Transcripts For CNBC Worldwide Exchange 20141124

And we are just going to bring you to the europe sentiment data. The number was previously at 103. 2. Its coming at 104 for november. The expectation index has come in at sorry, im just going to get that one. Its come in at 99. 7 against a previous index of 111. 0. We are going to bring in the chief economist here to show us this is a pretty big surprise. This is a very important data point for two reasons. First of all, the economic weakness in europe over the last six, seven months has been largely germany. Positive germans are the turnaround we need. And the german weakness itself was focused on business investment. Investment is driven by expectations. And now that we have our sixth month of decline, it does show that business can start to go up begin at the end of this year and in the First Quarter next year. So these data suggest the worst could be over. Of course, its just one month. We have to wait for confirmation, but it is a very positive sign. Does this also indicate that in the instability were seeing in russia, between russia and ukraine, isnt impacting germanys economy as much as some Analysts Expect . Well, it has impacted germany a lot, this instability, but the good thing is over recent months there have been less headlines about it. The conflict is still raging, but it has not gotten much worse over the last two, three months. As a result, the german businesses are getting used to this background noise of geopolitics and if they are getting used to it, their expectations are actually normalizing if todays data are anything to go about. As youre saying, this is forward looking so its positive in what may be due to come, but it is just a survey with expectations. We have had gdp numbers and pmi numbers not as encouraging, but youre taking a lot of strength from this data. This is just one month. We have to see this confirm to really be sure that this is a change in trend. We need to see three months of positive data. But yes, the pmis, the gdp data are different. The pmi, look at the current situation. The gdp data are backward looking. Its the expectations component that really tells us something about what might happen in the future and for once we are getting good news this morning on that. Thank you so much. Well continue our conversation on europe and germany coming up after this break. Thats the chief economist there at bird bank. We had solid gains in europe last week, 3 gains from where we stood a week ago. And we started off this week with slight gains. We started flat and strengthened through the session and we have a positive reading out of the german Business Sentiment data which is not taking the edge off. Lets look at the stoxx 600, we are up 1. 25. And the stoxx 50 is up. The best part of 1 . Significant moves over 1 now. Well look at the individual market to see where the strength is split out on a countrywide basis. The ftse 100 fractionally in the green, but Continental Europe benefiting once again from mr. Draghi last week that he does stand by ready to act if necessary. And germany is doing well today up 9. 6 off the sentiment data much more positive than expected. France up 1 . Italy up three quarters of a percent. Lets dive into some of the individual stocks so far today. Friends life is trading at the top of the stoxx 600 on news that aviva is close to making the deal worth 5. 6 pounds. They are giving friends new shareholders in the new entity. This is expected to nearly double avivas numbers. Aviva is up 4 today. Meanwhile, france is up significantly 7 . In san palo, they are up 2. 12 . They are eyeballing a deal with rbs. Rbs put their business up for sale in august and we are hearing the u. K. Is interested in that sale as well. And waell look at the news driven by mario draghi in the coming weeks and months. That was mainly focussed in the european bond markets but it brought down the u. S. Trashry 2. 3 . But more movement in europe as i just said. Germany is not comfortably below the hand. And bonds in the u. K. Are pushing around the 2 handle, 2. 06 . Italy, record lows for the tenyear italian bond. So similar to the u. K. Yields, they really have similar fundamental outlooks. 2. 16 in italy. And in spain we are now below 2 on the tenyear, 1. 97 . Significant yield compression over the next couple of days. The euro gave up some ground on friday. Its flat today, 1. 2384. The u. S. Dollar is bouncing again considerably up half a percent against the yen. 118. 36. Its just off the highs we touched last week, 118. 98. But of course, significant strength in the dollar against the yen still. The aussie dollar is soft on news of chinese easing, but today we are giving up some of the ground. What has the news of the chinese easing done for equity markets in asia . Well get an update from sri standing by in singapore. Good afternoon to you, sri. Good afternoon to you, wilfred. In a nutshell, like louis hamilton did not too long ago, turbo charge the markets. Quite a bit of risk on rally in the asian equity session. Really led by greater china. Look at this, eight shares up almost 4 . Threeyear highs for the shanghai composite. The markets were surprised any Interest Rate decision on friday. It was on schedule. Its the first cut in rates for about two years by the pboc. So it really juiced the property developers. The brokerages were in favor today. And even the banks after a stumble at the initial early goings on in the market. They did regain some composure and were stronger in settlement as well. The big unknown is really how long the gains will last for. Are we going to see real sustainability across the markets or are investors going to take a step back and sell into this bounce on the idea that hang on a minute, if we saw such relatively aggressive action by the chinese monetary authorities, doesnt that imply that there are deeper stresses that are in the broader chinese economy . So thats the risk, but what we do know is many economists have been telling us that heading into 2015, possibly as early as the First Quarter, we could see more action, more easing by the pboc to really try to consolidate the growth rate between 7 and 7. 5 . All in all, longevity off the move is the big question Going Forward. In terms of liquidity, trading volumes are thin on the ground. And today, seema, because the japanese markets are closed for the Public Holiday, they are the ones to watch heading into middecember and the politics of course middecember election call by the Prime Minister abe. A referendum, if you will. Japan and china very much in focus for Global Investors. Sri, thank you so much. Now to get Market Reaction, the chief economist at Jennifer Bank is with us. Some reports indicating there could be future Interest Rate cuts. How does that impact or revive chinas economy . Some would argue Structural Reforms are needed. These are two separate things. When Structural Reforms are needed, china has implemented the reforms step by step. What they tried to do is minimize the disruption from the longerterm change to the shortterm business cycle. When we say structural reform, it means china is doing something new. The chinese authorities dont really know what the precise impact of these new policies will be. If they give a bit more freedom, for instance, for the Real Estate Developers to go bust, what does that really mean to the economy . If they get a bit more freedom on the downside, will that hurt the economy a lot or not . And what we see in Monetary Policy and to some extent in Government Investment spending is, whenever in these structural reform processes, the overall economy seems to tank a little more than they would like. They go against this with their stimulus. But broadly they have two things, structure reforms is a longterm organization and shortterm policies prevent the economy from slowing down too much. Thats what we have learned again. Of course, the easing taps in some way or another, but this is more significant than that. Will the reaction and credit growth be similar to when we have rate cuts in 09 and 2012 13 . This looks like a cautious rate cut. It is structural reform, it is not an overall cut. Well have to watch the next few Economic Data. And if they look sluggish, then as you already suggested, there might be more rate cuts to come to make sure next year the growth rate is above 7 . Is. If there are future rate cuts out of the pboc, is that an admission with china it is dealing with a challenging situation to