Diamonte says he thinks it is not the solution. It allows the Banking System to be safer and contribute to such information. But you cant really ask a Financial Institution or the system to be the driver of changes. The french finance minister hints back at criticism that france is not doing enough to revamp its economy in an exclusive interview with cnbc. For those who like to say all the time that france is not performing, france is moving, and it is because france is moving that i hope the recovery will be strong, solid and long lasting. And the nikkei newspaper sources say Larry Summers will be named the next fed chairman as early as next week. The reports help push the green back broadly high every against most currencies. Good morning, everyone. Youre watching a brand new edition of worldwide exchange. Ross westgate is out today. You get me today. This is whats coming up on todays show. Weve got a fantastic show for you. Our next guest warns the facebook disaster could still hurt twitters efforts to go public. Well speak to mike izak live from San Francisco in just a few moments. Meanwhile, speculation over berlusconis political future keeps italy on edge as yields hit multi month highs. Find out why our next guest says rome is risking a new snap election at the 1020 cet. Well bring you the latest on the Syrian Crisis as the u. S. Secretary of state john kerry warns the assad regime that, quote, words are simply not enough as the country vows to disarm. Well bring you analysis with cnbcs hadley gamble. Thats coming up. And is it the end of made in china . Find out why some u. S. Companies are reoperating operations as emerging market costs continue to rise. Thats at 10 40 cet. Twitter takes the First Step Towards going public filing for an ipo in a tweet. The post says weve confidentially submitted an s to the sk for a planned ipo. Twitter did not reveal any other details such as timing or ticker symbols. They filed under the jobs ad which allows companies with less than 1 billion in annual revenues work on its plans before make them public. Twitter is estimated to have 583 million in revenue this year. The information will have to be disclosed at least 21 days before the Company Begins its investor road show and twitter has been valued at about 10 billion. Sources tell cnbc Goldman Sachs will be the lead underwriter on the ipo. A couple stocks in tokyo got a big boost from the ipo. Investors piling into two japanese firms with links to the microbloger, digital garage and incubator internet firms rose by some 17 . It is said to have invested in twitter, by the way, while Digital Advertising firm adways which has an Agency Agreement with twitter is up more than 11 . Got. Something facts and figures for you regarding twitter. It has 200 million twif users. Tweets per day, 400 million. That takes it to around 1 billion tweets over 2 1 2 days. Its got some 40 million registered users. Remember, that was one of its bigger acquisitions over the last couple of months. And the most followed brand on twitter is youtube with some 33 million followers. Now, here is an interesting number for you. The cost of proon moted trend in the u. S. Is around 200,000. And this is crucial because this obviously is how twitter makes all of its money and this is going to be one of the key revenue drivers going forward. Right now, twitter is not profitable yet or at least it hasnt indicated that to us. Revenues are just r just shy of that 6700 million revenue. Im joined on the phone by mike isaac. Michael, thank you so much for joining us on short notice. The fact that it doesnt have to give us a lot of detail about its ipo under this jobs act, is that a good thing for twitter . Because it can, you know, work towards ipo outside of public scrutiny . That is exactly right. They basically had a year and a half to see what the process was like for Companies Like facebook or zinga or groupon who had to do a lot of what twitter is doing right now, which is hash out some of the fine points of going public end public with the s. E. C. And that means everything the public can see means the details they wont have to hammer down before they absolutely have to show us these financial details. Mike, the twitter ipo would come 1 1 2 years after that disastrous facebook ipo. What can twitter learn from facebook . Thats exactly right. I think there are a few things. I think that, a, it gives the bankers a chance to correctly price the tock to give us a sense for where the markets are now. Honestly, lately, facebook has been on sort of a tear rising at least 70 in two months on its share. Markets are sort of starting to get a renewed faith in Consumer Tech ipos, right . If twitter essentially going public within the next few months on, if twitter can sort of take that regained Investor Confidence and ride that to the top, then they can essentially come out on top on this. But, mike, is the timing is that right or is it a little bit too late . Because weve got all this Capital Market activity happening right now, obviously, a lot of people want to on lock in lower rates, want to lock in Investor Confidence before rates go even higher. Do you think there will still be plenty of demand for this ipo . Honestly, i think that, you know, at least wall streets analysts are the big thing, the big buzz word now is can Internet Companies make money on mobile devices . Right . And that has been a question for the past year. Facebook had not proved it until the past three months. And i think now that sentiment is shifting. That is, its looking more positive than ever before. Mike, thank you so much for those thoughts. Senior editor at allthingsdigital. Well talk much more about twitter over the next two hours. Lets take a quick check about how markets are doing and we want to start things off with asia. We are seeing profit taking after some asian markets. Saw this tenday winning streak, the longest in six years. Today we are seeing a second day of modest declines. The nikkei 225, up by 0. 1 . Earlier on this week, scaled to this fiveyear high. It is today up around 0. 5 . With metal prices coming down, were seeing the mining stocks coming under pressure. Overall, its been a fantastic week for these asian markets. Shanghai is on track for a 0. 4 gain. The asx is on track for a 1 gain this week. And indonesia, one of the embattled companies has been bouncing back nicely, as well. In terms of the european market, this is how its fairing. We are seeing a bit of caution across the board for these major markets. The xetra zacks off by 0. 3 . The cac 40 down around 8 points. Definitely a little bit of kaugdz in the markets ahead of the fomc meeting next week. In terms of the biggest gainers and losers on the stoxx 600, were seeing do you haveland up by 5. 6 . Now that the deal with vodafone has gone through, this is a takeover story by 11. 2 and raiff bank n is down 3. 6 . Vodafone says that 75 of the german Cable Company shareholders have agreed to the uk firms 7. 7 billion euro takeover. The uk Telecom School will publish details on monday on exactly how many shares have been tendered. Vodafone is buying germanys largest Cable Division in order to offer more phones and services. In the bond space, we are not seeing any major moves ahead of the fomc meeting next week. The tenyear treasury yield is sitting at 9. 2 . A dip below that 9. 2s level earlier this week. A little bit of caution in that is those markets, as well been sitting below those twoyear highs at 2798 . But getting closer to the 3 level again. The tenyear italian yield, this is the most interesting one this week. The yield shot above that at the tenyear spanish taper. This is obviously on the back of the Political Tensions that weve been seeing in italy this week. And is well talk much more about that with a guest in about 20 minutes time. Meanwhile, the dollar is climbing against the yen and the korean won on a report that the president obama is said to nominate Larry Summers as the Federal Reserve chairman last next week. Separately, john cornan of texas says he was vote against summers appointment. Dollar yen, you can see here, up by around 0. 1 . The aussie dollar seeing a bit on of a decline around 0. 2 . Once again, this is partly because were seeing some profit taking. This pair has had a big move over the last couple of trading games. Sterling dollar 1. 5810. Still to come on the show, secretary of state john kerry and his russian counter part are meeting. We assess whether syrias chemical weapons threat is a big deal. [ male announcer ] these days, a Small Business can save by sharing. 