For business after his coalition sweeps the country with a solid majority. Shares fall after italys Third Largest bank is forced to double its capital hike. It hopes to have a Restructuring Plan in place within a month. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. Good morning, everyone. Welcome to a brandnew edition of Worldwide Exchange. Ross is out today. Lets get back to one of our top stories. President obama will tape interviews with several u. S. Tv Networks Today as he continues the push to take action against syria. The president will address the nation in primetime tuesday night. He dropped in on a dinner hosted by Vice President biden for Senate Republicans on sunday and will meet democrats on tuesday as Congress Returns from their summer break. White house advisors will hold classified briefings for lawmakers this week and took to the sunday talk shows to stress that any u. S. Military strikes would be limited. This is a targeted, limited, consequential action to reinforce this prohibition against chemical weapons that unless we reinforce this will proliferate. Whats the point . If youre outlining what its not, what is it actually accomplishing that forces assad to never use these weapons again . Heres what it does. It degrades his capacity to use them again. It also makes him think twice before he goes into these dastardly weapons again. The u. S. Senate can vote this week. The white house may vote next week. President obama faces an uphill battle as polls show. About half of congress is still undecided. Meanwhile, syrian president Bashar Al Assad is denying claims he used chemical weapons on his own people. In an interview to be aired today on cbs assad insists there is no conclusive proof such an attack even took place. He challenges washington to produce evidence proving his involvement. The u. S. Secretary of state john kerry has dismissed assads claims saying the evidence speaks for itself. That comes as kerry continues an International Tour aimed at gaining support for military action against the assad regime. Speaking after meeting the arab league and nine arab Foreign Ministers in paris, he says a number of countries have endorsed a u. S. Statement released at the g20 meeting in st. Petersberg calling for a, quote, Strong International response. Kerry is now in london for talks with the u. K. Government falling an e. U. Foreign ministers statement insisting there was, quote, strong evidence the assad regime was behind the alleged use of chemical weapons. John kerry is due to hold a press conference with u. K. Foreign secretary william haig any minute now. We, of course, will bring you that live on this show. We have our middle east correspondent outside the ministry of defense where kerry will be speaking. She joins us on the phone. Hadley, what is kerry trying to achieve here . We know that the house of commons voted against a u. K. Involvement. Reporter good morning, carol. Were at the foreign office. Well hear from foreign minister William Hague. Despite the support from pal lamt, mr. Hague said it would be an alarming moment if action is not taken. Weve seen secretary kerry gaining support over the last 48 hours. He says now that countries who support action in syria are in the double digits. First in france we saw the support, and then members of the arab league. This is the possibility of a u. N. Security Council Resolution. Thats where the support of mr. Hague, the support of the British Government will be most helpful. While the secretary and mr. Hague are meeting here in lyndon. The Russian Foreign minister and the syrian foreign minister are going to be meeting. Well have to watch that. Hadley, thank you so much for that. Syria was also a key topic when ross sat down with director christine la guard. He asked about thats not the agenda of the g20. The largest economies of the world discussed that it was geopolitical, that it had to do with syria. They did not reach unified conclusion for sure. But they were never going to. They were never going to, thats exactly the point. At least they were able to express their views to make progress, to express a joint concern about the sheer use of those weapons and i think that there will be further progress, but i thought it was a positive dialogue. What gives you confidence to say you think there will be further progress. Because as churchill will say, its better to chat chat than war war and there was a lot of chat chatting in that room that i could see. The rest is their issues. I wouldnt comment further on that. As a witness, very privately because it was very much an exclusive discussion among the 20 leaders and the heads of international organization, there was a lot of chat chat. Joining me now in the studio is anthony dworkin, senior policy fellow at the european policy and anthony from the our asia group. We may be switching off to go to the press conference any secretary now. Kerry is trying to sway people at home. At the same time is he trying to get a u. N. Security Council Resolution here . Hed like to have a u. N. Security Council Resolution but, frankly, i dont think hes holding his breath. Hes trying to build up the number of countries that will back the u. S. He cant expect to get a resolution through. What do you think . Well, i dont think its about the u. N. Anymore. Its a u. S. Decision. Its about National Interests and upholding national laws. Its difficult to see how the russians and the americans could reach a compromise over this issue waiting for the u. N. Report, for the investigation and a compromise. I dont think its likely. Obviously obama faces an uphill battle this week. Last week was pretty much about establishing the facts, about establishing the fact that they used chemical weapons. This week its all about the personalized approach. Do you think obama will be successful . The most recent polls or most recent indications would say otherwise . I think the president has to do some serious work in building a case for intervention in syria. Hes done a great job in convincing congressmen that assad has used chemical weapons. Now he needs to move forward and convince these congressmen why intervention in syria will not lead to a broader regional conflict and why it will not help u. N. Security interests. Its a tough battle but well see a very aggressive push in the next two days. Anthony, do you think its wrong for president obama to go back to congress. He may win the senate vote, but what about the house . That looks a lot more difficult. Has he boxed himself into a corner there. I think it was a big gamble. I think it shows how isolated he felt after the british vote in the house of commons. He felt simply that he couldnt it was too much of a risk. Obama has always been very reluctant to get involved in syria. Hes doing this because he drew the red line but i think he felt weary of it himself and he wanted more support. Its a big gamble. There must be a serious chance he wont get that vote. Just very quickly want to bring in the latest from the Russian Foreign minister. Russia and syria urge the u. S. To focus on convening peace talks. Is there still a way for a diplomatic solution to this . Well, i think there is. Its tough negotiation. You have to bring the two sides together and convince them to end and its only a political formula that would stabilize syria. The details whether assad is part of that solution, who in the regime is part of the process. These are the real controversial issues. But with the russians and the syrians, theyre trying to convince the u. S. That the regime would be willing to move forward with negotiations if they actually if the u. S. Changes its mind about an attack. Lets come back to the Congress Side of the story. What happens if the Senate Approves this and the house doesnt . What will obama do . I think its very difficult to see the president move forward against the wishes of congress, the wishes of the American People here. Overwhelming support for this resolution is needed. Obama went to congress for political cover. If congress doesnt provide the cover, then i think hell reconsider. Anthony, in your notes its quite interesting, you bring out the costs of a strike. If its a limited strike the costs would be limited as well, but if it turns out to be a longer one, the republicans are definitely not going to vote for it because theyre the spending weary part of the congress. Sthaerthats right. The issue at the moment isnt the economics its the fear of being sucked into a war and its the fear of empowering al qaeda. Theres the sense that some of the people fighting against assad are plenty unpleasant people. But obviously one of the reasons the u. S. Doesnt want to get sucked into a quagmire in the middle east is because its very draining financially. The republicans, i think its very interesting. We see now a real shift in the Republican Party against the sort of you know, against government. Part of that is against expensive foreign operations that can get drawn in. I think the very key thing here is going to be about the press is he dent for iran. The American People dont care about getting involved in syria but there may be some that care about showing israel that theyre not going to tolerate a Nuclear Weapon in iran. That is the administrations last hope. Would you agree with that . Is it all about iran . Not really. Syria and iran were two different cases. It was very clear a Nuclear Weapon is a Nuclear Weapon. The destruction that could bring is very different. There is no linkage between the two issues. What the president and the white house is trying to do is to convince the American People that this will affect that. Its a gamble. He will lobby against the intervention or darvish interventionists in congress. It is a risky strategy. Were still waiting for that press conference. U. S. Secretary of state john kerry is expected to hold that press conference with u. K. Secretary William Hague. Were waiting for it to begin. Well bring it to you live as soon as it starts. The latest Economic Data out of china continues to suggest a more stable growth track. Consumer inflation held steady in the month of august while factory prices eased less than expected signaling some over capacity may be clearing. Trade data showed solid import data as well as china ben knitted from the u. S. Recovery. Lets check in on how markets have been responding to the sort of Economic Data and other factors playing in the markets. Thank you for that, carolyn. The latest data boosted Market Sentiment today as we see that august inflation comes insteady while trade data came in strong. The shanghai composite jumped 3. 