September, something 0. 9 . Barclays expecting italy might not exit recession before the First Quarter next year. Lets move on and give you a reminder of our other headlines. Germany and france avoid falling into recession in the Third Quarter. Gearing up for a showdown, the australian Prime Minister accuses the russian president of being a bully while the uk warns russia of further sanctions. The eu says a Corporate Tax deal between starbucks and the dutch government may have been illegal. Rallies to the top of the French Market after the Telecom Giant lifts on better than expected sales in the Third Quarter. Hi, everyone. Im seema mody. Coming up on todays show, as Oil Prices Hit a new multi year low, the uk ambassador tells us what that stake means for petro bass. We hear from a tech startup hoping to make a connection in emerging markets and paris residents are on the high alert as a tiger remains on the loose. The latest on the hunt, coming up on Worldwide Exchange. Announcer youre watching Worldwide Exchange wsh bringing you Business News from around the globe. Good morning, everyone. Lets recap the italian gdp data. 071 . That was the contraction that the economy saw in the Third Quarter. That was in line with expectations. The country is back in recession and many analysts out there expect it will remain in recession until at least the First Quarter of 2015. Year on year, we saw a decline of 0. 3 . We got dismal nebs out of italy as of late. 0. 9 decline in Industrial Production for september. Expectedations were pretty low. Unfortunately were not seeing a positive surprise for italy today. Euro dollar, 1. 2564. You can see that data off the back of germany and france who have narrowly avoided falling into recession with both economies growing marginally in the Third Quarter. Annette is in frankfurt. Lets start with you first. That was pretty much in line with expectations, what we saw now when it comes to First Quarter gdp here in germany. Its flat lining. Looking at what has driven that no Growth Scenario here is that consumption was up significantly whereas investments had a serious slump. So in order to get the German Economy on track, the German Government has to set the Economic Policy ride in order to incentivize corporate to spend money again in germany. Looking at which kind of investments are dropping the most, it was capital expenditures, so key investments which were significantly lower in the Third Quarter. Economists are now saying that, well, that can be blamed quite a bit to those geopolitical tensions, insecurities surrounding the World Economic outlook because, of course, german corporates are not selling the products predominantly here in germany, but elsewhere. And that is also what the German Government is following that narrative, that emerging markets are slowing and that is weighing on the German Economy. Barclays, interestingly, has upped the gdp forecast for this year today to 1. 5 for germany. Annette, thank you very much. Stephane, how much the french gdp . Well, it grew faster than expected in the Third Quarter, up 0. 3 . The government is facing an intriguing pressure to put on some structural reforms. But if you look at the breakdown of the gdp numbers, it showed, in fact, that the main driver was Public Administration and there are still a lot of weaknesses in the french economy. For instance, Consumer Spending grew by only 0. 2 in the Third Quarter. Its weaker than what weve seen in the Second Quarter and that is important because its traditionally the biggest contributors of the french gdp. Investment is not doing well again with a contraction of 0. 6 on the quarter. Its the Fourth Quarter which has declined for investment in france. And that of course is a bad signal in terms of labor market, considering that investment is usually a way to create jobs, trade balance also has a negative contribution. French exports increase in the quarter and at the same time imports increase even faster which makes a negative contribution of 0. 1 . Despite all these events, the final remains confident that the economy will be able to expand by 0. 4 in the last quarter of this year. Of course, its really optimistic, much more optimistic, for instance, than bank of france which is targeting for the Fourth Quarter 0. 1 growth for the gdp. Thank you, very fan. Joining us now, john hardy from saxo bank. John, a miss on Economic Data this morning. How are you making sense of it and how do you think you should trade on the euro . Were not seeing a big break there. No. I think these gdp numbers arent particularly interesting. Here we are midway through q4 within 0. 1 or so in large part to expectations. So what im really doing is looking forward and its all about signalses on the ecb for transition to qe and to which theyre able to grow the balance sheet. In terms of where euro is headed in this lasted round of dmk data. Thats where my focus is as well as whats going on with the japanese yen. Overnight, we had mr. Noyes saying we cant rule out qe in terms of Government Bond buying and yesterday we have news from the bundes bank. Any news on that front . No. And i think that is the key tension we have here Going Forward. We have draghi, who is clearly dovish and did a tremendous job of making the dovish case this last ecb meeting, facing off against the foot dragging german bundes bank. And as long as the tension drags on, i think its resilient rather than trading in a range versus the dollar. And especially when you look at what japan is doing. The risk is the euro trade stronger. If you look at the euro compared to the yen, its a big break there, could lead to further gains in that cross. We had spanish gdp 0. 