perception of so many international investors who have to follow indexes. spain remaining investment grade. only just, but still avoiding junk. >> still a negative outlook. >> but the fact that it is there, that's caused many of the accounts, the big investors who are sitting on the side saying okay, we know that spain has rallied. we've missed that rally. we're not going to get involved because we fundamentally doubt spain, but now this affirmation coming in means they have all had to go oh dear, capitulation, catch-up time. >> are they choosing to, or do they have to? >> if they want to match the indices they benchmark themselves, which still contains spanish debt, many of them are expected to go in. on the other side, though. we know that the spanish market has changedmassively. only 20%, maybe slightly more, of spanish bonds are now held internationally. most of the market is repatriated to spain. it's not a fundamental belief that spain is going to be fixed. >> an official bond buying as well. all of that is presumably good risk for appetite generally. bad news for bundes. >> wh

monetary authority has been intervening in the currency market. at the same time, bank of spain now seeing third quarter gdp down a quarter percent, down 0.4%, 1.7% year on year. i'm not sure if that's a downgrade. i'll come back to that. but let's turn our attention to china. strong yuan buying and suspicions pboc may be intervening rallied more than 2%. we were up near post-revaluation highs. this as china is also pressing ahead with measures other than monetary policy to support its weakened domestic market. today new rules announced to allow insurers to trade futures and derivatives at home as well as broaden their investment choices abroad. at the same time, the pboc is continuing to flush the markets with cash. pumping $14 billion by reverse repo offerings today and tomorrow we'll have the latest gauge on the growth track when hsbc releases it flash data due at 3:45. so where does this leave growth in asia? joining us first on cnbc is managing director for general asian development. thanks very much indeed for joining us. you down graded your asian growth forecast to 6.1% in 2

billion. they continue to do business in italy and spain. back to you. >>s they' interesting, putting their exposure to europe? >> they had 6 billion last quarter so it is up slightly but it's not in the range of worry here. >> kayla, thank you very much, kayla tausche. >>> when we come back breaking numbers on inflation, a few minutes away from produce are price index numbers for september. so far the equity futures have been indicated higher. you can see right now that the dow is at this point still up about 40 points above fair value. the tea party, their take on paul ryan's performance last night, freedomworks co-chairman dick armey will join us in about ten minutes. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on

spain to ask for aid. president draghi will be holding his normal news conference at 8:30 eastern time. so if you thought we didn't have enough to talk about today, just wait. in the meantime, in corporate headlines, 3m is dropping it effort to buy avery office. this decision comes about a month after regulators raised antitrust concerns over the proposed yield because they were worried about sticky notes. that's right, sticky notes. they were worried prices would go up for post-its. avery says it will continue to pursue a sale of the business. also watch shares of hewlett-packard today. this is the big one. the stock drop to go 59 year low after the company warned of an unexpectedly steep earnings slide in 2013. this is huge. revenue forecasts to fall in every business division except for software. ceo meg whitman blaming turnover for dragging out ph's turn around. she'll be joining our friends on "squawk on the street" later this morning. but this is a killer. hewlett-packard, dell, amd, all closing at multiyear lows. because of this guidance that comes through, hewlett-packard

have problems. and also warning that spain will likely miss its targets in 2012 and 2013 and debt will jump to more than 90% of gdp as it recapitalizes its banking sector. joe. >> i'm looking at an interesting piece on the imf. what got me is that it will slow to 3.3. and what that shows you is the contribution from developing nations. >> china. >> well, yeah. and we'd do anything for 3.3. we would cut off our right arm for 3.3. >> i was a little tired when i first read it, and then i went is that the world, and i thought it has to be because the number is so high. >> the world did 5.1 in 2010. that's the way it can grow. >> you know what's frightening is the assumptions they put into this. they assume congress will take action to avoid the fiscal cliff. so even this level may be a little high. >> when they say a global recession risk rises, does it have to go negative to be called a recession globally? >> good question. when's the last type time the g went negative? >> if they're actually forecasting negative, then you can imagine how negative that would actually have to be. but

yields in spain and italy nudge higher as well. italian yields 4.89%. on the currency markets, euro/dollar got down to 1.29. just off those lows that we hit an hour or so again. dollar/yen. auss aussie/dollar is slightly higher. we'll take a short break. still to come, volvo has missed estimates that it's warning a flat demand in 2013. we will be out in stockholm to speak first to the coo. he'll be joining us in 20 minutes. we'll also be looking at what the fed might be talking about and all those corporate results state side from the united states. plenty more still to come on today's edition of "worldwide exchange." >>> this is "worldwide exchange." the clouds are darkening over the german economy. flash pmi data also points to further weakness across the eurozone. contraction too in china, but the manufacturing sector does signal a turnaround. it's a three-month high in october. new orders improving. investors like facebook's third quarter figures. shares jumped 14% after hours. the company shows it's able to make some money off mobile devices. it's now banking on sales of its la

