Teeters on the brink. Fresh reports of fighting in the east of the country as russia flows have accelerated in the third quarter. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. Hello. Im seema mody. Coming up on todays show, we ask one of europes most experienced managers why hes giving up on politics. Plus, few high profile interviews from londons fashion week. We hear from bur burys ceo and the first lady of fashion, anna windsor. And we talk to business, a celebrity endorsement. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. Welcome to worldwide exchange. What a busy day on the nasdaq yesterday. We saw the worst day since the month of july. And the big question is, is it really just clearing the dex ahead of the alibaba deal or is it a bigger sense cautioning the market ahead of the meeting and maybe exhaustion in the market as people want to take profit . A lot of people pointing to this alibaba deal, people creating space in their portfolio. There are not going to be that many people that get an allocation. Im more of the view that the tech stocks have risen up very, very high. Valuation has been a concern for a lot of the tech names. Thats why one of the reasons we could have seen that selloff in todays trade, or are investors clearing out their portfolio . Interestingly enough, twitter, facebook, ebay, all are down after alibaba made its announcement. Is absolutely. Is and well be talking tech sales later. But moving back to the fed more generally, Goldman Sachs has gone against the consensus saying the phrase considerable time will remain in this weeks statement. Jan says many are missing the distinction between a decision not to extend existing guidance and a decision to renege on xifth guidance. David is senior director of research at global economics. David, as ever, lots of focus on this fed meeting tomorrow. But im interested in how the bond markets have reacted. Over the last week or two, weve seen yields tick up, led by the u. S. It suggests investors at least are expecting a significant change in rhetoric tomorrow. There is a risk of the chance. You see that in the front and the euro dollar curve, the short end moving up about 15 basis points. And we would agree that theres a good chance that, given improvements of the economy, the fed will tweak some language and point to some different indicator. But they already have i think i counted four qualifiers around that considerable period language would refer to the period after qe enin october. So if they change it a little bit, its not such a big deal. They still have a lot of wiggle room. Whats the risk that they would emit it completely or do you think they would replace it with some other wording that the market is going to fret about for the next six months. I think when they get rid of it, it will go entirely and be replaced by Something Like the word patience. There are two parts of this forward guidance. Theres the part that refers to the rate hike and then the path of rake heights afterwards. And theyll almost certainly keep that path of rate hikes being lower than the normal rate hiking cycle, intact almost in full, even after that first considerable period is you know, david, hawkish banter from the fed continues in the near term. But at the end of the day, the reality of the situation is that rates are still very low in the u. S. We have to think about that disappointing jobs report that came out about a two weeks ago. That is a critical point. Janet yellen has made et clear what jobs numbers are what she looked at when determining rates. Its a noisy figure, nonfarm payrolls. Other figures are pointing in different directions. Unemployment is improving fast, but its not the best indicator any more. So i think shes looking at wage gains out here in the uk, beyond just inflation, as well. All right, david, stick with us. We definitely want to talk to you more about whats happening in europe, as well. German Economic Sentiment data is released at 10 00 cet with investors braced for another weak reading after the index hit a 20month low last month. Well move on to talking about europe. Now, despite that thing that you just saw, david is still with us. David, this sentiment data coming from germany later today, we had the oec forecast lowering gdp yesterday in europe. Do you think this now means were set making sure we keep europe very low for the foreseeable future . And what does this mean for countries like germany . They dont have that many to get there, but maintaining easing policy, especially in light of what the fed is likely to do, maybe not next meeting, but eventually rate hikes. That will help it achieve that goal. As far as what it means for germany, germany has a fiscal surplus and it wants to maintain that Going Forward. Its the wrong policy for the rest of europe and germany, of all countries, does not need a Weaker Exchange rate. But its going to get it. So does that mean sentiment should pick up in germany . Yes, i think, you know, its hard to call it a move, but you can see 2 growth there for an economy thats already doing very well. But the high current account policy surplus, its not merkels fault. Its the euros fault because its artificially low for germany, isnt it . Thats certainly part of it. You know, and its a credit to german exporters. Theyre extremely competitive. Theyre in the right place at the right time with demand from china. Still being relatively strong. So its not entirely her fault, but a looser fiscal policy would help spur demand for imports and help out others, italy in particular. What are you expecting from the zew later on . Were expecting it to show an economy thats slowing down, but still growing and still expected to maybe grow a bit faster in the future. So pretty much in line with the pmis that we saw earlier this month. All right. David, mroo david, please stay with us. David nowarski, senior director of research at