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. Todays Euro Group Meeting in lithuania kicks off over a fully fledged Banking Union. Julia is live. Julia, weve got one obstacle cleared, but theres many, many more hurdles to take here. The European Parliament signs off on that yesterday. This grounded to a halt in july when the European Commission said, hey, we have to be the pan european decider of when and how a bank is wound down when it gets into trouble. The germans, one of the biggest opposers of that, said thats going to require change. That was the message this morning, too. I did speak to the european president , president of the euro group this morning. And theyre pretty unconcerned about the legal requirements. Listen in. Weve had legal advice from the Council People looking at the issue, is there a legal basis . And i think the answer can be positive, so i think we can try and focus the debates on the governance of the resolution authority, the governance of the fund, and hopefully well make some progress there. Starting off today. So the president there seemingly unconcerned about getting this second pillar of the Banking Union signed off eventually, as if we all had to assume that there was going to be a delay based on the fact that weve got such activity to the germany elections. One of the benefits of these countries, given how quiet its been on the european front and the policy decisions, its actually that the deficit police have been pretty quiet, too. What weve heard in the last few weeks is that portugal with deficits, weve seen greece saying absolutely no more. And, of course, france, too, asking for a delay on the on deficit. So as far as the austerity police are concerned, carolin, i think theyll be back in the frame as soon as they can possibly post this election. Great point there. Stay with us, julia. Stefan is standing by in paris. Stephane, do the french think theyre going to get another extension on their deficit goals . Theyve gotten so many extensions over the last few years, that was it, thats what the euro group could be saying. They were planning to ask any further delay for the deficit target. I spoke to the finance minister and he was quite clear about the deficit target. Hes confident that france will meet the new deficit target. Its two years later than expected. If you refer to the 3 deficit, the 3 of gdp deficit, but still, its within the deadline that was set by the European Commission. The plan is to bring the deficit at 279 of gdp in 2015. The Economic Situation in france also was very much criticized recently by some european leaders at the ecb, but also at the European Commission. The Economic Reforms are not deep enough and they are not fast enough. That was the comments recently. Theyre rejecting the criticism france is reforming the economy and is doing it like never before. And regarding the Economic Situation of the country, even if the government recently lowered its growth forecast, theyre confident. We expect it to be much better in the fourth. Its not only about what happened what happens outside the country. Its what happens inside the country. If you look at structural reforms, we mentioned what we did as a government during the last months. We reform the labor market. Nobody has done that before. During the last 40 years. We reduced our deficits. We make a structural effort that nobody ever did before us. We are extending more than any government. Next year, it will be 15 billion euros less in Public Expenditures as well for the state and for local authorities and for Social Security and finally, we are reforming our pension systems. Well, i think thats quite a good record. And for those who like to say all the time that france is not reforming, france is moving, and it is beautiful because france is moving that i hope the recovery will be strong, sole on lid and long lasting. Well, he will have to convince his european partners. This morning, the European Commissioner ollie rehn says france will have to explain its fiscal target. Hes very keen to hear how the government will compensate the rising loss of labor as a result of the pension reform. Stephane, what was he thinking . Theyve got unemployment at 10. 9 , a deficit of, what, 4. 9 . What planet is he on . Well, he was referring to the recent forecast vote from the imf and from the oecd, the forecast of the French Economy would shrink this year. So if you look in that way, its forecasting this year 0. 11 of the gdp in france. Its better than what was expected just a few weeks ago by the imf. That was well above expectation from that. The main driver for the time being, thats the main reason why the friends government is confident for its outlook for the economy and for the growth, 0. 1 for this year. Slightly better than awful doesnt make something strong. Well, you can see that way. But in the meantime, the government is catching the public deficit. Not as much as expected, but as long as it goes into the right direction, thats significant progress. That was the message. Taxes have been raised, deficit is declining. Now lets start with sympathies, but if the pension reform is bearing fruit, then we will see the effects in the short on term for the French Economy. So lets, i think, give the french government, lets give them the benefit of the doubt, i should say. Stephane and julia, thank you for that debate. Joining us now, the chief european economist at barclays. He is actually down the line at his own offices, barclays. Antonio, we are going to be seeing higher public deficit for france. But thats a good thing, right . Because the government is now promoting growth policies. When we keep in mind public debt is going to be hitting around 94 of gdp. There is not room for slip. They must reach a deficit of 3 low by 2015. Previous to that will be the Public Expenditure cuts for next year, which are the most difficult ones. Sweef seen all this french dashing going on. Do you think that france is close to writing its detractors . Do you think it can push away the market and the rest of the eurozone that it is doing a lot in terms of improving its competitiveness . So far, investors have been for france and reform and fiscal consolidation. Theyre trying first with the labor markets. Remember the flex Security Model in the First Quarter. Now the pension reform, even if watered down are next the most difficult, which is the Public Expenditure cuts, 15 billion and 3 billion also in measures. So i think the truth lies in between, right . Its not that its doing zero. Perhaps theyre doing as much as it could do. So i think it may change at the margins due to france. Lets move on to italy. Thats been occupying investors minds this week. The Prime Minister has been speaking. I want to bring you one of his most important comments. He says the next months are going to be very important to show italy can stick to the commitments. Italy must show it is credible, serious and to be able to service its debt. And the Prime Minister saying it is taking a lot of effort to keep the government in place. Antonio, do you feel that despite this rise in the ten year for the italian paper . The market is still underestimate whag is really going on in italy. I mean, there is a real threat of this coalition collapsing, right . Indeed, theres a real threat. The question is what is faster. Is it a vacuum of power or is it a grand coalition that will move for snap elections next year . I think it will be the latter. If berlusconi decides to pull the plug based on what the parliament decides, then i think its lightly that the grand Coalition Forum will prepare for elections for april next year. That is not going to be welcome by the markets. But contain volatility. I think it will very much depend who is the candidate that will lead them against cdl. That will maybe shape Investor Confidence one way or another. Theyre really not in a position to deal with this investor sentiment. Weve seen the numbers yesterday for the month of july. That was a big disappointment. This continued uncertainty about whats going to be happening on the political front, how will that sentiment affect consumers even further . Youre right to point that out. Consumer confidence may be negatively affected by all this volatility. They may hold on to their consumption of investment decisions. And that may actually delay growth we expected growth to be flat in the quarter. Now the risks seem to be a little bit on the down side. Okay. Antonio, thank you so much for that. Antonio garcia pasqual, chief european economist at barclays. Now, throw salt over your shoulder, buy some lucky hitter and make sure those horseshoes are turned the right way. Friday, the 13th is considered an unlucky day. The fear of friday the 13th has been called friggatryska phobia. Theyve scripted it out on for me so nicely, but i cant even say it. Ill have another try later on in the show. Those two alone, enough to give a tv presenter nightmares, obviously. Markets remain skeptical. More up days on friday the 13th than down days according to the markets. I have a phobia myself. Its not the fear of snakes or spider wes b yes, ive got that, too, but ive got a bigger one. Ive got nomaphobia. It is the fear of losing your smartphone. Yes, i admit it, ive got that fear. It is the fear of losing access to emails, to twitter, to everything else. There you go. I was honest with you. I hope you are going to be just as honest with me. Write in your phobias, worldwide cnbc. Com, via Twitter Twitter cnbcwex or directly to me carolinroth. Still to come, the uk banking giant seeks to raise 5. 