>> ecb board member says the central bank is clearly missing it's inflation target. good morning, i'm susan lee. coming up on the program, hsbc reportedly imposing a 10% pay cut on hundreds of investment bankers as the bank is struggling to trim costs. switching to auto pilot, tesla unveils it's first autonomous car but drivers cannot be rid of responsibility just yet. >> glencore has been unfairly punished. >> they have been hit hard because of coal and energy prices but still, you know, people need our product and commodity needs good trade in platform and glencore provide the best trading platform in our sector. welcome again to the show. a very big earnings day here in europe. let's kick off with burberry trading lower. missed targets significantly. this was caused by a slow down in demand from china which accounts for between 30 and 40% of the total revenue. last month, cnbc spoke to the ceo in london and asked him about the challenges in hong kong. >> china is, specifically, hong kong, it's been, you know, everybody knows there's been a struggle there. the important thing is to just keep making sure that you have a point of view. making sure that you keep your authenticity. making sure that you give the best customer service in those countries. >> unilever shares are trading higher today but the c conglomerant warned they're still experiencing weakness there. >> over in switzerland, since takeover talks broke down, third quarter sales have fallen 12% missing expectations and sending shares into the red. we're off by 2.8%. the business was adversely impacted by the strength of the dollar and weakness. >> yeah, but i want to talk about cable and the anticable because netflix was all the talk in after hours in the u.s. third quarter earnings disappointed missing on the top and bottom lines when it comes to eps earnings and revenue. they're citing low subscriber growth adding only 880,000 new users versus 1.1 million. let's get more on the numbers since we did see netflix falling some 14% at one point. >> netflix's third quarter revenue grew to $1.74 billion. that's a hair lighter than expected while earnings of 7 cents per share came in a penny lighter than wall street projections, they're right in line with netflix's own guidance. total subscriber numbers grew better than expected to 69.17 million around the world but that was driven by international growth while u.s. subscriber growth fell a bit short. the company says that was in part because of the transition to u.s. chip cards making it harder for the company to collect what it called involuntary turn. the ceo was still overall very bullish on netflix's ability to keep growing it's user base despite raising prices and growing competition, in part, he said because the value the company is finding in it's original programming. >> the more that we have amazing originals then, overtime, we're going to be able to ask consumers for more, to be able to invest more. that's been the rhythm we have been on. >> as to what type of original content netflix could make next, they ruled out sports programming saying it's too expensive and it's not too entertaining to watch it after the fact but he did open the door to a new type of news conflict. saying the likelihood they'll compete with vice which is going to start making a daily news show, he said, is very high. >> but the biggest earning story was walmart which stunned with an earnings warning for 2016. the world's largest retailer by revenues expects eps to fall by as much as 12%. >> the company is blaming the impact on higher wages, spending on e-commerce and lower prices as weighing on earnings. walmart plans to spend $1.5 billion on investing on staff and payrolls as well as another several billion on lowering product prices over the next three years. >> the news triggered one of the sharpest one day declines in the stock and a quarter of a century wiping out nearly $20 billion in market cap and the shares also weigh down on the dow as well as other retailers like target and home depot fell on fears that walmart could be sparking a price war. so we're looking at the fifth highest volume day ever for walmart shares traded in wall street and we're looking for the worst year for the stock since 1973. things ags are concerning for t world's biggest retailer by revenue. no longer the largest by market cap. amazon overtook walmart because they have to spend more on higher wages. >> it's a company specific issue. we saw lower than expected retail sales but what walmart told us yesterday is really about the fact that they're paying higher wages. this is about the investment in e-commerce so i don't think that by and large the retail sector is unhealthy at this point. it's an investment into the future. much of the wage increases will be spent at the walmart stores. >> i would argue sears has been in a lot of trouble. neiman-marcus put off their ipo. i would say in terms of retailing, brick and mortar, not doing as well as the online stores. >> if we look at just general sentiment in the market, walmart was the main catalyst before it pulled the dow down significantly we saw the bond yield dipping. if you're looking at how big an effect this had is very much a risk off day after what has been a good start to october so far. but there's a big factor and that is the increase in wage which is they have imposed on themselves. as we get into this christmas season you don't want to see the biggest retailers in the world starting to inspire guidance. >> but we should keep