look at slowing growth and high inflation . Well, i would say relative to the situation in many other parts of the word, china has a mightily challenging situation, not a very challenging situation. The mightily challenging situation is not because they dont have significant problems but because they have a lot of room to deal with. Look at where chinese rates are, they could actually cut. There are many parts of the world that you cannot cut anymore because they are very low. China has the tools needed to deal with its economic issues. The gdp is around 250 and still rising. Flirting with these kind of rate cuts, is that a recipe for disaster for china in the long term . No, i dont think its a recipe for disaster the long term. We have to make sure the china market modernizes and that china is able to deal with the debt that are focused on some parts of the economy. It is significant issue, but again, china with its huge private savings rate, 40 of income is being saved, also has a lot of asset growth and a huge flow of savings which can be used to offset occasional difficulties. China is not at the brink of a debt crisis. Thank you very much. And coming up on the show, we cross live to ferguson, missouri, as the town braces itself for a grand jury decision over the Fatal Shooting of black teenager Michael Brown. All the details on the shocking arrest of portugals former Prime Minister for tax fraud, thats coming up. And we round up the nailbiting weekend of sports including the onehanded catch that sparked an incredible reaction on twitter. Thats coming up. You can bring back a lot of things from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Jose socrates who ran portugal from 2005 to 2007 was praugt in for suspected tax fraud and Money Laundering. Officials also searched his apartment in lisbon. This follows the arrest of a number of highprofile portuguese officials. Vladimir putin says russia is not isolated in the International Community but is blaming the west for the fallout from the ukraine crisis. He also played down the impact of Falling Oil Prices and the weakening rouble saying neither has major consequences for russias economy. But the finance minister says the economy is losing 40 billion a year due to the sanctions and added the impact of the Falling Oil Prices is 90 to 100 billion. However, the rouble has been prizing against the dollar today as you can see the dollar suffering around 2 . Now our very own guest sat down for an exclusive interrue with the chairman of the u. S. Holdings and widely regarded as russias richest man. He asked the billionaire where he sees Investment Opportunities in russia. Translator the problem of russia is not only sanctions, although it became a trend which is greatly influencing the economy. I think its a subjective factor. Our economy is fully diversified and we depend on the energy eximportants in our economy, we depend on mining. We have telecom companies, hightech companies, which have been growing quite well and they have been conquering markets quite successfully, but today it entails certain subjective difficulties. But theres no panic and i am not prone to say panic will appear, that it will come along. Some fears are quite inexplicable. Certain reverse activities on the sanctions, a certain response, but i think everybody will stick to International Law agreements and their promises. Everything will be okay in the end. As a person who considers himself a russian businessman but has worked for several years in the u. S. And european markets, im sure that it is in our best interest to live in peace because there is no bigger global threat. As a businessman, i am distanced from politics, but i wish for this. The subjective elements which influence the problems many the world economy, they should all be elevated by our politicians. And that is my sincere desire for all of us. I want to wrap up just by asking you a question, really, about how you view yourself and other Business People in the context of this sanction story in russia at the moment. Whenever i read anything written by western journalists, they generally say, so far mr. Putins friend mr. Usmanov has escaped personal sanctions. Is the link that theyre making, do you think, appropriate . Does that represent you as you would choose to be viewed . In russia or in the west . Translator i am a citizen of the Russian Federation and am a lawabiding citizen. I do everything by the law thats legal and legitimate. And in terms of taxes in russia and other country where is we invest our money, for example, the United States where we invest in the internet, we are diversifying into china and i have a feeling in terms of my selfperception that we should not use certain stereotypes. I would call upon everyone to remember the biblical saying, dont judge and you wont be judged. If someone does something against the law, theres a time to be liable for that that will come. As for justice, i have suffered at least once in my lifetime. It was quite painful. While i dont think i have another blow in store for me, at least i have done everything which is in line with new conscience, in line with my personality. I could not lose trust from the Financial Market where i am active. Now to get Market Reaction to that, david staples, managing director in the Corporate Finance from moodys is joining us in studio. A great interview highlighting the fact that there are challenges facing the russian economy, but he also highlighted there are opportunities, specifically in the telecom space. What are your thoughts . Well, hes a major investor in telecoms, megaphone is an important shareholder, hes a major shareholder in mining. Those two companies that he invests in are doing well and they have solid liquidity. They can carry themselves through the next year, year and a half. But i think the broader challenge for russian corporates is essentially they have been shut out of the International Debt Capital Markets since march. First because of the fear of sanctions. Then because of sanctions on some. And then the potential expansion of that. So the russian corporate sector looking at over the next 24 36 months could face constraints on funding themselves. And now with the oil price story, the russian government may not have the resources Going Forward that it currently has if they have to support the corporate sector. Before we dive into some of the individual corporates, as you say, of course, the oil prices have not been great. Sanctions have not been great either, but a weaker rouble that he has been saying relies on exports, so the weaker rouble could be the reason for some of this pain. It is for major exporter. Those in the gas and Mining Sector are actually going to benefit from this. Now, these are sectors that require substantial Capital Investment. They do need to continue investing for the future. So to the extent they dont have access to capital to do that, and right now they are sitting with good balance sheets, with cash on balance sheets, but they will have set maturities coming in the next two, three, four years. And unless they can access the broader Capital Markets, the banks will have constraints, markets will have constraints and Capital Investment within russia will have to shrink. Indeed, well talk about a couple of those specific corporates. Russian oil producer bashneft is looking at doubling their profits over the last year. The group shared their profits that were up 5 during that period. But reuters reports the debt central bank chief warned that lenders will make 10 pekt less in profits this year. Dave, well talk about bashneft because the debt race you have on that company, you end that with a positive outlook. Bashneft is an interesting story in russian corporates because it was owned by systema. The chairman of systema is under house arrest and he was forced to give up shareholder because of accusations of Money Laundering and an unfair privatization. So bashneft has been transferred to state ownership. Where will it go next . This is a perfect example of the risks of russia, the institutional governance concern that is people operating, expecting they are operating within the law can find themselves outside of it. You cut the rating on systema. We cut the rating to be one negative from two. After giving up bashneft that was worth billions and the major dividend contributor with substantial cash flow, the risk is what is next for sistema . Is it finished or is the story over or further fines . David, thank