8 billion pounds. Find out what our next guest thinks is the largest Bank Fundraising since the financial crisis. We gave people a sticker and had them show us. We learned a lot of us have known someone whos lived well into their 90s. And thats a great thing. But even though were living longer, one thing that hasnt changed much is the official retirement age. The question is how do you make sure you have the money you need to enjoy all of these years. Todays top trending topics, twitters ipo. The popular social media site takes the biggest step towards what could be the biggest tech offering since facebook. The head of the euro group tells cnbc hes hoping finance ministers in lithuania will make progress on the Banking Union. But in an exclusive interview with cnbc, they say it is not the solution. A bank union we allow to the Banking System to be safer and contribute to this transformation. But you cant really ask a Financial Institution or the system to be the driver of changes. French finance minister hits back at criticism that france is not doing enough to its economy and yet another exclusive interview with cnbc. For those who like to say all the time that france is not reforming, france is moving and it is because france is moving that i hope the recovery will be firm, solid and long lasting. And the nikkei newspaper sources say Larry Summers will be named the next best chairman as early as next week. So the report helped push the greenback mostly higher across most currencies. We still have a nice rally over the last couple of trading days, specifically in asia, but to some extent in europe. We are pulling back from that a little bit. The ftse 100 is off by 0. 3 . Were seeing similar losses for the xetra dax and the cac 40. Basically, investors deciding to stay on the sidelines ahead of the fomc meeting next week. Now, the focus is squarely back on tapering. In terms of the Government Bond space, we are away from the twoyear highs in terms of the benchmark yield specifically for the treasuries and the gilts. Were sitting at 2. 98 for the tenyear gilt year. Tenyear treasury yields at 2. 93 . It fell below that 2. 9 level this week. The tenyear bund is at 2. 02 . And in the markets, dollar yen allegedly got a bit of a boost from simply reports that mr. Summers could be confirmed as fed chairman as early as next week. There are a couple of interesting theories apart from that as to why dollar yen could be higher. Also because the japanese government has once again upgraded its Economic Forecast that may be weakening the yen, as well. Euro dollar is down by just a touch, 1. 3290 and sterling dollar sitting above that 1. 58 level, up almost unchanged on the day. Mean wile, china has welcomed the syrian governments decision to sign up to the chemical weapons convention, but u. S. Officials remain cautious about the move. It also remains unclear if syria meets the requirements of the pact as a wall street journal claims a secret military unit has been moving chemical stockpiles around the country. Mean wile, u. S. Secretary of state john kerry and his russian kourntd part continue their negotiations over syria and geneva. With the latest, im joined by our middle east correspondent hadley gamble. Hadley, the Sticking Point is this threat. Syria and russia, they want it to be taken out. The u. S. Insists on it. Do you think that either side will move wa from their stance . I think the big question for the International Community is whether theyre going to take away assads toys, his chemical weapons, or whether theyre going to punish him for the possible use of chemical weapons on his own people. Iran coming out today saying this was a big no, that they were going to support that, as well. But also, you have to remember what theyre going to do in geneva is try to come up with a blueprint for how they move forward in terms of getting in and takes these chemical weapons out. That is raising questions in the wall street journal about the syrians, are they playing a game . How can we go in and get chemical weapons out. Theyre meeting with syrias envoy this morning. That meeting is ongoing. Well have to wait and see what kind of plans they come forward with. How difficult is it, based on what we saw happening in iraq, to account for all the weapons and to remove them and to remove them safely because theres a civil war going on in syria. Thats one of the things that secretary kerrys group, pent gob officials, state Department Officials are trying to figure out how difficult this can be. You have to remember that mr. Assad has asked for 30 days before he has to give a full account of what he has and where he has it. Secretary kerry has said that timeline is not going to work for us. Literally, theyre going to try to figure out over this weekend how much they can find, how can they can verify and how to get it out of syria and the time frame. Thank you so much. Before you go, hadley, we were talking about our biggest fears earlier on. I told everyone, one of my biggest fears is the fear of losing my smartphone. Whats yours . Carolin, this is a problem you clearly do not have. My fear is bad hair days and they come and this go. Its something im learning to live with. That is your biggest fear, youre doing pretty well. Oh, i hope so. Thank you so much for that, hadley. Meanwhile, does the nikkei newspaper have the scoop of the year . Markets are buzzing about the report that Larry Summers will be the next fed chairman. We have more now from tokyo. Hi, carolin. Yes, indeed. The nikkei is reporting today that the u. S. President obama is set to appointment u. S. Former treasury secretary summers as the next president of the Federal Reserve. Current treasury undersecretary brainard will likely be the next vice chairman according to our reporter. Tokyo market is raeblthi ireacts news. The yen against the dollar currently trading around the upper 99 level. A dealer at a Japanese Bank said the news report led investors to sell the yen and buy the dollars. Summers does not seem as keen on monetary easing as the other potential candidate for the job, jan the yellen. Larry summers may be the leading candidate to succeed ben bernanke as Federal Reserve chairman, but most americans couldnt pick him out of a crowd. The nbc wall street journal poll finds 69 dont recognize summers name or have no opinion on him. Among the rest, more than half describe their attitude towards him as neutral. And of the 13 who did express a view, it was largely negative. Americans are cast ago slightly more positive eye towards congress. The latest wall street journal poll shows the gop is now rated higher than democrats on key issues such as handling the economy and foreign policy. Democrats long standing views such as on health care has been whittled down. Public sentiment turns a bit more negative. Just 27 say the u. S. Economy will improve over the next year and twothirds thinks the u. S. Is on the wrong track. Ubs says without a Banking Union cannot be the solution to europes woes. Our colleagues in singapore spoke exclusively with him about the proposals being discussed at the finance ministers meeting in lithuania today. You need the structural economies and the social system. Europe needs to be much more competitive. A Banking Union well allow the Banking System to be safer and contribute to this transformation. But you cant really ask a Financial Institution or the system to be the driver of changes in the economy. Joining me now is ian gordon, head of Bank Research at investec securities. Thank you so much for coming in. Is this project at the Banking Union in europe, is that too ambitious of a project . Can it ever succeed . At the moment, i dont think we really know what it means. Instinctively, im bound to say its a bad idea. Anything which adds another tier of complexity of regulation over and above that proposed by individuals. It is unwelcome, more possibly and likely to be more confusing. So im wholly opposed to the project in context. But perhaps mitigation, i should acknowledge the uk has one of the most discredited regulatory systems in itself. How much worse can it be . Yeah. Many critics will argue, you know, this Banking Union, it will never, never be completed before were heading into the next crisis. I mean, it could be years until it is fully done and dusted, signed, sealed and delivered. I mean, it could be two or three years, right . Yeah. I mean, at the moment, were talking about the unresolved issues around revolution, around revolution funds, how the funds are raised, how the funds are controlled, how theyre deployed. Theres no obvious or satisfactory answer to those rather basic questions. I agree with you. I think we could have the same conversation in three or four years time. Ill invite you back to the program in three to four years time. Well see where were. Lets turn our focus back to barclays. It is the last opportunity for investors to take parts in the issue. Mark the uk bank seeks to raise 5. 8 billion pounds in capital as part of its leverage plan. Barclays shares plummeted after it announced the proposal for an underrights issue on july 30th, but has since recovered. This morning, barclays shares down just a touch, 0. 4 . Ian gordon is still with us. How do you feel about this rights issue . Because it is going to be earning sollutive, right . Yes. First and foremost, i feel sorry for barclays management. I think theyve been mugged by a politically inspired position. Turn the clock back two months to a personally credible capital plan which would have delivered the acquired european measure leverage by 2015. A new measure was introduced and is was then arbitrarily implemented. 