5 . Ireland showing green shoots of growth, as well. Germany today just escaping recession. All that together, is it enough to create further rhetoric and prevent earth easing. . As long as they flat line, they may turn to drag their fee. And the core is very much dead in the water. That faceoff between whether the germans work to draghi position or how that gap is closed or not is the critical factor here for the euro. John, mario draghi says he wants to revive the european economy. That hasnt happened yet, but the euro has against the dollar. The weaker euro hasnt fueled exports yet. When do you think that will take place . Well, we dont need a weaker euro to fuel exports. The problem is in germany, the consumption is what we need germany to move towards. We need workers to get paid a lot more. And build up what is a massive current account surplus with the rest of the world and with europe. John har did, thank you for your time, fx strategist at saxo bank. Lets update ow what all this data means for markets. Markets did open about 30 basis points. Germany was kept out of recession. The stoxx 600 is flat. Lets have a look at the stoxx 50. The bigger cap stocks fractionally better than the midcap stocks. But overall, very much a sense of struggling direction for European Market. Lets dive into European Markets. Germany in the green, fractionally after it just avoided recession. Just in the red. France also which has 0. 3 , slightly better than germany in the green and italy 0. 83 . Perhaps taking some strength from the data although it did come in line with expectation. Overall eurozone gdp due at 10 00. A small rise to quarterly revenue, construction activity, managing to beat analyst expectations, it bounced 3 . The fed quarter net profits fell and warned the full year results could be hit by additional costs for the a400m military program. Nokia is down 1 57 . It did lift its longterm target saying it expects the business to grow in 2016. Overall, investors uninspired by those results. Tesco is up 1. 36 . After hsbc raised its rating on the uk growth. The bank raised its prime target to 240 from 195 which of course has been struggling. Looking at bonds, we saw u. S. Bonds coming up, a fraction as the 30year auction didnt go quite as expected, but nonetheless covered. And yields in general across most of the major markets are much less volatile in october than they were in november. So far today, relatively bearish move towards but we havent seen the same move in equity markets. Lets look at kinosi next. Oil has been in focus for the last few months. Nymex, now 74. Brent bounced back a bit, 0. 5 today. But, of course, still below 80, significantly weak. Gold is set for its third week of falls. Lets check in on markets in asia. Sri jegarajah is standing by in singapore with us as ever. Sri. Very good morning to you, wilfred. A patchy session in asia as we wrap up this week. You were talking about oil at new fresh fouryear lows. That has hurt the lovely Energy Council in the region. I want to highlight the great china market and japan and pitch you forward to next week because its going to be critical for these two markets. The Hong Kong Shanghai stock connect, linking up these two exchanges will go live on monday and makes its debut. A big uncertainty around the tax regime governing this program. They have got a degree of clarity now from the Chinese Finance Ministry saying it will exempt Capital Gains tax for three years on investments to the hshares after the Hong Kong Shanghai stock theme. In my mind, thats going to encourage even greater participation in this program now which, as i said, launches on monday. We could see a degree of volatility because, remember, theres a lot of foreign hedge funds that are raring to go here. All that liquidity creating the choppiness in the markets. Whether it will go ahead or not. If it is the dog of a number, it could if i am the case for postponement of that tax hike. The other factor next week is speculation fulging in the markets about Prime Minister abe and whether the administration will call a snap election. Theres a lot of talk that he could very well dissolve Parliament Next Week and call that election. Dollar yen get ago strong bid, as well. Well be watching that one for you next week. Back to you now. And many analysts say this hasnt been priced in fully yet. Coming up, we cross live to the g20 summit where well speak to the new zealand finance minister. Stay tuned. Well be back in two. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Tax avoidance in the russia uk crisis are set to dominate the agenda. Good afternoon to you. Good ash afternoon, wilfred. World leaders are arriving here as we speak. We just had the spanish Prime Minister touching down a few minutes ago. Were still waiting for president barack obama. He touches down tomorrow morning. Vladimir putin very much in focus today along with security issues. Hes touching down later on this evening. Were lucky enough to have will english, the finance minister of england and he just literal this moment walked out of a meeting of 50 of the attendees at the conference today. Welcome. Good to be here. What were you talking about in this meeting . Were going through the issues that the political leaders and had focused on the need for structural reforms. There has been a lot of