. >>> in is "worldwide exchange." these are the stories from around the world. spain's unemployment rate rises 1.7% in september. further weighing on market sentiment as rumors circulate madrid could ask for a bailout as early as this weekend. australian central bank has a 25 basis point rate cut, throwing up red flags on fallen commodity prices. and germany's biggest ipo does get off to a pretty good start, shares trading higher at the open. plus banks waiting a report expected on to recommend splitting retail and investment banking. we'll speak to the man in charge on cnbc later today. >>> kelly is off for the week, so jim is here with me. >> thank you. >> need extra reinforcements. and they don't come any better than having you on this morning. we had spanish unemployment out this morning and i know we have to talk china and australia, but on your travels at the moment, what do you think of the rather nonlinear as you put it in your notes, this nonlynn krer progress where we're at, the ecb waiting. economics is getting worse. >> well, actually, let me start with the last point yo

reports that spain will request a bailout. the spanish prime minister joked that news agencies either knew more than he did or that they were, in fact, wrong. meanwhile, moody's rating agency said it will publish a review into spain's credit rating at some point this month. all spanish tax revenues have jumped significantly from precrisis levels due to a high incide incidents -- and seeking profits abroad as domestic demand wanes. just over $16.5 billion euros from corporate tax from the almost $45 billion collected in 2007. let's get out to julia in madrid. this was always going to be one of the challenges for the rajoy government to keep a handle on revenues as it tries to cut spending and increase taxes. >> reporter: absolutely. yes, he's announced the billions worth of austerity measures, but to some degree has tried to protect businesses. he understands the issue and the importance of the tax receipts. we're talking about an economy with a 25% unemployment rate, above 50% for young people. it's not easy for these businesses. you only have to look at the pmi readings that we've ha

the moment. bundes still attracting a lot of attention. we've been waiting on spain to fishlgly l-- officially ask fo that aid. nonetheless, we're not seeing too much pressure on the periphery, 5.75%. let me send it back to you. >> thank you very much. the first presidential debate. john harwood is on the ground in denver. he joins us with the latest nbc news "wall street journal" poll. it looks like things are starting to even out at least a little. is this the bounce that president obama got after the democratic convention coming back down? >> well, i think it's the bounce from the convention and the surge that he got on top of the convention with that 47% video, so there is some good news for romney. not only our national poll, but also in the swing state polls that we do with "the wall street journal" and maris college. take a look at the numbers. first of all, on the national basis. president obama among likely voters leads by three points, 49 to 46. that's down from a five-point edge that he had in our poll just about three weeks ago. if you also look at the nbc "wall street

spain and looming fiscal cliff in the united states threatening our economy. he is still bullish on u.s. equities but warns the stock market could lose 5% to 10% of correction in the final months of the year, adding credence to your october concerns in. >> no, this time bernanke has our back, our copilot. [ horn honks ] hey, it's sandra -- from accounting. peter. i can see that you're busy... but you were gonna help us crunch the numbers for accounts receivable today. i mean i know that this is important. well, both are important. let's be clear. they are but this is important too. [ man ] the receivables. [ male announcer ] michelin knows it's better for xerox to help manage their finance processing. so they can focus on keeping the world moving. with xerox, you're ready for real business. [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or turn 30-million artifacts... ♪ into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. >>> it's a merger monday

minister of spain and the first rating agency to take that country's debt to junk status. >> our road map starts with signs of hope in the labor market. days before the september jobs report on friday, could this juice the market ahead of the first presidential debate tonight? >> adp and deutsch deal created the biggest wireless deal behind sprint. >> could the chain jump at a steal with a decade low? >> it's coming. the ipad minuting components rolling off assembly lines in asia. perhaps just in time for the holiday season. but, first, futures are edging higher after the latest data from adp showed 162,000 private sector jobses. fewer than the following month. the adp number sets the stage for the jobs number which is expected to show nonfarm payroll boosting by 118,000. jim, in the journal today it says, bald is powerful. so you can talk about jobs is whatever you want today. >> take your pick. >> i go to the barber every couple weeks. i've been saying this. look, it's time to get rid of everything. >> really? you want to take it down? >> this article may be the defining point for me. t

right now. today, the european bailout fund is coming into effect. if spain keeps going along the path, looks like it's going to ask for a bailout probably this month. things have been notably calmer as a result of that. how about q4? that's the issue, this trough question. earnings are expected to be up 10% in q4, particularly a turnaround in financials. everybody knows the numbers have been slowly coming down. but suppose we're only up 5% in the fourth quarter? we're still going to see an expansion this year. earnings will still be up, 2%, 3%, perhaps even 4%. i guarantee some of these people are going to surprise on the upside overall. 2012, we'll get 3% to 4% earnings growth. perhaps 2013, that's the big issue right now. depends on what side of the global expansion you're on. i've heard some call for 20% corrections. i don't normally stick my neck out about these observations. i could see it going to $13.70. but there are buyers out there at this level. people are looking to get into this market lower. and by the way, even if we end with a somewhat lower q4 than people anticip