2015 deadlines nationwide. June 2014 deadline for barclays. Carefully chosen to make them capable of something they didnt otherwise need. Here we are, raising 6 billion pounds. Once we get beyond june 2014, lo and behold, barclays had to give it all back to shareholders to do that. They are already obligated to do that with the yield. We have 2015 on the perspective basis. Is that why barclays is still your preferred uk bank or is it really unvalued reason . Domestic, i would prefer barclays. Its been quite resilient over the last month given the overhang of the forthcoming rights issues. If there were to be some softness over the next month, i wouldnt be the least bit surprised. You mentioned the rights issue. Barclays return on equity, covering costeffectiveness is pushed out by year 2016. That puts it level with lloyds, albeit traders at the 53 valuation discount. And it still puts it ahead of rbs, which wont get there until 2017 at the earliest. So the peer domestic context on a fundamental basis, i still prefer barclays. Wa about barclays earning momentum . Second quarter numbers were pretty disappointing. It didnt measure up with what the u. S. Peers have reported. Where do we stand in terms of impairment for barclays . I think youre right. In terms of the q2 numbers, they were underwomening within the investment bank, which contributes about 16 group earnings. You could argue that theyre broadly compatible with europes here, but well below u. S. Peers. And in addition to that, they took an extra 2 billion top out on ppi and Interest Rate swaps in the selling positions, which put them into a small statutory lock in the second quarter. With those issues, better provided than the uk domestic peers, certainly in the case of Interest Rate swaps, i think rbs has material amounts to come. Lloyds, i believe, has more to come in terms of ppi. Barclays is better placed there. You mentioned impairment. Barclays is already has normal levels of impairment, you know, a group charge between 60 1k3 70 basis points is not the crisis measure. So i would describe earnings so far as less risky, more predictable and, you know, i havent generated a return on equity of 9. 5 on 2013. Its not too bad by comparison of uk domestic fears. The only bank hike i can argue which will be generating bank returns well above that is standard chartered, theyre already generating normal returns above 12 and i think that would mott modestly grow during the period. And standard trades at the discount spot 2014 earnings. Ian, thank you so much for that, ian gordon, head of Banks Research at investment securities. Staying in the banking stage, jpmorgan reportedly plans to spend about 4 billion in oversight this year. The wall street journal says the bank will commit an extra 5,000 employees to deal with risk and legal compliance. Jpmorgan has been hit with four Enforcement Actions from u. S. Regulators over various issues and reportedly faces at least seven separate probes by the justice department. Jpmorgan shares in frankfurt are down around 0. 6 . And we have got some news flashes coming out from actually, its not flashes, but its arrivals. We are seeing eurozone finance ministers arriving in lithuania. Theyre going to be talking about the Banking Union that julia has filled us in on. Theyre going to be talking about deficit levels for some of the countries as julia mentioned, the deficit puolice s out in full force again. Meanwhile, throw salt over your shoulder, buy some lucky hitters and make sure those horseshoes are turned with right way. In western superstition, friday the 13th is considered an unlucky day. The fear of friday the 13th has been called friggatriskaidekaphobia. Wait for it, paraskavydekaphobia. Those two alone can give a tv presenter nightmares. History shows more updates on friday the 13th than down days. And weve been asking you do you have a phobia and what is it . Mike tweeted his biggest fear is checking into a hotel and not having cnbc in the channel lineup. I really like that response. Keep your responses coming here on worldwide exchange. Still to come on the show, theyre coming home, or are they . We get the details, after this. [ 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. And were showing you live pictures of lithuania. I believe this is the luxemborge finance minister. This must be the host. Hes greeting everyone, which is just beautiful. Finance ministers, they are going to be discussing the eurozone Banking Union and were expecting them to discuss deficit targets have have been the worst offenders, france being one of them. Japan has upgraded its assessment of the economy in september. The government says the economy is on track to recover moderately on the back of Rising Capital expenditure. This likely strengthens the case for abe to push ahead with a sales tax hike. Meanwhile, south korea may have a bigger hold in its budget to contend with this year. The finance minister says hes about 7 billion short of revenues. The finance minister may have to revise that. President berlusconi is promising to fix the books within five years. Lets give you a look at whats on the agenda in asia on monday. North and south korea are set to reopen on the joint Industrial Zone on a trial basis, despite new tensions over nuclear planned activity in the nourth. Mean wile, august data is due on Chinese Foreign direct investment and india wholesale inflation is out. Japanese markets will be shut for a holiday. Jeff immelt called it, quote, as risky an investment we have ever made. But in 2011 when ge announced it was pulling back into the u. S. Manufacturing sector, above reshore onning became mainstream. However, according to a new report from colliers international, the trend is not spreading from the u. S. To europe. 11 of businesses are planning on reshoring in the new year. What are the key take aways . Why is this reshoring back . The conventional wisdom is the erosion of cost different l differentials and is subsequently companies are thinking, lets bring it back home. Its closer to some of the key markets that i want. But i think the key message, the take away is this seems to be a normal process for globalization that the productive capacity in the world is generally expanding to meet increased demand not only in western europe and in the United States and in the emerging markets, but worldwide and consequently, it looks Like Companies are not necessarily reshoring, but theyre best shoring. That is, they are simply looking at where the markets they want to be in are and ensure that they have the productive capacity to respond to those markets as quickly and rapidly as possible. Thats the real trend coming along. Basically, thats hopes that the u. S. Is going to be becoming a major manufacturing hub again, same goes to europe. I can remember back in my university days, its getting too far back to think about, but at that point in the 70s and 80s, technology was imminent and was going to restructure the world. I think restructuring is just now starting to take hold and starting to drive production decisions based on total is that reshoring . Walter, you brought up a very important point, that is technology. You have to define separating the manufacturing different components. Its not clear to me that thats going to be seriously impacting sales in the next five years. Labor coaster are extremely important. Basically, it means that individual workers will become that much more product iive. It will define the roles quite considerably. Is it really just dragging on parts of these companies . Is it really just a public publicity stunt or on are they doing it at a big scale . No. I think its fortunate for the Marketing Department of these countries that they see the production decisions which are driven by wanting to make profits as being okay to set up in the u. S. Because of energy costs, labor costs, the recession has changed things quite considerably. I think the Marketing Departments have picked up in a big way to say, yes, lets bring production back to the United States, never mind the fact that they were planning on doing that anyway. Wokd gain the most from this reshoring argument, whether it is back to the u. S. Or whether its back to europe . Which country is going to be seeing the biggest influx of Manufacturing Activity . Wi with regard to the u. S. . Russia is stabilizing and is offering great pickings. My personal favorite is turkey, which seems to tralgdz quite a lot of shipment points as well as offering a lot of the resources. Thank you so much for that for colliers international. Still to come on the show, social media giant twitter announced theyve set the wheels in motion for whats likely to be the largest ipo since facebook. Well talk more about that when we come back. Welcome to worldwide exchange. Im carolin roth and these are your headlines from around the world. Twitters ipo, the popular social media site takes the First Step Towards what could be the biggest tech offering since facebook. And the head of the euro group tells cnbc hes hoping finance ministers in lithuania will make progress, but in a exclusive interview, he says it is not a solution. A Banking Union will allow also the Banking System to be better. Contribute to this transformation. But you cant really ask a finance institution or the system to be the driver of changes. And nikkei newspaper sources say Larry Summers will be named the next fed chairman as early as next week. The reports helped push the greenback broadly higher against most currencies. Plus, irans president hails to join the u. N. Chemical weapons ban. Secretary of state kerry says actions speak louder than words between the u. S. And russia continue in geneva. Youre watching worldwide exchange, bringing you Business News from around the globe. If youre just tuning in, thank you so much for joining us here on this show. Ross westgate is out today. Here is how markets are fairing ahead of the u. S. Open. A bit of a mixed picture, really. The dow is seen slightly lower. The nasdaq seen up by just 1. 