At a division. Leaving its troubles behind, allianz sees a boost on the back of profits despite pimco. Profits take a hit on shares in china. The ceo says a dividend hike is still on the cards. George osborne says he is in brussels to get a better deal for britain, calling the 1. 7 billion tax deal unacceptable. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. And welcome to the show and welcome back, seema. How has the week been in dublin . Its been spectacular. Its been a busy week for the markets. Stocks at an alltime high in the u. S. The ecb made me think yesterday and we have the u. S. Jobs. A very big show. Were going to kick off with some earnings numbers. Ally i cant answer yanz has rallied to the top of the German Market after boosting on the back of better than expected sales earnings. Its competing with rivals and will now pay off 50 of net profits as a dividend up from 40 ratio. Net profits rose in the Third Quarter, despite a total of 5 50 billion flowing out of its Fund Business pimco following the departure of bill gross. The worlds second largest reinsurancer posted a larger than expected net profit as the group had to pay out less insurance claims related to natural catastrophes and manmade disasters. Richemont has had to pay less than analysted had been expecting. The company plains falling numbers in europe. A decline in the Iron Ore Price for ars lore milts has them cutting the steel consumption outlook. Shares up about 3. 7 in todays trade. Over the past year, down about 21 . Now, oil fell for the fifth day in six after opec cut its demand forecast. Behind the move, rising output from producers outside the cartel. They said u. S. Shale would have a larger impact on supply than originally thought. Crude would have to reach 70 before the full group acts. Opec secretary general spoke to Steve Sedgwick in vienna who began by asking about oil prices at threeyear lows. It is a decline in price. You see how much is the all the supply and demand, much more than during the day. There is as much to a 28 decline. What do you think it is, its three years of stability, havent we . Yeah. We have had more than thee years of stability. We dont see any nagging from anybody. But maybe i think we are looking at the tradition. Im interested that you said that. You and i havent spoken about speculation for a good three years plus when we saw this huge escalation down to 40 a barrel, up to 49 a barrel. You and i think a lot about speculation. We havent recently. Why do you think there is a speculation of that now . I really have no idea. The time spent is not that long. We have to look into this very carefully. It is there, but to be on the positive, it will be okay. But at 208, price of 147, were looking at the time, why you have this one. You know, there was nothing from that. Now, at the same time here, we have this problem. Maybe some oversupply, but not that much. Not as much as this decline in the price the. Joining us now is richard kelly, head of global strategy and our middle east correspondent hadley gamble. Hadley, the opec secretary general is trying to suggest that this fall in the oil prices is hes also trying to say we need a reasonable price for everyone involved. The number that saudi arabia is basically the godfather of opec and theyre refusing to sort of play by the rules of this Shale Oil Revolution in the United States. And at the end of the day, to matter what they do in terms of trying to keep hold of that market share, at the same point, the citi report is suggesting that its going to have to go to 70 a barrel to make it a problem toe even flatten Oil Production in the United States. The saudi economy requires that they have at least an average price a year of about 80 a barrel at the break even. So this is the kind of economy, as we know, that they pretty much want to spoim revenues. They attempt to make this a nonoil based economy. That requires cash, as well. At the end of the day, thats something thats not sustainable for them. That shale revolution is oil going to surprise the market. When you look at oil prices stabilizing, we are in a new era. The way opec would have come in and stabilized these prices is not here. It is very uncertain where youre getting this. For us to see another 10 lower, it is reasonable. Youre starting to see some upline. You start to get from here. It doesnt feel like we are at the bottom yet. 22 pergs in 2012, 33 in 2013. Oil is a volatility. Are we overreacting a little bit. I think overall, markets are in a certain state and i think its uncertain for many markets than weve seen in the last two years. And i think the issue is youve seen oil prices off, but what are they telling us . Are they telling us there is a lack of demand in the world or are they just selling us theres enough supply out there, this is going to be a for consumers. In which case you would expect half a percentage point being added to the gdp and the u. S. And uk. Wti crude trading below 80 a barrel. Why havent we seen the equity market respond in the price drop were seeing in oil . The fed has tapered in the asset purchases. We know the ecb is just getting started. There is that question of if this is boosting consumer abilities around the world, it could get us into a positive market next year. Low inflation and strong growth. And you also have to remember this is playing to geopolitics within the region. So saudi arabia, they have no problem seeing iran take a hit or russia take a hit here in terms of prices. This ultimately has to do with what they want to see happen in the middle east and this is not for them, this is about isis, this is about come nabs in the region. This is about taking on the assad regime. Its not a bad thing for saudi arabia. I think the bigger front lines of how this pans out is emerging markets. Someone in the central bank needs to step outside of that. No one is perturbed right now. Were going to leave it there. Hadley gamble, that you can for your time. Wilfred, with you, now a look at the markets. Lets have a look at european markets as seema says. Were on track for a third week of gains. All three indices in the u. S. Is not the same here in europe. We had two weak days, two strong days and were basically flat overall for the week. If things stay like this as they are, well be slightly up for the week. Up 0. 