hello, everybody. i'm chloe cho. here in asia, japan's government says the economy has slipped back into deflation as the boj upgrades the assessment of the economy. >> i'm becky meehan. in europe, we have our third president, but who is herman van mumpee? >> and i'm matt nesto. the white house is standing by their man. some are calling for tim geithner to step down. >> a very warm welcome to cnbc's "worldwide exchange." let's take a look around the markets to see where the action is starting with the ftse cnbc global 300 index. here is where we stand. just higher by a few points, about 7 or 8 points. that equates to 0.17%. looking at the futures pictures, we're looking at gains of just over 0.5% for the ftse 100, xetra dax and the cac 40. the smi is higher by 0.31%. dollar/yen, 88.87 is where we stand so far today. euro and sterling declining a little bit against the dollar, looking at 1.4896 for the euro. sterling at 1.6593. euro/sterling, 0.8977. chloe, how is it in asia today? >> you can see a lot of red across the board. the nikkei dropping by a little more than half a percent. the key focus today was the boj leaving interest rates on hold as widely expected and upgrading its assessment of the economy. but actually on what could be a slightly different picture than the government because the government is saying they're worried about deflation and a lot of analysts saying that could put them on a collision course especially when it comes to bond buying, as well. the kospi being pretty resilient today. the shanghai composite off by .4%. the pboc could be getting banks to uplift some of their requirements. carrying on losses for four days in a row. the resources heavy market, as you can imagine, falling heavily, 1.3%. turning to the energy complex, nie me the mechanics light sweet crude off 1 cent, $77.45. brent is ticking higher about 20 cents, $77.84 at this moment. let's check on the u.s. futures with matt. good morning. glad you made it today. >> thank you very much. i couldn't be happier to be here on a friday, no question about it. check out the futures at this early hour. a little bit of weakness here two days in a row if we were to open now down about 25 points for the dow. if you take a look at the fixed income markets in frankfurt, the yield on the 10-year bund, 3.27%. you compare that for ten years worth of treasury debt in the u.s. and you're at a 3.34%. so we've widened off the spread for those two benchmarks. and if we look at the price of gold, it is down a little bit. we're coming on james at $1,143 an ounce. >> thank you very much. darren kalchek and pierce ampel head of trading, as well. pierce, what are your general impressions of where we stand in the market at the moment? >> in terms of equity markets, i would say that we've been very bullish up until this point. we've been bullish up until christmas. we'll fallen into a pattern in a bit of a monthly cycle. september, october and november and the first two weeks of each month has been bullish. they see a bit of a dip they want to get long on. as we come to the middle part of the month, the upside momentum begins to wane and we get a flattening off or so. and then the back end of each month seems to be declining in stocks. people seem to get nerve yuls about jobs reports out of the u.s., etcetera. so i think we're seeing this monthly cycle. it is trending higher, still. the momentum is waning, as i had. but we see a drop for the next two weeks followed by a good buying opportunity for the first few weeks of decber where we'll reach new highs of the year. >> let's find out what darius thinks about that. we're trending higher. would you agree with that assessment of the equity market? >> it is a fair assessment. the key point for me right now remains that the trend is going to continue upwards as long as banks provide liquidity at zero interest rates and as long as the outlook for global recovery looks positive. i believe these two factors will remain with us through the spring, at least. so i would be long global equity markets and pretty much any other risky asset class until then. >> and good afternoon, darius. what about techs? we have sell-offs in some of the tech stocks today, given the downgrade from merrill lynch b of a. would you be short on techs now? what are your thoughts? >> i don't look into particular sectors, but i believe tech is likely to see more volatility. however, outside that -- at the foremost other sectors, the trend will continue to be upwards. remember, it's not so much sector specific fundamentals driving the markets higher, but rather the fact that it is simply so easy to borrow money and invest. and as long as this kind of incentive remains, investors will continue to do so. so, you know, buy on dips. this remains a strategy for the next very month. >> i see. and let's get out to piers now. piers, what do you think of tech? the brokerage downgrade triggered fears about what may lie ahead. but samsung proved quite resilient, although the chipmakers in taiwan had a fair amount of sell-off. what does this tell you where the techs sectors are? >> the tech sector led us and since march tech has been outperforming. you mentioned the chip producers there and they're the key. their quarter three performance was sensational, so i think that's a good indication. i think that healthy growth will continue into quarter four and, you know, i think also you've got -- you've had things like microsoft launching windows 7 which they've said overnight has gone fantastically. that's a bullish sign. i know dow reported earnings overnight, as well, which are not so good. but their forecast for 2010 is pretty healthy. so i think the tech sector will continue to trend higher and probably slightly outperform the general equity markets as a whole. >> darius, what about tim geithner? do you think he's going to outperform or do you think he's going to lose his job inside of a year? >> i think he's going to retain support of the administration because as difficult right now to find a replacement that would be willing to take the risk and the key risk is that the political climate in the u.s. has shifted against the increase in deficits and debt, something that is inevitable. and i'm particularly concerned about next year when the package runs out and the private demand will not be strong enough to replace it. then another stimulus may be necessary. after that, it seems geithner's job will be on the line. but until then, i think he will hang on to his position. >> interestingly, president bush's treasury secretary and bill clinton's resigned after two years on the job. >> i've got similar views to our other guest there. i don't think geithner is going anywhere. certainly not in 2010. i think he's here to stay, my view. >> view it is. >> let's thank both of those guests and get on to some of the other top news today, piers occur ran, amplify trading and darren velchek. the european union has its first union president. herman van rumpoy was a low profile choice. looid leaders passed on if chance to give the likes of tony blair the position. the two positions take effect in january. ferrero and hershey has a sweet tooth and it looks like cash is no issue. ferrero has $3 billion in cash available for what's described as a friendly offer. they're still deciding whether to just buy a largegeke or buy the whole of cadbury. chloe. >> for the first time since 2006, the japanese government said the economy has slipped back into the deflation in its monthly economic report it added there is a risk of another recession if deflation insists in the world's number two economy. the announcement came as the bank kept interest rates near zero and upgraded the economy. the cabinet says it expects the boj to keep a flexible monetary policy in order for the economy to remain in sustainable growth. and two of the world's largest airlines have scrambling against japan airlines. american airlines warns it could face risks if it chooses a rival firm. american is getting ready to driver a $1.5 billion package. separately, the nikkei business daily is reporting that jal may have to pay about $1.1 billion worth of derivatives contracts used to hedge against oil prices. take a look at japan airlines today, down more than 3% at 95. certainly a volatile week for the japanese carrier. mat. >> the house financial services committee has improved a measure that would impose more scrutiny on the federal reserve. the provision would direct the gao, government accountability office to expand audits of the fed to include interest rate decisions and bank lending. the amendment, sponsored by texas republican ron paul, a long time critic of the fed, says the fed has been largely shielded from politics since 1978 when a law was passed blocking congress from reviewing its monetary operations. dell third quarter profit fell on lower than expecteded sales. the company is losing market shares to acer which has overtaken it as the world's second largest pcmaker behind hewlett packard. dell fell during the quarter. executives are optimistic about demand, expecting a wave of new spending next year as companies replace old equipment and dump into windows 7. dell was off 6% in the after hours. it looks weak in frankfurt. seems