Strong sales in china host a better than expected pretax profit. Shares up more than 5 in early trade. And just a week ago, it was unthinkable. But the sailing team backed by Larry Ellison overcomes the most probable odds to claim victory as winning the americas cup. Well talk about the americas cup a little bit later. 81 down and they win 98. 54 is where we stand on the down jones stoxx 600. We had losses for the u. S. Markets down, s p down for five straight days. Fairly flat on the if it is ft. Right now. Really, what were seeing in the last few days is directionless trading and a slow edge downwards. Ftse 100 flat. Xetra dax down 0. 2 . Cac 40 off 0. 3 . H m sales up 6. 4 . Pretax profits for the quarter 5. 8 billion pounds. Alcatel lucent up 6. 36 . Tui travel, up about 1. 35 today. The company lifted its full year profit forecast. The group, which owns the thompson and first choice brand saying that Strong Demand in its british markets will help push it to an operating growth of around about 11 . Unlike thomas cook, the other travel group in london down 6. 3 . The company said Better Weather, of course, europe this year had stopped to be seeking some further afield. As individual companies, as far as bond yields are concerned, well be keeping our eyes on the uk. Weve got the final gdp out in 25 minutes or so. The second revision did pick up from 0. 6 to 0. 7 . Weve got final print of gdp out of the u. S. Today. Yields, 2763 . Still below where we move post the fed 2. 67 yield. Italian yields slightly higher at the moment. Take a look at the currency markets, havent done a lot over this week. Dollar yen still just below 99 and sterling still maintaining that 1. 60 level. We havent improved or moved much away from the levels we hit this time last week. Lets get a check on markets in asia. Li sixuan standing by in singapore. Sixuan, over to you. Thank you, deidre. Despite u. S. Fiscal worries, the nikkei 225 reverse warning will send higher by 1. 2 on hopes of imminent Corporate Tax cuts. An xwokt vehicle related tax cuts supported automakers. But china markets saw profit taking ahead of the week long holiday this week. The shanghai deposit ending down almost 2 . And the big loser on the hong kong bores was Global Supply chain manager leonfong. Its major customer, walmart, is cutting orders. But solth is south korea ended marginally in the green. Lixil gained 4 after reaching an agreement to buy germanys groche for about 4 billion. Tenco jumping over 7 . Meanwhile, stocks soft bank got a boost of 3. 67 . They value alibaba at about 7. 5 billion. That is about a third of the companys market cap. Back to you. That alibaba listing, one to look forward to. Thank you very much. U. S. Senate majority leader harry reid with House Democrats wednesday night to avoid a shutdown. Re id says he will not let republicans include provisions in the funding bill or delay or defund obama care. The senate is on track this weekend leaving the house little time to counter before tuesdays deadlines. House republicans are expected to huddle today to plan their next move. They could vote friday to raise the debt limit, but the measure is expected to be packed with gop wish lists, items such as canceling parts of obama care and approving the keystone pipeline. Ross. Yeah. Meanwhile, the battle in washington is weighing on investment sentiment. Its seen five days of consecutive losses, closing down nearly 32 . Its suggested the firm is canceling orders from supply on growing inventories, which sent the stock lower. The stock is down another 1. 5 in frankfurt. Joining us now from ubs, there doesnt seem to be a reason for anybody to get momentum either way at the moment. I think weve had a great rally so far to the year. I think weve hit some political concerns in the u. S. We have debt ceiling, Government Shutdown, project 2014, all these things hitting us now. Were in between earnings season and theres not too much corporate flow. I think were in a situation where basically people are taking profits off the moves we have. Were waiting for tapering. We are in a bit of a waiting mode. If we had some taper, would it be any different . I think having prepared the markets for tapering, it was peculiar that we didnt get it. I think we would have more certainty. I think the knee jerk reaction in the emerging markets, turkey is up 6 or 7 the next day. The knee jerk reaction was risk on. We now have this volatility around the decision and communication from the fed. So, actually, if we had had it, i think markets may have continued and with one less uncertainty to worry about. As far as the fed and whats going on there, is the upcoming going to hit the debt ceiling. And markets have slid off a little bit, but not very much. Do you think investors have become complacent and are we in for a nasty surprise leading up to october 17th . Look, our view is we will get around these issues in the u. S. As we have done before. But with a lot more volatility. Right. But the thing thats countering it is these Economic Data points are pretty good. So the pmis are strong in the u. S. , strong in the uk and strong in china. Theyre even strong in europe. Thats the big difference for the last four or five years. Occasionally, china has been stronger. But now its much more coordinated. Where do you want to keep your money, then . Do you want to go back into emerging markets with data signs improving in places like china . We took the u. S. Down from neutral over the summer and we put the money into europe, continental europe. Europe has much more bang for the buck, basically. You have very depressed economies. Valuations arent expensive, but theyre relatively full. And is we think theres more upside in europe rather than the u. S. Is it time to go back into emerging markets . Were