Transcripts For CNBC Worldwide Exchange 20141003

Lower. Demonstrations continue. Hong kongs leader says theres no plan to clear out protesters. Sdmroo the brazilian president said polls suggest she would win a second round run off. Announcer youre watching was was, bringing you Business News from around the globe. And it seems red october is over already. Lots of green in europe today. Largely, though, just a bounceback from yesterdays decline following the lack of ecb clarity on the action. We had just a 2 decline nearly from the dax for the day and a nearly 4 decline in the italian market. So what has bounced back the most . Well, its what declined most yesterday. The ledger was down yesterday on some ebola fears which has been led up by easyjet. And why are people going into money like that . Perhaps its what Warren Buffett told krnz yesterday. The more the market goes down, the more i like to buy. Lets look at some individual stocks now. Easy jet. The ftse 100 up about 0. 63 . Ezjet is soaring raising its on the year. 5. 5 up today. Ubs down 2 . Shares trading lower after swiss peat ya reports of a potential fine in a french tax case. Amec up 2. 7 after the company backed its full year outlook and it says it expects modest underlying revenue growth. It does not expect the cancellation to impact its full year outlook. Nonetheless, shares down 2. 5 . Lets look at bonds. The u. S. Treasury yields just picked up yesterday from about 2. 4 to 2. 43 . Weve got the jobs number later, of course, so all eyes on that. Otherwise, interestingly in the bond markets, we didnt see nearly as much movement. Neither did we see it in the euro dollar. The euro dollar was at about 1. 264 yesterday and its still at that level today. We got a big move in the stock market yesterday downwards by the lack of ecb Balance Sheet expansion which might have expected the euro to recover from ground, 1. 264 at the u. S. Dollar yen paring at 108. 8. All eyes today will be on the jobs prints in the u. S. Last month was the First Reading for six months that we had under 200,000. Forecast to get back above 200,000 levels this month, 215,000 is forecast. The Unemployment Rate expected to stay at 6. 1 . Seem ya, back to you. Sdwh will fred, ecb president mario draghi disappointed investors with less details than had been expected to buy secure debt. We know it will buy covered bonds from mid october and assetbacked securities at some time in the fourth quarter. Leading analysts suggest its in a wait and see mode. For the specific purchases to happen there, that are to happen there, so that the asset vote there would be risk equivalent to asset boat elsewhere. So, for example, sizewise, typewise, and then there is a second i would say caveat of putin which is basically that its supposed to have an Ongoing Program with the eu. The roy fo president has spoken out against the decision saying, quote, the ecb will turn completely into a bailout authority in europes bad bank. Peter, yesterday we were hoping to have something on how much, how long, and how targeted the ecbs Bond Buying Program would be. We didnt really get answers to any of those questions, did we . I think youre right. I have to the sometimes im sitting there and thinking why is the market so disappointed . Because it was very not very clear, but it was quite clear that ecb president draghi could not tell us we will be x billion or would not tell us we will buy x billion of color funds and y billion of securities. So he has been vague, but frankly, i didnt expect him to be relatively it didnt seem like he had much confidence in the ecbs forecast coming forward. I think thats probably one of the reasons. Clearly, with the ecb conference, if you just look at the most recent data releases, they were just on the weak side. The ecb president draghi has recognized that. Let me again say i think we have not and i think thats what he mentioned, as well, yesterday. We have not seen the impact of the most recent announcement or the weaker data in the euro. Ultimately, i think the proof is going to be in the pudding and very difficult to say from this point of view whether or not theyre going to have any success with these programs. Now, at the ecb press conference, if the ecb policies were behind the rise of euro skepticism in germany. This part of the world, things are not going well because you have the basic unemployment and you have very low weak Economic Activity with the recession that seems to never end. So you cant expect people to be enthusiastic about that. In the other part of europe, you have this because they feel like people are paying for everybody else. And so that is also reason for not being happier. So this idea is understandable, but i dont think its right. The euro is irreversible. Alistair, i want to bring you in now. Ets talk about the internal dispute taking place between draghi and merkel. How have those conversations stopping the ecb from unveiling full blown qe and we know thats what investors were wanting. Id be cautious about the use of the world internal and that we have to bear in mind that the ecb is an independent central bank. That said, i think mario draghi has come straighted convincingly that he does have functioning political antenna and hes going to be aware of the move in berlin and concern over the Public Opinion there as reflected in the impressive regionally elected results of alternative over the past five weeks when weve seen them average better than 10 in three key elections. For the First Time Since 2005, Angela Merkel has a conservative force on her own party stance. Its not just about the euro, but its something shes going to have to keep in mind. Shes going to have to keep carefully in mind the possibility, probability that signal that some of this stuff is going to have to finish up in the german countries. The ecj is going to be considering the legality of the omc at the german constitutional court. Omc has been the one single biggest factor in stabilizing that for two years now. Alistair, you say nationalism could rattle the markets. Wa did you mean by that . In greece, if we look not just in europe, but worldwide, weve got openly nationalist leaders in office in japan, india and china right now. Coming back to europe, which this is the subject of the day, doing very well in elections including whipping that first senate seat last week. H im putting labor in a lot of pressure. Now, these arent the only theys the ones most on the radar at the moment because of the ongoing election cycle. Thanks for that, alistair. Peter, im just going to come back to you. A big, big move in the stock market off the back of the lack of ecb clarity. Yet not very much move in the euro dollar or in the bond markets. Why do you think there is that disconnect . First of all, let me start with the fx market. It has been our view for quite a while that the big move in euro dollar is not necessarily down to the ecb. Yet the ecb is helping through keeping the front end anchored. The big move wove seen led by the dollar leg of the equation and that is one of the reasons probably yesterday the move didnt happen. The global fear that the global slowdown might be coming, that is probably more closer to the truth than just pinning it on the ecb. As far as the bond market is concerned, i think ive said it before. There was not a lot of disappointment in the lack of clarity at some of the press reports might have us believe. I was speaking to a lot of investors beforehand and a lot of people in the bond market. Everyone was saying before well, you know, what really can give us that we dont really know at this stage. And, hence, i think that explains a good lack of part of the movement. Peter, thank you very much. Alistair stays with us for a further few minutes. Coming up on the show, jpmorgan admits 76 Million People were hit by data breach. Coming up, we talk to a firm that says it can help you evade taxes. Get out quickly, find out which company has warned investors because nobody cares about this. And it was the worst performing market in september. Will this weekends president ial election in brazil cause more weakness for vebesfa . 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. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Brazils elections are indicating the current president would win a second round runoff. Lets bring in alistair. India is going through its own reform with modi at the helm. Brazil arguably needs the same. Do you think it can bring reform . Despite the polls and the momentum which she clearly has, this election outcome is not a foregone conclusion. It is still possible, in my view, that marina sill va could pull through in e second round. I have to say im very, very cautious about reform. I think her philosophical values will have her looking to perspective brazilian worker which means shes not going to be doing a lot of these things markets would like to see happen. Secondly, and this is a generic point, whoever is president of brazil is always going to face a lot of resistance from the Brazilian Congress over pushing through meaningful reform. If we look at issues like tax reform, thats key in my view. Thats pretty much been stopping congress for seven years now. I dont think were going to see that change after this weekends election, which is going to elect a new congress, as well, lets keep in mind. But there is an enormous amount of vested interest and inertia in brazil. I think shes shared a remarkably pro market position election in the campaign would struggle. Whats the main challenge facing the brazilian economy . Some would say its structural, others would say its a lack of reform. What are your thoughts . In the long run, it has been lack of reform. If we go back all the way to 20 on 02 and the election of lula, really, we havent seen any structural reform since then. I dont want to diminish what lula achieved on the social reform side. I think that has been very important and has helped to boost the economy as well as general welfare and well being in the country. But the last president who pushed through Economic Reforms and supply side constraints are a major burden on the practice zillan economy today. Thanks for that, alistair. Well be back in a minute. The hong kong leader says there are no plans to clear out surrounding government offices. This comes after he agreed to begin talk with protesters despite beijing repeating its opposition to the unrest. Translator i will fought resign because i want to continue to do my job well. I want to work with everyone to continue the important path of shooting for a one person, one vote election can take place in hong kong. Alistair, should the british be getting involved in this sfut . The handover agreement stated, quote, a broadly Representative Committee must be in place. Should they be getting involved . I think the first point to make, which is very important in the context of your question, is what beijing has approved by way of a process for 2017 elections. It is entirely consistent with the basis law which was approved by the British Government back in the handover to power. There is nothing which beijing has put on the table which is inconsistent with the basic law. And i think we all need to keep that in mind Going Forward. That seems to me to be a key issue. Now, should foreign governments get involved in this generally . The answer is do they think it is going to be helpful to the process which is ongoing at the moment. And my personal view would be that we have a dialogue which is about to start in hong kong. Lets see where that goes. Thanks so much. Im going to move on to russia ukraine. I read in your notes president putin has, in your view, succeeded in seizing back the initiative in the ukraine crisis. His ally, yanukovych got out and he feared that europe would move closer to nato as a result. Maybe hes moved the border slightly, but now ukraine is much, much closer to europe and much, much closer to nato. In the longterm, would this not be a failure for putin . From where things stand in the ukraine today, it is very, very difficult indeed, in my view, to see ukraine being able to move into a formal eu membership ornateo membership panel. And that, after all, is really what a lot of this is about. Now, having said that, your question is well justified in the sense that kiev has certainly been able to move into the early stages and no doubt will continue to develop if the Eu Association agreement. But i really cant see it going much further than that, despite president poroshenkos desire to see ukraine on a formal track eu membership by 2020. I simply dont think that can happen. Now, my assumption is that once we get the ukrainian elections out of the way at the end of this month and we have a new government in site, there will be some sort of negotiating process start up. Risk is far from over in my view. We will and expect the russians negotiate from a hard line position. I dont think we will see mr. Putin giving much ground. At the moment we have another conflict on russias border and you only have to think how difficult it has been to resolve the previous vote and confliction. I also would stress this. It is quite plausible in my view, still, that we will see a further escalation of military action in eastern ukraine. The possibility of russia looking to open up the Permanent Land corridor to crimea cannot be totally ruled out, even though ive arrested it. The market key point is, i think, that we have not likely with the status quo, at least, which may be sustainable for some weeks to see more eu sanctions brought in. I dont think the eu will make a move. On the other hand, i think its extremely unlikely that the eu will look to rachet back any of its existing sanctions under the review of those, which is due to end at the end of this month. An american freelance cameraman working for nbc news in liberia is on his way back to the u. S. After testing positive for ebola after the u. S. Diagnosed its first infection when a man returned from liberia. But the central of Disease Control said the risk of infection from that patient is low. If Thomas Duncan lied his way past Airport Health screeners that may have exposed an issue. At delta air lines, flight crews and ground staff have all been on the lookout since march for suspicious symptoms. We tell them to look for a person who seems to be ill and to particularly assess for fever. Whether that assessment is by touching the perpendicular with a gloved manned or the individual says they feel feverish and other symptoms like bleeding, vomiting. The university of pittsburgh stat m. D. Handles 9,000 calls a year from air crews and ground staff around the world. While ebola is a concern, doctors say the risk of it spreading in an aircraft is low. Even if someone is infected, flying on an aircraft with them, unless you came in close contact with them, there wouldnt be knit risk of disease transmission. Should a paengser become sick in flight, they could be quarantined on arrival. The cdc operates 20 quantity teen stations at major airports and Border Crossing stations nationwide standing by in case of emergency. Any airline could deny boarding to a passenger if they believe he or she is sewing signs of serious illness and the crew is required to call head to u. S. Health authorities and that could pose a risk, as well. Warren buffett has said he made a, quote, huge mistake investing in uk retailer tesco. Budget has held a firm since to 307. Shares have lost nearly half their value this year alone. Buffett told cnbc the investment was miscalculated. Yeah, that was a huge mistake i made. Im going to make mistakes, but im not going to make mistakes because i buy businesses i like when they go down in price. Im just going to be wrong sometimes on the factes. What do you think, is the worst behind tesco . I think we have to see. Interim results are due on the 23rd. Well get more clarity around that accounting error and why that happened. But interesting to see Warren Buffett talk about tesco. Apparently out of his larnlthest holdings last year, tesco was the only stock that underperformed. Can you imagine looking at that statement . Everything else but that one stock kept them from having a full positive. But not just a small blip, but you owned as much as 5 of the company at his peak time of holding. Down over 50 this year. Absolutely. Ben bernanke used to oversee the u. S. Mortgage market, but even he is having trouble getting a loan. He told a conference in chicago thursday