Strong sales in china host a better than expected pretax profit. Shares up more than 5 in early trade. And just a week ago, it was unthinkable. But the sailing team backed by Larry Ellison overcomes the most probable odds to claim victory as winning the americas cup. Well talk about the americas cup a little bit later. 81 down and they win 98. 54 is where we stand on the down jones stoxx 600. We had losses for the u. S. Markets down, s p down for five straight days. Fairly flat on the if it is ft. Right now. Really, what were seeing in the last few days is directionless trading and a slow edge downwards. Ftse 100 flat. Xetra dax down 0. 2 . Cac 40 off 0. 3 . H m sales up 6. 4 . Pretax profits for the quarter 5. 8 billion pounds. Alcatel lucent up 6. 36 . Tui travel, up about 1. 35 today. The company lifted its full year profit forecast. The group, which owns the thompson and first choice brand saying that Strong Demand in its british markets will help push it to an operating growth of around about 11 . Unlike thomas cook, the other travel group in london down 6. 3 . The company said Better Weather, of course, europe this year had stopped to be seeking some further afield. As individual companies, as far as bond yields are concerned, well be keeping our eyes on the uk. Weve got the final gdp out in 25 minutes or so. The second revision did pick up from 0. 6 to 0. 7 . Weve got final print of gdp out of the u. S. Today. Yields, 2763 . Still below where we move post the fed 2. 67 yield. Italian yields slightly higher at the moment. Take a look at the currency markets, havent done a lot over this week. Dollar yen still just below 99 and sterling still maintaining that 1. 60 level. We havent improved or moved much away from the levels we hit this time last week. Lets get a check on markets in asia. Li sixuan standing by in singapore. Sixuan, over to you. Thank you, deidre. Despite u. S. Fiscal worries, the nikkei 225 reverse warning will send higher by 1. 2 on hopes of imminent Corporate Tax cuts. An xwokt vehicle related tax cuts supported automakers. But china markets saw profit taking ahead of the week long holiday this week. The shanghai deposit ending down almost 2 . And the big loser on the hong kong bores was Global Supply chain manager leonfong. Its major customer, walmart, is cutting orders. But solth is south korea ended marginally in the green. Lixil gained 4 after reaching an agreement to buy germanys groche for about 4 billion. Tenco jumping over 7 . Meanwhile, stocks soft bank got a boost of 3. 67 . They value alibaba at about 7. 5 billion. That is about a third of the companys market cap. Back to you. That alibaba listing, one to look forward to. Thank you very much. U. S. Senate majority leader harry reid with House Democrats wednesday night to avoid a shutdown. Re id says he will not let republicans include provisions in the funding bill or delay or defund obama care. The senate is on track this weekend leaving the house little time to counter before tuesdays deadlines. House republicans are expected to huddle today to plan their next move. They could vote friday to raise the debt limit, but the measure is expected to be packed with gop wish lists, items such as canceling parts of obama care and approving the keystone pipeline. Ross. Yeah. Meanwhile, the battle in washington is weighing on investment sentiment. Its seen five days of consecutive losses, closing down nearly 32 . Its suggested the firm is canceling orders from supply on growing inventories, which sent the stock lower. The stock is down another 1. 5 in frankfurt. Joining us now from ubs, there doesnt seem to be a reason for anybody to get momentum either way at the moment. I think weve had a great rally so far to the year. I think weve hit some political concerns in the u. S. We have debt ceiling, Government Shutdown, project 2014, all these things hitting us now. Were in between earnings season and theres not too much corporate flow. I think were in a situation where basically people are taking profits off the moves we have. Were waiting for tapering. We are in a bit of a waiting mode. If we had some taper, would it be any different . I think having prepared the markets for tapering, it was peculiar that we didnt get it. I think we would have more certainty. I think the knee jerk reaction in the emerging markets, turkey is up 6 or 7 the next day. The knee jerk reaction was risk on. We now have this volatility around the decision and communication from the fed. So, actually, if we had had it, i think markets may have continued and with one less uncertainty to worry about. As far as the fed and whats going on there, is the upcoming going to hit the debt ceiling. And markets have slid off a little bit, but not very much. Do you think investors have become complacent and are we in for a nasty surprise leading up to october 17th . Look, our view is we will get around these issues in the u. S. As we have done before. But with a lot more volatility. Right. But the thing thats countering it is these Economic Data points are pretty good. So the pmis are strong in the u. S. , strong in the uk and strong in china. Theyre even strong in europe. Thats the big difference for the last four or five years. Occasionally, china has been stronger. But now its much more coordinated. Where do you want to keep your money, then . Do you want to go back into emerging markets with data signs improving in places like china . We took the u. S. Down from neutral over the summer and we put the money into europe, continental europe. Europe has much more bang for the buck, basically. You have very depressed economies. Valuations arent expensive, but theyre relatively full. And is we think theres more upside in europe rather than the u. S. Is it time to go back into emerging markets . Were cautious on emerging markets from a cultural perspective. Having said that, i think the feds lack of papers bought them some time. Youve seen a rally in the last month or so. I would argue theres still problems with profitability for the corporate level rather than the gdp. But you dont think the tapering is as big a threat . Lets talk about blackberry. Are you okay to talk about blackberry . Im okay to talk about blackberry. Its from my hometown. I just wanted to make sure youre okay on to talk about this. The effort to take the Company Private is being led by fairfax. The fairfax chairman told reuters hes confident they will get the financing approval for the deal to go ahead. It would cost a near 1 billion loss. T mobile says it will no longer stock blackberry devices in its u. S. Wireless stores. It will still ship blackberrys to customers who want them, mostly business users. Thats a big thing, right . A retailer saying were no longer going to have it. You know, i thought i was okay talking about blackberry, but after what you just said, that is depressing. I wasnt asking just i was being real. You were asking me the other day, i must know, you know, how nokia felt. Its on that track and well talk about nokia because its board is reportedly weighing up whether to join forces with Alcatel Lucent. Official talks about a tieup have not begun, but the firm is looking at options for future growth. It comes weeks after the Company Announced sales of its hand set business to microsoft. Nokias chairman has asked the ceo stephane elosk if he will give up all or part of his 18 million euro payoff. Lets get back to nick nelson now, global head of Equity Strategies ubs. We talked about two smartphonemakers that have had a lot of trouble. Generally, the smartphone space seems a little bit saturated, at least on the high end. Even apple and samsung who have been very successful are dealing with that. Would you be getting into the tech space . Particularly some of the smartphonemakers. If so, which ones do you like . The top end has been very competitive and the edge that apple has had, the asian producers are kind of caught up there. Blackberry, interestingly, it seems we have a blackberry. But i guess the generation below certainly seems to be on darchbt smartphone. Im sure we have the top of the arranged models. I have a reasonable blackberry but its different from the technology we can have with the other smartphones. So i think its pretty competitive out there. Having said that, more broadly, we are seeing m a come intact. Weve seen that in the nokia deal. And i would argue if you look at tech as a hole, its quite consolidated. U. S. Companies are releveraging. The credit cycle there is exactly. You might get concerned about it on some level. Well, maybe, but theyve got a pile of cash, right . The bond issue, about 175 billion of cash on the balance sheet. The sector of the whole tech is cash positive. Theres no doubt, piles of cash. Yes, they have access to cash, access to financing. And i said the idea of United StatesCompanies Buying european or Asian Companies i think will continue. The one tech name that you have is infineon. What is that predicated from . So this is what we did from the top down perspective. Looking at the potential for cap ex to pick up. Although the economy is Getting Better and in the u. S. Housing is better, the consumer is better, you really havent seen Business Investment and cap ex. And is we would argue that that is the next step of the market move. And if thats the case, infineon is exposed to broader investment and should do okay. Thank you. Were going to get more stock picks from you later in the show. Meanwhile, telecom is making m a headlines in southeast asia. Malaysias axita is buying axy telekom. To meet the rules, the indonesian unit will take a 95 stake in access allowing an indonesian shareholder to hold the last 5 . Malaysias telco has been looking to extend its network in malaysia and will give it access to 65 million customers. Axiata shares are up by about 0. 