4 today with financials and the free trade zone programs was lending support. Meanwhile, japan among the top gainers after the olympics and the gdp. It gained at 2. 5 today, the nikkei. Other markets broadly higher. Australia also got a boost from the china data and decisive election win from the conservative coalition. A surprisingly strong showing in todays trade for mainly banks. Solid Economic Data may be one of the reasons. According to local media, this was boosted by hopes of the preferred shares program. At bank and pudong bank may issue shares to refinance. Shares surged the limit up by 10 . Moving on to some top gainers in tokyo. Contractors soared with ty say corp. Japan last hosted the olympics in 1964 and some of the other real estate stocks, cement and steel makers, and even sports wear Companies Like mizuno chalked up big gaks. Thank you so much for that. Lets check in on how european markets are fairing on this early morning. We are pretty even steven here. We are currently higher by just a smidge sitting at 306. 246789 lets take a look at the individual markets. The cac 40 is up by around 1 10 of 1 . Remember, european markets are pretty strong gains in last weeks session. Overall they were up by almost 3 . Not too bad. Nynex crude is trending a little bit lower this morning. Off by. 4 . Brent crude falling below the 160 level. Down by around. 25 . The chinese data did give a little bit of a boost. We have this delayed response to syria which is putting downward pressure. Spot gold up by 1. 3 . Below that 1400 level at 1,386. In the bond raids, well, big week for the bond markets last week as a number of psychologically important levels have been taken out, especially for the ten year treasury, ten year gil. The ten year bunds is 1. 96. The ten year gilt is at 2. 93 . In the foreign markets, the yen. Tokyo won the 2020 olympic bid. The yen is below the 100 level. The aussie dollar getting a nice boost from the chinese Economic Data. The impact from the elections wasnt too big so youre a dollar at 1. 3180. Russia and syria are urging the u. S. To convene peace talks rather than focusing on military action. The Foreign Ministers are speaking in moscow right now. We will keep you updated, of course, on their comments. And u. S. Secretary of state john kerry is due to hold a press conference with u. K. Foreign secretary William Hague. Were waiting for it to begin and well bring it to you live as soon as it starts. Well be back in just a second. Announcer youre watching Worldwide Exchange. Welcome back to the show. Let me update you on the latest coming out of syria regarding syria. Russia and syria are urging the u. S. To convene peace talks rather than focusing on military action. The two Foreign Ministers are speaking in moscow right now. We will, of course, keep you updated on their comments. Meanwhile, of course were still waiting for the u. S. Secretary of state john kerry to hold a press conference with u. K. Foreign secretary, William Hague. We are waiting for that to begin. It should be beginning imminently. We will bring that to you live as soon as it starts. Lets change tabs. Shares have fallen sharply in early trading. This after the bank was ordered by the Economy Ministry to double its capital hike and cut costs to secure a bail out. The fds says it hopes to reveal a restructural plan. They hit back at comments made calling the bank italys black hole. Translator i got angry with mr. Rabini who has invoked the return of political power inside the bank. As a matter of fact, political influences caused our problems. Thats unacceptable even from an intellectual point of view. I didnt meet him here and i couldnt ask him what he meant. Im telling him clearly there is no black hole. I recommend him being more cautious when talking about a listed company. Lets get out to claudia who was at the forum over the weekend. Claudia, what happens to bmps if this capital hike fails . Would it have to go to the government . Can they even afford it . Well, thats the big question of course. 2. 5 billion is really more than double what we were expecting them to have to go to the market for, and over the weekend after the political accord was found, the details still have to be worked out. 2. 5 billion euros means that if its not underwritten, the bank can be nationalized. If it is underwritten, it can be structurally changing hands. The historic major shareholder which was a foundation has 33 and is expected to be diluted, could actually fall below the 10 level which is what they were aiming at. It will be interesting to see whether it changes hands or not and also how the bank will change in the future. It is expected that they sell a lot of assets. Theyll be disposing of about 100 branches and the 29 billion in Government Debt that they hold needs to be reduced. These are the numbers that we will be sort of digesting in the next days. Well be waiting to see what they have to say about how this Restructuring Plan needs and will be changed in order to make due with what is being requested of them in order to hold on to those 4 billion euros in bonds that they have received. Nationalization, mna, the market is clearly right now mostly concerned with the capital hike issues of them being so large so being penalized is them being down 3. 7 . Mna could move in. Italys oldest bank is in the news and has been and will continue to be in the next days as we do try to get these numbers out and see how they plan to face this issue. Will it or will it not be nationalized. Thats the big news here today. Claudia, thank you so much for that. Were still waiting for the press Conference Held by mr. Kerry and mr. Hague to kick off which is taking place in london and should be kicking off imminently. As soon as we get it, of course well bring that to you live. Were still waiting for that press conference to start imminently. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. U. S. Secretary of state john kerry continues his European Tour to drum up support for a military strike in syria. Hes due to hold a press conference with u. K. Foreign secretary William Hague any minute now. Russia warns that a military strike against the assad regime could cause an outburst of terrorism. Speaking in moscow right now. Shanghai surge is more than 3 as august data toind signal stability and financials rally in anticipation of new rules to allow preferred shares. And australias Prime Minister tony alba declares them open for business. After they sweep power ending six years of labor rule. Russia and syria are urging the u. S. To convene paeeace tal rather than focusing on military action. The Foreign Ministers are currently speaking in moscow right now. We will keep you updated on their comments. Of course, u. S. Secretary of state john kerry is set to hold a press conference with u. K. Secretary William Hague. Were waiting for it to begin and will bring it to you live as soon as it starts. Well have instant analysis for you as well. Meanwhile, lets check in on how european markets are fairing this morning. We are pretty klatt in terms of the european markets as well. Ftse 100 is off by. 2. There are also losses around 1 3 of 1 . Foreign markets were up by a percent. In the bond space, yields have been ticking lower, specifically in the u. S. On the back of the disappointing u. S. Jobs report. The ten year treasury yield is back below the 3 level at 2. 9 . The 10 year bond yield at 1. 96 and 10 year gilts yield sitting at 2. 94 . In the foreign markets, the dollar certainly got a knock on the head on friday after the disappointing jobs report and has recovered a little bit against the yen. It is up by around 1 3 of 1 . This is also related to the tokyo 2020 olympics victory because this is fueling equities. Weve got this inverse relationship with the yen. Yen weakness. Sitting at 13185 unchanged on a day. Tony abbott will become australias new Prime Minister. They swept victory over the weekend. He will govern with a 30 seat majority and has vowed to get straight to work. Matt taylor has been following the election for us. In the end the polls were right. A comfortable victory to tony abbott and a liberal National Coalition which has stormed to power with a sizeable majority. Friends, my friends, thank you. Thank you so much. I can inform you that the government of australia has changed for just the seventh time. Reporter it was the worst result for the labor party in around 100 years switching between Prime Ministers twice over the past six years doing the alp and kevin rudd no favors. Mr. Rudd who received a heros welcome at his post Election Party in brisbon is credited with stemming bigger losses than were predicted under his predecessor gulian gill lard. I know labor hearts are heavy. As your Prime Minister and parliamentary leader, i accept responsibility. I gave it my all, but it was not enough for us to win. Reporter despite the speculation it would swing to the lnp, mr. Rudd also held on to his own seat but he announced hed be standing down as leader of the labor party. I have been honored to serve as your Prime Minister and as your partys leader, but there comes a time when you know youve given it your all and a time for the party to further renew its leadership for the future. For me, that time is now. Reporter Prime Minister elect tony abbott wasting no time setting out the new governments agenda as he becomes australias 28th Prime Minister. From today i declare that australia is under new management and that australia is once more open for business. Reporter former Prime Minister john howard who was defeated by kevin rudd in 2007 believes mr. Abbott ran a strong campaign. His government will be different from mine. It will be a good government. It will govern according to the long traditions of the liberal party but it will be different. He will bring his own style and stamp to the government of australia and it will be a fine style and a fine stamp. Reporter and in a big upset this election, clyde palmer remains on track to win his seat in the state of queensland. The big slice of the national vote, the Palmer United Party also looks set to win a seat in the senate. Matt taylor joins us live from sydney. Matt, how much of a change is this really going to mean for businesses . I know abbotts been saying hes going to be more business friendly. What can businesses really expect . Well, carolyn, business and economists have been calling for a change of government, not so much with respect to the policies but just for stability and a lack of surprise. The previous government under kevin rudd and Julian Gillard were criticized for not being consultative. They want tony abbott to be a little more consultative. They dont want surprises out of left field. There will be changes. The carbon tax and the mining tax will go. There is a 1. 