And over 1 Million People are displaced as a powerful typhoon moves across the philippines suspending the bond markets as well as the currency market. Youre watching Worldwide Exchange bringing you Business News from around the globe. A very warm welcome to the show. Lots on the agenda. Well talk europe and china in a couple minutes, but the u. S. Dollar continue this is rally. In november and december, we think, are people looking backward or will they be looking forward at the structural elements for the stronger dollar. It seems like the latter. The strongest unemployment gain in 30 months is providing fuel to the u. S. Dollar. We were talking about it when we first started on Worldwide Exchange at a fourandahalf year high. Now close to an eightyear high. Definitely a resurgence. The question is how far can it run . Well discuss that throughout the show. But the ecb Council Member says he sees weakening in the eurozone economy and calling it a weak spot in the world economy. He cited falling inflation in the First Quarter and a slowdown in germany as the reasons for this. Industrial production in europes biggest economy fell in october. Output grew by 0. 2 in germany comparing to the forecast of 0. 3 and a revised 1. 1 in september. The German Economy Ministry Says Construction Activity may have bottomed out after a weak summer but cited a drop in energy output. Angela merkel raised the pressure on italy and france to push ahead on reforms to bring their budgets back within the eu rules. A senior italian official told reuters it is regrettable that she should not hand out marks to other eu members. Standard and pours cuts italys rating to just above junk. They say low inflation and a difficult Business Environment are the reasons. Now we just got flashes out of fitch, the ratings agency. Saying pressure on banks ratings in 2015 are expected to support changes. Another issue for ratings changing coming up. So fitch is saying the banks will be under pressure throughout the next year. Now lets discuss all of these stories and more with charles deeble, and we have adam myers with us as well. Well talk about the downgrading with the big bond market for italy to support. You have to remember 65 of the italian bond market is internally financed and they dont care about the credit rating. Obviously, it does have an impact for international investors, but its still investment grade. So its not really going to affect the behavior of the other big group of investors, which is effectively foreign Central Banks. So i think for the time being its okay, but obviously there is something of a threat that if there were a further downgrade below investment grade, that becomes much more of a problem. What should the market give matteo renzi time to be implemented and thats one reason investors should stay on the sidelines to wait for the economic gains to continue. Well, the reality is this is driven by the ecb policy spreads between italy and germany. They are going to be a function of whether the ecb does qe and further spread compression. Not so much to do with the credit rating, but without a doubt, Structural Reforms take a long time. And they are not an instant fix. They are a longterm fix. If hes making progress, then the markets will give him the benefit of the doubt i suspect. Well bring you here to talk about where the euro stands at the moment. Is it structurally issues in reforms in italy and europe, or is it increasingly structural . It is increasingly structural. Im with charles, if the bonds were to jump down a credit rating, then we would see the previously sticky flows move away from the euro, but we are not there yet. While the sovereign qe remains in the air, whether you believe it or not, that would keep the euros relatively supported as we move to the structural negativity in 2015. We got through the ecb meeting last week even though at the time mario draghi overwhelmed investors. In the end, the stoxx 600 ended in positive territory so people are slightly positive about the situation in europe. They have seen qe coming. Thats the you know, the debate was how many decsentors were there. I am talking about the objective and say it would be illegal for them not to, so hes thrown down the gauntlet to say you are ideologically opposed to qe, but if we are going to be well off the target, you are legally mandated to do just that. So that is the kind of mandate or the glove that hes thrown down in front of people like this and certain other members of the council. Are you expectations for ecb action, will we get qe . That doesnt mean the euro cant fail, but i take japan case in point, there are large investors beginning into the foreign inflows but they are all hedged. What is your target . We are forecasting 120 by the end of next year, so we have a very conservative prediction from here. Thats purely because Central Banks are continuing to recycle their dollars into euros next year despite the structures we have discussed. Thank you. Stay with us. Overnight greek lawmakers narrowly passed a 2015 budget. After a fiveday debate, 155 lawmakers voted in favor of the budget which promises a minor budget of 0. 2 next year. The vote came after a riot in athens and other cities saturday night. Nearly 300 people were arrested after thousands took to the streets on the sixth anniversary of the Fatal Shooting of the unarmed greek teenager by police. As we just said, investors seem to shrug off an underwelling ecb statement from mario draghi last week. The stoxx 600 is finishing in the green giving up a gain of that so far in todays trade. Well look at the stoxx 50, continental is down. 45 . Individual markets, where is the strength coming from . The ftse 100 is down. 66 . The last week or so its heavy Energy Dependency meant its underperformed. Germany is down. 33 . France is down half a percent and italy is just below flat. Well look at bonds. We have seen yields tick up a little bit over the first few trading days, the first week or so in december in the u. S. We kicked off near 2. 34 . And the yields are up in europe over the last week. Germany is now getting closer to. 08. And italy is near. 20 . We are less confident we are going to get easing in europe. And in the u. S. , slight more confidence in the outlook leading to a little bit more of a risk on trade, particularly that jobs number on friday better than expected. And well look at the top of the show with the u. S. Dollar continuing to see a strong ride against the euro at 1. 226. That is up 0. 2 . And the euro has given up a little bit but well over the 120handle. The yen is looking at 121. 12 at the moment. The the sterling is flat. And the u. S. Is moving near 1 to 2 with the rouble. In fact, it did strengthen on friday going back the other day which is the trend its been on the last few weeks. 53. 4. The rouble is down 1. 6 . Well check in on markets in asia. Samantha luring is in singapore for us. Good morning, sam. Reporter good morning, wilfred. We are just looking at some of the stocks in the Southeast Asian markets all closing in the green. In fact, if you look at japans marketing managing to eke out again after hitting a 7. 5year high today, on that end the revision is down for growth negative 1. 9 year on year taking the shine out of that market day trade. China is confident crossing the 3,000 mark for the first time in three years, but keep in mind this mark is still 50 off its 2007 high. Because we are still having weak data on that, and that is supporting the theory they will still get more support coming through from the pboc. You have weak growth figures on the export said, import side, negative growth figures there. So youre looking at weak domestic demand. A problem that beijing still needs to address. Looking at that end, value trade in china, 960 billion yen. Thats slightly off the 1 trillion mark that we hit last week friday with the record high. And in australia today, we saw that market managing to rally off the back of the bank share rally. A Financial System review coming through today showing that banks pretty well fit and capitalize in australia. But when we are just looking at what they could do to get to the top quarter, they could do more to boost their Balance Sheets. And that of course is something that investors are taking heat off but the banks are hoping to boost the index on the day in australia. Over to you guys. Sam, thank you so much. China will be a focal point with Industrial Production as well as retail sales due later this week. Thank you for now. Another big story is the u. S. Dollar. The bank of International Settlements has warned that the dollar rise could leave a nasty sting in the tail for emerging markets citing the higher levels of the dollar and nominated debt held by a number of companies, the bis warned the credit worthiness of a number of firms could be damaged. A trend that could worsen when the u. S. Rates actually rise. The dollar index closed at its highest level since, get this, april 2006 following the much stronger than expected jobs number. Thats putting many emerging asian currencies under pressure. Take a look at the malaysian ringlet trading at 2,000 low. Well discuss the strength of the u. S. Dollar, we have charles and adam here. Adam, have you been surprised by the strengthening in the u. S. Dollar, the fact that its now trading at the eightyear high . Were people at your desk calling for this . Absolutely not. We were looking for the dollar to be weak yearend. It has been a shock and the reason its been a shock, just because the force which mario draghi has commented about the euro and the european market. The other concern is the Economic Impact specifically on the foreign currencies. How much lower do they go . From the cost funding perspective, theres pressure on the high yielding currency from the very bottom of the spectrum out to the aussie and the kiwi. That is because the dollar is continuing to rise and that should continue next year. You mentioned the rupee, but we are a long way from the previous crisis. As the money markets tighten that will expose weakness, but most of the countries in asia are running decent funding causes. But it is a story, some are much more exposed than others. And those that do have some, if you like, potential weakness or other reasons for concerns, such as maybe the political backdrop in thailand or inflationary concerns, that may suffer because of that point of view than a generalized dollar rate going up that causes a problem. Adam, the dollar against the yen in particular has gone through 1. 