The decision to split the company was a right one. Well be able to maximize on the capital opportunity and in life solutions. So in a way, its a journey and this is the right time to take the decision to separate philips into two gross companies. Shares of adidas get a kick out of a report that they could be bought for 2. 2 billion. Youre watching Worldwide Exchange bringing you Business News from around the globe. And welcome to the show. It seems like a crazy week of volatility last week. One of the big factors is that weaker german data we had two weeks ago, and yet germany, the dax, ended last week in the green. Amazing. We had to take a step back with the markets in correction territory. Still down 10 from the recent highs despite the move to theup side last week. So still a lot of pain for the German Markets. Of course, and volatility across the board last week. The big question is what is going to happen in equity markets this week. Absolutely. On that note, do you think jer man markets are oversold . Do you expect a weekend rally . And tweet us your thoughts and cnbcwex. Now despite all that volatility last week, friday was in fact a green day in your. And that might be why we have a little bit of a correction today. We are down 1. 5 . Lets have a look at the individual markets. Well, first of all, the stoxx 50 are down more than 1 . So the biggest stocks slightly correcting today. Well look at the individual markets, the ftse 100 is up 1 . The dax was in the green last week despite the volatilitvolat greece ended the week 7 down despite a 7 correction on friday. So huge amounts of volatility during the week there. Well have a look at some of the individual stocks. Bollore down 8. 5 . Havas is up 5 . They have jumped after france launched an Exchange Offer for the advertising group. Stephan is in paris with the full story. Reporter good morning, will. Theres a 30 stake in havas and he would like to increase the stake to at least 50 on friday afternoon. He made this offer, nine shares of bollore for five shares of havas. Thats nearly a 20 premium from the last closing price. And it still fits into the continuity of the offer. The son of the ceo of havas is supporting the offer. The board will be consulted a bit later in november and will appoint an independent firm to look at this offer. What does it mean for the company . Obviously, we are all looking at the dividend given that the mainshareholder and the chairman of the french Media Communication group, someone has speculated recently that such a deal would pave the way for a closer corporation if not a combination of the two companies. So far they have been rejected. The speculation has been rejected by the dividend, but this is all what it is about. For the time, the Market Reaction is not really surprising with havas trading sharply higher. The dividend is almost flat for the time being. Merci, stephan. A group of investors is looking to purchase adidas for 2. 2 billion according to a report in the wall street journal. They are up 2 . And lufthansas walkout has caused 1. 5 flights to be canceled. And if we are bearish, 2. 4, bullish, 2. 6. We have seen compression and settled near 2. 2 on the u. S. Tenyear, but we have come back from the 1. 8 we touched on wednesday. In the major markets the same is true, i. E. Yield compression in general but we have just come back off the low of yields, the highs in bond prices we touched on wednesday. Germany at 1. 83. The u. K. At 2. 16. One moving the opposite direction is greece settling below 8 having gone below 9 on wednesday and thursday of last week. Lets look at the u. S. Dollar just gaining a bit of strength on friday following the decent cop summer sentiment report. Todays generally flat across most of the pairings. Interestingly, it is bouncing back against the yen. The last couple of weeks have seen the yen take strength following a sixyear low against the u. S. Dollar at the start of the month. What does that mean for the nikkei . Well get and update on the asian markets more broadly. Sri is standing by in singapore. Good morning, sri. Reporter good morning, wilfred. Absolutely blistering risk on rally in the asian markets saying up 4 after the sentiment. 6 gain at the close, so that makes it the best oneday gain since june 2013. A big question is whether were going to see these gapes being sustained. Tomorrow will be an absolutely critical day for the china quarter gdp, retail sales and fixed asset investments. Therein lies the risk. If we see down numbers with q3 gdp and consistent below 7 handle, thats going to be very bad news for risk assets. On a more positive note, jakarta composite is looking good. The president who was up august rated today in indonesia is liked, but the big challenge for him is he does not have a majority in parliament. Thats going to be a big challenge for his proreform agenda and gathering the Political Support he needs. Wi wilfred, seema, back to you. Electrolux shares their report being up 10 this morning. Sap se is down 4. 63 . And metro is looking to be up 1. 