hes having a hard time refinancing his mortgage due to tie credit conditions. He bought his house in 2004 for 839,000 and has refinanced twice before. The wall street journal says bernankes issue may be that his loan may be too big to qualify. And we want to hear from you on this. Hes mortgaged his country, but he cant remortgage his own house. No, on a serious note, has banking regulation gone too far in the housing area if ben bernanke himself cant refinance his morning . Get in touch with us here on worldwide exchange. How easy are you finding it to get lending for your home 12347 email us, world would it cnbc. Com or via twitter cnbcwex. Still on to come on the show, a british businessman attacks france saying no one works and no one cares about it. We head out to paris to get a reaction. oont European Markets bounce back with the banks leading the way. This as investors eye with nonfarm payroll, expectations are the u. S. Added over 200,000 jobs in september. Criticism coming from all sides for mario draghi. The ifo president says the ecb is turning into europes bad bank. The hang sedge makes a late stage rally after opening sharply lower as demonstrations continue. Hong kong leader says theres no need to clear out protesters. The brazil yap has polls suggesting she would win a second round runoff. And were just getting through uk services pmi. It has come into september at 58. 7. It was forecast to be 59. August was 60. 5. So its coming in well below expectations, as you can see. Sterling slshl dollar has if aelen off the back of that. Down about 0. 3 for the day trading at 1 of 6093. Earlier today, we had the eurozone composite pmi which has fallen to a tenmonth low of 52. 0. The euro dollar has weakened a bit since that reading. Lets have a look at how European Equity markets are trading today. The green across the board, as you can see, that doesnt tell the whole story because it is about bounceback from yesterdays big declines after the ecb sales to give clear quantitative easing measures announced a clear easing measures. Yesterday we did see bond yields pick up slightly higher, given the macro factors weighing on Investor Sentiment with ebola. Taking a look at the tenyear treasury yields, trading at 2. 4 . Its come below that 2. 5 level. The german bund yield at 0. 1 and the tenyear gilt at 2. 3 . Two of the worlds most powerful financial minds both happen to be speaking on thursday. No, im not talking about seem ya and myself. Imf managing director Christine Legarde at Georgetown University in washington and mario draghi at his News Conference in italy. While they were thousands of miles apart, their message about the economy was the same, gray and gloomy. Our recovery is weak, fragile. The Global Economy is weaker than we had hoped. Up employment there are those great turns on the horizon. In a recession that seems to never end. Economic cloud, we have the geopolitical cloud. Things are not going well. Brent crude futures have risen back to 934 a barrel after a threeday slide since june of 2012. Brent futures have tumbled nearly 15 yeartodate despite worldwide gee your political attention. Lets bring in garrett lewis. Geopolitical tensions have been on our radar for quite some time. Why are we now seeing the price of oil move lower . Its moving low because crude inventories have been increasing. So in effect, supplies have been exceeding demand. Opec normally adjusts its production downwards in circumstances to protect price. Theres been no evidence that that has been the case so far. In terms of geopolitics, i think earlier in the year there was perception that production has been damaged by the situation in iraq. And that was seen not to be the case. Since that point, theres been a drift downward in prices. But we think that will change. Garrett, were you surprised that the saudis didnt cut production . I think the saudis quite often like to be ee anythinigmat things. There has been some suggestion that they need to cut some points, but they have not been clear as to when and by how much. I think what weve seep in the past that saudi arabia has taken the heavy lifting off opec and has union hat rayly and uniformly made the cuts by themselves. We have yet to see that, but we feel that they will do so at some point over the next few months if necessary. Gareth, as investors factor in geopolitical tensions, where do you think the gas goes from here and how do you think the stronger dollar will play out . That crazy head winds for commodity price, including oil. We should see a stronger dollar create some pressure on oil prices. However, we feel oil prices will move up in part because of opec cuts but because of demand between september and december. New refinery res coming on stream. So we think that will tilt to tighten the crude market and move crude and brent into double figures again. We would suggest 106, 108 at some point in the fourth quarter. And, gareth, with the majors all pretty much following the same path as cutting backs cap ex, focusing on financials, do you think theres a complacency with oil prices where they are significantly below a hundred . Well, certainly, the big mega projects indeed, their high cost developments and the majors are the companies that are strongly able to develop these things, acutely aware of the economics. I think a lot of on our supply is coming from the cheaper, on shore fields in the United States, particularly, which wont be impacted by a low oil price environment. So there is a risk that if the big mega projects dont take place, yes, it wood enable opec to once more increase market share and increase prices Going Forward. Gareth, thank you very much for joining us. Moving on, from lawmakers yesterday, he struggled to convince them about his commitment. He faced the book and his confirmation hearing to become the next economic and Monetary Affairs commissioner. The politicians denying paris the broken eu budget rules during his time as french finance minister. Stephane is in paris with more. Stephane. It was indeed something very difficult to adjust what has been doing when he was french finance minister for two years and when he repeatedly asked for more viewing that too much austerity would jeopardize the austerity. But at the same time, you had to convince the parliament in brussels that it would enforce vigorously the european fact of stability and one question released from the rises very well as the sentiment from the partment. How are you going to convince greeks and portuguese to do what you havent done in france. We think he managed to convince the members of the european parliament. It was my will. Dedicated myself to give sincere and dem administrative answers. I am a european, but i am experienced to be a commissioner and i hope a good one and will stick to the common rules which are the rules of the union. These are to be objective. And what are the which are followed . Is this man woman, but that im a european . I am. Has he got competitive experience . I have. We have no problem with that. So, well, now its up to the commission, the committee to evaluate my answers. But do you understand all the concerns about the deficit . I answer thad very clearly. As a commissioner, i will be a commissioner. I wont be the ambassador of france or the ambassador of the party. And i must be evaluated on all my appearses, not on some ides s which are preconceived. And accord iing to, he was n good enough to convince the committee and not good enough to wipe out their skepticism. He may have to go to brussels again next week for another hearing. Stephane, stick with us. Theres an executive from a retailer that had some pretty harsh words. France is finished and anyone with investments in the country should, quote, get out quickly. Thats the verdict of john lewis managing editor who launched an attack this week in a set of comments which he described as tongue in cheek. Stephane, i want to get your reaction. What are people in paris saying about those comments . I thought john lewis was finished and that the Business Model was finished. I dont think you can summarize france with only the two or three problems that we need to sort out. Its true, we need Structural Reforms in france. Its not going as fast as people would like. If