French and russian governments lay out their 2015 budget. Moscow cuts Spending Plans as sanctions take their toll. Were on the ground in moscow and paris. Youre watching worldwide exchange, bringing you Business News from around the globe. And we just got the final reading of the eurozone september manufacturing pmi. It has come in at 50. 3. The previous month for august, it was 50. 7. It was forecast for september at 50. 5 but came in a at 50. 3, so slightly lower than expected. You can see the euro dollar has moved down. Also, five minutes ago, we got the german reading which came in at 49. 9, below expectations at 50. 3 and below where it came in for august at 50. 4. Again, slightly weaker than expected eurozone data, ahead of the crucial meeting for the ecb. In only a month, weve had two very strong days of positive gains in the stoxx 600 after the last season ended a month ago, yet the stoxx 600 ended the month broadly flat. Obviously, not much confidence there. Growing concerns around a slowdown here in the european economy, and now further evidence of inflation being curbed. Theres a lot of concern out there in the market and now further pressure on mario draghi to act, unveil some type of measures tomorrow in the ecb meeting. Indeed. Were just getting some flashes, as well, saying that they expect production to rise 2 in 2015. That is coming following those pmi numbers just below expectations. Earlier, thousands heckled the flag raising sayre mother by the citys media so far has refused demands to step down. Pauline is in hong kong with the latest. Wilfred, the crowd is getting huge and bigger by the hour, as you can see behind me. Were seeing the range of faces today. Its not just student protesters. Were seeing older people and families coming in, bringing in their Young Children as well as babies. Part of this is sheer curiosity. The other part is they are supporting, many of them supporting the pro democracy demonstrators. Part of the reason why were seeing so many more people today, it is national day, a public holiday. This is a day where china celebrates the founding of the peoples republic of china. And the chief executive of hong kong was at a flag raising ceremony earlier today. And he had a specific message for the demonstrators. He said, listen, going to the voting booth is a lot better than sitting at home and watching 1200 people make the decision for you. And what hes referring to is the 1200 people on a committee here in hong kong that vote for the chief executive. What beijing has proposted is its vergdz of universal suffrage in which each person in hong kong who is of voting age to vote for the chief executive. But they have to vote from a sluice of three to four candidates that have basically been prescreened. Now, in terms of safety, its been fairley calm and peaceful here the past few days. But one Multi National company is not taking any chances. Looreal yesterday said it is issuing a travel ban for its employees to come to hong kong, at least for the next couple of days during this sevenday holiday. But the demonstrators ive talked to on the ground are said to be civil and obedient and peaceful for the long hall. Thank you very much for that update. Moving back to europe, the ecb will update plans in naples tomorrow. It could increase tensions between the ecb and germany. Angela merkel needs to put a stop to Mario Draghis fiscal medeling. The central bank of overstepping its mandate in the battle against deflation and says the ecb has become a Bailout Agency with its program said to be detailed by mario draghi at its meeting in naples. Now the ecb is facing a lot of difficult questions. What is the likelihood of mario draghi unveiling some type of dramatic measures tomorrow at that meeting 12347. We know in europe and with the ecb nothing is ever really dramatic on that. Its about whats needed at this point. It is whats needed. Theyre overstepping their mandate and theyre right to do so because thats what europe needs. Were just saying top, that was so successful in the u. S. That stood for troubled assette relief program. If they buy the highest quality assets, its not going to help europe in any way. I want to touch on another quote. He said deflation is not a danger for europe, but an essential precontinue for restoring competitiveness. Has he got that wrong . I suppose you can make that argument, but its very, very simplistic in that the deflation we know is a great threat for economic recovery. While they have to regain the competitiveness, thats not achooefd through general deflation. Thats just nonsense. Sorry. And were going to get a comment tomorrow from mr. Draghi on what is included in these abs purchases. Do you think well get color on that topic alone and nothing more. Well, the discussions that weve had in a pattern are we wouldnt be surprised if he actually does a bit of a barbell approach. So he boys the stuff that needs to be bought to get the Banking System going again. But to apiece the germans, he buys some very high quality government debt, super safe, in order to keep them quiet. If youre an investor out there and you want to may the european market, is there a specific region or country that looks attractive to you at this point . I think the first one will be the German Economy. If you want to be a bit more bullish, then thats in the periphery. You dont think that could impact the German EconomyGoing Forward . It might well. But at the moment, im looking more positively at the sanctions in that theyre giving draghi real leverage over the germans to say, look, weve got to do something. This is going to down down your economy. So this is actually and i think theres just too much interest on the russian side involved economic interests that those sanctions will not be a permanent institution. We saw that the german pmi was slightly weaker than expected. That allows the eurozone as a whole