20. Where is the next stop for it . I think 1. 25 is the next stop. We need to focus on the price of oil. Charlie just mentioned asian economies are under pressure and the weaker oil price would help but they have a larger fall in domestic currency so theres no benefit from the weaker oil price whatsoever. Charlie, we talk about abe calling this election, he timed this just before things go bad and he gets a full mandate to implement his policies. Without a doubt his timing looks good at this point right here right now. I think the question mark, though, is hes bought himself another four years but how sustainable is the recovery going to be . They are busy trying to borrow growth and export deflation. And the extent of the currency move should support that. But so far the data that were still seeing given, for example, the downgrade to gdp we saw overnight, its still not really following through. That doesnt have that feel that its really become selfus is taping at this point. And thats a worry for the longer term. But for the time being his timing looks excellence. Thank you so much. Adam and charlie leave us now. Charles deeble, and adam mayer. Coming up on Worldwide Exchange, royal fever builds up in new york city. But what should kate and will do on their tour in the big apple . We get your thoughts. Need ideas on where to go out this weekend . Theres an app for that. Well talk about his second round of funding and ask where hes getting the investors from. Ashton kutcher is one of the big lead investors from last year. Plus, after the break we speak to the founder of an app helping the likes of uber to develop notification technology. Thats coming up. Youre watching Worldwide Exchange. Welcome back. Mainly red, the stoxx 60 is down, but well focus on a couple bright spots. Crystal ambers is in talks with overseas investors to buy shares in the supermarket as part of the plan to end the takeover bid according to the report in the sunday telegraph up over 1 . Fr raised his stake in the fm by 2. 7 million shares through his Family Holding company. On the downside, sika is down after projecting a takeover from the french buildings supplier. Its down 19 . And the boardoard said it did n see significant synergies from the transaction, but they say the deal is irreversible. Lets go to stephan with more. The main shareholder of the swiss chemical company, they are looking to move forward without support from management. The board threatened to resign this morning if the deal goes through. In a statement this morning, the board doesnt seem to see the logic behind this transaction for sika. Still sika plans to close the transaction in the second half of the next year. Sika responding to dispose of the board for quite some time. Market reaction negative on sika because of this clash between the main shareholder and the management of the company. And sika is trading lower, the worst performer more than an hour after the start of trading. Over to you. The rapid growth in the mobile business as opened up huge opportunities for support apps. Our next guest is the founder of trillia that provides information to uber and raised more than 100,000 in funding since being launched back in 2007. They are ranked on the top 50 list at 27. Twilio has benefited from the proliferation of the mobile ecosystem, but how far will this go . There are new entrants offering Similar Service as twilio is . To us this is a major tech non logical advancement going on right now. When you think about the cloud, people often think about software as a service, like sales force, people also think about infrastructure and why amazon is doing this in the infrastructure of the world as a service. We also include the devices that are on the screen right now as well as communications. But a lot of people dont know communications represents are 44 of the i. T. Budget. Its the biggest part of what companies spend to enable their people to communicate. And nobody has moved that to the cloud yet, and thats what twilio is doing. Who are your biggest competitors, like tech and amazon or the Silicon Valley . Its the legacy of the way this was done in the past. Billions and billions of dollars are used from pulling lines from carriers in the old physical hardware way of doing it, which is slow, which is difficult to reconfigure and difficult to build. In fact, our customers tell us they typically would have spent years and millions of dollars standing up an application like a call center and had very little flexibility. And twilio is fundamentally changing how customers go about building and reconfiguring these types the of applications for the 21st century. Well talk about the Net Neutrality debate. On the face of it, we think the debate is about the carriers wanting to charge those who use the highest amounts of data for that data. You think theres an ulterior motive to slip other things through with the new rules they are proposing. At twilio we believe its a matter of Customer Choice and the customer should choose who they communicate with when and why without that being impeded by somebody in the middle such as a carrier. So you already have a mechanism where carriers distinguish who pays for what level of service and thats typically in paying for bandwidth or gigabytes of data. Thats a good mechanism but who you communicate with, when and where is a matter of Consumer Choice as opposed to what carriers should control. We have seen the tech sector outperform this year. Theres been a lot of talk with the likes of uber raising a resend round giving an evaluation of 40 billion. Do you think were in a tech bubble right now . I think you see a tremendous amount of innovation going on that is fueling a lot of that growth that you see in the tech investment sector. And thats real innovation. You see the massive trends of what mobile is doing to our ability to communicate our ability to have new work flows and new applications that could have never existed before the ad vent of a super computer in all our pockets along with the ad vent of the cloud allowing companies to go global much more quickly. Look at uber, they are in 400 some cities around the world. And a decade ago, it would have taken years and years for a company to become a global entity. But companies today because of the advent of the cloud and because of the advent of app stores and mobile can essentially write software, upload it to the app store and be global overnight. We are seeing a lot of innovation, but do you think the companies are overvalued right now in Silicon Valley . I think theres real innovation going on. And i think its hard to tell what is overvalued and what is undervalued, but unlike previous time lines of Tech Innovation where the focus wasnt on revenue profits or customer demand, we do see a lot of innovation and the cost of the innovation has come down because of the advent of the cloud and Distribution Models on mobile. And thats really innovation and real economic gains that are happening. Its great to get your perspective because youre in the game and were reporting on it. Thank you, jeff lawson, ceo and cofounder of twilio. Great to have you in the studio. And royal fever is building stateside with the arrival of duke and duchess of cambridge. They touched down in new york last night. The coup is on a threeday visit in the u. S. To meet a number of highprofile figures including president obama, Hillary Clinton and her daughter chelsea. Tonight the royal pair will attend a game in brooklyn where the nets take on the cleveland cavaliers. Its the royal couples first trip to new york city so we want to hear from you where. Do you think they should go and what should say this do . Join in on the conversation here on Worldwide Exchange and e male us at worldwide cnbc. Com. And we have been getting your tweets and emails. Jeff emailing to say they should swing by the cnbc headquarters for an interview and visit a new jersey suburban shopping mall. Thats good old america, isnt it . They should do the interview in london and not the u. S. , when they come back. What educational should be on their list, seema . My heart is in new york, so i would say to start with brunch and go to the standard hotel, drinks at the beer garden and then to Lincoln Center for opera. So much to do in new york. Nonalcoholic drinks for kate, right . Absolutely. Shes pregnant, good call. You said your heart is in new york. Im upset about that. Anyway, do let us know if youre an expert on new york. What should will and kate be up to while they are there . Moving on, check this out. A u. K. Lawmaker has reportedly been caught playing candy crush while supposed to be taking part in a parliamentary hearing. The Sun Newspaper took photos of him playing the addictive game while ignoring testimony on pensions. Its so funny that candy crush, the maker of this company that went public, its a onehit wonder for the company. Thats run of the reasons the stock is not doing well. Its down about double