5 cut to the Corporate Tax rate. There is also a levy on the 300 top businesses here to find the paid parental leave scheme. Lets bring in our next guest. Joining from us sydney is mike elliot. He is the Global Mining and Metals Leader over at ey. Mike, thanks so much for chatting to us. Tony abbott says hes going to reboot the Australian Mining boom. Hows he going to do that . Well, i think theres probably five key things that the incoming governments going to do. As youve already mentioned, matt, they have their policy intention of both removing the Mineral Resource rent tax and also the Carbon Pricing also known as the carbon tax. Probably more importantly, i think business is really looking for a reduction in regulation that has increased significantly under the last government, particularly this reduction in red tape and green tape should be a significant boon to reactivating some of that Mining Investment that has stalled recently. And for the troubled expiration end of the sector, an announcement last week by the now incoming government that they will look to have a flow through share scheme which will help support Capital Raising for the junior end of the sector. The fifth part, which i think is probably sums of what you said before, matt, the lack of consultation that the sector felt that they had with the last governments going to be addressed with the coalition nominating that theyre going to have the Resource Advisory Council which will meet with government to really look at policy implications of the government on the sector. A number of the Big Mining Companies under the previous government or the outgoing government of course raised the sp spector of the mining tax being announced. What are you hearing from the International Community which as a result of that became a bit scared to invest in australia now that we have a change of government . Minings very much a longterm investment place. Anything that comes with sudden shocks clearly undermines part of that investment. This consultative part removes some of that shock part. Policy change can actually occur but its got to work within the investment cycle. Thats some of the issues that weve seen around the debate with the mining tax. By contrast, it is very much a longterm tax and, you know, if handled differently might have actually come up with a different reaction from the sector. Were still digesting the results of this election. It does look as though tony abbotts going to have about a 30 seat majority in the lower house, but the senate looks a little bit problematic. Looks as though theres going to be about eight independent senators comprising the senate. Tony abbott is going to have a lot of work to do trying to convince them to support his legislative changes. Do you see that potentially being a problem for an Abbott Government . Look, it certainly is because its the same degree of challenge that existed with the last government of trying to exercise authority with a minority rule, but in practice business is going to stick with what they already know. So i think that youll find that most of the major mining houses are probably going to still work as if some of these taxes might take much longer to be removed, if in fact they can be removed at all. I dont think theres going to be an immediate acceptance that these things are going to change overnight. But they still would be focusing on these as important elements to try and reinvigorate some of that cost competitiveness thats necessary and clearly the rolf the individual minority senators that are going to form part of this new senate will have to look at overall, you know, the health of the economy, the health of the industry as part of their decision making. All right. Mike, weve got to leave it there because we are out of time. Thanks very much for coming to chat to us. Mike elliott, mining and Metals Leader over at ey in sydney. Carolyn, on that note ill hand it back to you from very nice evening here in sydney. Back to you. Matt, thank you so much for that and fantastic job covering the australian elections over the last couple of weeks. Im sure its been quite a stressful time. Meanwhile, we are still waiting for u. S. Secretary of state john kerry and his counterpart, u. K. Foreign secretary William Hague to kick off their press conference here in london. We are waiting for it to begin and we will bring it to you live as soon as it starts. Germanys Angela Merkel rallied supporters at a campaign over the weekend with just two weeks to go before the election, the chancellor, who leads the race, warned that her rivals could still unseed her. It comes as a poll by fgw shows it has fallen sharply. Annette, looking at the Weekend Press in germany, she warns about this rude awakening that could be coming in two weeks time. She warns against complacency. How likely is a rude awakening likely for merkel . Its not likely. She wants to rally her supporters to go to the polls because thats the biggest threat the christian democrat is facing, theres too much complacency sentences against their group. Theyre sitting at home. There is no sense of urgency. That is what she is fearing among their supporters. Of course, all eyes will as well be on the bavarian election next weekend because that is a crucial test for the liberals, how much support they have left among the electorate. And then the crucial thing is if the liberals perform really poorly, that a lot of christian democratic voters will actually go and vote for them because they want to have that Ruling Coalition as well in place after the election. So what Angela Merkel fears most is, of course, that people dont go to the poll who are her natural supporters. But there is as well the other threat, its more a picture shes evoking now that the social democrats would go together to the far left, which is called the left here in germany, and together they would actually as welcome to 45 majority. It would beat her in the polls, but its very likely because steinbrueck has said he wont go into a coalition with the far left, but there is a yeah, well, there is a risk still in that. Actually, the head of the social democrats would go together with the far left. That is what they are fearing. But the biggest threat, carolyn, as i pointed out is that people not showing up when the vote is on the ballot. Back to you. Annette, thank you so much for that. The germans are all for their colors. Red red green is what Angela Merkel is fearing right now. Lets change back to tokyo now. Still in celebration after winning the bid to host the 2020 olympics. Many are hopeful that that event will give a boost to the recovering economy. We have the story live from the winning city. Do you still feel that sense of excitement as you are at work today . Reporter yes. Yes. Everyone seemed to be overjoyed in the streets still in excitement and its continuing and so is Prime Minister abe excited. He believes the event will definitely be a boost to growth. The stock market rallied with the nikkei index finishing 2. 5 higher. Notable gainers were general contractors and Property Developers since hosting the olympics will bring a demand for construction projects. It jumped 14 while shi my zu was up 8 . Real estate gained the most finishing up 5 . According to the plan presented over the weekend, the event will be centered within a five mile circle within the citys downtown area, including a developing waterfront neighborhood. Many assume they will be given a makeover. Tourism is also expected to gain as 8. 