Transcripts For CNBC Worldwide Exchange 20141107

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 Editor Helia 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 you, allianz is delivering better than expected Third Quarter earnings, beating strength expectations. And were get something notes from the conference call. Allianzs cfo says hes confident it will improve following that transition period. The trade deficit has widened by more than expected in september, hit by a jump in oil imports and weak export to the european union. Thats what the data is coming out saying. Its saying the deficit group to 9. 8 billion sterling from 8. 9 billion in awl august when it plunged in big ticket imports. It has widened since then. Sterling is back towards intra day lows, but it is basically flat on the day after. Quite a significant decline against the dollar yesterday. Absolutely. Lets take a look at the european markets. They did move higher on the back of what we heard from the ecb meeting. Mario draghi reassuring investors do what they can to help the economy. Right now, though, a mixed trading day. Were looking at the ftse 100, german and french markets trading slightly higher on the day. The big performer is up about 0. 7 . Lets look at bonds. Is the ecb ready to do more . Germany, 0. 84 and the gilt at 2. 27 . Lets look in on forex. In particular, it moved 0. 6 against the euro as Mario Draghis concern that the ecb is united and ready to do more on conventional measures if necessary. Sterling fell quite sharply. That was despite the ecb keeping rates on hold. Which could provide additional headwinds. According to new research, the governments plan for a tax will have a, quote, strong impact on the primed market. Lets kick off just with some general price outlook. Even though prices have risen quite strongly in the last five or ten years, you still forecast strong prices across the uk over the next five years. Clearly were coming off a low on Interest Rate environments. Were coming off some fairley Strong Performance in 2014. If you look at our forecasts, what were saying is that prices in london in the uk will only rise by 10. 4 over the period over the next five years. And that is way down, just over the course of 2014, theyre likely to go up by approximately 2. 5 . Thats a relative slowdown in that market. Clearly theyre going to go one way and that will put some a big squeeze on affordability for a lot of people. Next year, were forecasting no price in london but again, over that period, 10. 4 , thats about half the average figure were expecting for the uk as a whole. We dont know the exact details of the policy yet, but you and your team have done quite a lot of work on what it might look like. What could it mean for property prices . We have partial detail. We know if the labor party came in, they are currently saying they would introduce the tax, trying to raise 1. 2 billion pounds. They also said the charge would be relatively low. That is saying that that would be 3,000 pounds a year. What weve done with that information, and knowing that the tax would be progressive if it were to come in, its model and the property necessary each price tandem what that charge may be. It might be 7,000 pounds a year, but rising progressively to that small 1500 or so, could be up towards 125,000 pounds. Those figures are much less aggressive than most people. As a consequence, there is no doubt it will have an impact on the markets. We can across the board, it would cross prices to fall by 5 . It would have the least effect between 2 and 3 , but it might be as much as 10 in the much more volatile markets, about 10 million pound. But even against that context, over a fiveyear period, you would still expect rising prices. Youre looking at the price of real estate in new york city. Is that happening in london, as well . Are you finding that some investors are getting priced out . If so, which surrounding bur roys are they moving to . When youre talking about london, youre predominantly talking about kensington and chelsea. That full ham market is starting to display the content. They tend to be different in nature. In reality what weve seen is its really stronger. Through the two wealth corridors. You have one that runs north and one that runs south towards wimbledon. I think where the gap exists is between that market and the prime market. I think there people will be able to get more space for less money and if there is a mansion tax charge, avoiding the tax charge. That would drive demand perhaps into some of those markets. When rate rises do come through, who is it going to affect the most in the uk . In terms of the age group, not the under 35. The under 35 have got a high proportion in the private sector. I think some of the constraints on the market, particularly around mortgage regulation will mean the numbers of those will grow dramatically. Were forecasting over the income five years, the number of private rents across england are raised by 1. 2 million. The guys who have the bulk of mortgage debt, the over 65 has paid it down. Theyve paid down a lot of that debt. So its a group back in the middle, its that 35 to 45yearold age group that have aggressively moving up into the Housing Markets, theyve taken on more debt. And those are the guys who i think will feel that affordability squeeze as we go forward. It doesnt look like ill be buying a piece of property in london anytime soon. The prices are heading higher. Thank you very much for that. All right. A company that owns the majority stake in londons canary wharf has looking at eastern investors because it, quote, significantly undervalues the firm. Songbird was valued at 2. 