this in perspective as well because we're not looking at sales declines. they're saying sales growth is here and flat. they predicted a 1 to 2% increase so things are not doom and gloom and, in fact, i like the fact that they are leading the wage gains in the u.s. paying their workers now $9 an hour. $10 in february next year. so, you know, they're helping middle america as well. >> 10% decline. we can't underestimate that massive reaction by investors to this even though as you say there's not out right sales decline. this has really hurt confidence and hurt expectation. so jim cramer also spoke to the ceo that said markets knew the higher wage costs were coming. >> all we did today was to quantify the move to $10 for everybody. that surprised some people more than it should have. >> it surprised a lot of people. people were shocked, frankly. the stock does not get hit like this. communications? >> we have known for a long time it was moving to $10. so if i had to do it over again maybe i should have quantified that in some ways earlier on. but the news was going to be new at some point. >> are you buying the stock tomorrow. >> i don't own anything but walmart. >> would you buy more? >> if i had some cash but everything i've got is tied up in walmart. >> 1.2 billion for walmart. 1.7 billion next year. that was walmart's ceo speaking to jim cramer on "mad money." the earnings extravaganza continues state side today. goldman sachs and citi should be the headliners. still to come, is the euro a threat to peace and democracy. why one economist seems to think so, after this short break. [ male announcer ] some come here to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ quite a bit of action in the euro dollar exchange rate this morning. euro falling to a session low after the ecb governing council member says further action is required for the central bank to meet it's inflation target. he is also the president of the national bank of austria said an additional set of instruments is necessary and these should include structural measures in addition to demand side policy. we're seeing the ten year bund yield at 53 basis points. >> let's have a look in on european equities in the green today up by 0.8% for the stoxx 600. we're following asian markets higher although not quite as strongly as asia was and this follows a day yesterday when european markets failed to shake off concerns over china's slow downs. so we're bouncing back from softness yesterday. across europe, as you can see, it's broadly equal, these rises today. ftse 100 up 0.8. germany, france, italy all up more. 1.9%. >> german chancellor angela merkel says her country will work constructively on european reform but warned that some principles are nonnegotiable. speaking earlier today chancellor merkel said she is convinced that the countries will find an acceptable compromise to keep the u.k. in the eu. now there's been some trouble ahead of the meeting as european commission president seemed to suggest that the u.k. might be better off outside the eu. it was denied by his team but what do you think? take a listen. >> i am 150% in favor of having britain as a constructive member state of the union. we need britain. personally i don't think that britain needs european union but that's a matter of conviction. others may have a different feeling on that. they will have the same feeling if ever britain would leave. >> julia joins us now live from brussels. getting himself a little bit tongue tied and slightly shifting the focus of course ahead of today's meeting. what can we expect? is it fair that david cameron will still get to mainly focus on the brexit issue or are other issues going to come to the front. >> that was a bit of a slip there, wasn't it? we have to follow what the spokesperson said there in that he did mean that the u.k. does need to be in the eu but as you quite rightly point out wilfred it's under the others caption on this agenda because obviously the migrant crisis is taking the top billing and this has happened, what, several times now, the last two summits i have been to where the agenda got pushed further and further down the pecking order but coming into this meeting part of the reason why the press jumped on this is they knew there would be a lack of news on any other front. the suggestion behind the scenes yet again is that david cameron wasn't readeddy to kick off these negotiations here in brussels and it's going to get pushed back to the december meeting if not to the first half of this year and there's a clear reluctance for him to state what the u.k. want as part of this negotiation strategy because if he does state what the conditions are he'll either get accused of not being ambitious enough or he has a benchmark in which people will point out the failures if he doesn't get what he wants at this stage. we have to wait for the fireworks and for the confrontation to know that the nitty-gritty is being discussed and we're heading toward a compromise solution but in the interim we're going to wait. it seems fruitless to discuss what the options are as far as the u.k. in the outcome is without having those concrete details or proposals on the table. and the other thing to point out is if you look at the longer term polls, i'll just make the point, the economy is still the important issue here and as far as basis are concerned while the economy is improving that's what sways them for and against the eu. jump in because i know you're eager. >> i disagree about the economy. i