Low cost 5c iphone is selling. Whats billed as the tabloid trial, Rebekah Brooks and andy coulson are on trial in london. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. All right. A very good morning to you. Thanks for joining us. We have a shortened Worldwide Exchange today. Just an hour of the good stuff because the clocks have changed in europe. London is ahead of gmt but the u. S. Hasnt changed. Well go now and well squeeze inasmuch as we can. Ftse 100 up 8 points. Five year highs. Xetra dax up. The cac quarante down 10 . Much stronger in asia hitting a fresh record high. The nikkei trying to recoup some losses from friday when it was down 2. 8 . Roo he bounding today, up 2 . Some of the pressure off the end. We have the bank of japans Deputy Governor coming out saying theres more stimulus if we need it. Shanghai fairly flat. Hang seng up. 4 . The s p asx up 1 . Take a look at u. S. Futures following that record close again for the s p. Its currently straytrading som three points above value. The fed this week as well can be a big focus for a lot of players. The nasdaq up about 6 points from fair value. The dow 30 points above value. Here we go. Yield not quite at the low numbers we saw last week, just above 2. 5 . Yielding 2. 52 gilt yield 2. 62 . The dollar index down on those ninemonth lows on friday. Some reprieve for the dollar. Sterling gold. Dollar yen 97. 59. We got down to a fresh two week low, 96. 94. Euro toll lar not quite on that twoyear high that we hit on friday as well at 1. 3833. The big focus is going to be the federal reserves twoday meeting. This is after disappointing payrolls and consumer data. Its expected that the fed officials will hold off on tapering. They released a statement on future policy action. Joining me at the desk is kit deuce. Nice to see you. How much pressure can we put on the dollar, do you think . Part of the issue is weve made we have quite a quick move and weve reached the kind of levels you thought we might have got to, you know, probably five months before we get any tapering. So weve got three or four months where i dont think there will be any news thats particularly supported by the dollar. In terms of absolute levels, a lot of people might have hit their targets. Were in overshoot territory. The difficult thing is why you turn around and do anything different. On the flip side, is it hard to justify the euro heading towards 140 . Were starting to see question marks whether the upturn has peeked, the iphones, the pmis suggest that the recovery is weakening, inflation at 1. 1 . Yes. I dont think the euros strength is every about european economy. Its more about the european similarity with japan. Its five times as big as chinas or japans. Thats the driver. Interest rates and market rates, yes, its traded 120, 140 for a lot of the last few years. Were at the top end of that rate. Is there a prospect that weve got ive seen this coming up, this q eternity. Are we in the land of q eternity . Its a fear for a lot of people in the sense that the first attempt at unwinding any qe at all backed off. This is kind of, i dont know, the justification for never giving up, whether its cigarettes, coffee, or alcohol or whatever it is people dont give up. Im addicted to this and im going to have to keep on going. I think that would be a huge mistake. I think they should have tapered in september. Maybe they knew what was going to happen to the politics. They should taper as soon as its safe, but the only reason for q eternity is if the u. S. Economy and the World Economy is doomed to a horrible future. I refuse to give into that thought. Treasury yields, theres a small minority, but some think treasury yields will fall down be to 2 and fall and they move up to 3 again. I think this side of christmas if you saw 2 or 3, it would be 2 not 3. Neither seems at all likely right now. Weve taken away all the things that would send treasury yields higher. Weve given the Global Investor community at the end of this year, if you want to earn money, if you think theres nothing to be gained from cash, you either need duration, go out and get yields, or credit risk or buy credit equities, find another thing, find some currency, buy some wine, do something. Dont put your money in cash. There is a Fourth Quarter rush to do that right now. To carry bank . Carry currencies had a good run from mid september until now. Its all happened quickly. Carry for the next three or four months is back. It is worth pointing out today, we had a storm in the u. K. It is 84 years today since the original black monday, the start of the 1929 depression that followed all of that. Are you in any sense worried about assets, not compared to them, but assets are over inflated because of central bank action. Some of them are. The cost of money is not rational. The cost of money is give or