to be shaping up in some of the early understand kafb trade. a world without oprah. by 2011, it could be. no more daytime talk show which is seen in more than 140 countries. for more on oprah's exodus, check out the website. keep you up to date on that and all kinds of media news and great tough from julia boorstin's media money blog. coming up on "worldwide exchange," the japanese government is warning that the country has returned to deflation. so what now? we'll discuss that ahead on this program. plus, it's not the bulls versus the bear webs it's the wolves versus the vampires. the new film, "twilight" opens this weekend. clean so deep... it's like your old mop's worst nightmare. ♪ [ thunder crashes ] [ man ] love stinks. ♪ love stinks! ♪ yeah! yeah! [ female announcer ] swiffer wet cloths clean better than a mop with new cleansers that attract dirt deep into the cloth and lock it away. new swiffer wet cloths clean better, or your money back. ♪ love stinks! eeeeeeeeeeeeeeee welcome back to the show. let's get straight to the roundup of our global equity markets now. we have reporters standing by to help us with what's going on around the world. first of all, let me tell you what's going on with the ftse 100. let's take a look at the markets overall to start with. over the past three trading days before today, we have seen about 2.1% of declines. let's check on some of the best performing stocks very much dominated by the mining stocks, metal and might being stocks. fresnillo, lonmin, kazakhmys, they all fall into that sector. jpmorgan, the analysts say they're upgrading the shares of cable and wireless. upping the price target on the shares, as well, to some 175 pence a share saying that the stock that is has underperformed the market recently. now, i also want to mention cadbury. let's check on how cadbury is fairing. what we're seeing today, there is a report from dow jones that there are talks between italy's ferrero and u.s. from hershey, but those two businesses coming together to make a joint bid for cadbury. remember, kraft is currently trying to get its hands on cadbury, so we could see a bit of competition coming through there. cadbury is moving higher by about 1%. there is obviously a way to go before we get any confirmation of this story. it could mean a full takeover. cadbury is moving higher, as well, on the back of that. now out to some of the other global markets. stephane pedrazzi is with us in paris. >> and it's a positive session today in paris for the tech sector approximately alcatel lucent is the best performer of the cac 40 after the ceo said yesterday that the company is targeting a 5% operating margin for the next year and training some additional cost reduction on top of the euro. the ceo says that the telecom media and the technology confront in pars loan na still believes that the telecom equity market will grow next year. all of this has been welcomed by the market. vivendi is still weaker after it was reported that vivendi and ge are still not reaching an agreement. they're at least $1 billion apart in the negotiations. ge would be ready to pay $6 billion for this 20% stake. but in june, va vindy estimated the value at $2.6 billion and since then it got weaker. that explained the gap between the two evaluations. yesterday it was reported that the company was planning to sell its stake. but still, it was make clear that they were too complex. quick look also at france telecom. the company will unveil next month a plan to reshape the company after cases at france telecom. the last case was just a few days ago. employees are blaming the working conditions at france telecom and the company conducted the recent survey and will announce the result of this very shortly. now let's have a look at the asian market with saijal in singapore. >> hi, stephane. it was a bit of a weak picturur here in asia. still concerns about the state of a global recovery. we saw oil prices drop overnight. tech is pretty much weak, as well. sony hit fairly hard, down 2.4%. it unveiled a new strategy to turn around its tv business as well as its video gape business. but like i said, investors thinking that this is going to be a tough goal to meet. we did see short recovery in the banking sector. remember, this sector hard hit after mitsubishi ufj announcing that big share sale earlier this week. so some gains supporting the market there. as for greater china, down 0.8%. they continue to work concerns about selling in china. china may raise its reserve requirement ratio next year, so we saw a sell-off in some of the banking stocks. electricity stocks, though, bucking the trend. there is a report that china will raise the electricity tariff, so some gains there. south korea's kospi closing pretty much flat. the positive report coming out that the country may raise its growth forecast for 2010 to 4% to 5% which would be above the forecast. we saw gains in some of the tax forecasts there, but basically, like i said, a flat picture for the kospi closing at 1620. now back to matt in the u.s. hi, matt. >> hey, saijal. if you were to pick a day to, like, oversleep and miss the morning, this would be the one. because our economic calendar here, blank, nothing, na da, anything to report. we have a handful of earnings reports coming out after the bell. we'll get numbers from ann taylor, dr horton and the giants of jelly, jm schmucker. and that, folks, is your global up and at em stock watch. >> still much more to come here on "worldwide exchange." we're going to take a look at japan as the government warns the country has reentered inflation for the first time since 2006. plus, it is opening weekend for "twilight." we'll talk film branding and the success of the vampire franchise. no idea why that is turning out so well, i have to say. welcome to the now network, population 49 million. right now 1.2 million people are on sprint mobile broadband. 31 are streaming a sales conference from the road. 154 are tracking shipments on a train. 33 are iming on a ferry. and 1300 are secretly checking email on a vacation. that's happening now. america's most dependable 3g network. bringing you the first and only wireless 4g network. right now get a free 3g/4g device for your laptop. sprint. the now network. deaf, hard-of-hearing and people with speech disabilities access www.sprintrelay.com happy friday, everybody. the boj upgrades its assessment of the economy. >> i'm becky meehan in europe. we have our first president in europe, but who is herman van rumpoy. >> and i'm matt nesto. the u.s. is standing behind tim geithner as treasury secretary as congressmen call for him to resign. >> let's take another economic on some of the action. the ftse cnbc global 300 index is still higher by 7 points. .17%. the europon bourses are still gaining a bit of ground. the ftse is now higher by .75%. almost .7% higher for the dak and the cac is not far behind. the smi is still moving higher, but just high of .5% higher. now, in the forex markets, it looks like this. we are watching dollar/yen at 88.85. the euro and sterling both losing a little bit of ground against the dollar today with the euro standing at 1.4893 and sterling at 1.6565. euro/sterling, on that front, we're looking at .8985 of euro shifting higher. chloe, how has it been going in asia? >> a little bit of risk coming off the table and the equity markets as well as in the equity markets, as you can see there. the nikkei coming off a little more than .5%. short covering going on, as well, given that monday is a holiday in japan. the chances of a double dip recession in light of the inflationary risk. tech stocks, which tend to be pretty weak today, techs in general in south korea had an okay day. the shanghai composite ticking lower by .4%. some reports about the pboc possibly limiting reserve requirements for banks pressurewise. aussie market, as you can see, one of the worst performers today. down 1.3%. commodities and resources taking a hit today in light of the general environment that permeated in global markets. let's take a look at the futures with matt. >> at your pleasure, at your service. futures are a little bit on the down side -- oh, look at that. live movement on the futures board, trying to get back to changed position. we have nothing big on the calendar here today to give us some fear, but we shall see as we get closer to the opening bell. on the 10-year treasury yield right now b, the last we checked it was at 3.35%. a little bit of increase in the yield meaning some selling. joining us now to discuss the global economy is brian colton, head of global economics at fitch. brian, great to have you on here today. let's talk about this u.s. economy. we had a surprise on the housing starts earlier in the week. we had another 500,000 of jobless numbers, which hit line with consensus, but certainly is not any improvement there. the double dip theory appears to be coming back. foreclosures, 1 in 7 americans are either in foreclosure or behind on other payments. examine people are calling for tim geithner to resign. it's a beautiful picture, is it not? >> the labor market is always a lagging indicator, less so a bit than elsewhere. but even in the u.s. and the economy is pick up, in our view, but the