So far. And the weak economy, eurozones biggest bank post ago near 80 jump in nine months profit thanks to lower provisions. A bad call for erikson hitting Third Quarter profits. We speak to the ceo first here on cnbc on an extended edition of this show and that happens at 12 00 cet. Plus, manufacturing in china if a hitting a sevenmonth high. The country still on track for its slowest growth now seen in 23 years. He, everybody. Welcome. Yes, you are watching Worldwide Exchange here on cnbc. We have a lot to get through today. Theres a lot to talk about. First on the agenda, we have had the eurozone Business Growth easing for the month of october as by the looks of things demand has slowed substantially. Were looking at the eurozone pmi point to go 0. 1 to 0. 2 of Fourth Quarter growth. It fell to 51. 5 from septembers twoyear high of 52. 2. But what you need to take away from this 51. 5 print is that its way below the polls that have been out by reuters for an uptick to 52. 5. Were looking at quite a bit weaker than anticipated pmi print. Missing all forecasts, as well. Composite pmi missing from on 0. 1 to 0. 2 Fourth Quarter, private sector growth slowing unexpectedly here in the eurozone. Rob doddson is a senior economist at market. Hell be joining us shortly. But the euro dollar here on screen, slightly lower at the moment, just coming off from where we were, just a fourth of the pmi data. Of course, we have seen quite a bit of strength in the euro happening on the back of a much better than anticipated print coming through from nonfarm payroll data stateside. Also worth mentioning, the chinese data is important. Hitting a sevenmonth high, the hsbc flash pmi data. That october figure hitting sevenmonth high as mentioned, 50. 9 was that level, a tad higher than the 50. 2, which was recorded in september. Whats encouraging is that new orders looked healthy spiking to 51. 6. But its important because china is, of course, the worlds top metals consumer. The data could mean, as many guests have told me, that we are seeing a bottoming out in the softness of the chinese data. We have seen that as of late. So thats whats taking place on the data front. Lets talk about this, though, because rob doddson is a doctor economist at market. Hes with us in the studio. Hi, ross. Hi. How are you . Im not too bad. How are you . Fine. Trying to find whats coming out of markets. And we have had such frothy levels as of late. Business growth easing. The services pmi missing. Manufacturing data missing, as well. What do you make when you see a figure like this . Id say the particular headlines figure is disappointing in itself. A lot of people expecting that to continue to rise. However, i wouldnt place too much emphasis on one months worth of data. The real issue is the eurozone recovery and after extended decline, that in itself is a positive. But also what were seeing is were seeing broad based growth across. Germany continued to grow. Fronts continued to stabilize. Periphery, it was taking a bit more halt. Its so much in line with what the ecb characterized it as, it will be on even. Thats what were seeing here. You see, i feel that over the past two weeks, the interesting shift thats happened is that weve gone from almost overnight from not liking spain to loving spain. Weather youre looking at the growth figure that came through yesterday, it still was earlier than anticipated that were seeing this figure. Weve seen the bond upticks being healthy out of spain, as well. Do you feel things are start to go turn procedurally for the periphery . I think they are. Wa weve seen some some of the gdp numbers. So there is some signs the periphery is starting to show some strength. What we need to remember is these are coming from extended and deep decline. Were not seeing these coming back to where they were post the crisis. This is a pleasing surprise, a seven 46 month high since october. Do you feel that we are seeing a bottoming out in the chinese slowdown . I think we are. Were not going to see those massive growth double digit gdp growth that were seeing a few years back. But, again, the Chinese Government doesnt want that. It wants to focus on solid growth while restructuring. These numbers are suggesting growth should pick up in the Fourth Quarter were looking at and that would give the Chinese Government wiggle room to do restructural reformes and do some rebalancing. Im a big fan of wiggle room. Always good to have a couple of extra centimeters. Rob, thank you very much, rob doddson, senior economist at market. Earnings season is upon us. The Investment Banks profits surprised on the downside. In an interview with cnbc a bit earlier, ceo brady dugan looked at the companys strength, insisting its Capital Position was solid. If you look, for instance, our capital progress that weve made over the past year or so, its been very strong. We ended up this quarter 11. 3, 10. 2 auto a bureau basul basis. We brought down leverage a lot. We completed the issuance of a fair amount of both high trigger and low trigger contention convertible bonds. We have a very Strong Capital structure. So i think clearly from a which is point of view, we feel like were in very good shape. Now, coming up, of course, well have more of that Credit Suisse interview. Carolin roth joins us at 10 30 Central European time. For now, though, lets take a look at how Credit Suisse has been fairing among the other key corporates that have been recording this morning. We have a whole bunch of them just here on the wall next to me. Credit suisse trading lower by 2. 