71 . Philips ceo spoke to cnbc earlier to say the decision to split the unit was made at the right time, but he cautioned over the slowdown in russia and china. Both china and russia have significantly slowed down. And this is suppressing the growth they originally had in the gross markets. I think this is a reality for the near term that they should not anticipate immediately that it will recover. I am more positive about china, even though the gdp growth there is now hoovering near 6 to 7 . We believe that fundamentally the market will require a lot of health care, a lot of liking solutions. And once the ill filtration has been taken care of, i think that market will start showing a better result for philips, maybe next year already. Russia will take a bit longer. I really hope there will be Diplomatic Solutions to the tension. Its a pity that its now escalating. So can earnings provide a relief to european markets . Well bring in kerry craig, we have seen a massive move in european stocks the last couple of weeks. France, italy, spain, down 10 from the recent highs. Earnings have kicked off, is that in response to the market . Last week we saw fears driving the markets and not the fundamentals. With the correction now taking place, they will start hosting the fundamentals and earnings will be a good driver of the market, not also in europe but also the u. S. Unfortunately, the europe outlook is not as good as last quarter, but as we see the euro fall and see this feed into earnings, the earnings will pick up this quarter and into next quarter to provide a tail wind into the future, especially we valuations on now. I wont write europe off just yet. When we look at the volatility in the markets the last couple of weeks, how much has the slow down been in germany. In particular, is it a concern among investors globally theres nothing that Monetary Policy can do to stem the decline if it continues . I think that was the case. It was at the start of the year the ecb saying we can go out with Monetary Policy but cant solve all the problems in the eurozone. We need help from the government, the change to Structural Reforms. And the market was just focused on the ecb. Now its believed that mario draghi realized that you need these to be address ed and thats why you are seeing the correction. We are at a strong point for the economics but also politics. Wow were saying you are not writing off europe just yet, so if thats the case which sectors do you like and which can benefit from the weaker euro . Well, 45 of the european earnings come from outside the euro zone. So anything that is an exporter, you may want to veer away from companies that only export to china. Maybe something with a broader european exposure, broader global exposure. The u. S. Economy is very strong. Coming into the end of the year, you could see that strong pessimism about the eurozone fade away as you see the asset quality review completed. Stress on banks will go away. And also given that they are strong dividend payers, the yield may go up to some of the financial stocks. So as that credit grows, maybe more domestic focused companies, maybe something all about the consumer consumption. And you do favor the yield stocks, so how do you differentiate from a safe yield in equity to a growth trap . You have to focus on the quality, the us is tapability of the dividend youre looking for and what is a low income environment. Just this last week, expectations are going to raise the policy rates down a bit. And investors still need income. Thats why peripheral debt will still perform and the higher dividends will still perform in the sectors so far this year. Kerry, thank you so much. Thats kerry craig, Market Strategist at jpmorgan asset management. And coming up on the show, we have a lot going on in terms of market volatility. And if that will impact european markets, that will be the focus for us. Were also going to be talking to leading entrepreneurs which land in london. Well speak to the ceo of why the Bitcoin Exchange is making a big push into europe. And as microsoft gears up to join the smartwatch race, well speak to the ceo in an exclusive interview. And also, gambling on privacy. We talk to the author of a new book that investigates how Las Vegas Casinos are using your personal data to grow business. Your customers, our financing. Your aspirations, our analytics. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. 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 all right. Leading tech stocks include digital wallet maker coinbase saying its nearing a launch in the u. K. Well bring in brian armstrong, cofounder of coinbase and 35 on the disrupter list. Brian, thank you for joining us. Thank you for having me. Tell us, why are you expanding in europe right now . This enables for the first time customers in the countries to easily buy and sell bitcoin by connecting their bank account. What happened in the u. S. When we did this is not only did the adoption of bitcoin grow dramatically but it enabled merchants who accepted the bitcoin as well because the basic consumer was there. For the first time, this is available in europe and we believe this will follow suit. What do you say to the skeptics of those saying bitcoin is being used for Money Laundering and those trying to transfer drug money . I think its been pretty clear in the last year we have the ceo of Dell Computers and overstock. Com, expedia, square, the list keeps going. We have announced the deal with paypal and its getting harder and harder to make the argument as more merchants come aboard. Stepping back and looking at the u. S. Dollar seen as a safe haven currency across the world, what are the characteristics to give the currency a safehaven status people trust . Im not sure if its historical reasons or anything like that, but bitcoin has a lot of Better Properties in a way. It is not just a group of countries but a currency that is around the whole world. People are trusting the laws behind it, they are not trusting the laws of a certain country or group of people. And thats an empowering deal for some people. Who is the lender of last resort in that aspect . There isnt one. Anybody can go view the bitcoin source code. Its all open source and peer viewed by thousands of people all over the world. So thats what people are trusting in, that they can have it distributed open Payment System for the whole world that nobody can manipulate without their permission. Lets talk more generally about epay and electronic payment bank. Of course, apple is launching apple pay based on existing credit card infrastructure. So did apple miss the trick there . Not at all. There are a lot of