Departure. Soft bank looks to create some hollywood movie magic. The Japanese Firm is in talks to buy Dreamworks Animation for more than 3 billion. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. This is a live shot from the streets of hong kong. The hang seng market closed 2 lower after a week of protests on the streets of hong kong. Demonstrators are demanding full democracy from beijing. The Hong Kong Government says it has withdrawn riot police as protests calm down. Eunice is in beijing for us, what has been the reaction there to the protests so far . Reporter well, so far in beijing, mainly what people are seeing is a very controlled presentation by the government of what is happening on the ground in hong kong. Theres been heavy sensorship on the internet where we are seeing instagram blocked, also some of the social media apps, particularly like the messaging and wechat. We are seeing a lot of terms deleted that have any reference at all to hong kong. There is still discussion going on, but as i said it is very controlled where in the state press they are allowing this discussion on some of the social media, but its mainly been focusing on how these protests are illegal. Also, there have been some harsh editorials, one in particular was talking about how these protesters or how the protests resumed and how the demonstrations are just destroying the reputation of hong kong as a Global Financial center. Now, beijing really does have a challenge here whereby we have been seeing from this leadership, actually, a quigt tight approach to political reforms. Theres no indication or sign that they want to embrace any type of change when it comes to Political Rights. In fact, on the mainland itself, theres been one could argue theres been a bit of a reversal where they are getting tighter on social media and are getting harsher with dissidence as well as journalists. So now the government here in beijing is facing a situation in hong kong where they are seeing a mass protest about a topic they are very sensitive about. Then a is democracy as well as Political Rights. So theres a lot of question now as to what beijings options really are. For beijing, they really have, from their standpoint, they have three options. And the first option would be to crack down, which would be something that would receive international condemnation. Also undermine the rule of law in hong kong in a promise to the u. K. Made a long time ago. Also, the second option would be to compromise in some way. But some believe that wouldnt happen because it could potentially embolden the other people and put other people on the mainland. And thats a situation that the government here wouldnt want. The third option, which appears to be happening right now, is that they will do nothing. Instead, standing very standing by what they want right now, which is that they are just hoping that the situation will resolve itself, but of course the risk with that is they dont address them, the longerterm issues and frustrations with the people in hong kong, who are upset that they dont have they are concerned about not having a political future, and one they themselves are hoping to embrace. Eunice, thank you so much for that from beijing. Head to cnbc. Com for a live blog on the latest developments in hong kong. Well be watching that story very closely. Of course, the question is, what is the timeline here and what can we expect Going Forward in terms of the response from beijing. Well bring in the chief Investment Officer now from llc management. James, not having democratic elections, when you have protests from the people, does it automatically look like the government is dealing with it in a heavyhanded way . Thats what i fear we have to get used to, but its a great opportunity for the global economy. One of the real challenges is that china contacts what this means for markets. I do think that china has preparedness as well as the wherewithall to show it does not dip below 5 points. This is also showing us that we will do whatever is necessary, which is really important. 5 growth compared to where we are now is a long way. If it dipped to 5 , the markets would be spooked a huge amount. You have to wonder what the Growth Numbers really are. And i suggest what the government is showing us is what is going on. We have lead indicators from the companies because they are telling us how it is on the ground. The government is telling us to read the numbers. I challenge any viewer who can tell me how we rationalize the export import numbers from china and its trade partners. Ill be comfortably happy. How big of a risk is this as we watch the shanghai market play out in hong kong . I think it is a relatively modest risk. I think its a far bigger challenge for china. Getting back on track with the development program, we know over the weekend china said it was going to go much slower in terms of liberalizing the setting of the Interest Rate. So thats a worry. The big challenge for china is to sort out the housing market. That doesnt appear to be happening any time soon. Im reasonably optimistic as china as enormous flexibility. When you have the chapability t write checks to keep on the road, you have to do there. Not just Government Debt but across the whole economy, it is very high, above 200 and still rising. So how can they continue to write the checks to protect the economy . Because they are continuing to run significant met tricks. They have the capacity to recycle the cash if they so wish. It is very interesting what Central Banks have power. The Central Bank Reserves the United States, roughly nigeria, no foreign currency and they want to keep the dollar where it is. China has enormous reserves. Well continue our conversation in just a bit. We also want to get you news on spain. The spanish cabinet is today expected to hold an emergency session in the referendum plans. This after the catalonian government announced it is holding a nonbinding vote in the regions parliament. This is a headwind for the markets possibly as well. Still a long way to go in the spanish issue. If it comes to a head, it will be bigger than scotland because this represents more than 1 5 of the economy. Now to the big news from friday and the resignation of bill gross from pimco. Big news. Thats big news. Hes the bond king and the founder of pimco in 1971. Whenever you have the face or brand of a company exiting or looking into an abrupt departure, many people were calling the move in the treasury market on friday as the bill gross selloff. Because we did see yields spike on that. It wouldnt help his ego if one person can cause a spike in the market. How important is this . It is very important because it is the brand. And it is highly unusual because pimco has a legion and high caliber among the managers. To have his brand positioning, which i suggest is completely unnecessary. Interesting enough that it actually moved the bond market a little bit. I do worry significantly about the level of bond markets generally. I dont anticipate where we have fiveyear yields, all the major governments run wild in deep negative territory. Investors couldnt have any company at all with the bond yields going anywhere but up. We want to get our viewers opinions as well. The beast versus king, are you worried about gross departure or are they too small to make a difference . Join in on the conversation here on Worldwide Exchange. Email us at worldwide cnbc. Com or twitter cnbcwex. It will be quite the story Going Forward. And so european markets struggling for direction today. The stoxx 600 is down stemming from the uncertainty ahead of data releases. We have Economic Sentiment data coming in 50 minutes time. But also the ecb meeting on thursday. The important employment report is coming out of the United States on friday. So what does that mean . It means we have red across the board in europe today. The ftse 100 down. 34 . Germany down a similar amount. Likewise france and italy down just half a percent. Despite the top stocks, we are getting a boost in shares after pimco named the cio replacing bill gross. This after being cut to neutral and Deutsche Bank cut the price target on the stock up 1. 5 today. Fellow asset manager but more of equities than bonds, aberdeen up 1. 6 after reporting an increase to assets. 3. 1 billion pounds compared to 322 billion at the end of june. The emerging market focus group also said that the pace of outflows slowed during a period. This is in the u. K. , we are sliding to the bottom of the ftse 100 after issuing a proper warning for the third time in less than three months citing a writedown 23 . Air france is up flying high after agreeing to end the 14day strike in one of the longest demonstrations in the companys history that cost the carrier 20 Million Euros a day. Meanwhile, Commerce Bank is slipping near the bottom of the stoxx 600 and is being investigated by the Manhattan Office for alleged Money Laundering laws. Bill gross moved the market a little bit in the u. S. On friday, but nothing significant. We are around the 2. 5 to 3 on the tenyear yield. Its come back from the 2. 6 year from a week ago but still not near the 2. 4 it was at a few weeks earlier. Bonds in germany just below 1 . The gilt below 2. 5. And greece above 6 . Lets look at the u. S. Dollar near a fouryear high against a basket of currencies. It is near a twoyear high against the euro at 1. 