think sovereign city the main issue and migrants and economies is the second tier of issues but rather than us two having another argument about that now, i wanted to wonder your view of whether brussels is missing a trick here? they continue to sort of delayout rigoutright talks with david cameron. if they continue to push things back it's going to lead to greater pressure on david cameron domestically in the u.k. and potentially force him to change his tune. are they making a mistake by not tackling this issue head on early and convincingly. >> if david cameron could come up with a straight set of demand for what he wants in terms of the on going membership, do you really think it would be pushed down the agenda. >> i think he is trying to progress that. he had big talks with angela merkel and holland as well and it's the message out of brussels that suggests this isn't top of the agenda for them. over the summer when they had various meetings set up for them as you said with today's meeting the migration crisis seems to take precedence. >> i think you're right. there's talks going on behind the scenes but actually very little progress is being made on this point and i truly believe if david cameron had a big political push and came here and said these are my demands it would get bumped up the agenda. i make that point that because of greece and the migrant crisis things have gotten pushed back but pushing this back suits david cameron because if we get through the winter months perhaps we see less of a focus on the migration issue in terms of the proportion of people flowing over the boarders and perhaps that takes the issue off the agenda or makes it a lesser issue on the agenda back at home so he can sell this story better. i'm not sure i agree in the sense that they don't want to sort this issue out. they do. but they're ultimately waiting. there's a lot about the u.k.'s position here and what david cameron wants. this frustration at all sides of this, i don't buy it that brussels is equally at fault here. >> you mention the migrant crisis, but you say it could be some what quiter around the migrant crisis going into the winter as fewer people are coming over through the mediterranean yet what we heard from the germans is the set up of the so-called transit zones. what has the response been from her colleagues in brussels? >> you're right and the problem is the poris borders. we need a better eu border control trying to expand the number of elements that we have there trying to control this situation but again i'd argue that the nations involved are at fault here. there was a request for 775 additional border forces and i think less than 50 members have been put up and, you know, actually, as much as we're talking about what more can be done about the migration crisis a lot of the talks that go on today is why the individual nations are not stumping up. i want to throw a few numbers in here. of the promises that were made in september there's still a 2.5 billion short fall. there was a syria trust fund talked about as well. a 500 million euro sum. just 8 million euros have been received. to try to curve migration out to the african nations. that was 1.8 billion euros. 9 million euros has been received. so i think while we're talking about the longer term migration issues let's fulfill the promises already been made by these nation states. guys, i'll hand back to you. >> thank you very much. as ever, a delight to have you on despite our individual disagreements. we'll be back with julia later in the show. now no exceptions. contract workers must take a 10% pay cut. that's what hsbc told the investment banking division last week. hundreds of staff have been ordered to take two weeks of unpaid leave by the end of the year. let's have a look at share price action in hsbc. it's up off the back of this report. in the times as you can see up about 0.4%. this is pretty interesting. this is a pretty big step in the process of cost cutting to enforce on your workers a pay cut. >> it's not going to be a happy christmas for many of these bankers. but they don't have a choice. either they fulfill what they're mandating or look for another job. many of them have deferred options. they have deferred pay. they're not simply going to switch the bank right now. also because maybe other banks may be tempted to do the same if it works well at hsbc. so it's not like the movement between banks is so fluid anymore. >> at least they have a job. 50,000 jobs are cut at hsbc. so at least they still have a christmas to afford this year. but hsbc had this strategy review which really disappointed the markets just this year. the shedding assets. they have been selling off mexico and turkey and missed on every metric gulliver has taken out. >> indeed. >> and important cost to income ratio of course went up recently and this is a big push, what seems like a late, desperate push to try to get it back down but all the reviews and all the cost cutting has been lackluster. >> let's move on. is the euro crisis over? perhaps not according to our next guest. the he has published a book, looking at the single currency and the role of the ecb. he believes the euro project is following a political path that will endanger our market economy, democracy. joining us on the phone is the president of the ifo institute. you pretty much agree with the german finance minister in that troubled euro zone economies should be exiting the euro zone to heal themselves and maybe they can join the euro