5 points. This is after we ended in negative territory yesterday for u. S. Stocks. The s p endsing seven Straight Days of gains. It is now less than 2 away from an alltime high. But yesterday, we did see that drop partly because of the drop in precious metal prices and that dragged the mining shares lower. This is also what we saw happening in australia today. In european markets, we are slightly lower across the board. We are seeing percentage declines of around 0. 3 across the board. So definitely some caution setting in ahead of the fomc meeting next week. And in terms of asian markets, we are seeing a bit of a pullback, as well, with the exception of the nikkei 225 which has finished just a touch higher. The bombay sensex reclaiming some of the lost ground, up by 0. 2 . But remember, asian markets have seen an incredible rally, tenday winning streak, the longest in six years. But were now seeing a little bit of profit taking. This is what Government Bonds are doing. We are seeing prices down across the board. The tenyear italian yield, this is one that weve been watching over the last couple days. The yield for the tenyear italian paper has now shut above that of tenyear spanish paper for the first time in 18 months. This happened earlier this week. The yield sitting at 4. 54 . The tenyear treasury yield at 2. 92 and tenyear gilt year yield at 2. 96 , just shy of that 3 level at a twoqueer high. The euro dollar, a touch lower at 1. 3283. Dollar yen, not by around 0. 1 . Very close to reclaiming that 100 level yet again. You heard it there in the headlines. This could be in part because the nikkei has been reporting that Larry Summers could be confirmed as fed president as early as next week and that, of course, we know could be slightly hawkish for the dollar. The aussie dollar off a threemonth high at 0. 9245. Sterling dollar, up just a touch on the day the. Meanwhile, secretary of state kerry agrees to meet with his russian counterpart later this month. This is what we just got through on the wires. Meanwhile, kerry said he had constructive conversations with Russias Lavrov on syrias chemical weapons and those discussions are continuing. Were now joined by howard from Lloyds Banking group. How are you . Hi. Good to see you. In your notes, you made a very interesting point with regard to Forward Guidance. This has been extensively discussed with regard to the rates markets, the currency markets. But weve not talked much about what the impact will be on the credit markets. Talk us through your point. Weve been in the well in the last couple of months where it appears Forward Guidance havent hasnt worked. That doesnt mean that it wont be quite successful in the future. What would that world look like . Actually, weve been there before. 2004 through 2007 was a period when markets were quite comfortable with central bank policy. We had a relatively clear idea how rates might pan out over the coming years and what happened to credit . Credit stress became very tight and very, very stable. And it was a very dull world, indeed, for the credit strategist. Now, in the rates markets and in the forex markets, weve seen the market has been extremely skeptical or Forward Guidance, specifically with regards to, you know, mark carneys Forward Guidance. Is this what were seeing in the credit markets . At the moment, i think the credit markets are equally skeptical. And thats fair. One caveat ive got is were in an environment right now where markets are becoming less risk averse. So you would expect rates to go higher. And its difficult for Central Banks to counter that trend. The fact that they dont seem to be succeeding right now does not mean they wont succeed next year or the year after. And i think they will adapt their policies and their things they tell us in order to achieve that objective. Allan, where are we in the risk on risk off mode . September, a huge event risk hitting us in september, especially the fomc meeting next week, italy is popping up, syria is in the background. Where are we . Are we risk on or risk off . Right now, weerth neither. In the credit markets, were going absolutely nowhere. And it seems like that should go on in the month of september. Why . All these uncertainties that youve mentioned, we knew about, anyway. It was a very busy schedule for september, well factored. Until we get those out of the way, i think the market just sits and waits. So my question, really, is what are the unknown numbers . What is the market waiting to hear from next . And thats probably what happens when Forward Guidance actually works. But what could be the next big catalyst for the markets to go up or go down . I mean, as you say, tapering is probably priced in by now and if we get this 10 billion reduction in the monthly purchases, is that really going to make that much of a difference . So what is the other catalyst that can move the markets significantly . I think it comes from two sources like fundamental or technical. On the fundamental side, the market right now has nothing in mind. And thats partly why. Were going absolutely nowhere. In my sense, either the market begins to get agitated about the amounts of demand coming into credit, partly because Pension Funds have huge inflows which will probably rise over the coming months. That creates a bit of a nasty risk. Its not where credit is supposed to go wider, its tighter. So on the fundamental side, thats probably the key capitalist. Okay. But for now, were going nowhere. Absolutely. Thats good. Not a lot of volatility. But i think it will restart later in the year. Weve only got another couple of weeks left. Allan, youre going to stay with us for the rest of the hour. Twitter takes the First Step Towards going public filing for an ipo in a tweet, of course. The post says weve confidently submitted an s1 to the s. E. C. For a planned ipo. Twitter did not reveal any other details. Twitter filed under the socalled jobs act which lets companies with less than 1 billion in annual revenues work on its plans before making them public. Twitter is estimated to have 583 million in revenue this year. The information will have to be disclosed at least 21 days before the Company Begins its investor road show. Twitter has been valued at about 10 billion. Or even more than that. Ive heard some people say it could be valued at 14 billion to 15 billion. Sources tell cnbc Goldman Sachs will be the lead underwriter on the ipo. And a couple of stocks in tokyo got a big boost from the twitter pi news. Investors piled into the two japanese firms with links to the microbloger. Digital garage and incubator of on internet firms rose 17 is set to have invested in twitter. While Digital Advertising firm adways which has an Agency Agreement with twitter was up more than 11 . We will be speaking to a former dot come entrepreneur to get his take on the ipo in less than 30 minutes time. Find out if he thinks this offering will go better than facebook. And lets give you a look at whats on todays agenda n United States. Retail sales for august are out at 8 30 a. M. Eastern, forecast to rise by 0. 5 and by 0. 3 when you exclude autos. Also at 8 30, we get the august ppi, Producer Prices are expected to rise 0. 2 and 0. 1 when you strip out food and energy. At 9 55, we get the first report on Consumer Sentiment in september and July Business inventories. Throw salt over your shoulder, buy some lucky hitters and make sure those horseshoes are turned the right away. In western superstition, friday the 13th is considered an unlucky day. The fear of friday the 13th has been called friggatriskaidekaphobia, or paraskevidekatriaphobia. Those two alone, obviously, enough to give a tv presenter nightmares. Markets remain skeptical, though. History shows more up days on friday the 13th than down days. So do you have a phobia . And what is it . Let us know what your phobia is by email at worldwide cnbc. Com, via twitter cnbcwex or direct to me, carolincnbc. One of my biggest fears is losing my smartphone or losing access to internet on my emails. Alan, whats yours . Tv print. Questions that i cant answer. Youre the second guest this morning who told me that. Thats terrible. I wonder why. No, seriously, my main fear is actually large amounts of water. Is it . I dont know why. You dont go to the sea . No, absolutely not. Pools . Small pools are okay. Thanks for your honesty. I appreciate it. Meanwhile, frances finance minister hits back at critics in an exclusive cnbc interview, insisting key reforms in his country are taking place. Well head out to paris for more after the break. Has its ups and downs. Seasonal. Doesnt begin to describe it. My cashflow can literally change with the weather. Anything that gives me some breathing room makes a big difference. The plum card from American Express gives your business flexibility. Get 1. 