4 . The British Treasury going up for a showdown with the eu over banker bonuses. George osborne has filed a case with the courts of justice in which he argues the rules push bankers fixed pay up rather than down, which will make the banks themselves riskier. Michelle barnier said the reform is necessary to bring stability to the european banks system. Should the British Government weigh in on behalf of bankers . Let us know. Join the conversation here on worldwide exchange. Get in touch with us. Email, worldwide cnbc. Com. krns we can see or direct to me rosswestgate. I think this will be a touchy subject, i think. deecnbc, as well. Meanwhile, Lloyd Blankstein once described banking as gods work. Dont miss his latest comments. Check them out on cnbc. Com. I think we mentioned our twitter handles, but maybe not the cnbc world twitter handle. That is cnbcworld. Plenty more to tom on todays show, as well. H m reports Third Quarter results. In china, is the picture as bright of the british high street . Well take a look at that. And at 10 30 cet, tune in as we cross to the annual salt conference to hear from the dprut managing director at the imf, john lipski. The u. S. Will hit its debt ceiling by the middle of october. Can u. S. Politicians break the gridlock . Well discuss that. And how has indecision in washington affected International Markets . At 11 50 cet, our guest says the dollar is suffering and it is time for the Obama Administration to get a grip. Plus, the two gridiron games in london this year. This week, the Minnesota Vikings and Pittsburgh Steelers are in the british capital for a showdown. Well talk to the mayor of minnesota on the game as well as tackling some of the Current Health of u. S. Cities. I like that. Anyway, did warm weather in europe this summer leave retailers out in the cold . We will check in on the uks high street. That is coming up next. Stay with us. 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 . New cuts on wages and pevengzs are out of the question. Echoing the recent remarks from the finance minister that there will be no more austerity. Meanwhile, growing backlash against the activities of greeces far right Golden Dawn Party intensified yesterday as violent scenes broke out near the partys athens headquarters. Police fired tear gas at protesters incensed by last weeks murder of pablos. In italy, the coalition is coming under increase b pressure. A leader in Sylvia Berlusconis party said the center right could withdraw support from the government. Speaking to Maria Bartiromo in new york, he said structure reform would be a big part of the forthcoming budget. We will present the budget by the 15th of october. Around this period, we will discuss about the general reform of the rate of the v. A. T. So it will be a big discussion because we need to put there. Maria asked the Prime Minister how he felt about the recent deal between telecom eye tall ya and telefonica ahead of what looks like to be a stormy meeting between the two boards on october 3rd. It is good if it brings competitiveness to the telecom system. The 15 years of Telecom Italian wasnt a story in my view. So we will see what the spanish will do. What i would do as government, of course, i will preserve the Strategic Interests of italy. The final thought from nick who is still with us. Think about to the summer of 2010, 2011, the phone is ringing, coming through, so i think the omt or lets say the breath of the omt is enough to give credibility to the reaction function from the cmt and to support these bond markets. I think that is taking the data there. Theres a cyclical recovery. Thats going to be pretty good pickings, isnt it . Its a cyclical recovery from very depressed level. If you look at earnings in europe, theyre below the peak in 2007. If you look at the u. S. , its some 20 above. Europe has not regained where it was from five or six years ago. I think thats the opportunity. And there has been some structural reform. Theres been some reform in spain. You mentioned that cap ex. Why is that going to get spent in europe . It leaves europe and is less of a gap, theres less fair capacity utilization. And that so im just going to pick up. You mentioned infineon. Who else benefits . We had a whole list of companies that we looked at. Even banks. Thats the thing. If you see cap ex improving, youll see bank lending improving. Bank lending is improving in the u. S. Thats why we think it will come through at some point. Not to go around the world in a few minutes, but i want to ask you about japan because i normally sit in singapore. The company was seeing a huge pick up in cap ex yet. Do you care that will happen . I think it will happen in time. Well struggle to get through this. Weve had the weakening of the yen. We stuck a little bit of the hundred on dollar yen. I think the next move is about structural reform, reform of integration, female participation in the workforce. If they can get that going, well get the economy going. Is this economy in japan Strong Enough for abe to introduce the sales tax . What do you think is going to happen . Japan could accelerate their program, right . It could accelerate further. Amid the stocks you like, what are the areas you actually think i dont want to go near that. I think theyre underweight. Things like consumer staple companies, the food producers, the beverage stocks. Its that broad universe. Theyve had a very few years. A good crisis. You dont need that momentum as much. Nick, always good to see you. Thanks so much indeed for joining us. Nick nelson, global head of equity strategy. I want to make sure i get the right silo. Thanks so much. Good to see you. Email us, worldwide cnbc. Com. We will answer them. There is still much to come on the show. The u. S. Gdp data is due for release in a few minutes. This is according to chancellor. Well see you in just a few minutes. Stay with us. Sh countdown to a shutdown. The battle in washington is weighing on investors nerves the. But telecoms trade higher in europe led by equipmentmaker Alcatel Lucent followed by reports that nokia is discussing a possible tieup with the french group. Strong sales in china help better than expected pretax profit in the First Quarter. Shares up more than 5 . And rosss favorite story of the day, just a week ago, it was unthinkable. But the sailing team backed by billionaire larry elison overcomes odds to claim victory at the winning of the americas cup. An amazing victory. 81 down. They won the next eight races coming in as tactician and it is worth pointing out, a lot of the crew were kiwis. Right now, we have the latest current accounts data and provision on gdp from the omf. The final unreveesed by 4. 7 . It picked up the second print. There was a thought that even construction had moved higher. Weve got the latest current account numbers as well. And the First Quarter current account revised deficit, as well. Thats not helping sterling out, either. The Second Quarter current account deficit coming at 13. The First Quarter current account was revised to deficit. Probably weighing more on sterling than the unrevised gdp figure. Meanwhile, european equities stopped today. Its worth pointing out. Well see if theres any more reaction from the ftse. Down 0. 2 . Cac 40 down 0. 5 and the ftse mib has the worst of it, down 1. 7 percent. More threats from the berlusconi government about destabilizing the government if they dont like policy. Lets take a look at the bond space. The tenyear bund at 1. 83 . Thats the german bund at the top there. Thats 1. 