All of the new income and wealth is going to the top 1 . Global oversupply means Lower Oil Prices are here to stay. Thats the warning from the russian minister in an exclusive interview with cnbc. One has to get used to it, learn to live with it and to work taking these conditions into account. And we get the keys to the ikea house as the ceo tells how europe can get its swagger back. The picture that we have is that europe certainly is back and maybe the perception is lagging behind a little bit but reality is that were seeing quite good times here. All right. Lets dig deeper into the jp morgan numbers. A disappointing Third Quarter and revenues missing forecasts. Profits were lower in three of the key businesses. Total income rose 22 but this is thanks to one of tax benefit. Jamie dimon said they faced a promising global environment. Now other financials set to report today, bank of america, black rock and wells fargo, theyre out before the bell and citigroup and goldman will release their Third Quarter scorecards tomorrow. Lets check in on jp morgan shares and theyre trading lower today in frankfurt, echoing the after hours session and we were pricing this in as going to be a tough quarter for the big banks in this low Interest Rate environment meaning that net interest margins are narrow but this is just a roll out and just a start of what were going to see from the other big banks in a tough environment. You might be right. Especially in the volatility weve seen over the course of the Third Quarter. To some extent volatility is good because it drives higher equity trading but what we saw happening this Third Quarter depressed fixed income trading and Equity Capital markets, Debt Capital Markets activity, that was lower than expected. You have bright spots in terms of advisory but can that rescue the rest, im not so sure and what were going to see from the likes of Goldman Sachs and the european banks when they report the next couple of weeks is depressed earnings coming from lower revenues. Deutsche bank says 8 out of 13 banks should be seeing compression when it comes to the net interest margins but its all the cost savings right now. You heard theyre shrinking their balance sheet. That means head count reduction. So 40,000 since 2012. Its not a healthy environment for the big banks. Theres a good reason why jp morgan is doing that. Theyre becoming smaller and a lot less complex. They want to reduce the capital surcharges. Currently its 4. 5 . They want to get to 4 . So that is a pretty good move though on the other hand you have to wonder to what extent theyll be chopping off some of the business that make them the most money. So thats always the big trade off, isnt it . Yeah. In this Regulatory Environment where you have to hold so much more cash just as defense and really all sort of software environments. I think its tough to be a bank, right . It is tough. Yeah. Also worth noting the outlook for the Fourth Quarter. They talk down expectations for the Fourth Quarter. Usually you do. Thats true. But this Fourth Quarter there could be a lot of volatility with the potential fed hike. Maybe not. But we know that the end of december is usually pretty quite so always a pretty quite quarter. Jp morgan says its going to be quiter than that. And just the beginning. Only the beginning. We have more coming out. Lets talk about the big story as well and a lot of people tuned in to watch cnn for the democratic president ial candidates locking horns in their first televised at the bait of the 2016 primary season. The front runner on stage, there you see her, Hillary Clinton and Bernie Sanders both garnering strong reviews from pundants. They disagreed on where to look for an example. You see every other major country providing health care to all people as a right except the United States. You see every other major country saying moms when you have a baby were not going to separate you from your newborn baby because we are going to have medical and family paid leave like every other country on earth. Those are some of the principles that i believe in and i think we should look to countries like denmark, like sweden, and norway and learn from what they have accomplished for their working people. I dont think we should confuse what we have to do every so often in america which is save capital i feel from itself and i think what senator sanders is saying certainly makes sense in the terms of the inequality that we have but we are not denmark. I love denmark. Were the United States of america and its our job to reign in the excesses of capitalism so that it doesnt run a muck and doesnt cause the kind of inequities that were seeing in our Economic System but we would be making a grave mistake to turn our backs on what built the greatest middle class in the history of the world. Just one of many interactions last night on stage in las vegas and yeah the clash on many things i think there was moments where the rest of the field tried to attack Hillary Clinton but it was very obvious who was the front runner in this. You still think it was hillary . Definitely. A lot of people think it was Bernie Sanders. Have you looked at the polls this morning . Hilary on top and she spoke most of the night and most of the attention went toward her. It was also a more conservative debate compared to the republican primaries, right . The televised debates which had a bit more slander and finger pointing, possibly more personal insults. This was a little more polite. Definitely but then you also need to keep in mind that the democrats actually agree on a lot of issues in contrast to many of the