As they warn that trade in china is not recovering as quickly as hoped. Shares in vw rally to the top of the dax today after the car makers new ceo vows to wrap up a recall of vehicles effected by the emissions scandal next year. Midweek in the markets. So we get to talk about beers, dont we . Its a little bit early but theres a big takeover battle brewing right now. Sab miller and ab imbev. This is the third attempt to try to buy up sab miller. They have a 34 premium to sabs last close when they first made this announcement to the markets. We have gains today up 3 so far. And actually ab inbev seeing good gains as well. Its hoping to get lucky with with an improved public offer for rival sab. They have offered 42 pounds a share for the british beer and that represens 44 premium to sabs Closing Price on september 17th. They rejected the two offers by the way at 40 pounds and 38 pounds a piece but the major shareholder is urging the board to try to accept todays offer and it is going to combine brewing giants, isnt it . Third time lucky. First i was there and now im here. The magic of television. I love that. Like lightning. Well, a combination of these two drinks makers, though, they would create a company that would sell one out of three beers globally as susan was indicating. Raking in half of the industries profits. Together they would employ over 230,000 people worldwide. This is a big deal. Its a really big deal and also were looking at ab inbev. Small brazilian brewer. Small . They were compared to what he they are now. They really upped the ante with the takeovers they have been doing. It makes you wonder what about the regulatory hurdles they have to clear. I was looking at the american markets and americans drink only two beers, really. Budweiser and what else do they drink . Budweiser and miller. So if you combine the two i would imagine the u. S. Authorities would probably take a second look at what this combination whether or not it oversees too much market share in the u. S. Alone. Massive. Have been looking at the european beers and im wondering are we going to have to see more consolidation in the industry. The likes of heineken and some of the danish brewers, some of the good old brewers, whether the smaller ones will be left out and have to make moves as well. A third offer. They went from 38 to 40 to 42. 50 per share and theyre saying you need to act this time. There talking to shareholders. The two largest shareholders in sab are thinking about whether or not this represents enough of a premium but lets get more analysis and Andrew Holland european u. S. Beverage research. What do you think . Doesnt seem like that much of an increase. Youre offering 2 pounds more . Theyre going up in pretty modest increments as you said earlier. 38 to 40, now 42. Most people would say that the next number in that sequence is perhaps 44 and that i think is maybe where were going to end up with an agreed offer. Is it an offer that the shareholders should be pleased with . They didnt react as much as ab inbev would have liked to see them react on the other two offers. What about this time . Its interesting. You mentioned them also going public this morning. Theyre encouraging sab to engage with abi. They havent said they want to accept the offer at the current level but they want the two boards to engage. I think thats telling you that they dont want to miss out. They dont want this deal to disappear. I think we can all sort of speculate on where sab share price would be without the bid and i would say probably nearer 30 pounds a share. So i think the shareholders and all the stake holders are keen to insure this doesnt go away. I dont think theyre going to encourage sabs board to accept the current offer but were getting very much closer to the end game. Im just talking about governments and their views because as i mentioned to you youre combine twog together, one out of every three beers drunk in this world will be an sab miller beer. You try to combine bud and miller the u. S. Government might take a look at it. Nobody expects that bit of the deal to remain intact. The combined market share is about 70 . Thats clearly unseable so the way sabs u. S. Business is managed and owned is through a joint venture with coors. They have 42 of that venture and its expected they would buy the remaining 58 and solve the antitrust issue in the u. S. As mentioned, ab inbev going from a small brazilian beer maker to now the Worlds Largest, especially if the deal happens. Do you think well see more consolidation in the sector . If so, where . I dont think it necessarily follows. Beer is sort of a country by country business so the fact that, for example, abi might have a dominant market share in the u. S. Is of no great relationship vens to for example the u. K. Structure. I dont think it automatically follows but youll see the european brewers looking a little bit distant from the Industry Leader now. The problem with those two is that most of them have controlling shareholders, the heineken small and foundation committed to maintaining control of the company. Its unlikely well see anything in the shortterm. Thank you for joining us. Now shares in tesco have been trading lower after report of a 55 drop in first half profits amid a Challenging Market environment. Now the super market maintained its full year outlook adding its on track to deliver on its cost savings program. So lots of earnings and that includes the Parent Company of kfc and pizza hut. Shares in yum brands down more than 18 in after hours trading. Well, it wasnt yummy at all. Yum brands is mostly a game of chicken in china and over half the revenues come from that china and while same store sales went positive they only rose 3 and they were looking closer to 10 . End of the quarter was better than the beginning. Still that has the company