you for joining us this morning. David staples, managing director in the Corporate Finance group at moodies. And our attention turns to berlin and paris in talks for france that could include increased labor market flexibility. Thats according to reports in the german spiegel. Stephan is in paris with the latest. Good morning. Reporter good morning. Ahead of the official announcement scheduled for the second of december, they published this weekend what could be the broadlines of this leading announcement. The economy minister of france and also the one of germany, according to the report it would urge the french government to replenish deep reforms of its labor market including more flexibility that could mean probably deep reform of the 35hour week referenced in france, which is something that socialist is always rejected reform. And its calling for a freeze for three years. Of course, it is very difficult for the government to decide on a salary freeze, especially in the private sector, but it would call for a salary moderation. Now on the german side, the reports suggest that they would increase the Investment Plan to 20 billion euros by 2018. Although it would jeopardize the budget balance in germany. The man who contributed to this report says that they didnt have access to the final version of the document and therefore it doesnt reflect what the front German Growth plan, but the fact that some economies are now calling for reform of the labor market probably will revive the debate. Within the social party. Thank you so much. In the retail space, gap is joining up with fashion site zalando. They will offer a range of its clothing and accessories alongside other brands to grow presence across europe. Share in zalando is up, i believe. Well bring in the board, well bring that to you soon, its trading higher since going public. Still to come on the show, its a close call. Will opec cut Oil Production this week in the face of sliding crude prices and pressure from iran . We get one experts view after this short break. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. The asian markets rally with the shanghai composite hitting highs. In europe a new response is better than expected reading on german sentiment. Deadlocked in vienna. A deal for easing western sanctions will be impossible before this evenings deadline. And in anticipation of the 5. 6 billion takeover from friends surges on aviva takeover talk. And he has said repeatedly hes happy with his investment. I am happy with this and will also consider my investment successful. And i dont see today any other perspective. And its another positive day for european markets. We did move higher on friday in backup with encouraging comments from the ecb. And today the stoxx 50 index is higher. Take a look at the european markets. Look at the xetra dax down 10 after the Climate Index did rise in november. This is the start of a turnaround in germanys economy. That, of course, is the question. Heres a look at bonds where yield compression has been the story over the last two or three sessions in europe. Germany is below. 78 . Spain is not showing as falling below 2 at the tenyear u. S. Treasury seeing less yield compression in the last sessions, 2. 33 . We should also point out that the euro continues to weaken against the u. S. Dollar, part of it fueled by Mario Draghis statements on friday, but another thing helping is the business Climate Index out of germany. We are looking at the euro trade below 124 1. 24. The country along with five International Powers with iran will extend talks into the new year as they remain far apart on many issues according to germanys foreign minister. President obama is confident some sort of agreement can be reached. Im confident that if we reach a deal that is verifiable and assures that iran does not have i can persuade congress and the American People that its the right thing to do. Now ali aruzi is joining us from tehran with an update. Good morning, ali. Reporter good morning. Thats right, we have hit an impasse here despite the flurry of activity between ministers. For the first time in american and iranian diplomat sat together in a room since 1979. Iran has to make tough decisions now. Whether it wants to make a deal with america. Traditionally iran always felt what is bad for america is good for iran, but today they seem to be sharing some common answer like isis and stability in iraq. Now, iran has to decide whether it wants to move the revolution further and move ideology to one side. This Historic Deal with america could change the economic prospects in iran drastically. Iran has been on an economic freeze that could be compounded by sanctions, but the majority of the iran yap people here want to see a deal go through. They are behind it and want to see their lives change, but there are hard line attractives in iran that dont want to see a deal. Maybe they wont support Popular Support in the country, they have very powerful coercive forces to get the things done done in the country despite the majority being against them. So well have the see what hammers out over the next few days there. If they can make the deal today or get that extended, they can do this possibly before the gop Congress Takes power. As Henry Kissinger put it, iran has to decide on the nation and this is crunch time. Back to you. Ali arouzi, thank you so much. Well talk more about iran and the talks in see nina. Hadley gamble is joining us in studio. The senior manager from middle east and africa at ihs is joining us down the line. Hadley, we would love to start with you, given irans prix cares you situation, you would think iran would do whatever they can do help revive the economy, but that doesnt seem to be the case right now. You have to remember that mr. Ohani understands this problem coming in with great hopes of fixing the economy essentially as well. So you know these things are in his mind, but you have to remember as ali mentioned, the hardliners in iran have been in power for years and this is something they understand would be a gamechanger for them if the deal is to be reached. To bring you in now, it seems like they have to extend this deadline. Does that mean that the deadline is forever extended if we dont hit it this time around, well never hit it . Under the geneva framework, they can still continue on until january because it was a sixmonth agreement extendable for six months. They have extended it for four instead of six. So i think as we pass that deadline that it becomes a lot more difficult to see concessions given by the iranians without either some more coercive fly applied in the form of sanctions, but that also risks backfiring. They have a tough sell domestically, not just because of the hardliners but because the Iranian Program see this is as a part of national pride. So they need to maintain that image in the publics minds in order to main that taint political credentials. And if a deal is reached and sanctions are lifted, it wouldnt be just a boom for the iran economy but it will allow multinationals to invest in iran. Is that an early assumption . I think the point will be to give the iranians access to get and therefore correct yetting competition for the russian supply. That is going to be pretty important economically. Obviously, hes going to be making decisions in economic terms. But opening up your country to have investments also requires an openness in society and has implications for stability and the way people live. Growth of income, having a solid middle class, these can be very destabilizing political forces. So it is not just the Economic Situation considered by the iranians. I suppose this comes at a moment where in a failure to reach the potential agreement can impact the west relations with another important nation, iran and russia already are allies do. You think this could push them closer together . I think this could push us closer together. You have to remember that the Lower Oil Price is not a good thing for iran. Same thing for russia as well. And the u. S. Is cog any zanizan that fact. But with president obama, it was about dismantling the program and now the rules have changed a little bit. You have to take this to the Republican Congress who didnt like the deal in the begin with and they are not liking this now. Well talk about the terms in the drop in oil impacting the economy. Russia needs 100 a barrel to support their economy. What does iran need . Sorry, was that addressed to me . Yes. I think one of the things you have to consider is that the iranians have diversified their economy quite a boot. They have boosted services and boosted industry. Sanctions have been an opportunity for the iranians to develop a local industry and to reduce their dependence in oil. That doesnt mean they are not heavily dependent on their government budget. But they have created more options for themselves and they have created room for themselves that is allows them some space to maneuver. Obviously, they have been able to develop their economy in ways that make them less reliant on it. And at the end of the day, if theres a deal, it probably by giving much more access to iranian oil reduces prices further. Thank you for joining us, senior manager for middle east and africa at ihs. Were going to get your flash now from the German Market regulator that says it will carry out routine analysis of possible Insider Trading following a recent news story. Well bring you more on that as and when we get it. Hadley, thank you for joining us. Now iran is of course applying pressure on saudi arabia to back an output cut at the opec meeting. The countrys agency site says he would encourage the largest block producers to shift given the impact of drop in brent which has lost about 20 over the last three months. But the ceo shares the largest problem in the economy telling cnbc he thinks oil prices will eventually rebound. The population is 3 growing every year on year. Thats going to take a little bit sooner or later. So this shortfall in oil prices, i think it will be temporary. The question is, when will it be gone and they are waiting for the oil crisis. To talk about oil, the senior director and Global Economy strattist at bank of America Merrill lynch is joining us. Traders say theres not much focus on the Holiday Market given its a holiday for the u. S. , but on top of the talks in iran, theres a chance we will not come to a consensus this week. Well, this is definitely one of the most expected opec meetings in years. If you think about it, opec has not been hit as a cartel. And in 2009 the system effectively ceased to insist. I and other open members have break even prices that are above the current oil price. They have an interest in cutting, but at the same time this clearly is a flight for market share. Theres also the view that while there will be a cut in opec production, and he said it will be an announcement of a cut of a half Million Barrels a day, they will likely be reluctant to stay competitive and keep market share. And keep producers in the u. S. From expanding too quickly. Savannah, i suppose you say the individual members of opec want there to be a cut and dont want to bear the brunt themselves. Do you think thats to be the cops consequence on thursday . I do agree this is part of what is happening here. And history is of course very in the early 80s. Saudi arabia cut from 9. 5 Million Barrels a day to 3. 5 million. They were the only ones cutting, and because everyone else kept increasing production. They failed to read effectively and increase prices. This time around, they equally were reluctant to they did not previously have a quota to increase production. So this is what is happening here, but more importantly we should point to the fact that the the price decline of close to 30 has gone way beyond the actual weakening fundamentals in our view. The inventories in the oil market are still quite low, they are low despite the year average. When you look at pine spread, so the language priced into the market, its actually not that steep at around 50 cents and it went up quite a bit. The price decline should generate and create a big boost to consumption, effective in our views. It is very much overlooked. Well talk at our iran if sanctions are lifted and iran is able to boost oil. How much of a farther price decline will we see . I think theres a small probability that this is what is going to happen now. We think a lift in sanctions is quite up likely at this point. Or a deal with iran is quite a nike. If it does happen, i would say iran has found a way around the market. Secondly, i would point out there has been some real damage to the iranian oil infrastructure. After years and years of underestimate and decline rates, we are really doubting that iran will quickly be able to lift its producti production. Thank you so much for your time. And in this weeks trader poll, its all about oil. Will opec cut outfit . Yes or no. Head to traderpoll. Cnbc. Com. And straight away you can start to see the trend and have your say on twitter using trader poll or tweet us cnbc wex. The miserable defeat to rivals, manchester over the weekend. And alicia osmanov is beginning to question the future. Translator this is a strange position when the second biggest investment who has more than 30 decides nothing. And its frustrating, although i have a respect for the world football. But we have a Russian Proverb which goes everybody makes mistakes. One of the greatest coaches in europe is not willing to easily admit to his mistakes. Thats the word from alisher usmanov. We asked if he was recently happy with arsenals latest fall. Translator i can say arsenal is sometimes a pain as every dream. Potential for the team is there, but theres no critical evaluation of the stakes. And they need to acknowledge them. Because no genius can retain the same level of genius if they do not acknowledge mistakes. Its only when you add mitt to your mistakes that you can get rid of them. I wish this to my club. Nothing bad is happening apart from repeating the same high result. If we were to keep being the middle of the champions league, but we only lose the first play of gains, so some may be happy with that. But as a shareholder, i am not. The fans are disappointed. Some of them are saying its time for arsenal venga to leave. Does he still have your backing . Translator first of all, i decide nothing in this matter. This is a strange position when the second biggest investor who has more than 30 decides nothing and it is frustrating. Although i have a Great Respect for the president of the club. As to arson venga, hes one of the greatest coaches in world football. But we have a Russian Proverb which goes, even an old lay the wi lady can have a roof falling on her. I know as you age it is more difficult, more challenging to accept ones mistakes. Maybe its a problem today. He is a great man, a great coach. He had great victories. And he has to have an opportunity to secure the place, which he and his team aught to have. I think men who create winners have to be winners themselves. And i wish him this. Another question is how to make this work . I wish him all kinds of success. You have a significant stake. You still have no board seat as far as im aware. I dont need no board seat. Does the board have any reason to failure . Is there any reason that the board shouldnt be warming to you at some stage and be more willing to meet you on this issue . Translator there has been so much speculation about this. The board is responsible for everything in the club. I have a very Good Relationship with the chairman and other people. And i wish them success, but i have never had a place there. Nobody can ban me as an arsenal fan and ban me as the second biggest investor of which im proud of. I have no plans apart from wishing some of my successes to the club. No cop that dictions but i also express my opinion. Just to be very clear here, if the stake that came available for you to become the majority shareholder. You would city buy it today and would never sell yours to mr. Cronke. Translator i dont discuss Business Plans but mr. Cronke says he considers this a good business. Im happy with this and also consider my investment to be successful. And to date i dont see any other perspective. All right. The pressure is on for soccer team arsenal to deliver. Of course, this comes after a critical match this weekend. A arsenal is how this works. He really hit the nail on the head there because its been eight seasons of underwelling performan performance. He says that venga is finding it harder to admit to his mistakes, but eight years in a row he has to come forward and start spending money or the ownership will have to put a new manager in place and are prepared to do that. Do you think at some point fans will start to look to other teams to support if we dont see a change at the top . Of course not, seema. We are loyal to the club and relevant to performance and