roubini global economics. I want to know what you think, as well, about the health of the european economy. Emails us worldwide cnbc. Com or tweet us, cnbcwex. After two terms in office, swedens finance minutester has decided to leave politics following the center right governments election awl laws over the weekend. He was a prominent fixture throughout the cry sess. The countrys center left party took a narrow lead in the parliamentary vote with the democrats doubling its support to 13 . Now were joined by andes borgue. Thank you so much for taking the time to speak with us again. Always a pleasure. Why exactly are you leaving politics . You think theres a very Important Role for you either as the opposition or the party leader. Well, ive decided to leave politics. To my mind, it wasnt an option to become a part leader so this is the end of the political story on the global macro situation in the future. Very briefly in terms of the next couple of weeks and months for sweden, are you afraid of dysfunction in the political space . It is exactly that dysfunction that you are criticized in so many other countries throughout the crisis. Well, i think its a clear risk that you will have a risk in uncertainty. The social democrat hasnt prepared for government, they have a weak parliamentary base, particularly now when theyre seeming to only cooperate with the green party. We were one of the strongest governments in europe for the last eight years and now were going to see a very weak government. The problem is their key policies on tax increases is where the Election Campaign will be. So if they dont give up the core of their policy, they will have a tremendous policy with getting the budget through parliament. An did he rs, i wanted to move on to your policy on europe more generally. You and miss reinhart were one of the few supporters of uk Prime MinisterDavid Cameron and his aim to renegotiate britains membership of the eurozone. Given that you and your party are now departing government, is this a cameron left with very few supporters across europe . Well, weve had a strong cooperation with the british government, particularly David Cameron. I think the link between sweden and the uk is likely to remain. That has been a strong bond previously with the two countries. We are pro free trade over a period. So i would presume that we and the uk would be quite close to each other, people if people take this time for them to be in a relationship. These guys are basically out of experience. They havent participated in the international discussion. It will take a time for them to learn. Anders, as we watch the economic recovery here in europe, there is an internal debate brewing between france and germany on the importance of spending investments to stimulate the european economy. Whose side are you on . European growth needs to be vitalized. I think germany needs to do more for growth. On the other hand, france basically has a problem in lack of competitiveness. But the core of the problem. I mean, theyve been running their economy with too high Cost Increases and too little productivity for close to 20 years. France needs to do fundamental structural reforms. On the other hand, germany needs to push more for growth and a much more expansionary policy. So i would be on half of each side. Anders, at the beginning of the interview, you told me that yes, you are leaving politics, but you will stay in the scene, in the public scene. Where exactly are you going . Is it going to be the central bank . Is it back into the Banking Sector . Youve lost that famous ponytail about nine months ago. Maybe that wasnt a wise move. There are a lot of new finance ministers that needed a hair cap. I think it was time to get rid of the ponytail. I have a background in investment banking. Ill probably see what the options are for me and if there is an International Institution on the government side, i would be obviously interested. Im very openminded. I would like to work with macro global. At the end of the day, i will see what offers have been approaching in. Have you been approached yet in the two days since you made that announcement . I have some options that i really will have to consider seriously. All right, anders. Thank you so much for your time. I hope that we will continue to speak to to you over the next couple of years as we have over the last five years. Thank you so much for your time, anders borg, the outgoing minister of sweden. Lets up date your markets. Quite a lot of red behind me. European markets open slightly down, have weak. Ed a bit further over the last hour. The stoxx 600 is down about 0. 44 . Weakness across the board. Theres a few head winds for markets today. We have the fed meeting tomorrow, of course. We have the scottish vote on thursday and we also have that weak selloff that weve mentioned, particularly in the nasdaq in the u. S. Last night. The ftse 100 down 0. 2 , relatively holding up quite well. We have that important Economic Sentiment data out of germany at 10 00 British Standard time. Thats off 0. 4 . Ahead of that, france, up 0. 5 and italy off 0. 8 . Moving on to bonds, as we touched on already, as well, the u. S. Treasury have ticked up above 2. 6 . Yields in the u. S. Rising quite a lot over the last two weeks. But today, 2. 56 . Yesterday in trade, they just came off that level. Perhaps due to that oecd Economic Indicator that suggested u. S. Growth revised downward slightly. Bonds in germany just over 1 . The tenyear gilt, just over 2. 5 and italy just below 2. 5 . Forex, the u. S. Dollar index, came back off the 14month high. Its been up around over recent weeks. As everyone is well aware, over the last few weeks, the u. S. Dollar has been very strong, so unsurprising just to see a little bit of flattening off ahead of the decision. Today, euro dollar is pretty much flat. Its at 1. 2941. The yen is dollar, 107. 