2 billion pounds. Now, the rates to reach into the sky is a much covered story as cities around the world push up the highest sky scrapers. But the competition has just reached new heights. Manufacturers such as mitsubishi, hitachi and toshiba are looking to come up with new ways to produce elevatorses that reach record breaking speed. This is their analysis of how quickly the lifts go up. The Empire State Building still struggling. Taipei currently has the worlds fastest elevator. But chinas shanghai tower looks set with a list that can travel of 18 meters per second. Have you been to any of those . Ive been to the one in tie pie. Ive been to youve been to the bar . Theres a great day spa. I just hear. Moving on, french president hollande says there will be no new taxes imposed on french residents in 2015. He reaches the Halfway Point of his president ial career. Hollande says he would not run for reelection unless he successfully cut the nations jobless rate, which currently stands at 11 . To reduce unemployment within and ive said it myself, i promise you over the next five years ill manage to do it . It doesnt work like that. Essentially people will be unforgiving and they would be right. Were you surprised with what hollande had to say . It was a difficult task. This program yesterday was described as a do or die moment for francois hollande. He has less than 13 approval rating. For instance, when he assumed that the Economic Growth would return, that will reduce the Unemployment Rate in france. You promise to carry out reforms. Including the pro business policy, which will lower the corporate taxes by 40 billion euros, which he hopes will improve the french competitive business from the deficit. There was a long way to growth, but he claims that the government has made some significant progress by reducing the deficit from 35. 2 when he came to power in 2012 to 4. 4 this year. And the activity in 2025. Well see if he managed to convince some people in france. 92 of pooi people say they are satisfied. The extreme right leader would whip the election in case she would face hollande in the second round of the president ial election. So yes, he is very unpopular in france. The developing story that we will continue to watch, stephane pedrazzi. Thank you very much. Now, while the yens sharp fall, theres a blow to Domestic Airlines driving up fuel costs. The one Japanese Carrier says it wont be as effective as people think. Ma keyco has the story live from tokyo. Yes. Ama expected 29 increase in operating profits for the current fiscal year. Largely due to a sharp rise. The district of japan on a as International Flights were up 24 through the six months to september. And a special program that allows foreign passengers to board any domestic flight of around 100 is popular with over 50 more passengers for the period. The weaker yen has made travel more affordable. Another plus with that as japanese products became more positive in terms of price, it led to a rise in International Air shipments up 30 at a a. The airline has seen an Exchange Rate for the current fiscal year, 105 dwren against the dollar. For a a, every oneyear drop against the dollar leads to a loss of around 1 million in operating profit annually. Even so, the carrier says the way business is going, it is confident that its managed the negative impact of the falling yen. Thats all from the nikkei. Back to you. Ma keyco, thank you very much. Still to come on the show, with youth unemployment running high across europe, we speak to one setting out to disrupt the traditional hiring process. The ceo joins us after the break. Savy mobley has scrapped its Third Quarter earnings. It was forced to revise profits this week after falling by the maximum of 10 yesterday hit ago 27month low. Saudi mobily blamed the revision on an accounting error while at the same time blaming a sharp revisioning in forecasts. Joining us now is hadley gamble. Hadley, the question is, is this an example of enron . You have here either inept audit auditors, inapt employees and a major accounting scandal in what was a blue chip stock, one of the stocks that everybody favored in the saudi market, and having Something Like this come on the heels of this very ipo that we saw earlier this week, the National Commercial bank, 26 times oversubscribed, theyre really flying high. And to have Something Like this come on the heels of that is quite disturbing, certainly for investors looking to get into the market in 2015. Hadley, thank you very much for that. The web summit in sublip has come to a close. Seema mody is now back on worldwide exchange. She had been at the event last week. Lets talk about some of the highlights. It was interesting. It wasnt just startups and investors there trying to learn how to convene and learn about ways to strike a deal. Ibm, amazon, as well as cisco. Who said she was actively looking for acquisitions. I think thats telling about whats happening in the economic environment. So that was interesting to see, looking for perspective deals and plus some media personalities there, as well. Youve got to say, wilfred, these guys have money when you look at some of the hollywood celebrities out there. Now they want to know how they should invest it. And theyre not outsourcing that investment to typical fund managers. They want to get involved, they want to see what opportunity there is. And even Adrian Grenier, their star, hes investing in tech. Well, ive actually created a couple of websites, platforms for a couple different things. One is for emerging artists that support Young Musicians who come through my studio in brooklyn and have an opportunity to collaborate and together create opportunities for themselves. And the other is a Company Called ships. Com which has a focus on the conscious consumer. So we help to bring the best in Conscious Consumption for the millennial. Why are you interested in investing in the tech and Consumer World . You could easily stay with acting. Well, for me, its a creatively exciting opportunity because this is where the world is headed. Its all online and theres so much innovation and exciting things developing. And i want to be a part of that. And entourage fans, dont worry. We also asked about the highly anticipated movie and when its coming out. Here is what adrian told us. We all loved entourage, the whole series. Whats next . Well, the movie. Okay. Its coming out in june. Its a little ways. But i think youll find its worth the wait. So entourage, the movie, out june 2015. Yes. What can we expect . What is it about . Well, i dont know what im allowed to say. Maybe i should tweet doug allen and ask him. There you go. So we would like to know which Television Show from any era would you like brought to the Silver Screen . If you want to join the conversation here on worldwide exchange, get in touch with us by email, worldwide cnbc. Com or via twitter cnbcwex. Our personal handles are on the screen now. What about it . Perhaps friends or i wonder whether house of cards would make a good film. Absolutely