how disappointing it is in the shortterm. A true fan. Of course. But we will not start turning against mr. Venga, which we have not done so quite yet. Other areas of sport, louis hamilton is the fourth british driver to win two titles after a victory in abu dhabi. He was dubbed the desert jewel. When he crossed the line, hamilton was congratulated over the team radio by none other than prince harry. Thank you very, very much for making the British Public sweat. Woohoo world champion. Oh, my god, i cant believe it. Thank you so much, guys. But it was not just the u. K. Celebrating sporting success over the weekend. Roger federer helped switzerland to the title after beating frances player in a 31 victory. He dedicated this win to his follow teammates including stop rorenka who he met on his way to london. The impressive resume includes 17 grand slams and an olympic gold medal in the doubles. I love the fed. I think the term fed should refer more to Roger Federer than to the central bank in the United States. And more on the sporting front. Pro athletes have been known to make acrobatic moves but none may be better than this during sunday nights Football Game between the new york adjacents and the dallas cowboys. Odel made this onehanded catch while falling backwards and the defender pulling on his back arm. The play has gone viral with the social media calling this the greatest catch in nfl history. However, the giants ended up losing 3528. Chris hollings worth said this is the greatest catch he has seen. Do you agree with that . What other Sports Events standout for you . Get in touch with us. Teddy tanell tweeted in to say, we just saw the promo and the new matrix movie is a catch. Hes likening it to the catch. Let us know what you think the greatest sporting moment is. If its that catching one or what is your view on this . Aside from my own sporting accomplishments back in the day when i was a tennis player, i had the same 2008 wimbledon final when one of the longest matches ever occurred and it was a beautiful competition between the two stars at that time and yourself. This catch is by to dell back so i remember that back in 2001 which clenched world cup qualification. And still to come on the show, how should Bond Investors play diverging Central Bank Policy in china and the u. S. The next guest has three top tips to stay tuned. Find out what they are. And happy monday morning to all of you joining us from the u. S. Welcome to Worldwide Exchange. Im seema moody. And im wilfred frost with your headlines around the world. Major indices continue after five straight weeks of gains after the shanghai hit a threeyear deal as china leaves the deal open to further rate cuts. And alibaba over facebook. Russias richest man tells cnbc he wants to invest more money in the market but hes less confident of his earlier bets. I admire facebook but im still at advantage of facebook because we cannot make all the money. We need to keep it for somebody else. Deadlock in vienna. Officials try to tame Irans Nuclear ambitions in return for easing western sanctions that will be impossible for this evenings deadline. And tensions in ferguson, missouri, as they await the verdict on the unarmed teenager Michael Brown that was shot dead by a Police Officer. Youre watching Worldwide Exchange bringing you Business News from around the globe. It may be a short week in the u. S. Because of thanksgiving on thursday, but that doesnt mean its not a busy week for global markets. We have a read from there gdp from the u. S. And inflation rate from japan. A big opec meeting will determine the price of oil Going Forward. I think there are five executive gains in the u. S. Last week we hit 3 of returns. Not a strong day today. And it looks again to be very this is quite a big difference in the market. The Economic Data continues to be a point. Should markets be rallying at this point . We got positive day out of here. And that allowed european markets to open up slightly. Well take a look at the u. S. Markets trading after another recordweek for the s p 500. Were looking at the index of just about 5 points in trade. The dow jones is up 28 points and the nasdaq is near 14. 5 higher. It can go up seven. We have a read from the gdp from the u. K. As well as the u. S. That can play a role in how stocks shape up this week. Taking a look at the index, eight points on the day. The focus this week or today at least is that efo read that is up. 60 in todays trade. France and italy showing green at the cac 40 up. 03 . A look at the ftse looks like a little pattern baldness down 0. 5 points. If lets look at the bond buying alongside with equity buying. This is not based on fundamenta lrl things, but less yield compression in the u. S. Than europe. Still 25r7bd. 3 there. And in germany we are now at 9. 78 . The u. K. Is flooding with 2. 17 . In spain we fell below 2 . So significant yield compression on european bonds. Lets have a look at 4x. The yen continues to weaken against the u. S. Dollar at 1182. This weakened off the back of Mario Draghis comments. And the aussie has fallen on the bank of china rates being cut. And for more on the asian markets, sri is in song above well, a surprise rate cut by the chinese central bank. Like low wristtop certainly outraged the shanghai composite. Wednesdayed this. There was a wobble in the sector because of the interest in margins, but they came back fighting to regain composure on the settlement view that there could be a reduction in the nonperform nonperforming. Investors were troubled by the fact that we saw this relatively aggressive action. But is that a sign of weakness . I will leave that for you to chew on, but we can say with a degree of certainty, a lot of economists are expecting further follow eating in 2015 to really consolidate growth around 7. 5 . And the japanese public markets, theres a Public Holiday in japan todd. But as we get close to middecember, the election and referendum if you will, expect to see choppiness and a little bit of twoway volt in the equity market. Back to you in london. And Central Bank Policy will be the topic of discussion this week. The dallas official fisher does favor the early rate hike in order to stay ahead of the improving u. S. Economy rather than to force a tightening of the easing policy. He wants to keep ages low for a considerable amount of time. The chief Investment Officer, a fixed income at jc poor michigan are standing by. It is growth and inflation. Both of those have disappointed this year to the down side. So you have Global Deflation happening and growth, even in the u. S. , which is the stand so thats the rally in bond. How many people want a highrise in investment but thats not what we got. When you look at it, on friday in china, which is a beacon of growth, growth is near 7 this year, they have been forced to cut reality Interest Rates. When you look at the Central Banks later, they will let you go later than sooner. You think there should be further yield compression between that and the german yield . The bonds are cheap. You heard it from me now. You look at spanish and italian yields, those go half a bit lower from where they are now. And when you look at the totality of the eurozone bond market, you have 50 of all yours and government buildings. You have an activist central bank with banks starting to do reforms. The bonds will be cheap and go lower. As we get into 2015 . It will. Thats the risk you want snfs or thes for spain and italy when you look more broadly there is some stand. Now do we want to buy her debt this morning given the fact that it has a dangerous situation. What youre seeing in italy is a government committed to at least reform. And when you look at the evaluation refuge to a german bond. Relative to a bond that has a negative yield. You have some yield there. Youre just about to say that you think the european sector should be called medium sector. The riskier bond markets is certainly attractive. The problem is that the your when you think of the credit quality of a lot of the european corporates, they in pretty good shape. The other thing that well support it Going Forward is the ecb european focused companies. So youre looking at absolute trade going into next year. Yeah, they are. When you look at the bond markets, thats an area where they should be more open. Chief Investment Officer at jpmorgan asset management. Thank you for your time. And now heres a rundown of what to watch this trading day in the u. S. The november Flash