take zero. That means all sorts of misallocations of money can be seen. I was in the middle east last week. Property prices are heading straight back up to where they were before dubai went wrong in 2010. And its a direct response of them importing through fixed Exchange Rates u. S. Rates. Around the globe we are putting in place the conditions to create asset bubbles, even if you dont think weve done so yet. Thats this addiction to concentrated easing and free money that we dont seem to be willing to get rid of. Im optimistic that we will kick the habit before its too late or hopeful or something. Yes. The timing of that is very uncertain. You say the first attempt. We failed fairly miserably. We couldnt deal with the implications because the markets are so volatile. They had a negative impact, the u. S. Markets. The fed says, okay, lets get you used to the fact rates are going up and then we dont like the consequences of that. On a positive side, i wish they would have gone in september, money was misplaced. We were trading one year rates in five years time. They were pricing money five years out at over 2 in the beginning of may, up to 4 in september, were at 3. 5 today. Weve only taken back a fraction of the move that we saw. In that sense were in a better space than we were for june. Were not going to taper until march at the earliest. Kip, good to see you. Youve evaded the storm. No, i came back from the west country early yesterday. A storm in the west country. Thank you. Every week cnbc is asking to you talk the trend by taking part in our online poll. This week were asking with the green back slipping back, how are you trading the dollar index long, short. Do you have a position . Head to trader poll. You can also have your say on twitter using trader poll. Shares are trading higher despite the possibility of it having a drop in its Third Quarter profit. Tnts revenue just missed expectations. Earlier the cfo for the firm said they were looking for further steps to restructure the business and is pretty cautious. We do see some signs of recovery but i would say its fragile. Its a mix across the board with some countries doing a lot better. As i mentioned, u. K. , the Northern European countries doing better. Some countries are doing worse. Its mixed and fragile. Stefan is still in madrid. He has more details. Good morning, stefan. No storms down there, i hope. No storms. Blue skies, sunny weather in madrid. A good set of results for bankis. 362 Million Euros is to compare with a huge loss of 7 billion euros loss last year. The bank set aside a huge amount of provisions to cover potential losses on its property. In terms of business condition, the weak spanish economy still having a negative impact on the recovery of the Banking Sector here. The net income which is basically the profit made from loans dropped to 29 of the first nine months of the year. That was in line with expectations. The radio was at 13. 6 at the end of september. Its higher than the average of the spanish Banking Sector. The trend since june is quite modest. Not as much as were seeing from bda. Were trying to see about the solvency ratio of the bank. Well see about bankia tonight on the closing bell. The c of bankia, leo poll doe alvear a little bit later. A shaky start for chinese banks. It increased by a lower than expected 9. 4 . Its weakest growth in five years. Gains in Net Interest Income away by high provisions for bad loans. Margins have been under pressure for rising bad debt as well as beijings press to normalize interest rates. The worlds biggest airport has opened in dubai. Its got a site as big as Hong Kong Eye land. Is it a cates of build it and they will come. Thats at 11 20 cet. Can pending home sales in the u. S. Rebound from the fall in july and august or is the housing sector due for a turn around . Well preview todays release in half an hour. Fourth Quarter Sales with two new Iphone Models help them breeze past the market in profits. All of that plus an atlantic storm barreled into brittain. Gusts 1r50e67g 00 miles an our. Jim acedo brings us the very latest. Announcer youre watching world wide exchange. High winds across brittain have brought a crane crashing down in london. No jirgs hainjuries have been reported. Extreme weather has wreaked havoc for many travelers. Rail service has been disrupted across the country. Heathrow has confirmed 130 flights have been canceled. Recent reports estimate 140,000 people in the southeast of the u. K. Are without power. Lines have been broken by winds and hundreds of falling trees. Lets get more on how the storm has progressed. Jim aceda is with us in the sea port of portsmouth. Jim, it looks sunny at the moment where you are, but whats happened overnight . Hi there, ross, it is sunny. You should come and join us on the coast. Im in portsmouth. The good sign