5 discount for paying early, or up to 60 days to pay without interest, or both each month. Im Nelson Gutierrez and im a member of the smarter money. This is what membership is. This is what membership does. The french finance mip sister has told cnbc that those barbing frans reforms are blind. Stephane pedrazzi is with us with more. He was respond to go all the criticism coming from Different Levels in europe. Earlier this week, ollie rehn, the European Commissioner, expressed concerns about the french Pension Reforms and yesterday the member, the ecb member called for the french government to speed up the Economic Reforms. France is reforming its economy, they are viewing that most of his critics are some sort of french barbing. Theres a part of french bashing, theres also part sincerity, but my view is that there is also a part of blindness because this country is changing. This country is changing rapidly. If you look again at the reforms weve installed, now 16 months is very important. And we are reducing, as well, nominal deficits, structural deficits. We have a new labor market. We are cutting on expenditures. We are reforming our pension systems. We are trying to create a more competitive economy. We are reducing the cost of labor. This is a huge plan. I know that it takes time. The results are there, economically, socially. He is confident about the economic recovery to lower forecasts and raise the deficit target. He thinks france is on the track track. Stephane, thank you so much for that. A reminder of your headlines this morning, twitteripo. The u. S. And russia agreed to reconvene at the end of september after what secretary of state john kerry calls constructive talks on syria. And eurozone finance ministers try to hammer out the details of the Banking Union. Welcome back to the show. Here is a check off u. S. Futures. The s p 500, the dow jones and the nasdaq have seen opening slightly higher with fair values taken into account. So looking at the implied open were looking for a marginal push to the outside. This is after in yesterdays trading session we were down marginally for three major indices. The s p, though, ending seven Straight Days of gains. Weve got mining shares dragging us lower in yesterdays trading session on the back of the fall in precious metal prices. Todays Euro Group Meeting in lithuania kicks off with questions still to be answered over the creation of a fully fledged Banking Union that the head of the euro group has told cnbc that progress will be made. Weve had legal advice, as well, from the commission as well from the Council People. Looking at the issue, is there a legal basis . And i think the answer can be positive. So i think we can try and focus in the debate on the governance of the resolution authority, the governance of the fund, and hopefully well make some progress there starting off today. Meanwhile, the italian Prime Minister, mr. Letta, has been speaking at an event in turine. Let me bring you the most important comments from him. He says italy must show it is credible, serious, and able to service its debt. The next month will be very important to show italy can stick to its commitments and the Prime Minister saying it is taking a lot of effort to keep the government in place. Remember, weve seen yield for the tenyear italian paper moving higher on the back of the Political Tension going on in italy. The variance will head to the polls this weekend to vote in their state election one week before the rest of germany votes. Prime minister Angela Merkel or chancellor, rather, Angela Merkel will likely be counting on a major boost from her sister party in bavaria. The csu with polls forecasting a landslide conservative victory. Germanys wealthiest stint has been for decades been considered a strong hold. But the 2008 elections showed the csus group was slipping when it won its small majority in six decades. Carson nickel is senior vice president. Carson, good to have another german in the house this morning. Now, with regard to bavaria, the Election Campaign is all about how will you perform in the beer halls. And to what extent are the bavarian elections going to be a good indicator as to what happens in the federal elections . Well, you indicated, you hinted at this, were likely going to see this land slide victory. Lets put this into perspective. Theres hardly a political system in the world that compares to bavaria when the koims to the dominance of this one party. You have to look maybe to japan and look at the liberal party there. But its very difficult to find a comparable political system. So this is widely expected to be priced in by german voters. Its something to watch because after that we will have five days left but its not, you know, this major event thats going to turn the tides dramatically in berlin. Its interesting. The greens have been pulling extremely badly. The s p has been polling badly over on the last year. Well see whether it can actually get past the 5 threshold. Will this, the green doing so badly, will this hit sentiment for the federal elections . Yeah. This is not a bavarian specific, really. Weve seen this over the last days and weeks, debates, green idea toes regulate Meat Consumption in germany. All that didnt go down very well with voters. And that has left its marks on the poll. So theres something to watch within the next days, of course. You mentioned it lift its mark on the polls. It if im speaking to an investor, should i be concerned about the outcome of the election or should i feel very comfortable in that its a foregone solution . You should feel very comfortable. When it comes to expectations, what we will see and what we have seen of democratic years in germany is a coalition state. That means that we have two chambers of particle maniment. Usually one chamber is dominate by by one party and the other by the other party. Energy prices and so on, the goal is to strike a deal between social democrats and christian democrats. Was the risk of the Coalition Building becoming extremely messy . It was risk of an italylike situation . This is completely overrated. The german voters are focused on stability and reliability. So theres very little tolerance for Party Political gains. We essentially have two options here. We could see a continuation of the current government. Angela merkel together with the liberals, or if that wont be enough, then we will see the formation of a grand coalition. Talk about, you know, other projects such as a less green government or Something Like that, maybe a minority government populated by the communist let me tell is overrated. Talk to me about Coalition Building. There are plenty of examples where building coalitions has not proch to be very successful. Why do you believe the Coalition Building process will not disturb the markets . Its a question of political culture and tradition, really. I think theres a lot of history reverb rating in the sense that germans are, as i said, very focused on stability and reliability. So what they expect from their political leaders is to contain this is all very nice. But then you have this window of five or six weeks and you are expected to form a government by then. This has played out over the last 60 years very well and theres no reason to expect this to change simply because germany is now playing an Important Role in the eurozone crisis. Carson, very quickly, how big an issue is greece . How big of an issue is italy in terms of the most important topics for the german election . Do really really care about that as germans . No, we dont. What do we care about . Raising tolls on the ottobon, raising minimum wage. The eurozone crisis has been an issue, but its not as decisive as outside commentators think it should be. The pro european consensus is very strong. What could tip the stale in mr. Steinbergs favor, if thats still possible over the next two weeks . Is there one single factor that could further diminish the gap between the two . No. Theres not one factor. Something to look at is the relatively large chunk of undecided voters. That is certainly something to watch. And the preference for the grand coalition among the electorates. So tactical voting will be something to watch, as well. Just to sum it all up within as an investor, you shouldnt be afraid of major policy shifts. Should you be changing your Asset Allocation as a result of that . Probably not. Right, allen . The point you made was brilliant, but its about changing the tolls on the ottobons. We are much more concerned about the broader policy framework. Where does that fit with the ecb . Therefore, at this stage, i am relatively comfortable. Credit markets are relatively comfortable and thats why were not responding to this in a big way yet. Thank you so much for that, carson nickel. Alan capper, ahead of credit strategy at Lloyds Banking group is staying with us. Still to come on the show, secretary of state john kerry warns the assad regime that words simply are not enough as he announces plans to meet his russian counterpart at the United Nations later this month. Well bring you more analysis after the break. [ 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. Into the future. 