Italia which could see its ceo tender his resignation today. Antitrust regulators ready to charge gazprom. It is politically motivated, say some. Some of these are far away from reality and im afraid that they generate on political motivation and not anything else. Chinas Largest Online game developer surges scoring bonus point force Retail Investors that piled into its ipad. All right. A warm welcome to you. We have a little bit of data at the top of the show. Out of eurozone ticking up 52. 2 in september from 51. 1. Improvement from 50. 7 in august and saw germany again providing the bulk of this number but france and italy, returning to growth for the first time in a year on the surface. Euro dollar 1. 3609. Just down from the 1. 3623 which is about the highest weve been since early february over the last 24 hours. But, again, that data just reconfirming a return to growth for the eurozone. It is still fairly fragile. Right, as far as politics concerned president obama met with top four congressional leaders at the white house yesterday to try to break the budget deadlock that led to the u. S. Government shutdown but after more than an hour of talks no breakthrough. Both sides are continuing to blame each other. The president reiterated one more time tonight that he will not negotiate. Weve got divided government. Democrats control the white house and the senate. Republicans control the house. We sent four different proposals over to our democrat colleagues in the senate. They rejected all of them. Weve asked them in a conference to sit down and try to resolve our differences, they dont want to they will not negotiate. I thought that they were concerned about the longterm Fiscal Affairs of this country and we said we are too, lets talk about it. My friend, john boehner, i repeat cannot take yes or an answer. In an exclusive interview with our very own john harwood president obama expressed his frustration with the tea Party Faction who have been dead set on tying the debate over the u. S. Debt ceiling to efforts to defund his Health Care Reform law. During the course of my presidency, i have bent over backwards to work with the Republican Party. And have purposely kept my rhetoric down. I think im pretty well known for being a calm guy, sometimes people think im too calm and am i exasperated . Absolutely im exasperated because this is entirely unnecessary. Well, despite that u. S. Markets have been relatively calm this week amid the Government Shutdown and budget impasse in washington but president obama says wall street should be genuinely worried. I think this time is different. I think they should be concerned. When you have a situation in which a faction is willing potentially to default on u. S. Government obligations, then we are in trouble and if theyre willing to do it now, theyll be doing willing to do it later. And coming up, our own john harwood joins us to discuss his exclusive interview with president obama. Hell be live from washington on this show at 11 30 c. E. T. Ross, this is my last day in london. I know. Weve got to make the most of it. Well have lots of fun without upsetting our directors to move things along. I wouldnt worry about that. We have a full show and picking up on that, great obama interview and that key point about were saying this time it is different. You should be worried. Now, so the question well talk about today, have investors got it wrong . Tell us what you think about president obamas wall street warning. Is it a play to Push Congress into action or is he genuinely concerned. Thats the question, right . It was very smart of him to say that if we see a reaction in this could is a domino effect and markets could get worried. Congress could get worried or could not mean anything which is the scarier scenario. Is the congress that cried wolf too many times and now they dont believe it. Yesterday one of our guests said this isnt a strategy. These are tactics. Childish tactics, so we want to know from you. Tell us what you think, join the conversation here on Worldwide Exchange and get in touch with us, we will try best to respond. We read all of them. Email us worldwide cnbc. Com. Get ross into the action. rosswestgate and im dcnbc. You night technologies may have to furlough up to 5,000 workers if the u. S. Government closure extends through next week. That would be followed by Pratt Whitney and aaerospace. Their stock in frankfurt today off a quarter of a percent. Well, its not just the American People that are upset over the congressional stalemate. China says the shutdown could affect the world economy. Certainly its comment. A xinhua news comment tray said the ugly side has been exposed which could lead to the u. S. Missing its debt obligations. There is reason for beijings concern. China is the largest holder of u. S. Government debt holding about 1. 3 trillion worth at the end of july. Thats a lot and its kind of interesting to hear china talk about other politics, i guess. Well, you know, everybody has their beef. Joining us for more is the head of research at variant perception. Claus, good to see you. You should be concerned, says president obama. Are you more concerned . Well, given the market seems sanguine, yes, were starting to get concerned. Were seeing the dollar is selling off so suddenly the market has taken its cue. Normally once you move into this kind of situation, and the market gearup for a risk off event you see the dollar rallies and bonds rally but here in this situation with the homegrown u. S. Crisis, those two variables are very much in play now. Right now the dollar seems to be selling off once you get when you get news about this stalemate so this is a very interesting dynamic. We think probably that the stock market is a bill too sanguine at this point. U. S. Treasuries. Its so strange to look at this risk on risk