7 so far, but nothing significant. Lets look at the individual markets. That strength or relative strength is being is relative across the board, although the ftse 100 is leading the way. Germany up 0. 3 . And both france and italy broadly flat. Lets dive into bonds. We had a little bit of movement in yields yesterday on thoughts we might see the ecb still committed to outright quantitative easing, but nothing too significant. Yields coming back a little bit today. Were knew that 2. 4 level. Yields have gone up a little bit more since it was two weeks ago, but its still at the 2. 3 handle. So nothing to get too excited about. The tenyear in germany, 0. 84 and gilt 2. 6 . Forex, it was quite a broad based u. S. Dollar rally yesterday. The euro just bouncing back a bit of that today. The euro fell 0. 6 over course of yesterday off the back of the ecb saying that, a, its united behind mario draghi and b, it will remain on the stable. The next one to mention is cable, which is flat today, but it has fallen below 1. 59. The bank of england policy meeting kept rates on hold as expected. It was more the part of the u. S. Rally yesterday. Today is all about the jobs data. U. S. Payroll is released today with dow jones expecting an increase of 233,000 jobs last month, slightly below septembers growth of 248,000. The jobless rate is expected to stay steady at just below 6 . Still with us is richard kelly, head of global strategy at td securities. A lot of important writing on this fed number given that the fed ended quantitative easing. Now we want to see if the u. S. Economy can continue to do well without the fed support. They said the underutilization of is the fed being overly optimistic . I dont think. All they told you is were ending kwaunlt tafb easing because were on the back half of what were supposed to be doing here. But theyre not telling you how far away that is. That is where the underutilization comes in. There is uncertainty about wage growth and they need to see that before they can consider tightening. We think that its probably going to come sometime around september where theyre able to hike. But there is a wide margin of error. 5. 8 , is that the number we get through . That on the headline suggests employment situations are very strong. But underlying those headline numbers, are there key pockets that still concern you . Theres absolutely issues that when you look at the longer youre out of the labor market, the harder it is to get in and find a job. The more out of touch your skills are. Thats where these issues come in now where you may have a pocket having a difficult time getting back into that labor market. And we have forecasts. Where are you . Were sitting at 239. The issue is consensus is around 230 or 235. I think markets are looking for something around 250 or more. Thank you very much. Its good to talk to you. Well be speaking to richard throughout the show. Get in touch with us throughout the show. Worldwide cnbc. Com and twitter cnbcwex. Our personal handles, as well. Still to come on the show, its a tough world after all. Shares flipped after hours. We cross to cnbc hq for the full story. Could the uks general election next year leave the Housing Market on shaky ground . We bring you the latest report in just about 20 minutes. Plus, we hear about a big bet on tech startup. And the much anticipated hbo film. Synchrony Financial Partners with over two hundred thousand businesses, from fashion retailers to healthcare providers, from jewelers to Sporting Good stores, to help their customers get what they want and need. Banking. Loyalty. Analytics. Synchrony financial. Engage with us. Following Mario Draghis assurances that the ecb was poised to take all necessary steps to expand the economy. He confirmed the ecb would expand its levels to that of 2012. He tried to down play reports of a split within the central bank. On these reports, let me say, first of all, its fairley normal to disagree about things. It happens everywhere. Just recent statements about when to raise Interest Rates in the United States for fomc. It happened in the uk, it happens in japan. There is a part of normal diversity. Joining us now b, richard kelly, head of global strategies. I suppose after the week we had, we were not expecting a laugh out loud moment for mario draghi. Do you think hes regained the Monetary Policy initiative after yesterday . I think youve seen the market angst a lot. They came out in september more aggressive than anyone expected. That got the markets thinking, okay, the ecb gets the joke now. You have stories over the last week of discord within there. I think he came out and basically made clear that the ecb may have some shortterm issues getting these things implemented. They have to figure out how the abs buying is going to happen. But over the next two to three years, do not doubt their conviction. Weve had mario draghi in the past. In response, the markets rally. And i think thats in the shortterm, at least through fed or march, the market doesnt see enough action. Until then, you have to deal with 3yearold tros, build up in anticipation and more use in margin. Get abs off the ground. Theres a lot of moving parts. But by the time you get to march, the ecb will be increasing at a very short sight. In the shortterm, they may have some issues. Elsewhere, not in contrast to the bank of japan. I dont know if hes wary its going to strengthen. I think he wants it to weaken. That is the policy of the ecb right now. They know they have very few tools. They know that can help on an Inflation Expectation basis. They know that can help to try to bring some of the Consumer Price inflation in. I think thats the issue. You look on markets, you look on dollar yep, the boj has delivered and the dollar yen is off. Euro er sterling, there is potential there. The deputy minister said hes skeptical in the case of crisis that traditional Central Bank Powers to boost inflation is limited in france, hes saying. But in the sense that the central bank has less ability to boost inflation. I suppose that is a debate that continues. Can they have outright qe . Both legally in europe, much less in the developed bond markets, can inflation come through . The central bank can help with whats going through. I think the debate over buying government bonds i think is somewhat sitting in the eurozone. I think it would be be as effective as it is. 0. 