its two years later than expected, perhaps its not that bad. If we dont kill the economic rove, perhaps its probably to state more years if its necessary. What is the problem in france . Its difficult to reform the country. But eventually, some governments have been able to change and things in frabs. Now, if is the mentioning the business, sentiment in france and the thakt if a for some people its difficult to create some jobs in france and to do some business in the country, perhaps we have also to look at the cac 40. We have in the cac 40 some world leaders, the its the case for lvmh, which is the largest luxury group in the world and we also also and Major Players like total in the oil sector. All these companies are doing quite well. Last but not least, take into account the back burden for these countryies. Thats the offshore rate. In practical terms, Companies Say less than this, between 8 and 20 on the cac 40 because there are plenty of tax loopholes in france. Trust me, its not hell in france and you can still do business in this country it might not be hell, but clearly growing frustration from businesses and executives alike who want to see reform and they want to see the French Economy improve. And we would like france to adopt the same model. But we are in france and not everything in france can be exactly like it is in the uk. Thats the rule. When you do business in other countries, you have to sometimes apply with local ways to do business. If you go to china, things are different. Thank you, very fan. Im not even sure that john lewis even has that in st. Louis. Still coming up on the show, from the Syrian Electronic Army to the cyber squad, is a Virtual Private Network the best way to avoid your online foes . Well discuss that, we know were not the center of your life, but well do our best to help you connect to what is. Disney has the departure of the ceo would has been credited with much of the companys success. Disney is extended bob igers contract by two years, through june 30th, 2018. Iger plans to appoint a chief operating officer next year. We can infer that would create a role that would set up a succession plan. Disney has had great cincinnati 2005. The companys market capitalization has tripled to more than 150 billion. Hes made a number of strategic acquisitions, including marvel and lucas films. Iger will get a performance based Retention Bonus been but other than that, his contract will be unchanged. As the new tv season kicks off in europe and across the atlantic, the debate about how that content gets into home is full focused. Tonight, cnbc will bring you a money peat ya special where Reed Hastings and money market mark fries signs off. Essentially who should pay for what . One side of the argument is hey, netflix, youre using 30 of the internet, you ought to pay some of the cost. Were not using anything. Consumers are choosing netflix. Should 100 of the people pay for the investment thats requires to supply services to 30 of the people who are voraciously consuming something . Its an ageold economic question. We say playfully to mike, well take 10 of the network cost if we get 10 of broadband revenue or well pay 10 of our network cost and it depends on how youre arriving on the network. Mike had some fighting words from hastings, but the two had similar thoughts on market consolidations. You think that a big player like google or yoohoo could simply come in because they have the war chest. If you have a big war chest, thats because youre a good steward of capital. People with a lot of money dont tend to foolishly spend that money. Theyre not particularly interested in, you know, high end content in the way that both of our businesses are. Maybe they will be in the future. Do you think thats likely . No. For the same reasons that reed is describing, he would not them as well or best than we do. Consolidation is definitely happening in europe. But its happening because theres a good economic reason for them to happen. Theres too many mobile operators. Theres too many cable operators. 7,000 cable operators. Theres like three in the u. S. Consolidation needs to happen here so we can get good infrastructure based competition, cross platforms. I think its less likely. I dont see it happening. A great interview by our carolin roth. Reed gives us some clues on the next season of house of cards, my favorite show. Tune in for a special tonight at 23 30 cet. Jpmorgan says the data breach first announced in july expected 36,000 households. The bank says theres no evidence Sensitive Information including a number of accounts, passwords and Social Security numbers were stolen. Jpmorgan says it hasnt seen any unusual fraud activity. October is officially National Cyber Security Awareness month. Did you know that . I didnt know that. How can corporations and individuals protect themselves against possible attacks . One such way is using a Virtual Private Network or vpn. Joining us now to explain that is danvers beylou. Before we get into the interview, i want you to help our viewers understand what exactly does your company do . Well, we provide a Virtual Private Network, as you said earlier. We have a network of Service Across the globe and our subscribers can connect to one of those servers. By doing that, it protects their internet connection. Are you helping the hackers . Were not helping the hackers. Particularly, the hackers are using networks all over the world. Whether theyre using our network or someone elses network is not up to us. We discourage hackers from using their network. If im abroud to watch the mayor or tune in here to the american version of netflix. Weve read that, of course, netflix wants to ban the likes of vpn. Was your view on that . I think its been reported that theyre coming under pressure from the films to block this sort of activity. But its going to be very difficult for them to do it. Run ago vpn is a legitimate thing to do. And people are running them not just for blocking content. Arent there local providers offering the same service . No, not necessarily. Pore some of those countrieses, like sear where a, where its disk to find a local provider, the actual infrastructure posted outside the country and its merely the ip address that is a local ip address. For most countries, we aim to have local infrastructure. But its actually quite complicated. Undertaking. Its easy in western europe and in the United States. But in four currents, its quite difficult. Is the ultimate point to help consumers to escape excess government control . Well, that was one of the reasons we were set up, probably the main reason we were set up. We have things like the arab springs and we saw human amounts of traffic. Earlier this year, we had the twitter ban in turkey. Twitter users were able to continue uses the service by accessing a vpn like ours or one of the other services. Would governments be able to track what cyber terrorists were doing more easily . There will always be vpns because the main use is corp. S who are using them to allow their workforce to connect remotely. That was one of the main cases that vpns were originally designed for. So were never going to see them got rid of altogether. But yes, if we have complete control, cameras in our bedrooms, the government would know exactly what were doing at all times of the day and night. Are you seeing the start upenvironment pick up over the past couple of months and has it been hard to find funding for investors . Weve been profitable from day one and weve never had to take a penny of funding from investors. Completely selffunded from day one. So wee not in that position of having to go and chase funding, but we know companies that are. It looks like the market is in that perspective right now. Is there a big tlit to similar attacks on government by rimp rather than lack of Cyber Security . I think we have to differentiate between the attacks on jpmorgan where theres been attacks on their website and we havent seen what sort of thing happen except for the one case which was the virus which was developed by the u. S. , we think was developed by the u. S. And valleys to take out a Nuclear Power station. Syria, i believe. And the risk of that sort of thing is probable not too serious. These viruses