President obama and chinas xi jinping reach a deal on climate change. Lets update you on the banks charges as we just head to the top of the headlines the uk levied fines against ubs, jp morgan chase, citigroup, rbs, hsbc and barclays. As you can see, the stocks in general off, but only off slightly. Barclays is not included in the fines as it was working with the fda on an fx settlement. Sources told cnbc it pulled out after issues with the u. S. Regulators. Thats why the u. S. Regulators are holding a press conference at any moment. Joining us now, marc ostwald. Heel ya is also joining us in studio to give us more on what just happened. Also, i would love to get to know your biggest take away on the fines that have been charged. The consult temperature still has major, major hurdles and i think everyone would degree. Weve been the chairman of ubs talking about the culture still hasnt repaired problems still within the Investment Bank and lots of action needs to be taken. Remember, we have been talking about the fx probe for a while. We had expected a fine in terms of the uk authority of around a billion pounds. Its come in just above that for the uk. The exception, though, of course, is whats happened with barclays. They pulled out 11th hour and we understand thats because of an issue they have had with the u. S. Regulators. Remember, the u. S. Is not just one regulators, there are a whole bunch of regulators, including the dfs and the head of the dfs well know in this country because its benjamin lousey. And from what i understand, theres a bit of jostling in terms of fines and in terms of payments and barclays is thought to have decided that it was in their best interests to first deal with the dfs before signing an agreement with anyone else. Barclays down about 2 on the day. You cover a lot of these banks. What are your thoughts on the fines that have taken place . Will this be enough for banks and regulatory forces to come in and ensure these type of manipulations dont happen again . There are two things. One, looking at the fines themselves, turret part of the fine is much, much greater than the actually breach part of the fine. And looking at barclays, it is an interesting situation, i think. I think if theyve been looking at a fine that was reasonably close to the provisions that they set aside against forex, that they would have they probably would have taken it. My function is that, actually, the potential fines they might have been looking at would have been greater. Uk european regulators, they were in the same point and as we saw with other banks, the issue was what happened in the u. S. Remember, this is the biggest fine ever leveled by the uk regulator. In fact, a press conference that were about to head to that weve been talking about is really the first style of press conference were seeing from the uk regulator. Very similar to what we have all the time in the u. S. With regulators coming out and now saying the results of these major probes, the uk has led on the fx probe. Remember, its a 5. 3 trillion dollar business, 40 of it goes through london and the fca has really led on it. Mark, i want to bring you in here. Is this politics on these fines . There has to be. It has to be seen this is a prosecution which is full force. However, we do need to be a little bit careful here. Regulation is getting extraordinarily heavy handed. We are destroying what id call the processes of Financial Market intermediation, i. E. , Market Making and underlying market liquidity. And in the long run, that will push more and more money into the shadow Banking Sector. Secondly, i think people also need to remember in the case of the uk, the Banking Sector has been a major contributor in some facets. The huge volume of fines is not just for this, but for all the other things that have been levied on the Banking Sector will be deducted against future profits for very long time just when the uk budget needs more revenue. George osborne has collected a nice 2. 3 billion pounds thanks to libor and fx. This is money that until 2012 would have stayed within the Banking Community because the regulator would have kept it like in the case of the u. S. And would have used it to lower fees for regulated businesses, but thats changed. In fact, the uk regulator, the fc as weve just told you is speaking now. Lets listen in to what they had to say. Thank you, martin. Martin, has the microphone just to make sure we can catch you. Two questions. The banks that havent settled in this helm, can we expect to see greater punishments for them . Is there any advantage and secondly do the firms that weve expected now, does this represent the defenders or are there more to come . The settlements we reached today with these five firms, we have said in our presses this is where we found the worst misconduct and the program work which martin referred to that were putting in place across other firms will ensure that they put their victims in order. Clearly, its not possible to speculate as any subsequent investigation that might happen. Okay. Thank you. Is there a way of estimating how much activity and how much profit banks made from it . What weve found in the notice we sent out is that the system controls attempts to regulate markets. Sometimes that would have been up, sometimes that would have been down. The ability to quantify that for individual clients is, frankly, not really practical and which is not something that is for our case which is around the way in which our traders were controlled. That was the fca press conference. Well be going back to it over the next hour. How did this impact the upcoming earnings season . Do you think these banks have enough cash set aside to build up these fines . We had bofa as well as citigroup. What are you expecting next quarter . Well, i mean, next quarter and also the past several quarters, theres been a pattern that the fines seem to be pretty close to the earnings, the profits that the banks generate. What is interesting is the banks fines are a decent earner for the government. Its obviously not a quid pro quo. What would be very interesting