Services pmi out at 9 45 a. M. Eastern with a handle of earnings out after the bale. A lot of tech stories. And the stars are alining for stars. It has drawn interest from cbs running a mix of movies and original series including outlander and the black stars. So far trading today in frankfurt up 5 on the news. Movie goers flocked to see the latest exploits this weekend. The hunger games topped the American Box Office with the second installment of catching fire that came out last year but is still the highest opening film this year. The movie that splits the last book in the trilogy in the series. And going public. How much did alibaba make on his investment . Well try to get you an answer. Can i ask you, alibaba, how much money did you make and do you still have a stake . No. Just give me the percentage upside then . Ah. This is not modest in this interview. Welcome back. Lets give you some headlines, u. S. Futures indicate a higher open after chinas rate cut since chinese stocks are at a threeyear high. And the west is unlikely to lift sanctions on iran as a new deal looks for new talks in december. And residents in ferguson, missouri, wait to hear if the Police Officer who shot the unarmed black teenager will be charged. Billionaire investor Alicia Usmanov was in alibaba as well. We caught up with him to see where he sees the greatest opportunities now. Translator i think, and dont laugh at me, im not such a big guru, not such a big expert, especially in front of cnbc. No one can teach anyone, but i can share my opinion, my feelings, given my experience. The feelings which i have elaborated on at times. I have a presence in the u. S. Market, in the chinese market. We invest a lot in europe. In russia we also have large, have made large investments and they are primary to us. I think the trend in pressure commodities will not last forever. The price of Technological Companies will grow year by year, but diversification of their prices will depend on which stage the company which gives more costs less as an example, one of the investments in china, we invested in the company in which we have recognized a future technological giant. As to the regional preference, i think a big attention should be given to the indian market. Now we are looking at this. I think the emerging markets are still undervalued. Can i ask you, alibaba, how much money did you make on alibaba and do you still have a stake . No. I dont think it is right from what you pay in the investment now. Let me just get the percentage upside then . Theres no modest i think more than 500 , you know . More than 500 . Over timing with investors. And do you still own the stake . Of course. So you have sold some and kept some. No, we didnt sell anything. We trust. Do you still have the same confidence in facebook now that some of the subscribing numbers are slowing . I am i admire him for his book, but i feel like somebody else. The Alibaba Investment is up 500 he said. Lets talk about alibaba. Mike butcher, the editor at large with tech krun. There are a lot of Global Investors monetizing off alibabas ipo. The question is Going Forward, what are the Growth Prospects . We have been having this debate on Worldwide Exchange for quite some time, does alibaba have a brand to resonate with consumers outside of china . Well, i have a bride who bought her Wedding Dress off alibaba the other day and she lives in san francisco. I thought a lot of the people are tired of ebay, for instance, and are familiar without being invested. I always get this wrong, the taobao marketplace where it plans to lawn Ch International markets and in the english language. If it gets right and the marketing right. I think well make see one consumer in 2016. You dont think transparency will be a problem for the european consume her . Not particularly as long as they punch the numbers on the european headquarters, or for instance transparency on data or privacy. Things like that. Something which a lot of western companies have not particularly done brilliantly over on recently themselves. And a past investor in facebook, it was a little skeptical of what the prices will do. Do you know why he said the emerging markets are big, yes, china is big, and he also flagged up india, which is exactly why india is on the ballot right now. And the third thing is that i think hes made a mistake because facebook is growing and emerging in the market. And it has zero access policy in africa, for instance. Ze zero. And how they do on alibaba or ecommerce, they do it on social networks. In the email in the connection of the new era, im not sure that hes got quite the right strategy. What about rising competition from the other social Media Players including twitter in the emerging markets, that is. Very good point. Twitter still seems to be working quite hard at what hes doing, but facebook is to the inside. Doing so well, it has a lot of advertising capacity left to be sort of unpacked. That said, twitters fantastic and it will also be great in the emerging markets as well. Look at what kind of things they look at the arab spring, for instance. Theres a debate over whether twitter is a great platform to continue with the journalist, but this still isnt the same place for them to play a role in mainstream. Mainstream. If you look at instagrams growth as a picture social network, it is very suited to consumer markets. But facebook, twitter, i would go long on facebook. Mike, thank you for joining us. Editor at large with tech crunch. Well bring in flashes coming out of the area. Theres a potential transaction invol involving both u2 and the other. They remain confident on these plans but are not making specific comments to say they have expressions of interested shareholders and this came on the network of one pbl discussion. We have to make sure that our school is up 2. 2 on the back of it. Still to come on the show, live on the ground in the Fatal Shooting of Michael Brown. Thats coming up next. The waiting game continues in ferguson, missouri, as a grand just reconvenes today to determine whether to indict a white Police Officer in the shooting death of an unarmed teenager this summer. Nbcs jennifer berklund is joining us where the jury is supposed to meet. Jennifer . Reporter the Supreme Court will meet her again this, mo. And its been closely watched because the rumor mill was putting out all sorts of information, which turned out not to be true because they are meeting here today. Which means they still have liberations to do. They have been meaning for three months now, and its a grand jury set to expire some time last month but they have been extended all the way through january. So the idea that a decision is imminent, you know, its taken hold. There have been some cues that the noise from Law Enforcement on 12hour shifts and gearing up to deploy in some of the areas where they expect to be protests, thats the latest here from the ground in clayton, missouri. They are hoping, hoping for the best but they are planning for anything that could happen here any time. Thank you so much for that update. And to leave you with a look at how futures are trading ahead of the opening on wall street, it was another record week for the dow and s p 500. Both closing at new highs on friday. But well be back into this week with the dow industrial taking up. The nasdaq is trending up about nine points in premarket trade. What are you guys doing . Yoga, its supposed to make us more productive. Better mind and body keeps us efficient. You guys have misread the memo. This is the new lenovo yoga with the intel core i5 vpro processor. It combines the productivity of an ultra book with the touch benefits of a tablet. And its custom configured by cdw. So we can stop doing this . My head hurts. [painful grunts] 5 30 a. M. In new york. Welcome to Worldwide Exchange. Im seema moody. And im wilfred frost. Five straight weeks of gains, this after the shanghai hits a high after china leaves the door open to further wage cuts. And alibaba over facebook. Russias richest man tells cnbc he wants to invest more money in the chinese ecommerce giant but he says hes less confident on one of his earlier bets. I admire facebook but you cannot make everybody. You have to keep this for somebody else. The west is looking to Irans Nuclear deal but official says they will try again next month. And tensions are high in ferguson, missouri, as many await the verdict as to whether the Police Officer purposely shot Michael Brown. If you are just tuning in, thank you for joining us on Worldwide Exchange. The s p 500 closing at record highs on friday. Five straight gains for the u. S. Market. And this week the big news will be for the commodity markets. The opec meeting on thanksgiving day. The question is if the cartel will cut production. Analysts split over the outcome. Right now were looking at the Dow Jones Industrial up 30 points in premarket trade. The s p 500 up just a couple points. And the nasdaq which has been hitting new 14. 