saying earnings per share growth will be well below the previous target of at least 10 . Overall for the quarter yum grew the top and bottom lines but missed expectations. Revenues were almost 7 below estimates. Eps was 7 cents below the street. They all missed expectations except for taco bell but india same store sales were down 18 . Three times worse than the street expected. On the plus side, taco bell had 4 same store sales growth and just opened its new taco bell cantina, a big experiment we hope to learn about more on the conference call. Pizza hut had positive sales growth and Colonel Sanders is in a d. C. Comic coming out. Kfc same store sales up a little bit more than expected. Maybe those Norm Mcdonald online bits in the u. S. Are working. But they are also fighting for your dividend which yum announced will increase 12 for the quarter. Who would have thought Colonel Sanders as a super hero. Stranger things have happened. Lets talk about whats happening with the uaw negotiations and the clock is ticking toward a possible strike with afghan chrysler. The United Auto Workers union sending a notice to the auto maker warning its workers are prepared to walk off the job at midnight eastern time tonight unless theres a new contract agreement. The uaw reached a tentative deal last month but then it was rejected by its members and its unclear whether the union will call a strike at all or some of fiat chryslers 37 u. S. Plants. Trade in italy, were seeing gains of 1. 25 . Staying with auto news, renault and nissan are discussing a plan to lower their stake to down under 40 . The car makers are also considering possible changes to their Alliance StructureGoing Forward and that includes a plan to give nissan Voting Rights on renaults stake. Now volkswagen will start a recall for cars impacted by its diesel emissions in january. Thats according to the companys new ceo. So theyre saying the process should be completed by the end of 2016. Nancy is with us. So the recall, theyre going to start it . Theyre going to be able to wrap up in the course of the year . They are giving us more information. They hope to get it by january, this recall. Theyre optimistic it will be complete by the end of 2016 but we dont have the full details of what it will look like. Most should be Simple Software fixes but also were looking at hardware fixes so that could up the costs. We just dont know exactly what the costs will be but were getting an estimate today from ups, they have cut their earnings estimates for volkswagen. They reduced from 30 this year all the way to 2019. Its not just the penalty and the costs but theyre saying price pressures of course because as part of winning back this trust to get customers back in the show room were likely to see volkswagen try to get more market share from competitors. But some developments today were expected to hear the new chairman to the Advisory Board who was of course the cfo and now becoming chairman, he should give us more information but when the ceo was speaking to employees yesterday he noted and stressed that every single brand will have to be fully examined and suggested that cost cuts were on the way. He did say jobs were fairly safe for now and did not expect to have any lay offs but that could all change. They have to decentralize the company. They want to make it more streams line and easier to communicate. The decision to implemented the devices are down to a few engineers. So theyre saying we have to make sure that communication is all the way through the top. But plenty of questions here still in terms of what the recall looks like and how theyre going to proceed with it. We are expecting the ceo to travel to the u. S. And of course the head of volkswagen in the United States is due to testify tomorrow as well. Thank you very much. All right. Lets check in on the ipo markets and ipo demand. Digicel founded by the irish millionaire Dennis Obrien is citing market conditions. They were expected to raise as much as 2 billion from a u. S. Listing but now its seen a number of listings priced at a discount recently and they dont want to join the action just yet. Meantime, pure storage priced its ipo at 17 a share which is the middle of the price range. It raises 425 million for the company valuing it at just around 3. 1 billion. Shares will trade under the Ticker Symbol pstg. Last week alone five companies which debuted cut their offer price below the expected range. 46 companies with drew their ipo plans in 2015 versus 38 companies with hold of last year. Now 60 of ipos that went public in 2015 are trading below their offer price. Meanwhile the renaissance ipo etf dropped by almost 20 during q3. Its down by almost 10 year to date. Susan, here the other day, the Plastics Division of bio, they were up Something Like 12 or 13 in the first day of trade despite the fact that they cut the size of the ipo considerably because of the turmoil and vw and the dax not helping of course and were looking at german ipos alone. This past recent months cutting their ipo again due to market turmoil. Theyre saying the buildings material makers are spending their plans indefinitely. Part owned by goldman sachs. Its global, right . Its not just in the u. S. I was looking at some of these winning streaks here. We just came off the first five day winning streak in 2015. Dow was up three Straight Days and nasdaq was up four Straight Days but in the Current Conditions and people look at the most successful ipo in the last 12 or 15 months or so and alibaba is trading below its ipo price. It just shows investor concerns out there and the volatility so why not wait for a better opportunity. But is there going to be a better opportunity if the fed is hiking Interest Rates soon . Exactly. People keep talking about this correction that were still in need of. Weve had some what of a