to, therefore, take up more significant easing measures. I think thats a relatively extreme position. Broadening it up a little bit, hong kong protests continue to keep investors on edge. Hong kong clearly plays an Important Role in the financial world. What are your thoughts on the head whippeds Going Forward . Between a rock and a hard place, really. I can sympathize with the people there. But given all the other troubles that markets are focused on, i could do without it. In a way, im not too concerned that it will spill over into china. Because thats not really what they need. Its a bit of the same scenario that putin had with the ukraine showing public uprisings can bring about change and thats the last thing the chinese need in this current situation. I expect them to be pretty hard on this one. We will leave it there. Thank you for your time. Now, throughout this show, we will be discussing the markets, the ecb and what to expect in the Fourth Quarter. Email us your thoughts, world would itwide cnbc. Comes. Its the National Debut for zalando in one of girlnys biggest tech flotations in years. That of rocket internet has been moved forward by a week due to high demand. Zalandos stock is currently trading at 22. 20. Again, the issue price was 211. 50. An ipo to keep an eye on today. Lets have a look at european markets in general. The stoxx 600 finished september basically flat. They finished q3 fractionally down and thats how stock is exporter basically flat, but fractionally down, lacking momentum. Where is that weakness coming from today . Theres a bit of softness in the u. S. And continued weakness in asia despite hong kong and Chinese Markets being closed today. As you can see, a little bit of weakness in europe. The ftse 100 is down the most, down about 0. 5 . We had final reading of pmi coming in about 20 minutes time. The rest of europe, as i said, fractionally weak, but broadly flat. We have had that data out of europe. We think that made more movement on the euro dollar. Those individual stocks, sainsbury trading in the red. It will review its dividend policy. The group is going to cut Sales Forecast following a fall in Second Quarter trade. Its off 3. 5 . Tesco is off 3 . Britains watchdog has started a full investigation into the company after the growth value last month. Morrison is down the most of the big Food Retailers and thats brought down by the other two. Its near the bottom of the stoxx 600. Staying on stocks. Adidas has announced shares in the Stock Buyback Program in the Fourth Quarter. The company said it will repurchase up to 10 of its shares. Orange down about 2. 5 . The french government has trimmed its stakes in the Telecom Group by 1. 9 . This is part of its 2015 budget. Stay tuned, well head out to stephane, out to the French Finance Ministry for the latest on the french budget in a short while. Lets look at bonds. The tenyear u. S. Treasury yield staying around 2. 5 . The biggest factor that moved that was friday when bill gross announced his res ig naigz. Tenyear treasury, 2. 49 . We continue to see a strengthening dollar, another new sixyear high against the yen. 109. 75. The aussie dollar, really on a tear down 0. 4 today. 0. 87 against the u. S. Dollar. Thats almost a 7 decline in september and it continues that slide down. Lets look at the euro dollar. Which has moved down again off the back of slightly weaker than expected manufacturing data in the eurozone, perhaps expecting more loosening than otherwise would have been the case. Seema, what do we talk about after the break . The first patient to be diagnosed with ebola outside africa is being treated in a dallas hospital. We bring you live coverage from texas with the late oeft that case. And find out how automakers plan to revive demand as europes car market hits the skids. What companies are on the right track . And well bring you an interview with u. S. President jimmy carter who tells cnbc he would have been reelected if he would have been able to resolve the iran hostage crisis. I could have ran with the weapons that we had. But in the process, a lot of innocent people would have been killed. A big move in ebay yesterday. Jpmorgan and jeffries cut the rating following its spinoff of paypal. It comes to six months after ebays management maintained that the two businesses were Better Together in the face of calls from shareholders and activist investor carl icahn for a split. And we want to hear from you on this. Is bigger better or are spinoffs are best way to stay ahead of the game . If you want to join the conversation here on worldwide exchange, email us, worldwide cnbc. Com. What do you reckon . You know, i think smaller is better. I think the risk that you run when youre a larger corporation is that you lose your vision and i think sometimes decisions to spin off a company to unlock shareholder value makes sense. Absolutely. I can get that. And you lose your efficiency perhaps if the youre bigger, but the economies of scale are there for you to make the most of. We should see what other people think. Join the conversation here on worldwide exchange. Moving on, the french government promised to cut its public deficit from 2015. They plan to bring the level to below the mandated 3 by 2017. Stephane is outside the French Finance Ministry in paris with more. Stephane. Morning, wilfred. Its official now, france will need more time to reduce its public deficit. The target has been awfully chilly. The new target is 4. 3 next year, 3. 