83 . Tenyear treasuries still hovering around that 276 line, backing off that 3 level it got close to. Trchb r tenyear gilt will be moving. The tenyear italian at 4. 44. Just down to 1. 6050. David, no change to the final print of gdp. Current account deficit, 13 billion and the First Quarter account revised a deficit of 1. 8 billion. Whats the significant of that . This recovery were getting in the uk is not over a sustainable variety, necessarily. The uk got this big external deficit in the world and was making a pretty hard slog of narrowing that. I think it doesnt make a lot of difference for the shortterm gdp, the growth outlet. But it does highlight the rebalancing of the uk economy, the project thats been delayed a little bit. Were never going to rebalance the uk economy. Its pointless. Weve got whatever size manufacturing is is the size it is. And i dont see why thats actually going to change a whole lot. Yeah, well, the necessary points, on the pessimistic side, but i mean, we can grow exports and services, as well. Its been fairly steady. The current account has been fluctuating a lot. A lot of that has to do with the profit of the uk subsidiaries theyre owning overseas. Its not all about the uk story. It will take a long time, i think. Therefore, what do you make of what youre hinting at earlier . Is this where the uk recovery is coming from . Weve seen a pick up in consumer spending, housing has done fairly well. There have been some export growth. How worried are you that we dont have any you know, where is the investment, i suppose . Where is the investment for Sustainable Growth . I think it can be overtalked, this story that the uk recoverys housing and consumer led. If you look at the details of the data, there does seem to be a fairly broad based recovery right now. I think possibly the worries are more about next year will help to buy coming on in this second sort of push in the Housing Market. Increasingly, the growth were going to get may have a bit more of a consumer led view to it. So i do think, you know, ideally, you would be seeing a stronger profile for Business Investment in coming quarters. And the concern, really, is that while the Banking System is in better shape than it was, it may still not be in the shape it needs to be to power Business Investment from smaller corporates particularly. There are still lingering concerns, really. Interesting. The spc came out and said that theyre worried at the Housing Market at the moment. But how upsit are you that since we issued Forward Guidance, the yield has done nothing to really go up. Does that policy effective or not . It might if you get a succession of labor market prints that show the market not falling. It might begin to recalibrate its view. The ware the barngs in Forward Guidance for years and not just for a number of months. The jury is still a little bit out on that. But as far as the Housing Market is concerned, the spc has said theres nothing to worry about now, which, of course wab theyre absolutely right. The worry is where we are in years, what the acceleration in the Housing Market momentum does over that period of time. And, you know, it may be a harder sale to be saying that in 12 months time than it is today. David, were going to be talking about this throughout the show. I want to get your quick opinion. But this whole sort of war of words over a bonus cap in the uk, do you want to weigh in on that . Y06 a stopping view on that, to be honest. The uk has a particular angle in terms of protecting the city and it will carry on fighting its corner over the next few years. Yeah. I guess well see, too, what happens with that particular fight. Regulators meeting at the salt conference in singapore are warning of the biggest threats to Global Financial excuse me, Global Financial stability. But speaking to cnbc, former ecb president jeanclaude tree say says europes Central Banks are in a good position and are doing better than perceived. Joining us from the salt korns in singapore and speaking in a first on cnbc, john, thanks for being with us. Let me first get your overall views of how you think the economic recovery is going and weigh in a little bit on whats going on in washington and what the effects might be as we head towards the debt ceiling, which seems to be the more pressing issue. Indeed. First of all, i think the Global Economy can be characterized as moderate growth. The advanced economies are doing a little bit better right now than has been anticipated earlier. Finally, there are signs that the eurozone has emerged from downturn and is growing albeit at a more moderate pace. Some of the emerging economies are struggling with financing. But broadly put, we seem to be headed towards somewhat faster growth globally in the coming year. And that is thats favorable. And, john, what are your views on whats going on in washington right now . Does this have the ability to really take away some confidence in the recovery . And when you say going on in washington, youre referring to the budgetary situation debt ceiling in particular . Is that right . Yep, thats it. Rather than the fed. Well, the all i can say is on this one obviously folks in the Financial Market and elsewhere view dramatic outcomes like Government Shutdown is puzzling as a prospect. But when i ask the experts whose judgment i trust, they tell me they just dont know. Nonetheless, i think most folks would believe that there has to be a plausible compromise available that would avoid deleterious impacts on the u. S. Financial markets, potentially on the economy, and, hence, globally. And, john, picking up on that, do you now think that its policymakers who pose the biggest threat to Financial Stability . And we have i mean, andy howell, they purposely have blown the biggest Government Bond bubble in history. Well, the i would say right now that the fundamentals, as i said a minute ago, fundamentals are turning out to be a little better than the pessimists had thought earlier or even consensus views earlier this year. Right now, concerns seem to center much more on policies and if we can write that large. Of course, geor politics also potentially plays a role. Weve seen substantial concerns about developments in the middle east without having huge impacts on energy markets. So both in the way youve discuss it it earlier, budgetary policy in the u. S. And elsewhere, as well as geopolitical aspects have the potential. I think the greatest potential for causing trouble right now. Rather than the what about the exit from look, we seem to have a real problem exiting from quantitative easing. The feds blink. They couldnt do it. Thats caused massive disturbance of capital flows into emerging markets. Well, i dont know if massive is the right word here. The certainly earlier in the year, last may specifically when chairman bernanke indicated the possibility of tapering struck me that this came in the context as i mentioned already in which the fundamental Economic News in the u. S. , japan and elsewhere was actually stronger than earlier consensus views had held. And, therefore, i thought mr. Bernankes statement helped crystallize the view, rather than simply caused it because of tapering, per se. In that environment, investors raise questions about the ability of emerging markets with large current deficits to continue to attract capital and that has caused strains. But those strains seem to me to be quite likely in a context of large current deficits and relatively moderate global growth. So i think too much can be made of the tapering issue, especially because its been controversial as to how much impact qe3 has even had on the u. S. Economy and elsewhere. And as weve seen, there were certainly market turmoil turmoil is too strong. Market volatility when the fed does not engage in the tapering that was widely expected. But if youve seen, markets have returned to the status quo quite quickly. Right. So it strikes me that its possible to make too much of the tapering issue, per se. John, i was sitting in singapore when the taper talk first came out. You saw the indian rupee hit record low after record low and it certainly looks like turmoil to us. Do you think by pushing back tapering were going to see the same thing happen in some of these current deficit account countries run into problems down the road . Do you think theyve now priced it up . Lets come back to the first bit. It strikes me, as i said, that the problems in india and elsewhere in the wake of the may 22nd statement about tapering represented a crystalzation of a whole lot of things and not tapering, per se. Similarly, its clear that the advanced economy Central Banks continue to follow