house of cards. Breaking bad i still havent even watched yet. I have to go on to that. Definitely. Lets switch over to the startup world. There is another company that we have our eye on. Vito is a tech startup that uses a social network to bring together prospective young talent with employers. Some companies have already signed up to use the platform. Joining us now is the ceo of wozedu. Am i saying it right, oliver . Yes, wozedu. Its fascinating that youre using social media as a way to find jobs. Help us understand how youre integrating those two platforms. Exactly. We felt as though they havent developed that far in terms of job and recruitment, like a dating site, matching people with their skill set to the right companies. That wasnt traditionally happening at this point in time. And youre not just matching people up, youre trying to give advice because people as young as i think 14 it goes down to. Exactly. So when they start to become commercial at that age and start planning their future from the higher education, what is the best route, what is the best educational route and really makes them aware of that. I think a lot of students from the research that we conducted, 25 of them dont have the relationship into those types of careers. So i think it was a big gap in the market and social mobility is key here. It came out the other end, they told me that i should be a dentist. How accurate can the dwois be for kids that age inspect. I was told i should away gardner. This is the point in terms of really working strongly with the companies themselves saying, look, we want very good content from you in terms of what the job is about, what the job entails. We are filtering from what the company is saying, but also very strong career advise, as well. I think there is recognition that Online Platforms are a great way to find a job, but i still find from the Young Professionals i speak to that networking, facetoface communication and being introduced to individuals that can help you find a job at a specific company within thats being seen as a wonderful way to find a job. How do you compete with that . You know, theres only a limit to what you can do and where you can get in front of and speak. For us, its having a platform that can match that person with the right opportunity for them. So you are limited with who you can get in front of. And we are looking to play that. Is the issue people finding the right jobs or is it simply a skills mismatch, too many people doing art degrees and not enough people training to become engineers . I think this is another key point. Its raising the awareness. Its centralized. So having a pint, we can learn what is correct and it suggests these opportunities and these companies. And youre young, what has raising funds been like for you . Well, its at the moment, now were exploring that. You know, its very competitive and you need to be on your game in terms of having an appealing product that is interesting. I think youth unemployment is something that is not only in the uk, but its something that really is impacting the world. So were exploring that area. Thank you for your time and good luck out there. Get in touch with us, both on the question we asked you earlier. What tv shows would you like to see made into movies . Also, we will be talking about u. S. Market and oil, coming up. And still to come, u. S. Markets have been on a tear set for the Third Straight week of gains. But could a disappointing jobs number throw a wrench in the rally . We leave you with a look at what experts think the number will be. I think nonfarm payrolls will beat expectations, coming in around 250,000. We get it good enough on materials, but the market will be happy with that. But it could be a classic buy the rumor sell the news. The markets showed up a print of plus 220,000. I think well see another big league, plus 250,000. I think were going to see a very good stronger than expected nfp this week. And thats going to help to shift expectations for a third hike back somewhere toward the middle of next year. Its been steady from 230 to 250 numbers. So anything numbers beyond 250 and above might be a bit very positive on dollar. Its friday. Welcome to worldwide exchange. Im seema mody. And im wilfred frost. U. S. Futures point higher as investors turn an eye to the nonfarm payroll before market open. Meanwhile, wti hovers near record lows as the opec secretary general tells cnbc he is not panicked about the recent drop in oil prices. We dont see any nagging from anybody. But i think we are looking at the tradition of. Leaving his troubles behind, allianz boosts dividends on the back of an specd Third Quarter profits despite seeing 50 billion in outflows from pimco. Which profits take a hit from china as the shares move higher . The ceo says a dividend hike is still on the cards. You youre watching worldwide exchange. Bringing you Business News from around the globe. Another record day on wall street, the s p 500 hitting a new intraday alltime high despite the move on commodity prices. My question is, is it rising expectations ahead of todays jobless number . Does that mean you dont count me as an expert . Youre definitely an expert. Or was it mario draghi yesterday that provided a bit of a boost to markets . Thats a good question. I think its the jobs report. If you look at the move, we have not just the markets, but the bigger moves is in currency markets. And the dollar didnt just move against the euro 0. 6 . It moved sharply against other countries, including sterling. We did have the bank of englands decision, as well. I think it was a broader rally. Down about 7 since this summer. Well take a look at u. S. Futures and how they are performing ahead of that jobless number. The Dow Jones Industrial indicating a higher move. We could see another good day on wall street. A good day for stokes around the world. Specifically multi nationals. Weve been seeing this hovering around session highs in the last hour just trading down about one point. As you can see, off the lows of the day. Diving into the european markets, mario draghi reassuring investors he will do what he can to reassure the economy. Tell me exactly what youre going to do to stimulate the economy and warn off the threat of deflation. The ftse 100 up just 54 points. We did get that trade data, so perhaps investors are responding to that. Germany, france in the green. Italy down just about 38 points. Well have to see, wilfred, how will european markets respond to that jobs number, as well . We know its a u. S. Indicator. Again, Global Markets watch it closely. Absolutely. And deb lynn in the red today after your departure yesterday. Now, looking at bonds, we had yields just ticking up so far in november. People have been getting slightly more positive, slightly more risk on and with that yields picked up. Bond prices coming back. As you can see, the u. S. Tenyear is flirting with the 2. 