Transcripts For CNBC Worldwide Exchange 20141017

Ipo for jimmy chu trading marmally higher in london after pricing itself at the lower end of its range. Google misses the mark with earnings as advertising revenue slows. Shares are sent lower in frankfurt. Apples latest iphone goes on sale in china. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. Its been a turn ewe leapt week in equity markets, but it looks like were going to end on a positive note. I dont want to tempt fate but nonetheless, for now, 1. 4 on the stoxx 600. Lets look at the individual markets. As you can see, its a bounceback across the board. With the more volume title markets doing better, up 3. 6 than the bigger cap markets like germany, up 1. 5 and the ftse 100 up 1 . And i describe it as a tempered bounceback, certainly not the extent to which weve seen declines of volatility in the week. Nonetheless, in the green on friday, hopefully ending the week on a positive note. Wednesday was the extraordinary day for the u. S. Tenyear, where it moves between 2. 2 and 1. 8 . It settled just closer towards 2. 2 . Bonds have come back a little bit. But nonetheless, the biggest story over the course of the last week is one of yield compression. Low yields, relate, across the board for most of the major bond markets, 0. 85 in germany. The uk, 2. 16 . The coming back of that 2 mark that we were on. Nonetheless, still low yields. Thats not the story that weve had in greece, which has moved in completely the opposite direction. The yield just below 9 . Earlier this week, it had a six at the start of it. Huge concerns about the outlook for greece. Because of the banking sector, because of the possibility of early elections, were joined by the imf data earlier has caused significant concern and huge magnitude of bond moves that we havent seen since back in may 2010. Thats not trillion case at the moment, but a bond move has been very big. The spread between the german and the greek yield is as big as its been for a couple of years. The u. S. Dollar has given up a bit of ground for this week and last week over the following 12 weeks of gains. The yen is basically flat today, at 106. 4. But the yen has gained some ground this week. Thats hurt the nikkei which well hear about in a minute. Aussie dollar is at 0. 877. Cable is at 106. 0. All of these relatively flat today. Euro dollar, 127. 9. Lets get an update on markets in asia. Sri jegarajah is standing by in singapore. Good morning, sri. Good morning, will. Thanks for that. For the asian markets, as you pointed out, with the exception of the nikkei 225, what a horrible week its been for the japanese index and stocks in particular. This is the worst week in six months. So were down 5 for the nikkei over the course of the week. The likes of toyota down 2. 5 . Panasonic down by 1 . Elsewhere, there were some gainers. The asx the 00 is a case in point. Up for the week, up again on friday. Over the course of the week, its tougher. The first weekly loss in four. Next week is going to be absolutely critical in my opinion for the china market. We get Third Quarter gdp. We get retail sales. That could encourage more volatility on the Global Markets. Weve got a lot to look forward to next week, a lot coming out of china next week, as well. And lets pick up on another volatile session. The dow falling for its sixth straight session, its longest losing streak of the year. But it did come off the lows at the end of the day. Take a look at the s p 500. It was able to eek out a small gain. James bullard made some comments yesterday that had investors think quantitative easing may be part of an active decision. So is qe4 back on the table . That, of course, is what the market was responding to yesterday. The techheavy index staging a major comeback. Its biggest comeback, in fact, since february 2009 after dropping almost 2 at the open. So a major intraday reversal. The vix, down about 4 bers on the day. Lets keep in mind, the vix is up 100 over the past four weeks indicating that there is a lot of fear as some in the markets. Switching over to bonds, dipping below 2 on wednesday. We did see yields rise for the first time in eight sgzs to around 2. 15 yesterday. Keep in mind, its hovering around 52week lows, and a lot of focus on what janet yellen will or will not say in todays session. Carl quintanilla spoke exclusively with chairman Lloyd Blankfein and asked what he thought about the movement. At this point, i think the fed has been committed and im not giving any advice on this. I think theyve taken this position despite a lot of criticism. Over the last few years, people are harping on inflation policies. Theres no inflation. We dont have enough inflation. People are talking about how they should have weve go the gone well past the point of enough growth so we should have reversed. Now people are speculating. So i would say theyve handled it right. Theyve handled it in a cautious way and i think in some ways courageous because it can turn out they didnt need to be this low for so long. Its like an Insurance Premium that theyre paying. And i think theyve been wise and courageous and will subject themselves to secondguessing. Because if the u. S. Economy is in established and in good shape and it goes on from here, everyone will secondguess and see you shouldnt have been this light. Regina is joining us. Lets move to wednesday. Extraordinary moves in the u. S. Tenyear treasury. This is meant to be a safe, fixed income asset. Yes. It was quite an extraordinary day on wednesday, even when you look at the 30year u. S. Treasury, it had a move over 30 basis points. When you convert that to bond prices, that was a sixpoint move intraday. Many markets have never seen this type of volatility, especially a lot of the fear out there and the Global Concerns that were seeing on the macro side ahead. And if the u. S. Data, regina, continues to weaken out of the u. S. , does that mean qe4 is on the table . We feel there has been a lot of deflationary risk that has been weighing on the u. S. And the rest of growth globally, particularly what were seeing in the weakness in europe. So we view that the shift in rates will be more factual. And if you look at the u. S. Tenyear, 2. 2 , i cant envision any investment time horizon where i want want to buying something, what could move so sharply as we saw on wednesday. Whats your view on u. S. Bonds . Would you want to hold it . Well, at the moment, were more neutral. I think weve seen some of the moves have been in the point of showing indication of being overbought. Its really an expression of exchange fear. And i think James Bullard say when you look at Inflation Expectation dipping at these levels, youve historically seen the fed step in with qe. So theres a lot of uncertainty in the Global Growth environment, particularly the deflation risk as well as the rise of geopolitical and the crisis of confidence in the markets today. Thank you very much. Well be back in a couple of minutes. For now, i want to bring you some flashes coming out of milan where theres a european meeting going on, a summit with deployment opportunity between moscow and kiev, the chancellor of germany, Angela Merkel, met with president putin last night. Putin has said the eu ukraine meeting was good. It was positive, he said. Interestingly, the italian Prime Minister said we should use drones to monitor what is happening on the ukraine border. Cameron has come out and said that putin told eu leaders he doesnt want a divided ukraine. All right. The bank of england may have to delay a rate rise to avod stag nating. Haldane said he was gloomier about the outlook of britain. Rates will stay lower than what he thought they would initially. Speaking, in remarks paired for a news conference, clay said the ecb will continue to increase its Balance Sheet and continue with the blocks economy. The central Bank Approved a proposal for cheap ecb funding. Now, given the weak data coming out of the eurozone, a lot of focus on the ecb and what the ecb can do to revive the economy. Interest rates cannot go much lower. He also says that the country can get more time to meet deficit targets should rates cannot go much lower. Those are some comments coming in from ecbs nowotny, Interest Rates cannot go much lower. Regina, do you think that really is the case Going Forward given the weak economy, that rates need to stay lower in addition to curb spending . Yes. I think we are going to