Shakeup. A bug may have allowed access to hackers to videos of hollywood celebrities. Youre watching Worldwide Exchange. Bringing you Business News from around the globe. Hi, everybody, welcome. Good morning. Youre watching Worldwide Exchange. Are you aquake . I am. Im very awake. Day one was very enjoyable and i hope day two will be the same. Its going to be. It definitely will be the same. In fact, youve been doing more than just working here in the studio. I have been out and done a few interviews. 835 Million Pounds is what the premier league has spent. Indeed, which represents 30 inflation last time. Well be talking about that inflation and the inflation in television. 30 more than elsewhere in the economy. So while were talking about inflation, 0. 3 in the eurozone, 30 inflation in football, its fan taft ig. Well weave that in. Weve got a good show coming up. Now, our main story, crisis talks between ukraine and moscow are continuing. The talks come at a Crucial Point in the crisis after ukraine abandons their defense in the latest of a series of military reversals. Ukraines defense minister announced the countrys options to liberate kiev was over and the focus was now on defending itself against russia. We are joined now by tim harris and christopher branville, managing director of trusted sources. Welcome to you both. Christopher, ill start with you. The time for diplomacy, is that over now in the Ukraine Russia crisis . Well, frankly speaking, its right back. Yesterdays talks in the Political Leadership of the Rebel Movement and the kiev government represented no less than by the former president of ukraine are the third such talks since the last week of june. Seems like an age ago. After that, the ukrainian president , poroshenko, canceled the ceasefire looking for a military solution. Now russia has beefed up the insurgency, as inflicted on the were back to talks. The malaysian airliner, death, destruction, bitterness, more sanctions, economic war. Theyre talking, but its difficult to be optimistic. We were just talking about whats taking place in ukraine. Just to mention that weve got some live pictures coming in from moscow where the Russian Foreign minister lavrov is due to speak at any minute with his tunisian counterparts. Were awaiting the Russian Foreign minister and well keep you up to date with what comes out of that one. Tim, what are your initial thoughts on the crisis and what situation were in now and what will happen from here . Well, whenever this ends, there has to be a lasting solution and that muchtd ultimately lead to negotiations. The key now is that the hot heads arent too hot. I think we all have a good idea of whats going on. I think the gloves are off here. I think there will be significant pressure building on the russians in due course. There will be political pressure internally. If the sanctions which the eu may or may not ramp up even further rolls through and its hurting europe, clearly, as much as its going to hurt russia. If we do end up having an energy impasse, that may be a stage further down the road. But at the moment, its talk and talk to try and keep this thing quite popular at home. Less so abroad. Do you think has he lost kind of the good will, the International Good will . He got off to a blinding start with the annexation of crimea. That took him to levels of domestic popularity in the country. I wouldnt necessarily say in the cities of russia, but that was where he went. From here, obviously, this is now long going. This is going to be a long, drawn out crisis. I think the issue is clearly russians are involved in this explicitly as well as implicitly, and this can only draw more in that. I think as this does get drawn out and as the russians themselves realize what is occurring, then i think there will be building domestic pressure for him. But there are more immediate issues to address. Xrift fer, if this is going to work, nato is going to have to bring putin directly to the table. What can they offer put yib to try and get him to come to the table to discuss this . The u. S. Government and its european allies on one hand and the russian government on the other. Your implication that this is a high geopolitical conflict is spot on. Form formerly, the negotiations were between the ukraine and this rebel group in the east. However, i dont think thats really going to happen. Russias goal is simply to prop up this insurgency sufficiently to stop it from being crushed. I suggest russias goal is not to conquer ukraine as a hole. Its to secure its strategic goals in ukraine, above all, ukraines neutrality. Its nonalignment. It pushed the rest of ukraine, the majority, much closer to flato than its ever been. Surely in doing that, putin shot himself in the foot and the result is likely to be whatever is left of ukraine will want to join nato in the future. Thats absolutely a scenario and that maine counterproductive. Youre spot on. If crimea was still part of ukraine, you would have 1. 