republicans. What they agree on is for example race taxes on the wealthy, regulate guns. So there was a little bit of sparring back and forth on syria and the gun laws, et cetera, et cetera, but by and large that was a very contentious debate between Bernie Sanders and Hillary Clinton. She accused Bernie Sanders of not being tough enough on gun laws. So there was disagreement there. But they agreed to a much bigger extent than the republicans do and this debate really didnt shake up the race. It didnt move the needle too much. We know that clinton is still the most polished. Shes the most experienced obviously in terms of debating. Bernie sanders attacked big corporations, inequality, that wasnt a surprise so it didnt leave me with a lot to chew on for the next couple of days when it comes to the polling and we know that going into this debate clinton lost a lot of ground. She lost about ten points in five days alone versus Bernie Sanders. But the polls afterwards say she put on a strong performance. Still leading in the polls but the big question mark and the elephant in the room is what was joe biden doing last night . Im sure he was watching intently but when is he going to dip his feet into this race if he was watching saying maybe he has a chance against such a small field and an obvious front runner right now. Be sure to tune in when cnbc hosts the next republican debate. That will take place on october 28th and, yes, we have the trump back on stage. Donald trump was watching intently last night as well. Oh, he was. And he tweeted. Do we have the tweet up. He said sorry theres no star on the stage tonight. I think thats lame coming from the real donald trump. I would have thought with all of his verbal attacks in the past he would have come up with something more ingenious. Like what . I dont know. Im not him. I dont want to be him. But didnt blow it out of the water. Mike huckabee said i trust Bernie Sanders with my tax dollars like a trust a north korean chef with my labrador. Defense secretary ash carter said talks with moscow were, quote, constructive debate saying it will not alter its own air operations or cooperate with the kremlin given russian support. In moscow they asked Vladimir Putin about the International Perception of the stance. Thank you for the questions. Mr. President , over the weekend u. S. President obama called into question your leadership over syria. Said that its rather than going after isis. Also said youre running down the economy here. How do you respond to president obamas comments and what would you say to International Investor who is are dissuaded from putting money into the russian economy because of such remarks . Thank you. Translator as we say, you have mixed apples and oranges together. At the military level we asked them to give us the information regarding the targets they believe are 100 belonging to terrorists and what we received as an answer is that they wont do that. Then the second question was asked, please tell us which targets should not be attacked by us. No answer received. What should we do then . Lets get out to jeff cutmore. Based on mr. Putins answer it doesnt seem like theres a lot of coordination. Can we actually expect more, realistically . Well, i hope so because i think what we have learned has muddied the waters around our understanding of how this syrian conflict is being managed not only by the United States, its allies, but of course by russia. One would hope that there will be further cooperation here not just on safe passage of aircraft but hopefully on targets. The narrative in moscow is different from the message being presented so far in washington and i think we need to wait and see whether the white house now feels the need to response to president putins comments so that we might get some clarity on exactly what intelligence is being shared by military authorities on both sides. Moving on from that, when ive been here in moscow i also caught up with the Energy Minister for an exclusive interview to talk about how russia sees the Energy Markets evolving and youll know as the price has fallen the russians have maintained output, not cut it and i asked the Energy Minister whether that policy was about the desperate need for additional government revenue from oil taxization and ultimately about whether it was to drive higher cost u. S. Shale companies out of business. First of all i would like to say that the gas and oil industry is one of the most Important Industries in russia. A lot of people work in the sector directly and the industry is a customer for a large number of companies that supply products and services to the oil and gas sector. Of course our strategy, despite the depletion of our old fields is to make a point at developing new ones which is difficult. Thats why new technologies are used, labor effectiveness is increasing, enabling us to develop our industry and enhance productivity. We maintained our rate pretty much unchanged over the past three to four years but we witnessed a lot of inflow. A lot of shale from the United States. The u. S. Alone has been responsible for an additional 5 Million Barrels a day which is a large amount and the market hasnt been able to process this huge quantity of oil. Do you want to drive those american shale producers out of business . Translator definitely no one has such goals because its all Market Competition and, in fact, theres a lot of markets in the world extracting and importing oil. They now have domestic reduction so buy less from the market. I want to stress again that russia does not exert pressure on the market with any additional supply on its