digits sing going public earlier this year. But one of the reasons the company saw so much interest when it did go public was because of candy crush. Its a onehit wonder and a highly addictive game. Ive never tried it. I had to delete it from my phone because it was that addicting. Still to come, china shares soar despite weak trade data. So does this bull run have legs . Well discuss that next. Youre watching Worldwide Exchange. Bringing you Business News from around the world. A massive weakening in the eurozone as germany industrial output misses expectations. Concerns over asian growth as well. Chinese trade data coming in well below forecast while japanese Third Quarter gdp is revised even lower but the markets are shrugging off the news. And sainsburys trades higher after the retailer opens its doors to a takeover. Over 1 Million People displaced in the philippines as a powerful typhoon moves across the center of the country suspending the stock, bond and currency markets. And taking a look at the european markets after ending higher on the week coming in from the ecb president mario draghi, the ftse 100 is down. 60 . German Industrial Production falling in the month of october so concerns are around the health of the most robust economy in the eurozone. The xetra dax is trading above 10,000. A new level it hit last week. The cac 40 is down. 48 . And s p cut its rating on italy to one notch above junk status. Heres the euro stoxx 50 trading in negative territory following the moves of the individual european parks down 14 points on the day. The u. S. Is now just above 2. 34 having kicked off december close to 2. 2 . The reason, slightly Stronger Economic output data, particularly the jobs number on friday leading to a fractionally more risk on trade. In europe, we also see yields for a different reason because people are less confident that well see outright quantitative easing from the ecb although the expectation is still to see it at some point early next year. Heres a look at the currencies with the dollar index continuing its extraordinary rally particularly against the yen which is near 121. Although the dollar is giving up a little ground a quarter of a percent. The euro is at 1. 2264. Elsewhere, the biggest mover is the Australian Dollar giving up 1. 28. The health of the chinese economy is a focal point for investors. In fact, new trade data looked at the second largest economy in exports and imports slow sharply in the month of november missing analysts expectations. Eunice yang is live to breakdown this data. Eunice, over to you. Reporter thank you so much, seema. The first number, this is the number of what we expect to be a very weak set of data for november. The trade data missed exports slowed sharply telling us theres more weakness in the recovery in the u. S. As well as europe. Also the imports sank a lot. They were down by 6. 7 . And this is when a lot of people expect modest growth. So that surprised a lot of people here in terms of what was causing it. It was falling Commodity Prices as well as genuine weakness in the chinese demand. So there was a lot of concern about that. Now, this comes when president xi jinping says the Slower Growth is going to be the new normal. And this comes at a time when the leadership is holding an economic work conference. It will be a closed door meeting to last several days. And its when leaders get together and really draw out the blueprint for the economy into the coming year. Now, the results of this conference really officially comes out in march at a big communist party congress. Flu have been leaks in the past. So because of that, a lot of people are wondering whether or not well hear the gdp growth target or perhaps the consumer inflation target. Because we have heard those before. And at this stage, a lot of economists are wondering if the leadership is going to have to lower its growth target for 2015 to 7 . Now, while all of this negative data has been coming out, theres somewhat of a disconnect in the chinese stock market. The shanghai index actually rallied and crossed above 3,000 today. And a lot of that is because the investors are kind of looking at all the policy and thinking, you know what . Maybe the Chinese Government is zpoung going to have to come in and save this with stimulus because the numbers are not trending in a direction they would like. Bad news is actually good news because it tells us perhaps monetary support will be there longer than expected for china. Eunice, well leave it there live in beijing. But well talk more about china and the opportunity there is in the market. The shanghai composite continues to roar ahead despite the weak china trade data as eunice was telling us. Lets bring you flashes on rbs. We are hearing that julius bear has been invited for the subsidiary coup. The shares have not reacted on behalf of this news down half a percent today. Back to china, of course the shanghai index up 21 over the last ten days. Is there opportunity or have you missed out on the run . Well bring in jonathan fin, director of Chinese Research at trusted resources. Some say this is a rational exuberance given the rally in the chinese equities. Is there supportive data to support this run or are we setting up for a correction . I think it will continue for a little while. What you have to remember is we are coming off a low base. Chinese equities have been undervalued for a long time. They were kicked out of the market. Now they are getting into the market partly as eunice says because of the stimulus, but also because the communist party has committed itself to a Long Term Program of reform. And if this works, the main beneficials will be the statehood enterprises that represent 75 of the shanghai index. And the room for improvement there, i think, is in peoples minds. It wont come quickly but it could be the most undervalued in stocks we have seen by some investors as being worth it. The asian market has been rallying. When it does happen, it doesnt tend to last very long. Is this a temporary bounce or something structural that will lead to the shedding permanently . This depends on whether xi jinping can get to grips with the other statehood enterprises, but you can see during that corruption campaign, it is now being targeted at soe, particularly in steal and the oil and gas sector. And theres a lot of improvement to be made there. On the other hand, the shanghai market in particular is really made up of a lot of Retail Investors who can come in and out more or less with a change of the wind. Well talk about some of those reforms mentioned. Investors welcome them. The question is can they get them through and be effective once the Central Government is still supporting the economy with this which has been the case since april this year. Without the similtimulus, would economy be much worse . Yes. That is actually the number which was included in the fiveyear plan which ends next year. So actually things in that sense are on target. The whole thing is whether the leadership and the planners can manage that decline in growth so that it doesnt get out of hand. The trade data today is the export figures which were probably too high in previous months pause they were over invoicing, which is showing the falling Commodity Prices but also the fact that as you start to squeeze in big excess capacity sectors like steel and cement, youre going to cut obviously the demand. So well go through a difficult period as the data will be pretty weak. Its been said that the Retail Investors are playing a Critical Role in the recent rally in the shanghai index. In fact, individuals are counting for about 80 of trade in china. In the u. S. When you look on wall street, when the Retail Investor starts to get in, thats when investors should get out. They are the last one to join a rally. Is that a sign that perhaps this rally is coming to an end . That certainly is the case from the past. At the moment, its difficult to judge exactly how much money is coming up from hong kong into shanghai at the moment through the trade there. But certainly in the past when you have one of the last big rallies in shanghai, the story was a lot of individual Retail Investors are going in to basically buckets to buy shares. And they have a lucky day, so theres a lot of rational there. So this will impact the stronger u. S. Dollar. It was only a couple years ago when they were holding it back. So lots of companies have borrowed cheaply in u. S. Dollars or hong kong dollars. So the snap out in the u. S. Dollar could be a real issue for other companies. Yes, indeed. Particularly in the property sector pause we have had public prices in the market going down all year. We think that will bottom out in the First Quarter of next year, but a lot of the companies as you rightly say are overexposed. The leadership in beijing, we think, doesnt really want to see the devaluing. That doesnt fit into the chinese plans and wouldnt help exports that much. You would need a huge devaluation to have a big effect, but you have to be stable against the dollar over the next six months or so. Jonathan fenby here with us this morning. And japan has revised their july to september gdp figures. Lets go live to tokyo to hidemi naganuma. The quarter was revised down to 1. 