welcome to "worldwide exchange." i'm karen cho. >> and i'm december ra morris. these are your headlines from around the world. >> sylvia berlusconi supporters threaten a mass resignation from parliament. >> and no end in sight in the battle over the debt ceiling on capitol hill with republicans now demand ago one-year delay to obama care and a list of tax measures while president obama calls on a bill to increase --

>> we're not going to submit to this kind of ir responsibility. congress needs to pay our bills on time. congress needs to pass our budget on time. congress needs to put an end to governing from crisis to crisis. as zachary gets ready to avoid a nearly $1 billion loss, the chief executive is in line for a $55 million golden handsha handshake. and a breath of fresh air for vestas after they agree on a deal with mitsubishi. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> hello and welcome to the program. we've been together. >> this is actually -- this week is the first time we're meeting in person, not just talking over the air waves.

>> we're waiting of the side of the plane. it's nice to be in london together. let's tell you what's coming up on the program today. plenty of data out there for the japanese economy on today's show. more evidence in the country in the process of escaping deflation as the country's cpi beats expectations. we'll take the pulse of the economy live at 10:30 cet. and blackberry earnings, while they don't look likely to file into growth with a takeover deal with fairfax in the balance, we're going to discuss that. meanwhile, will the country meet this weekend's imf deadline to sort the problem? we'll discuss that at 10:45 cet at the present. >> and the wrangling on capitol hill continues ahead of capital talks to avert a government shutdown. we will discuss the showdown live in washington at 11:30 cet. >> as china welcomes a change in

attitude between work and life, what's next for the future generation of the world's second largest economy? eunice yoon investigates at 10:45 cet. >> i'm looking forward to that one. i think some of our colleagues are, as well. e-mail us, worldwide@cnbc.com. you can also tweet us. coming today, particularly italy in our sights actually today as we look at some of the key numbers coming out. i want to show you business confidence for september, so let's just bring that up and show you what we're looking at today. we've got -- wow, ridesing to 96.6 consensus was a little lower than this at 93.4. so the market there is getting a better number out of italy. don't forget, this is some -- in terms of the confidence figure when the survey is taken. the business confidence is at 83.3 versus 82. so on the business metric, this is showing an improvement, as well. italy is very much in the headlines today as we see this government in crisis.

speaking of which, let's start with the data out here and look at the ramifications. if this government hangs in the balance after sylvia berlusconi supporters threaten to resign enmass. the prime minister is returning today to meet with president george me poll tano to discussion the situation. speaking ahead of his departure, he called the resignation a humiliation, not for him but instead for italy. ahead of that, the coalition is scheduled to meet today to discuss how to avoid a pdl in sales tax.

you can see currently we're a little elevated on that ten-year yield at 4.5%. joining us now, we have jonesen stops on the set with us. so nice to see you and have you on board with us this morning. we've just seen some backward looking data. obviously, people have been more confident as the data points have been improving. but now we have this crisis. are you concerned about the situation in italy today? >> i guess there are two parts here. the first part is what's coming through on the data side. so there are clear signs and there have been clear signs the macro is generally getting better, and part of that is macro risks are getting worse. >> we're discussing that maybe through italian politics again. we aren't discussing a eurozone. we're talking about different risks. there are still risks out there in europe and across the rest of

the world for the risks in europe with a much smaller facing equity market and financial markets today than they were. >> we still have much work to be done. this is one of the issues when we have a government that is not working together. let's get over to claudia. wa does this mean for a continuous coalition? >> well, of course, it's a very critical situation here today. letta was in new york until yesterday speaking on his plan to help promote foreign direct investment into italy. and he was, once again, reiterating the need for stability and his own coalition at this point is teetering because of the pdl's announcement, which is berlusconi's party that they were considering a mass resignation. following that, this was the day before yesterday. in the evening, george neapolitano came out with a letter pushing for this grand coalition to find an equilibrium