is that the ferries are out and running again after that storm that was just nicknamed stormageddon that hit around midnight and now its moving. Now its moving northeast across brittain. The torrential rains as youve noticed have died down and the skies are clearing. The winds are still strong. You mentioned gusts. They have clocked up to 99 miles an hour on the aisle ofman. So far one person is presumed dead, a teenage boy swept out to sea at the beach where he was unfortunately swimming at the time. The figures were 200,000 people who are reportedly without power. In broader terms, brittain does seem to have dodged a bullet. There have been major disruptions, you can imagine monday morning commuting through great brittain. Trains have stopped service until later in the day. Now were understanding 130 flights have been canceled at heathrow and fallen trees have blocked an unprecedented number were told of major highways. So far many brittains are heeding the warnings. Theyve stayed at homeworking from their laptops today. The bottom line, ross, the government, unlike the previous storms, especially in 1987, warned people days in advance. They had a contingency. Thanks very much, indeed. Jim doing well to hold on. Still to come, problems at heathrow to a brand new airway. Dubai is setting up to be a global super hub. Well have more on the worlds biggest airport in terms of concrete and runways after the break. Farmers presents fifteen seconds of smart. So you want to drive more safely . Stop eating. Take deep breaths. Avoid bad weather. [ whispers ] get eight hours. [ shouts over music ] turn it down and, of course, talk to farmers. Hi. Hi. We are farmers bum pa dum, bum bubum bum stick with innovation. Stick with power. Stick with technology. Get the flexcare platinum. New from philips sonicare. British Security Firm says its dismissed a 1. 55 billion pound offer. They described the bid as highly opportunistic. Late last week g 4 ss ceo resigned. That resignation was amidst allegations of charging government contracts. The other Company Involved in that was serco. That ceo also resigned on friday. The stock is up slightly rebounding a little bit from the fall we saw earlier. Meanwhile, s p says its not one of the potential bidders for struggling smartphone maker blackberry. The chief Financial Officer told the magazine that blackberry doesnt fit into our strategy. Its part of saps core applications. Heres a big question for monday morning. Just how strongly do you feel about your preferred brand of ketchup . For all the heinz fans out there, youll be surprised to find out mcdonalds is ending the partnership. The former head of burger king is now the head of heinz. Is that a reason to dump heinz t tomato ketchup. Is ketchup a deal breaker for you on the big mac. Email us or tweet us or direct to me twast rosswestgate. Is there any other ketchup other than heinz . The others dont taste the same. Not the right mixture of salt, sugar, whatever else they put in there. The worlds biggest airport has opened in dubai with ambitions to become a global super hub. Yousuf is joining us. Were not talking about number of planes, were talking presumably about the amount of concrete that theyve pourtd into this place. Is this a case of build it and they will come . There is a lot of building, yeah, going on. Its quite a drive as i was heading to the airport. About 20 miles of vast stretches of desert gives you an idea of how big this project will eventually become. Now it can handle 7 million passengers a year but compare that to 2030 when the airport will boast five runways and can handle 160 million passengers which would make it the largest airport in terms of capacity. Now the current airport will not be replaced at this point. It will be somewhere down the line. Emirates at this point is not moving either. Theyre staying with their current terminal. I spoke with the ceo of dubai airport, paul griffith, and asked him how quickly he expects to fill up the new airport . We think that the demand will grow and grow. Weve already started on day one with three airlines and 14 services a week from which is air, Daily Service to bahrain and our problem will be how can we keep the expansion to keep going to cope with demand. A nice problem to have. Give us an idea of the numbers. What kind of momentum are you expecting for 2014 . I think over the next few weeks well have more announcements for more carriers and some kbiquite surprising ne about who will be here. What we have to concentrate on is getting the expansion of the facility. Currently were 5 to 7 million passengers and were starting to see the need to get in here and really start to expand the existing terminal probably to about 12 million and then significantly beyond as the demand continues to grow. Youre not the only city expanding. You have abu dhabi