labor market probably won't hit bottom until the middle of next year. because typically in the u.s., you'll see unemployment rates start to fall once growth on an annual basis gets above 2.5% to 3%. we don't think it will reach that level until the middle of next year. the consumer is not going to start getting out their credit cards again while they're still worried about job losses. >> nouriel roubini says the worst is yet to come. if you look at your run-of-the-mill recession, with then the unemployment rate is a lagging indicator. but this is almost depression like with an underemployment rate approaching 20%. so some are saying it's not necessarily lagging, but it's in the news, it's a concern. >> i don't think that's right. i think it's too dramatic. i think the pooep piece of people being fired has not yet kicked in. that is still a point that we have yet to reach. companies are pretty cash rich in the u.s. they're waiting for more certainsy before they start hiring again. the policy response has been so aggressive this time around that those comparisons i do not think are accurate. >> how about here in the uk, are we looking at a radically different picture than what's going on in the u.s.? we've had mpc minutes this week, retail sales data. >> i think you have to remember the uk went into the recession than the u.s. and they'll be later to come out. the latest gdp number was a poor number. the pmi gs have been better, the car registrations. so i think, again, the uk economy is going to start to show growth. maybe there's more from the mpc to come, but not much more from the qe. >> maybe specifically to the uk, we could see more pain still to come in this economy. >> well, i think that is where you get back to the deleveraging story. household debt ratios are pretty high. so that there takes a long time to come down. that is not a process which is over in one or two years and i think that is the big risk for the uk. of course we've got this fiscal year which in 2011 the fiscal deficit will have to be reduced pretty rapidly. >> what do you think are the chances of asia slipping back into a double dip recession, especially if you look at the comments coming out of the government today citing worries about deflation? >> i think deflation is worry. the economy has benefited from the global restocking cycle and the strength of china. as we know, china's policies will probably be tightened going forward. that are restocking is not a global phenomena. i think the bank of japan needs to be the last central bank to exit and it needs to say that now. it needs to be much more aggressive in committing itself to positive inflation. real interest rates in japan are pretty high. >> what do you make from the boj and the japanese government, the boj said the economic conditions are getting better? >> it's a different between the marginal directional activity and where activity is relative to potential. there's still a huge amount of excess capacity in the japanese economy and weak domestic demand. and that means that core inflation has turned negative in japan way before anywhere else. it's still 1%, 2% across the western economies. it's been negative in japan and it's because that gap between supply and demand is too big. the bank of japan needs to be more aggressive. >> absolutely. thank you so much for your thoughts today, brawn koulton at fitch talking to us from our london studios. let's get straight out to tokyo and find out what happened on the trading day there. >> good evening, chloe. the japanese government says the world's second largest economy is in a state of deflation marking the second time in two years that the word "deflation" has been used economically. they said the government will inform the bank of japan about its understanding of the current economic situation hoping to work closely with the central bank to avoid jeopardizing recent improvement in economic activity. against that back drop, the nikkei 225 declines for the fourth consecutive day, dipping below the 9,500 mark for the first time in four months. tokyo marine holdings rose 1.5% after it was reported that it plans to establish an indian life insurance joint venture with edilweiss capital around 2011. tokyo marine plans to aggressively invest in growth markets as the life insurance shrinks. and finally, nikkei has learned that prime minister yukio hatoyama is considering visiting india and pakistan in late december. hatoyama had until now focused on tie wes northeast asian countries, china and south korea. that was the nikkei business report. back to you, chloe. >> thank you very much and do have a great weekend, ken moriyasu reporting from japan. two of the world's largest airlines is scrambling over jal. american airlines warnings that the japanese company could face enormous risks if it chooses the rival teams and reports say american along with ttg is getting ready a financial package that is worth $1.5 million which is more than the $1 billion delta is offering. secondly, the nikkei business daily is reporting that jal may have to pay about $1.1 billion worth of derivative contracts used to hedge against oil prices, and interest rates. jal reporting 3% lower today. and in south korea, state owned korea bank will aggressively cut. keb is likely to face a shake-up next year. this comes as u.s. private equity firm lonestar is likely to restart the sale of the korean exchange bank for more than $5 billion. shares in keb rising by 1.4% over in the kospi today. becky. >> the european union has its first president. herman van rompuy was appointed after months of debate. britain has filled the foreign affairs job in the form of baron e ess. now, it seems as though hershey and ferrero have a sweet tooth. ferrero is not ruling out making an all-cash offer for its stake. ferrero's advisers value the company's share of cadbury's at over $7.40. >> some of the biggest shareholders for goldman are calling for the bank to cut the bonus pool which is more than $17 billion in value this year. the group argues goldman should pass along more of those blockbuster profits to investors. the shareholders own tens and millions of shares of the company. the journal says if goldman reigns in the bonus pool, that would give a jolt to its earnings per share and stock price. in frankfurt, goldman down is about 2% today. general electric and veivendi ae at least $1 billion apart on how much they think nbc universal is worth. they wanted to announce the deal for an nbc joint venture before thanksgiving. vivendi has estimated its stake is worth $1 billion to $2 billion. ge has until december 4th to decide. in europe, ge, comcast and vivendi are all moving in different directions here today. but the big gainer right now appears to be comcast. gap's first quarter profits were up 25% and that met expectations as the retailer reported its best margins in a decade. sales rebounded at old navy which posted an increase after five straight years of decline. the company announced the $500 million stock buyback. they've been focusing on leaner inventory and traffic driving promotions. the company plans to boost market and cost for the holidays in a bid to gain market share. the stock was down 1% in the after hours session. analysts say the added costs are one area of concern. it is now down about 2% in frankfurt trade. >> and let's check in on the trading day over in mumbai with ayesha faridi. it looks like the indian market is bucking the overall weak trend. what is going on? >> indeed, it's been a turn around of sorts, chloe, after just about going below the 4950 odd mark, you're almost seeing a 100 point turn around for the nifty. 5043 is where the index is and this after acute weakness and choppiness that crept in for the first half of today's trading session. similar is the case for the sensex, as well. you are seeing a fair amount of shock trade. so the entire banking back, real estate, all these high beater pockets are seeing a fair amount of squeeze. susong is the clear stock in focus. yesterday it had a very good session. today it's a tad bit soft. we did speak with the management and they are open to offloading hands in stake if required and it is the high debt that is a concern. more news coming in, as well, and sources say they will open bids for selling their stake. it is five leaders who have approached them for this particular stake and so far the price offers range between 200 and 220 million dollars. so that is all going well for the motorcycles right now. with that, it's back to you. >> thank you very much. now shifting our attention to one of our top stories today, japan's government says the world's number two economy has slipped back into deflation. this comes as the bank of japan earlier today kept its interest rates on hold as widely expected. good evening to you and great to see you again, jesper. first of all, why is the japanese government sighting worries about inflation when all the numbers have suggested that deflationary pressures were there in japan? >> that is exactly right. the question is what took you so long? all assets in japan, whether it's assets, products, the labor market, prices have been going down basically for the last 10 to 12 notz r months at an accelerating