is to see the actual methodology by which these fines are calculated and how it really hails with the actually penalties. At rbs, three people have been suspended, six people are currently being investigated within a disciplinary process and 50 people are taking part in the overall internal probe thats going on with rbs. But none of the kind of protections that are offered to the banks through this deal is offered to those individuals. So if they are found guilty individually of misconduct or illegality, the fda will go off with them. I think criminal investigations can still be brought. We know what the size of the fines are. Theyre not big for the longterm future of thinks banks. They did announce they will carry out super remediation programs for firms to drive up and market. They dont know if theres an end in sight for all the spread tech. I think thats one aspect. The first aspect is if youve got the regulator bothing down your neck the whole time, the likelihood is youll shy away from a lot of bit a lot of times. There would be people who will widen spreads out as a result. Secondly, as you say, if this goes on for a very protracted period, the damage will become intrenched. Thats not a good thing, particularly as we go into a rising retirement environment. What is the debate about whether regulations in the u. S. , for example, against Market Making have made liquidity so low that you get this incredible volatility. I think in terms of the ongoing process for banks, they have half of the accounts in london probably sitting in their offices controlling for ppi claims or Interest Rates or, remember, the big fines that goes against retail customers that this is a smaller amount individually when you look at the banks. Remember that on ppi, the uk banks have faced over 20 billion pounds worth of charges. Thats a much bigger quantity than were talking here. And does that change your indicator on these individual stocks . In some ways, no. Ive been quite pessimistic for quite a while. But its worth noting that the language the fca is using in the Statement Today about forex is really all about changing the culture and the Trading Floor and making it a fair market environment for, you know, small investors and retail investors. Thats probably, in part, a lot of change in terms of the actual processes, but its really hard to pin down in terms of what rule to follow and what rule to not follow kind of thing. And especially if there is further cultural change. Were going to leave it there. Sandy chen, marc ostwald, thank you for your time. Give us your thoughts, as well. Worldwide cnbc. Com. Keep in mind, the s p 500 financials index up about 10. 3 in line with the s p 500. Wilfred. Lets have a look at european markets. So far this week, weve been eking out gains, not really based on any fundamental positivity. Today, that has rebounded the other way. We did actually have very, very slightly down at the open and it has got worse throughout the course of the trading day. Were down 0. 7 . Not that surprising when you talk about the volatility, also the uncertainty we have ahead of the uk releases today, some European Industrial production later today and eugdp later this week. Were down 0. 7 on the stoxx 600. The stoxx 50 is down 1. 1 . Some of the bigger cap stocks suffering more. Lets look across the different bourses in europe. The ftse 100 is down 0. 4 . Germany is down 1 . France down 0. 85 and italy down 1. 76 . Well bring you some news out of the banks earnings stocks in italy a bit later. But as you can see, these huge fines levied on the banks but only slight withdraws in the european markets because the bank fines were expected. Lets move on and look at bonds. Were at about 2. 33 on the u. S. Tenyear. So far in november, weve been range bound between 2. 3 and 2. 4 . So its a little less of a risk on trade than we had in september, but a little more of a risk on trade than we had in october. Germany, 0. 81. The uk 2. 22. Lets look at forex rates and theres not much happening in forex, as you can see. The u. S. u. N. Paring at 1. 2463. We will go and join sri now for an update. No, we wont. In fact, well be getting an update on asian markets a bit later in the show. Seema. Thats right, wilfred. Now, coming. On this show, as the bank of england looks to get set, we ask adam rosen when he thinks the Central Banks should raise rates. And can disappointing retail earnings take a out of the market . We look ahead at jcpenney and m macys. The japanese nikkei has touched a sevenyear high on hopes that Prime Minister abe would look at tax hikes but a government spokesman deny that a decision has been made. Sri is now live from singapore with the latest. Sri. Hi, seema. That is one of our top stories today. The nikkei at the close has backed off from those session highs and backed off from the sevenyear peak. Youve got to ask yourself as a distinct lack of charity over whether the japanese government will post the sales tax hike and the market is also trying to get a handle on whether Prime Minister abe will call a snap on election. That is why they came off their highs. I do want to say in terms of the deciding factor, its going to come down to the Economic Data. In particular, Third Quarter gdp. That could be the deciding factor that could really decide whether the government will go ahead with that tax increase. It could imply that the japanese government, the japanese economy is not able to hold that tax burden. The yen, as you were talking about earlier, it has backed off from sevenyear highs, as well. Once again, we are getting some very confusing signals from tokyo. And thats forced some in the currency market to step back from the cross, including nomura. They were out with a note yet yesterday saying we are inclined to profits on long dollar yen positions. Expect volatility over the lack of clarity over whether well see a sales tax hike or not. Back to you in london. Byr burberry shares falling 2. 3 . Sainsbury is off the best part of 5 . Sainsbury has announced plans to cut cap ex costs in order to roll out discounts to consumers. They forecasted lower profitability in the first half. Boosted by a partial business, however, the ceo has remained tight lipped over government sales. You can see its off just over 0. 