It lost out on a fighter jet deal in the euae. Russian president Vladimir Putin has reportedly freed the jailed typhoon khodorkovsky after a ten years in prison. Announcer youre watching Worldwide Exchange, bringing you Business News from around the globe. Were into the last Worldwide Exchange of the week. Plenty to get through on the program. Next, its two days after tapering and the ripples are still being felt across asset markets. Well measure the fallout. Its been well look at key drivers for the Global Property market. And the battle for control of italys Biggest Telecom continues as shareholders vote on whether to replace the Telecom Italias board. If thats not enough, gold is down after the feds taper announceme announcement, but should you be buying the dip . After a big fall this year of over 25 , well get analyst opinions in around 40 minutes. And if you have any thoughts, comments, queries or questions or anything else you want to say, email us, worldwide cnbc. Com. First, japans Central Bank Says the u. S. Fed has acted appropriately by signaling it will taper in january. The feds move was based on a steady recovery which can accelerate. But he gave no indication that the bank of japan was ready to go the same way. It kept its massive bond buying policy unchanged. Joining us is azumi from hsbc. Thank you very much for joining us. Weve got dollar yen up to a fresh high, 104. 60. With fed tapering, will the yen continue to eat . How is that going to help the country out . Yeah. I think the yen is not at risk of immediate appreciation. Its very clear that the fed is much farther ahead than the ecb and the bank of japan in terms of its intention to reduce monetary accommodation. So i think the bank of japan is quite firm that it will keep its easing program in place. And i think with the yield differential still there, theres no risk for immediate appreciation. Yeah. Theyre not yield differentials certainly getting wider. When we get that sales tax hike in next year, are you expecting the bank of japan to add more stimulus . Yes, we do. Currently, i think consensus is focused on a Second Quarter easing, but i think theyre going to hold off probably until the Third Quarter. There are a couple of things that kuroda has pointed out that going to drive their easing decision. One is base wages. Hes emphasized the need for base wages to go up, for the increase to be sustained. Were not going to get the full outcome of next years spring negotiations until probably may. On top of that, i think the boj is going to take a good, hard look at Second QuarterEconomic Data to assess the negative impact of the consumption tax hike. How real is the turn around . He just got back from japan. How real is this . Weve had many false storms before. And the reply he got was people are out in the shops, but this time they actually have bags. Is that how you feed it . Well, i think theres been a lot of pent up demand that started with the 2011 earthquake. So i think the increase in consumption that were seeing here is very real, but i do think there is a big risk that the consumption will fade away if were going to get this transition to you know, out of deflation and into an inflation type of environment no matter how mild that is. If incomes do not go up, it does risk a huge hit on household wallets. I think there has been a positive momentum in the economy, but next years theme really is going to be wages and income. Yeah. And also what happens with industry and their Capital Expenditure plans. Because in the tankan survey, that didnt seem to be the best part of it. Yeah, i know. And i think exports and investment are the weak spot in the yes. Thats going to be a problem as next year consumptions cannot do any of the heavy lifting in the economy any more. I do think corporates are still cautious about the outlook for the economy. There is still some uncertainty around what type of structural rates and tax reforms are going to be delivered. So i think corporates will maintain a cautious eye on those developments and i dont think we can expect a renaissance in Japanese Business investment anytime soon. What should be part of the third arrow . Well, i think abe has done some good things in terms of agricultural reforms and things like that. But for corporate, labor market deregulation remains high on the agenda. Theres some hope that these issues can be addressed through the special Economic Zones that are going be established. But i think the broad, you know, Game Changing labor market reforms, the easing of hiring and firing, that is still a very political taboo topic in japan. And i dont think abe is going to have sort of the muscle to tackle it. Nice to see you. You have a good evening there in hong kong. Thanks for joining us, japanese economist at hsbc. Thank you. Chinese cash country continues to plague investors despite an Emergency Fund injection by the pboc yesterday. The besh mark rate hit its highest level since the liquidity crisis last june. Its been speculated that the central bank is trying to stamp out shadow banking. But rumors have been swirling. Thats been impacting, of course, Chinese Market today. Well get more from sixuan in a few moments. But first, lets bring you up to speed with where we are in europe. Here we go. Take a look at the Dow Jones Stoxx 600 heat map. You can see we are just about weighted to the upside Something Like 6 to 3 at the moment on that particular market. Off about 0. 25 . Yesterday, the ftse was up 1. 4 . And, what, the other markets up 1. 