5 million tourists are estimated to visit benefitting hotels, restaurants and transportation. Among the most optimistic forecasters, one Research Company predicts it will generate over 40 billion in Economic Activity and could raise japans gdp by half a percentage. Thats all from nikkei. Thank you so much for that. Meanwhile, lets give you a look at whats on the agenda tomorrow. China, industrial output and asset numbers are released. Well get minutes from the bank of japans early august meeting. On the corporate side well get information out of hong kong. Were still waiting for u. S. Secretary john kerry and William Hague to kick off the press conference. We are waiting for it to begin. We will bring it to you live as soon as it starts. Also well get you instant analysis. Our middle eastern correspondent is on the ground and as soon as the press conference is done she will be able to give us her take on the comments. Meanwhile, greek Prime Minister says he has pulled out further aid for the indebted nations. He said that the imf and European Union have promised in 2012 to provide further aid to greece if its stuck with its austerity commitments. He added that he hoped greece would be able to return to the bond markets next year. Speaking at the forum in italy, several Senior Executives of Italian Companies gave cnbc their view on the european economy. Lets listen in. To say we are out of recession, we might be slightly on the optimistic side. For 2013 we will still see a significant reduction of gdp. We are starting to see the first signs of improvement but i think we have to wait a bit. Foreign companies are picking up so we will see some improvements but for the time being they are rather moderate. I think that we are not facing major improvement. I think i think that some sign of improvement of the two economies, especially in spain are coming up. So im optimistic that in the future the next months the economy can start a new cycle of growth. Moderate growth. And were still waiting for the press conference between u. S. Secretary of state john kerry and his u. K. Counterpart William Hague to kick off here in london. We are waiting for it to begin. As soon as we get it, well bring it to you live when it is set to kick off. Well be back. [ male announcer ] ive seen incredible things. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. Middle east Peace Process which has now led to the resumption of direct negotiations between israel and the palestinians. This is a reminder amidst all the difficulties of a whole middle Eastern Region of the progress that effective diplomacy can offer, and i will meet president abas here in the u. K. We will do all we can to provide support to this process. I will remain as we always do to stay close to secretary kerry as we always do. This is a very, very high priority in Foreign Affairs and john kerry has placed it there and given enormous energy to this in the last few months. Weve discussed all aspects of the crisis in syria. The position of the United Kingdom following our parliamentary vote ten days ago is well known. The government, as you know, and the government will fully respect the decision made by the house of commons, but our objectives and efforts between the u. K. And the u. S. Remain closely aligned in four areas in particular. First, working to create the conditions for a geneva 2 Peace Process that can lead to a Transitional Government in syria. Secondly, addressing the desperate humanitarian situation. Third, supporting the maldrid Syrian Opposition in saving lives on the ground. And, fourth, mustering a Strong International response to the use of chemical weapons. Our Government Supports the objective of ensuring there can be no impunity for the first use of Chemical Warfare in the 21st century. As an International Community, we must deter further attacks and hold those responsible for them accountable. We admire the leadership of president obama and of secretary kerry himself in making this case so powerfully to the world. This week the European Union, the arab league and many of the countries of the g20 have called for a Strong International response, and it is to the credit of the United States that, once again, they are prepared to lead such efforts. They have the full diplomatic support of the United Kingdom and i welcome the fact that an increasing number of countries have signed up to the joint statement on syria adopted last week during the g20 by 11 countries during the g20 and i urge other countries to do the same. Secretary kerry and i share the same revulsion of the callousness of the regime that has presided over the deaths of more than 100,000 people and caused more than 2 million to become refugees among the million children. The Prime Minister announced an addition 234582 Million Pounds in humanitarian assistance last week bringing our total to 400 Million Pounds. The United Kingdom will be working intensively over the coming weeks, including at the u. N. , to try to secure unfettered access to aid inside syria and to address the aid short fall working closely with the United States which is working leading by example here as in many other areas. I briefed secretary kerry on the talks we held last week with the president and Senior Leadership of the National Coalition. There cant be a coalition if theyre allowed to eradicate the opposition. Weve discussed ways in which we will continue to coordinate our assistance to them and we reaffirmed our commitment to the effort. Were continuing our diplomacy to russia. At its heart the u. S. u. K. Relationship is an alliance of values, values of freedom, maintaining International Peace and security, of making sure that we live in a rulesbased world so the United Kingdom will continue to work closely with the United States taking a highly active role in addressing the syria crisis and working with our closest ally over the coming weeks and months. And as well as addressing all of these immediate challenges and crises, we continue to Work Together on a whole range of issues from the Trans Atlantic Trade Investment Partnership to somalia to my work on preventing Sexual Violence in conflict which the secretary has strongly supported and, of course, deepening the economic ties that are indispensable to both nations. John, youre welcome, as always, in london here and please will you say a few words as well . Thank you, william. Id be delighted to. And i begin by saying thank you to you for another generous welcome here in london. Very grateful to you and the government for all of your efforts. And im very pleased to be concluding this morning before i go back to brief congress this afternoon on the subject of syria to be concluding here in london a very productive and fairly quick trip to europe over the last couple of days. Particularly grateful to you, william, always for your great hospitality and your personal friendship and i thank you for that. The relationship let me just say also last night i had dinner and a long meeting with president abas who the secretary will be meeting with shortly. It was a very productive and informative session as part of our ongoing efforts in the middle east Peace Process. The negotiators are negotiating. We have said were not going to discuss the substance on an ongoing basis, and were not. Im encouraged even though this have been difficulties along the way in both sides in their countries, in their territory and in the country, nevertheless, they are staying at it and they are not allowing what historically had been disruptions that might have interrupted them from doing so at this time. That encourages me in terms of the determination and purpose and so we will continue this process thoughtfully and hopefully quietly over the next weeks and months. The relationship between the United States and the United Kingdom has often been described as special, essential and it has been described, thusly, quite simply because it is. It was before a vote the other day in parliament and it will be for long afterwards after that vote. Our bond, as will ham has just said, is bigger than one vote. Its bigger than one moment in history. Its about values. Its about rules of the road, rules by which human beings try to organize their societies and offer people the maximum freedom and opportunity respecting rights and finding a balance in a very complicated world. And we have no better partner in that effort than Great Britain. Were grateful for that. Our bond really is a paradigm for international cooperation, and our Work Together on global issues to ensure peace, to ensure stability, to create Economic Prosperity, to help others to share in the values that we share, to engage in humanitarian initiatives around the world and sometimes to stand together against the oppressive steps that tie rayrants take, a those things are what tie us together not just for our two nations but for the entire world. Just a few minutes ago the foreign secretary and i spoke about the importance of our continued cooperation on a full range of issues, from Climate Change to the pursuit of peace between the israelis and the palestinians to our Counter Terrorism efforts to our efforts to promote democracy on a global basis and, of course, to our efforts to bring about an end to the civil war in syria. As i drove in here this morning there were a group of people assembled outside the building as is their right and as people should assemble. Some of them, i heard them saying, you know, keep your hands off syria. I certainly appreciate the feelings, in our country, too, about people who have strong feelings about war and strong feelings about not going into yet some other engagement in another part of the world, but i think it would be good to hear people saying to a dictator, keep your hands off chemical weapons that kill your own people. Protect your own people. I think its important for us to stand up as nations for civility and against actions that challenge notions of humanity and decency and appropriate international behavior. And for almost 100 years the world has stood together against the use of chemical weapons, and we need to hear an appropriate outcry as we think back on those moments of history when large numbers of people have been killed because the world was silent. The holocaust, rwanda, other moments are lessons to all of us today. So let me be clear, the United States of america, president obama, myself, others are in full agreement that the end of the conflict in syria requires a political solution. There is no military solution, and we have no illusions about that, but a resolution to this has to come about because the parties are prepared to come and negotiate that political solution. And if one party believes he can rub out countless numbers of his own citizens with impunity using chemicals that have been banned for nearly 100 years because of what europe learned in world war i, if he can do that with impunity, he will never come to a negotiating table. A resolution will not be found on the battlefield, but at that negotiating table, but we have to get to that table. Were in full agreement with our british friends that the humanitarian situation is obviously dire and growing worse. 