off, you see the dollar soing off but bonds rallying a little when we approach the debt ceiling. Where do you expect them to move approaching october 17th . The kneejerk reaction for me would always be and for us at variant, if you have a riskoff event in the markets, the dollar will rally and so will u. S. Treasury, the yields will come down but this exact point in time, for example, default in u. S. , as well, what happens to bonds when you move closer obviously you would expect bonds to drop and yields to gup. This is a very delicate situation. We expect brinksmanship. You have to expect it in the u. S. But the interviews we just saw in the introduction, i mean its just a mess. The one side saying they want to talk. The other side its very difficult. This wing of the Republican Party, the trouble is that tea party wing, thiss got religion. Right . When you got religion you kind of you know, this is not what anybody else might call a logical discussion. That is true. We still have some time to go. Right now we have the Government Shutdown which in historical peers weve had that before and the market has kind of managed to shake that off but you have that debt ceiling coming on fast and, of course, you have the specter of 2011 and 2011 you a bit of the same situation coupled with the crisis in the eurozone and one of the worst rolldowns in the market for a long time. Do you think it will last for a long time or resolved quickly . I think if its not resolved this week, next week could be quite different place for risk assets. Maybe well ask you later what conditions need to be in place. Right now we seem so far from any kind of resolution. Claus vitiseen will be staying with us. Ross. Thanks for that, so we are here just an hour into the trading session, hour and ten minutes in europe and pretty even stevens much the advancers just about have it 54 at the moment and were in sort of the middle of the trading range so far. Ftse 100 down 22 points. This morning its up 18. So just wiping out those loss, xetra dax, flat, cac 40 down 7 and ftse mib up 0. 6 . Individual stocks, lets kick off with fin mechanical. The biggest gainer on speculation italys lender cdp may buy a majority stock in one of its units. They may discuss the offer tomorrow. Easyjet up 1. 2 in london after it raised its fully pre, thatted Profit Guidance and bp shares up 4 ticks winning a legal prereef in a case related to settlements over t2010 soil oil spill. Bond rate, tenyear treasury yields, 2. 63 is where we stand. Sort of 2. 65 was the yield late tuesday. 2. 59 was the yield we hit earlier in the week. Look at spanish one later and italian yields as well, 4. 38 . Keep our high on other ones, as well. And on the currency market dollar till down near eightmonth low, our joe dollar, 1. 3599. Not far away from 1. 37 level. That is a point where previously weve been concerned but yesterday they didnt sound that concerned. Abe a green light for that. Dollar yen just below 9 and the pound, as well, just below its recent sort of ninemonth high at 1. 62. Dee. Markets in asia where equities havent been particularly rattled by the Government Shutdown. Lets get to lisa in singapore for all the details. Thank you. As this drags on asia is quiet with china and south korea out for holidays. Chinas Strong Services pmi is helping sentiment. The nikkei finished slightly lower after tumbling 2 on the sales tax announcement. The hang seng index made decent gain of 1 with mainly blue chip names higher. Minors helped push up the australias asx by 02 . Tokyo electric teppo tumbled almost 5 after reports of a new radioactive water leak found at its crippled fukushima power plant and investors could fear it could delay the process of its other restart applications. Lets move on to some big gainers in hong kong. Hutchison still in focus. Shares gained by 1 today. This after yesterdays 3 rally on spinoff report of its Watson Health care and beauty retail. Carriers of apples latest iphones in Mainland China among the top gainers in hong kong, shares of China Telecom and unicom gained over 7 and 8 . China mobile, an official deal is still yet to be confirmed. It doesnt happen. Look at how much china mobile is missing out on that despite being the worlds large telco carrier. Sixuan. Ill see you next year next week. That was wish phil wishful thinking. What are you doing i was thinking about my long trip back which will feel hike a year. I have to go like 24 hours. A year, oh, my goodness, i better get back to the sunshinesingapore. I think i need to go haver rather than later. Anyways well keep on china, right . Do that. And the latest Service Sector reading suggests the countrys slow some might argue slow shift toward a domestic driven economy may be under way. Official services pmi rose to 55. 4 in september, a sixmonth high, the jump comes just as chinas factory growth gauges appear to be scaling back. Ross . And the latest eurozone pointing to a pickup. The highest level since june 2011. Claus is still with us. On the back of that and mr mr. Jargy, some say theres no point in discussing Interest Rate cuts anymore. Is this a green light for euro bulls. Sort of. I think im a bit surprised people are talk inflation down at 1 and reference target of 2 . But the economy is doing quite well at the moment so maybe you want to save those bullets for when its needed. Certainly a technical argument. The ecb is not its not engaged anymore and as the banks pay back that money, Interest Rates are starting to move and ecb certainly said yesterday it would stand ready to make sure that rates stayed within line of some of this kind of Forward Guidance weve gotten from the ecb, in general on the euro weve been fairly positive on the euro, it is trading toward the top end of the range and will take a lot of new 1. 