25 on the back of those earnings. Striking a more positive note, youve got spains Bango Santander rising. Profits for the full nine months have jumped by 77 over this past june. Stephane pedrazzi joins us from madrid for a look at those results in about 20 minutes. This maybe goes hand in hand with what i was saying a few minutes ago about a proper turn around for the spanish economy. Shares in ericsson fell after falling shy of forecasts. The company warned sales were coming under pressure in japan and over maturing projects in the u. S. We will be speaking to hans bispa on a cnbc interview and that happens here a little bit later on, 12 00 cet, as well. Lets talk about abb getting a boost after power and Automation Company. This company reporting earnings above forecasts, fighting improved conditions in europe and a solid demand also seen from the u. S. Last but not least, wpp, the advertising giant and Consulting Group citing Stronger Economic conditions, especially in the uk and the americas for its solid results, topping estimates with 5 organic revenue growth. Speaking to cnbc earlier, first on cnbc even, the ceo, sir Martin Sorrell warned us that the debt ceiling debacle in washington could hurt business Going Forward. Theyve kicked the can down the road for another three months. And we could expect quite reasonably or our clients could more political serb ewe lens as we get into january and february next year with congress. So that is likely to make clients extremely cautious, particularly in an american context, not just on spending, but auto hiring, too. Now, scb has been trading higher following an earnings beat this morning that came through, which looked slightly better than anticipated. The company seeing profits rising 1 billion kuna higher than what it saw last year. Smaller loan losses and a gradually improving Global Economy were all factors in the quarter. Joining me on the phone is eric buck, the cfo of seb. Eric, thanks for being with us. First of all, just talk us through some of the highlights from the figures. Sure, good morning. Well, i think the results are pretty clean. There are no one ups, but, of course, were impacted by normal seasonality. But its holding up as a pretty good quarter and a particularly strong q3. I think the highlights are that its good quality. Weve got an increase in Net Interest Income of 5 , 9 higher on fee and commission, which is also quite strong. Were learn to go contain costs in a good way and were holding our cost caps and well continue to do that. So i think, you know, the discipline on those lines have been working well. If theres any weakness, its on the trading line where not dissimilar to many other banks internationally. Locally up here in sweden. We are weaker on the back of low activity levels. But overall, a pretty good result. Jan erik, i always assume one doesnt know until one knows pn. So for the benefit of viewers out there who maybe dont know a lot about the Banking System and the swedish economy at the moment, what are your thoughts on the General Health of swedens Banking Sector and of the swedish economy . I think the swedish economy is doing very well. Over the past three or four years, we have. I think the kingdom is in good shape. The corporate sector is in good shape, very cash rich, strong Balance Sheets. Exports markets still, even though were feeling this slowing economy is in parts of europe and elsewhere. But overall, in good shape, and the Banking Sector is in good shape, as well. Weve all been spending the last few years building buffers in terms of funding and liquidity today, we are in the top quarter along any measure you want in terms of stability. I think the whats rewarding is that the profitability ratios are starting to come up, as well, which is good. I think weve all learned to become more sort of fuel efficient. Were using less capital, less funding to generate a nice return, which is the way we wanted and the way regulators wanted. Your q1 ratio and your capital y58 ratios in general are very healthy. How do you view whats taking place at the moment in broad europe . And here im thinking of the ecbs measures that were announced yesterday where we heard of the assessment plan for the top 128 banks laid out by the ecb. You have a threestep process where initially its a risk assessment. They go closer into the asset Quality Assessment and then you have a stress test coming in approximately a years time. This type of regulation and these type of criteria, is it going help europes banks to become stronger . Well, lets hope so. I think the i think whats i think its good that its being done. Overall, we all want a reasonably level Playing Field and competition to be fair. And as long as were moving towards that, then its all fine. And i think the fact that regulators want to go through and make sure that things like risk assets and the way we do internal modeling, if its broadly consistent, i think its difficult to argue against Something Like that. I think where we are issues is where swedish regulators post swedish finish on many of these measures to the extent that we start to deviate a lot from what this conventional wisdom in europe. And thats where we have a little bit of debate. Were not arguing against the ratios. It all makes sense. We all need more capital liquidity, but it has to be a level Playing Field. Jan erik, thank you very much, cfo of seb. Lets talk to somebody else who knows a thing or two about strategy and equity markets. Robert quinn. Hi, robert. Good morning. Hello. We were flirt, fiveyear highs. Weve come off a little bit in trade yesterday this morning. Were flattish. We continue to weigh in on equities. We continue to buy into our equities portfolios. I think equities again for different chapters and some different styles outperform. Third quarter earnings season is largely an inflexion point. All of the fiveyear highs youre talking about are normalizing valuation levels. So you have to get to this stage now. Theres a potential that the key for its obvious that Credit Suisse and the likes of do you have ya bank and perhaps barclays is still too broad. Particularly theyre going to have more equities. But what youre seeing is now, 2013, 2014 earnings, youre at fair value. What you need to see now is an early turn around. With the pmi, that was always going to come up a little bit. What you saw from most of the economic surprise, rolling over. So you often see that pullback a little bit. You normally see earnings accelerate from european corporate earnings, anyway, when pmis get about 52 in a bump. You were just hitting 52. 