zone once they're healed. that wasn't his idea solely. you have said that for a long, long time. are you disappointed that this solution wasn't applied to greece? >> yeah. well, for greece i am disappointed. i think it will not be a solution for greece. most of the money will go to creditors and the country will not be enough to really help it going on. the country is not competitive. it needs to cut it's prices which were inflated too much in this initial credit boom which the euro brought about but cutting the prices in the euro zone is very, very difficult. the only way to do that in a socially acceptable way is exiting and devaluations. and this is difficult. >> mr. sinn, has germany on the other side of the coin been a beneficiary of the euro project or is it a victim of it? >> i think no one has really been beneficial. germany has performed well since 2010 but don't forget the ten years before were very miserable when germany had the lowest growth rate in europe. the lowest net investment rate. had mass unemployment which was higher. these were difficult times. it was the problem of capital movement out of the country. the gold seemed to glitter more in other countries than in germany. it was a miserable situation out of which germany gradually grew and now we have a similar problem in southern europe. no one has been really a winner of the euro. while the eu project was a big success for the countries of europe which brought peace and prosperity the euro has not really. >> interesting comments coming from the ecb this morning. he called for additional measures from the euro zone economy because clearly the ecb is not hitting it's inflation mandate. do you agree with him? do you think more measures would really make a difference? >> well they might try more and i think qe is an option. quantitative easing to get a little bit more off inflation which would be beneficial because we need the realignment of relative price. germany has to inflate in greece and italy stay constant with their prices. then they might regularly improve their competitiveness but i will not be so pessimistic because the core inflation date has been increasing since the production of qe so the current rate is low because of the falling oil prices. this is a temporary effect. >> yeah but unfortunately core inflation is not necessarily the ecb's mandate. we have to leave it here. president of the ifo institute. still to come on the show, we have crossed the continent. but we have been speaking to and they have the secret to europe's success. take a listen. >> the best way is to have more confidence or swagger as you might say. >> investment is about animal spirits so you need these animal spirits to gather and sure up and for that you need reform. >> but fundamental hly, americas an upside growth forward looking society. by definition europe has a more negative outlook. even more cynical. >> i always come to these meetings thinking there's so much more we need to do. >> i would say we like of consistency on the long-term. >> you mention the word bubble and i think it's the perfect word. it's in that bubble and does not look outside. or very few do. at the don't think about very much else. e finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. >> misses sales forecasts on weak performance and china. >> despite a cautious outlook, the british consumer goods giants beat third quarter expectations on solid emerging market shares. >> the company sees it's u.s. subscriber growth fall short of expectations blaming involuntary turn. >> the central bank is clearly missing it's inflation target. >> let's have a look in on european markets. we're in the green today. bouncing back by a soft day yesterday and following asian shares higher. not quite as strong in today's trade. we're up ss the board in europe. let's look in in bonds because the ten year dipped below 2%. and the likelihood of a rate hike in the u. s. being pushed backward. it's pushed down the yield to 0.54%. >> let's check in and we have the dollar index. four straight days now so we're looking at the crosses between the euro and the sterling and more weakness today. this is 0% chance of an interest rate hike in october. just 30% according to fed funds futures for december. that's also pushing up gold prices. we'll check in on gold for you. 3 mow highs for gold pricing since it looks like we'll have a more accommodative environment. 11:84 an ounce. copper bouncing back a little bit as well for the last two sessions. >> let's bring you some flashes coming out of the bank of engla england. of course the retail parts of the bank, these proposals coming out now hitting the wire. the bank of england set out more proposals for the retail arms. they're saying that they will require the ring fence part of the banks to treat the rest of the group in a different manner. we're seeing that they will, however, be able to pay dividends to their parent banking groups and they may well increase u.k. banks capital bank requirements. they will need to hold extra capital. they're pressing on with plans to ensure day-to-day business of running personal and fall firms bank accounts safe from the investment banking types. so the quote coming out, making our if i recalls more resilient has been at the forefront of our post crisis reform agenda. that's coming from the boe deputy governor. is there much reaction off the back of this? not too significant. so barclays is down today by .9. the others up as you can see. not too much from this announcement