can be developed and so on. You need huge resources, probably of the nation station in order to use them. Thank you so much for joining us. Now, hong kongs financial secretary john hang is due to deliver a press conference amid the city. Well bring you the details on that when we get it. This is a live shot of hong kong where protests have entered a second day. Ben bernanke is having trouble getting a loan. The former fete chairman said hes having a hard time refinancing his mortgage due to tight credit conditions. Bernanke bought his house near capitol hill in washington for around 800,000 and has refinanced twice. The wall street journal says the issue may be that his loan may be too big to qualify for backing from fannie mae or freddie mac. Hes refinanced his country but cant refinance his house. John sweets in to say Bank Regulations havent gone far enough while michael says the process of et gooding a mortgage has gotten worse. And some are calling it the most important jobs report for the u. S. What are analysts and economists speccing . Well discuss that coming next on worldwide exchange. Welcome to worldwide exchange. Rebound futures point to a strong open on wall street as banks lead the way in europe ahead of the nonfarm payrolls report expected to show more than 200,000 jobs were added in september. Private sector growth in the eurozone falls to the lowest level this year. Uk services pmi disappoints. Is the hang seng opens sharply lower as demonstrations continue. Theres no plan to clear out protesters the. Jpmorgan discloses details about a major breach at the bank. Announcer youre watching worldwide exchange, bringing you Business News from around the globe. We heard from draghi. Big, big declines in European Markets yesterday. Dpermny was off nearly 2 . Italy was off about 4 . They ended the day flat. Exactly. Take a look at premarket trade in the u. S. Right now, arrows are pointing to the upside, implying a higher open after a roekz start to the day. U. S. Stocks did rebound with the dow and s p 500 ending slightly lower. Add to that the russell 2,000 gaining about 1 in trade. Lets take a look at stocks in europe and where were seeing the strength across the board. You can see all these sectors right now in europe showing a bit of green with the banks which got hit hard yesterday after we did hear from margo draghi. Retail, industrials showing a bit of green. Were looking at the ftse 100 up about 53 points. France up 28 points and the italian markets once again showing a bit of green, up 194 points. Interesting to see as we finish the week, european stocks tajing a bit of a rebound here. And we havent really seen that volatility in bond markets. Which yesterday didnt really react to german bond yields still around just under 1 , about 0. 9 tenyear guilt about 2. 395 . We did get a bit of movement in the u. S. Treasury yields, up 2. 44 . That ahead of the jobs number coming later. People thinking maybe it would be better than last month. Lets have a look at currencies. We didnt get much move in the euro dollar yesterday. Theres a lot of disconnection. Interestingly today, it is down about a quarter of a . The yen is at 10888 against the dollar. The aussie dollar has undone a bit of a bounceback it saw earlier in the weak. Its down about 0. 35 today as that services pmi we brought to you about a half agoing on seemed unexpected. The financial secretary of hong kong warns that the sustained protests in hong kong could cause permanent damage to hong kongs financial is system. Worrisome statements coming in from the secretary of hong kong saying sustained protests could cause permanent damage. So something to watch. Weve been seeing the hang seng underperform its asian peers over the past couple of days. Today the september u. S. Jobs report is out. Forecasts call for an increase of 215,000 in nonfarm payrolls following the disappointing 142,000 in august. Analysts think the retail seconder will rebound at 6. 1 for the second month which would be a sixyear low. Were going to bring in steve cohen at blackrock. Steve, if this number comes in better than expected, if theres strong jobs growth, that could lead to talk of rising rates. What does that mean for markets . I think that is a big thing as we go into the year and next year. Were starting to see policy divergence which was talked about earlier in the year but didnt come to fruition. I think the biggest impact weve seen so far is in the currency volatility, were starting to see that bounce back. U. S. Stocks have been supported by this accommodative policy. October marks the end of quantitative easing in the u. S. Can u. S. Markets continue to outperform despite that qe . I think its relative. Our view is that you move out of quantitative easing when you start to talk about in the u. S. , that is going to have impact on other markets. Weve seen at times u. S. Equity in particular have been fairly accommodative to monetary policy. He think were going to see more volatility. I think the outperformance is at the moment being driven not so much by the u. S. Rallying. Its weakness in other equity markets more so than strength in the markets at the moment. And when we look at that policy divergence, what does that mean for policy outsiders for europe, japan and the u. S. , if weve got a strengthening dollar, rising rates, what does it mean for emerging markets . If we look back on when the dollar started to move earlier in the summer, the summer initial reaction from markets was sanguine. I think were going to move into the stage where differ enation is going to be very important, which countries are more connected. I think were going to see and were starting to see the pullback on fundamentals where there are some areas were seeing. And were going to talk more about emerging markets with you. In addition to that highly anticipated jobs report, we also get the august trade deficit at 8 30 a. M. Eastern. 10 00 a. M. , its all about the september ism services index. Expected to drop by more than points from august. Ec president president mario draghi has we know it will be buying bonds from october and at some point in q 4. Leading analysts to suggest the ecb is in wait and see mode. Theres a series of measure thats mitigate risk for the specific purchases to happen there, that are to happen there so that the assets vote there would be risk equivalent to assets vote elsewhere. So, for example, sizewide, typewise, and then there is a second i would say satisfiace of prudence which is to have an Ongoing Program with the eu. And its not just investors criticizing the ecb. Reports suggest the head of the Austrian Bank both voted against the decision to buy junk paper from greece and cypress as part of the ecbs debt buying program. The ifo president has spoken out against the decision saying, quote, the ecb will turn completely into a bailout authority and europes bad bank. A lot of pushback from germany. Do you think that is all draghi has left to revive the european economy . I think what youve severe over the last four or five months is that the ecb has delivered generally a comprehensive package of statements and that has shifted a lot of investor expectations. I think what weve seen is just disappoint. Draghi in the last two meetings and particularly the one we had last month, now you start to get into the detail. I think the details that these policies that hes put in place are going to take time. The abs buying is going to take time. There is a lot of nuances and theres a lot of pushback. That is why our belief has been and continues to believe that actually their focus will continue to be on trying to get these packages working before they look at any sort of koven qe. And in particular that they would hold back on the basis that they do need to hold it back in case things get worse than where we are today and we move into a deflagary environment. Why such a move in equity markets yesterday . I think the euro is, in our view, going to continue to weaken. Potentially we may see more of that, but we dont think it necessarily changes the trend. In the bond market, theres a focus on the weakness of the data. If you think about what the ecb is doing effectively by going out and buying things like cover bonds, we are seeing