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. Welcome to worldwide exchange. Im carolin roth. These are your headlines from around the world. Todays top trending topics, twitters ipo, the popular social media site takes the First Step Towards what could be the biggest tek offering since facebook. The head of the euro group tells cnbc hes hoping finance ministers in lithuania will make progress on the eu Banking Union, but in an exclusive interview with cnbc, ubs says it is not the solution. A Banking Union we allow. The Banking System should contribute to this transformation. But you cant really ask a Financial Institution or the system to be the driver of changes. Source ones say Larry Summers will be named the next fed chairman as early as next week. The reports help push the groou greenback higher against most currencies. Plus, irans president helps syria reports to join the u. S. Chemical weapons pact. John kerry says actions speak louder than words. The dow and the nasdaq are seen marginally higher at the start of trade a few hours away. Thats after we saw fraction of losses in yesterdays trading session. The s p losing five and the nasdaq losing 9 points. The s p ending a seven Straight Days of gains. It is now less than 2 away from its alltime high. In terms of european markets, we are seeing a bit of a pullback. The president s if it is 100 is off by 0. 3 . The xetra dax, ibex 35 in spain seeing more percentage losses. Investors are choosing to stay on the sidelines ahead of the fomc meeting next week. This follows a couple days of very impressive gains, not just for europe, but for asian markets. So, how do you make money in these markets . Here is what some of the experts have been telling us this morning. Commercial property necessary spain. So we are chipping away at it, but youre right, its going to take a lot longer than it has in the states. We see at least more in the states. We had a change in government in the market and i think rather than having debated that in june next week theyre going to come out. So suddenly you have a weakened crohn na, its strong, they have tightened that. Twitter is going public as the microblog site takes a step towards the much awaited ipo listing. Courtney has all the details. Good morning, carolin. Twitter announced its intention to go public in a tweet using less than 140 characters. The tweet says, quote, weve confidently submitted an s1 to the s. E. C. For a planned ipo. In the first hour after that message was posted, mover than 7,800 people retweeted it. Twitter didnt reveal any other details. It filed documents under the socalled jobs act, which lets companies with less than 1 billion in annual revenues to work with regulators on their plans before making them public. Twitter is on track to have about 583 million in revenue this year. Mostly from ads, according to Research Firm emarketer. The information lb v will have to be disclosed almost 21 days before the Company Begins its investor road show. Sources tell cnbc goldman sax will be the underwriter on the ipo and other banks are expected to be named when the s1 filing is made public. Twitter is valued at about 1 billion. Facebook is up nearly 18 from its 38 offering price. Other social Media Companies have fared better. Linkedin. Groupon, however, has struggled since going public. The stock is down more than 40 since its ipo in november of 2011. Twitters ipo announcement comes at the time of heightened investment interest in ipos. 1311 deals have priced so far this year. Carolin, back to you. Courtney, thank you so much for that. And im now joined by tech entrepreneur and expert Benjamin Cohen who founded the websites jewish net and cyberbritain. What do you make of twitters Business Model . And specifically, the ad revenue model . Is it enough to entice investors to come in on this ipo . I think institutional investors, yes. Leave theyre working towards achieving that. But that m a deal, that made sense because it is moving in the right direction. Based on that and its previous history, valuation around 10 1o 15 billion would be feasible, right . I think its pretty feasible and pretty realistic for business of that size. I think they will have to peruse that revenue is there. And im sure they would have wanted to learn the lessons of facebook. My last job was as a tech correspondent for channel 6 news. I was there reporting the excitement to the build up for ipo for facebook and really quite crushing treatment it had on the stock market. Facebook just returned to its ipo value and they wont be repeating that again. Does it matter when twitter is profitable . Right now, it probably isnt. It got revenues just shy of on 600 million. Its a safe bet to give them the time to achieve real revenue and real profit. You mentioned earlier it was actually the advertising. How do we know the advertising model is going to be robust and sustainable if you compare it to, say, jewish net, it has a much wider audience. And how do you ensure that audience remain consistent and remain faithful over time . I think its a small network. I think the challenge for that business, that place in the stock market 12 years ago and crashed. It has nothing to do with it any more. But actually, i think the reality is for Something Like twitter. Its making those adverts relevant. Twitter has promoted people are totally irrelevant. But if im in the uk, they dont have selfservice advertising yet in the uk. Theres very few advertising going on. Any big brands. So i think it will be a calling to make it relevant, not just the user experience, nonsense, too many adverts in your twitter stream. Very quickly, when do you think twitter will go public . It will happen before the end of the year, right . I would imagine so. Given that theyve made the announcement, i think that there will be quite a lot more coming from this over the next ten weeks. Definitely. Benjamin, thank you so much. Tech entrepreneur and the founder of jewish net and cyber britain. Meanwhile, hilton, the Worlds Largest hotel chain filed for a 1. 25 billion ipo yesterday, seeking a return to the markets six years after it was taken private by blackstone. The 26 billion buyout back in 2007 was one of the largest deals before the financial crisis. The ipo is expected in the First Quarter of next year. As the Company Looks to take advantage of the rebound in the Hotel Leisure industries. This as rival chain marriott conditions its international expansion, opening a new Boutique Hotel in london this week. Speaking exclusively to cnbc earlier today, the can happen companys ceo expressed his concerns over the specs of the u. S. Recovery. I think it would be better if it were more powerful, but i think it is broad, actually. And whose fault is that . Oh, i still think theres plenty of anxiety and disappointment particularly around politics, m a from financial policy. You talk about pulling out the stimulus as an example and the uncertainties that are associated with that. You look at the United States, at the debt ceiling discussions and budget discussions, you look at whats happening over here with the European Finance ministers, we continue to have this Political Uncertainty that is sitting on top of all of the Economic Activity that underlies it. The u. S. Is better because the Economic Activity is stronger, but that political anxiety is still at issue. And still coming up on the show, prices on verizons bonds have soared since the telco firms sale this week. Why are some smaller investors unhappy . We get all the reaction to the record breaking debt deal coming up after this break. Dont go away. You really love, what would you do . [ woman ] id be a writer. [ man ] id be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] id be an architect. What if i told you someone could pay you and what if that person were you . When you think about it, isnt that what retirement should be, paying ourselves to do what we love . 