rate. the good news is that finally everything is being recognized by the government. let's hope that the sense of urgency starts to creep into the new government's actions. >> but obviously, the boj seems to have another thought of its own. it comes down to whether the boj has the right policies in place. how much is it going to take to prevent this possible double dip and to get the economy back on track? they have an extra budget in place. now this after shelling out four stimulus packages in the past year and a half or so. how much is needed? >> it's very, very interesting that you bring this up. all eyes are obviously on the bank of japan. can they do more? the answer is yes, they could step up their outright bond purchases. de facto stepping up monetization of debt here in japan. the principal transmission mechanism is it would give us some weakness which is the principal mechanism for the japanese economy. but the other thing that i think is very important, when you look at the political economy and the dynamics here, the prime minister needs to take some responsibility. there can be stimulative measures from regulatory policies, from a more proactive fiscal policy and very important, coming forward with a progrowth strategy. that unfortunately is what the government is lacking very much so far. so if it looks like the boj and the government could be on a collision course, what is the natural endpoint for these conflicting possibilities of what's going on and have to deal with it. >> i think that the voice of the market, the pressure from the markets is likely to intins phi. already we know that winter bonuses are going to be falling by 15% here in japan, so the labor market pressures are starting to build up. also, the visibility of, you know, the currency adversary pressuring down corporate profitability in japan. the bottom line is what's going to happen here is i think that at some point in february/march next year, the hatoyama administration will have to present a major economic stimulus package from the fiscal side. >> jesper, we're keenly interested in governments metaling in and trying to drive the hand of central banks because of what's happening in the u.s. right now. is the boj as autonomous as it needs to be or should be compared to the federal reserve? >> but look, i mean, this is very interesting, you know? all this sort of high minded talk about an independent central bank, i mean, excuse me, we've been economically stag nating for the last 15 years here in japan and we have now falling back into outright deflation. you know, what the government needs is not an independent fiscal policy or an independent central bank policy. independent for independent sake would get us absolutely nowhere. what japan needs first and foremost is paragraph ma timp and policy coordination and that's what's lacking. >> jesper, thanks for coming to speak with us. >> as we've been telling you, europe has a new president in the form of the belgium minister, herman van rompuy. carolin, what do you know about this guy? >> he has been the prime minister of belgium for almost 20 years and some people say this is exactly the reason why he's been appointed. now he didn't have time enough to make any mistake and he didn't have time enough to make enemies among his colleagues in the european union. is he the right man for the job? some are saying that the european leaders have missed a historic opportunity to raise the european union's profile on the world stage. it could be we'll have to wait and see until 1st of january he's not going to be on the job yet. but during his first press conference yesterday after his appointment, the journalists were very keen to ask about the kissinger issue. is it finally over? >> question for all four panelists, henry kissinger said allegedly he never knew which phone number to call when he wanted to talk to europe. we have here the president of the council, the rotating presidenty and the commission. so the question is, which of you will be calling obama when europe wants to talk to him and which of you will barack obama be calling when he wants to talk to europe? thank you. >> i'm anxiously waiting for the first phone call. >> now, as you can see, there is a little bit of embarrassment or an awkward silence, if you want. basically, they have chosen one man to be the first eu full time president, but it's not clear yet if he is the man mr. obama is going to be calling. becky, back to you. >> if you have any of those phone numbers, you can pass them on to us. let's get it back to matt now and find out what's coming up next. >> we have all kinds of things. we aren't going to be discussing bulls and bears today. we're going to take a look at wear wolves versus vampires. in light of the fact that the second "twilight" film opens today in dozens of countries around the world. it is expected to open some big money. q welcome back to the show. now, it's opening weekend in most countries, at least, for the second installment of the twilight series. the teen vampire flick has received rather lackluster reviews. more on the film, we're joined by darrel collis, i know that you saw the movie yesterday. >> last night. >> why don't you give us your impression, first of all, of how it was. i guess the reviews are not so good, but i guess people aren't going to necessarily see it for the production value of the movie, are they? >> no, exactly. i think as a twihard fan, a lot of people are going to see this most of very. it's a really big movie. it's a really big property. everyone is focusing now on this film. they're trying to get to the big audience, as well. the studio made the first movie for $30 million. this one has budgeted $15 million and they're thinking they'll bring in $500 million. it will be a very big film. >> are these kind of movies critic proof? is there enough demand from teenage girls and people who would go and see the movie for who is in it and the way they're presented to sustain the whole series? >> exactly. i think it is. it's quite like with harry potter and the big book franchises. especially where there's a lot of social networking. that's where the buzz has come from from this and it's one of those big phenomena. social networking has taken to it in such a big way and made it critic proof. >> good morning, darrel. vampires have evolved over the many years in front of our screens. and i understand the lead character drives a volvo. what does it say about vampire necessary this day and age, especially in terms of branding? >> that's a really big point. they're involved in this film from the start because they were in the books. the author wrote about the lead character, edward, drives a volvo. and so that's why they're in the film and that's why they've done a big pro motion about it. and it repositions volvo in a much younger audience. and so it's a great thing and it's a great partnership for both "twilight" and volvo. >> oprah said she's going to pack it in after 25 years. what are your thoughts? it leaves a huge void in daytime afternoon talk show television, i guess. >> no, no, it does. we were talking earlier, she is a big commercial property. i think you have the likes of ellen degeneres coming in. oprah has her own network, the own network and maybe she's going to take the show to there. so i don't think it's the last we'll see or hear of oprah. >> but do you think it could create a global frenzy because there will be so much demand, pent up demand? >> i'm sorry, in more respect, pent up demand. sorry. >> i'm sorry, what did you say? >> sorry, in what respect pent up demand? >> it's like what you say with michael jackson. now that he's gone, there is so much demand on michael jackson. and now naeem know you'll only be able to see oprah on the terrestrial channels until a couple more years, do you think that will trend a big wave of oprah branding? >> definitely. there's lots of properties where people are still going to get their piece of oprah. what she did, she's really changed the format of daytime television. i don't think it will be the last we see of her. >> who else could've the same -- i mean, are there any personalities out there that you think could have a similar kind of branding power for oprah? we have loads of talk shows. is there anyone else that could fill that, either in daytime tv or in film or -- >> yeah, definitely i was talking about ellen degeneres. she is the number one person tweeted on twitter at the moment. the social network sg a reflection. i think she's going to go and grow and grow as a personality on television. she appeals to everyone. >> not big in the uk, particularly. >> no, exactly. she hasn't transcended. she had her own show. but who knows. >> and also the matt nesto which could be a pretty good one, as well. i think he could probably do pretty well. i think we can see that. we can see that happening. >> darrel, thank you very much for that. okay. who do you call if you need to speak to europe? well, now there is an answer. stay tuned for more on the newly appointed president of the eu. who is he and what does his job entail? hello there. i'm chloe cho. japan's economy has slipped back into deflation. and i'm becky meehan. in europe, we have our first president, but