1. The aussie dollar continues to weaken aagainst the u. S. Dollar as that carry trade unravels and the pound weak today ahead of the vote in scotland on thursday. 1. 6181 is cable. Lets check in mokts in asia. Sri is in singapore with us. Sri. Good to see you. What a negative session it was for the Greater China markets. The biggest oneday percentage loss for shanghai in six months. That spilled over into our front doorstep in singapore. Down by 1. 2 . It was rather odd, all things considered, because we started off the day for the shanghai market in positive territory. The markets were front running the idea that we could see some more stimulus action by the pboc to try and safeguard growth at around 7 . But it seemed to be the worsening macro picture that the markets are running with now. We got an indication of that with the fdi flows for august. Foreign direct investment into china fell to a low not even in at least 2 1 2 years. The other factor here, wilfred, is that the alibaba effect seems to be causing some concerns about the main board listings. It could bleed some of the activity and some of the interest away from those listings. Remember, we still have a number of other china ipos in the woodwork, waiting in the wings, and theyre going to come to market in autumn. So thats another concern. Liquidity issues there, as well. Hong kong, yes, it was closed in the morning because of the typhoon. But we resumed trade at 1 00 p. M. Local time. Deeply negative, as well. Eight Straight Days of losses. Down by almost 1 . So the negative leadership coming from the Greater China markets, again, we are seeing some worsening macro indicators. Back to you now in london. Thank you so much for that, sri. Still to come, one city is cracking down on distracted walkers, creating the worlds first smartphone yes, stay online. We have the story next. Woesh. The tiny city of chongqing has created the worlds first smartphone lane. I am one of those people who is obsessed with their smartphone. Always have to stay plugged in. I think a smartphone lane could work here if london, as well. Its dangerous, too. If you look at your iphone or your smartphone for that matter and you walk into a car our bump into other people. Actually, it is really dangerous. Im serious about that. Youre laughing, though. I have walked into a lamp post before, outright. But i dont think its just facebook. Of course, the cnbc app is totally a little plug there. Absolutely. And we want to hear from you on this. What do you think about a smartphone lane . Join the conversation here on worldwide exchange. Worldwide cnbc. Com or via twitter cnbcwex. So perhaps go on the cnbc app and send us a message through that. Lets have a look at the Top Performing stocks today. Aces cut its outlook for 2015. A fire in the Key Distribution Center in the uk damaged the third quarter. Asos sales off by a whooping 10 , double digit decline here. Thomas cook group, not faring much better, is down by 6 . This is after the company says it expects full year earnings above 3. 35 million pounds. Analysts do say geopolitical risks for its german business are partly to blame. And i want to continue with spains jazztel shares are up by almost 6 after orange secured a 3. 4 billion euro deal for the at thely come operator. The french firm says the takeover will boost its presence in the spanish stock m earngs to by 2017. Last but not least, lets have a look at publisis shares. Not moving a great deal this morning. Up by 0. 7 . The Company Announcing a Share Buyback program and, stephane, why are shares responding positively today . Is it because of the succession details or is it because of the Share Buyback . Its probably because of the succession. Its been going on for quite a while. It was due to expire next year. Recently, it was not intensing to remain ceo of publisis. But this morning, the Company Announced he will remain ceo until 2016 and would remain chairman of the company. That is a surprise announcement. The second significant announcement is the departure of he was widely seen as the potential successor of maurice. His departure opens the race. Its a bit of relief for the company and for the shareholders. The succession of levy is a sensitive issue in the company. Hes been, still since 1987, is extremely charismatic, the real inclination of publicis, and that is a delicate issue to replace such a caharismatic leader. Its targeting growth 100 basis points above the market average and its targeting a market at least 200 basis points average. Publicis announced a Share Buyback program and will gradually increase its dividends sales from 35 for 2015 to 42 of the target for 2018. More details about the upcoming strategy will come at the end of october. The company will make an announcement which is widely expected since the failure of the merger of the u. S. Company. For the time being, without any excess. But its the top gainer of the cac 40. Back to you guys. Thank you so much for that, stephane. Later on, were going to talk to you about that all important vote. And netflix has officially arrived in france. But house of kafrdz will not be included since their rival carries the rights to that in france. Netflix inking a deal with telecom to roll out services on the set top boxes later this year. Still to come on the show, the u. S. Launches its first iraq air strike since president obama vowed to expand the operation against isis. But will the strategy make any headway . Well speak to the former ambassador to the u. S. And former ambassador to tony blair. Thats up after the break. The all new, head turning cadillac ats coupe. Its irresistible. This guy could take down your entire company. H . Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. European markets trade lower after a tech selloff in the u. S. Seeing the tech heavy nasdaq seeing its worst day in a month. Orange sends spanish rival to the top after buying the firm for near