Welcome to Worldwide Exchange on cnbc. Im wilfred frost alongside Morgan Brennan who is in for sara. Happy tuesday. Our top story the president ial debate. Hillary clinton and donald trump sparring on a range of topics from taxes and trade to homeland security. Under my plan ill be reducing taxes tremendously from 35 to 15 for companies, small and big businesses. Thats going to be a job creator like we havent seen since ronald reagan. The kind of plan that donald has put forth would be trickle down economics all over again. In fact, it would be the most extreme version, the biggest tax cuts for the top percent of the people in this country that weve ever had. Much more on the highlights from last nights debate in a minute. First lets get up to speed on the market action. This morning 10 out of 11 s p sectors in negative territory. For each of the three main indices, banks the worst performers dragged down really by banking performance in europe but also just a continue jays of the volatility we saw last week following no hike from the fed. Though we are expected to bounce a little at the morning, the debate in part cited a reason for that giving a little positive impetus. The dow went higher by 40 points. Quick look at the ten year note. Away from 1. 75 and now away from 1. 6 . Were at 1. 528 a traditional risk off day selling equities, buying bonds, pushing the bond down. European indices turning well. German dax is down about 0. 7 . French dax is down 0. 4 . And the ftse down 0. 2 . Were seeing some losses after opening higher in european equities this morning after the president ial debate with markets largely claiming clinton the winner. We saw bank stocks were gaining a bit earlier. That was a reversal after yesterdays losses. Thats when the stocks dragged lower by the situation at deutsche bank. Asian equities as well, were seeing higher trade, a higher session there. The japanese nikkei is up about almost a point, almost a percent and thats with the yen stronger against the dollar, again on the heels of the debate here in the u. S. Last night, the hang seng is up about 1 as well and the shanghai composite up a . Having looked at broader markets oil prices gained nicely yesterday ahead of this algerian meeting taking place but they are slipping now today following 3 of gains yesterday. Wti down the best part of 2 . The there are, slipped again yesterday. 0. 2 against broader index. As we look at things this morning it is more flat, its not doing much. Slightly stronger against the euro and the yen. Gold prices very quickly for you just to round things down, prices soft. Now back to todays top story the first president ial debate our john harwood was in the hall last night and joins us from new york. John. Reporter we had a consistent pattern of contrast in the debate last night. Hillary clinton was focusing on personal questions about donald trump. Donald trump was going after Public Policy failures over the last couple of decades. Hillary clinton, of course, is the establishment figure. Shes been first lady, secretary of state, u. S. Senator of new york, her husband was president of the united states. He tried to put her on the defensive saying problems with the economy, problems with National Security her fault. She came back hard and one of the issues that she used to do that was to press him on why hasnt he released his taxes. Maybe he doesnt want the American People all of you watching tonight to know that hes paid nothing in federal taxes because the only years that anybody has ever seen were a couple of years when he had to turn them over to state authorities when he was trying to get a casino license and they showed he didnt pay any federal income tax. That makes me smart. Reporter so heres how donald trump came back on that. He looked at the state of the country, the state of the economy, the state of american infrastructure and said to Hillary Clinton, why havent you fixed it . Were a debtor nation, serious debtor nation and a country that needs new roads, new tujs, new bridges, new airport, new hospitals and we dont have the money because its been squandered on so many of your ideas. Maybe because you havent paid any federal income tax for a lot of years. And the other thing i think is important it would be squandered too, believe me. Reporter now who came out ahead on net if you look at the betting markets they said that Hillary Clinton took a step forward towards the presidency last night. One indication that donald trump did not have the better of the exchanges last night transparent complaints of republicans that certain topics didnt come up sufficiently, benghazi. Email wasnt pressed sufficiently on behalf of either moderator or donald trump himself for that hart. Rudy giuliani came into the spin room and even suggested that he might recommend that donald trump not participate in future debates. So this was not a step forward for donald trump. He needs to expand his base of support. Hes behind Hillary Clinton. And the question is can he use the next two debates if he decides to participate to make up that ground . John, you were talking yesterday about the gorebush election and the way bush used that first debate to close a big debate he had in the polls. By the second he was two points ahead. Was trump needing that sort of blowout successful performance which whether you say who won slightly last night he certainly didnt win by a big margin. Was he needing that type of performance and failing to deliver it. Is that a big blow to his campaign . Reporter i wouldnt say so. He didnt need dramatic movement. He narrowed Hillary Clintons advantage in the polls. What he needed to do more than anything else was to show a Critical Group of voters who have been waviering, who dont like either one of them that donald trump is worth the risk of being put in the oval office. He needed to display he was more president ial in