this in europe. I think the disappointment has been in the peripheral markets. Qe may come and that could lead up to italy, that could be the lat list to get the economies going again. Imf managing director Christine Legarde will be speaking in washington and mario graggy at his News Conference in isly. They were thousands of miles apart but their message about the Global Economy was very much the same, gray and groommy. Recovery is weak, fragile and even the Global Economy is weaker than we had hoped. There are those agree clouds of the horizon. The economic clouds, we have the financial clouds and we have the geopolitical clouds. Fed approximated James Bullard says there was a less than expected impact on the u. S. Labor market. Bullard has been forecasting the feds first rate hike in the First Quarter of 2015. He says the fomc will have to change the ride guidance language in a statement at the next meeting which is october 28th. Bullard says he doesnt think the fed can keep using considerable time any longer. Ben bernanke told his conference in chicago thursday hes having a hard time refinancing his mortgage due to tight credit conditions. Bernanke because his house in nearly washington in 2004 for 839,000 and has refinanced twice before. The wall street journal says maybe his loan may be too big to qualify for backing from fannie mae and freddie mac. He has mortgaged his country but bernanke cant refinance his house. Has Bank Regulation gone too far if even ben bernanke cant refinance his mortgage . John tweeted in to say Bank Regulations havent gone far enough. There should be a mandatory down payment when buying a home. Michael says the process of getting a home has gotten worse. Steech, do you have a thought on the Housing Market and if the banks are providing enough or looser regulations to take out a loan . Its a business of a catch22. You need to have some sort of lending market. I think the big chang in the u. S. Remains the Housing Market, while having picked up from where i was a couple of years ago, the follow on this year has not been what it was last year. Coming up, well get the latest on the demonstrations 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 ] welcome back. Lets give you some headlines. U. S. Stocks are set for a rebound following europe into the green ahead of todays nonfarm payrolls report. Brazilian president widens her lead ahead of this weekends president ial election. And a hat at jpmorgan, the bank revuls more information about a massive data breach that affected 76 million households. Hong kongs financial second says it could cause permanent damage to the financial system. Speaking this hour, hong kongs market will remail volatile in the longterm. This comes after they said there were no plans to clear up protesters surrounding government offices. Susan is in hong kong with the latest. Susan. Normal city back into the city today. And as you see, the number of protesters have really gone down from the days that weve seen in the past week or so. I should tell you that, yes, market have reopened. Banks have reopened. Originally, they had put down their branches in a decision of possibly a long standoff between protesters and city officials and the government. But they have reopened here. I also want to point out that some roads were blocked by protesters, some of them have reopened. The bare indicates have come down, as well. Were looking at more normal city in the city. The bain of downtown hong kong still remains shut, but well see how long this lasts as we head into the weekend. As you pointed out, the session we saw in the stock markets, we were down initially 1 , came back, and there is concern for the tourism sector, especially when you saw the counties being hit and the retailers, as well. Back to you in london. Susan, thank you very much for that. In other news, jpmorgan says the data breach first announced in july affected 76 million u. S. Households and 70 million Small Businesses. Thats larger than the attacks on target and home depot. The bank says theres no evidence of Sensitive Information including account numbers, passwords and Social Security numbers were stolen. Jpmorgan has said it has not seen any unusual fraud activity. A freelance cameraman helping nbc news cover the outbreak of oh bowl la in liberia has tested positive for the vire russ. The rest of the crude also been flown back and placed in quarantine for three weeks out of caution. The hospital in dallas where the first u. S. Ebola patient has been treated is blaming its electronic records system for the reason he was initially sent home from the emergency room last week. Separately, theyre reaching out to passengers that may have flown on the plane from liberia to dallas. Its the worst performing emerging market in september, but will elections provide a boost of stocks . Were going to talk about brazil and its elections coming up next on worldwide exchange. Sharls schuabb has drochd its collective funds. The move follows a review following bill grosss depart e departure. The fund has nearly 3 billion in assets. And youre looking at a chart now of the assets that left the door when they left investco. I want to ask you a question. Do you think of a company of your size that people are investing because its blackrock or are they investing because larry fink leads the way . I think at blackrock, its about fink. Ultimately, investors look for performance and they look for the right outcome. I think what weve seen is the outcomes. How does that feet with what their moves on . So were seeing, for example, much more blending. You wouldnt have seen it a couple of years ago. Those trends, the fixed income which for us is a big shift. We think about the big changes. Ultimately, thats going to change fixed income investing. Its very much on thinking about what are the funds, what are the products that investors need to build these outcomes together. If there is more unconstra unconstrained particularly on treasury markets, what does that mean, does it mean it could be a lot more volatile . Potentially. What unconstrained investing does is it gives you more bandwidth as a fund manager. If you think about fixed income, just focus on fixed income for a second, its very, very benchmark heavy. In certain environments, much of the last 20, 30 years, that has been the right fall. Thats not necessarily the way youre going to want to have the exposure and outcome. Its how you manage those index. What about yields on emerging market debt . The prospect of rising rates in the u. S. Has seen some capital out of emerging markets is and into the u. S. Treasury market. Is that a trade Going Forward . I think the dollar is the key. What we have seen the last couple of months when they talk about the Dollar Strength is its feeding through the fixed income. That has proved to be a positive view, that the half currency emergency market debt. I think local currency is vulnerable to what is happening there. The president has increased its lead in the challengers. Its 40 of the vote against still those 24 and neves is 21 indicating she would win a second runoff. How are you playing this invest investor . Its really very difficult. Phase number one was kind of around march, april. We had the hopes that actually you might see a challenger win the election. Rates are dropping significantly, i think there was an element of the moments of india hoping brazil would have it, modi comes through and deliver reform and hasnt been there. The polls are revered, youve seen a significant reversal of assets. Going forward, i think there is a potential opportunity. If we see a result which is taken negatively because the market is cheap, we are very cautious about reform overall. Thank you, steven cohen, investment strategist at plaquerock. Coming up next, well talk marketes and more. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Youre watching worldwide exchange. Im seem ya mody. And im wilfred frost. Rebounds leads the away in europe. Ahead of the nonfarm payroll reports that show over 200,000 jobs were added in september. Hong kong says theres no plan to clear out demonstrators. A cameraman for nbc news tests positive for the ebola virus, becoming the fifth u. S. Citizen known to be affected while people close to the patient in dallas were quarantined. Jpmorgan discloses details about a massive data breach at the bank which affected 76 million customers and several million businesses. If youre just tuning in, thanks so much for joining us on worldwide exchange. Here is a look at how markets are fairing ahead of the u. S. Open. Futures point to go a higher open, the Labor Department will release the initial jobs report. If it continues to expand at its current pace, you could potentially see the federation rates sooner than expected. That is why this jobs report is so important for the markets. Right now, the dow up about 72 points in premarket trade and the mass dak following suit. Take a look at the ftse cnbc global index. Its point to go a higher open right now, currently up about 7 points or 0. 1 off of session highs. Lets dig into the European Markets just to see how theyre fairing. We did see positive moves in the ftse, the dax and the cac and ftse mib. But right now, were looking at the dax close right now, but lower right now by around triple dimts, 186. We did see European Markets trade lower yesterday, suggesting that dral draghis abs plan left investors unimpressed. Im investors were expecting full quantitative easing. Thats not what the markets got. Now, how do you make money in these markets . Here is what some of the experts were telling her this morning. In an era where cash is negative, there will be a hunt for yield. In that environment, areas like european high yields are attractive. Apple is a great company. Were selling millions of the iphone 6s, 6 pluss. Its really wait for the top line, bottom line, gross margin for apple. I think its a good entry point anytime you can get apple below 100. In part, its crude demand between september and december yearend. It will increase quite strongly coming back from turn arounds. It is all about the jobs report, isnt it, wilfred . At 8 30 a. M. Eastern time, its likely employers stepped up hiring last month. Forecasters called for an increase of 215,000 in nonfarm payrolls. Factories are seed anning 12,000 jobs after adding none in august. Analysts think the Retail Sector will rebound. Lets bring in patrick okeefe, director of Economic Research and former Deputy Assistant secretary in the u. S. Department of labor. Patrick, so much focus on this highly anticipated jobs report. What are you expecting . And hey, if its a strong jobs report, is it right to think the fed will raise rates sooner than expected . Well, we expect a stronger number than forecast. Were looking for about 245,000 nut me jobs. September. Virtually all of those in the private sector. We also think if theres going to be an upward revision to the august number which really was an anomaly of what was going on, it was almost inconsistent with virtually every other indicator that we had. How the fed receives the number, i think, is a little bit more difficult to discern these days. Weve got this confusion of all the indicators that theyre using. Overall, i think the fed, if we get good numbers today, will not change course. What theyve said is, theyre going to take it a month at a time. They still would look for a trend, what is the threemonth average doing. What is going on with Labor Force Participation . Notwithstanding last months print, what do you think has been driving the strength so far . Is it public side or private side and what does the fed care about most . Its certainly the private side. The hiring in government sector has picked up relative to where we were a year ago. But its still not a driving force. I think what is underneath this market, the reason we expect a better number, is that employers mindset has shifted from hiring in reaction to that come in the order books and have positioned themselves to look forward in higher in advance of what they anticipate those orders books will look like. Since the economy and the forecast look positive, we expect higher hiring. Factory orders for the month of august came in weaker than specd. Is that some reason, a concern for Market Participants and does that give us any indication of what to expect from the jobs report when it comes to jobs in the factory sector . The decline in the manufacturing new orders was, really, influenced by the shift july to august in terms of aircraft orders. Underneath basically new orders were unchanged for july and august. Our expect ages is that we will see a sizable increase in manufacturing employment. Auto sales are at new highs, demand looks std steady and employers are looking forward to the coming year and a better year at that. And patrick, forecasts 215,000, how much higher than that number would it have to be to see a significant move in markets . Im not a market maven. I think what we see in the action this morning, the market is already anticipating a higher number and its looking for good news to move up after whats been a rough patch. Thank you, patrick okeefe. Former Deputy Assistant secretary in the u. S. Department of labor. Lets take a look at adds other top stories. James bullard says Third Quarter had a better than expected impact on the u. S. Labor market. He says that makes it more necessary for the fed to move fast other rate hikes. Bullard has been forecasting the feds first rate hike in the First Quarter of 2015. He says the fomc will have to change the right guidance wording at a statement in its next meeting. Bullard says he doesnt think the fed can keep using the, quote, considerable time frame. Meanwhile, ben bernanke used to oversee the u. S. Emergency mokt, but even he is having trouble getting a loan. He said on thursday hes having a hard time refinancing hirs morning due to tight credit conditions. Bernanke bought his house in washington for 2004 for 840,000 and has refinanced twice before. The wall street journal says bernankes issues may be loans may be too big to qualify for backing fannie mae and fredding mac. We want to hear from you on this. Hes mortgaged his country, but he cant remortgage his house. On a serious note, has banking regulation on housing gone too far, even mr. Bernanke cant refinance his mortgage . John tweeted in earlier to say banking regulations havent gone far enough. There should be a demand of 25 down payment when buying a home. Michael says the process of buying a home has gotten worse. Get in touch with us via email or twitter. Aside from experiencing the night life here in london, the brazilian president rousseff has increased her lead over her challenges. The it is the election to watch this weekend. Rousseff holds a 40 of the votes according to polls. That indicates she would win a second round runoff. Theres so much focus on the brazilant election and what outcome they will be in if perhaps we will see structural reform. They need their modi moment that india is currently having. Absolutely. The structured elections on the second round runnup, even though shes leading around 39 at the moment. Theres still a lot to happen in that election. Now, a an american freelance cameraman working for nbc news in liberia is on his way back to the u. S. After testing positive for ebola. The risk of infection from that patient is low according to the cdc. Tom filed this report. If Thomas Duncan lied his way past Airport Health screeners, it may have exposed a attempt by the u. S. To detect ebola. Flight crews and ground staff have all been on the lookout since march of suspicious symptoms. We tell them to look for a person who seems to be ill and to particularly assess for fever, whether that assessment is by touching a person with a dmroefd hand or the individual says they feel feverish. And other symptoms like vomiting, diarrhea and bleeding. The nerve center for inflight medical emergencies is here. The university of pittsburgh stat md handles 9,000 calls per year from air crew and staff around the year. Even if someone is infected, just flying on an aircraft with them, unless you came into close contact with them, there wouldnt be knit risk of disease transmission. Should a passenger become sick in flight, they could be quarantined upon arrival. Any airline could deny boarding to a passenger if they believe he or she is showing signs of serious illness and could be a danger to the passengers and the crew. And the