9 . This is mostly due to tun expected weaker capex. This caught economists by surprise, especially the dip in capex figures because for the last several months the capex figures have been strong leading economists to know that revised gdp numbers would improve by 1 . But overall the downward revision is slight and economists are maintaining a positive investment. In a few years they would like to be near 20 from the current 25 in tokyo. If this were to happen, there would need to be alternative Revenue Sources found to secure the budget. This means it is up to the government to present strong policies for invigorating corporate activities. Thats all from the nikkei. Back to you, wilfred. Hidemi, thank you. Sticking in asia, the high typhoon to hit the eastern philippines on saturday has been downgraded to a tropical storm. Heavy rains and winds are still causing huge disruptions. Miguel almaguer filed this report. Reporter unleashing relents rerains and winds, this typhoon is barreling through the central philippines in coastal communities where many held on for life. Towers out, homes are washed away and now the floodwaters are rising. Translator where are we going to live now, asks this woman . One of the 30 million affected by the storm. Tonight more than a Million People are on the move. Churches and schools are packed. The desperate seeking shelter anywhere they can. In taclaban where more than 7,000 died last year, most heeded the warning to leave. There is new damage but so far no confirmed deaths. Nbcs jim maceda is to the north. Theres good reason to be worried. A 15foot storm surge was predicted to strike right here and could have wreaked havoc on this town of 175,000. Reporter the planets strongest storm this year, the typhoon weakened when it made landfall no churning with the intensity of a category 2 hurricane. Possible storm surges could occur over the coastal areas. Reporter moving at 9 miles an hour, it could trigger mudslides and flooding in the biggest city. In manila they were praying and now preparing, stockpiling food and millions wait with a moster storm leaving behind destruction and promising to do damage in the days ahead. Here in manila just after 7 30 in the morning, the dark clouds are rolling in and the whipping winds are beginning to pick up. An ominous sign for millions here as the Government Works to confirm the official number of fatalities including to be less than a handful, incredibly low for a storm this size. Now switching focus to india, new delhi officials banned uber following allegations that a female passenger was raped by a driver working with a taxi service according to the a. P. This comes ahead of the trial for the accused later today. Local authorities warned they would consider legal action against uber for hiring the driver who was previously arrested for sexual assault. Now ubers ceo said what happened over the weekend in new delhi is horrific and our hearts go out to the victim of this depickmespicable crime. This is one of the challenges india has been facing and companies are now trying to figure out how to overcome that, including uber. Indeed. Still to come on the show, u. N. Climate activists step up the charge for renewables. Well discuss that after the break. Cute little guy, huh . This guy could take down your entire company. Stay with me. On thursday a hamster video goes online. On friday it goes viral a network choking phenomenon. Why do you care . Hes on the same cloud as your business. The more hits he gets, the slower your business may get. Do you want to share your cloud with a hamster . Today theres a new way to work. Ands made with ibm. Protesters continue to stage demonstrations across the u. S. After a jury decided not to indict a white policeman in the death of an unarmed black man. Clashes erupted in berkeley and seattle overnight. Nbcs brian mooar is joining us live from washington with the latest. Brian . Reporter hi, seema. For the most part, the gone stati dmon stations taking place in cities from coast to coast across the United States have been peaceful with the exception of the clashes outside of san francisco. The demonstrators have been doing everything they can to disrupt traffic in major cities. This sends a message to elected officials here in the United States. On the heels of those controversial grand jury decisions not the indict White Police Officers in the killings of black men in both ferguson, missouri, and staten island, new york, protesters want president obama to do something and this evening the president is giving an interview with a Television Network aimed largely at a younger africanamerican audience. And in the transcript we received, he says that there is change taking place in this country. There will continue to be change, but he says that it wont happen overnight. The president has ordered a task force to look at ways to build confidence in the Law Enforcement system, but i can tell you right now, seema, in the streets of the United States, the american Justice System itself is on trial. Brian, thank you so much for that report. Well be watching throughout the day. Moving on, bp is reportedly planning to ax some deals when it deals with the falling oil prices. According to the sunday times they are looking to cut the head count and free some projects to deal with the new world of lower energy prices. Shares in bp are down 13 so far this year. Down about 1 so far today. Now lower crude prices also threaten to curb investment in Renewable Energy with the sector itself off 13 since june. Oil prices of course have declined sharply over the last 30 days down 19 . In fact, Brent Crude Oil trading at the lowest level since october 2009, part of that dealing with the weaker than expected data out of china. So the price of Oil Continues to tumble. Nevertheless, negotiators meeting at the u. N. Climate change summit in peru are charging ahead with an environmentally friendly reform. According to the report, this could cause all companies to phase out of the energy makers. This causes them to cease in their current form. Well bring in the ceo of the impact group to talk about the renewable space and the health of this industry now with the tumbling price of oil. Thank you for joining us, ian. Its hard to justify wanting a renewable plant given the price and drop of oil. The lack of efficiency when looking at solar wind only shines 10 of the time, wind 15 of the time. It must be a tough time for the renewable space given the price of the oil. Most people think of ren renewables as wind and solar, but the electricity prices are driven by coil prices than they are by oil, so oil is driving transportation prices and thats when you think about the bi organizatibio fuels. Surely this will divert your attention from the sector generally. Its been slow in stocks, but arguably thats messy reporting. The issue in electricity at the moment is demand is structurally weak because the economy is not bouncing back. We have a huge glut of gas in the u. S. Not being exported at the moment, so we have a regional difference in energy and electricity prices, but generally speaking all quite low. In the longterm case, four various types of energy. How much does it rest on the meetings at the moment and in paris next year. Do you need a clear set of initiatives announced globally for the renewable sector to continue . Theres a huge number of benefits from growing the renewables base. You can reduce exposure to imported fossil fuels and grow jobs domestically. Companies are manufacturing wind products and can export income. Thats in addition to the local change. So this is certainly not essential for a longterm you are saying this does not have an impact on the renewable industry, but well talk about the challenges facing the renewable space when looking at wind and solar. Storing the energy that is conducted or comprised from solar and wind is still an area of concern, the fact that wind typically blows the most at night, which is not when consumers need that much power. When can we find a way to store the power when consumers actually wake up . Well, the first thing to say is that the grid can absorb wind and solar up to a certain point without changing its mix. The gapes have moved well beyond 30 of electricity coming from wind, in particular. When you get to much higher levels of penetration, which is what we want to see with Global Warming in the media longterm, the storing becomes a big issue. But storage is becoming cheaper so the grid level is coming down in cost with electric vehicles also theres a mediumterm potential to store this in batteries in your car. Probably 10 to 15 years from now, but the other is the more you connect grids from one country to the next together, the more you can soothe that out for wind and solar across the countries. Well move away from the Renewable Energy. You like the water theme. How are you exactly playing that . Well, water is really a massive global opportunity. The great thing about water from the investment point of view is if you get the product right in one country, it is in Global Demand because people need water wherever you live. I think what has changed in the last two to three years is the croppic droughts that we have seen particularly in australia or more recently in the u. S. Theres been floods and storms, so water is just not appearing in the places it used to to put a huge pressure on the infrastructure. Plus you have the new infrastructure supply for emerging urban populations in emerging markets. And at the moment, you have big municipal tax receipts picking up in the u. S. , and thats good for infrastructure spending. So it is really an exciting time. Exciting but challenging, you have to admit given the fact with the drop of oil, investors are now questioning whether renewables is going to invest. Whether buying a hybrid car is meaningful given the drop of price in the gas. You need to think about water space and that energy is as oil prices come down, typically Water Companies are facing lower income within the unregulated part of the water industry by the margins. Within the regular space, it will return a little bit. I think the key thing about water is what is the rate of Economic Growth and the rate of tax receipts and