temperament and knowledge of the issues. I dont think he was able to do that. His answers on policy were rambling and sometimes off point. And on temperament he was reduced at one point to saying, asserting, i have a great temperament, my greatest strength. If you look at the polls 60 of the American People say he doesnt have that temperament. He needs to persuade people rather than simply asitter. I dont believe he got that job done last night. John that temperament comment sent social media flying, buzzing in terms of that commentary. But as someone who has been covering these types of elections for a while what was the most surprising or unexpected part of last nights debate . Certainly this has been a nontraditional election so far. Was there anything that was surprising to you in terms of that last night . Reporter Hillary Clinton did not surprise me. I expected that she would be very well prepared and i expected that she would try to keep an even keel throughout the debate not rise to provocations from donald trump and she did not do that. She tried to do a good job of smiling, of not having reaction shots to when donald trump was talking that indicated that she was pained or irritable. Donald trump surprised by by the extent he became exasperated by the conversation. He came out and said i never admitted wrongdoing. I think the tax discussion was a challenge for him when he was pressed by Hillary Clinton on why he had not paid some contractors who worked for him. He said well maybe they didnt do a good job or why he used bankruptcy laws. He said i used the laws of the united states. They appeared to be a candidate he appeared to me a candidate who has made uncomfortable by scrutiny and the fact that he showed that was a surprise to me. In the beginning of the debate he came out and was a little more supple than he had been on some issues. When he pressed her on trade and started talking about economic relation with mexico and made a reference to mexicos value added tax and that contributes to unfairness in the economic relationship that looked as if he had been briefed more heavily and ready to discuss in more detail policy than he had been. But that was not borne out in the rest of the debate. John, just quickly to round things off. You mentioned trump didnt successfully appear president ial enough and clinton came across as more statesman too. Could that work in trumps favor given how much this election is about being part of establishment or not being part of the establishment . Reporter look its very hard to predict how an entire electorate will view the debate performances. However, i do think the fundamental shift that donald trump has faced in the general election is that he built himself a base in the primaries of noncollege educated white voters who respond to his core message about economic declierngs about cultural change, and are inspired by that notion. But theres a different set of people that he needs to reach in the general election. They are suburban, more upscale. They are White College educated, college graduates. And they want a more display of gravitas, of sophistication of fluency in policy and i think donald trump didnt give him that last night. Doesnt mean he cant do it in the next couple of debates but i dont think he got that done. John thank you very much for that analysis. John harwood in new york. That brings to us our twitter and facebook question of the day. Has the debate made you decide how youll vote. The options yes, clinton yes, trump or no still unsure. Get in touch with us throughout the show. Well bring the results of that later and continued coverage on cnbc today of those debates last night. The labt department is launching a review of all complaints of wells fargo in recent years. In a letter to senator elizabeth warren, tom perez plans to conduct a top to bottom review. Senator warren has called for a revi review. Tomorrow the House Financial Services committee on thursday the House Financial Services committee will hold a hearing on wells fargo and question the ceo john stumpf. Perry capital is calling it quits after 28 years. The firm which was found by Richard Perry in the late 80s says it will shut down its Flagship Fund. In a letter sent to investors Richard Perry says he believes in the firms stretch, industry and market headwinds against the firm have been strong. Perry capital has recently seen its assets under management decline from 15 billion in 2008 to 16. 6 billion in last december. Perry isnt the only one suffering from change. Investors have pulled more than 50 billion from hedge funds this year alone. Coming up, oil prices, losing steam this morning after iran plays down expectations for a production deal. Well get an analysts take next. Heres what everybody will be talking about from last nights debate. We have no leadership. Honestly that starts with secretary clinton. Two minutes on the same question to defend tax increases on the wealthiest americans. I have a feeling by the end of this evening ill be blamed for everything thats ever happened. Why not . Yeah, why not. [singing indistinctly] but i learned how to fly. Just to come back in a new disguise, and be the hero ive always wanted to be. Good morning. Welcome back to Worldwide Exchange. Yesterday 0. 9 declines for each of the major indices. 10 out of 11 territories banks worst performers. Today were expected to bounce back but we lost steam in the last hour. We were looking at about 50 points on the dow to open higher were now look like more 18 or 20 points. Europe similarly had been higher. It pared some of its gains. Lets look at the mexican peso being cited as the most notable market mover off the back of the debate. Big move. Stronger for the peso. Weaker for the dollar. 1. 