Rules. With strict dependability, no one is asking, no one is asking, not the government asking for anything. And in another exclusive interview, Indias Central Bank governor tells cnbc multipolicies are driving marketability. One of the biggest concerns, the World Economy is not picking up. Chinese world has slowed down. Weve japan not pick up. Weve seen europe in a very bad way. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. Well, what on earth is going none markets . A lot of red behind me. Volatility has spiked this week and equities have done, too, in both directions. Today down, 0. 75 . The stocks down 5 . Whats driving this, a big, big selloff and that has fed into european markets once again today. It seems this is being led bust ji german negative data and what people think that means for the jury row zone as a whole and Global Growth. The u. S. Was unable to shrug is off. And out. 5 . Germany down 0. 7 . Lets look the abonds, weve had a bit of a rally in u. S. Treasuries in the last week or so. Only a week ago, the tenyear u. S. Treasury is 2. 43 . Slightly bullish move. And 2. 33 . Weve had similar in the uk, 2. 6 in europe, a bit of a safety push. German bonds still at 0. 9 . They havent seen the same magnitude but already at very low levels. Lets look now at commodities. Big, big moves continue to happen in the oil price. Below 90. Another 1. 1 today. Wti moving to its twoyear low yesterday. Gold, interestingly just off the day, but that doesnt tell the full story. Its been rallying over the last week, a bit of a safe haven trade. 1217. 8. And the first in 13 weeks not to have games, in fact, its bounced back a little bit today. Overall, the dollar has come off its highs. The euro dollar is 126. 65. And against the pound 1. 658. Lets check on whats happened in asia overnight. Standing by in significant ngap. Hi, wilfred. You look at the sacks 200. Thats hurting the producers. The other factor on the commodity side, china has imposed higher on coal. And we have seen a degree of composure in the yen, but it hasnt showered until 225, down by. 2 . And youre going to ask yourself, were bound so see more volatility in the Global Markets and the regional markets. Next week, inflation from the eurozone, and retail sales and the beige book as well. Strap yourself in. Wilf, back to you. Thank you very much for that, sri. Whats behind the markets . The Central Banks hands are tied it was warned. Draghi defended why the central bank had not launch first of all, q. E. Is not a factor unless you have a well defined factor. The second point is its affected like if like the fed did, the concentrate is concentrated on those activity that are closer to the crediteasing component of the financial assets. The third important thing, going back to japanese experience, is that the health or the bank insists its crucial. So without that, the q. E. Will not be effective. Any amount of points will not be effective. Europe must not rely on assistance of the rest of the world. Speaking on an exclusive panel 0 on a cnbc panel in washington. Jeff who was chairing the panel and his italian counterpart whether nations have a certain responsibility to do more when it comes to fiscal policy. I can tell you, its not a matter of one or the other. Every member has to take care, every germany has to take care as we move to investment. That is not the way we were. Can i ask you, would you agree to a change in the fiscal wounds in europe that allow a little more flexibility on Member States that are showing good efforts on restructuring . Is there some wiggle room perhaps in the german position that might allow some of these budget deficits to remain at 3 plus, while countries are engaging in the hard work of doing that job . We have flexibility in the european woods. Nobody is asking, no one is asking, not the french government, not the government is asking. There will be no need, for me it is to do what we agree to implement. I dont think anybody is saying that this process is easy. I mean, clearly it isnt. And clearly we see politicians and governments struggling currently with the political narrative in europe, it is not a good time a we so growth generally weakening to try and impose fiscal austerity. I wonder if you could share, maybe, some examples from the italian experience where you have overcome orr perhaps you have got workers cancels or younes for adjustments for the sake of growth. Let me go to examples, one which has been raised about the Pension System. The Pension System in my country used to be under heavy criticism and rightly so and now it has become stable over the long term. And this is achievement of past governments. As far as the current government is concerned when someone would say very ambitious, some would say very ambitious. Let me just quote the labor market which could produce dramatic change in flexibility in hiring and laying off workers, especially opening up the date of the labor market to young people. The minister said theres no need to change for europe. But italian ministers are on the record saying perhaps we could allow more expansive policy within the eurozone as a whole, while this very focused spotlight on specific country deficits. Do you think theres some value in us going down that path if germany was prepared to go down that path as well . My view is that we have to give practical content to a term we often use which is grow friendly fiscal consolidation. That to me is two