, about spain, a and that will take front and center stage this week. merkel is headed to greece. and next week a big meeting of many of the eu ministers. so you'll see a lot of concerns about what's been happening there. shanghai back open again, it's closed down by half a percentage point. in japan, the nikkei closed up by about 0.4%. and in core rearc the kospi higher, as well. part of this is because of the world bank and what it's saying about china. take a look at the dollar. it's up against the euro. also up against the swiss franc. the thought is the u.s. is withstanding the global recession that could be on the move around many parts of the world. it take a look at gold rises. they've down sharply. >> would he feature football game and the fight song, did notre dame. >> you're right. on friday. >> 41-3. >> chuck todd, we have to get him back on. >> he called in sick today. we didn't bet anything. >> yoe bjoe bet chuck todd and him 13 points. >> first couple of sequences that miami had, two just the guy dropped the ball. it hit him in the hands. >> can chuck call in? >> yeah,

mocking it. >> she want us just to talk, no music. >> let's get to spain and its finance minister. sparking laughter from an audience in london today, why he told a group of academics that his country doesn't need a bailout at all. that's interesting. the minister is arguing that madrid's reform program right now is already sufficient to stave off a full sovereign bailout and the ecb's bond buying program would suffice. to help spain recover. that's apparently how it started, with -- you can imagine -- that's bad for confidence of the minister of spain where he's telling an audience, we don't need a bailout and then you hear a whole auditorium laughing. morgan stanley is warning that more pay cuts are coming. in an interview with the ftc, james gore man said more job cuts and smaller bonuses are planned next year as the bank attempts to boost shareholder returns. i'm handing this back to you. you deal with it. this is your idea. >> this is how we do it. we'll pretend, we'll play along, in corporate news, sony is halting sales of it experian tablet a month after its launch. there a

expected as the pressure on spain to file for a bailout eases with borrowing costs a little lower this morning. markets looking ahead to tomorrow's jobs number and the start of earnings season next week. >> it's back. facebook hits the billion user milestone. 1 billion monthly active users as of september 14th. this as its ceo does the rounds, appearing on the cover of "businessweek" and giving nbc an exclusive interview. we've got some of that exclusive later on in the show. >>> and how bad can things get at hp? meg whitman knocks down guidance, sending shares down to nine-year lows. we'll talk to her directly in just a moment. >>> the first presidential debate is now in the books. mitt romney went on the offensive, pushing his pro-growth agenda while taking president obama to task on his jobs and economic record. president arguing romney's plan on taxes and the deficit are the same types of ideas that caused the recession. here's what romney had to say about tackling the ballooning debt. >> i think it's not just an economic issue. i think it's a moral issue. i think it's frankly not

. >> it is big. we're back to where we were last monday. remember all the concerns prior to spain rioting and maybe this thing wasn't going to go smoothly? wouldn't go smoothly? we have sort of come back. remember the markets were up even though asia had very important numbers. our numbers were up the minute that european markets opened. the euro was strong and s&p futures up notably over night and they were already up 6 or 7 handles and take a look at the s&p 500. we open to the up i'd and then clocked the ism numbers came out for december and let me show you the quote that got things going. the ism has useful comments that came out and said the panel reflects a mix of optimism, optimism over new orders beginning to pick up and consider concerns. it was the any orders to moved things to the positive side. here is the risk on sectors financial, energy, industrials, mixed tells to the upside and a bunch of stocks from the dow jones at new highs. ibm and travelers, historic highs and multi-year for general electric, home depot also a new high. you will see the drop last tuesday. we

of thing, the huge moves. we are seeing yields move higher for spain, italy, and the uk, interestingly enough. 5.88% there is the level for spain. it is by the day inching closer to that 6% level. italy, 5.12%. bundes are still sitting in the one to mid 2s. >> apart from euro dollar, which is lower. it was above 1.29 yesterday. not the biggest moves. elsewhere, pretty much where we were, as i say. now, the eurozone needs a banking union to overcome sovereign risks. that's what the ecb governing council member said in japan today. he is also the governor of the bank of france, says the region needs to decide on a framework by the start of 2013, although he's admitted it might take a little bit longer to decide on the details of that framework. cyrus is managing director for asia pacific at idc financial insights and joins us for more. what are the implications if we do manage to get sort of a single banking framework in the eurozone? >> well, i mean, there is already a single banking parameter within the eurozone. if you look at the basel 2 and the basel 3, that originate

. reuters reporting spain is ready to request a rescue as early as next weekend, but german officials reportedly saying madrid should hold off. the news is creating a lot of confusion among investors and we'll check in with ross westgate in london in just a few minutes to talk about that. in asian market news, australia central bank cutting its main cash rate by a quarter point today to 3.25%. policymakers say the growth outlook for next year looks a little weaker while inflation nation likely to remain contained within it target. and on the u.s. economic calendar today, monthly auto sales. analysts are looking for an annual sales rate of about 14.5 million new cars and trucks for the month. about the same as august, which is the strongest month of the year. among the katla tests, low interest rates, high trade-in values and new models. joe, can we buy and you new cyo new car? >> i've done that. not for me. we went big. we don't put a lot of miles on the car. >> how big did you go? >> i don't think you can get any bigger. >> we have a suburban. >> this is a suburban from -- this is li

country. >> oecd chief tells cnbc spain's prime minister isn't asking because there's a real fear leaders would possibly say no. >>> and investors hang up on japanese. it may be too costly. >> plus jpmorgan and wells fargo are set to report third quarter results. >>> this is the last trading day of the week here. and we have the i-8 report out that sees pricing easing. they have lowered their growth forecast, though. and it says iran exports hit a new low in september. so there's obviously a bit of a difference between what's going on in the short term forecast and the longer term, as well. so they're looking at annual supply growth of #.5 million barrels a day, average oil demand growth of 1.1 million a day. so over the next five years, sluggish economy will slow oil demand growth and more oil put into the economy. nevertheless, nymex is up because they talk about as well this morning spiking higher anyway. and we've seen brent surprisingly up near 116, 15.60, as well. so the iranian exports hitting a new low in september may just be helping that spike up. >> iea says supply risk