and istanbul announcing equally big projects. Are you building too fast too much . I think the thing is people in europe and north america are looking at this thinking, how on earth is this possible . The answer is because we dont actually derive much of our market from the pointtopoint market here. The population here is relatively low compared to the size of the airport. Our secret here, of course, is weve grown a very high quality destination for tourism and commerce so we have huge numbers of visitors each year, but more importantly were being seen as the International Hub of choice joining cities on the planet. Airports are compensating for lack of airport growth and development particularly in places like europe. Where the growth has clearly got to come from somewhere because more and more people will continue to want to travel so that airport capacity has to be provided. Im convinced that ourselves and all of the other airports in the region will be providing enough capacity for that growth and more. Just to build up on that last point, authorities forecast that the industry will contribute some 32 to gdp growth in dubai by 2020. The decisionen hosting the worlds fair and expo 2020 in november, that could provide a substantial demand boost in several years to come. In any case, the authorities here at dubai airport are very bullish to have this place the world top spot. They expect that to happen towards the end of 2014. The hub, all of that asian traffic that comes to europe on the way to the u. S. , north america, well see what happens. Thats a lot of concrete. Yousuf, great to see you. Still to come on the show, could potentially bad apple ipad and macs spoil the bunch. The Fourth Quarter earnings coming up on Worldwide Exchange. Another busy earnings week. Assa abloy banks. Spanish banks are resolved by cleaned up balance sheets. Apple is going to report after the bell. Investors very keen to find out if the tech retail giants 5c iphone is actually selling. And whats billed as the tabloid trial of the century, former Rupert Mourdock accolade Rebekah Brooks on trial. Announcer youre watching Worldwide Exchange bringing you Business News from around the globe. And if youve just joined us state side, welcome to the start of your Global Trading day. Just an hour today. Just so you know, weve changed our clocks. In the u. K. Weve gone back. The time for a week and the u. S. Is only four hours. For the rest of the continent its five hours. As opposed to five and six hours. On friday as far as futures are concerned, indicated up a little bit. Cautious start. Up three points above fair value. The nasdaq is some nine points above fair value. The dow after closing up 61 points is, what, another 33 points above fair value. Fairly flat for European Equity markets. Ftse 100 had a storm blowing through brittain last night. The biggest since 1987 which pressures the black monday crash. Things are more well prepared than they were last time. Xetra dax up. Cac quarante up. It is 84 years since the original black monday back in 1929. Still, stocks up. What are investors to do in a big week that includes the fed meeting. Guests weve already had on this week. The q 4, chinese economy still with activity. I think thats helping. And also positioning. Expectation in australia so its short. Its weakening movement in og. Precious metals are not reacting the way they used to as a vision hedge or even as a volatility edge. I would regard them as more risky and less connected with the global economy, but the rest of it, industrial metals, food stuff, i think they will do reasonably well over the next few years. The other thing that looks quite cheap to us at the moment is the dollar. Related to the fed policy and related to peoples positioning, you know, where weve gone from quite bullish on the dollar and strategies that are quite bullish, the euro and sterling. I think that might be a good place also to hide in the short term where we see the dollar doing a bit better. The yen we think will weaken in due course. Some of the thoughts weve already had. Were halfway through earnings season in the u. S. And big focus on apple after the close today. Seema mody has more for us from cnbc hq this morning. Seema, what are they going to say . Hello, ross. Apple is slated to report its earnings after the closing bell in the u. S. Many analysts are expecting them to beat street guesses. Last month the Company Updated its outlook to say it expects revenue and Gross Margins to be at the high end of its guidance range. While that all sounds like good news, they are seeing the sales in iphones and macs down. The ipad air announced last week are important for Forward Guidance in holiday sales but will not play a big role in the earnings announced today. Shares of apple while trading below its 2012 high of 705 has gained 