policies that are enormously accommodative and expansionary and they are going to make meaningful reductions in their the accommodation of their policy stance only when fundamentals strengthen. And it strikes me that thats much more important for emerging economies than the inevitable move of Central Banks to normalize their policies in the advanced economies. Big picture, the important point for those emerging economies running each deficits right now is to put their economies right through the standard measures of fiscal monetary ajustment and instruct tufrl reform that will give them the resilience that is needed. Mr. Lipski, let me ask you, tlu a danger on holding off, using quantitative eedzing for too long . We see markets keep going upandup with little correction. Do you think its dangerous to continue this program for too long . Well, lets put it the way you posed it, if they hold off too long by definition, they should have acted earlier. But id say the important point is right now investors and others are far from certain about exactly what the to use some jargon the federal reserves reaction function is right now. Its a little plaid for investors to be certain they understand exactly what aspects are driving fed policy. And it struck me in the past that the fed has always preferred a situation in which their not necessarily always, but in modern times they have preferred a situation in which investors understood the feds goals clearly, understood how the fed was likely to use its policy instruments and, therefore, could anticipate with a fair amount of accuracy what the fed would do. Its never strikes me that the feds goal has been to keep investors in the dark and uncertain about future fed action. Mr. Lipski, thank you so much for being with us from singapore. That was john lipski, former first deputy managing director at the imf. And if you have thoughts our comments, email us, worldwide cnbc. Com the. Lets look at whats on the jand in asia tomorrow. We will see whether the boj can continue recent progress in its ongoing deflation sight about cpi is released for all. China reports august industrial profit figures while vietnams gdp data for q3 is due. And india will be looking to improve strained trade relations with the u. S. When the Prime Minister pays a visit to the white house. Meanwhile, still to come, George Osborne says hes going to take the eu to court over capping bankers bonuses. Well get into that as soon as we come back. Britains treasury is gearing up for a showdown with George Osborne. He argues pushing up bankers fixed pay will make banks riskier rather than safer. The eu financial chief, who will have to defend the bonus cap in court said the reform is necessary to bring stability to the Banking System. Phillipe is on the committee for economic current affairs. Thank you so much indeed for joining us. What do you make of this this launch of an appeal from the British Treasury . Why are they wrong to suggest that higher fixed costs increase bank risks . Well, theres two sides of the argument. A, its not a given that banks are going to compensate potential loss of variable by day by raising fixed pay. If they believe this is an unsolved move in business terms, they should rather refrain from doing that. B, its not for the European Court of justice to judge the practical merits of legislation. They have to check whether the legal grounds are solid. And i know that theres parts of the uk complaint that are based on that, but its not for to make political judgments and that force policy marriages to make and we made the judgment that the rule that we have put in place and enacted in the legislation is increasing stability and not decreasing it. I think that the arguments used against it are motivated more by selfinterest than by the general interests. And i do deplore that George Osborne decides to side with the narrow interests of a few in london. Im not sure that this will do him any good. Well, its the view that has been shared by many of the financial policy committee, the bank of england, as well. Why do you think banks wont if banks do raised fixed kochtsdz by paying their star traders more to keep them on their books so they can compete with banks in new york or hong kong or singapore, why do you think that is an increasing risk . It is not increasing risk because look and see how bonuses evolved in the financial crisis. Actually, most of what is called a bonus today is actually that means even in the direst of all downturns, it remains being paid out so actually, the banks are paying most of it. So its just a matter of window dressing as far as im concerned. I cant get my head around this. Bonuses are tied to performance. No, they are not. This is a fiction. Im sorry . This is a fiction. Its a fiction that bonuses are linked to performance. Look again. I mean, look at the evolution of payouts in 2009, 2010 when we were really in the midst of the worst of all downattorneys. Most payouts well, most bonuses ended up being paid out regardless. Even though even though the performance of the financial industry was abysmal. Mr. Lamberts, though, what im talking about is why not fix the system which exist toes make sure the bonuses are actually tied to performance . Youre saying that that doesnt exist right now. But why not fix that rather than taking it out on well, the only way to fix it will be to bring back the Major Financial Institution to a situation of real competition that is well, reduce or eliminate the rent that they enjoy. Actually, these absurdly high bonuses are the way rent is distributed to the happy few. The fact is that the absurdly high profits of banks end up being possible because of, a, the implicit subsidy of space and, b, the fact that they are still able to sell to the states that are destroying the information. They are distracting money from society rather than creating value. That is the basic problem. If we could eliminate the rent that is created, we would actually tackle the problem at the root and we wouldnt need any bonus regulations. It is because theres a total lack of willingness, of political willingness to go after the too big to fail issue that then we have to end up doing something on the bonus side, which is more a symptom than the actual recourse. Just one thing. Are you concerned that look, weve raised all the capital levels of banks. We still have a lot more to do i guess with the eurozone. There is. Not on just in the eurozone, by the way. Look at the leverage ratios that we are observing both in the u. S. And in europe. Are you concerned that we get a revaulging of Government Bond yields, we get fixed income assets. Correct. They were told to stock up on ultra safe assets, which are not when you buy them at the bottom of the i agree. That is part of what we advocated around the fight and the whole negotiation of these basul 3 rules, we advocated taking a hard look at Government Bonds and not artificially give them a zero risk weight. But then again, the only way to get around this is go for a leveraged rate situation. Ive never been a supporter of that and i believe that we should go to limiting the leverage ratio to a factor ten or Something Like that, which by the way is already the leverage ratio under which a large number of banks who are dealing with the real economy are working and they are profitable. The only thing is that they are never quite as profitable as what jpmorgan and the barclays and the do you have ya banks of this world are. That is what basically those banks are fighting. They do not want to go back to the normal profit level of a financial industry which can never be 20 or 15 or 12. Weve had some comments out, as well, from the ecbs board member. He says the United States must reorder their fiscal policy in the longterm. Hes convinced that the u. S. Will find a pragmatic and shortterm solution. I think thats what most investors believe. Also the eu trade agreement with the u. S. Would make a real contribution to strengthening the Growth Potential in europe. Now, keep your thoughts coming on all of that. If you have any thoughts of comments, email us. As we head towards the second hour of worldwide exchange, european equities today touched softer, that ftse mib is down more than others. Down 2 . We have more comments coming out suggesting that if theres another tax that goes through that they dont like, they may threaten to withdraw support from the coligsz. Maria was speaking to the italian Prime Minister yesterday. Got some interesting comments there. And the xetra dax is just down. 25 . Weve had five days of losses, of course, for the s p and the dow. The most all year, right . Yeah. Still lots to come on this show. Stay with us. [ agent smith ] ive Found Software that intrigues me. It appears its an agent of good. [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] youre watching worldwide exchange. Im ross westgate. And im deidre. The countdown to a shutdown in washington. But telecoms led higher led by equipmentmaker alcatelluc t alcatellucent. Strong sales in china if a help h m post a better than expected pretax profit on. Shares have been up more than 5 . And just a week ago, ross, i know you love this one, it was absolutely unthinkable. But the sailing team backed by larry elison overcomes probable odds at sea winning the americas cup. New zealand needed to win only one more race and they didnt. Tacticians for ben ans is ley helping out. Well get the latest from San Francisco coming up. Right now, u. S. Futures are point to go a slately better start after five consecutive down days for the s p. The dow off 61 points, the s p down four yesterday. Right now, we are trading some 37 points above fair value for the dow, the nasdaq about 12. 