be in an environment that rates will be lower for longer. And the reason for that is because there is a tra guile recovery throughout europe as well as the concerns with slowdown in the rest of the world, as well. One of the things that we talk about within brandie wine is that if you u. S. And the uk were the only islands in the whole world, actually, there would be a probability that rates would eventually rise. But, you know, were in an inner correlated connected financial market, so its quite important to be quite flexible and then book, considering the volatility that weve seen the last few days and going ahead. And one of the places weve seen huge volatility is the spread weve seen wile coming on air. Does that spell disaster for greece . I think the risk of rising decline of confidence. But i think, you know, b the other expressions of pessimism that were seeing in europe, if you look at even parts of high yield, sterling and european high yield sold off the last several months. And were start to see value in some of these segments of the market that havent been as attractive until the last, you know, month or so. And its clear investors are becoming more selective on which type of debt they want to hold. Given your expertise in the debt market, where do you think people should put their money if they want to invest in the eurozone . I think were starting to see market value. There has been a lot of decline in confidence, particularly what has happened and the ramifications. So if theres a bit of a shakeup, as well, in times of crisis of confidence. Theres a bit of oversoldness. So we have to be quite nimble and opportunistic. Well leave it there. Regina, Global Fixed Income manager at legg mason brandiewine. Coming up on the show, the search is on for passengers who shared a flight from dallas to cleveland with americas second ebola patient. We cross to washington for the latest on what the cdc is doing to contain the virus. And some of the most valuable art goes under the hammer in new york. We tell you all you need to know about investing. A single ember that escapes from a wildfire can travel more than a mile. That single ember can ignite and destroy your home or even your community you cant control where that ember will land only what happens when it does get fire adapted now at fireadapted. Org apple unveiled its ipad air and ipad mineny overnight. But the release disappointed with fewer features than customers were expecting. Apple pay will launch on monday. It lets users pay at the register with only their smartphone after loading credit data. A month after sales hit record highs in the u. S. , eunice is in beijing with the latest. Hey, guys. The lines outside the apple store this morning were very orderly. Everything was very calm. People were walking in to get their preordered phones. But that doesnt necessarily mean that they werent excited to get their iphone 6. The launch here in china was delayed by about a month because of a licensing issue. So because of that, theres been this surviving black market for iphone 6s for the past several weeks where some people were willing to pay upwards of 3,000 for an iphone 6. Today, theyve been able to get the iphone 6s and 6 plus for reasonable prices, only paying about 200 or so more than what people would pay in other markets. One of the reasons why people were so excited about the phone was because of the big screen. This is what they told us earlier today. Translator i bought this iphone 6 white or maybe its called silver. Its 126 gig ba bytes. I like the white front. The golden color is a bit too flashy. The its foen 6 is faster and has a bigger screen. Translator apple has good products, High Resolution and they last. So if you look at how long they last, its good value. And china is one of apple anticipates biggest markets. In fact, apple is going to be releasing the global sales figures for the iphones on monday as part of their q4 fiscal year results. Guys, one thing that weve been reporting has been, you know, just what the iphone 6 is going to do to the skinny jeans. Well, china has an answer. There is one telecom shop that had decided that they would offer up free tailoring services to swap your pants so that they could add pockets that are big enough to accommodate those bigger screens for the iphone 6. Eunice, i hope you can perhaps pick up a if a pair for our friend, wilfred. He would like to get some of those. Tailor made skinny jeans, they dont really make them in my length. Well continue our conversation on the iphone 6. Nicholas barat joins uses now. Nicholas, the iphone, china is one of apples biggest markets. How important is the iphone 6 launch and its roll out in china for apple. Thanks for having me. The preliminary numbers of the press have been reporting of 20 million had i phone 6 orred. If the 20 million number is true, and it does seem to be true, it suggests extremely strong growth in china and undoubtab undoubtably, as your colleague was saying, the very large screen is a big part of it. Chinese people do like very large phones. Theyve been very successful for the past few years. And, of course, apple is at the high end of the market wherever its selling products. China has been a really, really high end niche. On that level, are they able to continue to compete against the lower price versions, whether theyre copies or similar spec models from different brands . Well, for the reason youre saying, the Addressable Market of apple varies depending on countries. So in north america, apple has 36 , 38 market share. In china, its much lower than this. There is a problem of subsidies. They dont work in the same way as in the u. S. Or europe, meaning consumers have to prepay the price of their phone. So this creates some important psychological barriers in terms of putting 800 on the table to get your phone. More surprising over 24 months like were used to in the u. S. , europe, hong kong, its a much easier decision to make phenomenon consumers. For that reason, the Addressable Market will never be 35 in cline if a like it is in the u. S. Or 30 , 20 in western europe, which will remain stronger but still the Growth Potential is very large base of the larger screen lounge. In other emerging countries in asia, the Addressable Market very clearly varies and declines we think on levels. In china, maybe as much as 10 , 12 . Two new ipads, two new maces from apple. Yet tech enthusiasts seem to be disappointed. Why do you think that is . These are pointing, its a very relative world, you know . Apple was clear in the invitation that they were saying long overdue update. I dont think anybody was expecting anything rev lieuary. Its a bit lighter for the ipad and for the ipad mini, fingerprint sensors, as well. At least for us, they were not speccing anything very major from that product lounge. Just the usual every 12, 18 months for that refresh. So the country may be disappointed. I think expectations, at least from investors, were fairley low. It seems now all those products, that apple is trying to phase out the giga byte size. Is that a ploy to protect their Pricing Power and defend their margin which is a big question for stocks Going Forward . It is definitely what apple is doing. Moving their price range up, clear. So in iphone 6, its very noticeable. So far as we can tell, the more expensive high end model has more plus. The high density models are selling more than the low density models. This will help apple in the third and fourth quarter. Were seeing higher margin. So the same strategy for ipad is not surprising. This means that apple, about 18 months ago, made a very clear decision to be a luxury brand. And the number of, you know, very high profile hires that theyve had from Luxury Brands as in, you know, a gentleman from isl, a lady from burberry, go right in the direction that apple has decided to address a very specific segment of the market, rather than, you know, trying to go through our price points. So, you know, i think we will have very live positive surprise when they report, mainly the disease quarter in terms of margin extension. And well be getting those numbers next week. Thank you for your time. And sticking with tech, googles Third Quarter profits fell 5 , excludeing motorola and other expenses. Earnings were in line with forecasts. Results were hurt by slowing ad growth, heavy spending and a higher tax bill. Page click rose 17 , the slowest growth rate in three years. Google, down about 2. 