2685. We have not seen them move much, but the u. S. Dollar is still very strong at 109. 59. And we have an actionpacked show for you. Indias Prime Minister is given a superstar welcome at Madison Square garden. But can modi deliver . And we are at the World Economic forum as turkey looks set to position itself in the fight against isis. And as team usa leaves scotland emptyhanded again, we look back at the action from the ryder cup. Your customers, our financing. Your aspirations, our analytics. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. Mr. Daniels. Mr. Daniels. Look at this. Whats this . Clicks are off the charts. Yeah. Yoshi, were back. Yes, sir more shipping more shipping [ beeping ] youre watching Worldwide Exchange. U. K. Prime minister David Cameron was probably looking forward to his partys annual gettogether, but over the weekend the conservatives were dealt two blows. First, a stepdown after sexually explicit pictures were september. And the second is hear from David Cameron. Look, these things are frustrating and frankly they are counter productive and rather senseless. Why do you think you are losing these kind of people . You would have to ask them what they say because you are probably not conservative in the end. I disagree with that. In the end it is counter productive. So both people unlike me, they want to leave the European Union no matter what. I dont agree with that, i think we should have a real go after reform to get a better deal for britain, but then there is this promise and its a complete clear and promise of the referendum by the end of 2017. Even if you dont agree with my regrogs strategy, ill the only Prime Minister to give you the chance to have a vote to stay in or get out of the European Union. Thats why i say its so lets turn to that strategy then. Halle is live in birmingham with more. Reporter good morning, we are here in birmingham where they are rolling off a week showing in manchester yet the weekend is full of stories about scandals. Whether it is sex scandals with brooks numark or the Society Minister caught sending explicit pictures to an undercover journalist which he thought was a political researcher. You also have a much bigger issue and thats the political scandal. This is marked reckless. The second mp touring party defective to the euro skeptic u. K. Party. And last night it was about a further deflection in who that might be. Remember, we just had a power ful report suggesting that labor may have an outright win at the next general election in may. But thats very serious. And the fractions in the torre party are being blamed for this. So this morning theres been a lot of talk about, well, lets forget about party unity and the panic that we have seen in the headlines over the weekend. And instead lets focus on the Economic Policy with delivered economic growth, with delivered austerity. George osborne is speaking in a few hours and hes going to talk about giving tax breaks to pensioners. Hes going to talk about welfare reforms and hes going to be talking about growth. I caught up with him earlier and i asked him whether he was the man that got it right in austerity and whether the country could do another five years of pain. Have a listen in. People can see weve got an economic plan in this country that is working. Britain has one of the faster growing western economies and we are creating jobs here in this country. So were going to go work through that in this conservative conference to set up the next stages of the economic plan and deliver this for our country. It is really this message on whether the economy plays out. So while the torres are behind in the polls in terms of the general economy, in terms of the labor party, they forgot to talk about the deficit. Major blunder. Here we have the party trying to make sure they get that message out there. Now, for the industry hit by the budget by reforms in the pension fund industry, some of the news from George Osborne may not be welcomed. Remember, the share pricing took a beating when he announced the measures back in april with the budget. So well see how that plays out, but certainly its a sweet deal for the gray vote, the people coming out hopefully from the torre Party Perspective in order to vote for them in may. So they are going to be working that very hard. Well have another few days of it yet and probably a bit more gossip to go, will, but ill keep you updated on all of that. Halle, thank you very much for that. On to corporate news, roche says the latest Breast Cancer trial shows those lived 15 months longer when given the swiss farmer drug. The longest ever reported. Looking at shares of roche, they are higher by. 10 . But this is big news in a disease, something that requires a lot of treatment. What are your thoughts on roche right here . This is an excellent announcement coming on top of a robust fundamental from an Excellent Company. What do i mean by an Excellent Company . A company with a lower credit for local Government Debt. Extraordinary idea, really, that a company has a Balance Sheet that is deemed to be superior in strength to government. Also, it is a dividend yield in excess of Government Bond yields. So you get all the bang but none of the buck to go with it. But as we go into the bond and stock rising, certainly that puts pressure on the yield stocks because they could be held for that moment on the pickup. You have to see growth as well and i anticipate that roche will continue to premium growth, but if you question what happens to equity markets with climates of rising yields, im relatively relaxed for looking at the u. S. Equity market to 5. 3 Percentage Points as we speak. If we were to see bond yields rise, i still think the risk premium is 1 too high, meaning that we can see the price of u. S. Equities trading near 17 times, plenty of upside to the levels. What level to the bond yields will stop the equity markets . I think we need to see bond yields rise to four Percentage Points before we see two things happening. First of all, they see stretch for corporations. Secondly, we need to see difficulty for people servicing debt on their own personal Balance Sheets. Four Percentage Points to me is the critical level. If you looked at the bond market locally, the u. S. Is offering the most attractive yield at 2. 5 . Its extraordinary and clearly a lot of confidence in the future management of the u. S. Economy. Therefore, its got to be good news for the dollar. When people look across the developed landscape at the economies, they are saying, who is going to be the best player to manage the future from here. And residing answers are the u. S. And not a lot of faith many the u. K. Either. The dollar just hitting another fresh fouryear high now at a sixyear high against the yen. At what point does that become a big concern for the multinationals who do business overseas. The stronger dollar makes their product less competitive. Absolutely. Its a major concern for the corporations. Frankly, when i look at the low funds numbers, i have difficulty in reconciling what is going on at corporate. Earnings are what is going on at the real economy level. And i worry that a big chunk of the reported earnings comes because companies are buying back their own shares and therefore are able to report higher earnings per share. So critical for me is return on revenues as opposed to the finance. I was looking at your notes, james, you did some interesting comments on how Alan Greenspan traded his rhetoric in 2004 when rates would rise and what that meant for equity markets and similarities with todays situation. I do worry the markets are very, very trusting in what mrs. Yellin is going to do. Before she changes the rhetoric, the market will begin to anticipate completely different trajectory for rates that may take two Percentage Points off the market levels. James, thank you. The chief Investment Officer at ccla investment management. Now time to perk up and brew some excitement. Its International Coffee day. The day is used to promote Fair Trade Coffee and raise the price for coffee growers, but also for the celebration and enjoyment of the caffeinated creation. Several chains in the u. S. Are offering free cups of coffee. Dunkin donuts, crispy krispy kreme and mcdonalds. You have plenty of options here, dont you. There was controversy in the clubhouse after veteran Phil Mickelson appeared to take a swipe at his captain during a press conference. The fivetime winner praised the work of the u. S. Captain without mentioning the work done by tom watkins. Did you see any of it . I caught the headlines. Once again, europe wins as you predicted last week. Its been a long trend in the ryder cup. I have to say this year it wasnt quite as exciting as two years ago because europe took a lead in the first day and it kind of kept going throughout. I definitely agree. Not as exciting. I wonder if europes economy will bounce back to beat americas this year. Looks less likely. Still to come on the show, turkish president sharpens his rhetoric against isis as a growing number of refugees flee to istanbul. Well have the latest after this break. This is a burrito made with chocolate, soybeans, and apricots. What kind of chef comes up with this . A chef working with ibm watson, on the cloud. Ingredients are just data. Watson turns big data into new ideas. And not just for food. Watson is working with doctors and bankers to help transform their industries. Today theres a new way to work. And its made with ibm. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. Thousands of protesters remain on the streets of hong kong in the worst unrest seen in the city in nearly 20 years. Riot police have been recalled and the markets remain rattled with the hang seng losing nearly 2 . Pimco spends the weekend reassuring clients as billions flies out the door follow iing their leaders departure. And the German Market suggests it is being investigated by a Manhattan Court for alleged Money Laundering. And soft bank is looking for movie magic. The Japanese Firm is in talks to buy dreamworks an nation for more than 3 billion. And your pine markets are in the red today ahead of uncertainty with the ecb coming on thursday, but also some Economic Sentiment data due at 10 00 a. M. London time. The ftse 100 is off just over. 10 . Similar movement for france and italy is down a quarter percent. Germany just flat. And as we see the u. S. Economy strengthen, we did see this rotation of capital out of equities and into the bond market on thursday. But a bit of a selloff in treasuries on friday. Also, factoring in the fact that bill gross is departing pimco. We are looking at the tenyear treasury yield at 2. 5 . The tenyear germany yield at. 99 . Below the 1 level. Lets have a look at the dollar still at record highs. Roughly a fouryear high against a basket of currencies. It is against a sixyear high against the yen. A twoyear high against the euro dollar. Another massive move down 7. 5 since the fifth of september and down a massive 19 since april 2013. Well bring you more u. K. Mortgage lend ding data that jot came out a moment ago. July was 66,100, so we saw a slight fall in that. Well look at the currency boards to see what the sterling dollar has done. It just ticked down a little bit off the back of that, but essentially for the day it is still flat. And the top story . Germany, commer germany Commerce Bank is being investigated for Money Laundering laws. The wall street journal says prosecutors are probing claims the lender had lax controls for detecting and protecting Money Laundering. Commerzbank is down 3 and one of the biggest losers. To give us more, annetta is joining us from frankfurt with the latest. Reporter its actually if thats going to be true, theres going to be a settlement in the sanction probe because that seems to be a different probe regard i regarding commerzbank as they have reached the sanction rules of the United States. And we thought there would be a settlement at the end of september regarding the sanctions, but now as there will be a new probe according to the wall street journal into actions of whether it comes to breaching the antiMoney Laundering action of the United States, that could mean that a settlement is not imminent. And that is bad news for the bank because the banks wanted to settle the sanction probe as soon as possible. It looks like the settlement money or the settlement should be in the region of 600 to 800 Million Euros, which would be a good deal for commerzbank, but now things look a little more dire for the bank. And that, of course, comes just ahead of the stress test result published here in the eurozone. And commerzbank is one of those lenders who might actually pay the tax according to rumors. Now the bank is down 2 . Back to you. Soft bank is in works to buy dreamworks for 3. 4 billion. A deal to give japan control of the largest animation studio. Makiko is live from tokyo with this story. Reporter the news surfaced over the weekend as a soft Bank Official admitted to the nikkei there was contact between the two companies but added chances of the deal going through were not high. Media reports say soft bank is offering to pay 32 per share, which is a 43 markup from the close last friday. The deal values the company at 3. 4 billion. Dreamworks recent releases have disappointed at the box office and have forced the company to take writedowns. Meanwhile, soft bank has had windfall of nearly 5 billion from the investments in chinese ecommerce giant alibaba. After taking over sprint, the Third Largest mobile operator in the u. S. , it set its eyes on tmobile u. S. , but last month it dropped its bid and seems to be on the lookout for media content that it can offer through its mobile networks. And thats all from the nikkei. Back to you. Thank you, makiko. U. S. Led air strikes hit oil fields controlled by advertise lambic state in syria as washington and its allies step up the fight against the militant group. U. S. President barack obama has admitted intelligence agencies underestimated the threat posed by the islamic state. In an interview on cbss 60 minutes, he said syria had become ground zero for jihadists around the world. Now turkeys president said this country cannot stay out of the fight. Speaking at the World Economic forum in istanbul, he said they will be where they need to be in the fight against isis. Hadley is there in istanbul for us this morning. Good morning, hadley. Reporter good morning, wilfred. Essentially what we heard from the president overnight is that turkey is an island of stability amidst the chaos, but of course that hasnt kept whats happening around the region and other geopolitical tensions from impacting the turkish economy. I spoke earlier today with the finance minister and i asked him how turkeys bearing the brunt. Geopolitical tensions have had significant negative impact on turkeys economy in the past and today. A 10 decline in turkish exports to iraq, increases our deficit by 2 gdp because we have a 12 billion surplus with iraq. So clearly it is Going Forward with all the focus now back in syria and iraq and international intervention, hopefully some sort of normalcy will return. Turkey would be the biggest beneficiary of more stable, more prosperous, more democratic middle east. Reporter i also asked the finance minister about the growth projections that we heard from the president overnight. He said they were definitely going to meet the 4 goal for 2014. I asked if that was a bit optimistic, he said probably around 3 to 4 he was telling me, but i want to bring in our guest, the ceo of logilitity Global Logistics form, how is whats happening currently in the region impacting your bottom line . Well, clearly its not good for the bottom line. Any time you have strife and conflict, its going to create uncertainty that is bad for business. However, we have to look at the reason for this. And i tend to believe its an economic reason. We have not done a good enough job in our part of the world creating opportunity for the young people, and if you look at the world bank statistics, it is pretty clear we have 170 million jobs that need to be created by 2020. Certainly theres the factors that you mentioned, but in terms of looking specifically at iraq, you have interest in iraq. You understand that country. Would you say then that after the departure of mr. Maliki that were going to see a more effective confrontation in terms of taking on isis . You know, i tend to believe that the solution to isis is not in the political realm, but it is something that is on the economy. The opportunities for youth. And when you talk about a region where it is very difficult to do business, it means the same way where it is difficult to create jobs. So the solution really is into finding a way to energize the economy to make it easier to do business in countries like iraq and the whole emerging market seen for that matter. We spoke earlier today with the ceo of economic city who was telling us how important it is in terms of education, in terms of Job Opportunities to make those opportunities apparent to the young people. Particularly in the gulf. Youre based in kuwait, what are you seeing in terms of progress in that area . Well, i think theres some notable exceptions, some good examples where we have seen progress such as the united arabs and saudi arabia. If you look at the other gulf countries, theres a lot to be done at making it easier to do business. Without that, we are not going to be able to create the opportunity needed to employ these graduates. And i think thats pretty much the situation that were seeing across the board. Its a lot of challenges Going Forward. Tarek, thank you for joining us. Well have to leave it there. Hadley, thank you so much. Now a look at emerging markets and where the opportunity is to invest, well bring in the Portfolio Manager at moret Asset Management. I want to start with hong kong because the protests at this scale are quite rare, and i want to know in terms of investor sentiment, are the protests weighing on sentiment or are you looking at the hang can he thse 2 . This is out of hong kong Going Forward. So from political point of view its very difficult to expect the time, which is now coming to an end end. But from the Equity Investment point of view, obviously theres impacts on tourism or kind of the sectors who are benefiting from china demand. So maybe going i think in terms of the growth, there would you say an impact, but from our perspective with etf, this is mainly coming from china versus hong kong. So it will be limited. Sticking on the political issues in china, this anticorruption charge that is going on, how significant is it that hes now talking to the former Standing Committee