in order to move forward in stability. again, that word that keeps coming back out. but, really, it's not clear how this is going to end today. letta is coming back this morning to italy. he willmy with neapolitano. they will discuss the situation. he is going into a cabinet meeting. he will be speaking to ministers and there is the option of going to congress for a confidence vote. letta wants this coalition to move forward with a stability visible on the outside. so he is being considered that he will go also for a confidence vote. again, the big issue here is the berlusconi story. it is considered that he may be losing his seat in senate following an indictment in a sentence to prison that according to a law that has been put into place does not allow him to hold a senate seat. there is a discussion whether this law is retroactive or not. so this is what the pdl is

fighting over, which is berlusconi's party. the sales tax hike is another issue that we are watching as we're moving forward to find equilibrium on the stability, a law which is due to be passed on the 15th of october on. will they or won't they raise the det? a lot to look out for here on the political front even over the weekend and today in just about an hour's time, we'll see what happens at that bond auction. the spread is inching higher, but not as much as you might think in a critical situation like this. the hit came mostly on to the equities market. we'll see you in about an hour's time. >> thank you very much, claudia. let's pick up with jonathan because this is a point we're something markets talk about, whether it's stateside, european problems here, as well. we still have equity markets and debt yeelts fairly low, relatively speaking.

>> investors are always looking for a return. from an equity perspective, we've got clear signs the macro is getting better. and both cyclical risks falling and opportunity improving, that should lead in times profits getting better. and then we have all different types of investors trying to find the best asset class for their capital. and equities now has this outstanding performance chat record over one, two, three, five, ten, 15, 20 years. it's bonds. increasing equities a bit, pulling investors in. >> this improvement that we're seeing in the economic data, is that cyclical or are some of the tough structural reforms taking place? even when we're talking about italy, how realistic is it that we're going to see some of these structural reforms that need to be taken? >> i think when we look at this, the whole macro picture and talking about risks, there are two types of risks. there's structural risks and

cyclical risks. it allows policymakeres and politicians more time to build the structural risks. so we still have to keep an eye on them, worry about them, but the reduction in cyclical risks gives opportunity for risk assets to keep performing. >> we're going to get back to jonathan in just a moment. meanwhi meanwhile, let's give you an update on washington. the tension ahead of this weekend's government shutdown is palpable. president obama calls for a straightforward bill to increase borrowing. a bipartisan solution seems far off with republicans demanding a delay to health care. >> congress needs to pay our bills on time. congress needs to pass a budget on time. congress needs to put an end to

governing from crisis to crisis. >> the president says i'm not going to negotiate. well, i'm sorry, but it just doesn't work that way. >> this is the tone on european markets for the friday session so far. you can see the benchmark index just trapped on the flat line. if anything, a slightly negative bias out there. let's dive into individual markets because the peripherals seem to be underperforming today, but it is all modest moves. the ftse 100, still above 6,500 points. 8,652 on the board with the xetra dax. in france, we're south across on the periphery. slim losses, as well. 15 points for the italian market. not exactly playing out on the equity market in the mib this morning.

let's move on to some of the gainers and losers today. this is the state of play. the big standout is investors win. we have a balance of just over 11%. the danish wind turbine user has teamed up with mitsubishi equities. they've lagged behind competitors in the offshore market, so this is a move to try and bolster the company's venture. you can see some telecom stocks have been moving, telecity get ago bit of a nudge along. also michael page, the uk recruiter, has caught a bit of a revival from yesterday when the company had its numbers out. it was disappointing. you can see on some of the losers, there's a mix of british companies. you can see france is down 8

plus%. let's move on to bond markets. i want to show you u.s. treasuries, 2.65% is how we're poised. but with this wrangling over the debt ceiling and whether or not we're going to face a government shutdown, the constant protection of u.s. sovereign debt in the credit default stock market has risen to its highest level in four months. you can see the insurance policy has gone on despite the fact the treasuries now to be around the 2.65% mark. when you see italy is a little bit more elevated at 4.5%. so some of these concerns are certainly having ramifications on some of these trades. you can see across the curb, this is how this data play is on the two years. we're still 11.91%, so below the 2% mark. almost 2.5% on the three year. right up to 4.5% on the