5 , as well. Today, the ftse is up about 11 1 points. The xetra dax is up 0. 3 . At the moment, the cac 40 is fairly flat as is the ftse mib, as well. A number of individual stocks, as well, that were looking at. Lets show you with iliad, 6. 3 down this morning on, tumbling after rival Telecom Operator said the firm would offer connections to count the french Telecom Operator war heats up. Meanwhile, Alcatel Lucent is down just 0. 6 at the moment. It has agreed to sell ils innovations. Baes losses down now nearly 5 after it lost out on a contract to supply jets to the uae. But its loss was dassaults gain. Bae confirming after the market close no longer in the running. And Dassault Aviation up 2. 78 , as well. Lets get more from stephane on that. Hey, ross. After losing an important contract in brazil, dassault is more positive about its outlook. This morning, the ceo of dassault says he was rather confident over the jet fieder in india. Me dehli is going to buy 126 aircraft plus 67 options, which makes a total of 189. This would be a great competition for Dassault Aviation after the french contract. The french minister is confident about the outlook. Getting a contract in india but also in the gulf country saved precisely that getting a contract in the United Arab Emirates seems more likely now that they have ended their negotiations with the country which is looking at potentially buying 60 aircraft. Getting International Contract is crucial for Dassault Aviation. They need to offset the negative impact of the austerity measures in france. The French Defense ministry has decided to reduce the pace at which it will take delivery of the new rafale jets over the next few years. It will get 11 planes a year instead of 26 and for Dassault Aviation, now the Company Needs to find resources and a victory in india would be, of course, very positive for the company. Stephane, thanks for that. Lets show you where we stand with treasury yields, two days now post the fed, 2. 92 is the yield. We have been up to 2. 95 , a threemonth peak on the tenyear. Climbed steadily during yesterdays session and spread ves narrowed, as well, between bund and peripheral guilt yield. Plenty more data coming out. Euro down to 1. 3625 this morning. Currently at 1. 3639. Not helped out by s p downgrading the eu. They just said we think the creditworthiness of the 28 eu countries has declined. Dollar yen, 104. 49. The aussie bouncing off its 3 1 2 year low. And sterling just back from wednesdays 164. 80, which is a high currently just below 11. 64. So thats european trade. Weve had that news out on chinese money market rates. How has that all affected asian trade . Sixuan is with us out of singapore. Yeah, thank you, ross. Hurt by those liquidity concerns, chinese banks, as you can see from the wall here, they took a dive today, especially in the afternoon session on fears of another cash crunch like we saw back in june. In late trade, China Construction Bank and citic bank tumbled to their daily limit before recouping losses. Today might not have been the Perfect Timing for chinas largest lender to go public. Suggesting investors concerns over liquidity as the country gets back near debt levels. On the whole, china markets extended a nineday losing streak while the shanghai composite lost nearly 5 for the week. But japan and australia both gained about 3 this week after the fed removed the taper uncertainty. The bank of japan decided to hold steady on its massive Bond Buying Program boosting to trades above the 11. 40 level. Elsewhere, bargain hunters picked up stocks pushing the kospi higher by 0. 4 today. And the feds decision to taper is hurting emerging markets. India in some Southeast Asian markets are trading in the green at the moment. Back to you. Sixuan, thanks for that. Catch you a little later. Right now, lets talk about russian president Vladimir Putin reportedly freeing khodorkovsky after a he spent more than a decade in prison. He recently appealed for clemency. In the 1990s, khodorkovsky gained control of the russias Largest Oil Company but was jailed on tax evasion. And this is the end of the road for the volkswagen van . It was first introduced in 1950. The hippies and many others seeking the the open road. In recent years, the 63yearold van has been reproduced in brazil. But recent changes to safety regulations which require antilock brakes and air bags means todays fannish vans are set to be the last ever to roll off the production lines. However, all might not be lost. A reprieve is under the microscope where the brazilian government could make an exception. So what car or vehicle are you sentimental about . If you want to join the conversation here on Worldwide Exchange, get in touch with us, email us, worldwide cnbc. Com, tweet cnbcwex or direct to me rosswestgate. Your first car is always rather special, i think, whatever the model. Still to come, prada is on parade rolling out its quarterly earnings, but could a slowdown be imminent . We head to singapore for the latest. [ male announcer ] the new new york is open. Open to innovation. Open to ambition. Open to bold ideas. Thats why new york has a new plan dozens of tax free zones all across the state. Move here, expand here, or start a new business here and pay no taxes for ten years. Were new york. If theres something that creates more jobs, and grows more businesses. Were open to it. Start a taxfree business at startupny. Com. Italian Industrial Sales have fallen in october. Down 2. 5 on the month, up 1. 2 on the year. October Industrial Sales contracting 0. 7 for the month, up 1. 