Its lowest level since july 2012. Russian Prime MinisterDimitry Medvedev says sanctions against russia have damaged International Relations. Speaking exclusively to cnbc, he says moscow has not closed door to anyone, but a reset with the u. S. Is not possible right now. No, of course not. Its absolutely impossible, lets be clear. We did not come up with these sanctions, lets be clear. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. Shares in shire are plunging at the bottom of the ftse after abvie said it would reconsider its takeover. You can see its down 26 . Shire has urged the u. S. Giant to proceed with the deal saying the group could face a 1. 6 billion if it walks away. The news is looking at overtakover targets circled by firms looking to take advantage of stable tax arrangements in the uk. As tra and smith both down 4 . Catherine, a very big move for shire off the back of this. Absolutely. Despite shire insisting that this deal isnt done yet, the market seems to think that its no longer with us. 30 , levels not seen since before news of this deal first emerged back in the summer. So it looks as though as far as the market is concerned, anyway, this deal is dead in the water. If you look at the abbvie statement from today, what its telling us, theyre being forced to consider this deal as a result of the u. S. Treasury deal. This is a change in tone from a couple of weeks ago when the chief executive was reiterating that the deal was so important for abbvie. Theyre going to go back, the board is going to meet again early next week. Shire is losing some of its top in the share price today. Its going to get 1. 6 billion for essentially not doing that. That is going to look and the very fact that this is built into the deal suggests shire were nervous even back in the summer that this deal could fall through. Were seen bigger and bigger news. What does this news tell us about the broader pharmaceutical sector, because weve seen a surge in m a as a lot of these drug firms are looking to grow their revenue as many of these names are dealing with patent expiration. We still dont know whether the senate is going to pass these laws. I think theres a lot of caution here with a lot of these firms. Having been overly cautious, of course, you have to bear in mind the angle to the u. S. Government has been very, very against these kind of deals. We heard the president himself talking about them and suggesting that almost immoral to be taken your profits off away from the country whose business was originally grown where the revenues are. Catherine, thank you very much for that update. Moving on, csr shares are higher after qualcomm agreed to buy them ahead of the deadline for csr to accept another offering from microchip. Csr up 31 . Intels First Quarter profit rode 12 . The Company Shipping more than 100 million for the quarter in the first time as pc sales improve as efforts to put more profits into tablet sess bearing frooud fruit. Revenue could grow 10 . There is no guarantees in business, but i think were benefiting from a couple of things theyre. Weve got Great Technology coming into the pc segment. Were seeing growth at the high end, lower prices bringing back the share from tablets. Were starting to participate in a wider range of devices. Our Data Center Business is benefiting from computing and connecting to the internet. Intel providing a bit of relief to all the bulls out there. The Semi Conductor index down 13 over the past three months is now trading in correction territory. Thats an interesting thing in those results was the main part of that uptick for sales. Theyre on track for their 40 million chip sales, the tablet sales for the year. But still making massive losses in that segment. Other chipmakers find ways to continue to that business. Given the news around chips and the movement that we are seeing in the philadelphia Semi Conductor index, do you think now is a good buying opportunity . Were seeing names in the Semi Conductor index trade into double digits. Email us, cnbc. Com or sweet us, cnbcwex. Flat to relatively down is what i was going to say. But as you can see on the interday charm, in the last five or ten 34i7bs, the stoxx 600 has moved sharply lower. Its down 0. 8 . Weve had a flat open in europe and moved more significantly down in the last five or ten minutes. Lets look at which individual markets is leading that selloff. The ftse most significantly down 1. 3 . Some of those tax inversion targets at the bottom as we suggested moments ago. Germany is off 0. 6 . It lowered its gdp forecast yesterday and Inflation Numbers came out this morning in line flat for the month. France is down 0. 6 . Italy down roughly 1 . Now, lets get to some more individual stocks. A big day for shuffles in europe, a new ceo of balance four. Qinetiq off 9 . Bg group has posed hell ga lune to take the head position. Lets look at bonds. An interesting move in the threeyear, low for the First Time Since may 2013. That negative sentiment compressed yields across the board over the last week or so. The u. S. Tenyear at 2. 2 . Just ten days ago, we had the 2. 2 . Incredibly low yield. And the uk, 2. 11 . It was at the start of october, around 2. 4 . Within europe, the uk is seen relatively as a safe haven. The u. S. Dollar gave up a bit of its recent gains. Yesterday and today, the u. S. Dollar rebounding yet again. U. S. Dollar yen, 07. 