ten-year. that's across the entire curve to italy. forex rates, let's just dive in and take a look at something. sterling getting a little bit of traction. the mark cashny was saying he didn't see the need for any more bond buying. that's bit a bit under sterling. almost 0.3% for the australian dollar. dollar/yen rates, a little weaker. the yen also seeing a bit of a bounce on suggestions that we are seeing that effective corporate tax rate that had been discussed, whether there would be a cut in that. that has apparently been taken off the table by the japanese finance minister saying it's fought happening anytime soon. so it's caused trade around that dollar/yen. euro/dollar is really stable. 1.35 is the handle there. >> looking good. let's check in on markets in asia. li sixuan is standing by. no doubt you'll be talking about

the concept stocks. so much excitement and now seemingly so much disappointment. >> of course. we're seeing profit taking for those shanghai free trade zone related concept stocks. wrapping up the week, it's pretty much a flat session for asian markets this friday. i want to start with japan. the country's august cpi came in at a five-year high, mostly helped by jumping energy prices. we got comments from finance minister aso on the corporate tax rates saying it's a long-term issue and he won't be lowering that for now. that triggered profit taking on the markets. the nikkei 225 slipped by about 0.25%. but has gained about 10% is month so far. some shanghai based companies say profit taking ahead of the free trade zone this sunday. and many stocks have doubled or tripled this month.

so the shanghai composite ended higher by a modest 0.2%. and most other asian markets also finishing marginally in the green. and take a look at some big movers in japan. the u.s. is finding japanese auto partsmakers for price fixing. and mitsuba is taking the brunt of the selling down by over 12%. asport big gainer today, tenco jumped 6.6% after the 7% gain yesterday. this allowed tenco to apply for safety check on its nuclear reactors. so one more step towards the restart of the plant. that's a look at the asian markets. >> can alitalia avoid a shutdown? more on that after the break. stay with us. [ tires screech ]

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welcome back to "worldwide exchange." we've been talking a lot about blackberry this week. and the headlines continue. it's expecting to firm a nearly $1 billion loss for its latest trading quarter today.

the results come as the smartphonemaker attempts to close a $1.4 billion deal which would see the company sold to fairfax financial group. news has emerged that the blackberry ceo is set to receive a golden handshake worth, get this, approximately $55 million if the deal with fairfax is struck. the company is due to report at 2:00 cet or 1400 cet and speculation continues that the numbers will prompt a rival bid to emerge. as you can see, blackberry shares which have been taking a drubbing this year finishing down yesterday lower than in the u.s. by 0.7%. we're going to be talking later to a guest about blackberry in greater detail at 11:20 cet. lots of controversial headlines coming out from that company. and one of the dow's newest members, nike let the pack yesterday. the company jumped after hours

finishing a strong first quarter were earnings beat versus estimates of 78 cents. revenue was reported in line at $6.97 billion. the stock closing at a historic high above $70 a share for the first time ever. >> and another sector, air france klm voted against alitalia for a capital hike according to sources supported by reuters. air france klm is the top shareholders in alitalia holding a 25% stake. this is against the overall sector. >> john, we were talking about a

big show over here. how does this find its way into your research? >> it is not in any way for uses ex. essex is a great place. i got married in essex. this goes back to a story of fundamentals and risk appetite. so if the macro is improving in the u.s. and europe, which we think it is, if profits are also improving, then the fundamental attraction of equities there, evaluations aren't stretched. in fact, when you compare equity toes credit, equity is still trading at multi decade cheaps relative to credit and other asset classes. when you're a capital allocator, looking across all asset classes, equities look increasingly attractive. >> and apparently european shares between $100 billion to $150 billion is how much more international investors need to spend here to try and bolster the capital allocation since 2007.