5 points above fair value. The s p is currently just over 3 points above fair value. The ftse cnbc global 300 has been fairly flat during this session. And european equities have been softer throughout most of it, as well. The ftse 100 has been fairly flat. The xetra dax down 0. 25 . The cac 40 off 0. 4 . There has been more from Sylvia Berlusconis party that they may, again, try and destabilize government if their coalition tax which they dont like. A number of individual stocks were looking at here in europe, h m stocks have been tailored just right. The retailer saw its pretax profit for the First Quarter, 5. 8 billion swedish crowns that comfortably beat forecasts. Sales for september, its first Fourth Quarter month up 8 on the year. Alcatel lucent up 5. 5 . The network equipmentmaker for mobile up after reports from nokia suggesting that it has considered previously talking about a tieup with the french company. Tui travel up 1. 5 . Thomas cook group is down 7. . Bookings at the travel operator slowing over the summer because they say Better Weather in europe meant there was essentially less long haul travel. Take a look at bond markets. We saw gdp unrevised for the uk at 0. 7 for the last quarter. But a big widening out in current account deficits. Tenyear treasury yields, 2. 63 , lower from the immediate level we hit post the fed, which was 2. 67 . Italian yields lily higher at 4. 43 . Currency markets, pretty much where we were last thursday. Dollar yen, 98. 60. Sterling just above 1. 60. And the aussie dollar just below 94. Dee. Lets get a check now on asian markets. Sixuan, over to you. Youre right, deidre. With looming washington deadlines weighing on the markets, the nikkei 225 outperformed higher by 1. 2 today on hopes of future tax cuts. And speculation about sheer buying by a huge state pension fund. The china markets saw trading ahead of a weeklong holiday. And the hang seng is down 0. 36 pergs. The kospi asx 200 both ended marginally in the green. Take a look at some top movers. Japans lixil gavend almost 4 after reaching an agreement to buy germanys grohe for about 4 billion. Tenco is among the top gainers jumping about 7 . The operator of the crippled Fukushima Daiichi plant vowed to step ahead to restart a new Nuclear Power plant hoping to return to a profit. Stocks got a boost as china ins alibaba plans for u. S. Listing after talks with hong kong authorities broke down. Soft ddz bank has a roughly 37 stake in this chinese internet giant with analysts valuing alibaba at about 70 billion. That will give soft bank about 5 billion. That is about a third of the companys market cap. Some weird commentary coming out from the treasury there. Sixuan, thank you so much for that. Ross. We just got some comments out from the richmond fed president , jeffrey lacker, a member of the federal reserve, of course. Essentially saying its going to be harder for the fed to communicate credibly post the latest decision after its surprise decision not to taper. Its going to be harder to communicate in the future. It could be hard to do it, as well. This is taper in october without losing faith. But i dont see why we couldnt do it. He has been critical, of course, of the feds asset purchases, particularly of mortgages, which he says constitutes fiscal policy and opens the central bank to greater political metaling. Gina is with us now. Good to see you. Good to see you. Gina, do you sympathize with what lacker is saying . Clearly, well get on to the u. S. Government. Again na was one of the ones that didnt think the taper was going to happen. So no communication problem for you, right . Right. I had been talk, murel who has been talking to most of the fed committee members. And he just didnt see this in the cards because there was no obvious and clear signal that this there was if you looked at housing, thats pretty Interest Rate dependant. Why had not more members of the fed communicated that to because the market i dont know, maybe its just after the media. But the board skews market thought it was coming. Market participants look at a string of positive upward revisions, positive beats. So what happened was expectations got beaten down so much that we sort of had this string of beats and expectations, so positive surprises. So even though the data was somewhat mixed in stock, it was still going down in positive supplies. Just a lack of point briefly, he said, look, we could do it in october. But it would cause a head scratch. Does that mean they cant do it . No, they cant end do it in october. My expectation has been in december. Roubini agrees with me on that. And at the end of the day, what we know is that they cannot start the taper, krt bond markets roll out on of bed and roll that back. U. S. Senate majority leader harry reid with House Democrats wednesday night. As the deadline to avoid a Government Shutdown nears. Reid says he will not let republicans include provisions in the spending bill to delay or postpone obama care. House republicans are expected to huddle today to plan their next move on that bill and the debt ceiling. They could vote friday to raise the debt limit, but the measure is expected to be packed with gop wish list items, such as canceling parts of obama care and approving the keystone pipeline. Lets get back to gina. Im sure you have lots of thoughts on this. How is this going to play out . I think everybody knows. Weve been to this movie now a few times. This will go down to the last minute. I think theres a lot of talk that this round could be quite a bit uglier than the last round. Obviously, we are in a worse off fiscal policy than we were the last time we were looking at the debt ceiling. So i think there could be quite a bit more kind of drama around that. Are markets prepared for that . Because we have not seen the volatility that we saw the last few times. And how much risk is there that this movie ends differently and badly . Well, i mean, i think theres a lot of risk to mark to market risk. I think that this will sort itself out. So i think its just a lot of volatility thats going to come into the markets. So while at the lefts that they are right now, i think are sort of quite cheap. Relative to whats coming. I have been recommending very small pieces of insurance. The great things about vix is a little goes a long way. And so you can sort of hedge part of your portfolio. But weve been long equities. We went long equities a while ago and stayed long through september even though there was quite a bit of expectation through september, sort of the month that we would see a swoon. And that certainly hasnt happened. We can get to it. October. Yes, october, november, theyre all bad months. They will resolve it. Its a little bit of insurance. Absolutely. I think vix is low right now in many cases. You know, we talk so much about the debt ceiling. A few weeks ago, we were talking about the next fed sheet and that seems to maybe is it priced in . Is janet yellen priced in and the markets are okay with that now . When summers dropped out, i think there was a bit of a market rally. I think the markets were concerned. I think now janet yellen is, in my view, somewhat of a shooin. Theres obviously more names being tossed around, but she has the credibility and she certainly has the support. Theres been a ground swell of support around her. Shes not a political creature and never has been. I think thats one of the reasons why she is a fantastic candidate for the role. She is also very much consensus builder, similar to ben bernanke, and so i think from that perspective, the style of fed governance would continue. I think that would be positive for the markets right now. And also, she thinks very much like ben bernanke. When youre unwinding the program, the you need to unwind it from the position that it was put in. You cant come in, and i think that was the concern around Something Like summers or anyone who might have aopposed it could jolt the market. So i think its been quite positive, but its priced in. Any surprise would be quite negative. Gina, were going to get back to you in a moment. Meantime, loss, lets geoff you a look at whats on todays agenda in the United States. Weekly jobless claims are out at 8 30 eastern forecast to rise by a total of 330,000. Also, at 8 30, we get a final estimate on Second Quarter gdp growth is expected to be revised upwards to 2. 