1 on a day when we did see the nasdaq stage a major interday reversal. Google, of course, in advertising. A highly competitive market, especially now that you have social media stealing market share from google. The likes of facebook, twitter and others looking at that same ad spend. Absolutely. As you mentioned there, the focus is on paid click which is up 17 . But to me, if youre investing google because you think they can continue to innovate to monetize tech, i think its better looking forward from the other things they talk about yesterday, preferring new ways of bringing in appearing investor. A lot of focus on what, but only a 3 move. So its nothing too drastic. And speaking of new product rollouts, im quite excited about the driverless car when that comes to market. Why, are you a bad driver . Thats one way to look at it. Still to come on the show, how low can it go . How far does crude need to fall before it stalls product. We set the numbers, next. European equity markets bounce back. The u. S. Major indices drop back four the fourth drop. Investors should not panic. There was a lot of caring of positions, which was responsible for the big move and the, you know, near record flows that weve seen in some of these markets. But i wouldnt get hyperbolic about it. Jimmy chu trading marginally higher in london after pricing itself at the low end of its range. Apple is set for super size sales as its latest iphone goes on sale in china. Google misses the mark for earnings. The number of brokers cut the stocks, sending shares lower in frankfurt. The ftse 1100 is up. Lets look at greece and portugal because theyve been in the news this week. Theyre in the green. That is i suppose to be up in the markets. Portugal is up about 2 . Lets look at the stoxx 250. Up overall 1. 5 . It was a decent bounceback on friday. Lets not tempt fate. And a quick look at the bond market. Bonds have been rallying. Thats resulting in yields dropping. The tenyear treasury yield rose for the first time in yesterdays trade, the first time in eight sessions to 2. 15 . Its still hovering near 52week lows. And the tenyear bund dropping to 0. 0. 85 in a bid to safety. Take a look at the currency space. The u. S. Dollar once again in rebound mode after getting dove yesh remarks from that fed official. The euro dollar, weakening a little bit here at around 1. 27. Sterling weakening, as well, against the dollar at 106. 54. Brent crude is trading above 86 a barrel. Some positive data helps in the course of its fourth weekly loss. This as wto dipped to a fresh twoyear low yesterday. Martin, lets focus on that decline. What is the key level that would stop saudi arabia and other opec countries from continuing to produce high volume . I think were past that point. I think were probably seeing the lows for the year around about 80 as you mentioned for wti, 86 for brent. But i think one of the things that increasingly comes up is whats the number thats able to be balancing the opec budgets. And at the current levels, its around about 20 per barrel under those levels. So its a sustainable period that it can be below that that is key for the opec producers. So i think coming up to the november 27th opec meeting, youll increasingly see a bit more of a rebound as some of those Oil Ministers come back talking the price up. Citigroup suggested yesterday oil prices would have to fall below 50 to choke off the developing u. S. Supply sigh story. Is that fair or is the 80 mark more reasonable for the u. S. Supply . For u. S. Supplies, the big increase, inge 6 on 0 is probably on the low end. Youre around about 20year highs in terms of production. Thats the big reason why we are seeing a lot of pressure on oil prices. I think there has been a lot of momentum on the trade and investors have been selling it a little bit too aggressively at the moment. Now there is a concern the u. S. Economy may be slowing. If the data continues to disappoint, does that mean the data falls more . I think its getting ahead of itself. Weve seen maybe one, two different numbers that suggest that. I think the u. S. Recovery is very sustainable. And those comments that we heard about are, again, getting a little bit ahead of the markets. So i think the u. S. Recovery is very is very strong. That is in complete contrast to what the eurozone is doing. We have seen a fade in the uk story. I think u. S. Demand will be one of the key things to keep to support under the wti price. But at the margin, were seeing a little bit of dollar strength. Were dollar bull. So that is lookly to keep gains capped in the near term. Gold is one of the Asset Classes that underperformed significantly in 2013. Well, the jitteriness of investment, youre seeing a lot of different Asset Classes. It is making investors a little bit nervous. So they are looking for some sort of defensive positioning for their portfolio. So i think youre going to see support. If you can get above 1250, you might see some sustainable gains in gold. But i think the real story here is looking at silver. Now that we expect a volatility for u. S. Dollar and silver, i think silver can see some solid gains in the coming months. Martin around old, well leave it there. Jimmy chu commences trading in london, making a flat debut. Take a look at shares currently at 140. 50. Now, the luxury accessoriesmaker known for its high end shoes is priced at the bottom of the range giving the company a value of 546 million pounds. Interesting to see that despite market volatility, wilfred, jimmy chu is still Going Forward with its ipo. Absolutely. Obviously, its trading up slightly today. The interesting thing on that volatility point is that correlation. The correlation when the vix is high that it means theres reduced Capital Markets activity. That is not grouped breaking. Two weeks ago, we were talking about ipos. Volatility spikes. But just to put that into perspective, far higher than what we saw in 2013. Actually, the highest level of ipos since the year 2000. Indeed. Now, lets move on. When it comes to investing, theres a knack for picking winners. He scored big with the alibaba deal. Is he about to strike in india, too . Live from tokyo we have the story. Thank you, wilfred. Softbanks investment continues to grow. In 2000, the Japanese Mobile Communications Company took a chance on the Alibaba Company that we know now. Soft ddz bank used nearly 20 million to buy softbank and it paid off. Softbank is expected to invest 650 million in the indian ecommerce powerhouse. It will own 30 of the company. Softbank wants a piece of the growing Indian Shopping online market, a market that is expected to grow 14 times the company. Softbanks investments are not limited to ecommerce. Its portfolio includes communications and media businesses. For example, the company will invest in legendary spramt, a california based media firm. As growth in smartphones slows, mobile Communication Companies such as softbank are trying to strengthen their positions in the Global Internet ecosystem. Back to you. Thank you very much. Nih is one of four facilities in the u. S. Thats equipped with a special biocontainment unit. The cdc is now looking for passengers who were on a plane from dallas to cleveland last friday with the second diagnosed patient. President obama says he may appoint an ebola czar to oversee the u. S. Response, countering critics who question whether his administration has been on top of the crisis. It may be appropriate for me to appoint an additional person, not because the three of these persons havent been doing an outstanding job. Its not because they havent been doing an outstanding job, but they also are responsible for a whole bunch of other stuff. Lets now bring in nbcs tracie potts live from washington with the latest on the ebola crisis. Good morning. The president also said that hes recording the National Guard and reserves to go to west africa if necessary. That is additional troops. Now it looks like its possible they may need more and their authorization allows those troops to stay over there longer. You talked about ebola and the fact that nine na pham is in that unit at nih. Also we learned a passenger on a cruise ship was one of the Lab Technicians who handled a sample from thomas duncan. There was no restriction for her to leave dallas at the time. She went on vacation. She was selfmonitoring. She was in that group of 76 people checking their temperatures