3 million voters voting solidly for the russian alignment. Even without crimea, if you want to join nato, there might be a simple majority. Even know, i think its unlikely there will be a national consens consensus. Its still a very divided country. If you try to put it in one camp or the other, you will tear it apart and ultimately destroy it. Chris and tim, stay with us. Youll talk more on these companies in a bit. Russian companies that have such as gazprom as the u. S. Expands its sanctions on moscow. This is the ft report that roznet is suggesting beijing take a stake in its oil fields. The u. S. , though, is under growing International Pressure to end its ban on crude exports. The eu and others have made the case to open up its reserves overseas. Which allows u. S. Companies to export, not oil, except under limited circumstances. I want to come back and touch on one of the points that you brought up about putins mission and keeping the overall neutrality for ukraine. Has he gone too far . Can he keep neutrality for ukraine or are ukrainians going to look at the situation and say of course were going to choose europe . He cant determine the state of ukraine. He has russian interests and you may have minority interests within the ukraine, but ukraine is a free, democratic state. And they are, in theory wsh in charge of their direction. So sisterinlaw pressures will build the boiling part that is ukraine today. And we dont want to go to an extreme solution as chris alludes it could go. I think putin must know have a set of strategic objectives that he will have on outlined. Hes not going to resemble the union. I think there are energy implications, as well. I think the question of u. S. Crude exports linked into this in the sense that the with geopolitical uncertainties with interruption of 7 Million Barrels of oil a day is not iran. You could not interdict russian oil without causing a major shock to the economy. Countries around the world are starting to think of that. The stakes are high. This is not just some kind of local conflict. Great powers are involved. Christopher, thank you very much for being with us. Tim, youre staying with us for a while. The email as usual is worldwide cnbc. Com, find us on twitter, as well. Were happy to get you involved here from the top of the hour. Lets update you on markets today, mainly green behind me. Strength throughout in europe. The stoxx 600 up 33 basis points so far. Lets have a look at the individual markets. And its strength across the board, really. We have got some quite important data releases coming up today. In the uk, weve got Construction Data at 9 30 and overall in the eurozone we have produced Price Inflation at 10 00, so that data is coming through. Nonetheless, the market is very strong today. You think that partly comes from the weaker manufacturing data that we had yesterday across the eurozone and what investors are thinking thats going mean for the eurozone meeting coming up on thursday. Its very clear that bonds still think, as they have done in recent weeks, that were going to see further loosening from the ecb on thursday. Record lows continue in europe. 90 basis points in germany. 2. 4 in italy. And those european yields have dragged down yields globally. Uk and the u. S. At similar levels hovering around 2. 4 . Fx rate, we havent seen much. Well be talking to Goldman Sachs people oppenheimer at 10 00 who has recently reduced his forecast on the euro. Today in the yen, a significant move, 40 basis points weakening against the dollar. That has, though, allowed the nikkei to move up to a onemonth high. Coming up, wilfred gets in on the game because hes taking a closer look at the Playing Field for tv football. That is the battle between sky and bt leads up. Hell be telling you all he knows about this. This is a familiar set for british football fans. The sports gamble paid off . Join me after the break to find out. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com hi, everybody. Welcome back. Apple has reportedly fixed a bug in icloud that could have let hackers leak celebrity photos. The login page was found to be vulnerable in which attackers try multiple password toes gain access. Most sites lock out users who enter multiple passwords. Apple is saying, though, that it takes user privacy very seriously. They have to. Big issue. Huge issue. Now, september has a reputation as a very bad month for markets. The s p capital iq says 20 months since 1987, september makes the list four times, 2001, 2008, 2002, 2011. If you go back further to 1945, september has only ended higher 45 of the time. The worst showing of any other month. Psychological pressures of the big round numbers on the s p 500 and the looming end of the feds asset purchases could reinforce the september stereotype. So should you be selling in september or do you think the rally can carry on through . Tell us what uveng, worldwide cnbc. Com or via twitter, cnbcwex. Troubled premier league giant Manchester United dominated football activity as the deadline slammed shut on monday. Manu spend more than 140 Million Pounds in total. Teams across the league spend a total of 835 million euros. Surprising rival sky in the process. Having paid 738 Million Pounds to broadcast 38 live premier games this season, they changed the pay tv by offering matches for free to its broadband subscribers, setting up, the sports channel has cost bt in the region of 42 Million Pounds. I spoke with the head of Bts Consumer Division to find out. Its been very successful. If we look back a year ago, we wouldnt predict the success weve had. We have 5 million customers. The business is performing very well, as well. And whats the main rationale for it . Is it purely to drive broadband descriptions . Well, the man rationale comes back to the opportunities that we saw. What we saw is in the british marketplace, roughly one in five households describes bskyb sports because the process at that time was so high. You look around the world and around europe, the typical figure is roughly one in two households. So its a huge market that struck out as being a big opportunity to give sport back to the people and create a bigger marketplace for premium sport. So far, you dont charge directly for the sports conflict. He just spent another 900 Million Pound on Champion League rights. Yes. Will you start charging for those games . We had said for Champions League and games, there will be a charge. Would you say youre predominantly