confidence in the capex. Ian, thank you for your perspecti perspective. Now royal fever is building stateside with they arrival of the duke and duchess of cambridge who touched down in new york last night. They are going to meet with president obama, Hillary Clinton and her daughter chelsea. Tonight the royal pair will attend a game in brooklyn when the nets take on the cleveland cavaliers. Thats going to be a great shot of will and kate next to beyonce and jayz who are regular attendees of the net basketball games. That will definitely i bet you on the daily mail that will be the front cover. If they sit next to them. Im sure they will, two Power Companies from london and new york, amazing. This is their first trip to new york city. Where do you think they should go . New york has so many sights and sounds. Join us by email and tweet us cnbc dwex. Do you know what i think they should do while there . When you go to central park, you can perk and someone can do a caricature of them. Very touristy. Ive been to new york and have been wanting to do one. You have never done it . No, i have. I have plenty of them. Over your fireplace . Oh, yes. Bishop Gorman High School won the nevada football championship yesterday. And snoop dogg also showed up for the game. Bishop gorman is the Number One High School ranked team in the country. Im wilfred frost and these are your headlines from around the world. The dow closing in on, get this, 18,000 investors as they continue to cheer fridays solid jobs number. And the outlet darkens with two major global economies with the trade data well below forecast while the germany output forecast barely rises. The dollar continues its rise as the bank warns that the rise of currency could leaf a nasty sting in the tail for emerging markets. Merck is in talks to buy cubist as they bet on the revival of the market. Youre watching Worldwide Exchange bringing you Business News from around the globe. In a lot of Economic Data to watch this week, starting today that trade data coming out of china weaker than expected. The markets still responding positively. A lot of that has to do with the expectation that further monetary support will continue to provide a floor to the chinese economy. One thing that scares me, wilfred, is the fact that a lot of the merging markets move on sentiment rather than fundamentals. Right now we look at the shanghai market up 20 2 , 21 or the last ten days. A current doesnt usually last that long. The rate cut was 12 days ago. Globally everything is moving based on sentiment and what we expect the central bank to do apart from the u. S. Where we are getting stronger fundamental data. But i wonder now with the move in the u. S. Dollar index whether things have gone too far because its the only country to move based on the fundamentals. An eightyear high for the u. S. Dollar. Traders were not projecting this type of move in the currency. Of course, the u. S. Futures continue to move higher with the jobs number coming in better than expected. Right now the Dow Jones Industrial indicating a lower open 42 points. The nasdaq down just about 11 points. The s p trading down just about six points. But it was another recordbreaking week for u. S. Markets. Stronger than expected jobs report providing fuel to the fire. The nasdaq now just 6 away from hitting its alltime closing high. Looking at the ftse global 300 index, china will be a focal point for investors this week as we have inflation, retail sales and Industrial Production numbers coming out this week. Given the resurgence in the market, the question is can the data confirm its Economic Growth or recovery. Or does it just constitute for further monetary easing from its central bank . The global 300 index down just 12 points,. 20 . If you look at the european market, the german Industrial Production coming in weaker than expected for the month of october. Thats why you are seeing the german markets respond negatively to the number trading down 29 points. France and italy both trading lower. Actually, italy now at session lows. S p cutting its rating on italy to one notch just above junk status. Reiterating concerns around italys growth and its progress with matheo renzis forecast. We are starting the week in negative territory. On thursday mario draghi did not announce qe. And his statements were suggesting we wont see it any time soon. Given that markets havent done too badly since thursday. Lets also look at the bond markets. We have seen yields tick up a little bit so far in december. We kicked off december with the u. S. Much closer to 2. 2 . And it is now above 2. 3 . Why have yields ticked up in the u. S. . Well, we have had a slightly more risk on sentiment, particularly the strong fundamental data. So we have seen a more positive number with the yields tick up. The yields have ticked up in europe over the last week or so but because we are not as confident as the quantitative easing from mario draghi, although thats still the expectation from investors that well get it at some point in q1. The tenyear in germany is at 9. 75. Similar yield for the tenyear in the u. K. Well look at the u. S. Dollar index soaring once dense. A little bit of a correction today in the yen, but it pushed past 121 at 121. 14. The euro weakened to 1. 2254. And the rouble is in focus, 2 gain for the u. S. Dollar against the rouble so far today. And the broader dollar index, there we go up 1. 6 today. A big move over the last year. Best part of 12 . You can see the strength so far. Lets talk a little bit more about the u. S. Dollar. David scranton is ceo of the advisers academy and is joining us now. David, is this move in the u. S. Dollar, the broader index, because its the pick of the bad bunch at the moment . I think that of the trend of the dollar has been upward. And i think that will continue for a while to come. In large part because of the dislocation in the Interest Rates. Its interesting, four months ago i was here on the show and concerned about the fact that at that time the spanish and italian tenyear sovereign debt was paying just a hair more than the tenyear u. S. Treasury. And of course, now those are paying respectively 30 and 45 basis points less than the u. S. Treasury. Its a major dislocation that over time should keep Foreign Investors continuing to put money into u. S. Treasuries because they are getting to be a little safer and also paying a higher Interest Rate and also potentially having a significant currency translation gig. So its kind of a win win win. And thats also going to act as a governor for u. S. Treasuries to prevent them from going too much higher even though qe3 has ended about five weeks ago. So if im hearing you xrektly, david, then you think the strengthening u. S. Economic data will lead investors to buy u. S. Bonds which will need yields to move even lower, even though were expecting a rate hike next year . Yes. And i think the rate hikes they are talking about are not that significant. You are talking about a federal funds rate hike that will be very gradual. I was expecting earlier this year that when qe3 ended that you could very well see the tenyear treasuries in the United States back up to where they were before qe3. And that could certainly cause major pullbacks in the u. S. Stock market, but i dont see that happening right now because europe is creating sort of a governor to keep Interest Rates in the United States down. And that can keep potentially momentum that we have seen in the u. S. Stock market going for at least a while longer. And david, i want to go through one of the analogies in the notes you sent us about the markets in general. Its like a diamond gym you say. Yes. See, longterm, if you go back to the beginning of the stock market in the United States of america and you look at trends closely. It says that we almost have to have another pullback in the stock market in the United States at least 30 . In essence, getting the s p 500 below the 1500 mark. Why . First of all, we have 200 years of history that really make that is predictive. So most people agree that part of the reason the stock market is as high as it is today has to do with all the quantitative easing efforts we have seen over the last six years. So its almost like going into a gym when you see somebody bench pressing 400 pounds and find out hes on steroids. Then you say to yourself, okay, how much could he bench press without the steroids . 250 . 300 . 