To miss expect ages. And concern over emerging market volatility takes center sage at the World Economic forum in dalia. Philippines looks poised to ride out the storm for now. A very good morning to you. We kick off with the ia global report for august. Global supply down by 570,000 barrels a day because of rising tension over syria and a mere total cut in libyan production which sent oil futures higher. Global supply, they say, is estimated to just over 91 Million Barrels a day. With both opec and nonopec nations registering declines. The russian proposal on syria tries to gain traction. The agency, a little bit more positive about supply increases in the fourth quarter. Antwaan house, the editor of the world Market Report will be on european closing bell tonight at 7 35 cet. Brent currently trading at 111. 67. We did briefly spark up to 116 a barrel when we thought a strike was imminent. So more on that during the program and later today. As the eu announces new plans to scrap cross border roaming charges, well investigate the potential impacts on the Telecom Sector with the president of the European Commission. Plus, could germanys socalled well sit down with the teddy bearmaker. And well bell at the World Economic forum to find out if the asian Coffee Business is heating up. Next week anticipated fed meeting, we will be joined in the studio by gold man sax. And is Dunkin Donuts ceo will be with us at 1215 cet. Meanwhile, 7. 25 is the new rate. Theyve been trying to deal with a sharply weaker rupee here. Another hike in rates after the emergency meeting two weeks ago. Indonesia, another high. The bnks rates down by 7. 25 . Well keep our eyes on reaction for that. Right now, just pulling out, gold just hit a fourweek low on hopes that a syria strike will be averted. This as the leadership of the Syrian Rebels rejected a russian offer to end the crisis in the country by ending the crisis on its weapons arsenal. This all comes as u. N. Inspectors report will be published on monday. Diplomate believe it is unlikely fault will be attributed to either side. Mean wile, u. S. Secretary of state john kerry and his russian counterpart plan to meet in geneva over the crisis. All the members of the Security Council is due to meet. It all comes as a plea on for caution has been issued. The russian president warning about the dangers of the opposition. He wrote there are few champions in syria, but there are more than enough al qaeda fighters and extremists of all stripes battling the government. He went on to say he no one doubts that poison gas was used in syria, but there is every reason to believe it was used not by the syrian army, but by patriots. Carrie, that is a step change, right . Exactly. They were expecting cautious optimism on what they can actually achieve, secretary of state john kerry making several trips across the atlantic trying to get something done in terms of removing those chemical weapons from syria. The russians reportedly have already submitted their plan to the u. S. , so im sure theyll be discussing that in geneva today. But i do want to mention basically the syrian leadership, theyre raising the red flag here and saying, hey, wait a minute, what about us . Theyre rejecting this idea of taking chemical weapons out because that doesnt do anything for them in terms of the situation on the ground. Then you have the political situation in the United States, president putin, if you look at what happened at the g20 last week, its president putin two, president obama zero. I think president putin has managed to do that and hes managed to do that in the New York Times. Hes one upped the president once again, it seems. Hes clearly setting the agenda. Exactly. On a political basis. The question is, is it the right agenda . Thats the bigger question. President obama is working on capitol hill. We wont hear from them until monday. This is an ongoing fluid story. Hadley, for now, thanks very much, indeed, hadley gamble, our middle east correspondent. This is where we stand with Global Equities right now. Six to four vapsers outpacing decliners. Im sorry, three to two is what i should say. Pretty flaft right now, the ftse 100 was up from four points yesterday. This morning, gains despite the fact that we had triple digit gains for the Dow Jones Industrial average. Up 0. 2 for the german and uk markets. The cac 40 is flat. The ftse mib is fairly flat, as well. Its still expecting improvement in the second half of the year. Stocks up nearly 5 . We have Ricardo Group at 1. 85 . So i think its encouraging growth in both autos and basket size, as well. Next, up 0. 3 , 8. 2 rise for next. And finally, Home Retail Group up around 4 e at the moment, confirming its full year Profit Guidance after likeforlike sales increased 2. 7 over the last year with those comparable sales at its home based stores jumped around about 11 . A couple of other stocks, as well, richemont down 2. 