5 Million People displaced within syria itself. Numbers of refugees fleeing from that gas into lebanon, into jordan providing an incredible burden to each of those countries and others in the region. This is a humanitarian catastrophe of global proportions. We need to Pay Attention to it or we give license to other dictators or other groups in other parts of the world to engage in similar behavior and just make things worse for everybody. The United States is proud to say weve been the largest humanitarian donor. We recognize that responsibility and were also proud to say that we stand with our friends here in Great Britain who are the second largest donor. So, we dont come to this with a sense that all we care about is some kind of military response. We come to this with years now of effort, literally years of effort to try to bring the parties to the table and create some kind of political solution because that remains our top priority. Our respective leaders made it clear in st. Petersberg made it clear that we need to make sure that atrocities that assad made happen against hundreds of his own people are not going to happen again. Our special relationship with the u. K. Is not just about syria, its not just about our response to this humanitarian crisis, its also about the future in many ways. Climate change, particularly on Economic Prosperity for all of our people. Were not only you know, were both committed to trying to move forward on a trade relationship, to grow jobs for our people and we are not only each others largest investors in each of our countries, one to the other, but the fact is that every day almost 1 Million People go to work in america for British Companies that are in the United States just as more than 1 Million People go to work here in Great Britain for American Companies that are here. So we are enormously tied together obviously. And we are committed to making both the u. S. u. K. And the u. S. eu relationships Even Stronger drivers of our prosperity. Now last month the United States held the first round of the negotiations for the trans atlantic trade and investment partnership, and this is something where we will continue to work closely together because we both believe that working with the u. K. And the rest of the eu to finalize an agreement is going to create new investments to add to those millions of people in both countries i just talked about. Itll create new jobs and it will create growth on both sides of the atlantic. So as Margaret Thatcher put it plenty bluntly, as she did, the u. K. And the u. S. Are real and true friends and our relationship which is grounded in those values of traditions that we both referred to remains as relevant today as it has been in the past and we look forward to continuing to strengthen this relationship and working hard to make Real Progress on the very many challenges that we face in an increasingly complicated and in too many places dangerous world. Thank you, william. Thank you very much, indeed, john. Now were going to have a couple of questions from each side of the atlantic. Carl, you pick them out. James robbins from bbc news. Mr. Secretary, how seriously do you take the new threats from president assad of retaliation, including by his allies, if the u. S. Does strike . That risks dragging the United States further into the conflict. And if brittain had said yes rather than no to strikes, the president would have ordered them by now . Hes now adopted a different tactic building a different Coalition Using powerful moral arguments for action against inaction. The logic of that, surely, is that whatever the votes in congress, the president will go ahead with strikes. The votes cant change his moral position. Well, im not surprised to find here a wellput question that basically tries to get me to answer something that the president hasnt decided. So, i just have to tell you that the president made a decision based on his gut and his best sense of what was best for the United States of america and our congress and our democracy, and he knew it would be tough. He didnt there was no misinterpretation of the vote here. I think thats why the president made a very courageous decision, to go to the congress notwithstanding what happened here recognize that go in our democracy it was important to ask for the congress to also invest in this effort. And i cant tell you that if the vote had been different the president would have made a different decision at all. I think he was thinking about the best way to proceed and he made his decision about the best way to proceed. Im confident the congress is going to listen very, very carefully. It is listening very carefully. Members are doing their homework, their diligence here. Theyve had a lot of briefings in the course of the last week. We will have a full house briefing later today that i will take part in, a full Senate Briefing tomorrow. I believe the president will then talk to the American People, but what i think is important here, i met with a friend of mine who is a member of the British Parliament who was telling me here that even still there are some people who question the evidence, who arent sure that in the post iraq moment were not going to be confronting a preiraq presentation. And theres a lot of fear of that. I understand that fear. I was in the congress when we voted on iraq and i know the deficits of the intelligence back then, and thats why we took our time very, very carefully. Secretary chuck hagel was senator hagel as i was senator kerry, and both of us are determined now as appointed officials of the Obama Administration to do our utter best not to have history suggest that we were less than thorough with respect to this intelligence. So we took more time. The president instructed that he wanted the story told as fully as was possible without compromising intelly sentences against sources and methods. The Intelligence Community was told to release more information than previously in this kind of a situation. So we declassified things that normally would not be declassified. And theres a risk in that, but the risk of not having people understand the full measure of the evidence i think the president decided was greater. So what have we put out to people . What do we know about this . Notwithstanding president assads interview, which has not yet been made fully public, we know that his regime gave orders to prepare for a chemical attack. We know that they deployed forces and put them in the places where this took place. We know by tracing it physically where the rockets came from and where they landed them and it is no accident that they all came from regimecontrolled territory and all landed in oppositioncontrolled or contested territory. We know this. We know that within moments of them landing in that territory the social media exploded with videos that we also know could not be contrived, and weve done various means of ascertaining that through technology checkup. So we know that those are real and we see people dying, children, young kids not old enough to even speak heaving for breath, spasming, you know, struggling. And we see all of that within n instants of this happening in the very area that we trace that the rockets landed. Then we hear and know the regime is issuing more instructions to stop the attack, and we know they issue instructions to their people that theyre worried about the u. N. Inspectors finding out what was going on. And then they shell the area that was attacked for four days with four times the i cant remember the exact number of shells that had occurred in the previous ten days. And we also know through confirmation through other technical means that this happened. Syria and iran have admitted there was a chemical attack, they just try to blame it on people who have no scientific capacity to do this and where there is no evidence that they have any of the weaponry to be able to do it and, most importantly, just as a matter of logic, tell me how they would do it from the center of the regimecontrolled area and put it into their own people . It defies logic. It defies common sense here. So the evidence is powerful. The question for all of us is what are we going to do about it . Turn our backs . Have a moment of silence where a dictator can threaten with impunity that he will threaten because hes not accountable. We face this threat every single day, and if we dont stand up to it, well face it more and they will think they can intimidate anybody. I dont believe that we should shy from this moment. The risk of not acting is greater than the risk of acting. And Everybody Needs to stop and think about that hard. And let me just answer that before the next question. I think secretary kerry the logic of what he says about the evidence is very, very compelling, but on the bbcs question about the latest remarks about president assad. We must not fall into the trap of attaching too much credibility of the words of a leader, president assad, who has presided over so many war crimes and crimes of human at this time at this and shown such a murderous disregard for the welfare of his own people, often denied events that have happened, refused in the past to admit the existence of chemical weapons now acknowledged. So lets not fall into the trap of believing every word that comes out of the mouth of such a man. Next question. Mr. Secretary, in that cbs interview you just referenced, bashar assad said that the presentation that youve made reminds him, quote, his words, of the big lie that colon powell said in front of the world about weapons of mass destruction in iraq. He says you personally have presented no evidence of a chemical weapons attack, just your confidence and your convictions. He disputes the argument you just laid out. His argument saying his