members . I think the point of that policy is to give a message to people that we are dealing or failing with everything. So i think this is in line with tradition as the driver of the economy. They have to boost the consumption, right . They want to make the environment for people and the customer to spend more. So the anticorruption issue sounds a bit different from this, but i think the core and the principle of this is in line with the entire strategy change. So i think, of course, again from the Equity Investment point of view, well if you look at the earning school potential or kind of the sectors who are vulnerable or the sentiment sensitive to this kind of mac co issues, it will have impact. But this is a passive step from the longterm and they are making a stride Going Forward. As we broaden out our scope to emerging markets, to what extent can politics drive Financial Markets . Isnt this what we are seeing in india and indonesia . Indonesia, if you look at last year, the second half of last year, it was underperformers because of all the fear about the possible asian crisis we had in the 1990s. It was one of the top performers in asia because you mentioned the elections and the better that expected fundamentals. If you look at the emerging markets, indonesia, india, just like last year or this year, it will be very volatile. Of course, the elections could have positive impacts like in thailand, but we have to kick the bond level of approach this way. We cannot say that the emerging markets will be volatile. So it will be volatile Going Forward, just like the experience. As long as we keep the right steps there in the country. I think in terms of earnings growth, trend, the trend can have more sustainable growth. Well talk more about the stock picks. Do you prefer alibaba . I think the most important thing is the capability of management. Because it is not just evaluation, but the real value is investing in the capable management who are able to keep pricing us on the upside for a longer period. So from that sense, i think im positive on tencent and alibaba. In terms of strong consumer demand stories, is the philippines the strongest in asia . Well, in terms of political issue or fundamentals in income, i think less volatility is there. So long as they can be a leader in their countries or as long as they have the potential to be later in Asian Countries beyond just philippines, i think theres a huge potential. If you look at the holdings, i think im more focusing on the potential components of who are growing as a leader than regional, not just in one country. And we look at the Korean Companies as well. They are doing very good in other Asian Countries. So i think we have to focus on very Competitive Companies who are growing as regional leaders. Brilliant. Thank you very much. The Portfolio Manager at mirae Asset Management. The European Commission Spokesman Says it will publish on tuesday reasons for indepth inquiry into the irish state aid to apple, this of course coming after the Financial Times reported that apple is benefiting from elicit state aid after striking backroom deals with irelands authorities. So definitely a developing story. Well continue to keep and eye out on apple. Sticking with tech, facebook is taking on google in the advertising world. The social media giant is launching its new atlas ad tools today to allow marketers to track and measure the impact of their campaigns, not only on facebook but across mobile devices and web browsers so they can send more efficient targeted ads. Omnicom is among the first to sign a Partnership Deal with facebook. Facebook is up 26 over the past three months and up fractionally in todays trade. And the price for Emaar Properties will start trading on thursday. You want to get in touch with us and let us know what you think on the markets, we have that wonderful conversation on where the opportunities lie in emerging markets, email us at worldwide cnbc. Com. Thank you very much. Im more clearly on social media. Just tweet us. Still to come on the show, hes not quite a rock star but the indian Prime Minister modi sold out Madison Square garden. Well talk about his visit to the states after the break. Mr. Daniels. Mr. Daniels. Look at this. Whats this . Clicks are off the charts. Yeah. Yoshi, were back. Yes, sir more shipping more shipping [ beeping ] [ beeping ] your customers, our financing. Your aspirations, our analytics. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. Pimcos ceo doug hodge said he spoke to clients over the weekend about the firms new leadership following doug gross resignation on friday. He is moving the flagship return fund previously run by gross does not define pimco. Hodge says theres an overwhelming sense of relief following gross departure and employees gave him a standing ovation after he was appointed cio. Reports say pimco was planning to fire gross before he resigned. The journal says pimco suffered 10 billion in outflow since gross departure and could lose 100 billion or more. But the first is confident a majority of clients will stay, but still a big story there. Absolutely. And pimcos new team received a vote of confidence from its Parent Company. The Financial Times says allianz has no plans of selling pimco or to interfere more with the business. Allianz fell on friday but shares rebounded today up 1 so far. And pretty much flat over 30 days. And weve been asking viewers, we want to hear from you on the pimco story. How important are the Top Fund Managers . Do they deserve the billing they get . And if performance doesnt last, should they move on . Please get in touch with us here on Worldwide Exchange by emailing us worldwide cnbc. Com or on twitter cnbcwex. A superstar reception for Prime Minister modi at new yorks sellout crowd at Madison Square garden. He said the 21st century would belong to asia and probably india. Translator america is the oldest in the world. India is the biggest democracy in the world. The entire world has settled in india and the people in india have gone to settle down in the entire world. Modi will meet with president obama at the white house on monday. Hes on his first trip to the u. S. Since being elected in may when the u. S. Lifted a visa ban that modi wurnds on grounds of religious intolerance. Well bring in the managing director and regional head of Standard Charter bank. Samarin, very few leaders from india have received this type of welcoming of an indian leader in the u. S. , are investors just as excited by modi and what he has to offer . Yes, clearly in the last 100 days we have also seen Significant Interest among investor lines to look into india again. And this is happening because of a nice combination between improving macro meters coming together, kind giving us a sense that growth will not be far beyond. And thats creating enough interest. Hes due to meet obama this evening. Hes also met highprofile politicians from china over the last couple weeks. Will he open up Investment Opportunities there in india . Yes, if you look at what india has opened up in the last ten years or so, practically almost every sector is now fully opened up. There are just a few which still need to be opened up, so i think modi is going to stress on the few new sectors which this government has opened up, like railways, et cetera. But beyond that, i think that the point hell try to make is now doing business in india is going to be much easier than before. So the certainty element and the speed of doing business, i think hes definitely going to stress the u. S. Companies. Expectations quite high. I mean, youre looking at the cencex up 20 over the last six months. If you are an investor and want to get in, how do you make money . On the price ratio basis, we still think theres upside left for the markets. But if you dig deeper into the market, what you would feel is some of the sectors have yet to benefit from this rally. And thats partly because of policy uncertainties as we expect the policy uncertainties to get resolved over time. Those are the sectors that are going to do well. And if europe comes back to the 7 trajectory over the next few years, a large part of the market will rally. And obviously the market has already performed quite well since modis election in may. Nevertheless, the last month or two has seen quite a lot of criticism at the pace of reform has not been fast enough. Nevertheless, you think that there have been a lot of reforms going on behind the scenes that investors are ignoring . Absolutely. I think its going to be a sequence sequenced reform where they are looking to improve administration efficiency. And that would mean that ease of doing business in india will be better. And the next state of reforms that we bring in, the more big bonds investors have for, including subsidiary reforms, etsz. Thats more the story of 2015 than the story of 2014. But in 2014, if i start seeing more of these regulations being eased and administered efficiency increasing, then i would be quite happy about it. Where do you see opportunities in the technology space, because we are expecting to see some level of reform in the technology sector. Are you telling investors to put money there . Well, if you see the years of huge digitization for the economy, you will see the fdi guys to the same portal. So the digitization is going to be humongous over the next 20 years. So i think this offers a really interesting opportunity. The director and regional head at Standard Charter bank. Thank you for your time. On to corporate news, new u. S. Tax inverse rules could prompt medtronic to renegotiate their 42. 