do you see that kind of money coming in? >> we've had a very abnormal last few years. very abnormal debt. lots of liquidity to the central banks. two things haven't happened as equities have gone up over 100% already. one is flow to equity and two is m&a. you see the rising correlation between share prices. we think those two start from here and you can s this in the program today with corporate action. risk appetite is picking up as macro risks are coming down and we think that drives an ongoing rerating for equities. >> on that m&a point we had a guest on the other day talking about volume has been so much less in europe than particularly the u.s. and even acquirers vice president been performing as well, for example, in the u.s. do you think that's going to turn around, as well? >> this is very much a u.s. first story. when you think about economic and political risks, they were high everywhere 12 to 18 months ago. even in the u.s., the fiscal

deficits, etcetera. the u.s. is where the macro risk has come down fastest and most aggressively. >> the u.s., there's a ton of free money. here in europe, you still have de-lev raemging taking place. >> you have. but here in europe, we have access to excellent funding and -- >> but there's no retention in the take of the process from private equity. it's very aggressive in the states, it's just not simply happening here. you've got a handful of buyers using cash to buy a lot of companies. you have less, for sure. but we've seen recently how that can impact those european stocks, even at the very top end of the index in terms of market cap terms. so this is a global if a nom

known. >> sector picks. >> following on from this is increasing risk. this is not like '03, '07 where it was leverage, if you like. this is going to be much more selective. banks in europe, insurance and autos. so we're overweigh in the next 12 to 15 months. and they have a beach above one, as well. so they have risks within them. the banks, very briefly, banks was a big risk. european risks have been a big risk in investors minds. two weeks ago, they were running a $300 billion euro capital requirements. that deficit at the end of this year will be zero.

>> thank you very much, jonathan. another first for china, its debut securitization, says it plans to sell some buildings and fund rights with the aim of generating steady income. the initial sales would raise about $20 million. >> and no milking of gains on huishan dairy. it builds itself as a, quote, grass to glass integrated pay on the mainland's thirst for milk. shares fell as much as 10% before scaling back losses to close at $2.69 hong kong

dollars. >> lovely picture if you're having your cereal and milk this morning. >> yeah. $25 million worth of art, jewelry, watches and wine sold last night by christie's. a picasso went for $1.9 million with the most expensive sale being a ruby and diamond necklace at $3.5 million. i wonder, this tick tess balance because it's about alternative investments. can you get away with it? >> i was wondering, too, you're saying ruby diamonds and a picasso. you're not supposed to buy those any more. >> a picasso would be okay. >> we're going to keep with china in as china's views embrace the change in attitude towards work and life. hunish yoon takes a look at what that means for the world's

second largest economy. >> these young chinese are looking for love. matching single gals with potential mr. right. if you are the one the gals vote for or veto the guys. but the tv program got into trouble. too many ladies booted off candidates would didn't have big enough wallets, giving it a reputation for being materialistic. >> i hope he's very fond of me and treats me like a princess. >> the show faced pressure from the government which is concerned programs like this one were too focused on wealth. at the same time, many people see it as representative of china's young generation. but is that what young people here are all about? 20 somethings in china today grew up in china where a fun night life is a given, a china where life before economic reform is read about in textbook, not experience. born in the late 80s and '90s, they're products of china's one

child policy. steven shur, robert shu and barry wong are typical. all of them are educated, work at international companies and are connected to their gadgets 24/7. >> we only care if the government can make our lives easier like we can afford the properties, afford a good car, afford our families. >> that is keen of a new view of value of this generation. we just think that job is a tool, a path, to achieve what we want to. which is not career's success. >> shu's parents would probably have never said that. they grew up in a poor, isolated china. part of a generation that worked their way out of poverty to get the basics in life. young people today haven't had to sacrifice that way. that's why there's concern these future leaders and workers in