twice a day. Shes had no temperature, shes had no other symptoms of ebola, but she is now selfquarantined on that cruise ship. In fact, her period on selfmonitoring will be up in about two days, were told. And the u. S. Is trying to get her back because now obviously theres concern about people who have been monitoring traveling during that 21day period. Meantime, were waiting to see if, in fact, president obama will appoint someone. He said hes open to it. What hes not open to is a ban on travel to and from west africa. Thank you so much, tracie potts, live from washington. Lets give you some flashes from the ecbs nowotny. Hes saying quality over count yeahty is important for the ecb abs purchases. He says the ecb has leeway for further action and it is not the time to open the emergency funds in terms of easing. The euro dollar, as you can see, is flat in todays trade. Now, riot police carried out a dawn raid on friday morning, moving in on a key democracy protests in hong kong. This marked a further blow to the wave of student activists who have been calling for full cooperation in the region. Bernie lo in hong kong spoke to lawmakers about the nature of the campaign and how communications with the government should move forward. Well, theres really no control over how theyre going to be involved. It is a very selfinitiative type of campaign already. What are you selfinitiative . You mean no particular group is calling the shots, its been splintered, fragmented in some way. Oh, yes. People are calling the shot by themselves. A small group open people can suddenly turn something rather minor into a major understand. For example, we had about 500 social workers who were simply trying to report to the police about police brutality. But because of the mishandling of its lease, they all sat down in front of intersections, is and that became a road blockage one evening. That could have evolved into something, as well. So things are breaking out everywhere. And theres really no consider. I think students and certain groups are still having certainly influential power and demand for collective action. By and large, we cant really control everything. Albert, up until now, cy has stood by, no chance, will not go back, cannot, cannot, cannot. In fact, cy hasnt even shown up in public. This is true. Do you really have any hope, any are you all that key and beijing will show some signs of conflict . There are concessions it can make to the Moment Movement to democracy without losing faith. Thats very important. I think cy is still waiting for instructions. Hes just a puppet. He dont have any data, initiated, he just had to follow order. It is content, especially about the political development. And, its about time that the chinese Central Government begin to listen to peoples demands. People people in hong kong take it upon themselves to initiate all kinds of political protests and movement, this is the peoples movement. This is not a student movement. And coming up on the show, as some of the most valuable pieces of art go on sale in new york city, were going to talk about investing in the art market and if recent market volatility has impacted that space. Introducing synchrony financial. Bringing new meaning to the word, partnership. Banking. Loyalty. Analytics. Synchrony financial. Engage with us. Could fine art be a good choice for your portfolio . The sothebys collection going on sale next month includes van g gohhs still live, vase with daisies and poppies. I have to ask you, theres been a lot of volatility in the Financial Markets as of late. Is that impacting the art world, as well . If you looked at the sales this week, its been very solid. 90 of the art coming up on the hammer has been selling. Theres been about 300 million of art sold in the last two or three days. Its pretty strong. A sculpture of a chariot has something on for 500 million pounds. Not quite that steep. Theres van goghs still life. Thats going break the 100 million mark. The chariot. Those three items are really important. What is swg, there is going to be the block burst contemporary sale in new york where youre going to see in the space of 1 1 2 hours, about 1 billion sold. So in new york in the next three weeks, there will be about 2 billion to 3 billion of art sold and the highlights will be the van gogh, the jack rooes and and these prices that were talking about, where does the money come from, geographical and investor type . Theres some museums developing in the middle east, in china. And were seeing some individuals buying art at the 200 to 500 Million Dollar level over the space of a year. A lot of that is ultimately heading into the middle east. The u. S. Is a massive buyer of art. You dont want to rule the United States out, but its very global. We represent fine art groups about 120 clients in 23 countries. And, you know, whether it be spain or greece or lat yip america, theyre all interested in the art market. And in terms of the different types of art out there, what is in high demand from clients . The high demand is contemporary paintings, photography is quite popular. Sculpture is big ticket prices in three weeks time. Most people want amazing paintings on their wall. Geographical, you said you represent 23 countries. Is there any areas that have popped up in the last couple of years that werent there before and or the other slip side, is russia seeing a fall away because of concerns . Trust me, they are still spending. There are plenty of russians spending who have investments in europe and america. Even ukrainian families with amazing collections. Theres also strength from mexico from korea. Youre getting super wealthy families spending 2 million or 3 million to auction. Damian hurst, hes an interesting artist. Hes seen highlights. I think were going to see an interesting move in damian hurst prices. Thank you so much for joining us, phillip hoffman. Were going to bring you some flashes now coming out of moscow. This relating to the meeting that has been going on in milan. Its coming from dimitry petrof. He is saying russian president Vladimir Putin will hold more talks today with poroshenko. Alongside them will be german chancellor Angela Merkel and french president francois hollande. Earlier, putin said the meeting with poroshenko last night was positive. Claudia is in milan where those leaders have been meeting and has an update for us. Good morning, claudia. Good morning. Its interesting to hear the russian side of what happened at this meeting. More optimism, certainly, than what we were getting in terms of what actually came out of there. It appears as though, yes, this is a dialogue ongoing. But the idea and the comments that came out from the leaders as they approach this summit, was more needs to be done. So implementation of some sort of a strategy actually needs to be put into place. So theres a question of what this morning meeting was actually able to determine. As you were noting, there will be more one to one meeting for putin. One of them will be with japan. There are bilateral meetings that will be going on today. We will get a press conference later on today. We will hear more comments about if they move and how to go forward and implementing more growth between asia and europe, which was the objective here. We remember the deficits limits do need to be kept up and matteo renzi reiterating that austerity is not going to help us Going Forward in growth. All eyes are still on Vladimir Putin and poroshenko to try and understand maybe, even after this meeting today, in the end they had fought brought any final comment could actually bring something on later today. Thank you. Thank you very much for that. Moving on, a man from dallas ended up locked in a london bookstore last night after the staff locked up. Someone was on the way and the suspension gripped late night users of the network. He was eventually freed. Someone who appears to be his partner decided he wasnt impressed. He decided to tweet about being locked in before texting her. A mix of emotions shown by people for the dallas man. What store would you like to be locked in overnight . One with plenty of choice, perhaps. Let us know on worldwide exchange. Get in touch with us, worldwide cnbc. Com or via twitter krns wex. Our personal handles are on the screen. Seema, what store would you like to be locked in . Im not one to go shopping a lot. I would stick to the library. That is such a teachers pet answer. And yourself . A Department Store is slightly boring. But, you know, you could walk into the bar, have a drink, you can go and look at the Technology Sector and then have a sleep in the homewears. Thats interesting. I pictured you more as a herrahs man. Both would be good options in this particular case. Definitely. We are seeing a big move in premarket trade. The Dow Jones Industrial indicated to the up size of about 46 points. The s p 500 up 17 points in premarket trade. Coming up on the show, our next guest says dont panic, this is not the start of something nasty. Find out what hes playing, Going Forward. And its been a volatile week on wall street. Welcome to worldwide exchange. Im seema mody. And im wilfred frost. Lloyd blankfein says investors should not panic about the selloff. That was responsible for the big move and the near record flows weve seen in some of these markets. But i wouldnt get hyperbolic about it. Apples skinny iphone fails to wow critics as the sale of its latest iphone goes on sale in china. Google finds a number of stocks cutting the shares waning. President obama considers appointing abdomen ebola czar as the cdc steps up efforts to find passengers who came into contact with a second infected nurse. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. And a high amount of recent volatility has to do with the feds Bond Buying Program ending in october. But the market got a lifeline yesterday. Jim bullards comments providing some type of support to the markets yesterday. And i think this is interesting that the markets react to that. That means markets can move around too much on monetary policy. But if that is the case that the fed is considering changing its tact after ten days of volatility, they should be looking at the fundamentals. I think if the data continues to worsen, that is when qehad could be back on the table. Qe4 could be a massive, massive change for the markets. I think, a, a fed person should come out. Its a significant change in comments and the market reacts tithly do it. Dow jones indicating a move by 150 points to the s p 500 up about 17 and nasdaq up 34. Of course, it was a volatile day on wall street. Taking a look at the ftse cnbc global 300 index, we are sharply higher on the day, up about 27 points or 0. 5 . We get chinas gdp figures next week. Diving into the european markets, we did see a bit of a rebound. Yesterday traded at a 13month low. France, up about 73 points. And across the board, a couple of big movers here today in italy. Up 300 points. So a rally in european markets. U. S. Futures indicating a higher open. It could be a green friday, wilfred. Indeed. This has been very nice. Its been a different color most of the week. As equity markets have tipped up today, seema, bonds prices have just come off. The trend over the last ten days has certainly still been one of yield compression. But over the last 24 hours, we have seen things move slightly a different way. Lets look at the u. S. Tenyear. Its now just touching on 2. 2 . It was around 2 yesterday and touched 1. 8 on wednesday. Similar story across most of the major bond indices, i. E. , still low yields, lower than we were a week ago but fractionally higher over the last 24 hours. The one market that stands up moving in the opposite direction is greece. Yields are 8. 8 , only two days ago they were below 27 mark. So very big moves in the greek ten year and that, of course, concerns over the country itself rather than that tradeoff between equities and bond. Lets look at forex. In the last couple of minutes, it was said the ecb goes against Bank Regulation reform. He also said forces outside the monetary policy, germany not in need of more stimulus despite weak data. There is a list quite low. That has, in fact, moved the euro dollar over the last couple of minutes. Its still not a massive move over the last trading session, 1. 2822. The u. S. Dollar, a little bit of strength against the yen. That has been against the recent move over the last week. Nonetheless, the dollar fought significant highs against 106. 48. Lets check in on markets in asia. Sri jegarajah is standing by as ever. Good morning, will. Its been a fairley stable day, all told. So were cutting off a turbulent week on stable footing. Down by 1. 4 . That means losses over the course of the week have added up to 5 . So that is the worst week in six months. The exporters getting screamed today. Toyota down by 2. 5 . Another underperformer today was the shanghai composite. This represents the first weekly loss in fourth. Yes, we have data next week. That is going to be very critical for the Greater China market if not the global market. Third quarter gdp, Industrial Production and retail sales. I expect it will add to the volatility on the Global Markets and add to the down beat tone in the broader global economy. On that note, ill send it back to you and seema. Sri, thank you so much. Lets recap what happens on wall street. It was another volatile session amyself heavy volume. The dow falling for its sixth straight session, its longest moving streak of the year. The Dow Jones Industrial coming off the low. St. Louis fed president James Bullard made some comments that had investors think qe4 may be part of the discussion. The s p 500 trading back above 1800. Taking a look at the tech heavy index, the nasdaq staging a big comeback since february 2009 after dropping as much as 2 in the morning. As we just told you, came back slightly flat on the day, but back above 4200. Taking a look at treasuries, we saw yields rise for the first time in eight sessions. Right now, trading up around 2. 9 , but hovering around its 52week lows. The vision, after its sharp move to the up side, down about 4 . To put that into perspective, the vikz up 1 over the past month. Carl quintanilla spoke exclusively to Goldman Sachss chairman and ceo lloyd blank fine and asked what he thought of the market volatility. A few weeks ago, people were bemoaning the lack of volatility. Not so much of volatility, but the lack of risk premium, the inability to separate the good from the bad. And it was a little bit like the jeanie in the bottle. You wish, you wish, and now we have an avenue launch of roll tilt. And were joined now by martin leclair. Thanks very much for joining us, martin. I suppose we have to start with the first question, which is what is the mine factor in your eyes which has driven volatility this week . It seems like the unknowns that are out there that its hard to quantify whats going to happen with ebola or the geopolitical risks. The new concerns about potential deflation in europe. So i think there is a conversion of all these things that just happened in a market that was begging to be corrected. That what were seeing. And what about earnings . How big of a role can earnings play in this market . It seems like the market has been ignoring those and focusing on global macro fears. Yeah. The market doesnt its hard to know from the market if good nuts is good news or if bad news is good news kind of a thing with respect to earnings. The prosperity thats been created over the past five years or so, a lot of it has been liquidity driven by the central bankers. So they continue to be in the drivers seat. That is really one of the big looming risks out there if they were to change course. But he ever indication is that theyre not changing course. I think thats why weve seen some stability in the markets for the last 24 hours. I spoke, martin, were seeing theyre not likely to change course in terms of raising rates too soon. But at the moment, quantitative easing ends this month. So is that something that has concerned markets this week and could that itself be change over the next week or so . Certainly it can be changed. The data we look at, because we dont like to get bogged down by daytoday or week to week movements. Some of the interesting statistics is once you have a termly established market, before a bear market typically comes, you have to have a couple of things. Certainly here in the u. S. , you need to have the economy peak out. If history is a guide, a bet right now that were going to enter a bear market means were going into recession sometime in the spring. Particularly now if Oil Prices Stay down, the consumer is going to feel richer in the next couple of months. Something like a 650 rebate to every family in america just on their gasoline bills alone, not to mention the winter with