5year highs moves to the upside about eight points in premarket trade. Keep in mind, last week it was energy and industrials that outperformed. So were starting to see a rebound in the Energy Sector after it has been a significant decline in Energy Stocks due to the drop in the price of oil. Now, taking a look at the european markets. The encouraging comments from mario draghi on friday. Were looking at the xetra dax higher. 70 thanks to the better than expected survey out of germany. The cac 40 is up 40 points. And the italian markets are seeing green. Keep in mind, the ecb official says you should not want to see effect of policy measures before taking new ones. Theres an indication from mario draghi that well get full quantitative easing but these also suggest we may not get that yet. Engage in the stocks across the eurozone that move higher out of germany right now. We are looking at the index up 1 in todays trade. Wilfred . Seema, thank you. Indeed, european equities are up, but so also are bonds. Yield compression, the story of the last few trading sessions in europe. In germany you can see we are at 0. 78. And in italy, 2. 18 . And in spain, we have fallen below 2 on the tenyear yield. Seema, what this is saying is while equities go up, bonds have gone up as well. This is just expectation well get more loose policy from the ecb, giving equities a bit of strength and also people going for the safety of bonds. Now we see the spanish tenyear yield dip below 2 as investors go on the hunt for yield. Right now you look at the german bond that should be a safehaven for their money, but they dont know where else to put that. You are not getting that much yield in the german bond. So youre looking at investors trying to assess other opportunities for further yield. Thats the fundamental difference at the moment in europe and the u. S. The u. S. Is at least responding to positivity in the fundamental economy. Europe is responding to potential action. And another big mover this week or something we are watching closely are discussions with iran in the last half hour. Reuters has reported that International Powers in iran are set to adjourn nuclear vienna. Iran is looking to seek sanctions lifted against it in return for curbing its nuclear program. Despite pessimism going into the talk, president obama is confident of the agreement. Im confident that if we reach a deal that is verifiable and assures that iran does not have breakout capacity, that not only can i persuade congress but i can persuade the American People that its the right thing to do. Now nbcs ali arouzi is joining us live from tehran. Over to you. Reporter thats right. It appears the talks will wrap up in vienna. Theres been no comprehensive agreement but they will talk next month to show it has not been a comprehensive failure. Oman is strategic locations and instrumental in releasing the three u. S. Hikers arrested in iran in 2009. And oman played a pivotal role in backtalks between iran and china before the iranian government started negotiating on the nuclear talks. So we are not seeing a complete breakdown but iran also can expect to see any sanctions relieved during this period, which is something they wanted. Its something investors can bring home and show the elite majority here tangible results. Thats not going to happen but they are going to continue talking to see if they can get through this impasse. The Chinese Foreign minister arrived in vienna today to say there are major and technical problems but also said that he was sure resolution would be made some time in the future between iran and world powers. Both countries have a lot of stake on these talks around iran once again, get rid of sanctions, bruce the policy. And the news agency cited an interview where the oil minister said he would consider the largest producer to start shifting output starts given the drop in the oil price. Of course, the oil price has been very pronounced so far this year down 21 over the last three months. Bouncing back fractionally today at 80. 6. Joining us now is tim resbin, we have been looking ahead to the opec meeting on thursday as a potential fall to the oil price in the shortterm. Do you think it will be that . I believe that investors shouldnt expect too much from this meeting. The rumor monogoring and speculation that is got on the a fevered pitch. We are now tracking opec members, who they are traveling with, who they are speaking with i wouldnt expect and easy solution to that would really support oil at this point. But if the cartel Oil Production does cut, what do you see happening . I think for the u. S. Crude oil market, the worst Case Scenario will be taken off the table. At the same time, you have the iranians partnering with the russians against the saudis. How do you factor that this for what to expect this thursday and what happens to the price of oil from there . I think it is important to know we have fractured opec cartel at this moment where iran and venezuela certainly have their own initiatives and dont have the backing of the large sovereign wealth funds that saudi arabia or kuwait has to support them. So that shows you how fractured this is and whether that opec wishes to cut production to really the big byproduct of that will be supporting wti pricing. Thank you. Things are fractions at the moment but thats shortterm in our focus to say that. Over the last five to six years. Opec has done a good job of this. It is important to know the jeospring has done a lot to keep a us spread. It was 20 or more a barrel for long stretches of time. But there are other factors that have happened to the oil policy. Tim, thank you for your time. All eyes on the opec meeting. In this weeks trading poll, will the output be yes or no . You can also tweet them. Well look at the other top stories breaking at this moment, shares in bt are trading higher after it is in talks to buy the u. K. Unit 02. The British Telecom group says however discussions are in a highly preliminary stage and can no certainty that a tra transoperator is okay with a possible deal. This could be a big story, because bt has moved into a fixed line telecom in the u. K. And now if they enter the new fashion side zalando. This u. S. Company will offer a range of accessories along with other brands to grow with presence across the board trading higher. And questions being raised over who is behind advanced computer virus used to spy on governments and companies for years. More on that story in just a couple of minutes. Test louisiala shares in fo they are in possible talks with bmw to develop Battery Technology or charging stations. In an interview with a german company, tesla will have a battery plant in germany in five or six years meaning the plants in nevada, germany and china. Analysts said teslas expansion could be a big opportunity for the company. Take a look at the shares up 61 year to date. What about bmw . Shares up 3. 