interesting things you would think of for users to interact with it, but bitcoin is actually innovating more in the payment rails underneath. Its competing more with visa and mastercard and western union, people like that. But there already all types of products on top of that for merchants as well to integrate bitcoin. If we look for it in a few years, apple will be in that group as well. Im concerned about the consumers using bitcoin as we saw massive volatility in it over the last year, how are you building on the trust issues people have . Just look at twitter trying to bring it in as well, are you doing anything specific around there . Yes, the volatility of bitcoin has gone down every year for the last three years. Still in the early stages but its an exciting trend. For example, the pmerchants are accepting bitcoin payments. They are expecting those priced in their local currency and we instandpointly exchange it out to the that. So they never have to be exposed to the price volatility. And it also points to why developers and Software Engineers are excited about bitcoin because they can build on top of the platform in a way we have not seen before. And the adoption of people using api or publishing apps of bitcoin has been exciting over the last year. Huge fluctuations in the price of bitcoin when it broke 1,000 last year. Since then the price has traded near 350. Do you think it will ever reach that level again . The 1,000 level . We have been through three bubble periods so far in bitcoin. After each one comes down, its been at a plateau. There was only 5 million a day being transacted in bitcoin. If you look today, theres 50 to 75 million a day being transmitted in bitcoin and the price is up to 400. So theres going to be a lot more volatility to come in and upward channel, but these are the early days of bitcoin. Its like being in the internet around 1998, people werent quite sure what to make of it with a lot of innovation happening. Brian, how are your conversations going, your conversations going with government . It seems like that the governments are wanting total control of their currency banks, so they must hate the industry. Not at all. They have been very positive. In the u. S. , for example, they released guidance on how bitcoin will be regulated and we registered as a Money Services business. Here in the u. K. , weve had really positive conversations with hmt and sca, they are positive about bitcoin and youll see that trend continue. All right. Well leave it there, brian armstrong, cofounder and ceo of coinbank. Thank you for your time. Ill be attending the tech crunch event later today speaking to aols ceo tim armstrong. If you have questions for the aol ceo, tweet them to me. And apple is launching the new mobile Payment System. Apple pay is available through a Software Updated to ios 8. He tells cnbc the service is secure and apple will not track or collect information about what people buy. Taking a look at shares of apple up fractionally by 10 over the past three months. You can see josh liptons interview today on squawk box at 7 30 a. M. Eastern. Now microsoft wants in on the smartwatch game. Forbes reports the Company Plans to launch its own device within weeks. The smartwatch will passively track a users heart rate with a battery life exceeding two days. Forbes says the watch could be in stores for the time of the Holiday Shopping season. Microsoft down fractionally in frankfurt up 4 over the last three months. Cnbcs john ford has an exclusive interview with Microsofts SeaSatya Nadella that you can see on squawk box at 6 00 a. M. And ibm is moving up their Earnings Report to 7 00 a. M. They originally expected to report their earnings after the close today. They have a major big announcement to go along with this Semiconductor Unit. And they will be paid 1. 5 billion to take the units off its hands. Ibm up 1 in frankfurt and it will be a big mover today. Indeed. Now moving on, paris and berlin are reportedly working on a secret deal to see germany sign off on frances budget in return for a written agreement on a detailed rumor on cutting spending and reforms. Still with us is kerry craig, Market Strategist at jpmorgan. Is the scale of the reforms that they still have to pass just massive . It is. They have a lot of work to do to get to the place where the economy comes back to be sustainable and will generate good Economic Growth in the future. When you think about the size of the French Economy in terms of the yeuro done, thats going to weigh on the outlook in the same as what germany is focused on at the moment. That is looking at the secret talks between france and germany. It highlights about talking heads, but slow progress is being made and that progress needs to be speeded up faster for investors to have faith that the eurozone is not about the faint of heart, it is not all about mr. Draghi and his companies are working to a reform. Italy is a great example. In principle, spain is making great strides. The governments know if they can push the reforms through and france is politically different because they have quite restrictive government there at the moment, that when they do come through, they will see the support of markets. Just the penalties for not leaving these types at the moment are too weak. Why the European Commission is not doing much to help makes the debt bigger and is no proactive. So this is encouraging for markets. Indeed these types of reforms meet shortterm pain. So its surely sensible for germany to relax its views on austerity and relax its views on the importance of civility and allow this to happen for a couple years. Most definitely. You see that while germany was the strongest economy, it could have a hard line to say Everything Else needs to fall in line in terms of fiscal responsibility. As germany gets weaker dragged down by the internal partners l