4 handle. We havent gotten there yet. Were at 2. 389 . Likewise in germany, were quite a bit away from 0. 8 . In the uk, just above 2. 25 again. Lets look at forex. The u. S. Dollar had quite a strong day yesterday. Its come off that a little bit today. The euro weak. Ed 0. 6 yesterday. But today slightly in the green. The yen is flat, 115. 17. But the one i want to focus into is cable. Weve fallen below 1. 59, which is a key level yesterday. Were basically flat today. But as we were saying, the Monetary Policy committee is expected, kwoot a sharp falling in sterling. The u. S. Nonfarm payroll data released at 8 30 a. M. Eastern time. The dow jones expecting an increase of 233,000 jobs last month. That is below septembers bumper growth of 248,000. The jobless rate is expected to to stay steady just below 6 . Lets bring in michael pervez. Which really have been moving higher on the impact of the u. S. Economic data strengthening. I would say its always important. It also gets a little bit overanalyzed sometimes and overreacted to. Because i think, you know, there is this number two miss and beat survey expectations all the time, i think when you think about what its impact is on how the fed is going to react, they are going to be looking at, you know, broader term trends here. And the sort of broader moving averages in terms of changing their narrative on policies. Its always important, but again, it can be overreacted to. Having said that, i would be a little bit surprised if we had a huge miss on the numbers given some of the recent Employment Data that weve been seeing. Theyve come in recently at the 230, 240 level. I think well see more of the same, which is slow want steady growth and minimal signs of wage inflation. That would argue has been constructive for u. S. Equity market conditions. Wage inflation is a key factor that people are looking for. Is it one on the Global Factor that makes it easier . Does that make it easier for janet yellen to make the decision to tighten hers . Well, thats absolutely spot on key question. I think its a fantastic question. Its a twosided coin. On one hand, u. S. Markets are in from quantitative easing and the eurozone and japan. If mario draghi does not come through when needed to follow through on his Balance Sheet expansion plan. You know, when volatility sort of came out and the vix shod shot up to the high 20s. And said oh, were looking at qe4 and it wasnt clear whether even if morrow draghi had promised a Balance Sheet extension, whether hes going to get it done or not. So i think theres a neutral back stopping that goes on between the eurozone and the United States. Its very important. I think one of the key questions i try to figure out is what discount does imported quantitative easing get as it applies to the u. S. Risk. Because its not the same. Again, the eurozone, the ecb Balance Sheet expansion will come at a different way than our fed Balance Sheet schangz because of the design. You know, michael, wilfred and i were just discussing this earlier in the show, what do you think about markets trading on the back of record highs . Is it rising expectations ahead of jobs numbers today . I think the ecb is the dominant force here inspect in the u. S. , it may seem befuddled. But, again, if the were to not climb above 3,000 a week ago and stay there, and if the eurozone, you know, which is an enormous economy, of course, and those Deflationary Forces are not effectively battled and by you know, in a cohesive way by the ecb, that is an ee norm yum danger to risk appetites, anyway. For me, what im watching to see, my 2100 stx price target at the end of the year is going to get met or not. Thank you, michael. Lets give you a rundown of what to watch this trading day, aside from the u. S. Nonfarms number. Humana, Berkshire Hathaway will report. Lets take a look at earnings reports weve had so far today. Allianz appears to be competing with german insurers. The german insurer will now pay 20,000. This despite a nearly 50 billion falling out of its business. Outputs closed by late october. And this number cut by surprise. The banks earnings were hurt by a 17 billion settlement of mortgage fraud. Shares in disney fell 2 in after hours trade despite a better than expected. The company says the results which are in line with expectations are driven by his films including the super hero caper, guardians of the galaxy. The ceo bob iger is positive on the companys outlook. Listen in. Our booking trends are good. Theyre up in the quarter about 10 . That is a very good sign. So we feel good about the xooit quarter and are quited about toy story 4. Coming up, well hear about how the organization is bracing for a surge in north american oil supplies. How could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the Aerospace Industry in the u. S. . At t. Rowe price, we understand the connections of a complex, global economy. Its just one reason over 70 of our mutual funds beat their 10year lipper average. T. Rowe price. Invest with confidence. Request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. Oil fell for the fifth day in six after opec cut its demand forecast citing rising output from producers outside the cartel. Opec says u. S. Shale wouldve a larger impact on its market share than previously thought. Steve spoke to the secretary general exclusively in vienna and asked if saudi arabia was playing a game of chicken with u. S. Producers. No, no, thats no. No, no. We have some statement, but i think the american its with this. Because the problem of oil is the quantity is not that much. You have a lot of oil in the states, youre going to explore oil in the states, a lot of producers were not interested because if you invest, then there will be no more. And that is the message. If you could, it would