9 billion deal to buy irelands covidian. This would make it more expensive for med tropic. The fashion house said the personal finances of its two ceos were under investigation at prada. They said neither the company nor subsidiaries were involved in the probe. Big changes at pimco. The largest bond fund. What does that mean for your portfolio . If you are invested in that fund, well discuss that next coming up on Worldwide Exchange. Mr. Daniels. Mr. Daniels. Look at this. Whats this . Clicks are off the charts. Yeah. Yoshi, were back. Yes, sir more shipping more shipping [ beeping ] welcome to Worldwide Exchange. Im seema mody. And im wilfred frost. Thousands of dollars are flying out the door after bill gross departure but they have no plans to sell. And hong kongs market sheds 2 as thousands of protesters remain on the street even after riot police have been called. And there are reports of commerzbank being looked into after Money Laundering. And we are told softbank is in talks to buy dreamworks for more than 3 billion. Youre watching Worldwide Exchange, bringing you Business News from around the globe. And a lot of focus on the u. S. Market. Of course, this coming in after what was a volatile move with tripledigit moves on the dow every single day last week. More importantly is the sum total of that week with more than a 1 decline at the three major indices. The first time we have had that in september and the first time over the summer. Is this the start of a more meaningful correction . We did see a rebound on friday with the sectors ending in the green. Well look at the premarket trade with arrows indicating a move lower by 61 points. Nasdaq down 16 points. You have seen a lot of movement in the tech sector the last couple of days with apple underperforming in the nasdaq. Look at the european markets in the red. We have the ecb Central Bank Meeting on thursday where were expected to get more details around an asset purchase program. The ftse 100 is currently down by 20 points. The xetra dax is down 20. The cac 40 is down to the downside by 15 points. The italian markets, a tripledigit decline by 120 points. Well get you a look at the biggest stocks on the move, alliant shares are getting a boost in frankfurt after pimco named Daniel Isaacson replacing bill gross. And Deutsche Bank cut the price target on the stock. Aberdeen has reported an increase in assets under management to 331 billion pounds compared to 322 billion at the end of june. The emerging market focus group also said that the pace of outflows slowed during the period. Aberdeen Asset Management up 1. 7 . So some stocks to look forward to. Absolutely. Well look at bond markets as well to see how they are trading in europe. Of course, in the u. S. On friday we had a bit of a move from one individual moving the bond market himself. Bill gross caused treasury yields to come up a little bit on expectations that redemptions might hurt the u. S. Treasury market but not significantly. 2. 53 . Still where we are sitting. Not too much of a move. German bond yields below 1 . Italy is a similar yield. Lets go to check on the u. S. Dollar that has been very strong around a fouryear high against a basket of currencies. Its around a twoyear high against the euro at 1. 2677 and a sixyear high against the yen at 109. 59. But we know that already. Its been very strong against those currencies for a long time. The aussie dollar i want to draw attention to at. 87. Its fallen some 18 since april last year. This is a currency, not an individual stock. And those moves really are significant, even though theres a carry trade to it being closely tied to china with weaker data. Its a big move and i think its oversold. Down. 54 . Sterling is at 1. 6231. No significant move there today. Now well look at the asian markets. The big move is the hang seng off just under 2 closing down already today. That following the democracy protests that have happened in hong kong over the weekend. Well bring you more on that story as we get it. Now, the u. S. Consulate in hong kong has urged protesters to remain on the streets after a weekend of protests. The Hong Kong Government has begun to withdraw riot police as the situation has deescalated slightly. Demonstrators arent happy with beijings plans to bet candidates for hong kongs 2017 election. We are joined now from the streets of hong kong now. Euniye yang is in beijing. But pauline, lets start with you. Wilfred, things are pretty calm here in the Business District in hong kong. As you can see behind me, there are tens of thousands of people on this main roadway near the government buildings. They are calm, people are sitting down and eating, Drinking Water and banging on drums. And earlier we saw a lot of umbrellas. And that was for two reasons, to protect them from the heat and also they came in handy last night, which was quite a different scene, about 18 hours ago when riot police came out and fired tear gas as well as pepper spray. So this has been dubbed informally the umbrella revolution. Now what are these people protesting . They are protesting beijings definition of what universal suffrage is. There are elections in hong kong for the chief executive in 2017. Hong kong has been working toward this. Beijing recently said our proposal to you is true democracy. In 2017 each person can have one vote, but you must select one of three or four candidate that is are approved by us, beijing, and many of the people here in hong kong say that is not true democracy. Now, wilfred, if you looked the faces in the crowd, many of them are young and teenagers in their early 20s. Many are University Students. In fact, many of these students have been boycotting classes for about a week now. I spoke with one person from the Polytechnic University an hour ago and asked him, why you here . He said, im doing my responsibility to fight for democracy. I spoke to another University Student and asked her what she wanted to tell presidethe presid she said to keep your promise of 50 years. She was referring to the promise china made to hong kong back during the handover in 1997 when they went from a british colony into chinese hands. The promise that hong kong would remain autonomous with special freedoms and rights for 50 years. Wilfred . Pauline, thank you for the update. Amazing pictures of the protesters behind you there, huge numbers. The protests in hong kong being watched closely. Eunice yang is joining us from beijing with the latest. Eunice . Reporter thank you so much. Just picking up on what pauline said, the beijing government has given no indication at all it would compromise on political reforms for hong kong. Today we heard from beijing and there was a Government Official this afternoon here who warned other countries not to support the occupy movement in hong kong. And also described the protests in hong kong as illegal. The protests that are going on in hong kong really pose a major challenge to beijing. The government already has shown its cards in that it really is not giving us any signs that it would be willing to compromise on such a sensitive issue such as Political Rights or political change. We know just based on how the leadership has acted recently that they have a very tough line when it comes to descent. They have cracked down on media as well as just generally on social media as well as others, such as minority groups. Now because of this they are faced with a major challenge on their hands where they are looking at a hong kong as the protests continue to grow where people are calling for democracy and Political Rights, which is a very sensitive issue to this government. Now, in terms of Going Forward, there arent many options for the government. And thats one of the difficulties that it faces. Eunice, thank you so much. Now another top story for us today, pimcos ceo doug hodge says he and the cio spoke to clients all weekend about the firms new leadership following bill gross resignation on friday. Doug hodge says they are moving away from the founder model and the flagship total return fund previously run by gross was, quote, not defining pimco. Hodge also said theres an overwhelming sense of relief following gross departure and investors gave him a standing ovation after becoming the new cio. Pimco suffered 10 billion in outflow since gross departure and some project it could lose 100 billion or more, but the firm is confident a majority of clients will stay. Meanwhile, the Financial Times reports Parent Company allianz has no plans to sell pimco or interfere with the business. Jay rouse says they have been prepared for gross departure and have been informed of looking for gross successor over the past few months. Allianz is up today after declining at the back end of last week. We want to hear from you on this. How much off an impact do rock stars have on a firm . Does it drive performance or is it a significant start that supports them . We want to hear from you on this. Get in touch by email at worldwide cbs. Com or twitt twitter cnbcwex. What do you think . The reality of the situation is you have to focus on the performance. At the end of the day, the Pimco Total Return