5 and you come back again. Q3, we were hold for would be that moment. It may turn out to be a q4 event. Well, youve made some calls. Joour youre upgrading the auto parts sector. Youre upgrading media and youre downgrading food and beverage and underweights. Explain your dealings. For the auto first, youve got broad based earnings, relative earnings momentum within the times and parts space, as well as the mass market players. Theyve been out this week. Renault is out in the next couple of days. And youre starting to see, you know, early 2012 second half earnings terrible. So even on relatively flat earnings, flat revenues, you can get an earnings rebound there. You still see cash bonus, but by. Large, you already know the monthly earnings on the autos. The turn around now is quite reliable in my view. For food and beverages, the organic growth rates flowed in hedge one. Kind of a mixed bag from what youre expecting from heineken. Theyre very, very expensive. So thats more of a style move. Its probably not really worth the money youre paying for that. And we were just mentioning wpps numbers. The media upgrade that youve made or the upgrade to the media sector, does this hinge very much on global ads than what happens over the next 24 months or so with global assets . Its probably about 2 1 2 times details with global gdp rates. Youre seeing global gdp accelerate to nearly 4 at the start of next year. At the same time, as well, especially the advertising agencies, wpp or publicists, in terms of their marmgin story, the football well cup, the midterm elections. So they have a biannual event support, as well. Im very excited about the world cup. So am i. Were there. Definitely, yeah. Robert, thank you very much, robert quinn, European Equity strategist from s p capital iq. Now, our european markets here this morning, just to recap what were seeing, relatively flattish strayed. Stoxx europe 600, flat if anything. Yesterday on the close we were looking at all red screens across the board with a little bit of money coming out from our european markets. Were still right around the fiveyear highs give or take a bit, right . So our main European Equity markets today, trading higher. The ftse higher by 0. 2 . The xetra dax up by a couple of points. The cac, the color tells you were high her. Were ready flat on the cac. The ftse mib higher, too. The fixed income markets, tenyear gilt now yielding 2. 6 . The yield on the tenyear bund, 1. 7 . Commodities, we saw a bit of a fooling off in the price of oil as of late with oil trading below the 100 per barrel level. An interesting or important level for nymex. But currently, were still around that level coming up from where we saw a trade settling yesterday. Brent, flat to a little bit higher. And just moving on to the currency markets here, were now looking at a flippy floppy dollar yen. Over here, the euro dollar flat to higher, as well. Very unmoved, though. 1. 3780. All things considered, though. We were talking about this yesterday, as well. Lets talk about the markets in asia. Li sixuan joins us live to talk about whats been taking place in the asian session. Sixuan. Thank you for that, louisa. Not too much reaction to chinas sevenmonth high. On the other hand, the pboc refrained from bumping liquidity into the system, reminding us of the tight liquidity conditions. The shenzhen down 0. 6 . The hang seng index in hong kong lower by 0. 7 . Chinas liquidity concerns and weak u. S. Earnings weighed on the japanese market in the earnings session, but the nikkei 225 managed to turn higher in late day trade ending up 0. 4 . Hitachi jumped over 8 earnings. Meanwhile, kospi finish higher. And australias i is asx 200 was the big beneficiary of the china pmi data. Banking measures broadly higher. Take a look at chinese banking shares. So a shares on the first row and h shares on the bottom row there. Were seeing that ping an bank gained 3. 3 after yesterdays 4 surge after yesterdays strong earnings results. But other banking majors, they came under pressure. This on concerns of increasing nonperforming loans and also the tight liquidity conditions. Back to you. Sixuan, thank you very much. Good to see you. Well talk soon again. On todays show, a lot coming up. Spains larger bank, santander, is now saying its in a good position to meet rules after posting good results. Stephane pedrazzi will be bringing us the details of that. Earnings central heading to the motor city where ford is expected to all right a slight dip in profits as they look for an update on allen mulallys future. And as if that wasnt enough, were live in brussels for the heads of state summit after the ecb president mario draghi tells cnbc that stress tests are just the beginning to restore confidence in banks. Julia chatterley joins news a couple on of minutes. And well be crossing to washington where president obama is reassuring Angela Merkel that the u. S. Did not snoop on her mobile phone call peps well get the latest on that at 11 20. There is more because were bringing you a first on cnbc interview with the ceo of erikson after the mobile television equipmentmaker misses Third Quarter results. So stay tuned for an extended edition of Worldwide Exchange on cnbc. Now, in news, ben jerrys have now released a new flavor called i havent seen it yet. But the limited Edition Ice Cream will be hitting shelves in just a couple of shelves just in time for the premier of apgorman 2. Scotchy scotch scotch. If you were going to invent a new ice cream flavor to cel