8 . At 10 00 a. M. , it is august pending home sales, forecast to drop 1. 4 . Fed officials speak today. It could be trouble. Fed governor jeremy stein, minneapolis fed president nuriana kocherlakota and Kansas City Fed president esther george. That was an easy one, ross. Thats fine. Look, weve got the italian bond auction coming up at an interesting time. This is despite the fact that italian markets have been selling off today fairly heavily. This is after allies of Sylvia Berlusconi voted last night to resign. Its a special Senate Committee which meets now on october the 4th does vote in favor of berlusconi because of his tax convicti conviction. That story rumbling on and on. It would be nice if we got some closure on that one way or the other. Ross, earlier we asked the viewers whose side you are on as the uk government takes on europe over a planned cap on banker bonuses. Weve heard neal johnson from malaysia has i think hes one of my twitter followers from back in asia. He has tweeted to say we either have a free labor market or we do not. The eu should focus on important things like making sure bananas are straight. There was a while when bananas were a little too forget about bananas for a second, gina. Im trying to just move you away from the banana focus and back on to the eu planned to cap banker bonuses. Always a bad plan. I completely agree that free markets are free markets and if theyre not, you create inefficiencies. Thats how it is. You happens in any price market where you interfere with the pricing mechanism. Does the system need to be fixed . It depends on what you mean by the system. More in line because there isnt right now. If bonuses were rewarded for work that youve done that generate profits its said that you get rewarded regardless of what happens. I do believe bonuses should be merit based. But i think part of that is getting around other inefficiencies that have been created by other systems. And so, it is quite difficult to move pay around, for example, so they use the bonus structure as a way of getting around that, a way of committeeing to you a large amount of money. Email us here on worldwide exchange, tweet direct to me. That was terrible, ross. cnbcwex. Well be back in a moment. Just by talking to a helmet. It grabbed the patients record before we even picked him up. It found out the doctor we needed was at st. Annes. Wiggle your toes. [ driver ] and it got his okay on treatment from miles away. It even pulled strings with the stoplights. My ambulance talks with smoke alarms and pilots and stadiums. But, of course, its a good listener too. [ female announcer ] today cisco is connecting the internet of everything. So everything works like never before. Welcome back to worldwide exchange. These are your headlines. Congratulations to oracle for the comeback kid for sailing to victory in americas cup. Blackberry shares fell more than 6 on wednesday on doubts the 4. 7 billion bid to take the Company Private will go through. That effort is being led by fairfax financial. The chairman tells reuters, finance to go let the big go ahead. Conference call on friday in last week. Here for me. Okay. I will. Meanwhile, another National Champion by the wayside, nokia is now reportedly weighing up and have joined forces with alcatellucent. According to reuters, which cites sources close to the matter, officials talked have not begun. They have been looking at options for further growth. Theyve begun the sale of its iconic hand set business to microsoft. Sales up 8 for the year. In china before, singapore, same thing. Also in los angeles. And in new york. Everything right in terms of getting the right people big nam names. They got a dress on the red carpet on the oscars. And the key for all these guys is they changing every four weeks to something different. Thats what theyre giving back, right . Absolutely. You know if you like something, you have to buy it now. Or when you get back, you know stuff has changed. Or when they partner you with a big designer, its affordable to a lot of people. But even going back to china, good luck if you want to try to get any of those pieces. So thats interesting when they put up their results. They said that the expansion is strongest in china. Probably surprising nobody. Yeah. Thank goodness you are here, gina. Still to come on the show my knowledge of h m, from a practical hes a prada and if they opened one up where i am, i would probably know more. Still to come on the prak the former deputy of the imf says the taper tantrum is overblown. Is he right . We are going to discuss that after the break. [ agent smith ] ive Found Software that intrigues me. It appears its an agent of good. [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] [ telephone ringing ] building animatronics is all about gettinging room things to work together. Om. The timing, the actions, the reactions. Everything has to synch up. My expenses are no different. Receiptmatch on the business gold rewards card 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. With the budget battle brewing in washington, the timeline for winding down quantitative easing. But speaking first on cnbc, john lipski, the former deputy head of the imf suggested that all of that taper talk here again and again and again may be overhead. Too much can be made of the tapering issue, especially because its been controversial as to how much impact qe3 has even had on the u. S. Economy and elsewhere. And as weve seen, there were certainly market turmoil. But as youve seen, markets have returned to the status quo kwiek quickly. Gina, you made the point that, you know, one of the reasons for arguing for stopping qe is because we dont know what good its done and is maybe doing more harm than good. But what we do know, of course, is that tapering has had an impact on mortgage rates. So what is the real underlying sentiment of the Mortgage Market versus the inflated part and the damage done by yields going up . Were already seeing damage in the Mortgage Markets. But it takes about two to three months to flow through into the data. What youre going to see is youre going to see a market slowdown over the next couple of months in things like housing starts, mortgage applications, because rates are rising. And to imagine that if you look at the strongest part of the economy that everybody tends to talk about, it was the Housing Market. But its also the most Interest Rate sensitive. Imagine that you can take rates from 1. 7 to 2. 9 and not have a reaction in that market, i think that would be naive. And so to imagine, also, that this recovery wasnt being affected by qe is also not i dont think a valid to have because it was making people feel more wealthy, it was making the Housing Market continue to go again. I feel like its a very inefficient way of boosting spending. If you want to spend that kind of money, just inject the strength to the people that need it rather than from a wealth break or the rich get richer. Etcetera, etcetera, and also because it affected people in a very specific way because credit wasnt available to everybody. The credit mechanism was broken for a little while. So not everybody could get credit. Definitely the haves got better and the havenots stayed where they were. From that perspective within it was quite inefficient. With housing, youre saying we had the best yesterday . Absolutely. Housing starts and well, i think theyre at least going to go sideways. We are having a recovery in other places. We are seeing some firming up in the labor markets. I would argue that we still need to see a little more evidence that the labor markets are, in fact, really firming up. We saw the numbers, the unemployment headline numbers dropping. But really, that was just people rolling on from regular benefits to extended benefits. Thats not a good sign. No. So from that point, gina, well will you go. Good to see you. As always, thanks so much for joining us today. Well look up a line if you can bear the late night. Happy to do it. Thank you, gina sanchez, chair woman and chair of compucare global. Were going to be talking about a viking invasion as the nfl touches down in the uk. Were going to talk about u. S. Debt ceiling, the minnesota economy and, ross, football, of course. This is football american style. The mayor of minneapolis will be joining us right after this. See you in a few moments. This is ross westgate. The countdown to a shutdown. Harry reid is not going to allow republicans to attach provisions to the funding bill that delays or canceled obama care. And telecoms trade higher in europe following reports that nokia is discussing a possible tieup with the french group. And just a week ago, it was unthinkable that the sailing team backed by billionaire larry elison overcomes improbable odds to claim victory at sea, winning the americas cup. And we will have the latest from San Francisco and that silling very soon. But right now, the futures are all up. The dow is some 43 points above fair value. European equities have been softer. They still are. The ftse mid down 1. 