5 today. Annette is in frankfurt with all the details. Just after the market opened, the stocks were the biggest losers here on the german equity market and that is because those numbers, as good as they look, are missing expectations, at least when it comes to their revenue and also there are ebit. So its a mixed bag, although the company is setting its 2014 and there is some likelihood of a dividend next year. The ceo was hinting at thinking about a special dividend. Yesterday, we have that story from reuters that the German Government looks into privatizing part of their stake or selling part of their stake. Take a listen at what he had to say. What the government said is they had no plans for this terms of the government. You know, this is at the moment speculation more than reality. So we have not seen any major impact in the last year. We dont know, either, what their plans are. Now, utility giant eon posted better than expected figures for the First Quarter. Its up 0. 85 . Annette is still with us with mop more on e. On. That was a surprise Market Reaction approximately looking at the numbers, there is a drop in net profit, a drop in revenues and the down side factors weighing on the possibility that e. On is still intact, like the lower wholesale prices for electricity, the access to new practice, and also, of course, they have business in russia and the big ruble is weighing on the earnings, as well. But i guess up theside potential for the shares today is that e. Onhas beat expectations. That is something which has not been happening quite often in the past, ever since the German Government said they were going to exit in particular. They are also saying they are boosting Renewable Energy outlook on their own. Back to you. Annette, thank you very much for that. The market not reacting well to that. Banjo popolare down 3. 2 largely due to bad loans written in the third quart he. Unicredit off the best part of 3 . This is helped by a stake sale which took place earlier in the year countering a drop in income. As you can see, the market is not reacting strongly to any of these results, down 4 . Now, claudia is in milan with more on all of those results. Good morning. We are seeing the markets spenlize some of these banks. Banco popolare, for example. But the two largest banks, both in terms of bottom line were able to improve versus last year. In terms of top line growth, unicredit did worse in top line growth. But both of these banks this morning are suffering. In terms of bottom line, they have increased their proinvestigation that they have held in the last year. The dividend seems to be in focus where they would be reconfirming their dividend that they expect for the next four years of 10 billion years total. Nonetheless, these stocks are still down, all the banks suffering, putting this italian market on a worst performer in terms of the rest of europe. But earnings in general have been quite tough so far, even in other sectors. Higher this morning by 7. 17. Back over to you. Thank you, chaud ya. Still to come on the show, mark carney prepares to take the stage with a more dovish tone. Thats you after this break. European and u. S. Regulators hit five banks with fines after a yearlong probe into fx manipulation. Uncertainty surrounding barclays sees its stock head lower. A week russian rouble takes its toll on ale. In the green, its ninemonth earnings beat expectations. Degree to disagree, president obamas and chinas xi jinping reach landmark deal on climate change, setting assign differences on protests and human rights. And welcome back to the show. We are waiting for some data out of the uk. But jobless data, unemployment data and an outlook from the bank of england, were just having a look into that at the moment. We were economists had expected the jobless rates to fall to 5. 9 the . Were just waiting for the number to come through on the wires as we speak. And european markets, they are trading in negative territory. The big focus today has been the unemployment number coming out of the uk, which were just looking at it right now for second came in at 6 , which was the lowest level since 2008. So, again, showing some signs of recovery in the labor market, that, of course, has been a focus for investors. The uk jobless rate, which was expected to fall to 5. 9 has remained unchanged at 6 , that fall between july and september. But had expected to fall slightly. Which matches its lowest level in six years, that data coming from the office of national statistics. We also had average weekly earnings, excludeing bonuses, which rose by 1. 3 , picking up speed from an increase of 0. 9 in the three months to august. So Wage Inflation slightly higher than the previous reading, which is obviously good to see that kind of data that has been soft in recent weeks in the uk while unemployment still at the same level of 6 . Also waiting for the bank of england forecast, which havent come through so far. Inflation forecasts and growth forecasts, just that unemployment data so we will go to simon wells, who is a uk economist at hsbc and joins us now. Simon, a little bit of a pick up in Wage Inflation which is good to see. Unemployment rate staying as it was at 6 . Whats your take on the data . I think the Unemployment Rate was a surprise. We and most of the market were expecting another drop to 579 . However, 6 , its still good. Its still a little bit better than the bank of england was expecting just three months ago. So theres still a little bit of upside news for the bank. And, yeah, wages, they picked up, but again, not as much perhaps as we were expecting. Youve got wamgs, including bonuses, at 1 . Real pay is still being squeezed. The alarming thing is, it looks like unemployment has risen. While the bank of england was expecting a slowdown in the economy in the second half of the year, certainly wasnt expecting unemployment to start to rise again. So, perhaps were getting slack in the markets to wid