cautious on emerging markets from a cultural perspective. Having said that, i think the feds lack of papers bought them some time. Youve seen a rally in the last month or so. I would argue theres still problems with profitability for the corporate level rather than the gdp. But you dont think the tapering is as big a threat . Lets talk about blackberry. Are you okay to talk about blackberry . Im okay to talk about blackberry. Its from my hometown. I just wanted to make sure youre okay on to talk about this. The effort to take the Company Private is being led by fairfax. The fairfax chairman told reuters hes confident they will get the financing approval for the deal to go ahead. It would cost a near 1 billion loss. T mobile says it will no longer stock blackberry devices in its u. S. Wireless stores. It will still ship blackberrys to customers who want them, mostly business users. Thats a big thing, right . A retailer saying were no longer going to have it. You know, i thought i was okay talking about blackberry, but after what you just said, that is depressing. I wasnt asking just i was being real. You were asking me the other day, i must know, you know, how nokia felt. Its on that track and well talk about nokia because its board is reportedly weighing up whether to join forces with Alcatel Lucent. Official talks about a tieup have not begun, but the firm is looking at options for future growth. It comes weeks after the Company Announced sales of its hand set business to microsoft. Nokias chairman has asked the ceo stephane elosk if he will give up all or part of his 18 million euro payoff. Lets get back to nick nelson now, global head of Equity Strategies ubs. We talked about two smartphonemakers that have had a lot of trouble. Generally, the smartphone space seems a little bit saturated, at least on the high end. Even apple and samsung who have been very successful are dealing with that. Would you be getting into the tech space . Particularly some of the smartphonemakers. If so, which ones do you like . The top end has been very competitive and the edge that apple has had, the asian producers are kind of caught up there. Blackberry, interestingly, it seems we have a blackberry. But i guess the generation below certainly seems to be on darchbt smartphone. Im sure we have the top of the arranged models. I have a reasonable blackberry but its different from the technology we can have with the other smartphones. So i think its pretty competitive out there. Having said that, more broadly, we are seeing m a come intact. Weve seen that in the nokia deal. And i would argue if you look at tech as a hole, its quite consolidated. U. S. Companies are releveraging. The credit cycle there is exactly. You might get concerned about it on some level. Well, maybe, but theyve got a pile of cash, right . The bond issue, about 175 billion of cash on the balance sheet. The sector of the whole tech is cash positive. Theres no doubt, piles of cash. Yes, they have access to cash, access to financing. And i said the idea of United StatesCompanies Buying european or Asian Companies i think will continue. The one tech name that you have is infineon. What is that predicated from . So this is what we did from the top down perspective. Looking at the potential for cap ex to pick up. Although the economy is Getting Better and in the u. S. Housing is better, the consumer is better, you really havent seen Business Investment and cap ex. And is we would argue that that is the next step of the market move. And if thats the case, infineon is exposed to broader investment and should do okay. Thank you. Were going to get more stock picks from you later in the show. Meanwhile, telecom is making m a headlines in southeast asia. Malaysias axita is buying axy telekom. To meet the rules, the indonesian unit will take a 95 stake in access allowing an indonesian shareholder to hold the last 5 . Malaysias telco has been looking to extend its network in malaysia and will give it access to 65 million customers. Axiata shares are up by about 0. 4 . The British Treasury going up for a showdown with the eu over banker bonuses. George osborne has filed a case with the courts of justice in which he argues the rules push bankers fixed pay up rather than down, which will make the banks themselves riskier. Michelle barnier said the reform is necessary to bring stability to the european banks system. Should the British Government weigh in on behalf of bankers . Let us know. Join the conversation here on worldwide exchange. Get in touch with us. Email, worldwide cnbc. Com. krns we can see or direct to me rosswestgate. I think this will be a touchy subject, i think. deecnbc, as well. Meanwhile, Lloyd Blankstein once described banking as gods work. Dont miss his latest comments. Check them out on cnbc. Com. I think we mentioned our twitter handles, but maybe not the cnbc world twitter handle. That is cnbcworld. Plenty more to tom on todays show, as well. H m reports Third Quarter results. In china, is the picture as bright of the british high street . Well take a look at that. And at 10 30 cet, tune in as we cross to the annual salt conference to hear from the dprut managing director at the imf, john lipski. The u. S. Will hit its debt ceiling by the middle of october. Can u. S. Politicians break the gridlock . Well discuss that. And how has indecision in washington affected International Markets . At 11 50 cet, our guest says the dollar is suffering and it is time for the Obama Administration to get a grip. Plus, the two gridiron games in london this year. This week, the Minnesota Vikings and Pittsburgh Steelers are in the british capital for a showdown. Well talk to the mayor of minnesota on the game as well as tackling some of the Current Health of u. S. Cities. I like that. Anyway, did warm weather in europe this summer leave retailers out in the cold . We will check in on the uks high street. That is coming up next. Stay with us. 