path. On the contrary its supplied by others and the normal growth rate is 1 Million Barrels a day but the supply growth that i previously mentioned is well in excess of that. This additional increase is not produced by russia but by other countries. We aim at maintaining our rate and our share and remaining competitive in tough conditions. It all depends on competitions and the economics of projects. The u. S. Has expensive projects and given the low prices now no investments will go into their field and other countries have costly extractions as well. Its a normal market situation. The Biggest Companies will survive. Increase their labor product activity. Increase their effectiveness. These are the defining factors that influence policy in this environment and competition. Let me finish by asking you, what is your working assumption for the headline oil price over the next 12 to 18 months. Translator let me say in my view if we talk specifically about the figures they will fluctuate in the range of 50 barrel. Possibly 55 to 60 but these doo deviations will be short lived. We have entered a period of quite low oil prices. A large number of factors effected. They provide opportunities to extract more oil. It gives us grounds to say that in this perspective prices will be at low levels. One has to get used to it, learn to live with it and to work taking these conditions into account. Alexander novak there, the russian Energy Minister in that exclusive interview. He did also talk about new taxes that the finance Ministry Wants to impose on the Energy Sector next year. He said if those efforts go forward to raise about 150 billion roubles it could mean production will be effected in 2016, 2017 and potentially 100,000 barrels a day will come off russian output. That is not a huge number in terms of russias total output. But it is worth taking note of and those taxes of course not widely welcomed by the Energy Sector here. Susan, back to you. Jeff, thank you so much. Were going to take a break here on worldwide exchange. Coming up on the program, we take you beyond the studio gates when wilfred frost tries to get some of that james bond swagger. Bond, james bond. Who came out on top . Hillary clinton and Bernie Sanders go head to head in their first televised debate. Plus julia goes mattress testing in ikea but will she sneak in a snooze . Welcome back to worldwide exchange. Were a little bit more than one hour away from the trading session this morning. The stoxx europe 600 were off the session lows but were lower off by. 5 . A couple of factors playing into the weakness. Probably a little bit of profit taking after the strong gains across the globe last week but then also the continued china concerns. We had the weak import numbers yesterday. Today we had worse than expected Inflation Numbers and then we had a couple of disappointing updates from the likes of asnl and not voting well for technology stocks. Off by 1 . Telecons losing 1. 7 . Asnl is a chip maker out there that disappointed with its numbers. Also disappointing with its numbers. Basic resource is the only sector thats getting out a very very modest gain, susan. Does europe need britain if its to succeed in getting its swagger back . Speaking to jeff on the sidelines of the imf summit in peru George Osborne addressed concern that sentiment is rising in the euro zone. The European Union is going to be a source of prosperity. They would judge that by whats going on in europe at the moment. If you think about why did certain countries join the eu, france, germany were ending century old and spain and portugal were escaping tyranny. We actually wanted to modernize our economy and be part of the trade area. So the economic benefits have always been pair mount and they are clearly becoming benefits. Is it damaging Business Investment into the u. K. Though . And preventing companies from hiring right now as they wait for a date to be announced for the referendum . We talk to companies all the time who feel uncertain about what theyre investing in when they put money into britain right now because theyre multinational or International Companies and they want to know where britain stands. Are you not concerned that unless you expedite this process well find that hiring slows investment declines . Well, i see no evidence of that at the moment. Quite the reverse. Britain is attracting a huge amount of the worlds investment and second only to america and china. So we are the Third Largest source of investment in the entire world. Which given our size is no small feat. Were atracking more investment from china than germany, france, and italy all put together. Theres no evidence at the moment that somehow this referendum is hurting things. By the reverse, people see britain as a good place to do business and when they look at what were asking for in this european negotiation i think most businesses would say absolutely. We support britains efforts to make europe more competitive and so people are voting with their dollars and their yen and euros and putting the money in britain. But are you worried that there is a perception heightened perhaps by David Cameron meeting with chancellor merkel . That there is a back door deal being hatched here that will encourage the germans to vote in favor of the u. K. Staying in . That theres an element of spin being introduced to this whole issue of brexit . I dont think so. In the end the british people will decide. It will be found out. Mow lets get to a man that certainly has swagger. Wilfred frost joins us live outside westminster and im just wondering, wilfred, the future of the u. K. An