3 on the year. Remember, Third Quarter gdp in italy still contracting 0. 1 is . Meanwhile, the Italian Government is due to hold a confidence vote on its 2014 budget beginning less than two hours. The contested package needs to be approved on by both houses of parliament before the end of the year. The budget has been on the unions and business groups alike claiming it doesnt do enough to revive the economy and the cuts in labor taxes are too pained. The European Union has lost its aaa credit rating. Standard poors have downgraded the region to aa plus citing concerns over budget negotiations. The moves follows recent cuts to the members of the eu states following france and the netherlands. An agreement between eu finance ministers are on a mechanism to rescue troubled banks is an important step towards the completion of a Banking Union. The deal has prompted the germ kwan chancellor Angela Merkel to call on european lead toers commit to binding contracts in order to reform their economies. Translator there is an agreement on the counselor stones of the resolution schemes for the banks and we will enter into intensive dialogue, which would be somewhat complicated if one looks at the comments from the European Parliament today. But its a compromise that was considered to be the right one around the table. Reacting to the deal, the french president , Francois Hollande talked about its importance to markets and investor trust. All those who put their money in banks, whichever one of the eurozone they may be in, are certain that there will be no risk regarding their placement now. And its an element of trust for the taxpayers, as well. Stephane has more for us once again from paris. Stephane, it seems very complex, what theyve agreed. In fact, one could argue have we got a single resolution at all . Whats the feeling there . The feeling is that we have an agreement between france and germany. As you knew, the two countries disagreed on what to put in place. France wanted essential rescue fund to deal with a failed bank while germany wanted a network of national funds. So there is kind of a compromise. This is what the finance minister insisted on yesterday. Now, the agreement, ross, is not exactly what france but italy and spain were expecting for because it rules out the direct use of funds from the European Security mechanism, the esm, in the near term. This is the reason why we have some luke warm comments yesterday in paris. The first one was from the german finance minister. He was yesterday in paris. And he is that the deal was convincing. The french finance minister says the deal gives meaning to the european single currency and we have also some mixed comments from jeanclaude trichet, the former president of the European Central bank in an exclusive interview to cnbc. The Banking Union was a work in progress. Well bring you these comments in the next hour of the show, plus the reaction from the ceo of Societe Generale. So stay with us. Well bring you this from 11 00 cet. Yes. We need to wait for that. Stephane, were asking people today about any cars or vans theyre nne that you hold dearest in your heart . I quite like the yellow one because it reminds me of a u. S. Film. Do you know which film im talking about . Little miss sunshine . Absolutely. How did i know that . You should see i did. I had a german car. Oh, you had a german car . When i used to live in london. Thats very european. You had a gulf or something, did you . Audi. Theyre very solid. They work. You turn the key and they go. Absolutely. Thats why they do so well. But theyre hard to fall in love with, right . You were in love with your car, ross . Well, you sort of you know, theyre functional, right . Theyre functional. But there are some cars when youre i had a for my first car. And, you know, perhaps not the most reliable car, but it worked. It worked for me. So were you in love with your car . Not with the car, but with anyw anyway, if you want to join the conversation on Worldwide Exchange, get in touch with us. Email us, worldwide cnbc. Com. cnbcwex or rosswestgate. I was in love with what the car enabled me to do, like get to parties. These high rollers are expected to spend 7 billion in luxury goods this year. A jump around 13 on the year. Companies like pra prada are seeing a slowdown in sales growth as Chinese Shoppers shift from brands to bespoke products. For previous pradas earnings, were joined by nicholas rambus. Nice to see you. Ill ask you about your car a little bit later. But anyway, prada, what are we expecting . It looks like theyre going to do pretty well. They have the Holiday Season before them. They have been on a tear in opening new stores, especially in second and third cities in china, and i think theyre going to do a little better as a result of the great gatsby effect. You saw this with tiffany in their last earnings. Prada was, as you may know, involved in the cotour lines. I think theyll do pretty well this Third Quarter. Theres been a lot of talk about this slampdown on ostentatious displays of wealth in china. Is that having an impact or has it had an impact . It most certainly is. Theres an evolution taking place in not just the buying habits, but in the clampdown. As a result, you have brands changing, less logos, less visibility. The good thing about prada is they have a very strong creative director in prada herself and that continues to morph with the tastes. I think theyre going to continue to evolve their offerings as a result. But the big key in luxury these days, certainly in china, is having a divers