discussion over the last few years. So the australians have done a good job talking about what it takes for growth and support. Also for trade and there are some indications are a bit of a freeing up now and why people are talking about trade, were getting more agreements between the u. S. And india about from the bally discussions. So it was all pretty positive, actually. Hes fairley convinced that will be signed in the next few months. What do you think . There is a lot more Energy Around it now and were hoping that the g20 leader discussions, were at the new zealand Prime Minister, theyre going to give it the momentum it needs just to give tilt political will it needs. How much do you think this sessions between the g20 leaders are going to influence those talks . For the loaders to be discussing what they need to get growth. These are leaders that most of these economies are struggling with. Trade is one of those leaders and so every time i get together, get a bit more energy and that will get it over the line. When the g20 came together in a time of crisis, what do you think has changed since then . Whats changed . Time and time again, for just being a talk fest. Well, look, the australians have done a good a job as anyone to turn it into a focus on the discussion for accountability. Theyve made and produced our Growth Strategy like everybody else. So its a bit of a and its a bit of a discussion matter to see progress on trade as the development of the Global Infrastructure seemed to put the australians and its fast looking like a g20 thats moved out and dealing with the real issues of creating growth in the longer term. Lets talk about one of the key issues thats coming out today. A lot of this has to do with ukraine and russia. The russia president is flying in later on this evening and will take part in the g20 discussions. Is this the right decision to make . You mean for russias participation or thats correct, yes. Its a g20 article. Its a oneoff participant, we certainly wouldnt suggest to the g20 they do something else. But it shows value to the institution where you have this Multi Lateral instingts. It cant do any harm to the situation in the ukraine for the russian discussions going on around them. A quick question purely on new zealand, there must be a real concern for you at the moment. Theyve halved since february. They have. But we are a resilient economy, we are looking at 3 growth over the next three to four years. Okay, all right, its a pleasure to have you with us today. Thank you so much for joining us. Were now joined by carrie craig at Morgan Stanley asset management. The Prime Minister of your country there, but lets move back on this side of the eurozone. Weve got data that continues to show that were not contracting, were not growing, either, but were simply stag nating. Youre saying that were all too pessimistic . Yeah, particularly of the summer, it was a little bit overdone. Obviously you have weak data coming in from germany. There was concern particularly that germany was falling back into recession. I wouldnt get too excited for the figures coming out today. The competent sfot at any great pace. These are things that often get overlooked in the press. A little bit of demand to check out. You have a weakening euro at the same time. And coming back at all, you have austerity that we did a few years ago. All these factors suggest the tension in market youll see some improvement. Lets dive into the reasons why youre more optimistic on europe. It is a turn up in the credit cycle. A recovery, we use that term loosely for the eurozone. We havent seen any expansion or lending from banks. Quality review. The ecb bank lending, the last three quarters, theres been a steady improvement for demands and houd holdes and corporate. Its been easier since 2007 to get loanes from banks at this point. Its a marginal improvement. It is still negative, back towards positive territory. Ultimately, the growth for the eurozone in the coming years. Bank lending still at very low levels to help it boost bank lending. Outperforming up about 3 to 4 . The european index, down 3 to 4 . A time of that has to do with bank lending. We should see more transparency and more clarity towards the financial figure in the eurozone as you have the ecb take over the single supervisor just this month. They want to make sure they can to instill what has been lost over the last few years. Thats great, but that improves the demand side of inflation. We heard them talking about the structural reform at the gdp and the bcontina that is needed there. With things like the jobs act in italy or some improvement in spain and, in fact, a weaker growth out of germany might change the mindset of some politicians there that they loot their own and they start to actually some reforms will be needed there, as well. Well be waiting for that. Thanks for your time. So as the eurozone struggles to grow and g20 leaders are scratching their heads about how to create jobs, we want to know from you, are you seeing growth anywhere . And really, it could be anywhere. Are you seeing longer cues in the super markets . Are you seeing any growth in your paycheck inspect are you seeing growth around your waistline or are you seeing growth in facial here with the person sitting next to you. Tell us if you are seeing growth anywhere around you. If you want to join the skais conversation here on Worldwide Exchange, get in touch with us, worldwi worldwide cnbc. Com. Or on twitter, cnbcwex. The waistl