decline. Production youre underestimating technological advances with i guess that decline that may take longer than you think. I think youre talking about its okay. American technology, i trust the american brain, i trust. But this is something that they cannot oil enough. Lets talk about the United States. A couple of times, you talked about the panic in the press and you referred to the u. S. Press, as well. And i would answer that. There seems to be some vitrole, some dislike of Getting Energy products from the middle east. Do you think there is a degree of unwarranted antagonism from areas in the United States . You just dont want to have that i would not why why are you against the middle east . Dont forget that the for this story. So this development was from the middle east. Its balance of the risk. The one who created it. So you have nothing against that. We are department of so many years. But you see what i mean. There seems to be a desperation. We dont want middle eastern oil to be the factors which depends on whether markets grow or not. Nobody is really independent. The United States consumes oil, consume and from inside the country and which is impossible from validities and north africa. All right. Michael, were going to brick you back in. We have to talk about where oil is headed from here. The consumer at the end of the day is benefiting from the drop in oil. The opec general secretary denying that theres a game of chicken being placed between the middle east and the u. S. How important do we need to hear from the middle east Going Forward if the price continues to drop . I think the saw idys action will be interesting. Producing almost 9 Million Barrels of oil here a day in the u. S. Thats closing in on saudi arabias production numbers. If you do a graph, you could almost see catching up in the pretty near future. So i think saudis response here has been rather deliverant and focused. You know, i think one of the questions you have to part through is how much how strong does the past have to be to really knock down, you know, the marginal shale production in the United States to the level that the saudis feel comfortable with . I think its a very real issue here and the saudi ves a very big strategic issue, which is i think going to maintain this position as an oil price gutter or not. We have had a fall of about 30 since the peak in july this year. And 33 in 2006 and 33 in 2003. So its not unheard of to have these guys that moved. So perhaps investors are getting too concerned about the volatility in the shortterm. We will look back and think this is a temporary dish. Right, exactly. Weve seen over the as you just pointed out, over the last several years, nonetheless, it will have a big negative and for some people fatal impact if theyre overly levered, as they build out their financial models and oil prices are decidedly higher right here. The big question is with volume dilt or are the oil bears correct in that it really does say ive been here. There are overarching questions about global dmavend for anyones oil, with the eurozone and chinese slowdown. That is, you know, of course, a very relevant topic. And whether, you know, this is simply too much supply there around the world. Its almost, you know, every country for itself right now. And Different Countries have different structures in the oil industry. United states is one thing. Saudi arabia is a totally different company. Thank you very much for joining us. Right now, live shots from the Central Bank Meeting taking place. Thats mark carney on stage now, hes about to start speaking. Well monitor all the flashes that come out of that meeting in paris between central bankers. Now, before we go to break, lets remind you of the headlines. U. S. Stocks on pace for three straight weeks of gains as investors eye the yushl nonfarm payroll report. Speculators are to blame. And allianz starts off and close outflows in the debt hike. Ts ] i wish. Please, please, please, please, please. [ male announcer ] the wish we wish above all. Is health. So we quit selling cigarettes in our cvs pharmacies. Expanded minuteclinic, for walkin medical care. And created programs that encourage people to take their medications regularly. Introducing cvs health. A new purpose. A new promise. To help all those wishes come true. Cvs health. Because health is everything. Cvs health. Your goals, our experience. Your shoppers, our technology. Your data, our insights. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Engage with us. The bank of england meeting in paris, you can see there mr. Weidman and mr. Carney in the center of the shot. Well bring you flashes out of that meeting as and when we get them. Now, the seb summweb summit dublin has come to a close. Our very own seema mody is back from the event, thank god, and seema, not just tech prices you were speaking to. A lot of personalities. We spoke to actress eva langoria, Adrian Grenier, not only about his movie, but where hes investing in tech. Well, ive actually created a couple websites or platforms for a couple different things. One is for emerging artists to support Young Musicians who come to my studio in brooklyn and have an opportunity to collaborate. And together create opportunities for themselves. And the other is a Company Called ships. Com which has a focus on the conscious consumer. Why are you interested in Consumer Tech world . You could easily stay with acting. For me, its a creatively exciting opportunity because this is where the world is headed. Its all online and theres so much innovation and exciting things developing. And i want to be a part of that. Is this impressive to see that individuals from hollywood, they dont have expertise in tech by any means, wilfred, but theyre finding opportunities and ways to get exposure to that world. He did say, by the way, all those entourage fans the movie would be coming out in 2015. Im looking forward to that. I have to say, i wasted a lot of time at university rushing through all the entourage series. Ari gold is one of the best characters weve seen in the last decade. Absolutely. So on that note, we would like to know from you which Television Show from any era would you like brought to the Silver Screen . If youd like to join the conversation here on was witness worldwide cnbc. Com or cnbcwex. And our personal handles are coming to the screen now, as