who is herman van rompuy? >> and i'm matt nesto in the states. the white house defending treasury secretary timothy geithner against calls for his resignation. hello, folks. it is a friday. we're happy he to have you along, broadcasting live like nobody else. in the u.s., asia and europe. concurrently, we start with a peak at the u.s. futures which are trying to get to a changed position. nobody knows what to do. is the bear case going to gain traction for another day? it's pretty close. right now, we take a look at the bund, the 10-year bund on the fixed income markets. the yield had been rising. a little bit of a spread versus the ten-year treasury which will give you a yield pricing out at 3.36% versus where we were a little while ago. not a big change. beck, how are we looking ott yo your side? >> we're seeing -- well, we're coming off the high for today, just about .1%. if we take a check of the european markets, were seeing strength still lurking with gains on the ftse 100. just over .75% and just shy of that for the xetra dax and the cac. the smi has been lagging all day long. gaining. let's take a look at the currency markets. euro and sterling both declining against the dollar today. euro slshl dollar, 1.4870. sterling/dollar, 1.6551. euro is strengthening against sterling, currently at .8980. chloe, how is the day shaping up in asia? >> some risk coming off the table, especially given the strength that we're seeing on the dollar. aussie/dollar tracking lower, as well, at the 91 handle against the greenback. no surprise that the aussie market down under, closing down 1.3%. resources and commodities quite weak especially, but oil is trading back below that $87 -- excuse me, $77 handle. currently sitting off 46 cents in the nymex light sweet crude futures. let's take a quick check on brent, as well, $77.31. becky. >> let's get to our guest host. joining us for the next hour is elizabeth carrie from qantas capital. thanks for coming and spending so much time with us this morning. we've been talking about the new eu president a great deal today. any thoughts on the relevance of this new role? in fact, does anyone really care? does it make a difference? >> i think it gift gives a lot of credibility to the eu in that they were able to make a choice reflecting a choice on merit and not just to popular policy or political hlz headlines. and i would draw a parallel between that choice and the in you eu regular fund regulation that just came out. i think that provides a constructive process of listening to the industry, listening to other countries and taking on board and sweden and the european commission coming up with something that seems much more reasonable and workable and going really in the right direction. >> speaking of political headlines, it got ugly and heated in congress yesterday between treasury secretary geithner. if you didn't see it, folks, take a look at this. >> the public has lost all confidence in your ability to do the job and it's reflecting on your president. there is time for a fresh start and i would urge you to consider that. >> congressman, if you look at any measure of confidence in the financial system, it is substantially stronger today than when the president of the united states took office. >> tell all of that to the millions of americans who no longer have jobs because of your decision. >> what did he is about that, elizabeth? >> well, it reminds me of a popular game called the blame game played in businesses and politics around the world. and i think this could be very disruptive to try to bring somebody new on board. i think geithner does raise some points, but clearly the work is not done. it's a long and boring and yet difficult road to travel. >> good morning, elizabeth. there's comments coming through at this moment especially from morgan stanley steven roach telling the xherz seg here that the u.s. china trade route poses the biggest global threat especially in a bipartisan currency bill gets passed in congress and that could back fire by the chinese retaliating. given the summit that we had with obama and hu this week, given that we had a lot of diplomatic niceties, but nothing more concrete? >> it's of course very complicated because they're so interconnected. the trade flows, people who finance the trade and fiscal deficit in the u.s. is china, the same people who we want to make their currency appreciate which will make their ex ports less competitive. i mean, i think we really need a balanced discussion of this maybe outside of the media headlight glare to find what can be done. i think it's a xhushl action taking and not just playing for votes next november. >> absolutely. do you think that the two leaders were able to narrow some of their differences given that now a lot of the market participants seem to be shrugging off any sort of renminbi appreciate. what are your thoughts? >> i think it's very difficult because that would probably bring inflation into the chinese domestic market. huge imbalances exist which are not very well covered. china has their own domestic problem as well as all of their issues related to continued export markets in the u.s. and everything else that probably need to be tackled jointly. >> so, elizabeth, we have over $12 trillion in debt here in the u.s., which is about 80 odd percent of gdp. what do you think about that? obviously, they have to legally raise the debt ceiling, which is going to draw attention to it. is this going to be problematic? >> well, certainly. but i'm not sure anybody is contemplating the alternative. what's going to happen to mortgage rates? what's going to happen to liquidity in the markets. maybe a necessary evil for the next few years. obviously, the legislation ceilings, etcetera were drawing up in times which are in no way reflective of the present economy. >> elizabeth carey, thank you. she's going to stick around for a little more q & a and a little more grilling. still to come, geithner has to go. but the treasury secretary is fighting back, as is the white house, staunchly defending his record by any measure. who is right? we'll talk about that, plus we've been here before. japan's government saying the economy is back in deflation. what is the outlook for the world's third largest economy? somewhere in america, there's a home by the sea powered by the wind on the plains. there's a hospital where technology has a healing touch. there's a factory giving old industries new life. and there's a train that got a whole city moving again. somewhere in america, the toughest questions are answered every day. because somewhere in america, 69,000 people spend every day answering them. siemens. answers. li lity. well, the european congress is on the ground in europe. sylvia has an analysis. >> surprise, surprise, the title of this conference of many of the panels here is after the crisis. one could say after the crisis, before the crisis. we want to talk about this further with lester. less, thanks for stopping by. you told me you've just come back from asia, you come back from dubai. what is the feeling out there? is the crisis really behind us? >> there, you see people looking forward and there is tremendous opportunity as the business people are looking at how could they go? what are the additional things they can do? where can they invest? in dubai, things are still not very good, but it's stabilized. and here in europe, i think people are still looking at what went wrong instead of looking forward. >> we're still licking our wounds a bit, aren't we? >> yes. >> we are in the extraordinary situation that we've got tremendous amounts of liquidity sloshing around the globe, but not necessarily getting where it's supposed to get. >> yeah, i think we have this paradox that you have all this liquidity on the one hand and then you have this tremendous need and you see that very clearly out in asia for the infrastructure investment necessary in india or the needs for the small and medium sized enterprises. and you see it here in europe, that the banks are not lending to the smaller companies. and that is what is really needed. right now, we have an unemployment crisis around the world and we need to trade jobs and that's where the small and medium sized enterprises comes in. so i think that's what we as an institution are trying to support. >> absolutely. that's the next stop on this road, so to speak. if the banking sector, the private banking sector doesn't supply the kind of liquidity that they should supply, how much can be done to side step them. >> well, i think the national finance institutions like i see, obviously we can't fill this gap. but what we can do is help share the risk, act as a catalyst, show that it isn't that dangerous and help mobilize funds to bring them in with us to the market. and, of course, on the equity side, we have seen the close strong into listed companies. >> interesting thing is that when we headed into the crisis, we saw the emerging markets to buffer the blow. not quite escape, but with little few bruising. we realize that that is not the case. on the other hand, as we're coming out of the crisis, the emerging markets and especially the big economies in asia, like india, china, could very much act to get us kick