup company. Well round up the breaks after the break. Mine was earned orbiting the moon in 1971. Afghanistan in 2009. On the u. S. S. Saratoga in 1982. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation because it offers a superior level of protection and because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it could save you in outofpocket medical costs. Call now to request your free decision guide. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. See why millions of people have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp. Dont wait. Call now. The ftse 100 down 0. 7 . 0. 8 for the xetra dax, 1. 4 for the cac 40 and ftse mib down 0. 5 . You think things are going to go for longer than we expected the. I do. Now saying that it should happen that way. Theres a lot of people upset with the notion that it could happen, but its likely to happen because these things typically last longer than people expect. And i dont think the fed is in a position right now to do anything near a tightening. The interesting thing is how that then plays into the currency markets. Clearly, the yen is on a weakening tone. Is the yen being used as a Global Funding curve . Sixmonth lows against the dollar. But there is an expectation that the dollar is going to appreciate more. Is the yen as a borrowing currency in place . Well, if you look at the water front and the Hedge Fund Managers that im close to, we have 9 billion out with 34 different managers. And if you look at them and you talk to them about funding, that has been the trade of 2013. It will likely continue to use the yen as a source of funding. Whats fascinating to me is that despite our accommodation, were still the tallest shortest person in the room, if you will. I dont want to use the other word. But were doing a pretty good job of jaw boning our currency to a higher level relative to our competitors, if you will. So i think that will happen in the near term. The fed, when it does tighten, or even if it just starts the tapering, theyre going to give you a very, very ample warning on this. Theyre so concerned. Just go back to 2011 when they cut the quantitative easing in june 2011, the market retraced back to the november 2010 low. This is something that has the fed very, very concerned, ross. Right. It could be a landmark day for detroit in what has been a ta mu tumultuous day. Cnbcs Senior Correspondent scott cohen joins us from detroit. Scott. Good morning, ross. This is a critical day, as you said. In order for detroit to be able to reorganize, to be eligible for chapter 9 bankruptcy production under u. S. Law, the city has to show that its insolvent,. That seems to be almost beyond dispute, but all that it negotiated in good faith with its critters. Thats where the Sticking Point comes in. The unions and Pension Funds say the emergency manager who is running the city does not negotiate in good faith ahead of the bankruptcy filing in july, essentially presented them with a take it or leave it approach chald have meant drastic cuts for the pensions. They say that was not faith negotiations. But the emergency manager, kevin orr, says that he did what he had to do to satisfy that good faith standard. This decision will rest with judge steven rhodes, a very bus like u. S. Bankrupt judge. Hes promised a decision about four hours from now. You can be sure that whatever he decides will be appealed. And if he decides to approve the bankruptcy, that will set off a whole new set of battles about how to divvy up whats left of detroits assets and restructure and the hope is that they can have a Restructuring Plan in place by early next year. Ross. What time do we expect that decision, scott . We expect that decision at 10 00 eastern time, so about four hours or so from now. Hes going to make the ruling from the bench and then will issue a written opinion after that. We expect theres going to be a lot of reaction to follow that. Regardless of what he decides, a lot of Court Battles to follow. Its a big new day down there. Thanks for that, scott. Scott will be there all day from cnbc from detroit bringing us that news as it happens. Meanwhile, apple is buying topsy, reportedly for more than 200 million. Now apple is not saying why it bought the company. It specializes in analyzing twitter data and providing insight into current public sentiment. Apples opposition tend to focus on laughed warhardware. But apple stock is up around 0. 3 . Joining us with his views on the company, scott kessler. Scott, have you worked out what they might do with a company like topsy . Well, you know, the way that we think about Something Like this more broadly is that the, look, these reports are largely unconfirmed. We havent seen a filing or a press release from the company at this point. What i would say, though, is i think its fair to assume that this company, like many others, are interested in knowing more about and doing better with respect to social and this makes a lot of sense accordingly, we think. Apple a big winner from cyber monday. A lot of people continue to buy apple ipads over others. What does that do for use you your viewers to stop . We have been thinking that the company would be a notable winner this Holiday Shopping season. And the initial data hasnt cont contraverted those views. If anything, it seems like looking across a number of online. Retail outlets, apple products, particularly ipad products have been particularly strongly in demand. And that, we think, bodes well for the remainder of the Holiday Shopping season. Not only because we think that momentum will continue, but because when people buy a hardware product or platform, they tend to buy accessories, software, other types of content that are related, as well. Lets talk about twitter, the s. E. C. 25day quiet period has expired. We have a whole bunch of ratings. Youve set a accelerating and a 30 price tag. Why . Thats right. Well, ross, we put out some preipo research on twitter well before the company came public on, i believe, november 7th. And our view is basically, look, this is a strongly positioned Growth Company in a number of respects. However, unlike a lot of folks, we took very seriously a number of the operational and investment risks as well as emphasized valuation. And if you look at how twitter is currently being valued, a company thats generating no positive earnings this year, we dont think theyre generate positive earnings next year. You look at the company and say a price to sales or price to sales to sales growth basis, its trading at what we perceive to be not only excessive, but unsustainable premiums to peers. So the bottom line here is, we think twitter is a good company. We like the platform. But the reality is that there are too many risks to warrant what we see as a very stretch valuation at this point. Scott, just to step in here for a second and thinking about the momentum of these businesses, and the near term retail demand, do you think you could be right, but potentially not right for a period of time . Yours seems to be more of a valuation call. Well, sure. Fundamentals is one of the factors. The valuation is another one. Potential catalyst is something that we think about, as well. Look, this is a 12month view. So there could definitely, and we assume there will be, fluctuations in the price that dont adhere to how were thinking about the name at this point. But the reality is, theres really no way to look at the stock, we think, without considering it at least fully valued if not excessively valued. Scott, thanks for that. Anthony, thank you, as well. Thats it for todays edition of worldwide exchange. Coming up next, the countdown of markets stateside. Squawk box takes it over from now. Whatever happens, have a profitable day. Goodbye. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. Good morning. Cyber monday sales look set to hit a record as mobile grows. In corporate news, a new age tech deal as apple buys a social media startup and gets rich twitter data in the process. In washington, a call to rise above house and Senate Negotiators are reportedly trying to finish a small scale deal to set spending levels and to replace sequester cuts. Its tuesday, december 3rd, 2013. Squawk box begins now. Good morning, everybody. Ike becky quick along with joe kernen. Andrew ross sorkin is off today. In our headlines, yesterdays cyber monday online sales are expected to have hit 2 billion. That would be up 20 from last year. And it would be the best level since the firm began tracking information like this. Ibm digital analytics benchmark reports online sales were up by 18. 8 as of 9 00 p. M. Last night. Were going to talk to one of the men behind the numbers in the next hour. It is a steadily growing number and something that has to be eating away at some of the real bricks and mortar stores, too. The fed has approved new capital plans by jpmorgan and