72 after luxury groups reporting a 9 sales growth for the first five months of the year. The group blaming weaker than expected demand from china. Lets get a little bit more. Karen is looking at this stock for us. Analysts were expecting a slowdown partly because of that crackdown on corruption. Having said that, the slowdown was more pronounced than many analysts were participating. Sales in asia overail, this is compared with 12 percent in the seam period last year. If you look at the other regions, we have pretty good growth in europe and the middle east, up by 10 in the first five months of the year. Having said that, a lot of it is because many tourists are going and spending on luxury items there. Weve got japan and Americas Holding up extremely well, both showing growth rates of around 17 . That is the abenomics effect. Some of the underperformance today is also based on some profit taking shares and the company are up some 31 yeartodate. Carolin, thanks very much, indeed. Thats the latest on richemont. Lets take a look at vivendi. It will decide on a spinoff of its business by 2014. Stephane has an update on this out of paris. Hey, ross. Its another big surprise, to be honest. They have been wondering what dodd with its telephone business which is capital intensive. They need to invest massively to build its 4g network at the time. Its revenues are declining. In the Second Quarterer, revenues dropped by 17. 5 . The average user is declining. And as a result, the group is trying to reduce its cost base at the end of last year. This you a announced 850 drop cuts. So the plan is to space vivendi apart. On the on other side, the telecom business. Its not clear exactly what would be the plan for sfr. Would it be listed separately or would we indeed try to sell it to another major player in europe. Thats all the speculation that we are seeing this morning. We knew for sure that vodafone will look closely at the story. Vodafone, nearly 40 of sfr for a lot of the years. At the time, va lendy was not selling and things have changed with the Financial Resources to buy. Potentially since the recent deal with verizon in the United States. So plenty of speculations on the sfr, which at home in france is facing difficult market conditions. Over to you. Stephane, for now, thanks. How much has new low cost competitors caused for established getters like sfr. The Vice President of the European Commission should join us in a first on cnbc interview. Meanwhile, lets check in on whats going on with bond rates today, as well. 2. 89. Gilt yields have come back from that 3 mark. 3. 04 , the highest in two years. Yesterday posted strong employment numbers. We had just come down below that 3 level, as well. On the currency markets this morning, the dollar index struggling. Aussie dollar up to 92. 52. Sterling on a 1. 58 track at the moment. Dollar yen, back below that 100 mark, as well. This time yesterday around 1. 3260. Now we understand the central bank has kept things unchanged. On that note, lets bring you up to speed with everything in asia. Sixuan has the details. Hi, sixuan. Thank you, ross. China markets outperformed yet again led by financials and some shipping counters while costs continued to rise on a brighter economic outlook. But the nikkei 225 lost a model 3 . Shinoah levels came in better than expected. Mitsubishi motors and sharp both tanked. Sharp tanked 6 to a 2 1 2 month low as it may rise up to 1. 5 billion in a public share offering. Mitsubishi motor tumbled 8 after it was reported the automaker plans to offer 2 billion for shares to the public. In china, coal is under pressure after basing announced measures to reduce coal risk consumption and shut down old plighting facilities. Meanwhile, apple suppliers continue to trek lower finding apples tumble overnight. And the market connected the latest iphone is available. Down another 6 today. Back to you. Goldman sakes says its time to play the countrys rebound. Theres a special report on cnbc. Com. But the banking firm has pointed to the positive industrial outpoints data which emerged last month. Follow cnbc, as well, on twitter cnbc world. And at the World Economic forum in china, the health of emerging markets is not surprisingly a major key firm. Some are questioning whether fears of fete tight. Ing is still a bull. I dont think the fundamental attractions to the emerging markets have changed overnight. If you looked at the financial markets, you would think everything changed in sort of june july. I think thats overblown. It has more to do with the dynamics of dollar flows in the context of Ben Bernankes move tapering and so on. Which is to say that emerging markets dont have challenges, by utz just that the underlying dem dprafices, process of elimination and industrialization are still driving impressive rates for pdg growth. The deputy managing director told cnbc that unlike the last Asian Financial crisis when economies were in trouble, the region now suffers more from a perception problem. The key issue is looking for the transparency, looking for the clarity for policy framework, looking for the proper communication, and looking for the xag capacity being able to react. At that time, its very much macro driven now. Because of the level, more are looking for more. I think those are the challenges for the emerging market today. And well have more for the World Economic forum in dalia. Joining us from singapore now is collide mcdonald. Clive, good to see you. Its been a while. Look, two voices there. Your boss and two men saying, look, its not as bad as the markets are pointing out, except that indonesia has just come out and surprised us with another rate hike after an emergency move two weeks ago. Yeah. Well, i think for indonesia specifically, theres an ongoing inflation issue. We ourselves didnt expect a 25basis point hike today. But i think that peter hit the nail on the head when he referred to flows have changed. Weve seen a big reversal in terms of flows. If we look at the evolution of portfolio flows, it peaked