from the bank of england. >> burrberry is trading sharply lower. this was caused by the slow down in demand from china and accounts from 30 to 40% of total revenue. last month cnbc spoke to christopher bailey in london and asked him about the challenges in china. >> china is specifically hong kong, everybody knows there's been a struggle there. the important thing is to just keep making sure you have a point of view. making sure you keep your authenticity and making sure you keep the best customer service in those countries. >> equity analyst joins us over the phone now to discuss burberry further. what were the most noteworthy areas that the share price is reacting too. >> i actually found the results disappointing across the board. clearly, china, hong kong, deteriorated but looking at the results, also the americas showed an easy performance -- i'm sorry, an even performance in north america and also europe grew by double digits but lower than in the first quarter. so i think there are some challenges and they do understand, you know, they're keeping their authenticity. i think the collection is fine but the macro economic challenges are very significant and burberry being overpresented in china and hong kong doesn't help. there's a lot to do in terms of cost cutting and i'm not sure we understood the magnitude of the problem it wasn't the backward looking guidance. did it disappoint you. >> it's in terms of profitability i would say have a luxury company like burberry you expect growth and one year you could say okay let's forget about 2016. but even going forward now there are concerns as i don't think the problems it's facing now will be solved in the next six months. >> i totally agree with you. >> lvmh, that should be also the strategy that burberry should be undertaking. >> indeed. the next move should be -- i don't think it's a short-term problem if it's a 6 to 9 month issue. but this could be going on for a long time. also consumers are changing different brands, maybe more luxury brands, coach or tory burch. so management needs to face these challenges with options which should include clothing stores in my opinion. >> but do you actually think that chris bailey is the right person to steer the company through this crisis? >> you know, it remains to be seen. i think this is the biggest challenge when times are good, you know, basically, a ceo needs to be less drastic and effective than when times are bad. it remains to be seen what he can do. >> what are you telling investors to do with the stock then? do you want to weigh things out? given that there's varied visibility? maybe it would be more prudent to leave the stock. >> yes. i'm actually quite negative on the sector in general. have been for awhile. so i told my investors to stay out of the luxury sector for the time being until the volatility decreases. >> all right. thank you so much for your time. appreciate it. equity analyst at brewn dolphin. >> the president of the world's biggest aluminum producer has told cnbc that glencore's plan to slash it's debt is actually feasible. i spoke exclusively to him and he said he thought the swiss commodities giant had been unfairly punished by the market. take a listen. >> may be doing the best out of our peers. why, because we have been in crisis since 2008. for us debt crisis was very painful. we had kiquite a big chunk of tt and we reduce our debt almost two times, you know? we restructure business and maybe now most profitable in the world. >> you cut net debt from $13 billion back in 2009 to $8 billion at the end of june. that's a really big chunk. what glencore, though, is trying to do is a lot more. they're trying to cut net debt by some $10 billion by the end of next year. with your experience, and how you can slash debt and how quickly you can do that, is that feasible? >> 100%. >> 100% it is feasible? why? >> why because they're a diversified business and they have a lot of opportunity to find some of their asset and i still believe it's very -- it's fundamentally very economically driven company. not unless it's, you know, let's say, colleague, you know, some of their colleague destroy the market. we can see what's happening in some other area and they're very different. it's why they have been hit hard because of coal and energy prices but still people need our product and commodity needs good trading platform and glencore provide best trading platform in our sector. >> do you think that the likes of glencore have been unfairly punished by the market? >> you can see people that took shorter now took the losses. >> what we're seeing among the biggest commodity produces right now is really a twofold story. on the one hand you've got the likes of glencore cutting production. you, yourself, you're cutting production in aluminum too but then on the other hand you have the likes of the chinese aluminum producers and big iron ore producers that are not cutting production. they're ramping up production. are you frustrated with the lack of concerted effort on part of the commodity producers? >> no, just reality. unique moment. because the unique structure of the chinese financial system, there's a lot of government efforts in india to use coal which in my view complete mistake. we don't have them. they don't care about return on the invest lt. >> that was the president of one of the biggest aluminum producers in the world. the big problem for them is when are some of the other big players, the chinese players for example when are they going to