Attempts to woo before next years election. Were live where the Central Bank Governor tells krvenz that the easing actions will help spur demand in the long run. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. And we just had the eurozone pmi come in at 51. 1 for november. That is broadly in line with where its expected to come in, but does point to a 16month low. This follows individual Country Service pmi that weve had in the last 20 minutes or so, seema. It does. Lets focus in on germany. Germanys private sector grew at the slowest pace in the month of november as new business output prices fell. The reason were putting so much focus on pmi data is because this is the last piece of Critical Data that will come out ahead of the ecb meeting on thursday where mario draghi is expected to provide some type of additional commentary on monetary easing. Of course, the big question is if sovereign bond buying will be announced. Pmi data largely coming in d disappointing. Thats why youre seeing the euro weaken against the u. S. Dollar. It was trading at 1. 23 against the u. S. Dollar. So weve had individual countries coming ott. Spain with a disappointing reading. Italy was a better than expected reading. France was worse than expected and also came in below 50, but was in contraction territory. Then germany and the eurozone balanced out at 5. 1 as expected, but nonetheless, the euro has weakened throughout todays trade. It will be interesting to talk to some of our experts to understand how much of an impact the drop in the price of oil is having on pmi and manufacturing activity. In fact, speaking of oil, brent and wti are both trading higher in todays trade after a residers report showed a bigger than expected fall in u. S. Stockpile. Take a look at your screen. Brent crude trading at 70. 95. Nymex krup up 0. 8 . T. Boone pickens is predicting oil will return to the 100 level in the next 12 to 18 months. Up next, the billionaire investor says he expects opec to eventually cut production possibly in the first half of next year. Listen in. Weve increased production. A Million Barrels a year for the last three years. And that is remarkable, no place else in the world has that happened. So subsequently, i think youre going to probably see opec do something in the First Quarter of next year as far as cutting production. But im not so sure how much they have to cut to get to where i said you would be in 12 to 18 months. Youll be back at 100 a barrel. Amid signs of division in saudi arabia. The country could cut output if other nonopec countries, including russia, also took part in a reduction. Were joined now by simon evans, head of emerging markets research at commerzbank. He joins us from frankfurt. Lets kick off with russia. Of course, they significantly lowered their 2015 gdp forecast yesterday. Citing both the sanctions and the oil price for reasons for that. Which of those two factors is having a bigger impact on their economy . Well, i mean, it depends on what you see Oil Prices Drop as. I see it indirectly as part of the whoelg sanctions drive against russia. We dropped our gdp forecast at minus 1. 5 based on the Consumer Sentiment and based on investor sentiment. And if you look at the pmi, consumer confidence, theyre all reflecting whats going on in the ukraine and russia, this is a major driver as far as the oil price. And do you think mr. Putin is that bothered about the sanctions . He seems to be looking past. He seems happy to cut the gdp forecast. Why isnt he more concerned . Why isnt he saying more about this . Well, if you listen to Many Russians themselves saying history is showing us russians can take the pain for some time. So lets say, i dont know, anywhere between 3 and 12 months. This is shown historically. There seems to be some entrenchment here. If you listened to mr. Junckers comments last week, it is sort of military conflict. I wouldnt call this a frozen conflict of cold war. This is more than that. Its strong tension. And i think there mr. Putin is making his point. Oil prices resume their downward slide yesterday after that dead cat bounce on monday. One question is how much longer can we see this Oil Price Impact the market because the consumer doesnt seem to be spending as much as you would expect given Lower Oil Prices and a lot of that has to do with the uncertainty how much oil prices can continue to move lower. What are your thoughts there . Yes, absolutely. Whether youre looking at the west of the former iron curtain or to the east, consumers everywhere are worried. So i think that this Lower Oil Price has to take its effect. And you see dollar ruble pricing in already today an expectation that on a 12month basis, oil prices will remain at current levels. And actually, if the central bank were to intervene on a larger scale, then we would see that come up. And its interesting to see why the central bank is not doing this. There is one case apparently out there against having lost so many ethics reserves in the last nine months. If the central bank were to intervene meaningfully, lets say today or tomorrow, you would probably see dollar ruble collapse by about 10 even 15 . Theres all this psychology playing into the story. Simon, yesterday we did get the gdp cut from russia. We did have a wide range of Eastern European pmis, most of which was surprising to the upside, including russia. What does that tell you about the direction of the russian economy . I think as you were mentioning before, this Lower Oil Price, i think well have a positive effect on pmi. Generally in central and Eastern Europe, we are tending to see some positive effect because this year and next year youre continuing to see flows of eu funds from the 2007 to 2013 eu budget. And this is something thats butt resing growth rates in central and Eastern Europe this year and next year. So there are a whole load of mixed effects and countercyclical effects playing it into at the moment. Simon, thank you very much