a Television Company or a Telecom Company . I think the notion of those categories being separate is probably a vestage of the past. Increasingly, they will c converge. The transmission of high width band data content, these worlds are really converging. Were talking now about thinking, as youre saying, about telecoms and television and video altogether. Yes. How important is owning content for a Media Company in general . I think it i think it is pretty vital because it comes down to a strong reason for people to stick with you. Its such a competitive market. Its an extremely competitive market for broadband in this company. Its why prices have come down. To have something in the nature of sports content gives customers a great reason to stick with you. Were joined now by nick. Has the for ray into the sports world paid off . Yeah, absolutely. If you look at the statistics, off the launch of tv, its gone from around 50 a quarter to around 70 since thief laurchbled. Its losses have fallen from around 130 to 200,000 a quarter to around 50 . But it has inflated the cost of its largest competitor. And its you know, theres really know question its done what it was supposed to do. And as we look at this now, what is the next stage . Its costing 2 billion pounds. Theres got to be more to come if this is to be seen as a success in the longterm. I dont think so. I think this is a strategy to compete in a telecom business, a telecom strategy. Its really designed to bring customers back to the company, would increase its market share. There is a Network Effect of having multiple products for customers. This helps the Network Effect. So, really, i mean, there is a mobile strategy coming, as well, later on, so there is a multiple customer strategy. But i dont think its something that i dont think that bt is going to become a prolific content provider anytime soon. I mentioned it today because john pettit said theyre going to start charging for the Champions League viewers. Theyre trying to make money directly out of the content. Absolutely. But i think its still a very small part of the Company Relative to their network access. I think generally speaking, we have a cautious view in large companies. Companies do well, the reason for the success for this particular strategy is its been very focused. Ahead of those specificics and objectives, which a broader tv strategy would dilute the thing. Taking on sky is still a big still a big take on. How do you view it, tim . Well, this is a global market. You can see its still being talked about, moving certain type of spots around that stage with that content. I think if bt have got their numbers right, this experiment two years into it, clearly, theyve gone the numbers. And they can afford to pay what theyre paying. These numbers never seem to get smaller. The picture of broadband is not just about soccer. Its a much larger issue. These numbers do keep getting bigger. Surprise inflation in football both in the transfer market and also in how much forecast. Its astonishing. Its only going to rise in the future. Its paid about 300 million a year for the Champions League. You know, given the relative importance of premier league versus Champions League for uk customers, that really indicates a large inflation. Bt kind of falters to pay. It has large cash flow. Its unpaying a relatively small amount of its dividend, a very small cash flow dividend. For me, theres a high probability of inflation, the next premier league auction. Its interesting, as well, that yesterday we saw liberty mobile who lungs with igt. Do you think theyll try to move more content Going Forward . I think thats realivic. It is content which you need. Its a complete reconstruction over a fiveyear period. And clearly its one of the few objects there to be picked off if that is where it should go. I think the market is pricing it accordingly. Thank you very much for that, tim. Tim stays with us. Now, while footballs busy wheeling and dealing, some of the worlds biggest stars are taking part in a charity match. It was organized by pope france. There is no devine intervention, though. The popes team lost, 63. You kind of want the pope on your team. You think you would. But it didnt work out in this particular case. Maybe they need to practice more. Practice some goals. Still to come here on the show, the italian eye wear giant sees changes at the top. That has been speculated. Do investors like what they see . Well get the latest live from milan. Youre watching Worldwide Exchange. Good morning, everybody. Welcome back, everyone. Russia says it will review its next military strategy as nato is on its borders. The euro hitting fresh 12month lows, sflirting with a 1. 31 level against the dollar as investors bet the Economic Outlook in europe will prompt some form of action from the ecb. And luxottica shares under pressure in milan after a management shakeup. The chairman tells cnbc hes always played an active role in the business. And apple may have fixed the bug that may have allowed hackers to gain access to icloud accounts and leak nude photos of hollywood celebrities. Hello and welcome back to the show. Were getting breaking news at the moment. Uk Construction Data is out and its the strongest in seven months. Construction output in britain grew at the fastest pace in august boosting job creation and putting a strain on suppliers. Well have a quick look at what thats done in the currency markets. A slight tick up in sterling. Nothing too significant so far, though. Construction pmi for our guests rising from 64 versus 62. 4 in july. The right ers poll, quite a bit stronger. Im looking at a couple of greece flashes here, wilfred. Greece is stating it expects debt relief talks to sta