20 in the past three months. Its trading at 525 a share. Brian marshal who has a strong buy rating on the stock says catalysts include global rollout of iphone 5cs, 5ss. Launch of a highly anticipated five inch iphone and new products like an iwatch or itv. All of these factors could help restore faith in apples innovation and companys brand image. Ross, back to you. Its a big day. The full year, it will be the first time well have a full year profit, seema, since they launched the ipod in 2001. It could be. Yeah. Heres the thing. I like this. This is my favorite stat, seema, of the day. 65 million with the profits in 2002. Over 40 billion last year. Extraordinary story. Seema, thanks for that. It is extraordinary. Have a good day state side. Plenty more to come. Meanwhile, the trial of former news chief Rebekah Brooks begins. Brooks who has arrived at the court is joined by seven other defendants facing charges linked to phone hacking at the now defunct news of the world newspaper. Kathryn boyle joins us from outside the old bailey. Kathryn, whats going to happen . Well, ross, weve seen Rebekah Brooks and her husband charlie arrived in a black cab half an hour here. Followed shortly by andy coulson, exworld of the News Reporter and exhead for david cameron. Cameron used to employ coulson. Hes friends with Charlie Brooks and Rebekah Brooks. He goes horse riding with them. It will cause potential interruptions at news corps. Rebekah brooks is out on three different charges, charges related to phone hacking, also related to the coverup of phone hacking, and charges related to private and Public Officials because thats what could really get news corps in trouble in the u. S. On the foreign corrupt charges act. Its going to be months and months ahead of us, specifically today actually it might be anticlimatic because the jurors are arriving, being sworn in. The prosecution may open their case but may not until tomorrow morning. I have no doubt ill be back there tomorrow and bringing you more as the trial unfolds. Thats the latest outside of the old bailey which houses the number one criminal court. Is the Housing Market capturing a chill following falling home sales. Well take the temperature of the home market and pending home sales. Thats coming up. [ male announcer ] when we built the cadillac ats from the ground up to be the worlds best sport sedan. People noticed. The cadillac ats 2013 north american car of the year. Lease this cadillac ats for around 299 per month with premium Care Maintenance included. Thats the latest outside of thats the latest outside of i love having a free checked bag with my united mileageplus explorer card. Ive saved 75 in checked bag fees. [ delavane ] priority boarding is really important to us. You can just get on the plane and relax. [ julian ] having a card that doesnt charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u. S. When i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. Its lots of things. All waking up. Connecting to the global phenomenon we call the internet of everything. Its going to be amazing. And exciting. And maybe, most remarkably, not that far away. Were going to wake the world up. And watch, with eyes wide, as it gets to work. Cisco. Tomorrow starts here. Announcer announcer youre watching Worldwide Exchange. The National Security agency has denied that president barack obama was told that he was spying on the phone of Angela Merkel. They claim the president was informed by the nsa chief in 2010 that it had bugged the phone of the chancellor and he didnt stop the operation because he didnt trust her. Trust her with what . Annette has the information. Ive always assumed, annette, that were all spying on each other. We have this big listening post called gchq and what is it there for if not to listen to people. The mistake the u. S. Made was they wrote it on paper. Once you have a record of it, you have to complain. Thats true. The german constitution states that the u. S. Secret Service Agencies are allowed to spy on german soil and they, as well, might be allowed to spy on Angela Merkel. So everybody who is now screaming thats against the law might not really be right. But let me reiterate what we are as well having in terms of reports coming out from the wall street journal. They are saying that president obama was informed about the spying on Angela Merkel from this summer and then he immediately stopped the spying on Angela Merkel among others. 