Natural Gas Prices being potentially lower than they were last winter. So that is a real tailwind for the economy. The other thing is that the fed, historically, once they start raising rates, the market doesnt tend to peak out for at least another two years on average. The shortest time period has been six months and that was back in 1961. You have all these historical things working in your favor. Thats what were looking at right now. Martin, stay with us. Lets give you a rundown of what to watch this trading day. September Housing Starts are at 8 30 a. M. Eastern, forecast to rise more than 4 to an annual rate of 1 million. Building permits are expected to rise more than 2 . Just before 10 00 a. M. , we get the october consumer sentiment, very much in focus after that dais pointing retail number. As tore earnings, ge, morgan stanley, bank of new york mellon, and sun trust. Lets take a look at today anticipates other top stories. Nina pham, the first nurse in dallas to test positive for ebola, has been transferred to atlanta. The cdc is now looking at pang passengers who were on a plane with the second ebola patient. The cdc says she may have shown storms earlier than first thought. President obama says he may appoint an ebola czar for the those who question whether his administration has been on top of the crisis. It may be appropriate for me to appoint an additional person, not because the three of these folks have not been an outstanding job, susan size, security adviser, its not because they havent been doing an outstanding job working hard on this issue, but they also are responsible for a whole bunch of other stuff. Positive test results for its experimental ebola drug. The drug showed no ill effects on healthy humans. But they havent tested the drug aefk effectiveness in humans. Still to come, apples iphone six goes on sale in china. We cross to beijing. Find out if the bigger screen will mean bigger profits for the tech giant. From fashion retailers to healthcare providers, jewelers to Sporting Good stores, we provide Financing Solutions for all sorts of businesses. Banking. Loyalty. Analytics. Synchrony financial. Engage with us. Welcome back. U. S. Futures pointing to a bounceback. Google ramps up spending to see growth slow leading to a Third Quarter miss. President obama considers appointing an ebola czar to oversee the containment of the virus. Apple unveiled the newest feature of its a pad i and ipad mini 3. Nearly 500 banks have signed up for the Electronic Service including Jp Morgan Chase and bank of america. It lets users pay at the after loading their credit card and debit card data. To tell us what nand looks like in china, eunice yoon joins us live from china. Hey there. Yeah, i was talking about the iphone 6, everybody here is really excited about it. Today we saw that the lines were relatively calm, very orderly. Most people were talking about how they really like the big screens. Overall, this is a launch that is happening a month after most other countries and theres a bit of a licensing issue. And because of that, the only way that you could actually get a phone was on the plaque market in china. And so because of that, people were paying up to 3,000 or so to get an iphone six. Now theyre paying more roent prices, anywhere between 800 to 1400 or so. When we went out and talked to people on the streets, they said they really like the screen. The ecbs weidman, a little bit of strength to european dollar with his comments, he said low inflation driven by forces outside of control made imt less likely to increase. He said there is a risk of deflationary spiral in the eurozone is low and indeed structural overalls are essential to lift eurozone growth, not so much the mormon tear policy. You can see quite a big intraday move there that we saw. The ftse 100 is up 1. 2 . Germany is up 2 . Its rallied about 20 in the last half hour or so. Still to come, is jimmy chew the new company on the market . Is it get ago bid . Well take a look and let you know if its a good investment for your portfolio. [coughing] dave, im sorry to interrupt. I gotta take a sick day tomorrow. Dads dont take sick days, dads take nyquil. The nighttime, sniffling, sneezing, coughing, aching, fever, best sleep with a cold, medicine. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Googles Third Quarter profit fell 5 excludeing motorola. Earnings were in line with forecastses. Results were hurt by heavy spending, higher tax bill. Paid clicks rose 17 expect againstations of 22 growth. That was the slowest growth rate in three years. Google has fallen around 2. 3 in trade today. Jimmy chu making a flat debut in european markets. Jimmy chu trade flat at 140. 10. The luxurymaker known for its high end shoes priced at the bottom end of its range. This gives the company a value of 546 million pounds. No new shares are being offered. This ipo coming on the back of what has been a volatile couple of weeks for the ipo market. In fact, two Major Companies delaying their listings. Good technology tlad their listing to 2015. We spoke about bogs, they delayed their listing until sometime next year. Absolutely. And this data that weve had out highlighting the close correlation between volatility and lower Capital Market activity. One of the stats i wanted to pick up on, 2014 yeartodate, the sort of year that weve been saying so far has had plenty of successful ipos, saying only 17 percent of those ipos are priced above the range with almost 40 pricing below. Perhaps on the pricing point not quite as strong as some people had suggested. Right. But if you look at the sector performance, technology is still one of the best performing sectors in terms of ipo. On that note, lets take a look at u. S. Futures because were seeing a major move in premarket trade. This after a with he saw a major reversal in stocks yesterday. The s p 500 seeking out a gain, nasdaq right now up 40 points in premarket trade. On that note, lets bring in martin eclair. I want to ask you about the recent market volatility. Some are saying alibaba was the top of the market. Since then we have seen a significant move in the equity market to the down side. Do you believe theres any correlation . Theres a Conspiracy Theory or something. I think its probably just a coincidence, but it did show that the a lot of the social media stocks had gotten ahead of themselves and so forth. But i think those kinds of stocks peak peaked out more in the spring, if im not mistaken. Martin, touching on alibaba or where it comes from, at least, i noticed in your notes youre overweight chief asian markets. Theyve been the hardest hit. Would you be deploying more cash in markets like that . Well, we very much like singapore prosecute. Thats our favorite market in asia, primarily because they have a very robust Capital Market. They have the rule of law. So but south korea has some great companies, as well. They had great businesses selling at really good prices. Many of their good businesses trade at pe multiples and low teens. And yield 4 or 5 . Thats where really our focus is. And to a lesser extent, hong kong. And europe, of course, has been a major concern for investors, martin. How are you as a port foal your manager factorses in the eurozone as well as the threat of deflation . Well, youve had a in our minds, there are two kinds of businesses that are attractive in europe. Once are kind of selectively some of the utility companies, the gdfs of the world. And martin, we have to keep it there and bring you back in a second. Martin leclaire. Welcome to worldwide exchange. Im seema mody. And im wid fred frost. Equity markets make their way firmly into the green. Lloyd blankfein says investors did not panic about the recent selloff. Theres a lot of paring for position, which is responsive to the big moves and the near record lows weve seen in some of these markets. Investors paying attention to a peach by fed chair janet yell. Meanwhile, the euro zoent does not need qe. A flat ipo for jimmy chu, barely moving in london after pricing itself at the low end of its range. President obama considers appointing a ebola czar as the cdc looks to find passengers who contact into contact with a secretary infected ners. Youre watching worldwide exchange, bringing you Business News from around the globe. Another volatile session amid heavy volume as stocks slumped in yesterdays trade. We did see a bit of a reversal in the s p and the nasdaq. Taking a look at u. S. Futures, they are sharply higher in premarket trade. The Dow Jones Industrial indicating a move to the up side by around 300 points. Comments from fed president bullard who said the fed may want to consider ending its bond buying market program. We saw markets move off the lows of the day. Taking a look at european market, it really is green across the screen despite that inflation yesterday which came in at 0. 