83. Correct. Theres nowhere else to go. If you look at bunch, what is driving bunds is Inflation Expectation, nothing else. I think the point from the central bank is theyre doing what they can. We need structural from the politicians and thats not being delivered right now. Theyre saying Central Banks have a limited capacity to triggeren flagz flights. Thats not what the markets want to hear. They want to hear the central bank has it under control and they can put procedures and stimulus in place to control the threat of deflation. This in some ways could be seen as uncertainty Going Forward. Theres no question about it. You do not want your central bank out saying that they dont have any tools left and that is exactly the world we are in. Well continue to watch the markets and see how they respond to that. Richard kelly, were going to leave it there, head of global strategy at td securities. Germany, theres still no sign for the strike by railway workers. The industry is likely to have a big impact on celebrations tomorrow at the 25th anniversary at the fall of the berlin wall. The gdl union is demanding a 5 rise in wages and a 37hour working week. An austerity demonstration has ended in violence. The protests turned ugly. Police used tear gas and Water Cannons as violence flared up. 50 people were hurt and 30 arrested. Demonstrators were arrested about plans to make pension cuts and raise rates to meet eu targets. Another fight is brewing in europe. Uk chancellor george as born is in brussels to try to negotiate down the bill that landed on britains door steps, walk into a meeting of finance ministers, osbourn had this message from the eu. These demands that britain pays 1. 7 Million Pounds on the first of december is unacceptab unacceptable. I want that discussed at this meeting of finance ministers. I want it on the agenda, it is on the agenda and i will make sure we get a our uk Business EditorHelia Ebrahimi is joining us on set. We know these have been made throughout the decade. Is it just the timing leading the uk government that has to pretend to put up a fight . I think its a bit more than a pretense. We had a revision. The sex industry and drug industry added about 10 billion pounds to the uk gdp. To cover these revisions, which are across the border, and by the way, its not just the uk that is having a problem with this extra bill, its the dutch, which are the second higherest and dont really want to pay it. And because of this and because the uk is growing so fast, the amount of money were now paying towards europe has gone up substantially. Ill give you an example. Back in 2010, we are paying just 7 billion. Net last year we paid over 17 billion pounds. So this is a big, big cause. And the eu basically needs the money and is looking to countries like the uk to provide that money. But now cameron has said to mps in the country, im not going to pay the full amount. But these are the rules, arent they . If we are part of the eu and these are the rules, we have to pay it. The timing is unfortunate. The timing is unfortunate. I think the upward revisions, there was a discussion of whether its fair to calculate it like that. But youre right, these are the rules we have to pay. And if you go back to 2008, you can see that because we werent doing that well, we had a net contribution of 3. 4 billion. But we might get to delay how much we pay. And in a way, if cameron gets to delay what we pay or pay such small tranches, so after the election for him, thats a job done. Helia, as ever, thank you very much. Coming up on the show, i caught up with Adrian Grenier ask asked about his passion for tech. I also asked him about the much anticipated film adaptation of his hbo show. We all loved entourage, the whole series. Whats next . Well, the movie. Okay. Its a little late, but i think youll find it works. So entourage the movie out for 2015. What can we expect . I dont know what im allowed to say. We would like to know, which Television Show from any era would you like to bring back to the Silver Screen . John tweets, how about hawaii five0. Have you ever seen hawaii five0 . I have not. It was a big voe back in the days, i think in my dads generation. We want to hear from you, what shows do you want to see being made on the movie screen. And were just going to bring smu flashes. The bank of japan koroda is speaking in paris at the Central Bank Meeting. He said japan has been making progress on structural reform. Well bring you more on those stories as the show developments. Still to come on the show, with a bank of england rate hike looming, what is the real deal with uk housing . We discussed with a Property Group after the break. Stock necessary europe try to eke out early gains. Wti bounces back a bit as the opec secretary general tells cnbc he is not panicked about the recent drop in oil prices. Investors will boost its dividend on the back. We dont see any nagging from anybody, but maybe i think we are looking at the tradition. Alianz leaving pimco but still boosts profits. Uk chancellor George Osborne says he is in brussels to get a better deal for britain, calling the eus 1. 7 billion tax bill unacceptable. As we were just telling