for joining us, we appreciate it. And weve been talking about the drop in the price of oil, the impact on global economies specifically on oil dependant economies like russia. Russia getting some investigation, the eu and the u. S. To reafoirm energy must not be used as a political tool. The eu and the u. S. Agree on the need to coordinate sanctions and to reaffirm that energy must not be used as a political tool. So well keep you updated on any news that breaks there. But again, some interesting news coming out given the price of oil, how that impacts global economies. Another big story, get more on the current and future oil prices straight from the front office of the worlds Biggest Energy economy, exxon mobil chairman and Ceo Rex Tillerson will be on squawk box today at 6 30 a. M. Eastern. Its an exclusive interview from the business round table meeting in washington. Lets have a look at markets. A nice big show of green and red, the christmas colors wind me. Will we see a santa rally for the rest of december . Thats what were asking you today. Get in touch and let us know your thoughts. So far today, a little bit of a rally. Up 0. 25 on the stoxx 6 hurn. Lets have a look at the stoxx 50. Continental europe is up 0. 7 . Lets dive into the individual markets. The ftse 100 is weak today, down 0. 25 ahead of the chancellors autumn budget. Because its because of its heavyweighting of Energy Stocks which did already yesterday. Germany is up 0. 1 . France is flat and italy is down 0. 25 . Weve had those pmis out in the last half an hour or so. Well bring those to you as we talk about the euro. Weve got russia, as well. The micex index is up through the 1600 level, the peak for the year. The dollar has, of course, strengthened once again. The ruble off setting the gains in the micex, 54. 75. Lets look at top stocks, up almost 5 that rival shell is eyeing a takeover bid for telenor. 432. 6 on bp. Telenor is up about best part of 6 . Theyre planning to merge its danish rivals in a bid to cut profits. It will be structured as a 50 50 venture. Lavrox is looking for a new ceo. The uk bookmaker expects progress into next year. On the downside, metro, down over 5 after a hit from jpmorgan when it cut its stocks to underweight, citing concerns overhead windes and margins in russia. The eps forecast for next year by 15 . Weve had a little bit of profit taking in the bond markets yesterday and today after significant yield compression over the final quarter. Yesterday in the u. S. , we touched back up to 0. 3 . There is Corporate Bond issuance. A bit of profit taking in other bond markets. Germany is at 0. 7 4 . The italian moving in the other direction. Weve seen bond buying, weve seen record lows on the tenyear italian hovering at just above 2 . Were just above session lows at the moment, 1. 2337. Pmis have come out in the last hour. Spain came in worse than expected, but still above 50. Italy, above 50, as well. France was worse than expected and below 50 in contraction territory. 47. 9. Germany was at 52. 1. So above 50, but worst than expected. All in all, the eurozone coming in in line with specations. Lets now check in on markets in asia. Sri jegarajah is in singapore with an update. Thanks for that, will. Wee did see a bit of naughtsy, a bit of nice, and we got coal in the stocking for the malaysian benchma benchmark. The shanghai composite is still very much front running the idea that we are going to get some follow through stimulus measures from beijing to consolidate growth heading into 2015. And the market looking at the possibly of the cut in the rrr. Illustrate has been a bit of a choppy day. Nonetheless, extending the gains today. Turnover was at a record level in terms of volumes. This was a high energy melt up for the mainland equity market. Elsewhere, s p 500 up at the close by 0. 8 . Despite the fact we saw very disappointing gdp read for the quarter. Perhaps that is building the case of the minds of investors that we could see the rbi move to cut the benchmark rate sometime in 2015. He is forecasting a period of stability for Interest Rates. They kept the benchmark on hold yet at 2. 5 , a record hoe. I wonder who is going to change that tonight on the basis of the gdp number that we saw today. Thats how we stand. Now back to you in london. Thank you very much. 15 billion pounds for roads, a couple of the budgetmakers George Osborne will announce today when he delivers the autumn statement. Helia bra heemmy has more. We stood here today expecting not to introduce much this morning, to be honest, because the kitty is essentially empty. Theyre growing at 3 this year and weve got very low employment. We havent had the right kind of growth. And the right kind of growth would mean higher wages. That meant that he is likely to miss the decrease in the deficit by about 10 billion pounds. To give you an idea, debt to gdp in this country is now standing at about 79 . When George Osborne came to power as chancellor, he said he was going to try and get that gdp ratio to fall by 2015, 2015. Now that is going to be pushed out all the way to 2018. Remember, we are only halfway through this massive austerity program. There is so much more to be done. Solo we are going to have lots of tinkering around the edges, you mentioned roads, theres going to be more money for stock ups and business and extension in the funding for lending scheme, this is essentially cheap money for banks to lend into the real economy. This will be a few squeaks about property, there will be a load of stuff about tax evasion. Really, to be honest, i dont think he has the ability to offer much in the way of giveaways because the uk economy, although its growing, is still massively indebted. Back to you. Coming up on the show, after a strong year for the ipo market, what does 2015 have in store . We find out when we talk to the vice chairman of the exchange at 11 30 cet. Amazons big boss admits he cost the firm thousands of dollars. How profitable