started again. >> well, they are the ones holding us up. and i think also what you see in the news of some papers today, how the european companies are now are looking at how can they expand the growth in emerging markets. that is where the growth opportunity is going to be going forward. there are some interesting business models appearing if you look at india where they're talking about more operators but 100 million customers, they're selling telephones by the secretary and so they can -- they don't have to make big revenues on each customer. >> looking for new solutions and get the money to get it financed. thanks for stopping by, lad. >> always a pleasure. >> that's here from the european banking congress. back to you. >> sylvia, thank you very much for that. we're going to get for a quick break. when we come fwak, we'll check on the global equity markets. we have reporters across the globe to help us do that. tdd#: 1-800-345-2550 if i'm breathing, i'm thinking about trading. tdd#: 1-800-345-2550 i always have my eye out for a stock on the move. tdd#: 1-800-345-2550 doesn't matter if a company sells computer chips tdd#: 1-800-345-2550 or, i don't know, fish and chips. tdd#: 1-800-345-2550 i'll look at all kinds of stocks before i settle on one. tdd#: 1-800-345-2550 if i think i'm onto something i'll check it out, tdd#: 1-800-345-2550 you know, see what other traders are up to. tdd#: 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markets are generally right now. they're pretty close to the end of the year. his thoughts were that we're seeing a monthly cycle in the equity markets. we're trending higher. so still some more up side yet to come. would you agree with that assessment? do we see more optimism by tend of the year? >> i think you're right. i totally agree with the one month up, one month down. they can one month necessary long can outperform somebody who is net short can outperform. i think probably the trend overlong-term is gradually more up, although it's probably not a steep slant. although i see increased volatility and seeing reactive trades to the latest news item and a time of consensual trades. nos necessarily based on any fundamental view or need express diversification need. and i think some of the people who are -- because it's not something else may have an unpleasant supply in store. this happens over and over again by somebody because it's knot not something else. >> elizabeth, what about gold? is that something you can buy here? we saw a huge purchase by the indian government from the imf. i mean, that pushed gold up into that 1150 area. do you buy gold here city? >> certainly if gold is part of your investment strategy and plays a role for inflation, certainly buy gold. it should be an ongoing purchase and there's a lot of argument, especially in a sort of fairly choppy market to take some of your money off the table when gold runs up and re-enter when it goes down. i think it's a lot of risk in following what is a well established trend because he risk that you may be doing this close to the hike. >> and what sort of risks would you prefer? >> i would prefer a company to have a well expressed, longer term strategy that just makes sense from a fundamental business trend where industries are going, taking on new growth opportunities, whether it's climate change, you know, energy needs, better distribution of things like food, etcetera. i think very short-term trading is very difficult because the markets go up and down partly based on sentiment. >> so wa do you think investors should be doing at the moment, simply avoid that pit fall? >> well, he think it's very important to have a strategy and stick to it. i think one of the lessons, at least i observed from 2008 is some of the investors who have a strategy and stuck to it, even when the wind was in their face, have done really well. i think it's when you change your strategy because the popular, you know, winds and the popular press and stuff are saying something else, then i think you make a mistake because you're following everybody else and jettisoning your own well thoughtout views. >> elizabeth, we're going to take a break here. elizabeth is going to be with us for another round or two. so let's talk about other stories that we're watching here today. the white house is backing treasury secretary tim hothy geithner after he came under secret me yesterday. in a statement, a white house spokesperson says, quote, secretary geithner has helped steer the american economy back from the brink and is now leading the effort on financial reform. secretary geithner went before the joint economic committee thursday urging lawmaker toes pass president obama's financial reform plans. but he faced heavy criticism from several republicans, including congressman kevin brady who asked geithner to resign. >> the public has lost all confidence in your ability to do the job. and it's reflecting on your president. it really is time for a fresh start and i would urge you to consider that. congressman, if you look at any measure of confidence in the financial system, it is substantially stronger today than when the president took office. >> tell all of that to the millions of americans who no longer have jobs because of your decision. >> in other news, the house financial services committee has delayed a vote on the regulatory reform bill until after thanksgiving. and it may not go to a full vote on the house floor until mid-december. dell third quarter profits fell to lower than expected. they've losing consider shares to acer. dell's margins fell during the quarter as it fell pressure on component costs. but executives are optimistic about demand going forward and they expect to see a wave of microsoft window 7 related buying going forward as companies look to replace old equipment. dell was down 6% in after hours trading, continues that trend in frankfurt, becks. >> well, the european union has its first president. herman van rompuy was appointed after weeks of debate. he was a low profile choice, really. leaders passed on the likes to give tony blair the position. but britain has also filled a position in baroness. >> the japanese economy, the japanese government said the economy has slipped back into the deflation. in its monthly economic report, it added there is a risk of another recession if deflation persists in the world's second economy. the announcement came as the boj kept interest rates near zero. the cabinet office says that it expects the central bank to keep a flexible monetary policy in order for the economy to return to sustainable growth and price stability. becky, back to you. >> let's take a check around the global equity markets now beginning here in the uk. let's take a check on the ftse 100 which is gaining ground. we're adding .6% or so, about 30 points, which is probably a relief for some people because of how three days have seen the uk markets losing ground. we lost about 115 points or 2.1% for all the past three trading days. so finishing the week on a relatively positive note. let's look at the gainers. the reason we're seeing markets adding a bit of ground today, the ftse is supported by mining strokes for a start. cable and wireless is an interesting one, as well. the shares adding about 2.6%, an upgrade from the analysts from jpmorgan. they have upgraded the shares from a neutral to an overweight. the stock has been underprrchbling the markets recently. and cadbury, as well. we've mentioned this story to you earlier on. and the share price reaction, as well. cadbury bid talk is intensifying as you can see from your screens there. dow jones is reporting the talks between the talent between ferrero and hershey are hopping up on a possible joint bid for cadbury. they could go for a full takeover or decide to take a large stake in cadbury which would block efforts by kraft to get their hands on that company. shares of cadbury are reacting, just higher by 1% or so. stephane, out to you. stephane pedrazzi is in paris and has more on the french trade today. >> the french marketing is recovering after a 1.8% decline yesterday. we have alcatel-lucent saying that the company has a target for its margin next year at 5%. and also it's planning some additional cost reduction on top of its ongoing problem of 750 million euros. alcatel-lucent still believes that the market for telecom equipment will grow between 0% and 5% next year. it's still trading higher at 1.5%. we have themaker of danone, the maker of dairy food drinks adjusting their target for the next three years. it's the top gainer of the cac 40 right now. on the other end of the board right now, vivendi is trading lower after the financial times says the company hasn't reached an agreement with general electric for the sale of its 20% stake with nbc universal. the companies are at least $1 billion apart in their valuation of this 20% stake. let's have a look now at the asian markets with saijal in singapore. >> hi, stephane. we didn't see a big reaction to the boj's decision, leaving interest rates steady. thatexpected. they did surprise some in upgrading their assessment of the economy and putting it at odds with the government which is worried about deflation. we saw a sell-off in the exporter