correction. Id say. The dax down 20 . Correction territory. So i dont know. I dont know if theres a better opportunity but i guess theyll hold off and get to a point where people feel more confident about the market and you can head to our website as well to get more analysis on the freeze of the ipo market. Theres a great piece right there on our website cnbc. Com is the address. So with these Numerous Companies pulling out of ipos were asking you would you ipo now or wait until a different time and Source Capital from elsewhere . Theres a possibility. You can get money from somewhere else. Email us worldwide cnbc. Com. Its on screen right now. You can also find us via twitter cnbcwex or our personal handles on the bottom of the screen. We got breaking news on this developing story, third attempt by ab inbev and were getting headlines from sab miller itself and theyre saying that theres a proposal by ab inbev on the 7th of october and rejection of a previous proposal are saying the board unanimously has again rejected that as soon as practically possible. Trying to get the rest of that headline but in rejecting these proposals the board sab miller has taken into account theyre saying all possibilities of this take over approach. They rejected the 40 pound approach but theyre looking to consider the 42 pound proposal as soon as practical. They put through a 38 pound, and then a 40 pound offer which theyre saying they rejected and now they got this offer on the table for 42 pounds 15 and our analyst is saying it sounds like somewhere in the region of 44 but it might just work. Theyre going to be formally considering this proposal and meeting and a further announcement will be made there after. But theyre saying also its opportunistic because sab miller says this approach 42 pounds has been timed opportunistically to take advantage of the recently depressed pricing. Theyre smart. Thats what you do. Thats how you make approaches. You have to be opportunistic to make money on the markets. So this is something well continue to track but were heading to break here on worldwide exchange, coming up on the program, leaving a bad taste in the mouth. Find out why yum brands disappointed their investors. We have analysis later in the program. Plus starbucks finally smelling the coffee when it comes to tech. The companys latest move to harness technology. And could a pumpkin shortage squash your thanksgiving plans. Squash. I hope not. Well take a look at crop figures that could leave providers with pie on their face. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Hi, everybody. Welcome back. Were still watching worldwide exchange. Yesterday at the market close youd remember we were talking about how our European Equity markets closed higher up about 1 following on another day of significant gains. We were higher as well. The stoxx europe 600 up by 1 and were looking at our main European Equity markets and seeing quite a bit of green out there. The dax in germany up by 1. 3 . The ftse mib higher by. 4 . Sri joins us live. We havent done the show live. Usually youre through the wall. Yes. But i thought id come and visit all of you and what a better time to talk about asia and japan. The nikkei 225 and Japanese Equities in focus right now. This is where we closed off a trading day up by 140 points. Now a policy from the boj squarely in focus we saw no move by the bank of japan in their policy meet chg wrapped up today but the ball is very much in the court of Prime Minister abe. Thats what he implied in his press conference. Theres a couple of things that i took away from this. He was upbeat about the trajectory of foreign inflation and the broader japanese economy despite fears of a technical recession. He was also talking about a labor market that could translate into wage increases during negotiations next year. So all in all, quite hawkish. He is probably keeping his powder dry to see whether theres already further stresses from the japanese economy. Especially the pressure points from china. October 30th is the next key data from policy susan. Thats when they will update us on longterm growth projections and the inflation. I have it circled on my calendar. Lets talk to an investor and see what he thinks of the boj and the rest of the global action. Joining us here in london, charles, october 30th you have that circle on your calendar, right . So with the boj expected to cut their Economic Forecast but does that mean theyll add more stimulus . They are expanding their Balance Sheet. The highest rate that anyone ever had. So they dont have to make any changes at all. Just by carrying on what they have been doing which is quantitative easing at a rate of 15 to 20 of gdp they will at some stage manage to create the inflation they want and thats when the real trouble starts. No, no, recently in august we saw the first deflationary read and were on the brink of the second technical recession in two years. That doesnt sound hike a healthy economy. No, but the fact is the First Quarter is strong, Second Quarter down, Third Quarter probably same again. Overall there isnt much growth. Of course youre right but when you devalue consistently as japan does you get inflation and also eventually get a little bit of growth and thats what theyre going to get. If they carry on at quantitative easing at 15 to 20 of gdp the real risk is that inflation is going to spiral out of control. Do you think theres lessons to take away from the quantitative easing that japan has done from such a long time now . Were here in europe. Some days were similar to japan and other days were told not at all and its a different environment all together . No. I dont think so. I think that the japanese experience is unique and not at all like europe. The europeans are defensive. Theyre dealing with a unique economy. The japanese are not doing anyt