4 . Five ones in the eurozone seeing deflation. After a drop in prices over the past 12 months. But the market seems to be brushing off those feares and focusing on the bullish comments coming out from the fed. The xetra dax, german xhkts which have not in focus given the disappointing data up about 164 points. A major move for the german markets, up almost 2 on the day. Perhaps up about 2 . I also want to give you a look at the italian markets, right now up 1. 9 , or 345 points. So a big move in europe yap markets right now. Lets see if that can hold into the end of the session. Wilfred. Indeed, seema. Yesterday we heard from st. Louis fed approximated James Bullard. Carl quintanilla spoke exclusively to the ceo Lloyd Blankfein and asked what he thought of the movements in the u. S. Treasury markets. At this point, i think the fed has been admitted. And im not giving them advice on this. I think, you know, theyve done some theyve taken this position, by the way, despite a lot of criticism, just over the last few years people were harming on them, how inflationary policies are. Theres no inflation. We dont have enough inflation. And people are talking about, in a critical way some people, about how they should have weve got well past the point of enough growth so we should have reversed. I would say theyve handled it right. Lets bring in martin leclare. Mart yip, i cut you off on your strategy Going Forward given the slowdown in the eurozone. How are you factoring that in . Well, there are two kinds of companies we favor in europe. One are the utilities, the gdf and vivan did is of the world. And then there are the small to midcap space. Maybe they havent been growing so much, but theyre paying the free cash flow, atrabtive dividend yields of 4 , 5 , 6 . Thats where were focused in europe. And martin in sorry. I was just going to say, both the europe and the u. S. In particular what sector are you focusing on . Under the premise that we are in for a period of extended volatility. One of the things we like are dividends. That gief investors an anchor in order to do what typically is the right thing to do, which is the old adage, you make your money by the sitting. And so we like the areas particularly in either the big Global Consumer brand names that are paying dividends of 3 or more that are that have come down a bit lately. And alternatively, the perceived slow growth businesses that are out there that oftentimes right now are yielding 5 and growing. So those are the those are the really big areas. Big i. T. Selectively is attractive as are the as i said, some of these utilities and Global Consumer stocks. Martin, back to the u. S. Markets. Weaker than expected retail sales rocked the market. Is the Economic Data coming out of the u. S. Continues to weaken, what data would you be looking at next week in terms of whats the most important economic report investors should be eyeing in terms of getting a good look and a way to assess the health of the u. S. Economy . Well, im not an economist and i dont really sort of focus so much on individual data points. The common sense thing that we believe is that the economy is improving in the United States, that its on a slow trajectory of continued growth. Its not going to be 4 or 5 . Certainly 2 or 3 . If oil prices remaybe low, although its going to be head winds for these fracking businesses, the rest of particularly the u. S. Consumer will feel a little richer. And that will filter into probably a good holiday season, so those numbers wont be seen until possibly january or february. That is our mindset. Martin, well leave it there. And coming up, googles Third Quarter results were hit by slowing growth in its biggest business, search ads. Well ask a google analyst whether hes concerned about fewer paid clicks, after the break. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Welcome back. U. S. Earnings get set into full swing next week. We have apple and ibm reporting after the bell on monday. On tugs, we have three dow components out with results, mcdonalds, verizon. After the close, well get the first set of Earnings Report from alibaba. On wednesday, the focus will turn to at t, boeing, abbott labs. Thursday, gm, tech stocks, amazon and microsoft after hours. And we wrap up friday with results from bristol myers. As we saw this week, markets havent been focused on earnings, focus on renewed concerns over Global Growth and existing data. Absolutely. Its been hard for earnings to take the floor when theres been so much negativity about markets, generally speaking. We are going to focus on one of the goliaths whose earnings are after the bell. Google fell 5 , results were hurt by slowing ad growth. Paid clicks, the key measure of ad volume rose 17 , the slowest growth rate in three years. Were joined now by james dix, a securities analyst at webb bush securities. James, lets focus on those paid clicks, 17 growth that was forecast to be 22 growth. Is that a big worry to you . Actually, not really. If you look at the flip side of that equation, youll notice that cost per click data was actually better than it was in the prior quarter. You will find that over time, the click growth tends to move inversely to the cost per click growth. So you actually had a pretty small pricing decline in the Third Quarter in terms of cost per clicks relative to what you had in the second quarter. I want to focus for investors seems to be googles ability to penetrate new markets, james, even i was on the Conference Call last night. A lot of questions around whether google will be able to compete in the apple space, youtube being able to steal market share from tv. Is google serious about finding new ways to enter new markets in order to offset slowing growth in advertising . I think theyre very serious about it. I mean, if you look historically, back at 2000 and looked at googles growth from 2000 until now. A lot of it comes from the print industry. If you look forward, the growth from the print industry advertising migrating to google is going to be much less. It is their attempt to may youtube more of a competitor in television. I think there might be having some affect there. Its down about 2. 5 in frankfurt today on trade. What are you expecting following these results . And is it an Investment Opportunity . Yeah. I mean, were neutral rated on the stock. I think it will be down when the market opens here in new york. Earnings were a little over 4 below consensus estimates. And i think probably more importantly, there were some underlying drivers of that in the core business, which were probably below expectations. Especially given that theres macro concerns, especially since googles fastest growth region was outside of the u. S. And outside of the uk and thats where in particular in europe and in some of the emerging markets were having more macro concerns. I think probably thats going to weigh on the valuation for google, as well. Thank you very much, james dix securities analyst at red bush securities. Lets give you a rundown of what to watch this trading day. September Housing Starts are out at 8 30 a. M. Eastern forecast to rise to an annual rate of 1 million. Building permits are expected to rise more than 2 . Just before 10 00 a. M. , we get the first report on october consumer sentiment. Fed chair janet yellen gives opening remarks at 8 30 a. M. Eastern. On that note, lets bring in Jim Osullivan who joins us live in the studio. Whats the economic report you will be watching next week to better assess the health of the u. S. Economy . Next week is quiet for numbers. Every week we get jobless claims. Frankly, if i could have one Economic Indicator for the next week in advance, it would be jobless claims. Yes they fell again because of the lowest level in 14 years. I think thats just from the claims report in particular, but also the philly fed number that came out yesterday was that the weakness signaled by witness numbers was a false alarm. As you mentioned, the weakness, theres been a bit of weakness as some of the data released. Has it been banned enough to justify the volatility weve seen coming back into equity market this week . Certainly the u. S. Numbers have been fine overall. Right now, it looks like Third Quarter gdp is adding up to at least 3 or so. Tin flagz numbers are still tame, but there hasnt been a big change. The issue for markets is the global turmoil that weve been seeing. And theres no certainty on how much will that spill over against the u. S. . Against that back drop, i think markets were probably on edge. When you saw those weaker numbers on wednesday, there was probably a reaction. Its pretty reassuring. How important is that number and do you think the drop in the price of gas will help those numbers move higher . I think that number will be down, actually. And it will probably be a blow to consensus. There has been a blow to deterioration of confidence, really. Worries about geopolitics and health concerns. So i think there is a little bit of deterioration of the confidence numbers. Last month, 84. 