to fix the u.s. economy. waiting on spain, the ecb expected to hold steady on rates. country's president tells cnbc that europe's policymakers must remain focused. >> if we get bogged down into what was meant by the june agreements and waste time on this kind of discussions, then it's much less likely that a coherent system will emerge. >> madrid continues to put faith in the hands of private investors while finance minister heads to london to raise funds for the country's bad bank. and india's crucial services sector grows at its fastest rate in seven months, while the government gets set to take another swing at boosting it through foreign investments. thanks very much for joining me. anyone that's missing ross, he'll be back in tomorrow. but for now, you're all mine. . plenty to come on the next couple hours of the show. lots of guests to help us figure out what's going on. we'll get a view from sydney about cautious shoppers. borrowing costs are expected to fall. we'll bring you those results from madrid. and we'll head out to malaysia for an exclusive interview with the co

. bond space, we are seeing rally continuing. spain's yield now 5.3%. italy, 4.73% for the ten year. in the meantime, gilts actually 1.9% rallying, too, but that yield has moved up quite a bit. and the german bund has flipped positive. people start to price the eu sticking together pretty much in an inflationary as opposed to deflationary outcome. likely to continue to be felt there on the german bund. and i'll leave with you a look at the currency space. euro-dollar over here despite what we have seen in terms of the bond market is more consistent with what we're seeing across equities. down about tenth of a percent. still 1.3049. and people looking at the yields that we're seeing and saying we could be at 1.35 before long. that's a far cry from the lefts of 1.10, even of parity. back over to you guys. >> did they have a chipotle in london? when i was there, that was the one thing that they didn't have. >> i said the same thing actually when i got over here. but they've added quite a few lately. there is a chipotle, one that opened about ten paces from me. so i see that one quite a

mentioned maybe a libor issue. but there was another issue around 7:30 a.m. eastern this morning, spain considering tapping into eu credit line and of course that makes the safe harbor trades less safe and gave euros a big turbo boost. look at the intraday of the euro currency popped from 1.30 to 1.305. look at bund rates they popped close to 4 to 4.5 basis points. if we want to look at the epicenter, spanish stock market it popped around the same time. it doesn't mean they are is going to ask for it and maybe this is a roundabout way to tap the bailout fund but there's so much anxiety about that, is there enough votes? germany may not go along with the program. very strange situation. very fluid. we can clearly see what the markets thoughts are on it. for the data today, industrial production, vast utilization looks good. we're still considering the aftermath of yesterday's retail sales. how the iphone and gdp and everything may be affected. for the moment we're moving towards recent top of the range on interest rates but if you take a step back maybe the biggest trade continues to be

. >>> s&p down grades spain to just above junk status saying not to emerge capitalization. >>> christine lagarde calls for developed nations to do more to get their budgets in order, while urging greece more time. >> central banks take action on slowing grow global growth. economy with waiting demand. >>> plus the stakes have been raised for tonight's debate. new polls show the race for the white house has tightened. >>> welcome. it's thursday here on "worldwide exchange" and spain now holding above junk status. >> raising interesting questions as we'll discuss later in the program about investors' ability to maintain exposure to the sovereign. >> s&p move was expected, but it came after the euro group meeting. people now looking to moody's. if spain goes to junk, what does it mean for corporates. >> how many companies have we seen that are big, healthy companies being penalized and may not being able to have people invest in them because their rating is linked to the sovereigns rating. so whether they start to try to detach those or just the pressure it puts on those comp

now, but opening the door to more action later this month. also, spain's finance minister says the country does not need a bailout facing a skeptical crowd in london, but could rajoy be cornered by the leaders of france and italy at a meeting today? i've been away for a couple of days and thanks for whoever filled in. on today's show, planning more sanctions on iran. we'll look at the worsening impact on the panel of experts. larry fink said the u.s. housing market is inching closer to a rebound. we'll hear more from that interview. and can the united states dodge a financial cliff in we'll speak to a guest who has clear ideas of what needs to be done. first it's about the jobs report, unemployment report due out at 8:30 eastern. economists think yet another month of modest job growth, but not enough to make a dent in unemployment. dow jones forecasted nonfarm payrolls for an increase of 118,000, it was 96,000 in august. unemployment seen holding at 8.1%, it's judgmented that job gains of 150,000 or more are needed to bring down unemployment. how long will they be doing this for th

always lower today in spain than we were yesterday. we've had a look at a lot of the stocks of course. ten yield spanish yields 5.5%. some other companies we haven't mentioned reporting today, likes of unilever and wpp. unilever up 3.2%, numbers coming a little bit better than expected. talking about gray swans dwa, four gray swans, not black swans. we'll get into that, europe, china, hard/soft landing. credit suisse we've talked about and daimler with a profit warning last night. stock down 3%. currency markets, euro-dollar hit 1.2929 this time yesterday. it's back to 1.30 as you can see. dollar yen back over 80. aussie dollar got a boost yesterday from china pmi numbers. sterling-dollar up to 1.6084. we'll be getting the latest gdp numbers out for the third quarter for the uk and is expected to show uk is out of recession coming up in around 15 minutes time p abo. it could be more. david cameron suggesting more good news to come on the economy. so we'll keep our eyes on that, as well. right now it's time to recap the asian trading session. >> some selling pressure today. the pboc ha