23. Sri jegarajah is standing by in asia for us. Good morning to you, wilfred. It was surprising that we saw that zew a day earlier and we saw a downgrade to germans economy. Yet the markets over here managed to slug off those European Growth concerns and put it down to buying at the lows and some bargain hunting. That is why we have a fairley pro risk day today, all in all, is for the asian markets. We have some Inflation Numbers, very subdued. That speaks to continued stress in the chinese economy, continue very subdued domestic demand, overcapacity in the industrial product side, as well. Yet the markets managed to shrug that off, too. Perhaps they are dealing with the idea of further stimulus. Weve seen some composure. The nikkei has managed to climb back above that 15k handle. Seema, back to you now. Sri, thank you so much. Coming up on worldwide exchange, i think i might have got carried away. Here why u2 frontman bono has issued an apology to his fans. No such apology from irishman Michael Noonan as the fading out of the double tax loophole. Drivers will enjoy the price cut at the pump, but will you splash out more this Holiday Season . We will want to hear from you. Thats coming up next. A single ember that escapes from a wildfire can travel more than a mile. That single ember can ignite and destroy your home or even your community you cant control where that ember will land only what happens when it does get fire adapted now at fireadapted. Org russia secured their trade relations with china with with cnbc. Medvedev said it was not politically motivated. Geoff is in moscow with more. Yeah, you could take that at face value if you like or you can dig a little deeper, wilfred. And its clear that russia itself increasingly isolated as a result of the several rounds of sanctions weve seen so far. Not only politically, but of course, economically. That sums up damage here to the economy in the latest round of sanctions, which have limited access to the Capital Markets have been particularly painful and will become increasingly painful if they remain in place with so many Russian Companies needing to service their foreign currency denominated debt. So this is a reason why now the russians are trying to fast track some of these deals with the chinese and, as you say, nearly 40 deals inked over the last few days here. So how is this being portrayed locally . Well, some of the russian newspapers have actually talked about this being an arranged marriage, maybe something that neither partner wanted to rush into, but has happened as a result of the sanctions regime. Lets just listen to what the Prime Minister told me about the motivation for these deals. Translator in short, these are not political considerations. It is our choice. What is it based on . Russia is both a european and an asian country. Which is why we trade with europe and are willing to continue to do so. Our trade with the European Union reached about 420 billion last year. And we also trade with asia, where china is our largest partner. So once again, these are not political deals, but an informed choice. At the same time, we need to take note of everything that happens around russia. If some of our projects with europe, america and others are put on ice and im not talking about the reasons behind this we logically move those projects to other destinations. Do you see the action that youre taking here alongside china as a way of trying to reduce the dollars significance globally and to try to marginalize americas power economically in the world . Translator we have nothing against the dollar. And i dont think china has anything against it, either. But we believe a modern currency system should be better balanced so when one of the currencies is sagging, this should be compensated by other global reserve currencies. In this sense, im only talking about my impressions which have not changed since 2008. I believe that we need six or seven reserve currencies to create the required level of Financial Stability and they should include the dollar, the euro, the pound, and possibly in the near future the yuan. We also considered the ruble, but this is a goal more a more distant future. We believe this would be a more financial structure. The dollar is the main reserve currency. Its a fact, no one can deny it. More over, as you know, we have substantial gold and firm currency reserves which we keep in securities. And the bulk of these securities are dominated in dollars simply because the market of dollar denominated securities is the largest in the world. Im not sure this is a good thing. Not because we dont like the dollar, but because it makes uses very dependent on the u. S. Economy. The u. S. Economy has started growing again, which is good, but we dont have confidence that it wont enter another recession, which would be bad for everyone. This is the kind of dependance that we should avoid in the Global Economic system as i see it. And i believe that many rapidly growing economies share this view, such as the economies often identified by the abbreviation bric, namely brazil, russia, india, china and sosouth africa. But not only them, i think this will benefit the Global Economy. And just as an amendment to this story, wilfred, many germany used to be russias main trading partner. Now china has taken that place. And i think as long as this sanction regime remain necessary place, the russians are increasingly forced to follow this pivot east policy, as they call it here. Well only see European Partners fall back and perhaps the russians and others who are prepared to step in and take their place increase the level of trade they do with this economy. Back to you. Geoff, thanks very much and a great interview there with the russian pm. Well be playing more of that throughout the show. German inflations remain stable in september. The figure keeps up pressure on the ecb to add further stimulus to boost the ur ro row zone recovery. It comes amid an increasingly gloomy outlook. And lets recap some of the most recent data weve been getting out of germany. Industrial production came in lower. So did factory orders. German exports fell 5. 