well. Seema, theres one i want to suggest which our u. S. Viewers might not know that much about. Stars interstellar in the wire, but its a bbc show called luther. I would love to see more. I think its epic. I caught one episode, and i have to say, it was thrilling, for sure. If you can catch it in the u. S. , recommend it now. Still to come on the show, the countdown is on the way for the u. S. Nonfarm payroll number. We preview the release, up next. 5 30 a. M. In new york. Welcome to worldwide exchange. Im seema mody. And im wilfred frost. U. S. Futures pointing to a higher open after another record close on wall street as investors put an eye towards the new nonfarm payrolls before the open. And the opec secretary general tells cnbc hes not panicked about the recent drop in oil prices. Affordable, consumers, we dont see any nagging from anybody. But i think we are looking at all is not well in the magic kingdom. Disney shares slump after hours despite fallen earnings and confirmation of toy story 4. Leaving its troubles mind, allianz boosts its dividend on the back of the better than expected Third Quarter profits despite outflows from pimco. Youre watching worldwide exchange, bringing you Business News from around the globe. Thanks for joining us here on worldwide exchange. Here is a look at how markets are fairing on premarket exchange. Were looking at the dow, the nasdaq all trading higher ahead of that jobless number. A lot of expectations rising ahead of that number on what we can expect. A good indicator of u. S. Economic strength now that the fed has ended quantitative easing. Analysts want to see that the u. S. Economy can continue to improve without the fed support. Lets dive into the european markets yesterday. We did see that rally on the back of what mario draghi had to say at the ecb policy meeting. Today, a mixed day of trade. France just turned into negative territory. Just down 4 points. The italian markets also down at session lows on almost a triple digit move on italian markets. Germany, though, an outperformer here. Up about 24 points and the ftse 100 digesting that trade data we got out earlier today. Up just about 47 points. But, as we were telling you, its really all about the jobs number. U. S. Nonfarm payroll data is released at 8 30 a. M. Eastern time. With dow jones expecting an increase of 233,000 jobs last month. Slightly below septembers bumper growth of 248,000. The jobless rate is expected to stay steady at just below 6 of . How should you be trading todays jobs report . We have been asking some of our experts to have a go at nailing the number. Were looking for a good nonfarm payrolls number. I think nonfarm payrolls will beat expectations. The market will be happy with that, but it could be one of those classy, buy the rumors, sell the news. The markets are all bauld up for a print of plus 220,000. I think well see another big up from the plus 250,000. I think were going to be a very good chance of a stronger than expected nfp this week. And that is going to help to shift expectations for a fed hike back somewhere towards the middle of next year from the end of next year. Consensus, to be strong, actually, towards the 230, 250 numbers. So any numbers beyond 230 to 250 and above might be a bit very strong positive on dollar. Jobs, jobs, jobs. Lets get into it. Joining us now, patrick okeefe, director of Economic Research at kohn resnik. The market economists are expecting a better than expected jobs report. The main focus would be on an unexpected pick up in wage growth. What are your thoughts there . Wage growth, i think, well see some marginal improvement, but no breakout there. Theres still not a lot of Pricing Power on the labor side of the equation. So even with gains of jobs, say, over 250,000, there are some indications that may be a modest estimate given whats going on with seasonal hiring. I dont think were going to see much of a gain beyond what weve seen over the past few months in Hourly Earnings or in weekly earnings. Patrick, the headline numbers have been really good in recent weeks and months. And if, again, we get headline employment around 5. 8 , 5. 9 , it suggests all is okay in the uk jobs and the u. S. Jobs market. But underlying, when you dive down into the base weve had recently, are there problems still that youre looking at . Absolutely. The Unemployment Rate is really a troubled indicator. Because it can go up for good or bad reasons. A lot of the decline in the Unemployment Rate since the recession let go has been because people quit looking for work, not because they found it. Weve got a Labor Force Participation rate right now. That is at a 36year low. Its been bottom bouncing at that for quite some time. So that the Unemployment Rate is down, its largely down because of people having to withdraw from the labor force. And theres still not evidence. We saw a hint of it last month, but theres still not he that those who have departed the labor force can reenter and begin looking for work. Patrick, it was a great shot you send us earlier, the total job as a percent of working age population and thats been ticking up at the moment. Some good news there. It has over the last nine months improved from what was a recessionary low. But its still well below what had been the longterm average. But the gains there have been consistent and that is some indication that were at least keeping up with labor force growth. What we have to recognize is since the recession began, the work age population increased by 15 million people. But participation in the labor force rose by a lot over 3 million. So weve got a long way to go before we reengage americas worth force. Fed last month said the underewe liezation of the workforce is gradually diminishing. Was janet yellen not taking into account the amount of people who have simply quit looking for a job . No. I think the trail woman is very well versed in labor statistics. I read in that statement the words that you included, is gradually improving. That is true when we look at the employment rate. But its nowhere near where it should be. Were going to leave tlit, patrick okeefe, director of Economic Research at kohnresnick. Disney shares fell lower, but is there reason to celebrate . Find out more after the break. See things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. Its in this spirit that ingu u. S. Is becoming a new kind of company. Ing u. S. Is now voya. Changing the way you think of retirement. A stock on the move last night, zynga reporting a one penny loss per share in line with consensus estimates. Bookings rose a better than expected 15 . It set its mobile gaming push in motion with releases such as new words with friends. Shares have moved lower due to disappointing results. Take a look at where its trading at 2. 