cut output so that we have a more balanced market. now they can keep on producing forever the way they have been and at some point they're going to notice in their balance sheet that this is unsustainable but the question is when. >> when have been saying when are people going to start to cut supply? it always takes longer than you expect but the bigger question for me on the whole glencore issue and the falling commodity prices is whether there's going to be more of a knock on effect than we're expecting and by that i mean the way that commodities are used as collateral for various business across the globement but it is something to bear in mind that commodities whether you're a bank or a miner or whatever is used as collateral around the world and that's something we have to think on that could be big effects. >> i'm just wondering, rusal just announced their dividend. weakness in the rouble to take advantage of it but wouldn't you want to hold on to more cash just in case? >> that's the question i put to him and i asked him do you think that your dividend is sustainable? he said yeah we're a very healthy company and they have been benefitting from the fall in the rouble. so they say it's sustainable while others are cutting back on their dividend so it's a mixed story. >> did he say something about cutting his net debts down to 8 billion from 13 billion? >> there you go. >> i assume that's it. >> yeah. >> spanish oil major said it will sell more than 6 billion euros in assets and slash over 2 billion euros in cap ex. they anticipate an average oil price of $50 per barrel. repsol plans to scale back operations and has announced a 6% reduction in head count in order to protect current dividends. there you go. checking in on the shares this morning we're higher in spanish trade up by 0.6%. >> still to come on the program, look, no hands, phil puts tesla's new auto pilot tech to the test. at stay tuned for his verdict right after this. lamborghini is a subsidiary of aldi and volkswagen and italian police are searching their headquaters as part of the on going investigation. that's the latest flash coming out of that story and earlier today as well we did hear that italian police were searching vw offices in verona as part of the investigation and lamborghini coming under part of that. they ordered the auto maker to recall 2.4 million vehicles in it's home market. >> let's stay with autos and tesla has unveiled it's first semi autonomous car. phil was among the first drivers to try out it's new auto pilot technology. let's find out what he thought of it. >> tesla is taking a big step forward when it comes to developing autonomous drive vehicles. tesla is pushing out software that it calls tesla auto pilot. what is tesla auto pilot and why will it now be accessible to thousands of model x and model s owners? it allows you to do semiautonomous driving when you're behind the wheel. what's that? for example, the auto pilot technology has auto lane steering so the vehicle will stay in the lane by itself without you holding the steering wheel or controlling acceleration or braking. you can also change lanes if there's not a vehicle next to you. we tested this out on the west side highway here in manhattan and yes it does check to see if there's a vehicle next to you. if there is one and you can't do a lane change it will not go over. it will tell you it cannot go over. if it can make the move it will eventually change lanes and there will be auto parking allowing you to do parallel parking without holding the steering wheel and side collision avoidance. the tesla ceo talked about what impact he believes the auto pilot technology will have not only on tesla owners but the auto industry in general. >> it will be quite a profound experience. we have been testing it for over a year so we got quite used to it but when i put friends of mine in the car and they see the car drive they are blown away. >> tesla has been talking with the national highway traffic safety administration as well as with other regulators as it has developed the auto pilot technology and again this software allowing semiautonomous driving is being pushed out to tesla owners starting today here in the united states. that's the story from here in the u.s. back to you. >> investors have snapped up shares ahead of its listing in milan at the end of the month. according to reuters the order has already been entirely covered. the offer of nearly 39% of the firm is expected to end on october 22nd. >> now speaking of ipo and square is possibly a listing through goldman sachs, morgan stanley, jpm, those might be the underwritings in this listing. they disclosed a net loss of more than $77 million in the first six months of this year. square is the second company also helmed by ceo jack dorsey and it will trade on the new york stock exchange and they're looking for the ticker symbol sq. two letters. >> first data's ipo at $16 a share below the estimated range of 18 to $20. they raised $2.56 billion in it's offering and plans to use the proceeds to pay down debt which totalled 21 billion at the end of june. first data will start trading later today under the ticker symbol fdc. >> also albertsons is delaying it's ipo. the company citing concerns over the current market conditions. albertsons was set to start trading on the new york stock exchange yesterday but it's postponing until market conditions pick up. the companies hoping to reattempt to try to price maybe after the bell later on today. >> now when