stocks, sony, after it failed to impress investors about that saying it wanted to turn around the tv business as well as the video game business. greater china, we did see concerns there, as well. the shanghai composite closing out at 0.4%. the kospi, know, ending pretty much flat there. we with saw gains in thebacking stock underlying the chip factor. now back to saijal in the u.s. snooze alarm friday because we have no data coming out. however we have some earnings before the bell. on the retail side, anntaylor will be out. we'll hear from dr horton and peanut butter and jelly king jm schmucker. that, folks, is your global stock watch. still to come here on "worldwide exchange," the u.s. treasury secretary has been asked to resign. . and europe has its first president but nobody seems to have heard of him. all right. it's 30 minutes past the hour. these are the top business stories making headlines around the globe. in the states, the white house standing firmly behind timothy geithner, the treasury secretary, as some in congress call for him to step down. >> i'm becky meehan. in europe, we have a new president, but who is herman van rompuy? >> and here in asia, the japanese government says the economy has slipped back into deflation. >> all right, folks, welcome. we are rolling into our final half hour of "worldwide exchange." we begin as always with a peek at the u.s. futures. not a giet move. you would be about 30 points down if the dow were to open now. all this talk about tech trouble may be immature. well start with a peek at the 10-year treasury yield, which is little changed at 3.34%. >> we have seen gains for all the major european markets today. the ftse 100 now, only about .4% higher now. the dax just shy of .4%. the cac .4%. and the smi just shy of .25%. let's take a look at the dollar/yen, 88.80. the euro is roughly losing .3% against the dollar. sterling is lower, down by 0.8% versus the dollar at 1.6531. and euro slshl sterling, we're seeing euro strengthen against derlg to .8996 is where we stand. chloe, how has it been going in asia? >> well, managing inflation expectations could be quite a challenge for the government. take a look at the shanghai composite. reports that the pboc could raise bank reserve requirements. the hang seng losing steam for four days in a row. the nikkei off about .5% today. these comments coming from the government and the boj, what appear to be painting a very different picture of the economy while the japanese economy is saying that the risks are there for a double dip. meanwhile, the boj keeping interest rates intact and the aussie market under quite a bit of pressure, as well. energy tracking lower, $77.20 for nymex light sweet crude. brent, as well, currently trading at $77.45. matt. >> joining us now for market strategy at insight, michael gurger and elizabeth carey for a few more thoughts. michael, let's start with you. you're our new voice here. what do you make of all this geithner talk? he craftily, you might say, said every measure of investor confidence is positive and avoided every measure of economic improvement has improved. >> you know what? this was some of the rumblings you were hearing over the last year. there was nothing of foundation to that. right now, if you're starting to see any inkling of any of his constituents grasp what this could trickle into, you have a confidence scenario that could lead to something substantial. but you know, if there's ever this vernacular in the marketplace, i think the best place to gauge that would be somewhere around the curve in the ten-year treasury. i don't care if it's necessarily how the 10-year looks, but if it's some of the cross rates of the yield's duration over ten years. right now, i don't see it. but for the same reason, i think it's almost immoral to start looking after the fact at how things could change or be perceived into the future and how our legislative body could spill into the s.e.c. i think that right now, at least, stability is what's gotten us through this. and right now, the volatility measures that could come into the marketplace from something like this could be substantial. but i'm not putting a lot of weight to it. i think the markets right now are at a little bit of a pause. right now, i think this could be the dynamic that shakes us up for the week. >> briefly, there is a growing angst out there about the fact that a double dip recession is the probability. and with debt at an all-time high, unemployment at a firm 10% or 17%, depending which measure you want to look at. this economy needs something and it needs it quick. >> yes. and right now, the jobs forecast has always been in the forefront, not just on every four week scenario, but how the weekly and initial claims are start to go pan out. for me, at least, i think some of the things i touch on as far as stability in the marketplace are starting to show up in the economic foundation of how we're progressing forward here. i mean, the markets are always going to be forward indicators and there is so much optimism growing on this thirst for yield and the equity markets. but i will mention that the scenario that you're seeing today where the dollar has recovered substantially against a lot of these currencies and, of course, we're seeing some of the commodities such as oil at least starting to come off, also. i think right now, at least, what you're seeing is a little bit of mix-up as far as profit taking in some scenarios and others, i think you're seeing fundamental belief in the marketplace that things are going the take place for that time. for that inkling, i think the double dip recession will start to come back. i know a lot of people are seeing what they're thinking is not the same as what they're seeing behind the curtain. right now, at least, i am very positive in technology. i think asia's equity markets tend to have substantial pullbacks. that handoff that we've had for myself, at least, as a technician in the marketplace, the german dax has been a forward indicator of how that has looked. for mess, those fundamental bases are something that we like to look at in the marketplace. that takes us back to the old school where you start to see these relationships between equities and fixed incomes in an inverse relationship. >> elizabeth, michael pointing out there that lots of people are saying that what we see in the markets isn't the same as what is behind the curtain, as he puts the it. what are your thoughts on that front? >> well, i would tend to agree. i still think there is a lot more pain. it's unrealistic to think it would all get resolved in one year. i think we have chronic weaknesses in key markets like housing, obviously, unemployment continues to be a real problem. so i think you're going to see a very bumpy road and uneven timing to recovery. i think you're still seeing -- you're going to see a slow unfolding of jun just ongoing restructurings of companies as they adjust their capacity to the real market and i also see a certain amount of -- or i believe i see a certain amount of slight into the dollar as sort of a safety. and then when people's risk appetite gets stronger again, they sell the dollar for more risk assets. so i see a certain amount of today i feel risk averse, i'm buying the dollar. tomorrow i'm not, i think i'll buy risk avergesies. >> if you are bullish from the tech sector, the dell earnings impacted the sentiment out here in asia, would you buy techs on dips? if so, what kind of techs? >> well, actually, the way i would do it is just as mentioned, i think one of the best and hidden stories of this entire year has been the composite index of taiwan. put that up on a screen any time and transpose some of these other emerging markets over that. even though that is a heavily laden technology type of index, because of where they have been and where they're going, i start to see the factors of how the dollar has come off, what currencies have been reaping the benefits of that move and extrapolating those type of procedures of cleaner payrolls because of job rukdzs and companies really instruct turning their balance sheets for the better. and it comes out to an equation of, boy, smart money was really doing well. and i think the diversification of going overseas, taking those cross rates of the dollar doing well for those countries against the u.s. and extrapolating that into the field, as a composite, i think you'll see whior economies in asia and taiwan have done well. those are the type of scenarios that will do well going into 2010. when you do well, there is that big commodity play inherent in these markets and that is why i think you're seeing the wealth spreading their money across the curb, through other countries, and it's very evident that main street knot going to put all their money just in dell or private investors or the institutional side. but what we see is that the fort earnings are starting to look much better and they should be. if you're thinking that everything is going to be based on demand, i think it's a much bigger picture than just that. >> okay. let's say thanks to you both at this stage. michael gurka and elizabeth carey, thank you both for joining us. michael will be staying with us with for quite