things. One, the profile that has to be exploded given the full fiscal space. The other one is changing the composition of fiscal adjust both on the spending and tax side. We can use the same amount of sources including globe prospects and labor content of work. And joining us edmund singh the strategist at bcs financial group. Edmund, thanks for joining you, volatility is backward veng epps this week. Whats driving that all, german data . No, its not just down to german data. If you remember, we had the imf report, and thats something is that we see in data like oil demand. Oil demand has been growing at the slowest in three years. That tells you something. That tells you that Global Growth is not going great guns. Im interested in that, so the imf can downgrade Global Growth. Oil prices are very low so that should be beneficial for the u. S. Economy. So why is the u. S. Included in the market selloff . That is a very good question. If you were invested in u. S. Equities, particularly if you were invested outside of the u. S. , in other words, if you were invested in pounds or euros, youve made a fortune, not just on the movement in the s p itself but also on the currency as well. Clearly, when markets sell off, theres a huge tendency particularly for a retailer that says run for the hills. Just to say ill take my profits on out. Thats what you see. If you look at mutual fund flows they are reentering bonds. Frankly, thats the wrong move because if you look at where bonds are today, its a hemp for safety. Europe, though, has been a major concern for investing, jogging speech yesterday sparking a selloff in the u. S. With the economy improving how concerned should u. S. Investors be about the slowdown here in europe . Well, at the corporate level, in fact, it has an impact because a large number of Companies Higher in sales not only to asia but also to europe. If you think about Companies Like huet packard, and others. When the dollar isnt strong, exporters outside of the u. S. Repatriate it back to the u. S. In contrast, were seeing a weakening euro. I think it will, but there is a lag effect. If youre expecting to see it this month, next month, forget it. It takes three to six months for that to start to turn up. The german factory orders were okay, but they were poor, they were seasonal due to the holidays. But i expect that to pick up which give europe and other eurozone companies a competitive challenge. Well continue that on the european markets. Head online for a live blog, leave us your comments on why you think we are seeing a selloff. Lets start to the markets and get top stocks or bottom stocks. Finnen stocks fell and said it would be forced to reduce production levels. And sd micro also slipping around 4 . Edmund, techs done pretty well recently, is this the sign its about to turn . I wouldnt go that far, wilfred. I think tech has done very well. Bear in mind, within tech semi conductors are probably one of the most volatile subsectors. They do move very well with oil and expected demand. However the read through the whole is a dangerous thing do. We do know there are so many end products that chips go into like pcs. Actually pcs are starting to flatten out now, tablets, smartphones doing better. So its so difficult to read across the whole sector. I would be careful were going to get the prechristmas bump now. People obviously will be making phones, tablets, and other electronics ahead of christmas so its different. But if you had to put money in technology, where would you put it, you say semi conductors volatile right now, wont that help intel and qualcomm and others . Yeah, the names are holding up best. This is something i like about the Technology Sector at the moment. You actually get a very good dividend better in the market so ill be investing in intel, apple and others. Edmund, thank you for joining us, well continue after the break. But coming up on the show, markets are on a virtual roller coaster ride we hear from one strategist. Another tech Company Heads to splitsville. Symantec plans that. And will pope francis take home the Nobel Peace Prize as many expect . Were counting down. Get in touch with your predictions. Im type e. My golden years will not just be gold plated. I had 3 different 401 k s. E trade offers rollover options and a Retirement Planning calculator. Now i know when im going to retire. Not if. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Announcer youre watching Worldwide Exchange. Pope francis is to be awarded the Nobel Peace Prize, others are ban kimoon. Well bring that to you when it happens. And weve been getting your tweets, adam tweeting in, yes, malala should win, would get my vote. Join a conversation on Worldwide Exchange. Tweet us cnbc or our personal handles which you can see on the bottom of the screen, wilfred did you know aside from getting the Nobel Peace Prize you win 1. 