4 in the day. That really came overnight with asian currency traders moving that currency pair as they applauded the debate performance by Hillary Clinton, seen as a positive for mexicos economy if donald trump doesnt take it. Just pared a bit in the last hour or so. Quick look at oil prices. They gained 3 yesterday. Significant gains coming in to the oil meeting in algeria but lost some of that overnight and this morning, 1. 6 . Wti 45. 19. Opec ministers are meeting at a conference in algeria but traders saying opec and nonopec minute serious to cut is fading. S joining me now is an oil analyst at barclays. Thank you for joining us today. Lets talk a little bit about this meeting and the fact were seeing oil to pare those gains we saw yesterday in trading. Theres been a lot of talk of a production freeze. Saudi arabia near or at record levels. Russia at record lechls. Iran ramping up near its presanction levels. If we get talk of a production freeze does it matter. How much of a difference does it make . It doesnt matter, actually, because as youve said all these producers are producing close to record levels. If anything, i would say saudi arabia needs to cut rather than freeze because if they do hold on to their production at 10. 7 Million Barrels a day which is what they are producing at the moment given local demand in saudi is falling, crude burned in the summer is going to fade over the winter they will export a lot more if they were to hold. Yes, the short answer is we need a bit more than a freeze if we really need fresh impetus to prices. Theres been a lot of talk about a lot of focus on saudi arabia, russia and iran, but libya and nigeria have been ramping up production as well. Thats the worrying bit because libya has finally started loading a few tankers. Still a very volatile situation in terms of sustaining that production and still very much away from the 1. 6 barrels they did. Nigeria is also getting some barrels in through the last few weeks. So we think that these two are the biggest risks for the oil market to the down side. Libya and nigeria over the next six to 12 months even if opec does agree to a freeze which we think is very unlikely. So several risks on the horizon. Opec doesnt know how to manage production if these two producers were to come back online. On top of that iran making comments earlier today saying they need 4 Million Barrels before they go into a freeze. We do look for more supplies coming through from opec if they dont agree to a freeze. Bringing that all together whats your conclusion for prices for the rest of the year because most of the summer whether its fed factors or opec factors we have maintained quite a range between 40 and 50. Yes. Well, we think prices will average higher in q4 with or without an opec freeze because we see the first top draws in the First Quarter of this year and thats after 1 months of consecutive stock bills that weve had. And, again, this is even if we see a bit from libya and nigeria, were seeing sharp slow down in production from the u. S. And other nonopec countries and we see higher demand as well going into q4. We dont think demand is the cause of concern we think supply, if anything, would be a risk for these forecasts. We see 53 a barrel on average for q4 and 60 for 2017. Prices this morning 45. 3. Thank you very much for joining us. Coming up the president ial debate wasnt the only game in town last night. Highlights from the nfl coming next. As we head to break heres the national forecast. Happy tuesday. We got a couple of rain makers out there. One is a front moving through the east bringing showers for boston, new york city and d. C. In the south it gets stuck and keep showers in the afternoon. Atlanta only a chance the front may come through dry but bring some nice temperature changes behind it. Chicago in the 60s. Another rain maker that will bring scattered showers that will stick around for a couple of days. Also some showers in florida today, temperatures in the mid80s. Heat is still on across the west. Not as bad as yesterday where we hit all time september record highs across southern california. A bit cooler today. Mid90s for los angeles. Thats your forecast. Worldwide exchange continues after this. O welcome back to Worldwide Exchange. Quick look at futures. Still in positive territory but only slightly. We lost some momentum this morning. The debate gave reasons to celebrate. Gave reasons for the markets to gain both in asia and europe and u. S. Futures market. Europe slipped a bit in the last hour as u. S. Futures. Less than 48 hours after Miami Marlins pitcher Jose Fernandez was killed in a boating accident the team honored their teammates memory. The marlins returned to the field last night in a home game against new york mets. The entire team wore fernandez number 16 jersey. Marlins and mets exchanged hugs after the national anthem. Fernandez was skefded to be starting pitch earthbound was not only the marlins ace but popular in south florida. From the baseball diamond to the football field to division rival squaring off on monday night football with Atlanta Falcons visiting new Orleans Saints new orleans had a chance to make it a one score game in the Fourth Quarter but a pass by saints quarterback drew brees intercepted by jones that heads in the other direction. Jones goes 90 yards. The falcons beat the saints 4525. Coming up, this mornings top stories and Market Reaction to last nights president ial debate. But first as we head to break, if you fell asleep early heres one of the more heated exchanges. Just go to her website. She tells you how to fight isis on the website. I dont think general Douglas Macarthur would like that too much. At least i have a plan to fight isis. No, no, youre telling the enemy everything you want to do. No were not. Youre telling the enemy everything you want to do. No wonder youre fighting isis your entire adult life. Ow. Were talking within a 1 difference in reliability of each other. 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