china care more about themselves than the country. our friends at the bar realize china has problems. if you got a chance to be in government, what would you change about china? >> it's disk to think for china, but at least i can try to discuss with my people how to do it slowly. >> first thing first. we lose a great fire wall. blocking. that's why we can't use facebook here. >> but unlike students in the past, these young people don't feel empowered to make a change. >> sometimes i feel bad about government and i say, it's not a free country, i feel it's not fair enough in china. but actually, our normal life, it's hard to change something by our own power. >> in a nation controlled by the state. eunice yoon, cnbc, beijing. >> from the fact that they can't

use their mobiles to connect to facebook. >> and i wonder in china, it's so important when you're dating, the parents always want to have what kind of job you have. wa car do you drive? do you own a house? very, very important in china, right? how many languages do you speak? that could all be solved with facebook, right? >> apparently. we can both say that having chinese roots or maybe half chinese, anyway. but one interesting part is e-commerce spent this year. you can see the trend, the amount of connectivity that the use of china has these days. it's a real game changer for anyone trying to make money out of the mainland. whether they're a chinese agent company or whether they're an american or european going after that business.

>> valentine is a huge holiday and also there's singles day. these reality sheets shows, these tv shows are a big thing. it will be a challenge going forward for the nation and the demographics there. >> one to watch, isn't it? shall we kick on? wa do we have coming up? >> we have a good one coming up. a good transition here. gadgets, when u.s. logo martha stewart do it, the results went viral. have a look at this. harsh words from the homemaker. it all began when the domestic entrepreneur shattered her ipad and innocently took to twittory ask if apple would come to pick it up. you have to wonder who asks apple to come and pick something up. several tweets later, pointing out flaws in their customer service, and it seems miss

stewart has angered the tech giant. the ipad she says was given to her by her pal, steve jobs. but, you know, she's making all this fuss about an ipad, just go buy a new one. >> she has the old generation by a couple of series. >> i think martha stewart needs a new pr person. she was talking about the amount of money that she spends and the compensation that she gets. you have to wonder, taking this battle to twitter, smart for her for her brand. >> but you can go to an international company if you have really bad service and you want to vent about it, where do you go? you go to social media these days. do other people see this and go, well, i'm not going to buy an apple device because i'm not going to get personal service. >> i tweeted something about an airline and it got picked up and forwarded maybe 30 or 40 times.

>> while you were in the air. >> that was amazing. we'll see what happens with martha stewart. i think she wants a personal apology the way she's talking. >> i think she wants a new device. ding, ding, it is martha in one corner and the tech giant in the other. pick your sides here on "worldwide exchange." who do you have? >> i'm going to go with the big bucks, apple. then i'll take martha stewart, grudgingly. e-mail us your pickes and tweet us direct to karen or i. i'm @deecnbc. and i'm @karencnbc, as well. >> we will get through the show. still to come -- >> japan's august driven by

electricity prices. could the numbers suggest reinflation is under way or something more sinister? we'll discuss that, coming up. stay tuned.

welcome to "worldwide exchange." i'm karen tso. >> and i'm deidre morris. here are your headlines from around the world. >> sylvia berlusconi supporters threaten a massive resignation from parliament. >> republicans are now demanding a one-year delay to obama care and a list of tax measures. while president obama calls on a bill to increase borrowing. >> we're not going to submit to this total irrelevant. congress needs to pay our bills on time. congress needs to pass a budget on time. congress needs to put an end to governing from crisis to crisis.

good morning. thanks for joining us. let's take a look at the market action. we've been on the flat line today. let's take a look at how we're tracking across the benchmark space. this says we're peeling back across some of the markets. the if it is has been down 0.3%. the xetra dax is giving back some of those all time ticks we've enjoyed on the german market of late. the cac weaker by 0.1% and the ftse mib is softer today by a bit. we are seeing selling across the board. let's move on to how bonds are tracking. what are we seeing out there, dee? >> take a look. the ten-year bund at 1.82%. the ten- year treasury yield back away from that % level with that nontapering decision. they are edging lower, bond prices, that is, as jobless claims we saw in the u.s. near a