35 International Leading politicians. So that might actually be the case. That might actually be as well the opportunity of president obama saving his face in front of Angela Merkel and as well perhaps being a little bit of a cure to the german United States relation. One thing is clear, they have been spying on Angela Merkels phone and as well the relations between germany and washington or the United States are seriously damaged, at least for now. With that, back to you. Yes. Got to run. For now. Thanks, annette at that. Thats the latest from the german point of view. Meanwhile, more bad news. Critical obama care websites crashed. The crashed data center determines eligibility for government subsidies. The company is working to resolve the issue as quickly as possible. Michigan Governor Rick Snyder is expected to testify in detroits bankruptcy eligibility trial. Governor snyder orchestrated the state takeover. He was subpoenaed for his role in the filing. And if youve just joined us, a recap of the headlines today. Stocks in europe open in the green. Mildly trading high. Trying to take their cue from another record close on wall street. Apple hopes to follow suit with the Fourth Quarter fiscal figures today. The british phone hacking scandal resumes today with Rebekah Brooks set to appear. Now to crest Construction Activity set to resume in september. The home sales are expected to rise 2. 1 according to reuters poll. The National Association of realtors says it should be close to. 3 for the month. Cherry oliver is ceo of the carnegie group. Nice to see you again. Good morning. We saw in july and august thanks for having me. Always nice to have you. We saw in july and august the rates going up and all of that taper talk. Now that theyre going down is that going to feed through to pending home sales or not . Yeah. I think even more than that. Folks are sort of getting used to the direction Mortgage Rates are going in and are afraid of where they may go in the future, but one thing thats going to really impact the pending home Sales Numbers this month and next month are the government shutdowns because anyone who was thinking about buying a home during that period, wii extends for two to three weeks, absolutely didnt move. A lot of folks are still hesitant to get off the fence at this point because weve only really extended the date into december and then another deadline in january and another deadline in february. A lot of folks when it comes to housing are skittish simply because they werent able to get loans approved. Who wants to put themselves through that headache if they dont have to move. Look. Pending contracts it takes two months to close. So there will be a delay . Yes. In the u. S. About two months but, you know, we had problems lower staffing at some of the Government Agencies so there were as few as 30 people, for example, at one point approving the fha mortgage. In addition to the actual Government Agencies that theyre in housing, we rely on the Social Security administration to process it. It added three to four weeks to the process. It was unknown. Theres no con contingency. It says if you dont have your loan approved, its okay. We dont have a clause for government shutdown. Folks are sitting by. Fair enough. In the northeast, theres an increase in home sales. I now accept the fact that this is another bit of data that we have to get through. What do you think is happening on a regional basis . Well, another big influencer that were seeing on a regional basis is inventory availability. Inventory has been tight in the u. S. For quite a while on existing homes but also on new construction because of course new construction is down to less than half of what it historically is. I think thats probably one of the biggest influencers at this point. Moving forward we have rising interest rates, as you mentioned. Weve also got a series of really significant new rules that relate to housing that go into effect on january 10th, 2014, under the dodfrank act. That will have a huge impact. Three in ten people who qualify for a loan today, todays standards are much tighter than before, will not qualify for a loan under the new rules. We need to wait and see what will happen there. Lots of things to clear up. Thanks so much for joining us this morning. Now an atlantic storm barreled into brittain overnight. Gusts reaching over 100 miles per hour. Pretty unusual for this island. Well bring you the latest on the damage and disruption and look ahead to the u. S. Trading day as well. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. At bny mellon, our business is investments. Managing them, moving them, making them work. We oversee 20 of the worlds financial assets. And that gives us scale and insight no one else has. Investment management combined with investment servicing. Bringing the power of investments to peoples lives. Invested in the world. Bny mellon. High winds across the u. K. Have put a crane crashing down on top of cabinet offices in downing street in london. No injuries are reported. Whitehall is still closed. This comes as extreme weather has wreaked havoc for many travelers in brittain. Rail service disrupted. Heathrow confirmed 130 flights have been canceled. Recent reports now estimate that now that 200,000 people are without power as lines have been broken by winds and hundreds of falling trees. Here at cnbc we have personally been affected. The executive producer suffering a garage falling on his car. Oh, dear, oh, dear. I have a chain saw. Ill be down there fairly shortly. Im sure theres no chance of me scratching your car. What could possibly go wrong . Meanwhile, a year after Hurricane Sandy left it underwater and destroyed, ellis island is reopening today with repairs to the historical landmark continuing through the spring of next year. Enough progress has been made for the museum to reopen. More than 1 million artifacts and photographs will remain in storage whilst the storm came through. European equities, were up. 1 for the xetra dax and ftse. Its up over 2 and ahead of the following the s p record close as well on friday. Meanwhile, on the agenda at the beginning of the week today in the states well get a check of the real estate market. As we said, we have the september pending home sales number. Thats released at 10 00 eastern. Well have a read on the fed. That will give a read on factory activity, Business Conditions and employment. Well also get industrial figures. Were right in the midst of earnings season. Well have a look at merck, apple, well see if they have a life after the close today. U. S. Futures indicating a tick higher at the moment. The dow is, what, 38 points above fair value. The nasdaq is 10 points above fair value. The s p 500 is nearly 4 points above fair value. We have ticked higher. Joining us with his thoughts, director of Trading Investments of swan wealth advisors. Good morning to you. Another record close on the s p last week. What do you think . Do you think with all of the data in the fed we can keep grinding higher . I absolutely think we could. I think Economic Data is really weird right now. Normally we think really good data is good for the markets and bad data is bad for the market and wishywashy stuff is what throws us off. Were in the opposite scenario now where mediocre kind of wishy washy poor data is going to drive the market higher as we get this idea of more and more qe coming to the markets. Really bad data is going to be really bad. Really good data, stuff that makes us think, hm, i wonder if the fed will have to push qe around, thats going to drive the market. All of these gains were seeing in the s p 500 are due to the yield chase. Thats chaes driving markets higher and will likely push us higher. Has everybody just decided, look, tapers off until march. Im wondering if the fed comes out and actually says this week, hang on, guys, it could still go in december and sort of mean it, whether well have to recalibrate. Yeah. I think you absolutely could. If the fed comes out and says that they need to theyre still looking at a december or a january time frame for qe, that will cause the market to sell off. A march time frame is priced in. Looking at the vix around 13. The s p is not moving that slowly. At an all time high. Portfolio insurers using s p options is looking good. Full disclosure, we have those on. That makes sense to me. Yeah, were going to malaise higher. We take the stairs up, the elevator down absolutely looks like thats whats setting up here. Look Downside Protection looks to be a good idea. Meanwhile, the dollar index is down. A little bit of a reprieve during the asian session. Do you think the dollar will get pushed weaker as well . In the near term it looks like it. At a certain point you have to think that a foreign country will start stepping in. There is no way that the European Union is going to allow the dollar to trade this cheap against the euro for this long. Same thing with japan, some of the other nations. So near term, yeah, i think thats the trade. Long term, you know, three, four, fivemonth position i would probably be fading these levels. Martin, have a good day. Thanks for joining us. Trader investments at swan robert advisors. Thats it for shortened Worldwide Exchange. Coming up, squawk box and the opening markets state side. Have a wonderful day. Squawk box begins right now. Lets get ready to rumble. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with jeff kiernen and andrew ross sorkin. The dow futures look like theyre up by 36 points above fair value. The s p futures are up by 3. 8 points. Among the catalysts that we have for the rally, earnings reports. Half of the s p 500 earnings are posting higher. 68 of the firms beat expectations. 54 beat revenue estimates. If all of the companies remaining report in line with estimates, earnings will be up 3. 4 from last years Third Quarter. On todays earnings quarter, we have dow and merck. As for the economy, well be getting Industrial Production numbers. Pending home sales. Dallas fed manufacturing survey