it comes to earnings and earnings power europe's dee jays sit at the top of the pile. that includes calvin harris, david guetta top their american peers by a sum. what does the industry hold for dee jaying? it's definitely a young person's game. >> at just 19 years of age, he is already one of the most successful dee jays and producers on the planet. he earns millions of dollars a year and performed for tens of thousands. he's a star in the world of electronic dance music and it all started from his bedroom. >> i grew up in a boring suburb. locked myself in my room producing music. i played the guitar for eight years. i don't know. i just kept on making music all the time and then i got some recognition by a label. i started releasing my tracks to the label and then i did a bunch of songs and one of those songs was animals. >> his break out single animals has racked up more than half a billion hits on youtube and collaborated with artists including usher and ed sheeran. he is represented by scooter brawn who launched among others, squ justin bieber's career. >> i'm stepping out of my comfort zone and i love to do that because you get to surprise people. >> in addition to his musical partnerships he branched out into the world of celebrity endorsements from 7-up to more recently, the watch brand. >> if we partner up with companies, i help them and they help me because we have such a different audience and the fact that we combine those audiences and produce them to each other is such a cool, strong thing. >> in holland dance music and dee jays. what you think about dutch people that make you such amazing dee jays? >> i don't know. maybe part of it is some dance event. one week a year the entire music industry gets here and you can network and meet the right label and the right people and i don't know. like music-wise maybe something in the water. i have no clue. >> but apart from the financial success of the brand, the 19-year-old still says that it is really just about the music. >> for me, i don't measure success and money. money is something that comes along with it. but for me i measure success in releasing a song and getting like super, super many views. good feedback about the fans and the fact that you can do shows for more people and i'd rather look at how a show is selling, how many people visit the shows and how many people watch the videos online. that means so much more than just a number of money. >> phil hahn for cnbc. >> well, some people say europe doesn't have swagger but we have the list of the best paid dee jays around the world. the top names are all european. calvin harris is one of the best paid. $66 million. that's in 2015 alone and the year hasn't even come to an end. david guetta $37 million. tiesto. i don't know skrillex. >> he's european. >> i'm just wondering. we started off by saying this is a young person's game, david guetta is not young. he's 50. 50 is the new 30 they say. >> he's 50. >> apparently but he still has long hair. >> i didn't know he was 50. i thought he was like 30 something. so there we go. i have to say this is extraordinary how this industry has grown. and it's important to separate out exactly what they are. they're music producers and creators now. it's not simply bringing together other people's music and playing them. >> there's new ways to make money as well as a dee jay because you still have the royalties but now you have residences in las vegas and you get paid quite a lot of money. calvin harris is getting a ton of money. >> he doesn't need that much money. he's dating taylor swift, right. just saying. >> exactly. and he's 47. i can't believe that. >> that's not calvin harris. >> you need to know your dee jays. >> but the good thing about it is they're doing well and europe does have swagger in that particular area. let's move on. let's have a look at european markets and we're doing pretty well. back from losses yesterday and following the queue from asia where the performance was strong. up just over 1% in continental europe and just shy of that from the ftse 100. >> in the currency markets a dip in the euro dollar. we're off by 0.2%. still above 11453. why? because one of the ecb board members talked about the necessity of more measures maybe as soon as the ecb meeting next week because the ecb is not fulfilling it's inflation target, euro dollar under a little bit today and the dollar also a little bit lower against the japanese yen, 11834 on the back of the disappointing retail sales number yesterday. in the bond markets, the bund yield in germany also dropped on the back of the comments. the yield is at 53 and the ten year u.s. yield dropped back below 2% once again on the heels of the disappointing data yesterday. >> let's have a look at commodities. the first ten days of october very good for oil. following five days much less so. another soft day today. 46.15 on wti. brent is at 49.04. so oil has shed it's early gains in october. >> and still to come on the show, walmart warns on its wage woes and wall street isn't happy. the shares dropping the most in 25 years in just one day. stay tuned for the details. we'll be back in two. the media company sees it's u.s. subscriber growth fall short of expectations. shares tading lower in frankfurt. >> burberry goes out of fashion. they miss forecasts on weak performance in china. >> walmart pushing the stock to its worst one day loss in 25 years and weighing on the dow. >> canadian drug maker valiant

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