8 for 2016 and 278 for 2017. But will receive another delay, will get another delay from brussels. Were going to talk about it with the head of Economic Research at natixis management. Do you think france will have more time . Yes, clearly france will have more time. France is an important country in the euro area. And there is when we look at the french process, its likely to expand on government expenditures. So if we decrease in public expenditures, it will be a risk for growth in france. And for the all euro area. Do you think the main problem is the deficit, it will be close to zero in 2019, which means two years later than expected. Its necessarily long to go there. There have been strong import to reduce its deficit in previous years. But now it will do that. Because whether you reduce expenditure or you increase taxes. So its complicated. To do that now, when you look at the French Economy and private demand is very weak. And so having stronger measure to reduce structural deficit could be a real drag on the Economic Growth and thats not what is expected. Its not an austerity plan. However, the government will reduce the spending cuts by 20 billion euros next year. Do you think the effort could have been bigger . No. Clearly, when you look at the process, the main driver for growth is government expenditure. So if you reduce government expenditure, there is a real risk on growth. The main policy is to improve the momentum of private demand and then, when this momentum will be stronger, it will be the government will be able to reduce the deficit, not before. Natixis management, thank you very much for being with us. All eyes on the former french economic minutester is the new eu commissioner for economic affairs. So it will be the one in charge of the french deficit. Will he be is he going to be more incident gent because hes french . Thats the question. He will testify tomorrow before the european parliament. Stefan, thank you very much. Russia also in focus. The russian government has submitted a draft federal budget for 2015 to the lower house of parliament with signs western sanctions and the failing oil price are having an impact. 700 billion rubles, around 17. 8 billion dollars of previous Spending Plans have been axed. The ruble hit a record low against the dollar yesterday following reports russia was considering imposing capital controls to stem outflows. Both the central bank and finance ministry have denied those rumors. Now, our very own Geoff Cutmore in live in moscow with the latest. Geoff. Good afternoon to you. This is a fascinating story. The plot thickens, as they say. The central bank is now talking about investigating potential market manipulation. Of course, that rumor emerged yesterday suggesting that authorities were looking at some form of capital controls for this economy. We know there has been an outflow of sdi. The Economy Ministry itself talked in terms of in excess of 100 billion. This is not good for liquidity in this economy and credit availability. But would they go to the decree of introducing restrictions coming out at the moment. The central bank and the finance ministry are saying no, that is not the case. But as i say, the central bank is talking about looking into whether theres been market manipulation here to drive down the level of the ruble. I had the opportunity while ive been here to talk to andre coffman. The ceo and chairman of the bbc bank, one of the major banks here suffering a consequence of the sanctions regime. I asked him whether he thought it was necessary right now for the government to put those capital controls in place. Lets hear what he said. It is in order. So i think we dont expect now that this kind of mechanism are needed. But never say never. But not at this stage. So very interesting. While he said no, not at the moment, it doesnt seem necessary, he didnt rule out the prospect is that the government may think about it or introduce them at some point in the future. And just coming back to the budget issue, there are two areas where weve seen a rise in spending. One is around defense, considering what is going on with the ukraine and the other area is in some social program. Mr. Putin continues to enjoy popularity here among the grassroots and listing the spending on social projects will only help secure that at a time where the russian economy is unlikely to grow this year. Back to you. Thank you very much for that. Still to come on the show, uk supermarkets may need some Retail Therapy today. Coming up, we find out why investors are checking out the biggest growth. Stay tuned on worldwide exchange. Welcome back. The euro takes the leg lower after the latest pmi data shows german Manufacturing Sector has contracted for the first time in 15 months. Hong kong protesters defy Chinese NationalDay Celebrations warning of the biggest celebration yet, the unrest weighing on stocks in asia as well as europe. Mario draghi comes under fierce criticism for his Bond Buying Program amid reports the ecb is planning to buy greek and cipriot loans. A soouk super market says it will review its dividend policy due to falling sales. Im going to recap the European Data we had in the last half hour. German pmi came in at 49. 9, below forecasts of 50. 3 and below last months august reading at 511. 4. That is contraction in 15 months as we just told you. Eurozone september manufacturing pmi watt at 50. 3. As ugz, the euro has moved down about 30 basis points off the back of that news. We are waiting for the british pmi data, which we should have any minute now. But well move on to markets for now. Lets take a look at the european markets and see how theyre fairing. Keep an eye on the political unrest in hong kong. That weighing on investor sentiment. Also that data we got out on manufacturing data. You can see the ftse 100, the big underperformer today, a lot of that has had has to do with earnings coming from the retail space, specifically spans bury. Trading down 0. 3 on the ftse 100. The xetra dax Still Holding on to a fractional gain. Cac 40 down 0. 113 . Italian markets flat at the moment. And if we look at bond markets, the biggest mover so far today has been the greek tenyear yield. Its moved about 40 basis points. It had been at around 6. 75 yield. Its now 6. 3 yield. Bond prices in greece going up off the back of those ann