at about 34 in inflows during early march. Until last week, we had govern negative, negative 2 billion is the year to days number now. So between march and last week, weve seen 36 billion outflow. Do you think that outflow is going to slow up . Is it going to stop . Whats your view . June was the worst point. And then in august, the early part of august, we certainly did see a pick up again. Frankly speaking, we look at the data over the last two weeks. Well be losing about 2 billion or 3 billion a week. No sign of any letup. Given whats happened in india and the better Economic Data weve seen in china, i think that will help flows a little bit for the most recent period. Okay. Clive, stick around. Well come back to you fairly shortly. Thanks for joining us. More to come from you. Now indonesia are catching markets surprised with that high. Clive comes back with views on shine na, as well, after this. [ male announcer ] these days, a Small Business can save by sharing. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . So weve had a Surprise Central Bank hike from indonesia. Most had expected to stand pat after the emergency meeting just two weeks ago where they hiked rates to try and curb inflation and also, of course, to defend the rupee. Weve had a decision from the Philippines Central Bank there at no move in rates. Central government says no need to move rates giving steady prices. At the same time, bank of korea held firm. The governor said they face ongoing risks, but the domestic economy is improving. So clive, were just talking about all these outflows and there are signs of it flowing. Away from the impact on indonesia, who is fairing best at the moment in the region . Who is dealing with this the best . Well, i think the stand out in my mind is china and korea. China is very much insulated from the significant tightening and significant changes across the reasons. Korea has increased its links with the china market. While its had problems of its own in terms of indebtedness, these are not new factors. These are well known. After its shock in june, the data starts to get better. The mood music from policymakers is a bit better and i think korea is clearly benefitting from that in my mind. Clearly, we werent going to get hard landing people were fearing. Does this data, which supports claims from the government, can they get a bigger claim on financials and state run institutions as well as individual local governments . Well, theres nothing in the data that would suggest that theres any willingness to recognize the npl, levels of npls in china. In fact, if we look at the most recent data, a surprise on the upside. Although here at standard chartered, we do highlight that the data in june is very, very weak, so a rebound in july and august is not a surprise. Beyond the improvement in the Economic Data, theres a moore fundamental factor at work. That is in contrast to the rest of the region, corporate earnings have very much surprised you on the up side. Yeah. Is that going to be affected at all by equity prices . Goodness, if we look at some of the key cyclical sectors, is the wanks, they have seen a significant rally amongst some of the names. What we need to differentiate is where are we seeing a rebound from the june low, which is argued by about banks, and were seeing a ban from those or on normalization. But. Some of the key cyclical sectors where youre seeing more discipline in terms of supply, i think that the rebound in earnings were seeing there has legs and could run for a number of quarters. Clive, good to see you. Thanks for that. Joining us from singapore. Email us, worldwide cnbc. Com. Also the italian Prime Minister has blamed political infighting for a recent run up in bond yields. Speaking before parliament wednesday, he warned lawmakers risk unwinding the progress already made to restore market confidence. Those comments come as a Cross Party Committee still debating whether Sylvia Berlusconi should be involved in the Senate Following his tax fraud conviction. The initial hearing concluded on wednesday without a vote. Talks resume at 1500 cet. Italy will be testing the main markets for the first time with a debt auction later today. Well have those results with a analysis. And also in italy, the broader itali italian met yesterday with the Restructuring Plan as it seems to get approval for the bailout from the state. That new plan will be submitted on september 24th. It should include a Capital Increase to be complemented by 2014. The original idea was for 1 billion Capital Increase, but the European Commission would like more. Shares in bmts has been down 7 over the last 24r50e months. Today, down another percent. And Joseph Ackerman is considering stepping down from the board of another major european company. The former cfo of Deutsche Bank will give up his seat on the board of siemens. This follows the suicide of the companys cfo which he said the family held him partly responsible for. Still to come, the Vice President of the European Commission joins us for a first on cnbc. Find out how she plans to break up the telecoms market. These are the headlines. Syrian rebels reject russias plan. Rising tensions over syria sent futures for oil higher. Concern over emerging market volatility take place in dalia. This as the Indonesian Central Bank raises rates again. Philippines stays on hold. And shares of vivendi rises on hopes the french conglomerate will spinoff. Pretty positive for the groups v