were his successes . We get to the bottom of it. Plus, one type of oil is seeing a surge in price. Find out 340r, coming up next. We are getting into the holiday spirit here on worldwide exchange. Youre looking at the famous Christmas Tree at Rockefeller Center. It weighs 13 tons. When its lit, which is later today, it will feature 45,000 l. E. D. Lights and a large swarovski star on top. It used to belong to a family of christmas elves is what ive been told. Is that from your on the ground reporting . It is. And my good friend, rudolph, told me. Well, i think its a beautiful tree. Ive been there at Rockefeller Center. It will be lit tonight, so something to look forward to. Indeed. On that note, keeping up with the holiday theme, we want to hear from you. Do you think the santa claus rally will continue . Do you even believe in it . Join us here on worldwide exchange. Worldwide cnbc. Com or tweet us cnbcw cnbcwex. The santa claus rally refers to the time after thanksgiving and right before christmas when you see investors go through this window dressing period where stocks continually rise. Will it continue, though . The tocks in the u. S. Market will be hitting highs pretty much every day. Not only do you believe in the santa rally, do you believe in santa, as with snl get in touch with us on worldwide exchange. Now, ugly christmas sweaters are getting bigger every year in pore layerty as well as price. You can get this for a price of 69. 99. Is the trend falling out of fashion . The trend ugly christmas twitter has hit an alltime high. But if 69. 99 is too high of a price, how about rending your ugly christmas sweater. I tend to shun the christmas sweater and just go all out. The ugly sweater is back in fashion according to web sentiment. From thanksgiving so cyber monday, ugly and tacky sweaters were up 29 from the same period last year. So, clearly, there is a lot of interest in buying an ugly sweater. Not this one, though. This one is particularly ugly. Another big story weve been following, other commodities getting attention from trarders. Coffee prices falling to their lowest level in september. The weather should benefit the belt in brazil, putting pressure on futures. Coffee has been a volatile trade over the past couple of months back in october. Now these concerns in south america have pushed the price lower. Yeah. Coffee was an interesting. That said, right now, we are seeing rain. The reason why coffee was rallying was because we had this 18year drought in brazil. There is real concern that it was going to be badly affected. We are now seen signs that rains are coming. This is the rainey season, so we should be seeing it, anyway. And so the markets are selling off in anticipation this is going to help the moisture. But it may be too late if you think about it properly. Does it impact the cup of coffee that i buy every morning . Yes. Some of the roasters, the starbucks, some of these are said to pass on the high cost of the coffee beans on to the retail level. So yes, we would expect at some point you would start seeing these through. But i dont think were quite out of the woods yet. We do fear some damage has been done to the trade. On the demand side, you have robust will be growing much quicker. I thought it was the other way around. If you look at it from a global context, demand is growing very fast at emerging markets. That tends to be robuster. Its the developed countries, like the u. S. And europe where demand for premium coffees from brazil, south america, tends to be high in demand. Bur they account for a slower proportion compared to the fastmoving market. Let move away from that and talk about sugar. Is that automatically bad for sugar prices . In the shortterm right now, the sugar market fundamentals are heavy. What is happening in sugar is that the currencies are impacting in a negative way. When you have a strong u. S. Dollar, it exports rapidly. So you see a huge influx in the market. At the same time, they find the produce of sugar higher. Thank you very much for joining us. Much appreciate it. Kona hack research at ed f mans. Now, what about the price of olive oil . The largest producers are here. And it makes it tougher to produce italian foods. You need olive oil. Prime ministers education policy is high on the agenda in the eu. We debate the issues, next. . Oil prices move higher after a potential cut in saudi arabia if nonopec countries, including russia, join in. The weak ruble continues the slide against the dollar. The uk finance minister attempt to woo Small Businesses and firsttime home buyers in last years budget before next years general election. And were live where were told emerging markets will help spur the long run. And were just Getting Services numbers out of the uk. Weve got a reading of 58. 6 against expectations of 56. 1. So the number coming in for november, 58. 6 of Significant Growth in the Services Sector weaker than expected. Sterling quite significantly off the back of it. Its just near session highs, national for the day. Were just learning that israeli elections will be held on march 17th, this following the israel Prime MinisterBenjamin Netanyahu ordering the dismissal of two ministers and calling for an early election. The dates has now been set to march 17th. Webb seeing the dollar appreciate right now up about 0. 3 . The full story, up about 5 over the past month. Lets have a look at what european markets are doing so far in todays trade. The ftse 1 hurchb is down 0. 4 . Termny is up 3. 2 . Italy is up 0. 5 . Lets have a quick look on forex. The euro has weakened today. That is after the European Service sector pmi came in weaker than expected. France and spain in particular was disappointing. The euro has weakened. The dollar has pushed above 119 the against the yen once again. Those service pmis come in better than expected. Along with the economy, immigration is high on the agenda heading into the election for 2015 in the uk. Prime minister