on spain and italy as ever. well capped below 6%. italian yields have risen over the course of the week. euro-dollar 1.2929 is where we started it at the beginning of the week we're pretty much back there. sort of what we hit a few days ago. aussie dollar, a little bit stronger yesterday, just coming back at the moment. and sterling-dollar, can it hang on to the gains. 34re plenty to focus on in the u.s. presidential election getting closer. more business leaders making their views known. and we caught up with jamie dimon while on a business trip to mumbai. we asked him to weigh in on the state of the u.s. economy and the november vote. >> the underlying strength of the economy is actually pretty good. corporations, middle market side companies, consumers are in better shape, housing is turning. it isn't as strong as we want. is it possible the election changes that, it is, but i said also tell you that it's possible the economy could do very well, very badly regardless. what's important is good pl policy. we need good upon city in the united states. simpson-bowles type deal with m

from the french president, and there were no signs that actually spain was about to ask for a bailout and that's really what the imf is in part driving at. and there's chief financial council that said he would welcome the requests from madrid. meantime, saying next week's big summit of 27 leaders, but for many people, that may not be enough. in many senses, at a corporate level, we have a microcosm of what is happening at the national level. did you see that the $45 billion potential merger between eads, the maker of air bus, and the dba systems in the uk fell apart. ultimately the germans rejected. they couldn't do the politics of it. if they can't push down the national interest to bring together these people, how on earth can you bring together 17 countries with 332 million people and push down the national interest? i'll leave that kind of there. you'll see the eads stock is slightly higher because it's been refreshed on the two-month chart as a result of the announcement of that deal while bae systems was doing slightly better. in the uk today, its stock surged 6% on a r

. ibex 35 over in spain shedding about 0.4%. we want to know your hurricane stories. you can e-mail our tweet us. joining us now is stewart hitch arrested son, rmg wealth management. good morning. your initial thoughts here as we look at the impact of sandy barreling down on new york. we know a lot of trading is shut down. are people routing trades through london? >> you can try to separate the fundamentals from liquidity. fundamentals won'ten drastically changed in the medium term, but if markets get through calmly and people don't panic, we'll be back at the end of the week. if there is panic, liquidity could dry up and could be a crazy couple of days. >> liquidity issue is actually an important one. we've seen others sort of recommend clients steer clear of markets for a couple of days. what's interesting, that will just exasser balt the issue understandably saying people just come back towards the end of the week, but what does it mean for those who may be trading today? >> spreads whether be wider. and if you don't need to trade, staying out of the markets is probably the right thi

is the crisis in the eurozone. i asked the chief economist at the fund about whether or not spain needs a bailout. >> at this stage the interest rates that they face are low. the question is are the interest rates low because investors expect spain to ask for a program, in which case spain will have to ask for one, or are they low because spain is doing all the right things and investors are not worried. so spain, if you look at what they're doing, they're taking all kinds of fiscal measure which is are courageous. so they're doing the right thing no question. >> also noticeable in this economic outlook is the downgrade in the forecasts to some of the key emerging economies. for example brazil and india. the fund says brazil's economy will grow at a slower pace than the united states and lowered outlook to below 5%. i had a chance to speak about you who he feels the indian economy was shaping up. >> something common to brazil, china, india. and the effect is very strong when advanced countries slow down, exports really collapse. so the effect is there. and then there's a bit more.

give and how they'll get spain and greece out of the mess. so it's a big among. >> meanwhile glencore shares are down after the news that ex-strata is backing the mega merger offer. they'll walk away with 9.6 million pounds severance pay. is the pay issue going to get resolved? >> could well be a sticking point. they've made some progress recommending the 2.8. so they're going for the 3.05. i suppose now having split the two, they can't be accused of trying to railroad the retention packages. a lot of shareholders will need more detail on the retention packages, who actually is involved, and particularly the likes of black rock and of course obviously they can still scrap the whole deal. >> mick davis will be walking away. how will shareholders view that is this ? >> looking at a pretty good deal for him. shareholders i think will be looking at that, but they also i think will be looking at the wider poll of who the others are, how they've been paid to simply turn up. not so much of issue of davis, i think it's the others. >> a vote structure is unique. corporate structure would be fa

around. >> all right. more to come from you. protesters have taken to the streets across spain. saying unless the government holds a referendum on the budget cuts, they will call a nationwide general strike in november. last month rajoy unveiled 13 billion euros in fresh austerity measures. more protests also expected in athens storm when angela merkel arrives for her first state visit in three years. it comes after another weekend of failed talks between the troica and the greek government on the cuts required to release the next tranche of bailout money. speaking to german tv, the finance minister schaeuble says it's not a sure sign aid would be received. >>> and silvia is in luxemburg. so what can we expect on this never ending magical mystery tour that is the eurozone debt crisis and policy making, what is the stop we're at today? sgrt ca >> the caravan moves on, make haste, make haste. first it's a meeting of the esm. we've waited for that long enough. so the esm as of tonight should be operational. that of course is the first little duck that needs to get in the proverbia