8 . Members of Sylvia Berlusconis party said they will withdraw support from the senate if he is kicked out. Still no resolution on that. So thats where we stand right annoy ahead of the u. S. Open. What are investors to do . Here are the thoughts of some guests already on cnbc today. The corporate uk. Consumer cyclicals, retail, things that you actually take to be leading indicators. I might actually go and look at not housing, but other industries. Small, spanish corporates. We havent seen the process of tapering, which we would have been assuming as a constant or a conduit to a stronger dollar story in q4. So that is the other side of the coin as to why the euro is still comparatively strong. Sterling is north of 160. I think probably both of those, they do look acceptable to reversal by the end of the year. The economies Getting Better, in the u. S. , housing is better, the consumer is better. You really havent seen Business Investment and cap ex coming through. We would argue that that is the next step of the market move and if thats the case, then its exposed up to the Business Expansion broader investment and should do okay. Senate majority leader harry reid met with democrats wednesday night as the deadline to avoid a shutdown nears. The senate is on track to avoid a spending bill this weekend. Meanwhile, House Republicans are expected to huddle today to plan their next move on that bill and, of course, the debt ceiling. Now, we are joined by special guests in the studio today. The mayor of minneapolis. Mayor, thank you for being with us today. Great to be here. Were going to get to football in a mip. It is the reason youre here. If you want to talk about a real contact sport, washington, is that it . Yes. The bickering going on, is the normal . How is it hampering Decision Making in the United States . I think the reality is the president and parts of the Republican Party and Democratic Party want to get a deal and others dont. But the realize is were moving forward with the way things work and im confident that it will get settled. I come from the local government. And while this nonsense is going on with some people in washington, not the president , but some people in washington, wa were doing at a local level is solving things. For instance, in our city, weve paid off a couple hundred Million Dollars in debt and restored fiscal stability. Our state has delivered a balanced budge. We have more fortune 500 headquarters per capita than any city in the u. S. Our employment is the lowest of any american cities. What you see is while some issues on the National Level are complex and not necessarily working, theyre working very well at a local level, certainly in minneapolis st. Paul. And looking at this recent survey on business sentiment, you do see that minnesota is doing even better than other states in the midwest. I believe its nine straight months the Overall Index has been increasing. What advice would you give to others around your cities and states . Our workforce is more educated than most other workforces. But weve also done something very unique, which is in a post 9 11 america, looked at immigration as a net positive and done significant investment in a very global workforce. We have the largest somali population out of mogadishu, all sorts of Spanish Speaking countries. Weve used that to get people in the workforce. 18,000 kids have been in our summer job program. Half of them immigrant families. So look at this in africa, for instance. If you want a region to compete against the chinese in africa, come the our place because we have thousands of people who speak African Languages and who understand the culture and are trained in american business. Mobility of labor has been an advantage. And if you can get a young labor force, we all know young forces need labor forces. Mobility can be negative. You look at detroit, a huge outflow. Right. So, you happen, and there is a success, 4. 9 or something among the lowest in the state. But then you look at whats happened to detroit. Right. With winners, there are losers. What would you do if you were in their position . First off, one of the things that happened is the Auto Industry collapsed and now the Auto Industry is on a significant rebound. It will never be probably what it was with detroit. And it actually know a lot of people on the ground, including some of the leading foundations that are putting a lot in. Detroit is a far better picture than the basket case people see. But, obviously, minneapolis is minneapolis st. Paul is very, very different. And i think the first thing you have to do is attract capital. And you talked about mobility. You have to be a city that has were a major arts city that matters a lot. We have football. We are building a new football stadium that matters. Everything from the local music to local bikes, theres a Creative Capital index that you really have to have. You have to be a fun, cool, hip city to be in. And were lucky. We attract a tremendously mobile talented workforce that is very hard to recruit out of our city. They like it. You mentioned the football stadium. Stick around because coming up, well talk about the game coming up this weekend. More from the mayor in just a few moments. As we do that, reminder of where the futures stand right now through five days of losses. Theyre indicating an upward start for trading day. [ male announcer ] the parking lot helps by letting us know whos coming. The carts keep everyone on the right track. The power tools introduce themselves. All the bits and bulbs keep themselves stocked. And the doors even handle the checkout so we can work on that thing thats stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. So everyone goes home happy. Well, the anticipating is building as more details emerge about twitters upcoming ipo. Fwiter has reportedly added jpmorgan and Morgan Stanley as underwriters for its ipo. They join Goldman Sachs which has been working exclusively on the companys filing and will keep the lead role. Incidentally, this is the same trio of banks that worked on facebooks ipo. Reports say twitters ipo could come in november. The companys secret s. E. C. Filing came weeks before its public tweet this month. If twitter is aiming for a late November November offering, it would have to make its filing public early this month. Under the new jobs or jump start, our business startups act accompany a file that must make it public at least 21 days before beginning a road show to solicit investors. Las vegas wants to get in on the action. Oddsmakers are putting their money on twitter listings on the new york stock exchange. The line, 4 to 7. Meaning for 7 bucks, youll win 4. And twitter is teaming up with the nfl. It will sponsor tweets during games. This is definitely a story to watch. Ross, back to you. It is, seema. Perfectly segued. What a brilliant piece of production that is. Nfl, the end of twitter, as you know, its arrived here in the uk. Would you get on plane and come watch nfl . Plenty are doing that. Thanks, seema. Yeah, weve got part of the Leagues International series this week. The Minnesota Vikings take on the Pittsburgh Steelers at the sellout crowd in whimbly stadium on sunday. The first two games this season in london. Were happy to loan you one of our home games in minneapolis but we hope youll return to see our new stadium in a couple of years. How does this work . Are you happy to lose a home game and come to you get more revenue in london . How does it work . Do you lose revenue . Shortterm, a lot of