350 . The answer is we dont really know but its something less than 400 pounds. And its kind of where the stock market is today. You know, where should the stock market really be heading up to ease quantitative easing . We really dont know, but at some point im seeing that pullback that we talked about. However, for now at least i believe janet yellin has dodged a bullet. When she pulled back from qe3, europe has done her a big favor in essence. And helped keep Interest Rates down in this country to keep the market supported. But we have to point out that this is a dual mandate by the fed. The encouraging data out of the labor market, of course, is positive, but inflation still is well below the target. When do you think we could see inflation tick up next year for the u. S. . Its always difficult to say exactly when. I actually wrote in a newsletter to clients back in may of 2008, but i think theres some of greater chance well go into a deflation in their environment than an inflationary environment. With demand being reduced in new york for goods and services, in the United States of america, we have a whole generation of investors that has gotten bit twice by the stock market and once by the real estate market. And they have learned now to pay off debt and they need to save and invest money, which in part is helping to fuel the stock market. So i think i would be surprised if we dont see inflation for a while to come. All right. Well, it was just an inflationary environment. David, thank you, well leave it there. And well get you a rundown of what to watch this trading day. No Economic Data but atlanta fed president Dennis Lockhart is speaking this afternoon. The ski resort operator vail resorts is reporting before the opening bell do. You ski, wilfred . I do. It is a lot closer than going to america. I know. Im just saying, you are close by so it makes sense. Im actually going to the french alps next year in march. Fancy expectation. I dont know if we are there in our friendship. A big day for u. S. Markets and well look at the other top stories. Merck is in talks to buy hubist pharmaceuticals for more than 8 billion. Merck would pay 100 billion a share. The deal could be announced this week. Cubist specializes in drugs to treat up tech, diseases. They had nearly 1 billion in sales last year. Take a look at cubist as shares rose 23 in after hours on friday, but as you can see it is up just about 33 in frankfurt. As we approach the year end, m a does not stop it continues. Particularly in this base, despite some of the tax aversion deals going away. And study data shows mercks new immunotherapy drug is treating lymphoma in a trial. They are down fractionally today in frankfurt. Now a story were watching from india. New delhi draps port officials have banned uber following allegation that is a female passenger was rapped by a driver working with the taxi service. Ubers ceo issued a statement in the last few hours saying our entire teams hearts go out to the victim of this despicable crime. The company went on to pledge everything to bring the perpetrator to justice and to support the victim. Now the latest developments come ahead of a trial for the accused in an indian port. Still to come on the show, china shares soar despite weaker trade data. Does the bull run have legs . Well discuss that after the break. Welcome back. Well give you some headlines. The dow makes another attempt at 18,000 but futures point to a lower open. International regulators raise alarm bells over the strong dollar as the rally continues. And merck circles the 8 billion cubist bid as stocks get a boost. And this morning the ecb Council Members say he sees a massive weakening in the european economy and calling a weak spot in the economy. This is despite a slowdown in germany as a reason. And in germany, Industrial Production in the biggest economy fell in october. Output grew by 0. 2 . That compares to a forecast of 0. 3 and a revised 1. 1 in september. Now, the German Economy minute industry says Construction Activity may have bottomed out after a weak summer by cited a drop in energy output. The data for the most part has been slightly better than expected over the past week, but there you go. Disappointing data out the of germany confirming concerns over the economic recovery in europe. Absolutely. Such an important member of the eurozone economy. Now another economy in the spotlight, shanghai continues to be lower despite weaker trade data showing exports and imports falling sharply in november missing analysts expectations. With more on the story. Eunice eun is joining us live from beijing. Reporter hey, wilfred. The Economic Data that kicked everything off this week is the trade data. We saw that data miss for november and are expecting the november figures to all look relatively weak. Now the expert figures slowed sharply and a lot of that is because of a weakening demand not only in the u. S. But also in europe. Also on the import front, imports are sinking rather dramatically compared to what a lot of people were expecting. The con september us is was fse bit of growth as well as the General Union softness in chinese demand. This comes at a time when the chinese leadership is going to be convening. A lot of people expect this week to be a major conference that is going to be focusing on the agenda for the economy in 2015. This is going to be a closed door meeting and the official results are announced in march at a major communist party congress. However, traditionally what is happening is that around this time, or at least in the past, there are leaks to the gdp growth forecast or the consumer inflation target. So a lot of investors are waiting to see this week whether or not well hear anything from the leadership. The leadership and a lot of economists are expecting the leaders here to have to lower the growth target for the year of 2015 to 7 because of all the negative data that we have been getting the past several months. Eunice, thank you very much. Now, royal fever is building stateside with the arrival of the duke and duchess of cambridge, kate and william. They touched down in new york last night. The couple on a threeday visit to the states will meet a number of highprofile figures including president obama, Hillary Clinton and chelsea clinton. Tonight they will watch the nets take on the cleveland cavaliers. Its their first visit to new york city. So we want to hear from you where you think they should go. I have plenty of ideas but they didnt ask me before they left london where they should go. They should have. What is top of your list . You have to take a walk around central park, especially now when it will snow in the next couple of days. Opera at the Lincoln Center. The metropolitan museum of art has a great exhibition on egyptian history. Theres a lot to do, a lot of restaurants in the Western Village where i used to live. And is basketball the sport of choice for you . Yes, the mets have been getting a lot of attention from brooklyn. And jayz and beyonce, will and kate, the two Power Couples will attend the event. A fun day for the media. Its fun. The Royal Company is going to new york. Let us know where they should go in new york if youre an expert on the city. Email us or via twitter. Now, sticking to the u. S. , a u. S. High School Football game got a star treatment last night. Bishop gorman had the attendance of mohummad ali there. The grandson of his was a running back. And also snoop dogg showed up for the game. Each of their prod dids scored a touch down. And the win has Bishop Gorman ranked as the Number One High School Football Team in the country. And next up, well talk about a second round of funding for yplan. We speak to the socialite of the event and ask him what is next, thats coming up. And yplan has secured 24 million in secondround funding which it plans to spend on new technology and expansion. The Group Reported expansion in 2014. Joining us is the cofounder and ceo of yplan. You have been raising more money despite the lack of glorowth he in europe. How did you do this time around . This time yplan was funded by the existing investors who decided to lead the round and take us to the next level of growth. Which for us is the best testament truly so far. Yplan is still a young business. We have only been around less than two years. One in three devices have our app right now and we are live in new york, san francisco, et cetera. So that is how it happened this time around. And thats the next big step for you in your involvement, right . Getting similar takeout like you have seen in london. Thats definitely one of the two key things we need for the approach. The expansion around the world plus making sure that our offering in every city keeps on Getting Better and better. So if you have been using this yplan for a year, you cannot notice how the app has become more powerful and better with selection, more relevant to you as well. And with that high Adoption Rate on one of three iphones, now we are moving to social as well. Yplan will become a social event to allow you to plan your spontaneous nights out. Well talk a little bit about what yplan can offer me if i download it in london where it is already developed. Surely by definition, if you can offer me something last minute on the day, it is not as good as something sold out. So this is just kind of a restaurant to fill its tables so well offer a table there . Thats a great question. It turns out only 2 of live events generally sell out. If you pop up the app one day and find the Pharell Williams concert, thats what it is. A couple Seats Available and we have it. How is this different than ticketmast her . Ticketmaster will aim to provide the ticketing engine for the event. We provide the discovery engine for the consumer to finally do something great at the last minute. And we dont care whether the primary ticket goes through event price or ticketmaster or anybody else. We choose from the entire universe of events and curate and put it in the app and off you go. And we are the only ones who answer that question. What am i going to do tonight . Ashton kutcher and pharell, any others to add to the list . We are going to add the manager of youtube to announce the tour for next year. So well have tickets on the iphone here in as well. And he manages madonna and alicia keys and other big artists. And we have robert litdy who managing the chemical brothers and others. So it is fantastic. We have a few other really amazing entrepreneurs and individuals. Very fun to watch the synergy of media and tech and how they try to meet hands. Well leave it there. The cofounder and ceo of yplan. Thank you for your time. Thank you very much. And fire up the stove and cook some pasta. This recordsetting truffle weighs in at a record and sold for 61,250 at sothebys. And seema, you are a food and wine lover, but perhaps its best that you stay out of the kitchen and leave the professionals to it, yes . Why would you say that . Here is your attempt to bake cookies over the weekend. What happened . I dont know, wilfred. Maybe it has to do with