six-year low. ten-year spanish bonds at 4.37% and the ten-year italian benchmark, 4.5%. japan may be getting the upper hand in inflation. august core prices rose at their quickest pace in years. energy costs continued to feel the gains. let's get a little bit more on this with the principal and chief economist at japan macro advisers. fafugi, many thanks for being with us today. >> thanks for having me. >> you're skeptical of the numbers today. don't read too much into this. >> gasoline rise is coming from higher commodity price and lower yen. electricity price, basically coming from fukushima. we have -- the government has to

raise the prices. so i don't think we can really say that as a sign that japan is reflating. >> where does this put abe-nomics, then? this huge improvement we saw months ago sort of petered out a bit. how do you do it going forward? how does that relate to the sales tax? is thatting economy strong enough to implement and raise the sales tax? >> so i've been basically one acheerleader for abe nomics. but i think since may, there has been too much disappointment. so i am cautious for safe for japanese stock market when it comes to abe-nomics. but i think wasn'tly, we did see some revival of policy initiatives such as a corporate tax cut, so this is encouraging. but overall, i don't think abe-nomics boom can condition beyond april next year. >> that's an interesting point, isn't it? just getting more into those cpi

inflation numbers today, but tighter inflation is a concern here. so the push up in energy prices is certainly the negative type of inflation that investors don't want to see. so where does this leave japan's energy policy? are they going to have to revive some of those old nuclear ambitions? >> well, you said that little bit of inflation is a good thing in japan. but actually, no,en flagz based on wage rise is good for japan. but inflation based on the cost inflation is bad for japan. as we mentioned, i don't think japan is going that much further in energy progress. while government is still not -- is fading to revive the nuclear power plant, so the nuclear power plant is shut in japan raising the energy costs. >> the statistics show abe-nomic sess working in an unusual way. it's pushing money elsewhere across asia as korchts look at

the low cost space and the lacks of time, for instance, and that type of investment has rallied. so if we start to see the energy price story continue to be a big theme in japan, surely this has to be another catalyst fueling investments by japanese corporates elsewhere. >> yes, indeed. i think that is the right way. given the relatively low growth, that can be expecting in japan and the rates of higher growth in the rest of asia, it is natural that japan will keep investing overseas. and that's part of the abe-nomics to weaken yen so that the capital will go out. >> so give us a sense is of how you're investing in some of these stories. where does this leave us on the nikkei? because it looks like if you just resit the curb of the chart this week, that we're tracking back to what we saw in mid-may. do you think that's the direction we are going to witness on the japanese stock

market? >> yes. we are start to go hear some positive news from china, as well. overall, i do think that a stock market is making sense, but will it go back and beyond may peak? i don't think so. >> is that going to influence abe's decision to raise the sales tax or not? >> yes. well, it will improve, but i think we will see that the marginal improvement is getting smaller and smaller. that shows a sign that policy may be weakening. >> many thanks for that. >> let's see what other story we're following out of japan on the corporate side today. japanese carbon fibermaker tori industries says it will buy

zoltek for $584 million. >> hi, karen. toray's share will lead the globalmaker's percentage to 30%. carbon fiber is stronger and lighter than steel, but the higher price has prevented its widest spread viewses. toray hopes that a legislature scale production would push down prices to expand the market. the nikkei news just reported that toray is going to invest $400 million in fibermaker ugen chemical, buying a $6.2% stake. japanese electronics giant panasonic has decided to sell its health care business to kkr for $1.5 billion. but panasonic will keep a 20% stake in its subsidiary panasonic health care since it

still has some promising r&d projects. it's difficult to extend on its own. with this sell-off, it hopes to speed up the reconstruction process. >> polls from germany show the spd is meeting today to pick a party strategy. the results for the opposition were that they had a bit of an increase. they don't necessarily want a grand coalition. where does this leave us post election? >> well, actually, it's still a lot of insecurity surrounding