government relies on reality, not social media and says russian intelligence contradicts this false evidence. What is your response . And, soakedly, is the l secondlg his government could do or offer that could stop an attack. Sure. He could turn over every single bit of his chemical weapons to the International Community in the next week, turn it over, all of it, without delay and allow a full and total accounting for that, but he isnt about to do it. It cant be done obviously. But with respect to the credibility issue, look, i just answered that. I just gave you real evidence, evidence that as a former prosecutor in the United States i can tell you i can take into a courtroom and get admitted and i believe this man i mean, i ive ive personally tried people who have gone away for long prison sentences or for life for less evidence than we have of this. So im confident about the state of the evidence. You can go to, you know, whitehouse. Gov, read the unclassified report, and make your own judgments. What does he offer . Words that are contradicted by facts, and he doesnt have a very strong record with respect to this question of credibility because i personally visited once at the instruction of the white house to confront him on his transfer of scud missiles to hezbollah, which we knew had taken place and had all kinds of facts and he sat there and simply denied it to my face notwithstanding the evidence i presented and what we showed him. So this is a man whos just killed through his regime over 1,000 of his own citizens, over 100,000 or about 100,000 have been murdered. He sent scud missiles into schools. He sends airplanes to napam children. I will happily stand anywhere in the world to put my words against his words, his deceptions and his acts. Okay. Third question. Mr. Secretary, despite all of that evidence and all of the rhetoric youve deployed, the american voters, the british voters and the french voters all opposed to military action in syria. Why do you think that is and what makes you think that you know better . Well, i would never claim to personally, quote, know better. Theres a certain arrogance in that that i learned long ago in american elected life is not necessarily doesnt serve you very well, but i would say that a lot of folks have a visceral reaction to Public People presenting evidence post iraq where they have serious doubts without sort of seeing all of the evidence, and not everybody has or does, and also theres an instant reaction by a lot of people to say, whoa, here we go again. This is going to be iraq. This is going to be afghanistan. And i understand that. I am very sympathetic to that feeling. If i werent in congress in the administration and i didnt have access to what i have, im sure id have the exact same reaction. Id probably be very questioning of Public People, thats why im standing up here today. Thats why i went to the european community. Thats why i will be Briefing Congress together with other members of the administration. Thats why the president will talk to the American People, because our responsibility is to share what we know and to lead and to try to bring people to the point where they can agree with us hopefully. Now i believe that the aftermath of the iraq experience and afghanistan leave a lot of people saying, we dont want to, you know, see our young people coming back in a body bag and so forth, but thats not what were talking about. And what we have to do is make clear to people that were not talking about war. Were not going to war. We will not have people at risk in that way. We will be able to hold bashar assad accountable without engaging in troops on the ground or any other prolonged kind of effort in a very limited, very targeted, very shortterm effort that degrades his capacity to deliver chemical weapons without assuming responsibility for syrias civil war. That is exactly what were talking about doing. Unbelievably small, limited kind of effort. Now, you know, that has been engaged in previously on many different occasions. President reagan had several hours or whatever effort to send the message to gadhafi in the wake, i think, of pan am 103 and other terrorist activities. Other times people have engaged in making it clear that youve got to draw a line and that there are consequences for actions when people step over those lines. If you dont draw those lines and the civilized world is not prepared to enforce those lines, you are giving complete license to people to do whatever they want and to feel that they can do so with impunity. If you want to send iran and hezbollah and assad a congratulatory message, you guys can do what you want, youd say, dont do anything. We believe thats dangerous and we will face this down the road in some more significant way if were not prepared to take some kind of a stand now. So thats our argument. Its not that i know better or someone knows better, its an argument that we believe is based on fact, on evidence, on history and we ask people to take a close look at it and make their own judgments. One more question from the american media. Yes. A question for mr. Hague, the foreign secretary. Sir, now that the British Parliament has decided against british participated in a potential military strike in syria, is there any way in which your government might do more in syria by, say, arming the opposition or upgrading a s assistance to the rebels or in deference, is your government relegated to standing on the sidelines and providing moral support. Would you support military action by the Obama Administration even if the American Congress does not vote for that action . And then a question for secretary kerry, sir, would the Obama Administration consider releasing still more intelligence or perhaps the physical evidence of sarin use which you have not provided to counter mr. Assads assertions . Is there any concrete information that links him to the attack . Do you have such information or not . Do you think it matters if you dont have such information . Thank you. On the first part of that question, you can gather from some of my opening remarks that the u. K. Is heavily engaged in many other ways in trying to address the problems that are being thrown up by the crisis in syria. The Prime Minister convened the meeting of the g20 of nations and organizations looking at how we seriously ramp up the humanitarian assistance, renewed diplomatic efforts on getting humanitarian access which has been one of the great problems. This is a regime that actually tries to prevent humanitarian aid from getting to its own people, removes medical supplies or obstructs medical supplies from getting to the right place. So the Prime Minister convened that meeting with the strong support of the United States. Weve led the round on the latest round of increased donations to the humanitarian effort with the extra 52 Million Pounds. The u. K. Is at the forefront with the United States and others of that piece of work. It will become all the more important in the coming months. Were doing our best to assist the neighboring countries, particularly lebanon and jordan and to jordan, including equipment to help the Jordanian Armed forces cope on their border. Were heavily engaged at the United Nations and all forums in the continuous efforts in recent months to bring about a geneva 2 Peace Process. And with the opposition with the syrian National Coalition who i met last week and who we can regard who are we can regard as a democratic nonsectarian opposition, we do give them a great deal of practical nonlethal assistance. That has included the delivery in recent days of equipment to protect against chemical attack, escapehoods, injections, detective paper that will help people to survive chemical attacks. Were looking to do more of that in the future, and so as you can see, the United Kingdom is in very many ways trying to bring about working with the United States and our other allies trying to bring about a political solution in syria and alleviate the suffering of people there and prevent the spread of the crisis to other countries. So were involved in all of those ways while fully respecting a vote in our parliament on our attitude to a decision that the United States, that is for the United States. We have our own constitution and parliamentary rules. Well leave it to the United States to address their issues. These are two the two great homes two of the greatest homes of democracy in the world, and they each work in slightly different ways. And that we each have to respect the way each others democracy works, and we do. John . And we do. U. K. Foreign secretary hague along with his u. S. Counterpart, mr. Kerry, of course trying to drum up support for action against syria. I just want to recap some of the most interesting comments coming from mr. Kerry. He says, we are not going to war. He says, the solution for syria will not be found on the battlefield but at the negotiating table, but he says we have to get to that negotiating table first. He stressed once again that a political solution is the top priority for the u. S. And preferably for the International Community as well. Quickly, mr. Hague saying the u. S. Has the full diplomatic support of the u. K. Were urging other countries to do the same. Lets take a quick check of oil prices and how theyre fairing in reaction to those comments. Little changed a little bit lower. Down by around 1 2 of 1 for brent crude. Wti is still at the 110 level down by 1 3 of 1 on the day. These are the headlines this monday morning. U. S. Secretary of state john kerry and u. K. Foreign secretary William Hague put on a united front calling for a longterm political answer for the conflict in syria. A resolution will not be found on the battlefield but at that negotiating table, but we have to get to that table. As an International Community, we must deter further attacks and hold those responsible for them accountable. But russias foreign minister warns that a military strike against the assad regime could cause an outburst of terrorism. Shanghai surges more than 3 as august data continues to signal stability and financials rally in anticipation of new rules to allow preferred shares. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. The chief economist joins us from copenhagen. Youve heard those comments coming from mr. Hague and mr. Kerry. This week in the markets could be extremely volatile as Congress Debates action on syria. We have the same level of uncertainty around what the fnc is going to do with regards to tapering. How do you want to position yourself in the markets this week . I put an ad out on friday that indicated that i am almost entirely moving my whole portfolio into fixed income. I think this is not the time to be risky. I dont think its the time to go against the grain of what should always be your number one priority, which is preservation of capital. I think syria, with no disrespect, is a smaller issue for the financial market. I think the bigger one is the tapering. I think fridays number exactly does what it should not do. It is actually increasing the uncertainty on the action of the Federal Reserve going into the temper meeting. Steve, you know its interesting this morning were reading one of the articles in the ft saying u. S. Investors pumping more money into the european equities than any time since the 1977. The first time we saw inflows into european stocks worth 65 billion. Whoever is chasing the returns now, are they too late to the rally in european stocks . I have seen your program all morning. Everyone there seems to think thats a grate value. I, as normal, will disagree. I think this is chasing the tail. I think they look cheaper two months, three months ago. Now everything is overpriced relative to the Business Cycle we are facing. Dont forget that the unemployment number is not improving if you take out the participation rate, and i think that is the real concern because the Federal Reserve is looking for substantial improvement of the u. S. Economy. Substantial improvement does not come from getting a lower unemployment rate. That leaves the uncertainty very, very clear. It leaves a lot to be done in terms of reforms and certainly for the corporates themselves, including in europe, i think people are buying this screen shoot at a way too high odds relative to the situation. Steve, what is the biggest risk to the u. S. Markets right now . Is it Higher Oil Prices . Is it 3 yield that were looking at last week . I wish it was that easy. I think its a combination. I think its the much higher yield, which is stopping the improving in the housing market. I think it is the lack of real jobs, good jobs in the u. S. , and then ultimately i think it is the noise surrounding syria but also overall, as you say, energy prices, gasoline prices. I think all the indicators which normally generate growth is pointing down now in the u. S. I am actually looking at a 2014 growth number to the u. S. Very close to syria if my model is going to continue on this path. Thank you for those insights this morning. Steve jacobson, thank you very much for staying with us during the press conference. Lets take a quick look at u. S. Futures. Theyre looking quite percy this morning. The dow, nasdaq and s p 500 are looking modestly higher. This is after stocks were little changed in very volatile trading on friday. Only 169,000 jobs were added. The dow snapping a fourweek losing streak. European markets look like this. We are a little bit iks med. The ftse 100 is down a little bit. Bg came out with a production warning. The xetra dax. We will be back in 2 00. Retirement. Sit bac welcome to Worldwide Exchange. Im carolin ross. These are your headlines from around the world. This is not a call for war. U. S. Secretary john kerry calls for a political help and hes with William Hague. A resolution will not be found on the battlefield but at that negotiating table, but we have to get to that table. As an International Community, we must deter further attacks and hold those responsible for them accountable. But russias foreign minister warns that a military strike against the assad regime could cause an outburst of terrorism speaking with a syrian counter park in moscow. Shanghais market is rallying. There are new rules for preferred shares. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. Good morning, everyone. If youre just tuning in, thank you so much for joining us here on the show. Heres how markets are fairing ahead of the u. S. Open. U. S. Futures looking quite positive. The dow, the nasdaq and the s p 500 are set to see some nice gains at the start of the trading day in a couple hours time. Keep in mind the dow snapped a fourweek losing streak. Last week it was up by 3 4 of 1 on the week. The s p fairing even better up by 1. 4 and the nasdaq clocking gains around 2 . The vix falling. So we had a positive start to the month of september. Well see how much volatility we get with a big event risk in the month of september. European markets are looking a little bit mixed this morning, the ftse 100 down by. 3 . The dax is down. Italy is up by 1 3 of 1 . This follows impressive gains. Up by almost 3 . U. S. Secretary of state says the world must stand together and tell Bashar Al Assad to keep his hands off chemical weapons that kill his own people. Speaking in london alongside of u. K. Secretary William Hague, he said action had to be taken to force the Syrian Government to negotiate a political answer to the crisis. Were not talking about war. Were not going to war. We will not have people at risk in that way. We will be able to hold bashar assad accountable without engaging in troops on the ground. Meanwhile, the Russian Foreign minister has warned the u. S. That a strike on syria could lead to increased terrorist activity in the region as well as a new wave of refugees. He was speaking in moscow after a meeting with his counterpart. He said syria was ready for peace talks and that a political solution was still a possibility. President obama will tape interviews with several u. S. Tv Networks Today as he continues the push to take action against syria. The president will address the nation in primetime tuesday night. He dropped in on a dinner hosted by Vice President biden on sunday and will meet democrats tuesday as Congress Returns from their summer break. White house advisors will hold classified briefings for lawmakers this week and took to the sunday talk shows to stress that any u. S. Military strikes would be limited. This is a targeted, limited, consequential action to reinforce this prohibition against these weapons that unless we reinforce this prohibition will proliferate and threaten our friends and our allies. Whats the point . If youre outlining what its not, what is it actually accomplish that forces assad to never use these weapons again . Heres what it does. It degrades his capacity to use them again. It also makes him think twice before he goes to these dastardly weapons again. The u. S. Senate could vote this week whether to take action while the house votes next week. President obama faces an uphill battle. Polls show half of congress is still undecided. Lets get out to hadley gamble, our middle east correspondent. She was at the press conference and joins us on the phone. Hadley, your first initial thoughts after that initial press conference, what are the take aways. Certainly secretary of state john kerry and the foreign minister were very, very clear that the special relationship between be the u. S. And the u. K. Remains just that, a special relationship. Secretary hague said the u. K. Will give support to the u. S. And syria. They will continue to push for the geneva 2 talks. Hell want to address the humanitarian crisis and save lives on the ground. Finally, hes going to try to get a Strong International response to the syrian regimes use of chemical weapons. You saw secretary kerry laying out the evidence the administration is making. He doesnt know if theyll release anymore evidence, but hes making it clear he is sympathetic to those who dont want to see another iraq or afghanistan. Remember, despite the renewed vigor hes seen over action in syria, hes headed back to the u. S. And thats where hes going to be very hardpressed to find that same support. So many acknowledge that chemical weapons were used and mr. Assad may have used them, the fact remains there is very little appetite for conflict in the middle east. Thats the quandary facing john kerry as he returns to the u. S. Hadley, mr. Kerry said he was confident that congress will listen carefully. This is what he said just a few minutes ago. We know that half of congress essentially is still undecided. Will they have been swayed by what mr. Kerry said this morning . I think that what secretary kerry was really trying to do is, once again, lay out the evidence that he is open to unfortunately, hadleys line is far from perfect so well just leave it there for the moment. Lets move on. Fridays weaker than expected job numbers has done little to temper the worry that theyll scale back the bond buying. There were 169,000 jobs in the month of august. Unemployment fell to 7. 3 . A report in the Financial Times says that they could broaden their guidance by officially using inflation as well as Employment Data as a peg to keep rates low. The impact of fed tapering on emerging market economies caused a great deal of friction at the g20 summit. Speaking to cnbc at the imf summit, Christine Lagarde said it will weigh on everybodys minds. The advanced economies acknowledged that the tapering of the unconventional monetary policy, although left to the independence of the central banks, had to be orderly, had to be well communicated. Christine lagarde there. Meanwhile, wall street gears up for what could be the biggest sale of corporate debt in history. Well have more on verizons megabond offering. Thats coming up next. [ tires screech ] [ male announcer ] 1. 