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 . New cuts on wages and pevengzs are out of the question. Echoing the recent remarks from the finance minister that there will be no more austerity. Meanwhile, growing backlash against the activities of greeces far right Golden Dawn Party intensified yesterday as violent scenes broke out near the partys athens headquarters. Police fired tear gas at protesters incensed by last weeks murder of pablos. In italy, the coalition is coming under increase b pressure. A leader in Sylvia Berlusconis party said the center right could withdraw support from the government. Speaking to Maria Bartiromo in new york, he said structure reform would be a big part of the forthcoming budget. We will present the budget by the 15th of october. Around this period, we will discuss about the general reform of the rate of the v. A. T. So it will be a big discussion because we need to put there. Maria asked the Prime Minister how he felt about the recent deal between telecom eye tall ya and telefonica ahead of what looks like to be a stormy meeting between the two boards on october 3rd. It is good if it brings competitiveness to the telecom system. The 15 years of Telecom Italian wasnt a story in my view. So we will see what the spanish will do. What i would do as government, of course, i will preserve the Strategic Interests of italy. The final thought from nick who is still with us. Think about to the summer of 2010, 2011, the phone is ringing, coming through, so i think the omt or lets say the breath of the omt is enough to give credibility to the reaction function from the cmt and to support these bond markets. I think that is taking the data there. Theres a cyclical recovery. Thats going to be pretty good pickings, isnt it . Its a cyclical recovery from very depressed level. If you look at earnings in europe, theyre below the peak in 2007. If you look at the u. S. , its some 20 above. Europe has not regained where it was from five or six years ago. I think thats the opportunity. And there has been some structural reform. Theres been some reform in spain. You mentioned that cap ex. Why is that going to get spent in europe . It leaves europe and is less of a gap, theres less fair capacity utilization. And that so im just going to pick up. You mentioned infineon. Who else benefits . We had a whole list of companies that we looked at. Even banks. Thats the thing. If you see cap ex improving, youll see bank lending improving. Bank lending is improving in the u. S. Thats why we think it will come through at some point. Not to go around the world in a few minutes, but i want to ask you about japan because i normally sit in singapore. The company was seeing a huge pick up in cap ex yet. Do you care that will happen . I think it will happen in time. Well struggle to get through this. Weve had the weakening of the yen. We stuck a little bit of the hundred on dollar yen. I think the next move is about structural reform, reform of integration, female participation in the workforce. If they can get that going, well get the economy going. Is this economy in japan Strong Enough for abe to introduce the sales tax . What do you think is going to happen . Japan could accelerate their program, right . It could accelerate further. Amid the stocks you like, what are the areas you actually think i dont want to go near that. I think theyre underweight. Things like consumer staple companies, the food producers, the beverage stocks. Its that broad universe. Theyve had a very few years. A good crisis. You dont need that momentum as much. Nick, always good to see you. Thanks so much indeed for joining us. Nick nelson, global head of equity strategy. I want to make sure i get the right silo. Thanks so much. Good to see you. Email us, worldwide cnbc. Com. We will answer them. There is still much to come on the show. The u. S. Gdp data is due for release in a few minutes. This is according to chancellor. Well see you in just a few minutes. Stay with us. Sh countdown to a shutdown. The battle in washington is weighing on investors nerves the. But telecoms trade higher in europe led by equipmentmaker Alcatel Lucent followed by reports that nokia is discussing a possible tieup with the french group. Strong sales in china help better than expected pretax profit in the First Quarter. Shares up more than 5 . And rosss favorite story of the day, just a week ago, it was unthinkable. But the sailing team backed by billionaire larry elison overcomes odds to claim victory at the winning of the americas cup. An amazing victory. 81 down. They won the next eight races coming in as tactician and it is worth pointing out, a lot of the crew were kiwis. Right now, we have the latest current accounts data and provision on gdp from the omf. The final unreveesed by 4. 7 . It picked up the second print. There was a thought that even construction had moved higher. Weve got the latest current account numbers as well. And the First Quarter current account revised deficit, as well. Thats not helping sterling out, either. The Second Quarter current account deficit coming at 13. The First Quarter current account was revised to deficit. Probably weighing more on sterling than the unrevised gdp figure. Meanwhile, european equities stopped today. Its worth pointing out. Well see if theres any more reaction from the ftse. Down 0. 2 . Cac 40 down 0. 5 and the ftse mib has the worst of it, down 1. 7 percent. More threats from the berlusconi government about destabilizing the government if they dont like policy. Lets take a look at the bond space. The tenyear bund at 1. 83 . Thats the german bund at the top there.