crew is required to call ahead to u. S. Health authorities if while in flight someone becomes seriously ill and that poses a risk, as well. Every little for Warren Buffett. Thats when it comes to tesco, we believe. We hear from the oracle of omaha on his huge mistake after the break. Tough times for the worlds Third Largest retailer. Tesco has steadily declined this year due to players and that led to the company issuing warnings. One of it came last week when it disclosed an canning error. About 50 just this year trading at 11year lows. Its not just uk investors that had been hit hard. The stage of omaha himself, Warren Buffett, said he made a huge mistake in investing in uk retailer tesco. Shares up nearly half their market value alone after a series of warnings and accounting errors. He could see the investment was misclukted. Im going to make mistakes. But im fought going to make mistakes because i buy businesses i like as they go down in price. Im just going to be wrong sometimes on the facts. New details of a hacker attack at jpmorgan this summer is adding to increasing doubts about the security of consumers that are held by Bank Retailers and others. Courtney reagan joins us from cnbc headquarters with more. Jpmorgan disclosing on thursday the data breach which it first announced in july affected 76 million u. S. Households and 7 million Small Businesses. Among the data that was stolen, customer names, addresses and phone numbers and email addresses. But only people who use chase. Com and online were impacted. The bank says theres no evidence that any Sensitive Data such as account numbers, passwords and Social Security numbers were taken. It says it hasnt seen any unusual activity stemming from the breach. Jpmorgan discovered the attack on its servers in midaugust. The bank has disabled any kompt mized accounts and reset passwords were all sent to employees. Its sorry for what happens, but it doesnt believe customers need to change their passwords or account information. It says they wont be liable for any unauthorized transactions. That has his Financial Firms and major retailers. Last month, home depoint says hackers affected 56 million debit and credit cards. Naeemal marcus and target stores have been attacked last year. Despite spending mms millions on Cyber Security, the company was still worried about the threat o attacks. Jpmorgan estimates it will be spending about 250 million annually on Cyber Security. Back to you. Thank you, courtney. Want to get you some news on facebooks acquisition. A 19 billion deal. The antitrust regulators have approved the acquisition. Facebook shares down about 2 over the last seven days. We can see what its doing in premarket trade. Whatsapp up slightly in early trade. Its more of the same for disneys management. The entertainment giant postponed the departure of the companys ceo who has been credited with much of the companys success. Disney is extending bob igers contract to june 30th, 2018. Sources tell me iger plans to appoint a chief operating officer next year. We can infer that would create a role to set up a succession plan. Disney has had Great Success since 2005. Its more than tripled to 150 billion. Hes made a number of big act 60ss, including marvel, building up disney aed stable of brands to exploit its platforms. Theres a changing political environment. Bayliss, based in North Carolina was going to merge. Last month, reuters reported the top 20 shareholders threatened to vote down the merger and threatened to sell itself. Now saldc is looking at activists. He said the administration has taken steps to make inversion more difficult and to make it harder to extract the benefits. You have to wonder if this is a growing trend Going Forward, if the administration puts more pressure on these tax inversion deals and if more executives will provide their views on how they feel. The other thing to factor in is there is a long way to go. But theres certainly pressure from the politicians wanting to try and get that. Absolutely. Another focus today is that jobs report. Todays nonfarms payroll report adding over 200,000 last month. Will september figures fuel an expectation of an early rate hike from the fed . Well discuss that next. 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. 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. Lets give you some hms. U. S. Stocks are set for a rebound. Ahead of todays nonfarm payrolls report. The brazilian president widens her lead after thhead of this ws elections. Lets let you have a look at European Market as we just said there, in the green today, following a significant selloff yesterday after the ecb did not give enough clarity on its easing measures. Yesterday we saw germany up as much as 2 . Italy off as much as 4 , though unsurprising to get a bit of a bounceback today. Germany is closed. Thats why youre not seeing it there in that spread. But all of these markets up 0. 5 and 1 after rebounding from yesterdays close. Traders still seem to be unconvinced at the actions. It will curb inflation. You can take a look at the premarket trade. After a rocky start to the day, the u. S. Stocks did stabilize. The s p 500 ending slightly lower. The nasdaq was able to eek out a gain. The russell 2000, a Small Cap Index which has been trading in correction territory did outperform yesterday, up about 1 . As you said, the initial speech from mr. Draghi didnt bring back the u. S. Market. That was around lurch time. By the end of the day, it shugged that you have. And the market market can continue on regardless. And i was hearing there was a refocus on the accept zbs report, out at 8 30 a. M. Eastern time. Forecasts call for an increase of 215,000 in nonfarm payrolls, following the disappointing 142,000 in august. Factories are seen adding 12,000 jobs after adding none in august. Analysts think the retail second sector will rebound. Unemployment is forecast to hold at 6. 1 for a second month. That is, k, a key level to watch which would be a sixyear low. A lot of focus, of course, on whether this jobs report comes in better than expected. Does that raise the likelihood of the fed increasing rates sooner than expected, maybe even six months down the line . Absolutely. I think its a crucial factor. Interesting that august was the first month of six that the reading was below the 200,000. It didnt change that we were expecting the rate rise. I dont think it will have an immediate impact, whatever the number is today. Improved in the labor market will give janet yellen more confidence that she can start to raise rates. Elsewhere, the financial second says it could cause permanent damage to the citys financial system. These comments cover after hong kong says theres no plans to clear out the surrounding markets. You have to wonder if this uncertainty threatens asia. We havent seen this in a long time. Absolutely. Its interesting important to see how they deal with sociology unrest. Well be watching. Thats all weve got time for today on worldwide exchange. Squawk box is next. Good morning. Welcome to squawk box on this morning. Nbc news cameraman has been diagnosed with ebola. Hes coming back to the United States for treatment, along with the rest of the crew including nbcs dr. Nancy schneiderman. She will be quarantined, as all of them will be. In wall street, massive data breach at jpmorgan. 76 million households and 7 million Small Businesses may be affected. Now word on what data hackers have access to. And the unemployment reports, at 8 30 eastern time. Well tell you what the numbers mean and your money, its jobs friday, october 3rd, 2014. Squawk box begins right now. Good morning, everybody. Welcome to squawk box here on cnbc. Im becky quick along with Andrew Ross Sorkin and steve liesman. Joe is off this week. The stakes are high for this mornings jobs report. Stocks are on pace for the worst week in about two months. The s p eking out the tiniest gains yesterday that saved the index from its first fourth days of losing streak for the year. Barely eking it out, husband than 0. 01 of a point. Forecasters say the economy added about 215,000 jobs last month. The Unemployment Rate is seen holding steady. Weve been watching futures ahead of that report this morning. Youll see at this point there is a