4 so far in 2014. Wilfred . Have you ever sat in a tesla, seema . I have. Its a great experience. I sat in one for the first time last year. Not just technologically advanced. But so quiet, too. Indeed. Moving on from tesla. A new and sophisticated Security Threat has been uncovered that may have been lurking in computers all over the world for many years. Kate rogers is at hq with more. A report was put out this weekend saying they have uncovered a new and advanced malware. The virus appears to have been designed by government and has been lurking in computers since 2008 spying on private companies, governments, Research Firms and individuals in several countries. Symantec says the malware disappeared in 201 1 but a new verse appeared last year. More than a quarter of the attacks were in the Telecom Sector while other victims were found in the energy, airline, hospitality and research industries. They say, quote, regin displays a level of technical competence rarely seen. Its capabilities and the level of resources behind regin indicate that it is one of the main Cyber Espionage tools used by a nation state. This virus has been found in ten countries, mostly in russia and saudi arabia, but in mexico, ireland, india, afghanistan, iran, belgium, austria and pakistan. Symantec says the malware uses multiple levels of encryption and the company can communicate with the hackers that deployed it in several different ways. Even when its detected it is very hard to figure out what aboutly what it is doing. That makes regin similar to the networm discovered in 2010. It is widely believed to be designed and used by the u. S. And israel to disrupt Computer Systems at Irans Nuclear facilities. Back to you. Pro athletes have been known to make acrobatic moves, but none may be better than this. During sunday nights Football Game between the new york giants and dallas cowboys, the giants rookie receiver to dell beckham jr. Made this onehanded catch while falling backwards with a defender pulling on his arm. Some are calling it the greatest catch in nfl history. However, the giants ended up losing 3128. All for that. So weve been asking this, is this the greatest catch you have ever seen . Well, we have been getting your tweets in. Teddy tweeting in about the catch to say, we just saw the promo for the new matrix movie. Sick catch. Thats one way to look at it. And dean tweets us to say, the most memorable moment is jonny wilkersons catch to win the rugby cup. But he did say perhaps to dell had super glue on his glove to make that catch. Do you know what hes talking about there . No, i have no clue. In 2003 we beat australia, world cup. A long way from that right now. We won yesterday. It sounds like a great moment. Indeed. Now, before we head into the break, heres a reminder of how the headlines are looking at this hour. U. S. Futures indicate a higher open after chinas rate cut sends chinese stocks to threeyear highs. The west unlikely to lift sanctions on iran as a nuclear deal looks impossible. Reports suggest talks will resume in december. And residents in ferguson, missouri, wait to hear if a policeman who shot the unarmed teenager there will be shot. Welcome back. 3 of gains for stocks. This is on expectation we might see ecb action to follow Mario Draghis speech on friday. But also we had positive Business Sentiment data out of germany allowing it to go up. The ftse 100 is flat. Not enjoying the rally today. Seema, what do we expect in u. S. Futures . Up indicating a higher open and maybe a shorter week in the u. S. Due to thanksgiving, but that doesnt mean its a busy market for globals. We get a read on inflation and unemployment figures out of japan. Right now the nasdaq is looking higher by ten points. The Dow Jones Industrial to close at a record high up 30 points in premarket trade. Now well also give you a rundown of what to watch this trading day in november. Flash services pmi is out at 9 45 a. M. Eastern time. Theres just a handful of earnings reporting after the closing bell. Nuance communications, brocade, palo alto and workday reporting. I want to give you headlines out of russia. The economy minister says the government is in talks over giving the gas giant up to 100 billion roubles in Additional Capital from the National Well fund. Gas prom has been under pressure given the decline in oil and the weakening economy in russia. Were looking at the dollar weakened against the russian rouble down 2 . Now investors shouldnt play exchange rates. Its a dangerous game and they are at risk of, quote, falling down. Thats the view of russias richest man alisher usmanov. Heres what he said about the bond markets in the year ahead. Translator i dont think the next year will be easy for all of the Global Economy apart from the usa where we will see an obvious trend towards growth related to the growing influence of cheap energy on production. On the way manufacturing is being dealt with, and this is one of the catalysts of why the American Economy will always influence the Global Economy. As for the european economy, which is being driven by germany, i have no doubt the growth will continue. But too many resources have been taken over by members of the European Union who need elementary help. They will account for an increasing share of the european expenditure. And there are of course crisis such as greece, italy, and we have some signs of crisis in france. They will play an adverse role. As for the developing markets here, we have a challenging situation. Growth in the Russian Federation is slowing down. There will be some slowdown in the chinese economy, but this will not become and unlikely effect demand. And in this environment, everyone will choose the least expensive method of manufacturing while receiving the biggest possible profit margin. This will give us an opportunity for the economy to face the crisis. Wlrt. Now well talk about the u. S. Markets and what to expect in todays trade. The author and founder of averagejoeoptions. Com. Tom, well talk about the opec meeting out on thursday. Crude oil has lost 30 of its value since june to around 80 a barrel. Do you think that puts more pressure on opec on the cartel to cut production . Good morning, seema. Good morning, wilfred. You know, i think they are probably going to even talk about increasing production. I think they want to drive prices lower. I think they want to create trouble with us doing our own drilling here. I think that they want to keep pressure on russia. So i wouldnt be surprised if they want to increase production here. Im not looking from the cut, im looking to stay stagnant or to talk about increasing production to try to drive prices lower and put people out of business. So this is a positive thing for the u. S. , right . Because oil prices are only weak because of excess supply. Therefore, this should be something that not only helps the consumer but pushes markets up further. You know, its a very tricky question. As you look at the overall economy, we know that the stock market is at record highs. We know that the wealthy are getting wealthier, but the real issue still here is the middle class. The middle class is still in recession making less money than they were making in 1995. So 20 years were making less money today than we were then. So the Lower Oil Prices could be a sign of a weakening economy versus the ability for the middle class to go out shopping, driving and doing what they need to do. So theres a lot of problems. Now we hear about a potential tax cut as more money in your pocket. Well see how christmas treats us this year, but im not very optimistic on what christmas is going to look like. Author and founder of averagejoeoptions. Com. Thank you so much, tom. The consumer will be in focus with the Holiday Shopping season. Consumer confidence is as a sevenyear high. And gas prices are down 10 over the last year. And the european markets are strong this year. Will the u. S. Follow this lead . For that and much more, join squawk box in a couple minutes. Im wilfred frost. Thank you for joining us on Worldwide Exchange. We are hear bright and early tuesday morning. Im seema moody. Thank you for watching. Good morning, its the cartels call. Opec is preparing for a key meeting this week with oil prices plummeting to 60 a barrel if the group doesnt cut output. Also, ruling the sky. The faa set to propose new regulations for drones restricting commercial use. And its a big bet, outspoken Dallas Mavericks owner mark cuban predicting sports gambling will be legal in the next five years. Its monday, november 24, 2014. Squawk box begins right now. Good morning, everyone. Welcome to squawk box. Im becky quick along with andrew ross sorkin. Joe is enjoying time off today. Well look at the three big stories to watch today. Stocks soaring in asia overnight with the shanghai composite rising 2 to touch near a threeyear high because the markets there are just getting their first chance to react to fridays surprise rate cut in china. Also, reuters are reporting that china stands ready to cut rates again loosening restrictions on fears of deflation. Gasoline prices sliding once again. The lumberg survey puts the average price for a gallon of unleaded regular at 2. 84 falling 10 cents in the last two weeks. Thats down 88 cents from the peak of 2014 and off about 41 cents from this time a year ago. Also, tonight is the deadline for a Nuclear Agreement between iran, the United States and other world powers. By most reports, tehran is expected to miss the deadline forcing them to seek an extension. Reuters are reporting that part