higher yields for italy, in the cash market, 5%, and spain, they've come back down to 5.78%, well below 6%. that's where we stand. back to you guys. >> ross, do you see this nigel dude from yesterday, the guy from the uk. >> he's fantastic. >> nigel ferad. >> very outspoken, yeah. >> he's great. >> yeah, he's good tv. he's very good tv. and i don't know -- he got slapped down in the european parliament for being overtly sort of aggressive and name calling. >> he had to pay a fine of $5,000, i think. said it was an expensive speech. >> yeah, if he keeps doing that, he on his own could sort of become a one way to repay back the debt. >> if he gave speeches like that 68 million times, he could repay it all. >> exactly. and so, yeah. >> and there was a sort of a following, some following for him. >> he seems like a little bit right wing for you and a lot of your friends over there. does he -- i like what he says about the eu, though. he doesn't pull any -- you didn't join the current. you made the right move. you don't have to feel uncomfortable when he tells it like it is about the -- >> n

this morning's top stories. >> making headlines this morning, spain's prime minister getting backing for his austerity drive. the vote removes a potential obstacle for him asking for a bailout. the timing of any spanish bailout is still uncertain, of course, and we'll have more from ross westgate in just a few minutes. japan's exports tumbling by 10.3% in the year. sharpest decline since the aftermath of last year's earthquake. meantime bank of japan is cutting it outlook for local regional economies due to a fight with china and weak global demand. and bp says it has not yet reached that agreement on the sale of its 50% stake in tnk. bp and rosneff reportedly preparing to announce a deal worth more than $25 billion. could give the british oil company a stake of between 16% and 20%. we've been waiting for that transaction to cross the tape, but it has not been announced just yet. mr. kernen, how was your weekend? >> it was good. i read the top date on on the journal and i checked the date. almost reads identical to last week. i was excited the first time and actually just as -- >> ho

is just taking a different office. >> come on over. take your shoes off, settle in. s&p cuts spain's rating to bbb minus. if it goes below that, it's junk. which is -- i don't know what i was more surprised with, that they cut the rating or it wasn't junk already. it cite as deepening economic recession and limiting the government's policy options to stop the slide. and italy sold 2.9 billion of three year bonds that it no longer issues on a regular basis. that's the top of it targeted amount. kelly evans will join us with more in a few minutes. christine lagarde is calling for urgent action. ties are similar. >> very similar. >> to tackle the european debt crisis and spur sluggish growth. she praised recent steps but said no more needs to happen -- or more needs to happen and faster. the imf and world bank's annual meeting are taking place in japan this week. and the bank of korea is cutting interest rates and growth forecasts, but policymakers are predicting a recovery ahead. yesterday woody i asked him the tebow -- they love these like bloggy looking for conflict, they love the id

in spain and italy down to eight month lows. a little firmer today. but remember, we got down below that 5.3% level. ten year italian yields, 4.76. we'll keep our eyes on treasuries. gilts are substantially higher. as far as currency markets are concerned, euro dollar, 1.3029, so off the one month high. dollar is firmer against the yen. nearly back up to -- we'll get into japan in a moment. trading 1.6 # on cable, as well. mean while in spain, the prime minister's party, he's sort of got through the regional elections fairly comfortably, but is it a boost for the government's austerity plan. we'll be in madrid. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announce

-- spain did get downgraded. >> it's funny we haven't mentioned that at all today. >> isn't that incredible? that was the dominant theme in europe that perhaps this downgrade is going to cause the spanish to say, listen, we do need the bailout, $200 billion needed in spanish bonds in the next couple of years. >> the s&p move though is still to one notch above junk. the moody's downgrade was the one that we are still awaiting as they continue to assess the spanish situation and that would propel it into junk territory. but this is obviously a story that we continue to watch and a ratings change could hays ehast process in terms of request for bailout. >> stories gary cohen says -- number two at gold man, that perhaps the euro can't survive. obviously the euro's been an ascendent here so that's a little contrary to what the current market is saying. a lot of the strength in our market has been the currencies for a lot of the drug companies going to be very positive. estimates have to come up for the drug companies. >> while we got you here, jim, given we're counting down to the end

not be any capital injections until after the elections and countries like spain may not get debt off their balance sheets. none of that is good. the spanish prime minister came through and said he hasn't decided whether he'll ask for a bailout. that's an issue. you can see it reflected in the markets. you had a slight sell offof its own spanish and italian debt. you can see the way in which the yields have risen. they were down because of these successful auctions. let's get perspective on what's happening here. we're a couple of ticks higher on yields overall. let's remember where we have been, what the journey is on that spanish debt and clearly as a result of this 12 week anniversary of the we have a major move down, almost two percentage points give or take in the spanish debt and that's important to mention. the spanish market is selling off. i don't think it's selling off in response to merkel. it's response to profit take. take a look at the ibex, rightfully hoof, this is merkel move. it's really very gradual. that's the point to ram home there's profit taking here. let's reme