Fund hasnt been doing well according to morning star clients that have pulled more than 60 billion out of the fund between may 2013 and august of 2014. So maybe its the best move for pimco Going Forward. And i suppose the impact to the fund manager really takes effect when its a slightly smaller firm than pimco is, which will continue regardless. B mr. Gross is a significant characterer in the world of bond investing. Now moving on, europe has power to victory at the ryder club. Europe led 106 into the final days play and heres the decisive shot to hand the home team the win. There was controversy in the clubhouse after veteran Phil Mickelson appeared to take a swipe at his captain during a press conference. The fivetimes major winner praised the work of usas 2008 captain without mentioning the work done by tom watson. Now stay with us on Worldwide Exchange for a lot more after the break. [ ] great rates and safety working in harmony. Open an optimizer plus account from synchrony bank. Visit myoptimizerplus. Com to open an account. Service. Security. Savings. Synchrony bank engage with us. Welcome back, lets play damage control. Pimco reports billions of dollars are leaving the bond giant. And japans softbank sets its sites on hollywood to buy Dreamworks Animation for 3 billion. And thousands of democracy protesters remain in the streets in hong kong. Now time for the rundown. Heres what you need to keep on your radar. August personal income and spending is out at 8 30 a. M. Eastern. Income is forecasted to rise. 3 and spending by half a percent. At 10 00 a. M. , we get august pending home sales which are expected to be unchanged from july. Egg producer Cal Maine Foods reports results today. Economists are lowering estimates for Third Quarter gdp but still see the economy growing at a slow pace. They expect growth of 3 this quarter down slightly from 3. 1 in june. Coming up later today on squawk box, a first on cnbc interview with chicago fed president Charles Evans from the annual meeting today at 8 00 a. M. Eastern. Of course, the fed continues to be a big market mover. Well bring in lance roberts, chief strategist at stf wealth to get perspective on where the u. S. Stocks head. It was a volatile week for u. S. Stocks last week, lance, where do you see us head this week with the ecb meeting on thursday . Right. Well, you know, the problem is that the bulls are still very much in charge of the market at the moment. So the trend is still positive. But there is a significant amount of deterioration now occurring below the headlines. So when we look at the s p 500, very positive in the above trend lines that looks great. Midcaps, small caps, internationals are all deteriorating. So breath in leadership is becoming a bit narrow. So we do want to be paying attention to that, but for right now it is all about the Federal Reserve and it is about the ecb. Hopes are here that the ecb will come in and start doing quantitative easing. The question, though, is, of course weve seen the ecbs actions before and they have not been large enough really to keep the drive behind the market. So the big thing to watch here is really whats going on with the fed and more importantly whether you start to raise Interest Rates. Due to a rise in geopolitical tensions, we saw a move in the market, do you think the market will outperform . The eurozone now, japan is pending a negative growth. But the rising dollars and the safehaven assets in the u. S. , the u. S. Dollar has a very strong run here as of late. And moneys moving into treasuries because based on a balance of trade situation, the dollar in u. S. Treasuries are still the best place to be. As everybody says, wear the cleanest shirt in the laundry. So it is just simply how long this is going to last. Lance, i noticed in the notes that you sent us that you say the u. S. Dollar is now grossly overbrought, but surely this is a move based on the return to positive Interest Rate differential. Well, it is. But in the shortterm, everything moves in circles. And particularly in price movements in the markets. Weve had such a very strong rally in the dollar here. Weve got more than three standard deviations in the longterm trends. So youre going to probably get some selling here. So if your long dollar assets or playing a currency trade long u. S. Dollar, it may be a good time to take some profits. Im not sure we are into a new bull trend in the u. S. Dollar thats driven by economic strength. This is really a differential between weakness the eurozone and the International Markets and strength in the u. S. And the durability of that is what we are going to be watching for. The u. S. Economy is showing signs of strength, lance. And investors dont seem to be ready to pile back into the small caps, the russel is one of those rallying from last week. We had such a strong slowdown over the last q4 and q1. We saw a lot of rebound in the second quarter. The question is, a lot of we are all looking at this to say, hey, look, signs of strength. But is it really signs of strength or a rebound . We need to see some trend of this growth continuing forward. But if we have another really cold winter, which is expected, we may see this being more of a trend to worry about which may be what the small caps or midcaps are telling us. Moneys rotating out of the momentum risk trades now to more safety trades as we get to a more maturable market. So again, theres nothing wrong with the markets momentarily. We just need to be paying attention to where money is rotating to. Lance, thank you very much for your time. Lance roberts, key strategist at sta wealth management. And it wasnt a rock star, but Prime Minister modi of india who sold out Madison Square garden in new york city. But investors, are they as excited as citizens in well discuss that next on Worldwide Exchange. Welcome back. U. S. Futures indicating a lower open by 72 points. This coming in after we saw a bit of a rally on friday. All ten s p sectors ending in the green with Energy Leading the s p 500 higher. This week it will be about the september jobs report. That will potentially be a market mover. And well look at the european markets in the red so far today. Across the board, ahead of the ecb meeting on thursday, the markets have also moved slightly to the negative after september eurozone Economic Sentiment that came in at 99. 9 versus august reading of 100. 6. Not a significant move but slightly below expectations. So all markets in the red in europe. Indian Prime Minister modi received a sellout crowd at madison area garden yesterday. The Prime Minister took to the stage calling on indianamericans to turn around the economy saying the 21st century would belong to asia and possibly india. Listen in. America is the oldest democracy in the world. India is the biggest democracy in the world. The entire world has come and settled down in india and the people of india have gone and settled down in the entire world. Narendra modi is on his first trip to the u. S. Since being elected in may when the u. S. Lifted the visa band modi was on for grounds of religious intolerance. Well bring in the Founding Partner and ceo of new silk partners. I watched modis address with optimism on the promise he brings, which is growth and lowering inflation, but i want to know as an investor has modi changed the way you look at opportunities in india . I think modis definitely changed the way not only the way i look at india but, in fact, the way that people in general look at india. The simple data point on that the 30 rise in the indian cencex that is clearly a very strong vote for the governance expected from modi. 65 of indias population, i believe, are under the age of 35, but from one of our previous chats in india, you said its still a challenge for corporations to find highskilled workers. Why is that . I had the privilege of a small meeting with the Prime Minister and interestingly we discussed skill development. And it was one of the things that he has really focused on. I shared the challenges that we had experienced in finding people at our companies. I told him that whether it is barista at a coffee outlet, we have a great need for people. And he talked about the challenge and is planning to focus on it. Its one of the major areas of focus for the Prime Minister. And i want to talk about the government reforms that many investors hope he will bring through. And the market suggests that confidence will come, but they have not been announced yet. Is it fair to be skeptical of the political gridlock in india given whats happened in the past . When i started in the Investment Business going back to the early 80s, one of the phrases i remember is, bull markets climb a wall of worry. So its good that there is worry around whether the Prime Minister is going to be able to deliver or not. But i think that the promise will be delivered on. As he said in his madison area garden address, and as he has been saying a number of places, hes focusing on small things and getting them done. And if you look underneath the duped campaigns covered well by the press, the make in India Campaign is certainly about easing investing in india, which is a major challenge for indians. And just easing the process will make a huge difference. The second part that needs to still be accomplished and hopefully will happy the february budget, will be clarity on some of the things that we are all eagerly waiting. For example, the absence of retroactive action in any fashion. Thank you so much for your time. Founding partner and ceo of new similari similari silk route partners. A quick look at the u. S. Futures currently pointing the a lower open. The dow jones indicating a move by 70 points at the open. And well leave you with a live shot of hong kong where demonstrations continue to bring the city to a standstill as protesters object to the democracy rules. Welcome to Worldwide Exchange. Im seema moody. And im wilfred frost. Softbank looks to create hollywood movie magic as the Japanese Firm is in talks to buy Dreamworks Animation for more than 3 billion. Commerzbank sinks to the bottom after reports of a man being caught for alleged Money Laundering. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. And if youre just tuning in, thank you so much for joining us here on Worldwide Exchange. Heres a look at how the markets are faring right now indicating a lower open across the board for the dow, the s p 500 and the nasdaq. This coming in after what was a volatile week for stocks. We did see a bit of a rebound on friday. Energy leading the s p 500 higher. The treasury market also in focus with the yield at 2. 5 . This week, of course, will be focused on the september jobs report. If its a strong report, experts say the fed could tighten earlier than expected. So it will be interesting to see how the market will respond to that jobs report. Of course, ecb on thursday. On that note, the global 300 is a good gauge of stocks around the world currently trading down by 15 points. Similar story when you look at the individual european markets to see that it is red across the screen with the ftse mib down 164 points. The cac 40 down 16. The xetra dax down 21 points. The ftse miz down. 79 ahead of the ecb meeting on thursday that will be a market mover. So how do you make money in markets like these . Heres what the experts have been telling us this morning. If we see bond yields rise, i think the risk premium is 1 too high, meaning we could see the u. S. Equities trending in 17 times, plenty of upside to the market. I feel like i am more progressing on the potential companies who are growing as leaders in regional, not just in one country. The hang seng also gets a lot of chinese companies. They are doing very good in other Asian Countries. The u. S. Dollar has had a very, very strong run here as of late. And moneys moving into treasuries because based on a balance of trade situation, the dollar in u. S. Treasuries are still the best place to be. Pimcos ceo doug hodge says that he and cio Daniel Isaacson spoke to clients all weekend following bill gross redding nation on friday. Pimco is moving away from a founderled model and the flagship total return fund previously run by gross does not define pimco. Hodge also said theres an overwhelming sense of relief following gross depaurture and they gave isaacson a standing ovation after being designated cio. According to the journal, pimco suffered 10 million in outflow and some product it could lose 100 million or more but the firm is confident a majority of the clients will stay. The new vote of confidence from its Parent Company, the Financial Times reports allianz insists no plans to sell pimco or to interfere with the business. Jay rouse says they have been prepared for gross departure and were fully informed on the search for a successor in recent months. Allianz took a big fall following gross departure on friday but it is up a tick this morning. A lot of people are saying the move in treasury market on friday was dubbed as the bill gross departure, the big bill gross selloff, but some say it is better than the gdp data we got on friday. The u. S. Saw investors move into riskoriented sectors. What are your thoughts on where the treasury market heads from here . First of all, bill gross is a phenomenal investor with a 30year bull market behind him, so hes been in the right market at the right time. So the important thing in terms of investment outlook, i think youve got to look at the relative returns. And if you look at tenyear treasuries, they are yielding, what, 2. 5 . If you look at the earnings yield on the s p, its 6. 5 . Hes had a fantastic run and a huge bull market, which hes run for 30 years. I suspect equities, we have seen a trending in the market, so i suspect all the excitement is going to be in equities and not bonds. A great map, good position, but i dont think we should get too concerned. The evaluation is not a concern if you say equity is the place to be right now . We have seen the s p steadily rise. Sure, i dont think evaluations are cheap or excessive. On a 30year average they are trading about 17 times, which is where they have been on average for the last 30 years. So evaluations are not excessive. Patrick, if we look at the rally equity markets in the u. S. Year to date, could we say it has lacked breath . As the bond market gets a little more mature it gets thinner. And thats understandable. Its nearly five years old now so its hardly surprising. Youre seeing a divergence. Every time you see risk off, people go to hide in the big cat. You see the divergence between the russell 2000 done for the year and the s p which is up. I suspect that to normalize as people talk about normal policy. I suspect whats going to happen in the earnings coming up on october 8 for the Third Quarter. I suspect the u. S. Dollar because thats part of that risk will probably hurt one or two of the companies there because of the large multinational companies. But generally earnings will be good and the outlook for the u. S. Company is going to be good. So theres a lot to play for. Tell me what happened last week, all the major indices up over a percent depending on the size of the company. Does that point to further pullbacks as we go to the rest of the year or not . I dont think so. You get this trade every year. If you look well, i came out this morning and looked exactly at the september swoon that happened last year. From september 18 to october 8, the market was up nearly 4 . If you then look for the balance of 2013, the market was up 12 . This happens every year. This is basically the fussup period between now and october 8 where companies preannounce, so you may get a few of those. But it was rash hashanah last week and i suspect returns to be normal. And you have an Election Year as well, and history says to buy the market on september 30th in an Election Year. So youve got, i think, a very good run up to tend of christmas. I would be buying the market here. This week all eyes will be on the september jobs report in the u. S. Will it be good news for the market or will bad news result in the Market Selling off . The prospect of rising rates . Of course, yellin mentioned well see rates low for a considerable period of time. Considerable. So the nuance has changed. I think thats what the bond markets are telling you. We talked about tenyear at 2. 5, thats discounting rates Going Forward. Patrick sensor, thank you for your time. The indian director of the International Institution equity sales at baerd. How much of an impact do rock star managers have on a firm . And how worried are you on the outflows . John where in to say hes more worried about the u. S. Market at the end of october and the risk of the end of qe . Adam says, well see how much influence gross said once he sees results. Email us at worldwide cnbc. Com or tweet us, cbs cnbcwex. And alleged violations of Money Laundering laws are happening against allianz. They are looking if the lender had lax controls. Commerzbank is down 4. 2 in trade today. Hank greenberg is getting his day in court. The trial begins today in the lawsuit filed by the former aig ceo over the terms of a u. S. Governments bailout of insurer in 2008. Greenberg is disputing whether the fed had the legal right to ask for and hold equity when it took a majority share in the company during the financial crisis. The trials witness list includes some big names, former treasury secretary hank paulson and tim geithner. And former fed chairman ben bernanke. And now japans softbank is california dreaming. Reportedly setting its sights on a multibillion deal in hollywood. Find out more when we cross the sea after the break. Andipple shares were under stress last week. In the last hour, the European Commission said it will publish tomorrow the reasons for opening an indepth inquiry into the irish probe to help apple. The stock dipped lower on thursday ending the week lower by. 30 . Keep your eyes on apple. Earlier the colleagues said on squawk box that theres something to watch with apple. We want most citizens to be playing a fair share. So we all one of the last times i was on we were discussing that starbucks doesnt play tax in the u. K. Apple sells hundreds of millions of pounds and pays no tax. We wont call that fair. It may be legitimate or legal but it is not fair. We have to be quite careful with our message to management. Sometimes they should do the right thing but it is not level the of tax that is the problem, its the complexity of the tax regimes to make it expensive and complicated and that is what gives them the loopholes. We have done this story many, many times. Hes won the tax code now for war and peace. And two, the u. S. Tax code doubles approximately every 24 years. Isnt the key here to make it simpler so there are less loopholes and then the harmonization issue will be easier. Theres no pressure on the irish now to change the system. New u. S. Tax inversion rules could prompt medical device maker medtronic to renegotiate the 42. 