36. A lot of volatility given the high multiples they are all on now. Moving on, shares in disney fell 2. 5 in after hours trading. Woody, buzz light year and the rest of the gang will return for the muchanticipated toy story 4 in to 17. I cant wait for that. Julia boorstin has been following the story. Better than expected revenue driven by better than projected results as the studio with the u. S. Parks resort. One hot topic, the networks having to work. Iger says hes confident in the value of the bundble. Our booking trends are good. Theyre up in the quarter. About 10 . Pricing is up slightly. Thats a very good sign. We feel good about the quarter and yield. And our cruise ship business is doing quite well. Iger noted disney is in the director consumer business in many ways. But hes more focused on improving the value of the bund bundble. I guess, wilfred, you and i were young when toy story 1 came out. In general, i dont like that time cartoon movies. But toy story and lion king are at the top. I think toy story 3 was the coolest. Allianz has boosted its dividend on the back of better than expected Third Quarter werings in what appears an effort to compete with rivals. The german insurer will now pay out 50 of net profit as a dividend. Net profit rose in the Third Quarter, despite a total of nearly 50 billion out of its Fund Management business. Pimco following the departure of founder bill gross. Nonetheless, shares up about 5 , the cfo providing confidence to the market. Absolutely. I think this increase in the ratio is definitely according to the investors. But there is no reason they shouldnt be doing it already. There is no reason why they should be having a payout as low as 40 . Third quarter outflows from the manager did help push down operating profits. Here is another interesting story. Bank of america has cut its profits by 400 million in the Third Quarter due to higher legal costs from a multi bank probe of possible foreign currency manipulation. The banks earnings urt hurt by a 17 billion settlement with the u. S. Justice department over mortgage fraud. A lot of news out of that out of the uk and the fda. There was news the u. S. Regulators are going to join forces on that. There are seven banks involved. Theyre saying other regulators are still negotiating on that topic. It seems like we can expect more charges from the bank again. Looking at the other headlines at this hour, u. S. Stocks are on pace as investorses eye the crucial nonfarm reports. The opec secretary general tells cnbc exclusively that speculators are to blame. Allianz shrugs off pimco outflows with a dividend hike. Stamps. Com is the best. I dont have to leave my desk and get up and go to the post office anymore. [ male announcer ] with stamps. Com you can print real u. S. Postage for all your letters and packages. I have exactly the amount of postage i need, the instant i need it. Can you print only stamps . No. First class. Priority mail. Certified. International. And the mail man picks it up. I dont leave the shop anymore. [ male announcer ] get a 4 week trial plus 100 in extras including postage and a digital scale. Go to stamps. Com tv and never go to the post office again. Markets in the u. S. Set for three weeks of gains not the same in europe. Updates and were looking at a slightly down day for the week. The ftse 100 is down about 20 basis points of gains in the last half hour. France is down 0. 35 . And italy is down about 0. 8 . Lets look at commodities. Oil is posting after dipping fourth frt day in six. Behind the move, rising output from producers outside the cartel. U. S. Shale would have a larger impact on its market share than previously thought. Brent, 82. 97 so far today. At an informal meeting, officials said crude would have to meet. Opec secretary general spoke to Steve Sedgwick in vienna who began asking why oil price res at threeweek lows. You see how much is. What do you think it is . I think it weve had three years, havent we . Weve had more than three years stability. We dont see any nagging from anybody. But maybe i think we are looking at the traditionals. Im interested you said that. You and i havent spoken about speculation for a good three years plus. We saw this down to below 40 a barrel. You and i talked a lot about speculation. Why is there a resumption of speculation now when we havent seen it for so long . I have no idea. The time spent is not that long where we have to look into this very carefully. It is about the market. It is there, but to be on will be okay. But to look at what happened in 2008, where prices went to 147, we were looking at them, why you have this price there is no reason. There was nothing wrong with that. Now, at the same time here, we have this problem. Maybe to some supply, but not that much. Not as much with this decline in the price. Oil producers are concerned about the price of oil, but there are areas of the market benefiting from the drop in the price in oil. The tenth consecutive day of hitting new highs in yesterdays trade. Airline stocks continue to move higher on the back of that drop. The Dow Jones Industrial indicating an open higher. Nasdaq off around 4 points in premarket trade, s p 500 trading lower. How do you make money in these markets . Here is what some of our experts have been telling us. The u. S. Would rather have euro recovering than a week dollar. Same with emerging market, as well. So what i mean, the numbers are strong, but not so strong. You see the raling continuing. Maybe not a huge rally, we have had a very good year. In terms of sector that we dont like, clearly those that are duration exposed, i think it could be problematic. You like stocks where you can have Pricing Power. You got the Pricing Power. I think the bank of japan will continue to unloose policy. I dont think the pedestrian is going to hike very much, if at all. I think qe4 is as much a likelihood as no more qe. I think in that world, bonds continue to look attractive. The ruble has been gaining a lot of attention. Down about 25 against the dollar in 2014. But there is speculation out there that the central bank was holding a meeting to talk about the ruble and its resilience. In fact, the russian finance Prime Minister says expect the ruble to firm soon and on the back of that, we are seeing the russian rouble gain a little bit of a momentum against the u. S. Dollar, up just about 0. 