21 gigawatts. Today, thats easy. Ge is revolutionizing power. Supercharging turbines with advanced hardware and innovative software. Using data predictively to help power entire cities. So the turbines of today. Will power us all. Into the future. Announcer youre watching Worldwide Exchange. Verizon is set to hit the road this week seeking investors for what could be the biggest Corporate Bond deal ever. Kayla tashi is at cnbcs headquarters. You would only have this 130 billion acquisition for the rest of verizon. They struck the deal with vodafone. Verizon is targeting a bond deal 20 to 30 billion in the u. S. Market. It would far exceed apples deal. Theyll be tasked with finding buyers for the Investment Grade rating bonds. Theyre set to raise 30 billion in total. The u. S. Debt sale will likely be on wednesday or thursday. Theyre weighting the deal to medium or greater dated bonds. Verizon could issue a century bond if theres enough demand from investors, something that matures 100 years from now. Later this week verizon is expected to market the bonds in europe. It will raise some funds in euros and sterling. It will be paying that in cash to vodafone. Verizons debt deal is coming up against a significant amount of debt supply. Sprint hit the market with 6. 5 billion in bonds. It took in 11 billion in orders. The reason verizon is doing this is because yields are continuing to grow up. If theyre looking to raise 50 billion in debt, they want to do it at the lowest rate possible. Absolutely. Wondering how much demand there will be. Thank you for that, kayla. Meanwhile, its claimed vodafone may not raise enough support. Anonymous sources are citing that they may fall short of the 75 acceptance of the investors. Theres close to a 40 premium to the share price at the time. Meanwhile, ross westgtate asked what the future of the Telecommunications Sector in europe would look like. If we want a Single Market for telecoms, thats one important part of a Single Market for the digital world, we need to eliminate internal barriers. We have not yet an internal market in europe for telecoms. We need to move on this objective. At the same time if we are advancing towards an internal market, theres logic that it will accelerate. Now we are starting to deal with two important mergers in europe within the telecon sector. One in ireland and one in germany. It is too soon to Say Something because we are starting to receive information. And there are also some operations also in germany, vodafone and deutschland off integration of one telecom and one cable operatoperator. This, im sure, will also be a new aspect of our work. Meanwhile, michael dell looks at finally winning shareholder support for 24. 8 billion buyout. Barring any loss amid on stack fr obstacles from carl icon. Theres a shareholder vote on thursday. Dells board has postponed the vote three times. Last month they agreed to michael dells request to expand the voting pool in exchange for a higher bid. Dell shares in germany are down just a tad by around. 1 of 1 . These are your headlines. U. S. Secretary of state john kerry says a political solution for syria will not be found on the battlefield. But russia warns of an outburst of terrorism if the u. S. Goes ahead with a military strike against syria. And inflation and trade data suggest the slowdown in china could be bottoming out. Coming up, as president obama continues to make his push for military action, will the syria effect hang over the markets this week . We head to the bond pits of chicago for insight next. Dont go away. Building animatronics is all about getting things to Work Together. The timing, the actions, the reactions. Everything has to synch up. My expenses are no different. Receipt match from American Express synchronizes your business expenses. Just shoot your Business Card receipts and theyre automatically matched up with the charges on your online statement. Im john kaplan and im a member of a synchronized world. This is what membership is. This is what membership does. Like carpools. Polly wants to know if we can pick her up. Yeah, we can make room. Yeah. [ male announcer ]. Office space. Yes, were loving this communal seating. Its great. [ male announcer ] the best thing to share . A data plan. At t mobile share for business. One bucket of data for everyone on the plan, unlimited talk and text on smart phones. Now, everyones in the spirit of sharing. Hey, can i borrow your boat this weekend . No. [ male announcer ] share more. Save more. At t mobile share for business. U. S. Secretary of state john kerry has said the world must stand together and tell the syrian president bashar assad to keep his hands off chemical weapons that kill his own people. Speaking in london alongside u. K. Secretary William Hague kerry admitted there was no military solution but said action had to be taken to force the Syrian Government to negotiate a political answer to the crisis. Were not talking about war. Were not going to war. We will not have people at risk in that way. We will be able to hold bashar assad accountable without engaging in troops on the ground. Syrian president Bashar Al Assad is denying claims he used chemical weapons on his own people. In an interview to be aired today on cbs, assad insists there is no conclusive proof such an attack even took place. He challenges washington to produce evidence proving his involvement. Lets take a check of european markets on the back of this eventful morning, specifically geared towards syria. Ftse 100 is off by. 4 . After a production warning and the zetra dax is down. In the u. S. , ahead of the open, the dow, the nasdaq and the s p 500 are seeing opening higher. This is after a mixed close on friday after that disappointing u. S. Jobs report. Lets get down to michael guerka, managing director at spectra bank asset management. Michael, on friday we saw a limited to the nonfarm payroll report. In fact, markets were a little just a little jittery, a little negative. We didnt see a huge selloff. What does that tell you . It tells me that the equity markets are delusional if you ask me. It didnt make any sense. That is not a rosie picture. For the same reasons as you just mentioned as the news of the day throughout london and here in the states about what could happen in the middle east, these markets are on edge and for those reasons were starting to see crude oil get above 110 on the wti. Youre starting to see the Metals Market react as the scenarios are there in the precious metals. I am not surprised. This is going to be a very, very tough week for the markets. Its very hard to solve these solutions with the rhetoric. The big question was the way we rejected the 3 level in the ten year yield in treasury. Michael, the vix fell last week and are these the lows that we expected with the fear gauge. I love how you throw the gauntlet out there. Right now it seems as though thats starting to get really low. Were cheapest where one might think people like to take very small bets if that volatility can remain at these levels. It will remain really hard to keep it coming off these historic levels. Weve seen that the dow talking up quite a nice performance. Up some 16 . Is now time to take profits for the year given all the uncertainty and the events that were heading into . I think prudent longterm investors are still going to like these levels. I think at the other end of the spectrum the very shortterm traders are going to be very prone to jumping into the first chance at a selloff, but i think the middle of the you know, kind of the thought process here is that at least in equity land its very hard for the market to maintain these levels. The only reason i see it up here is there has been massive in flows into equity markets globely because its giving us the best returns or elf, as you might call it. Theres some massive correlations technically or where the markets were in 87 if you overlay some of these charts. Right now at least its scarily eerie that we shouldnt see something come off sharp soon. Its the reaction, do you buy the dip or does it turn into something more prolonged. Michael, what does that mean for the dollar . You know what, i think that i would like to reference back the f 1 c meetings or in particular the fed as a whole. It just seems like theres this underlying belief that a weaker dollar is good for trade but more importantly, the british pound and the euro in particular are looking rather healthy at these levels. Sterling is really showing me the cue here that maybe we tus test 160. Its the syria conflict that would show us at least if were going to see dollar strengthening. Thats quote, unquote, the red line. If we dont see a dollar stronger, then its weakness will continue. Watch the currencies continue to have their bias to the up side. Michael, thank you so much for those thoughts. Michael gurka managing director. Fiat shares higher. Its now rumored that there may be negotiations with a Health Care Trust to buy the chriysler stake doesnt own. Im carolyn roth. Thank you for watching Worldwide Exchange. Ross westgtate is back tomorrow. Good morning, president obama will make his case for syria. In corporate news, possible deals in the retail, smartphone. A growing trend changes in health care. It is monday, september 9th, 2013. Squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen. President obama will be addressing the nation. About an hour ago secretary of state john kerry took questions from the media in a joint News Conference with the u. K. s foreign secretary. Were not talking about war. Were not going to war. We will not have people at risk in that way. We will be able to hold bashar assad accountable without engaging in troops on the ground or any other prolonged kind of effort in a very limited, very targeted, very shortterm effort that degrades his capacity to deliver chemical weapons without assuming responsibility for syrias civil war. Congress officially returns to work today to debate president obamas proposal for military action in syria. In an interview