6. Ive got 82. 5 this morning on a drop in consensus. Obviously as confidence pledges, thats a different story. Chief u. S. Economist, thanks for your time. Neen that phi in a, the first dallas nurse to test positive for ebola has been transferred to the National Institute of health in married for treatment. The cdc is now looking for passengers on a plane from dallas to cleveland last friday. President obama met again with cabinet and top u. S. Health officials at the white house on thursday evening. He says he made a point to oversee the u. S. Response. Nbcs tracie potts is in washington with the latest. Yes, there are several people in the government who have been working on this. But all of them have other responsibilities, as well. So the president says he may appoint one person who can solely focus on our ebola response. That response may now include the National Guard. The president has authorized them to heavy to west africa. But what the he is not authorizing is a tramp ban. He says that could put the u. S. At risk. So that is not something he wants to consider at this time. This morning, we have new information from had telth department of another Health Care Worker who were selfmonitoring who went on a cruise. Now, that woman is selfquantity teened on that cruise ship. They are trying to get her back here to the United States. Tracie, thank you very much. As we head to a break, here are the other top stories on our radar. U. S. Futures pointing to a bounceback. Potentially ending the dows sixday losing streak. Jimmy chus shares trading flat on their first day in london. President obama, as we just told you, considering appointing an ebola czar to oversee containment of the virus. Act i. Scene 3. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Ebola fears as well as disappointing data out of the u. S. Continues to weigh on Investor Sentiment and has resulted in a lot of market volatility. Lets get you up to date on what weve seen in the u. S. Markets. The dow has fallen for a sixth straight session, its longest losing streak of the year. The nasdaq coming back a little bit, as well. A huge intraday reversal up about two points in yesterdays trade. The bond market very much in focus for traders after the tenyear dipped below 2 on wednesday. We did see yields rise for the first time in eight sessions yesterday to 2. 15 . Put that into perspective, its still trading near 52week lows. The vix, after a sharp move to the upside calmed down just a bit in yesterdays trade, down about 4 . You can see the volatility index up about 100 over the past four weeks. Yields move back in italy and euros favor. Well, given the fact what we know is happening within the eurozone, we know what the ecb has got to do. And, therefore, for me, theres only one thing you can do. Now were starting to see pockets of value in european eye yields. Yields are above 7. 3 . Theyre widened by 200 basis points in risk premiums. Theres been a lot of decline in confidence, particularly what has happened with you and ramifications. Base levels to the gold price. If you can get about 1250, you might see some more sustainable gains in gold. But i think the real story here is looking at silver. And the increase in volatility and silver and particularly u. S. Dollar volatility is instructive to the silver price and has been historically. Now that we expect a bottoming in volatility to the u. S. Dollar in silva, i think silver can really see some pretty solid gains in the coming months. Lets give you a quick update on markets. Its been a turbulent week for markets. But a bit of a bounceback today. That is the bottom row, greece up 5 today. Significant losses earlier in the week. On the top row, up to 1 , to 1. 5 . Up about 107 points in premarket trade. Similar story for the s p 500 and the nasdaq. Lets bring in Ben Lichtenstein, president of tradersaudio. Com. Ben, futures indicate a sharp move to the up side this friday morning. Do you think markets will hold . Well, i think right now were seeing a continued bid relative to the bid we saw off that low from wednesday afternoon. The high Energy Activity to the down side was recollejected for most part. We have yet to get above wednesdays highs still. A lot less value. That is going to be the real attempt here today. So far again in the overnight sgz, were seeing this bid in the market. But again, somewhat limited. While we have come off those upper levels, we have significant activity and energy in the market. There is no question. If you look at the volatility index, Still Holding those upper levels. Its coming off a bit. Again, i dont think the energy is gone, if you will. I think were taking a little bit of a breather. I think were taking this Dust Settling activity. What i would look for is that sell side type mentality resume would have been a trade in wednesdays lows. So that is a significant area right now to keep an eye on. In ben, given that one of the big reasons for the recent volatility has been europe and particularly german sentiment, which sectors, which areas are you looking at in the u. S. Market that you think can escape the Global Growth concern . Well, ive been really looking at the tech sector for a while. Recently, we saw the nasdaq skyrocket through that 40 handle up into the 41 right while the s ps are trading up into that alltime high, that 2015 area, mid to late september. I think that theres a lot of pent up demand, if you will, in the tech sector. You look at a stock like apple yesterday releasing new products out there. Again, i just think with such an innovative market and such pent up demand over the last five, ten years, if you will, i think again we could see some big moves to the upside should the broader base rally resume. I think thats going to be more dependent on some of the other specific internal components of the market. Again, for the most part, i look for the tech sector to be the real strength, if you will. And were going to continue to watch the price of crude oil, which broke below 80 a barrel for the first time in a long time. Absolutely. Thank you very much, Ben Lichtenstein of traders audio. Com. Thats off wee come time for on worldwide exchange. Im wilfred frost. And im media mody. Squawk box coming up now. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. Good morning and welcome to squawk box. New video released this morning of the first nurse to contract ebola. Shes been transferred to the National Institute of Health Facility in maryland. Theres news that the other nurse may have had symptoms even earlier than first thought. Plus, could an ebola czar be on the way . And we had a bit of a relief rally yesterday from the lows and, actually, today were seeing futures surge with europe bouncing back. Is this just a head fake and an opportunity to sell into this . Or is it something more lasting . And starbucks for life, the coffee giant very busy boosting pay, changing dress codes to allow tattoos, while offering a mega prize. Its friday, october 17th, 2014. Some of our headlines get a tattoo and squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. And what a difference a day makes. Futures this morning are point to go a sharply higher open. That is a much different story than we were talking about just 24 hours ago. In fact, this morning, dow futures up by 140 points above fair value. S p futures up by 17 points, the nasdaq up by 32 points. The dow is on a