that coalition bid. as you said, the social democrats are convening tonight to cut the potential of a referendum. and a lot of their party members are actually against the grand coalition because the last time they went together with angela merkel's party, they ended that coalition being extremely bruised. and so there's not a lot of sympathy for that option. on the other side, we as well are having a discussion among the christian democrats now as they might go with a tax hike. angela merkel was promising there wouldn't be any tax hike. we caught up earlier this week with the deputy chairman and i asked him whether he could envision a coalition with the green who are, as well, in favor of tax hikes. so take a listen what he said. >> the greens are, first of all, as far as taxes is concerned, much more on the side of taking

out more money out of the people. we don't want it. we don't have the problem of too little taxes in germany, but of too much spending. so what we want to change is the spending has to go down in order to have a safe and clear budget. that is our goal, it's in our target. which will be not possible with the queen. >> so despite this earlier commitment of no tax hike for angela merkel's cdu, we are seeing a slight tendency to move towards that, but at the same time, they then want to change the current tax system, ie, to change the tax brackets. so it's a complicated thing here. so the other side, which is very interesting, we are already seeing the spd wanting to have more ministries that they would be actually entitled to, looking

at their results in the election. so what they want to have, according to sources quoted by reuters, is the finance ministry. and that is, of course, something the cdu does not want to give up. because the finance ministry those days is one of the most prominent, most influential ministries, as well. of course, in the eurozone crisis. so still a lot of undecided things here from berlin. with that, back to you. >> so it's not all that different on either side of the atlantic. okay. thank you very much, annette. still to come on this show, argentina stands accused of saving billions on debt by lying about its official economic data. will the country adhere to an imf deadline this sunday to fix the problem? stay tuned. ♪

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this sunday marks the final deadline for argentina to comply with imf rules on reporting official data. a court decision this week has put the country's central bank in line to pay bondholders who refuse to accept restructuring

following argentina's debt default in 2001. the senior analyst for apple cross and latin america joins us around the set. good morning. >> good morning. >> let's dive into this story. we saw a sen sur from the imf in february and now it has to try and improve its statistics by the end of september. what steps will the imf take if the statistics don't look any better? >> argentina has shown that it's willing to start working with the imf, or at least that's what it stated in the last meeting just last week in washington. the imf from this point onward, it could remove argentina's voting rights and eventually eject it from the constitution, which is quite unlikely at this point. >> it's been said these figures are highly unreliable.

and if you look at the actual index figures, they've been underestimating inflation, overestimating growth. the sort of beautiful numbers that people like to see from the economy that are just not realistic. but argentina is on the hook here because some of the estimates are that it could slight back into a recession next year. it's a back stop for the country, isn't it? >> well, absolutely. i think the problem with doctoring one set of figures is that it's like, you know, any kind of lie. it requires you to start making other figures up in order for your numbers to add up at the end of the day. and so the problem is not just inflation, which affects cons e consumers and investors alike who can project long-term costs of operation going from anything, stationary to the cost of the labor force or the cost of transport, but it also affects, you know, other things.

what's the actual level of productivity of the workforce? a lot of argument is that argentina's growth has been the result of longer working hours and more informal employment rather than increased productivity, which clearly would raise a lot of flags for potential investors. >> now, i usually sit in singapore. i'm just here hanging out for a week with karen and ross. but i report on china and there's a lot made about chinese numberes and how they're tweaked. but shocking to read these argentinian numbers. according to its own statistics, it's growing at a raise of 4.3%, the fastest economy in the world behind maccou. give us a part about how realistic these nebs are. >> there were preliminary results from a harvard university study released earlier this week. what they show is that probably the growth figures should be cut by half on average every year. in fact, they show that, for

example, between 2002 and 2012, the government argues that dp dp grew close to 100%, but it probably grew close to 70%. for example, peru would have outperformed argentina regularly during that ten-year period. so i mean, clearly, the government's figures are overrepresenting growth. but at the same time, i think part of the problem of what the government is doing is we don't know when recession is taking place. for example, 2009, the government posted 2.9% growth. but private calculations show that the economy may have contracted anywhere between 3% and 2%. >> so investors continue to that joy ride of the boom. >> that channel is pretty good, actually. thank you for joining us today.