5 . And speaking with central bankers, this is a live shot youre now seeing of the meeting taking place in paris. Speaking right now, daniel anohee, the supervisory president of the bank of japans koroda. Weve seen mark carney. Theyre all there and we will bring you any flashes from that meeting if and when they come. Lets get you a rundown of what to watch this trading day. Aside from the u. S. Nonfarm payrolls number, investors will be eyeing earnings from humana and Berkshire Hathaway. Allen joins us now. Lets talk about the market which hit a record high yesterday. Interestingly enough, as you take a look at the internals of the market, it still continues to be the defensives. Is that a concern that were not seeing some of the growth sectors, like Consumer Discretionary that is leading this market higher . It is somewhat. Its been quite an exercise in psychology over the last couple of weeks. And the market has rebounded fully. If you take a difference in the selloff, add it on to previous highs, you still have an upside potential of another 10 higher based on that measure. But the idu, the utilities that you talked about, that sector, that has moved up 11 1 , whereas the s p has moved up 5 here in the last month. That is somewhat concerning because people are still chasing yields and, you know, that is usually not a good sign when everybody gets into something and it gets overdone in relative terms for the s p. It doesnt justify utilities having this kind of strength. And when there is an exit, it could be ugly. Allen, gold shares at a fouryear low. Some traders say stay away, you dont want to catch a folding knife. Where do you see gold falling from here . 1 100 is an important mid point of the run from 300 up to 1900. So well have to wait and see what happens there. But the Dollar Strength just continues. You know, and has put some heavy pressure on, obviously, the metals and energy and any of these resource stocks and any commodities. So i think the dollar needs to stop going up for gold to stabilize. But as i said before, i think the risk reward is still on the up side. You know, i look at 1,200 on a weekly basis. Weve maintained a little below that recently. Weve made some new lows. Lets see if we can respond. But i think the market right now, today, as traders were focused on the employment number and its not so much how many jobs we create, its what type of jobs i think the focus is. Were on to the next level. When were looking for jobs that are having hires and average wages, thats happening in more than 60 of the jobs we found here in 2014. Versus only 50 in 2013. So were getting more jobs and the jobs are getting better, but the market has priced a lot of this in, so i dont know at what point where good news has a positive impact any more because weve got great earnings, weve got great fundamental numbers and thats why the market is where we are here. Two months ago, the nonfarm payrolls numbers missed significantly. And it didnt bother the market at all. Are we focusing too much on this individual print . Surely the most important thing is the trend weve had over the last year. That trend for employment is improving quite significantly. Right. I think there will be limited impact, even if we have a great number. Were not in a position where were going to raise Interest Rates. If we have a terrible number, you know, were certainly not going to lower Interest Rates. So the impact, i think, is more back to psychology again and our overall trends are very, very positive. We would have to see a couple of months where were not getting 200,000 jobs to have a concern. And i think this is very limited in scope as far as traders go here at the marketplace for the last few months, the last couple on of years. It hasnt been a major, major focus. It has a shortterm impact on the markets, but 18 of the last 22 phenomenon farm payroll days, the market has ended up positive. So no matter what you bring to the marketplace, it seems to react positively, but we get this is short downturns, and then it responds and comes right back. Allen, thanks so much for joining us. Throughout the show, after seemas interview with Adrian Grenier, weve been asking you which Television Show from any era would you like forced to the Silver Screen . Joe tweeted in and said id like to see Gilligans Island on the big screen and seema can play the part of ginger. Seema, how about that . I have always wanted to try my hand at acting. But anyway, house of cards. Yours . Friends. Anyway, thats all we have time for on todays show. Im wilfred frost. Im seema mody. Thanks so much for watching. Squawk box is next. Cute little guy, huh . This guy could take down your entire company. Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. And its made with ibm. Welcome to squawk box. This is jobs friday. The dow and the s p are on pace for their third weekly gain. Well see if the jobs data report gives stocks another short in the arm. Whats happening with oil and crude . What happens happened to peak oil. Remember that . The head of opec says its speculation by traders, those nasty traders, not oversupply. Hey, you live by the sword and die by is sword. They ran it up. And the fourth awakens, the next Star Wars Film has a name. It is friday, november 7th, 2014, and squawk box begins right now. Good morning, everyone. Im barack obama in new york today. Joe kernen and Andrew Ross Sorkin are back at headquarters. We had a great time here in the big apple at a galla event for cnbcs 25th anniversary. It all started od red carpet where we caught up with a whos who in the world of business. Bob johns job, melody hobson, bob kraft and many, many more. Well bring you some of the highlights in just a few minutes, including conversations with Martha Stewart and barry diller. Find out what martha had to say about drones and Online Dating and where barry is having a hard time with the newest mobile devices. Im still in