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. Pimco and blackrock reportedly got their hands on verizons bond deal this week. They may now own 10 of verizons outstanding debt. Prices on verizons bonds have risen sharply since wednesdays sales, leading to giant gains on paper for pimco and blackrock. Some smaller investors didnt get all the bonds they happened and have complained to the banks ta underwrote the deal. Alan capper is still with us. Alan, not everyone may be happy about this, but to me it seemed this installed the top of the credit markets. Would you agree . The gut reaction is as the top of a large deal like this comes out, if you look longer term, however, theres a lot of money coming into credits. We know Pension Funds face serious longevity. They need to find more homes to cash. They can do that until the equity markets, but credit, especially in the u. S. , is often a longterm home for their funds. So my sense is this is more like a sign of the times to come, rather than the end of the market. But how do you reconcile with the fact that treasury yields are going to be going higher across the board Interest Rates are rising . This is specific to the u. S. And to an extent in the uk, as well. The Pension Funds are defined benefits. That means when rates go up, although the value of their assets goes down, the value of their liability goes down, as well. So i dont think the rising rates environment is really to put them up. Alan, thank you so much for that, credit strategy at Lloyds Banking group. And these are your headlines this morning. Twitter ipo, the most highly anticipated listing since facebook becomes reality. The u. S. And russia agree to reconvene at the end of ser afber what secretary is of state john kerry called constructive talks on syria. And eurozone finance ministers try to hammer out the details of the Banking Unions. U. S. Secretary of state john kerry said he has had constructive conversations with his russian counterpart sergei lavrov. Conversations have been ongoing. The pair are hopeful that the talks could potentially revive an International Plan for a socalled geneva two conference to end the war in syria. With more on the latest, im joined by our middle east correspondent hadley gamble. Hadl hadley, yesterday we thought the two sides were so far apart that they couldnt be finding a middle ground. What do you think happens . I think most importantly, youve got the russians on the one hand and if u. S. On the other, theyre being pulled on either side by different allies. The russians, they feel like they have an advantage over the americans, at least in this. Theyve gotten support from tehran and support from syria. The International Community as well as the American Public have no interest in putting boots on the ground or having any other kind of conflict in the middle east. So it seems like the road to damascus will continue to be a long and winding one. With secretary kerry, whats interesting, weve seen a 7 advantage on the part of the republicans, at least on foreign policy, have been speaking to several people on the hill was well, several congressmen and theyve just told me, this has been an area of on epic incompetent by the president. But whether they feel that hes been incompetent or not, no one in the u. S. Wants another mid east conflict. We have the arab allies, as well. The arab allies, some people from qatar saying theyre very unhappy that the u. S. Hasnt done anything in terms of a use of force against assad. Theyre very unhappy with the situation. We still have that question of whether or not force may be used. So lots of questions at this point. Hadley, i want to bring you the latest flashes. Russia and the u. S. Are to meet at the u. N. General assembly to set dates for the peace talks. The Russian Foreign minister lavrov praises carry for understanding the importance of moving ahead with syria diplomacy. So some pretty constellatory comments coming out. Everyone seems to want at this point a diplomatic solution. But at the end of the day, you have to answer the question whether theyre going to be taking away assads toys, his chemical weapons, or whether theyre actually going to thank him. Thank you so much for that, hadley. The s. E. C. And major u. S. Exchanges have agreed to reforms in the wake of last months computer glitch at the nasdaq. That halted trading for more than three hours. S. E. C. Chair Mary Jo White medicine with the heads of the nasdaq and other exchanges in washington on thursday. Among the reforms discussed, kill switches that would automatically shut down trading during emergencies. The s. E. C. Plans to finalize rules for tighter oversight on the exchanges requiring them to routinely test their trading system. Authorities have been able to bring a massive fire under control in a town along the jersey shore that was ravaged by serumstorm sandy last year. The blaze devoured eight blocks of the boardwalk in seaside park and Seaside Heights destroyed dozens of businesses and caused millions of dollars in damage. Crews were able to stop the spread of the fire by ripping out wooden boards. We leave you with these pictures. Welcome back to the show. Americans are casting a slightly more positive eye towards republicans in congress. The latest nbc wall street journal poll shows the gop is now rated higher than democrats on key issues such as the economy and foreign policy. Democrats long standing hold on social issues such as health care has been whittled down. The shift comes as public sentiment turns a bit more grim on the direction of the country, just 27 think the u. S. Economy will improve over the next year and twothirds think the u. S. Is actually on the wrong track. Market buzz earlier this morning was suggesting that the dollar is climbing against the yen and korean won on a record that the nikkei that president obama is set to nominate Larry Summers as the next Federal Reserve chairman next week. Those we spoke to say as a market devoid of news flow, the report probably confirms that. The senates number two republican has said he will vote against summers appointment. Larry cornin is the first to declare his opposition to larry summe summers. The dow is off 26 points, the s p losing five and the nasdaq off by 9 points. We saw a drop in pressure metal prices. Mining shares lower and the s p, by the way, ending seven Straight Days of gains. It is now less than 2 away from an alltime high. Joining us now from the cme is todd from options. Com. Weve got retail Sales Numbers on the dock today. Weve got Consumer Sentiment, ppi. Are these data points, which could tip the scale in favor of more fed of more fed tapering because we really dont know anything about tapering as far as the jobs are concerned. I think ppi would be the most likely to help fed make the taper. But but i dont know what theyre going to do with their tapering. Since theyve become the Worlds Largest hedge fund, i think theyre in a bit of a problem. I dont know that they can make a significant taper when they meet next wednesday. So the s p futures are pushing up against some key resistance levels from here. What might drive us through into another rally . You know, i dont really see us going through to another rally. But the biggest problem, i think, if you go into the next earnings season if we actually see some real growth instead of the artificial growth, you know, the fed subsidy has pushed this market higher without any real growth. We saw the last earnings period, we kept seeing the miss in the top line, the revenue line. Were not creating a revenue, were not creating jobs. Our jobs report, although the number came down again last week, is really a lot worse. True unemployment is about 24 in this country and we have the lowest participation by males since it started. So until we get some real growth and hiring Companies Start going back to work, i think theres not a real big push here to push us through to the up side. September is supposedly the worst month of the year for stocks. But u. S. Markets have been defying all odds, despite syria, despite the taperings here. Whats going on here . August was a terrible month. We still have happy money. We had the opening week of the month a little stronger. People are still chasing yields, where to go with their money. The only game in town still remain tess u. S. Equity market. And that is the one thing that can push us forward is that ever chase for yield. Okay. Todd, i appreciate your insight this morning, todd wore wits of options. Com and i want to thank alan capper, head of credit strategy at Lloyds Banking group. Earlier, we asked you about your biggest phobia coinciding with friday the 13th. Steve sweded never heard of nomophobia, but britains are inflicted by it i told you this is one of my biggest fears, it is the fear of losing your smartphone or the fear of losing access to yes, ive got to say, yes, i had this big fear of losing my blackberry. Thats it for todays show. Im carolin roth. Thank you so much for watching worldwide exchange. Ross westgate is back on monday. Have a fantastic day and a great weekend. 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. Ths what membership does. Good morning. Todays top story, twitter has filed an ipo after months of speculation. Fed matters, reports suggesting Larry Summers could be nominated as the next central bank chairman, which we were, i think, kind of expecting, because harwitz said the same thing. And the nasdaq snaps the sevenday winning streak as an announcement could come as early as next week. It is friday, september 13th, 2013, but dont be afraid. Squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. On todays agenda, we have a final batch of key economic numbers coming ahead of the feds twoday meeting next week. At 8 30 eastern time, we have august retail sales and a Producer Price index. Comes um at 9 55, we get Consumer Sentiment. Five minutes later at 10 00, we get business inventories. These are the last numbers the fed will get to look at before that meeting next week. Reports that Larry Summers will be nominated as fed chief as early as next week are moving markets today. It says president obama could make that announcement after the feds wednesday meeting. Again, the source coming from the nikkei newspaper, an interesting one because you wonder who has been talking to whom about this and where tir