2 million. I did know. Im sure they donate some of it to a charity they support, either way. 40 minutes away for the results on that. Absolutely. Another focus for traders, commodities, Oil Prices Continue to slide way lower by growth fears, grant slipping below the crucial 80 mark. And opec also fell to its lowest level for the lowest overnight. Edmund, i want to get your thoughts about the oil market, how much farther could oil slide from here . Well, it could slide further, but dont forget the pain that they would be suffering. If you look within opec, somebody like iran needs 150 a barrel to balance the budget. Clearly theyre not getting that so theres already massive deficit. U. S. Shell, dont forget, its expensive to produce, 84 bucks. If it goes any lower, they will be making losses. There will, therefore, be a massive reaction to production. And Energy Analysts for the markets, were just touching on the move in oil prices below 90, of course. Since theres a lot of complicacy in the market. Oil is getting harder and harder to find. More expensive to extract. Just a shorttime blip on oil growth . Yeah, i think the fundamentals havent changed as much as some have. From a technical point of view, weve been stuck in very narrow lines so any break up or down is probably going to be exaggerated more than the fundamentals. Plus youve had a moof. So a lot of the financials are moving out. But a couple things that are exacerbating this is actually weve had a fairly resounding silence as far as any action from the sounddyes or opec, as opec reports today. I dont think were expecting anything particularly in terms of production. Sort of the normal First Response hasnt yet come. And of course, its a very heavy maintenance season. So at this period of year, demand always falls down. All of these things coming together in the short term exacerbating the negative sentiment. Thats making things worse. Until we see what the attitude of opec and the saudis is and the willingness to test this, the market is going to remain pretty jittery. Peter, how should investors play the Energy Sector as the price of oil falls. Energy stocks continue to underperform by far the worst u. S. Sector now performing at its alltime low since june . In market we called the market down saying it was getting pretty touchy. The sector is looking more retractive. Were seeing almost 20 up to our price targets and thats a level which is starting to get more realistic. That upside had been pretty much taken away six months ago. I dont think were seeing investors willing to jump just yet, but i think theyre getting more ready. And i think once you get some stability in the oil price you do get movements in. In the meantime, youve had an increase sector which is pretty badly hit and still suffering from low oil prices. Integrators, integrators are integrated for a reason. Were not talking about an immediate offset in the refining business. But were finding actually as cash employees come down from underlying operations there are a big offset from those companies who have that in terms of the working anti. So more than half of the cash from underlying basis has made it which on a short term basis is quite material. Edmund i want to bring you in here. Peter is saying the market is starting to look attractive. Is that good for Share Holders but bad for consumers along the way . No i dont think its bad for consumers. If you look at where gasoline prices have gone, retail gasoline prices have fallen but also in the uk as well. So i think consumers are benefitting from the oil. But i would say allintegrate said a good place to be. As your analyst said down the line there is at offset. If you look at the dividend deals if you think of big u. S. Companies such as chevron, theyre very attractive right now. So for a Retail Investors able to take a longer term, more than a threemonth view, now is a good time to start accumulating. You got to wonder with the average dividend in the Energy Sector much higher than the s p 500 were told the fed wont raise rates sooner than expected. Does that mean investors will switch to dividend yielding stocks . As long as the dividends are safe. That is the key point. What you want to see is not just by the high dividend yielders but high dividend yielders with good perspective growth. All majors like exxon and chevron do fit within that category. Peter, whats your top stock pick for the moment . Weve gone defensive with selfhelp as well. Weve been positive on shell for some time. Also, we pointed out last week, you know, exxon, exxon is an attractive stock at these levels. One of the things that investors have said they wanted from the sector is capital discipline and a generation of free cash. And thats simply what exxon has done for many, many years. When you look at it, 85 of the free cash being jern flatd the integrated oil sector is coming from exxon alone. The dividend isnt as high but secure. Shell, you get a both and nearly 6 dividend yield. Peter, thank you for joining us. That was peter hutton, Energy Analyst at rbn markets. Lets stay on that conversation, where do you think oil prices are heading . Slate sent in keep in mind oil prices are still up from the 2009 lows. Get in touch with us, email worldwide cnbc. Com. And still to come on the show, austerity on child at the imf meeting in washington. They go head to head on an exclusive cnbc panel. We bring you that debate after the break. 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European markets, the sellout, trading at the lowest levels in the year. This after the dow suffered its worst drop since 2013. Basically lead the decline as fears of Global Growth see it fall in multiyear lows. Austerity is not working, an exclusive cnbc debate. Germanys finance minister insists there will be no change to the strict spending rules. With flexibility into european woods. Nobody is asking, no one is asking, not the french government, not the Australian Government is asking. And dodging a hefty tax bill in a key emerging market. And lets g