8 . Some analysts pegging instability in russia and sanctions imposed by europe on russia. The most recent read was that zew which slumped into negative territory. Will this change Angela Merkels strategy Going Forward . Wilfred, that will be a question Going Forward. That is, of course, a big question. Lets put it to our guests now. Also with us, paul heinz. Danielle, let me put it to you first, do you think this worsening damage will allow them to change their policy looking forward . Well, i think the data overall is a surprise to the downside. Even though as a whole, recessions, just a sluggish gold which may feel like a quasi stagnation. It seems the main policymakers comment being more on eventually support more investment. But whether this means actual public spending rather than just putting in place policies to support investors more generally, such as more Public Partnerships as an example. Another possibility is to play with the competition. The budget could make it more, of course, friendly. So far, we havent seen actually policy, but if the dollar continues to surprise to the downside, there may be some shift, though not very big in Overall Economic policies. Thank you. Germany not only, of course, in the focus because of their own economic data, but also across the eurozone, being blamed for that weakness. Are they right to continue with the terms and continue with the austerity rhetoric . Austerity is correct. When it comes to tax hikes is dead wrong. For tax rates, cut expenditures is tough. And that should be done across the eurozone . I think so, yes. And its back down to the individual governments or is germany its down to the individual government because you dont have a federal government. Absolutely. But i think a lot of them are refraining from that because of german politicians stopping them from breaking the stability and growth pattern. Well, that pact has been broken for many years. And what europe needs is lower tax rates to stimulate growth, to stimulate work effort and they need less topic expenditures to kick people back. And i guess the question is what is the likelihood of that actually taking place . I think the likelihood is increasing with this rather depressing numbers. Though i would add you shouldnt look too much into the most recent month on month data. I dont think that we have a technical recession going on in germany now, but there is very sluggish growth. And some other numbers, like container imports, retail sales have not not that bad in germany and in europe in general, in the eurozone in general lately. So its not all bad. But the problem now is that with Interest Rates at rock bottom, okay, what can be done . Olivie, a new recession. So mario draghi, he has said it himself. People are praying, please, dont qe, what can qe do . What is there left to be done . Is this now out of the hands of mr. Draghi and into the hands of the individual government . The argument here is similar to the one were discussing on fiscal policy. To the extent that the data, not just the hard number, but the surprise to the downside. This would reignite the debate of whether the ecb has done enough. There is another one in december. It will expand their Balance Sheets and in a sense will put in place policy, but its not for sovereign debt, not for Public Sector but for private sector ones. The pressure to do more will come back. But in reality, i think when you think about Public Sector qe, the market itself is doing that. Bond yields are at a record low of the eurozone, so there isnt much for yields to pull further. And given the weaker than expected data coming out of the eurozone, the euro continues to weaken against the u. S. Dollar. How much farther can it go from here . We have bearish, medium term on the euro. The forex makes strategy weaker within the next 12 months or so from where we are today. But its beneficial for the euro area economy in many ways. That would boost exports to some degree. You also have some inflation into the region and finally, it helps overall rebalancing by making more expensive and exports cheaper. So in the countries that still are adjusting their current account, that will contribute to that adjustment. This is the main effect of the policies that we have seen so far. Daniel, thank you very much, from morgan stanley. Also thank you to tor hein. Still to come on the show, rio tintos iron ore output hits a record high, but will volatility rock the mining giant Going Forward . More on the First Quarter update, coming next. Slier considering a 55 billion takeover of a pharma firm. But a deal is on the horizon for qualcomm. The u. S. Chipmaker offers 2. 5 billion to london rival csr, sending its shares soaring. Extending losses with wti hovering at 80 a barrel, the move starting a selloff. Prime minister medvedev says sanctions against russia have damaged International Relations. He says moscow has not closed doors to anyone but a reset to the u. S. Is not possible right now. And were going to have a look at sterling as we await the uk jobless number. The data is just out. The Unemployment Rate has fallen to 6 for september. In august, it was 6. 2 . It was forecast to be 6. 1 . It has come in at 6 . So slightly better than expectations. Sterling popping up on the back of that, its at 1. 5935. Up 20 basis points for the day. This comes as inflation slowed in the uk to 1. 2 . Retail prices fell more than expected. Does this raise the question of whether the bank of england will raise rates sooner than expected . Lets poll that question to our uk business editor, helia. Whats happened today is another shift in the right direction. But it ironically makes things even more difficult. 6 , thats really close to the number we averaged out before the financial crisis is. Unemployment in the uk was around 5. 7 . Remember that the uk and the u. S. Have quite similar patterns in terms of employment in the recession we had mass unemployment up to 8 here, up to 10 . Then you came down. We are now close to precrisis levels. So were now topping 6 . Remember, the mark ca