40 the target . Yeah. I know much more depending on what happens with the u. S. Right now its a u. S. Driven story in the euro dollar but real money growth, the current account, these things which were a big problem a year ago have improved a lot. Does that high yield threaten the very nascent recovery we are seeing . It will but a certain lack of things, 2014 story in terms of, for example, its impact on german exports. Look, italians did it. Got through the vote. Claus. Yeah, italy got through. For us the outlook is still very dark for italy. The thing is that you have a very difficult environment still for reforms in italy so now you can say the political situation has cleared up a little bit but the Economic Situation is still very difficult. Theres its really quite simple. You still have bond yields which are much, much higher than growth rates and when you have that situation, its pure math, gdp continues to grow year after year and whatever reforms you put into place today will have will take a long time to affect itself so the unfortunate story is in the eurozone, more debt reinstruction, more brinkmanship is coming. Claus, thanks for that. Good to see you from variant perception. Plenty more to come. Syria may have been making headlines recently, the u. S. Has been continuing with itsers to find peace in the middle east. Hadley gamble sat down with a billionaire palestinian involved and will join us from dubai. Spain sells five and tenyear bonds in a closely watched auction with results around 10 40 cet. Well ask if this ipo is a sign of times to come for the industry in china at 10 45 ces. Could the political stalemate on capitol hill translate into trouble on main street as the Holiday Season looms . We are joined by a guest who says there is no reason for retailers to be optimistic. That is at 11 45 cet. Rather pessimistic. As the Telecom Italia is expected to hang up at a Board Meeting what next for the operator . The opinion of an Equity Analyst with we come back. At farmers, we make you smarter about insurance. Because what you dont know, can hurt you. What if you didnt know that posting your travel plans online may attract burglars . [woman] off to hawaii what if you didnt know that as the price of gold rises, so should the coverage on your jewelry . [prospector] ahh what if you didnt know that kitty litter can help you out of a slippery situation . The more you know, the better you can plan for whats ahead. Talk to farmers and get smarter about your insurance. We are farmers bum pa dum, bum bum bum bum welcome back. Well the response to the Syrian Crisis continues to develop, the u. S. Has been keeping a close eye on the middle east peace process. President obama met with Benjamin Netanyahu on monday at the white house and met this week with Palestinian Leader mahmoud abbas. Our middle east correspondent hadley gamble has been speaking with one of the palestinians involved. Billionaire businessman munib al masri. Hi, hadley. Reporter good morning. So basically its going to be a tough sell. The twostate solution for both sides of the leadership in israel and with the palestinians, as well. The u. S. Has made a point of not taking their eye from the prize despite the fact theyve had the distraction of syria over the last few months about you ta talking about an economy with a current account deficit of 600 million and talking about major challenges to that economy to growth in that economy and i spoke with the chairman of the Palestinian Development and investment company. And i as such he controls 25 of the palestinian economy. We went to the west bank and sat down with him for an exclusive interview and i asked him what is the biggest challenge to Economic Growth. Well, biggest handicap is occupation. You are not free. Your mind is not free. Youre thinking about the checkpoint, the next checkpoint so the palestinian mind is good, but we are handicapped by mostly the disease, the cancer is occupation. How much more growth do you want to see on your Stock Exchange . Maybe 200 , 300 because its undervalued because people, they say, capital is very coward because they want stability, they want Environment Investment environment but this in palestine a lot of possibilities but with occupation all these possibilities, they will completely be erased. To tell you the truth its almost or almost impossible to do business here but because we feel this is our country and this is our duty to do it. So you heard him talking about some of the many challenges that face the palestinians. There are over 500 israeli checkpoints that dot the west bank and that makes business very difficult. Now if you want to hear more of this exclusive interview with munib al masri, check it out. A bit of ago apology for the picture interruption. The dramatic events in italian parliament. Survived a confidence vote. Moodys, though, has maintained its negative Credit Outlook and says it expects italy to miss reduction targets. Speaking to the lower house, the italian premier looks to the future. Translator i dont want to hear any more saying we either do this or the government falls because we showed that the government will not fall if this will be the behavior. Jules is in rome and joins us for more. Particularly for Silvio Berlusconi. How big are the challenges now . Reporter well, theyve got bigger challenges, havent they . This was a lot of political noise. This looked like the worst Case Scenario and it didnt happen. Now letta has to see if he can capitalize. The coalition couldnt agree on steps to get the deficit under control down below 3 . Thats still a problem. Still have all the Structural Reforms to go. Things like the role if we had to go to an election we could have ended up back where we were, lets look at the polls as of next week and just see what damage has been done to the perform dl and the strength now that perhaps Prime Minister letta can