how the ovens work here. Ill blame the oven, not my cooking expertise. Im honest about the skills i have and clearly baking is not one of them. Clearly, i know. Im glad i didnt have to taste those. Do you think youre better . We have to move on so i dont have to answer that question. Still to come on the show, if at first you dont succeed, try, try again. Will the dow finally hit 18,000 . Well preview the trading day ahead after this short break. It is 5 30 in new york and a big day for global markets. China data weaker than expected. Well run you through all that in the next half hour. Indeed, here are the headlines. The futures indicate a lower open after another recordbreaking week for major indices with the dow closing in on 18,000. And the outlet darkens with the chinese trade data well below forecast while german industrial output barely rises. The dollar continues its bull run as the bank of International Settlements warns the rise of the currency could leave a nasty sting in the tale for emerging markets. And merck is in talks to buy cubist for 8 billion. If you are just tuning in, thank you for joining us. Well look at the european markets this monday morning. German Industrial Production falling in october, so that disappointing data weighing on the european markets. Right now the xetra dax is down 31 points, but it is back above 10,000. A level that is broke last week thanks to the encouraging dubbish statements from mario draghi, the ecb president right now, we are looking at the ftse 100 down 0. 70 . It does have a Strong Energy waiting and decline in stocks due to tumbling oil prices. The ftse 100 trading at 6,695. France down 24 points. Italy in focus and the s p cut its rating on italy to one notch above junk status reiterating concerns around italys dire economic situation. But what does this mean for the u. S. Futures right now . Arrows pointing to the down side. It was another recordbreaking week for the u. S. Markets thanks to the stronger than expected jobs report. The Dow Jones Industrial indicating a lower open by around 50 points. But were going to keep an eye on the dow as investors want to see if the dow will break 18,000 this week. Well take a trip down memory lane to look at the dows steady rise. The dow first touched and closed above 17,000 in july of 2014. Seven stocks are basically responsible for the 1,000point gain in the dow from 17,000 to almost 18,000. Some of those names include visa, goldman sachs, nike and home depot. In terms of the Stocks Holding down the dow, chevron is the worst performer in the dow over the past i guess since 17,000 thats been the big loser. Right now were looking at the Dow Jones Industrial trading at 17,958. Lets bring in an expert, lance roberts, chief strategist at sti wealth management. Thank you for joining us, lance. Do you think in the data continues to strengthen this week we could perhaps see the dow break 18,000 . Look, its very possible. You know, weve got a lot of momentum behind the market right now with a lot of sentiment by investors that this market is going higher. Its interesting, a lot of the data you were just talking about is weaker in europe and japan. They just confirmed the worst recession than what we thought previously. Overall, the Economic Data isnt that great internationally. Which is eventually going to come back home to roost, but right now as long as the Central Banks are there to support the markets, the asset market is the only place to be so 18,000 is an easy shot from here. Lance, your writing on friday that the reaction to the jobs report was positive was quite muted. There is just not that much more up side to eke out. I think thats a good point. We have had an extremely strong run here over the last since october. Thats been almost a straight moon shot up to this point since im here in houston, but the issue is that really when you look at the job report, the number of individuals between the ages of 16 and 54 years of age have not really improved that much. So were seeing a lot of statistical kind of anomalies happening in some of the data thats been lagging in the shutdown of the government last year. So some of the seasonal adjustments are pushing employment numbers higher, but well see that reflected in the underlying employment. And i think a lot of the market has picked up on that on friday. Lets talk down to some of the longerterm trends and not just the u. S. Employment situation but the u. S. Demographics because its a big issue demographics are facing with a lot of developed economies, the u. S. Included. The working age population on the decline that there are a lot more than they say some 10 or 20 years ago. How big of a head wind is that for the u. S. Economy . Its a really very large headwind longterm. Remember, we have a very large dependency on the social Welfare Benefits here. One out of four americans depend on some sort of welfare benefit out of the 20 programs we have. The problem is that we have smaller and smaller numbers of people contributing to that overall problem. So from a debt to gdp ratio, that is a longterm headwind that will continue to drag on Economic Growth. This is why we kind of just stumble along here around 2. 5 growth. The other side of the problem is that we need these individuals, particularly the younger age brackets, the millenials, to get jobs to buy houses and create the Economic Growth underneath the markets to continue to support the economy while we have the large rolloff the baby boomers heading into retirement. So right now weve got to get those people back to work. Unfortunately, a lot of the fiscal policy has not been there to stimulate that. Yeah, do you think the market is too focused on just the headline number and not focused enough on the details in that jobs report . The fact that Labor Participation rate, wage growth, these are two primary concerns when looking at the health market. Yes, the reason the markets like these numbers when we actually start to look at the underlying impact underneath the markets, the number of people, for instance, last friday we lost 150,000 permanent jobs, added 77,000 temporary jobs, the market likes that because that means that the fed wont go away. The federal reserve, the Central Banks around the world are continuing to support the markets. Let me ask you one question, if the economy is really growing as strong as the headline statistics say they are, then why do we need the Central Banks to continue to support the markets . Thats the real issue here. Quantitative easing ended. Yeah, well thats the problem. Lance, well leave it there. Thank you for joining us. Lance roberts, chief strategist of sft growth management. Now well look at the other stop stories today. North korea denies behind involvement in Sony Pictures hacking. They talked about this on saturday night live. The hackers revealed personal information about everyone working with sony. Social security numbers, emails, and i know eventually they are going to start leaking stuff out about me. So before you hear it somewhere else, i thought it would be better for you to hear it from me. Soon youll know that my email is cuterthandavefranco aol. Com. If you are not done with Holiday Shopping or you are, retailers want you to shop some more. Today the green monday occurs, the busiest sales day in december. The third busiest shopping day of the season. Last year green monday registered 1. 4 billion dollars in sales up about 10 from 2012. Wilfred, i didnt realize that today played such a big role in the Holiday Shopping season. No, there are definitely too many nicknames for shopping days. We have black friday, cyber monday and green monday. But i did start my shopping this past weekend. What did you get me . Standardly, i started the week after all the discounts ended. So that was good timing. Out of all the research we have done on the coverage of black friday, you still failed to i wasnt feeling it and this weekend i went out to do it. But i didnt do that much shopping for other people. I just bought some stuff for myself. I need to get into the Christmas Spirit as we get closer to christmas. Mister, you are so obsessed with christmas, im surprised you have not started yet. Is your Christmas Tree up . No. Not yet. Anyway, were going to come back to this and other topics. Because coming up, its already been a huge hit for deals in the drug sector. Another big one could be on the way before the calendar turns over in 2015. So well talk about more m m after the break. At whole foods market, values matter. So were transparent about the fresh wild seafood we sell. And the species we dont. Independently rated for sustainability. Traceable from dock to store. Sent fresh from over 50 u. S fisheries with responsible fishing practices. Like bornstein seafoods because to us, value is inseparable from values. Whole Foods Market Americas Healthiest Grocery store. Now as the dow flirts with 18,000, theres one sector doing well and its the airline getting to be like a broken record. The Airline Stocks are falling on Rising Oil Price that is hit a fiveyear low on friday. Some of the big winners in fridays trade, take a look at United Continental gaining 2 . Delta airlines up 1. 8 . American airlines up 2. 