. as far as bond issues are concerned, we have a t-bill auction coming out today in spain. we'll get the results of that in about an hour. 5.82%. spanish yields slightly higher than where we were yesterday. italy is fairly contained. the big test for spain will be on thursday. first time we've had a primary debt auction out of spain since the s&p downgrade last week. we'll keep our eyes on gilts, as well. uk inflation data coming out half past 9:00 london time. currency markets, euro-dollar, we got up to about 1.2979 yesterday. we're back over the 1.30 mark. dollar-yen a little bit firmer getting back towards 1.79. aussie dollar, 1.0278. no real indication of anymore rate cuts to come, so it has strengthened a little bit. and that sterling you can see also firmer over 1.61. expectations cpi will come down and that may allow more qe possibly in november. so we'll see whether ultimately it stays. let's get a look out of asia. >>> asian markets picked up steam. the nikkei outperformed ending higher by a strong 1.4%. softbank shares rebounded nearly 10% leading the rally and other mobile

at the picture in europe stemming from this report that spain could ask for a bailout as early as this weekend. so we'll see if that happens. that rumor certainly has been in the market. for now it is giving us a positive bid on the futures and the european markets. we'll start out with the road map beginning with follow-through to tomorrow's rally. this time pimico's bill cross has some not-so-nice things to say act america's addiction to debt, let's say it involves kris mall meth. >>> and google becoming the most valuable company after apple. how much is left in the tank at these record highs? >>> and american airlines facing serious questions after a second flight was found have loose seats. how much traffic do they stand to lose and which rivals are poised to benefit? but futures right now moving higher one day after upbeat manufacturing data helped lift the dow and the s&p 500 to gains in the first trading session of the fourth quarter. hopes for a bailout request from spain also adding to the positive sentiment this morning. there are some calendar issues in terms of the req

uk inflation data fell to its lowest annual rate since 2009. spain and greece did go to market with 12 month t-bills today paying slightly lower yields. spain's ten year is moving a little bit higher today, nevertheless 5.85%. greece, the rally continuing there. under 17.4%. italy benefiting a bit this morning. and i want to end on this note. as people sort of continue to debate whether it's qe-3 or fundamental strength in the global economy, silver yesterday got nailed. down almost 3%. today we're seeing a bit of a buns back. so in line with what we're seeing across crude, as well. but perhaps more indicative of the general risk on mood that we've seen. the debate whether or not you you want to buy precious metals versus base metals is likely to continue. but better signs coming out of the ace traustralian companies. back to you. >>> john harwood is in studio tonight. tonight the town hall style event will be held at hofstra university. and our chief washington correspondent john harwood will be there. but first, he's with us onset. first of all, does candy crowley -- does she know

again for the imf indicating a change in position that greece and spain should be given more time and one point sitting next to the german finance minister on a panel and disagreeing really vehemently with each other about what should happen. he is saying to her look the troika is still in athens trying to work things out. please don't preempt their report but things are shifting there and in that meeting at that meeting for the first time a senior european official has detailed how a bailout for spain might work. ollie wren for the first time giving an indication there and you see the spanish yields interestingly are not a terribly risk on day for the market have fallen into negative territory for the week as we head into the close, down to 5.64. they have a big auction coming through next week which will clearly be one to watch given where we are at the moment. what is interesting is that greek stocks have also risen substantially today but i'll get to that in a moment. first let's have a look at the map as we count you out on the close, greece is higher, greece on the bottom ri

markets. the ftse 100, the ibex in spain is up in the range of 1.5%. global markets should see positive more as well. also partly keying off plans for japan to perhaps pursue more fiscal stimulus before year end. a lot of cabinet members talking about that possibility this morning. take a look at the bond space, because we've seen some pretty remarkable moves, as far as francois hollande is concerned, europe crisis is over. that's what he's saying in an interview this morning. markets believe him to some degree today -- we're seeing spain rally 5.5%. italy, 4.83%, which is remarkable. we continue to sink below that 5% level. the german bund, this is an interesting one. partly because of the comments from moody's, partly because of expectations tomorrow, that while no drastic solutions will be reached, there will be further steps supported by most members of the eurozone towards a solution. you're starting to see the bund take it on the chin as people price inflation or reflation. we're seeing upward pressure there. guilts were higher too as uk employment figures came out surprisingly st

were slightly weaker, too. spain not up quite so much. we heard from bank company popular, desperately trying it avoid having to take official aid.co popular, desperately trying it avoid having to take official aid. stock down 12.5%. other spanish banks are up. we know 60 billion will need to be injected in total. plenty of others, 40 maybe comes from eua. 20 from banks themselves. spanish yields are slightly lower. and here we go, ten year spanish yields below 6%. we have agreement at well. long a wait 33 revised merger. there is still going to be some contention over the revised pay plans, as well, but mick davis will no longer be part of the revised group. so still way to go. we have to hear. but that's where we stand on the post-ryder cup monday morning. ext extraordinary event. >> as he puts his flag back on his lapel. >> there will be a lot of -- it would be even worse i think over where you are with the press, but a lot of negativity about every one of these guys. it will be a rough -- this is never going away. never. p. >> well, the thing is, the british press were writing on s