a bit longer. >> becky, just when you thought we couldn't give any more at "worldwide exchange." still to come, some investors are originaling shareholders to give a little more, share the wealth, to so peek. woman: attention, progressive shoppers. check out our pet injury coverage. when progressive covers your car, we cover your pet at no extra charge. [ purrs ] that's was a cat. protecting your pet -- now that's progressive. call or click today. is simple -- check us out online. or talk to a local, independent agent like me. there's one of us near you. either way, shopping is... easy. jinx. easy. jinx. double jinx. double jinx. mm. shop on your terms. prices vary, based on how you buy. all right. welcome to cnbc's "worldwide exchange." some of the top stories that we're tracking at this hour from around the globe include -- well, the house financial services committee. they have approved a measure that could impose more scrutiny on the federal reserve. the provision would accept the gao to expand audits of the fed to include interest rate decisions and bank lending. the amendment, sponsored by texas republican ron paul, a long time critic of the fed and one time presidential candidate. he says the bill would hinder monetary policy. the fed has been largely shielded from politics since the 1978 law was passed that blocked congress from reviewing its monetary policy operations. some of goldman sachs biggest shareholder res saying, you know what? you should cut back that bonus pool and give known to us. $17 billion is in that fund and they say if that money were redirected away from the goldman employees and bonuses and into, well, the company's covers, it would help earnings per shares and, therefore, their over aall profitability. goldman sachs has already committed to donating monies to its charitable foundation and it is working to help small businesses with a $500 million contribution to help them with their financing, as well. guys, back to you. >> yeah, i'll pick it up from here. matt, let's talk about some of the top european news. now, the eu president of the eu has its first person, in fact, herman von room boy. britain has filled the foreign affairs job in the form of baroness catherine ashton. the two leaders take effect in january. and it seems ferrero and hershey have a sweet tooth and cash is no issue. according to dow jones sources, they have $ billion in what is jibd as a friendly offer. they're still deciding whether to take just a portion of the company or whether they want to take over the entire company. with about 250 planes on order, air forces around the world have been waiting the a400m as a replacement for the hercules transport plane. however, the delivery of planes has been delayed until 2013. coming up next, we will look at the trading day on wall street. tech stocks are once again in the spotlight. dell missed expectations. that many likely have an kwakt there. folks, welcome back. we bring in michael gurka. he is the global asset strategist in power global funds. michael, the bear case did have traction here today. they have been stampeded by the bulls for a long time, particularly over the past month. the month of november has been a very, very bullish month. what do you think here, is there a change of sentiment or is this going to be another one of these dips that turns into a buying opportunity? >> i think there could be a change in sentiment. but another case for that movement would be the fact that we never got that sell-off in october of proportion that we usually see on a historic basis. and that could trickle down to this part of what we're seeing now. what i'm seeing more is more quality buying on dips and i think that's leading to better support where we would rally to the voracity to the upside here. but i see that 58 target in the dax remaining substantial, i have no problems seeing this market hold those levels. gold comes off a couple hundred or we start seeing the krun maneuvma crude maneuver. but i still think that the warren buffetts of the world have shown us the common sense and infrastructure plays and things like that right now are going to relatively come back into the marketplace because they do make sense and it's something that you can get out of the marketplace. right now, at least, i think the fed has done a very good job relieving so much nervousness into the marketplace that it's almost complacent to realize what's happened in such a short period of time. for those reasons, i think that's where people can go back to looking at those resistance levels. >> michael, i want to talk more about the fed but i want to bring in my friend and colleague, joe kernen for a peek on what's coming up on "squawk box." >> nice do you see today, matt. nice for you to be here today, matt. >> thank you very much, joe. >> you know, we have a show that comes on at 6:00. it depends on the show before it to hold viewers and to give us a large feedin. what happened yesterday, exactly? >> you know, joe, it's a long story and it has to do with, well, children and -- >> was it the faa? >> spontaneous traffic jams on the cross bronx, predawn traffic road closures, anxiety, it was not a pleasant experience. >> thank you for sharing that with our global audience. >> okay. let me get to this. he's a little uncomfortable. the state of the states. we will go around the nation. we you a some economically stressed out problems with these states and find out how they're dealing with unemployment and plunging home prices and we found one state that's thriving in the down economy. i wonder which one that is? utah, hawaii is in the? i don't know. david walker, we also have president and ceo of the peterson foundation. and former controller general always has plenty to say about the deficit. now he's taking his message to the youth of america. he'll tell us about the latest venture and comment on tomorrow's debate and vote on the senate's version of the bill. this is -- a lot of people talking about that. former fannie mae ceo now head of a giant fortress, daniel mud will talk about real estate, the mortgage market, overhauling financial regulations, all that and more at 8:00 a.m. eastern time and we'll check market sentiment with our guest host today, tony kra senzy. "squawk box" starts at the top of the hour. i'm going to toss it back to matt nesto and hopefully he's there. but i don't have a high degree of confidence. >> joe, my guess is it's montana. just put that on the record. thank you very much. appreciate it. appreciate all you do to keep me honest. >> no question. >> all right. let's get to michael gurka. michael, we talked about the fed independence, there's a move to reign them in. and obviously, the fed is going to fight that. the white house is going the fight that. economists are going to fight that. but congressmen are going to say, well, if you were doing such a great job, why did you let us get in this mess in the first place? and they have a pretty strong case, don't you think? >> well, you know what, it's funny how you word that. it's a perception of a great job and who is looking back at their own work and selling it like that. again, i think what happens here is there is a lot of work to be done and the gun went off and it's far from over, so let's not judge it too early. the market is a good indicator of what's right or wrong and how it's going to be perceived. right now there's a rosie outlook. i'm watching today to see if we can be off triple digits or not. if we go in today and see this market react mildly, i think it's a positive. >> michael gurka, thank you very much. >> that's it from all of us. please stay tuned to cnbc. later today, maria bartiromo has an exclusive interview with the ceo of vodafone. somewhere in america, there's a home by the sea powered by the wind on the plains. there's a hospital where technology has a healing touch. there's a factory giving old industries new life. and there's a train that got a whole city moving again. somewhere in america, the toughest questions are answered every day. because somewhere in america, 69,000 people spend every day answering them. siemens. answers. the exchanging world is at the heart of the collaborative economy. and collaboration is good-- no one has a monopoly on good ideas. we have at least half a dozen relationships, 50 percent of my time is spent outside our company, collaborating with other companies, finding the next cure for the most serious diseases. the global opportunity is a fantastic one. we're able to reach audiences, connect with them in their local cultures and take our brands around the world. nyse euronext. powering the exchanging world. boehner. dreier. good morning. from wall street to washington, congress pps a key vote on financial regulation. green lights a piece of legislation audit the fed by our friend, ron paul. snd some e-mails if you'd like to see more ron paul. we've only gotten about 16,000. plus, dell shares under pressure following a disappointing quarterly report. and oprah prepares to say good-bye. the countdown has begun. but we're going all the way to september 2011. today, the talk show queen does plan to announce the end of her long running talk show. "squawk box" begins right now. >> good friday morni