7 . So this sector just continues to run despite evaluation concerns on the street. Absolutely. A couple months ago we were talking about ebola and the airline suffering, they shrugged that off and they are benefiting from the lower oil price. Soaring higher once again. Now moving on, a big deal brewing in the drug sector to show renewed interest in the long neglected market. For more on the story, well go to cnbc hq and landan. Good morning. Merck is reportedly close to a deal to by Cubist Pharmaceuticals for 8 million. They would pay a rough 33 premium to fridays prous. A deal could be announced this week. Cubist based near boston is at the forefront of efforts to develop a new generation of antibiotics to prevent the spread of super bugs. The companys drugs are primarily used by hospitals. Antibiotics are not traditionally seen a lucrative area for drugmakers, but new versions could bring higher prices as it becomes more important for hospitals to reduce infections. Cubists drug is called cubicin and had nearly a billion in sales last year. They hope to develop four new drugs by 2020 and committed 4 million in spending this year alone. And they are looking to focus their concern on acute concerns and diabetes. Merck officials said they are not interested in mega mergers with astrozeneca. Checking the shares of cubist and merck, cubist is up 30 today. A typhoon hit the eastern philippines on saturday and has been downgraded to a tropical storm. Heavy rains and strong winds are causing serious disruptions as the eye of the storm heads to manila. Miguel almaguer has filed this report. Reporter unleashing powerful winds and relentless rain, this monster typhoon is barreling right through the central philippines. In coastal communities, many held on for life. The power is out, homes have washed away and now the floodwaters are rising. Where are we going to live now asks this woman . One of the 30 million affected by the storm. Tonight more than a Million People are on the move. Churches and schools are packed. They are desperately seeking shelter anywhere they can. In tacloban where 7,000 died last year, most heeded the warning to leave. There is new damage but so far no confirmed deaths. And nbcs jim maceda is to the north. Reporter there is good reason to be worried. A 15foot storm surge was predicted to strike right here and could wreak havoc on the town of 175,000. Reporter the planets strongest storm this year, typhoon hagupit, wreaked landfall as a category 2 hurricane. Moving at 9 miles an hour, lashing rain could trigger mudslides and localized flooding in the countrys biggest city. In manila they were praying and now preparing. Stockpiling food and millions can only wait. A monster storm leaving behind destruction and promising to do more damage in the days ahead. Here in manila where it is just after 7 30 in the morning, the dark clouds are rolling in. Those whipping winds are beginning to pick up. And an ominous sign as the Government Works to confirm the official number of fatalities to be less than a handful, inyesterd inyesterdi incredibly low for a storm this size. And another attempt for the dow to hit 18,000 at the open. And bis warnings over the dollar rally. And merck looks at an 8 billion deal to buy out cubist giving the stock a boost. The stoxx 600 finished in red after quantitative easing. We are undoing the gains today after the stock is down. 60 . The ftse 100 is down in the red. And germany is down but could have been down more after the industrial output was weaker than expected. France is down half a percent and italy down a quarter of a percent. Seema, what do we expect in the u. S. . Last week oil really captured the attention of investors. And this week it may be the dollar rising to an eightyear high here in the u. K. Where we look at the dollar trade at a 15month high against the sterling. But the bigger concern is the threat it poses to the merging markets. In fact, the rupia and the ring let are at numbers we have not seen in years. The dollar is up. 18 . The u. S. Futures right now indicate a lower open despite the record closing week for the s p 500 and the dow. The dow right now down just 30 points in premarket trade. The s p 500 and the nasdaq both trading lower in premarket. But the question is, how do you make money in these markets . Here is what some of the experts have been telling us throughout the morning. From the euro side, the data is still very challenging. We are still talking about the probability of the ecb doing more. The ability to increase the Balance Sheet to sort of levels they have been talking about purely on the measures where they stand, it is very unlikely or very compromised. So there is going to be more coming from the ecb. We are watching the european markets, especially on the bond side where we recently saw the exposure of the markets down drastically already. But we expect the bonds what were looking at is very much a continuation of what we have seen this year. Every month feels like a crisis, but at the end of the year the market are up 7 to 8 , and so you get lots of volatility but the underlying trend is still upward driven by higher earnings. So some good perspective there. Well give you a rundown of what to watch this trading day. No Economic Data but atlanta fed president Dennis Lockhart is speaking this afternoon. Vail resorts reports earnings before the opening bell. Diamond foods and pep boys also in focus today. Joining me is bob uchino, chief Market Strategist at tesco partners. A lot of focus on the dow within nine points of breaking 18,000 on friday. But failing to break the benchmark. Will we see the dow break 18,000 this week . Good morning, seema. I think you will. Its more of a psychological level. I always kind smirk at the numbers because really 18,000 to me is just one more than 17,999 and one less than 18,001. It doesnt have a lot of significance other than psychological. We continue to see record highs. Im not sure why 17,999 is not the same sort of significance as 18,000 as a record high. I do think that youll see it and the market will blow through it and settle below it. Oil will be sort of the Economic Data for the next week or two to see where it settles in. And were getting to the point where oil is going to bottom and possibly pop up a little bit and come out of the headlines. The second half of october and november we had a strong rally as we know in u. S. Markets. I can get that. That was a bounce back and coming after we got through the end of the quantitative easing. But in december, it doesnt seem to be a clear reason for the gapes. Is it simply because people dont have anywhere else in the world to put their money . Well, it is. You can continue to see share buybacks and continue to see profitability in the u. S. Companies. So as money needs to go somewhere, the u. S. Market seems to be the place to go. You talk about Central Banks earlier, one of the main conversations is sort of the opposing views as to the effect of the oil prices on the economy. Eu using it as more of an excuse to possibly finally get the quantitative easing that mario draghi has been jawboning over the last six to eight months. But the u. S. Fed, you have heard comments from fisher, we have more fed speak today, talking about oil prices not really being a did remetriment to push their oil prices back. Jpmorgan did the same thing but the fed seems to be telling you they are on course. The u. S. Equities are going to continue to creep up until we find out where the u. S. Market sits in terms of the u. S. Rates. This is not the only market the investors are betting on. The shanghai index up 20 over the last ten days, is this a rational exuberance or a fundamental reason to get bullish on china . I think a lot of people that want to invest on that side of the world are losing their love for japan. And i think that money flows into china. Were seeing it on an institutional basis. China is going to rebound and this been a little more aggressive than the eu has. It looks like its going to a recession. China has been very aggressive versus the eu, not really versus where the u. S. Was, but that money is flowing out of japan into china. Thank you for joining us, chief Market Strategist. Kate and william touched down in new york last night. The couple is on a threeday visit to the states to meet a number of highprofile figures including president obama, Hillary Clinton and chelsea. Tonight the nets will take on the cleveland cavaliers. Throughout the show, we have been asking you, what tips would you have for people in new york . Seema, im coming to you for that, youre the expert. What should they do . As i was saying, go to the beer garden at the standard hotel. The metropolitan museum as lovely exhibitions. What is beautiful about new york is being able to walk around and put on your music and take in what the city is offering. You have it from the expert, seema mody. They didnt ask me. Next time. Thats all we have time for today on Worldwide Exchange. Im wilfred frost. Im seema mody. Squawk box is next. Good morning. A deal making in the drug space. Merck is looking to buy cubist for more than 7 billion. Another break after the cancer news from merck. And Oil Prices Falling to a fouryear low now. Down a dollar since early may. And a british invasion. The royals have arrived. William and kate on a whirlwind trip to new york. The u. K. Has them, we have the kardashians. It is monday, december 8, 2014. Squawk box begins right now. Good morning, everybody. Welcome to squawk box on cnbc. Im becky quick along with joe kernan and andrew rosssore kip. Here are the three big stories we are watching today. Stocks are on a big winning streak with the dow closing in on 18,000. November seeing the strongest job gains in 35 months. But could good news actually be bad news . We sure hope not. Well get reaction to fridays employment report. Investors immediately reprice expectations for the fed rate hike from june to september. And while we were sleeping there, were a number of key economic reports out of asia. China trade data was weak and japans Third Quarter gdp showed the economy was in recession was revised even lower. Eunice will be joining us from beijing in a few minutes. Oil prices are the big driver for the markets right now. Morgan stanley cutting