second, but want to mention some data. the bank of spain says the bank's bad ratio rose from july. so a sharp pick up there. adding pressure to ask for a full bailout, but also able to pull assets into the bad bank. more details coming up on the program. on seat, economist from btb, and author of asia confidential. hello to you both. neal, your reaction first to the china figures that we've seen. are you in the china is bottoming camp? >> maybe. the markets have taken the view that the the latest data suggests that the economy is stabilizing. i think certainly during the summer months, there were lots of concerns that rather than a soft landing in front of the transition to the new national leadership, actually hard landing worries were intensifying and there are a number of indicators suggesting worries about potential deflation, worries with the manufacturing sector perhaps that activity had stalled. i think the latest numbers, industrial production, retail sale, fixed asset investment, all of that do suggest stabilization. i think the promise of fiscal stimulus is certainly positiv

moody's call. spain avoiding junk status. mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer. a short word that's a tall order. up your game. up the ante. and if you stumble, you get back up. up isn't easy, and we ought to know. we're in the business of up. everyday delta flies a quarter of million people while investing billions improving everything from booking to baggage claim. we're raising the bar on flying and tomorrow we will up it yet again. >>> got our own earnings to watch, of course, but it's largely about europe, simon. >> there are two major things happening in europe. before we lose this chart,

banks by tips and short maturities here in the united states and importantly says bill gross by spain and by italy and the european union and boy is that what they did in the wake of the jobs numbers coming out. let's look at the session charts. it was about this time you got the jobs figure come through. europe continued to rally on after that because clearly central banks will keep printing on both sides of the fence. it's a disappointing headline figure. let's be honest. meantime let's look at angela merkel off to greece. it's announced on tuesday. bear in mind the greek press has been antagonistic to the woman. one put her in a nazi uniform because of the austerity she's been bringing to the table. they need 31 billion euros from the rest of europe. if she's going on tuesday it's quite clearly an indication that she's not about to kick greece out of the single currency if ever you had a doubt about that. but you wouldn't if you followed closely the change in rhetoric that we've had over the summer out of berlin. in athens itself, emergency talks are under way to create the largest

ministers have now got to work out the details. spain has said we won't have any correct recapitalizati direct recapital 6ization until the end of next year. >> we know they can't renew their recapitalization in a time frame which is quite pressing and it looks like -- isn't clear. but even most importantly, i would say there is an absolute no clarity about whether the leg glassy will be taken in the future about any direct recapitalization. so i think at the margin is negative for spain, but i'm not sure that's a surprise, though. i think the market was looking for a time frame that they could go into next year as far as more clarity is concerned. >> back in june there was no mention of ireland. it seems like we've pushed the idea that we can fund toward the packs as you say. i suppose the question is where does it leave spain. funding costs and yields have come down. how comfortable are they going to be and for how long? >> obviously that is the key question now. i think the market is playing ecb intervention trade. but the macro story is untouched by the decisions that

. investors moving in to spain and italy. finally just forex, bank of japan disappointed. investors wanted to see more. this despite the fact they've gone on two quantitative easing programs in two months. that still wasn't enough. the dollar yen is sinking half a percent done this morning. bank of china in the market with record amounts of liquidity injections. these are the layses s places focus on. broadly speaking the tone is better than yesterday and it helps perhaps that as people are trying to get a sense of the damage from sandy, it may not be as bad as some of the worst case estimates. back to you. >> we can certainly hope so. thank you. >>> coming up, getting the markets open for wednesday. should investors expect a selloff when we finally do get the markets open as the month draws to a close. and it won't ebe halloween tol p tomorrow. i think we'll put it off. >> and governor christie will be speaking at 10:00. mayor bloomberg at 9:00 to give us an update. hopefully some of the rescue separations can continue. >> halloween is not -- >> chris christie said he is. if it looks like

spain. talks being held on wednesday about getting aid, but not necessarily an agreement as to getting the public holdings of that greek debt to be written down. let's take a quick look at the major indexes. seeing losses of about half a% to more than that. c 40 down 1%. guests this morning saying be careful about trading in the u.s. because it will be so illiquid. we had asian markets more of a mixed bag. the bond wall as mentioned, we're seeing this sort of rotation into quality. so bunds doing better. u.s. treasury doing better. spain and italy selling off a little. quick look at currencies. the euro-dollar is weaker because of these periphery concerns coming back to the fore. the dollar-yen a little weaker. the aussie dollar has flipped up and trying to hold this 1.0350 level or thereabouts. the yen by the way speaking of japan, we just have a little bit of focus ahead of the boj meeting tomorrow. the boj meeting will be a key one help how much more can they do to try it support the country and depress the value of the yen. and honda slashed its profit target by the year and cited

obviously thinly traded but as you look at the intertrade of tenures in spain, they are up ten basis points. back to you. >>> let's go to sharon now. >> jim, why are we talking about syria and turkey when they are not major oil producers? because of the key transportation routes from northern iraq through these countries and the possibility that the tensions we are seeing between syria and turkey that are the highest we have seen since march could definitely impact the transportation of oil to the west. that is the big concern and that is part of the reason why we are looking at oil prices up over a dollar. we are also noticing this big spread, a record spread between brent and wti futures trading some of the momentum, particularly in the brent contract now above $113 a barrel. but some in the industry say oil prices right now are still at a comfortable level for global growth. it would be better to be close to $100 a barrel but he's okay with them at these prices. copper prices are off their highs. rio tinto talking about china's forecast and reducing that somewhat. china is one of