investors are not happy. Longterm, its great because here i am sitting here talking to a global audience, and the viking hes, an amazing team, are now developing more of an international reputation. But we have people coming over toland to see a home game in minneapolis st. Paul. And youve been seeing some jerseys out on the streets. There have been jerseys in the streets of london. But you havent won a game yet. Im an optimist. Its just like you just said with the u. S. Stock market. A few bad days and its rebounding today and thats what were expecting this sunday. Okay. Theres been some cater. Maybe you cant help this, but abundant talk about the leagues players who eventually cross the pond and permanently plant its flag in the old continent. How likely do you think that is . Do you think eventually we could see a team over here in the uk . Absolutely, just as i think we will see rugby and soccer teams get more and more popular in the u. S. Were a global village. We love each others sports when Something Big is going on in rugby or soccer here. Were just a little global village. And i think thats why we spend so much time on imports and exports. We wish you the best for the game. What do you think the score is going to be . Im going and ill predict everything except the score for the game. The vikings will win. Good to have ow set. Mayor rybeck from members, st. Paul. The americas cup is staying on u. S. Soil. Its one of the most improbable comebacks in any sporting history. Team usa snatching victory from emirates new zealand yesterday. Just a week ago, emirates had a lead. If emirates won a single race, they would have taken home the title. Stu, i dont know whether youve been to the oracle party or not. How did they do it . Its the greatest comeback in sporting history. It rank he up there with the 2004 red sox comeback. In week one, new zealand dominated all the races. In week two, oracle found a way to catch up. They ended up trading races. In week three, oracle found a way to go faster than the new zealand boat. In the last few races, it wasnt even close. How much was down to ben amesly coming in as tactician and how much was down to them spending the right amount of money on developing the boat . You know, i thought youd ask about that, ben amesly. You know, theres a saying in sailing, a tacticians best friend is a fast boat. And the reason they were losing in the beginning was that their boat simply wasnt fast enough. I think what happened was that, you know, they had the fastest boat all along. They just didnt know how to sail it. It took them three weeks to do it. And i think they needed to get pushed hard enough to figure out how to sail the boat. And how much is this victory cost larry elison . You know, it cost teams at least 100 million to enter this campaign. New zealand estimates that oracle spend double or triple what they did. Oracle says, we spend maybe 15 than they did. Whatever it was, its more than 115 million. Im sure the party is still going on there. Thanks, stu, for joining us for the biggest comeback in any sporting history. Amazing stuff. Markets are strained as the u. S. Shutdown showdown continues. And well say once again congratulations to team oracle, the comeback kid if there ever was one, right, ross . Sailing to victory in the americas cup. Still to come, durntsy markets seemingly moved past the feds decision not to taper its bond buying program. More insight, after this. 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. [ agent smith ] ive Found Software that intrigues me. It appears its an agent of good. [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ] europe equities are softer down for the xetra dax by 0. 25 . The ftse 100 off 0. 1. Berlusconis party is suggesting they will remove support for the senate. Mean wile, the agenda today in the states thats my part, right . Yes. Lets give you a look at whats on that and whats going on in the u. S. Today. Jobless claims are out at 8 30 eastern. Also at 8 30, we get Second Quarter gdp. At 10 00 a. M. , august pending home sales are forecast to drop 1. 4 . A trio of fed officials speak today, fed governor jeremy stein, fed president kocherlakota and kansas city esther george. Now futures. And were looking at five days of losses. Decided we need a bounce at the beginning today. That is wa is indicated. Not by much. The dow is currently 40 points above fair value. The is he at the moment is around four points above fair value. We seem to be stuck in a bit of month mans land this morning. Youve got the data coming out. Its fine, the jobless claim. But really, weve moved on from this idea that we were going to quit the taper. We are now looking at the government and the impending shutdown. As the markets move today, that will be on everybodys mind. Ryan, what happened to that dollar rally . Are we going to see it ever come back again . Not as long as weve got Congress Reading green eggs and ham. Maybe they ought to put on their uniforms and battle it out in whimbly stadium this week. The bad thing is, of course, congress having a problem is supporters of treasury. Bear in mind, were talking about government debt, but there we go. Yeah. I think what really has happened here is that we had this dollar selloff. And at the end of the last week and we kind of got through that piece of it and people settled down and the losses the dollar took were paired back and come back to where we are about those same levels before. Now you turn around and look and see whats next on the agenda. Unfortunately, everybody wakes up and sees when the government is arguing. That affects everybody and that affects sentiment and that weighs heavy on the dollar. But, ryan, how is this all going to shake out regarding the debt ceiling . Guests we talked to on the show say theres reason to be worried, but its likely going to be an 11th hour deal. What do you think . Thats typical of the u. S. And congress here as of late. But, you know, the and i, too, agree that theyre going to end up doing that. But what does it mean, you know, down the road . You continue to have this type of indecision and just simply kick the can down the road a little further and let somebody else deal with the problem. As we go through this, do you think were going to grind higher towards the end of the year . Yeah, i think we get this through. The underlying business has been gaining momentum here in the u. S. And peoples sentiment, you see people purchasing homes again. You see a lot of homes being built. You see individuals making purchases that maybe they hadnt over the last few years. And i think the economy has had decent momentum from the consumers side and we just follow that through. So if the government can do their work and get out of our way, i think well be fine. All right. Ryan, thanks for joining us this morning. Have a good day yourself. Ryan gibbons, managing partner at gps capital markets. Ross, you know, i just heard the phrase kicking the can down the road. Thats coming back. But ive noticed since ive been here the last few days, you refused to say the word taper. Good on you. Wa word is that . Taper. I dont know what youre talking about. Thank you for watching. Coming up next, the countdown to the opening of the markets stateside with squawk box. Have a profitable day. Thanks for watching. If you have the audacity to believe in straight talk, not doubletalk. If you have the nerve to believe that in a puzzling financial world, clarity is king. [ man ] if you believe nothing beats a sitdown for knowing where you stand. [ male announcer ] join the nearly 7 million investors who think like you do face time and think time make a difference. Join us. [ male announcer ] for 90 years, its how edward jones has made sense of investing. Good morning. A showdown in washington is keeping wall street on edge. And a report about walmart is raising questions about the consumer, if there werent enough already. And doubts about a bid for blackberry, sending those shares sliding again. It is thursday, september 26th, 2013 and 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. Lets start things out with the markets this morning. The dow and the s p both closing lower for a fifth consecutive session yesterday. That means that the s p is now on its longest losing streak of the year. Yesterday treasury secretary jack lew warned that the government would not be able to avoid funds. A house on vote to raise the debt limit is possible tomorrow. The senate is on track tomorrow for legislation to avert a Government Agency shutdown. Senate majority leader harry reid held a meeting last night assuring lawmakers that he would fought allow republicans to approve revisions toel