9 billion deal according to sources cited by reuters. The u. S. Treasury made it difficult for American Companies to move their tax dollars abroad which would make buying comidien more expensive for medtronic. The Japanese Firm softbank is looking to add shrek and po to their lineup. Nevertheless, kate rogers is at cnbc hq with more on this story. You guys do not know who po is . Tell us who is po. Hes from kung fu panda. The creator of shrek and kung fu panda says softbank is offering 32 a share up 10 a share from where dreamworks closed on friday. Thats below the high of 36 that was reached last year. The deal would give softbank control of dreamworks. They have had a number of hits in their franchise and has blazed a trail in china where it signed a joint venture deal with three stateowned Media Companies to produce movies and tv shows and is building a 2. 4 billion Entertainment Complex in shanghai. Dreamworks was spun out of the studio started by david geffon and Steven Spielberg in 2004. They would sign a fiveyear contract to stay with the company. Buying dreamworks would make them the second Japanese Company after columbia pictures was bought in 1989. It had more than 17 billion on hand at the end of june and they recently cashed in on alibaba. It still holds a 32 stake making it one of alibabas largest shareholder. In july a formal google exec was hired that sparked rumors the company could be considering acquisition of a content maker. Dreamworks has seen the share price drop 37 after posting two straight quarterly losses. That is due to a string of Box Office Bombs including mr. Peabody and sherman. Thank you for that, moving on, u. S. Led air strikes have hit in syria as washington and allies step up the fight against the militant group. U. S. President barack obama admitted they underestimated the threat posed by the islamic state. In an interview on 60 minutes he said this is ground zero for jihadist groups across the world. Hadley is in istanbul now with more on this. Hadley . Reporter so essentially what we have heard from the president over the last 24 hours is he came out swinging, really, he was blasting International Media saying they unfairly characterized the turkish position when it comes to syria and iraq. You have to remember that turkey sits on what is essentially a geopolitical faulgtline. His narrative was more that turkey could be a bit more forgiven for the accusations they have been by bipolar in their border with syria and iraq. They want to create a buffer zone, so thats going to be part of the conversation Going Forward. He also said, listen, we have been fighting terrorists for 30 years. Referencing there the pkk. Hes like, this is a problem thats going to be ongoing. It is not a oneoff for us. It is something we have to prepare for in the long term. Military preparedness, this means financial preparedness for the longterm fight. So its a bigger question for turkey than just joining International Leaders in this coalition to fight the islamic state. Hadley, thank you very much for that. Were going to update you now on the headlines from today. Pimco plays damage control in the wake of bill grosss departure amid reports billions of dollars are leaving the bond giant. Softbank sets its sites on hollywood to buy dreamworks for more than 3 billion. And the hong kong stocks come under pressure as thousands of democracy protesters remain in the streets. Economists lower their q3 projections for u. S. Gdp, but after a q2 rebound, is it steady as she goes . Well discuss the u. S. Market, next. Your customers, our financing. Your aspirations, our analytics. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. Welcome back. This is a live shot of hong kong where protesters continue to bring the city to a standstill. Many are demanding democracy from beijing. They are withdrawing riot police as protests die down. A lot of protesters there in hong kong to bring the hang seng market down 1. 9 in trade overnight. And that negativity has spread through to european markets today. Red across the board as you can see. Partly because of that sentiment from asia overnight, but also because of data out of the european Economic Sentiment that came in for 99. 6 versus 100. 6 in august. That was a september reading versus the august reading, slightly less than expected but nothing significant. But enough to weigh on the markets, germany up 1. 3 and the ftse 100 is off a quarter of a percent. What are we expecting in the u. S. . Futures are indicating a lower open looking at the s p 500 down six points. Nasdaq down 15 points in premarket trade after a volatile market. A rebound in stocks on friday with the nasdaq ending up higher. The Small Cap Index may be seen as a leading indicator for the market. It will be interesting to see if the Small Cap Index can play catchup or if evaluations will continue to be a concern. And its time for the rundown. Heres what to keep on your radar today. August personal income spending is out at 8 30 a. M. Eastern. Incomes forecast to rise 1. 3 and spending by half a percent. At 10 00 a. M. August pending home sale which is are expected to be unchanged from july. And egg producer Cal Maine Foods will report later today also. Third quarter gdp is still seen to be growing at a steady pace. The latest poll from u. S. Business economics expect us to be down slightly from 3. 1 later in june. Coming up later on squaux box, an interview with Charles Evans from the chicago fed president. Thats coming up at 8 00 a. M. Eastern. Well bring in scott, the ceo of tgm investment. Scott, love the jacket, as always. Got to talk to you about where the markets are headed from here. Investors are trying to understand how to position themselves ahead of the jobs report. What would you recommend they do . Well, they should be on the sidelines here because it has been a volatile number and will continue to be so. We are sitting here watching our Federal Reserve bank try to keep two stories live. One, the markets doing a lot better and things look good. We may raise rates sooner rather than later. But wait a minute, the market is not doing well enough to do it just yet. So as long as weve got those two stories out there, this is where were going to see these equity prices kind of linger around these levels to probably slightly lower. And were going to need to see two to three months of good economic numbers to give the fed a chance to do what they want to do. Im just going to tell everybody out there right now, the idea of rates sooner rather than later is wrong, but right now thats the bandwagon we are all on. And number two, well find the Federal Reserve in the back pocket for a lot longer than anybody could ever really imagine. Theyve got qe because we try to buy some inflation. What the dollar is doing and how strong it is, we dont have inflation. We have denation. So the fed is in trouble and it will be interesting to see how they react to the numbers coming up. Scott, i want to thrust at you that the nasdaq is up more than 9 for the year but the average stock within the index is actually down this year. Its bringing us back to a point we have been discussing with a lack of breath in the market strength this year with it being led by the big caps. How are you positioning yourself now as we look into the final three months or so the rest of the year . Well, i tell you what, its a good question to ask me because im a little different than the rest of the world out there. I think this is where you need to be. You still stay long. A little bit of the stock indices, because i still think that negative news is ultimately good news. And well see some sort of we could see stimulus in some new form First Quarter next year because we are not doing that well. Number two, i still want to stay long on the bonds. I think that tenyear rate is telling us thats the truth serum. Keep a look at the tenyear rate at something to tell us to worry about. Stocks and bonds will be higher, be long both. Scott, ceo of bull brokerage. Thats todays show. Im wilfred frost. Im seema mody. Squawk box is next. Good morning. Welcome to squawk box. Prodemocracy protests in hong kong taking a turn for the worst. Thousands take to the streets as police move in to contain that massive crowd. Pimco seeing billions of dollars walk out the door after bill gross quits. How much more pain will the fund giant feel in the wake of his departure . And Dreamworks Animation working on its next big story and it could involve a sale to japans soft dbank. Its monday, september 29, 2014. Squawk box begins right now. Good morning, welcome to squawk box here on cnbc. Im Michelle Caruso cabrera along with Andrew Ross Sorkin and joe kernan. Becky quick is off today. Despite a big rally we saw on friday, volatility is back and that is making things a lot more interesting. The dow has closed up or down by 100 points in seven of the last ten sessions. Dow basically flat. S p is down a little more than 1 . The nasdaq is down 1. 5 . And the small cap heavy russel 2000 dropped 5 . Futures at this hour are suggesting a negative open with concern about the situation in hong kong. Dow opens lower by 62