>> take a loot a some of martha stewart's tweets. she shattered her ipad and innocently took to twitter to see if apple would come and pick it up. seems innocent enough. but several points later, pointing out flaws in their customer service and it seems miss stewart has angered the tech giant. >> we also asked you who you think will come out on top. some are saying martha can afford to get her own screen repaired or buy a new one just like the rest of us. stay tuned. we'll be right back after this.

welcome to "worldwide exchange." i'm karen tso. >> and i'm deirdre wang morris. >> sylvia berlusconi supporters threaten a massive resignation from parliament. in washington, president obama calls on a bill to increase borrowing. >> we're fought going to submit to this kind of total irresponsibility. congress needs to pay our bills

on time. congress needs to pass a budget on time. congress needs to put an end to governing from crisis to crisis. as blackberry gets ready to report in a billion dollar quarterly loss, should the company be sold, the chief executive is in line for a $55 million golden handshake. here is a look at how we're shaping up for the u.s. market action today. the markets put the pib on that five-day losing streak that we saw this week. the likes of the dow and the s&p in positive territory as investors park some of those concerns about the debt ceiling and a government shut youp. but you can see those concerns are still just bubbling away if the back drop. so we are looking like we'll see a bit of a softer start for the u.s. stock market on the friday

session. let's take a look at how europe is shaping up. we're not giving the u.s. the greatest of leads today across from the core and the periphery. you've got a bit of a sell-off taking place. almost an acceleration across these markets. just pushing down from some of those peaks at late. you can see the italian market getting steeper losses as we progress throughout the morning session. but these concerns about the coalition is just start to go creep into the stock market. we didn't see it on the open, but we are seeing it throughout the morning session. the ten-year now creeping higher. we started off about that 4.5% mark. bonds, you can see the spreads widening out a bit.

spain, 4.38%. that's been fairly stable if not slightly higher in recent days. let's move on to forex markets. euro/dollar has been steady, slightly firmer if anything. the dollar has been struggling against the japanese yen. this has been a bit of a retraction trade. we had news out today from one big minister saying we're fought going to get that corporate tax cut that's been speculated. that caused a bit of trade in the yep. the australian dollar pushing lower. sterling has been supported here in the uk. up 0.2% on suggestions from mark carney at the boe that we're not going to get any more bond buying to support the economy. because let's face it, the data keeps improving here, dee. li sixuan is standing by in asia. let's get a check on markets. over to you. >> thank you, deidre. most asian markets wrapped up the week on a mild by positive know.

japan's cpi came in at a five-year high mostly helped by a sharp jump in energy prices. meanwhile, finance minister's aso about not lowering the for now caused some speculation. in china, investors are not making big betts ahead of the week-long national holiday. and many shanghai embarrassed stocks, in fact, they have doubled or tripled this month. but they sa come to profit taking in today's trade. that caps the gains on the shanghai composite which ended higher by a modest 0.2%. meanwhile, taiwan, hong kong, australia all ended marginally in the green. let me show smu individual stocks in japan. the u.s. is finding japanese auto partsmaker for price fixing and mitsuba took the brunt of the selling today, ending down

over 12%. as for the big gainer, tenco jumped 6.6% after niigata authorities allowed tenco to apply for safety checks on its reactors. back to you. >> thank you so much, sixuan. tensions continue to rise between republicans and democrats. president obama continues calls for a straightforward bill to increase borrowing. but a bipartisan solution seems far off. with republicans demanding a delay to obama care as well as tax overhauls. >> we're not going to submit to this kind of total irresponsibility. congress needs to pay our bills on time. congress needs to pass a budget on time. congress needs to put an nd to governing from crisis to crisis. >> the president says i'm not going to negotiate. well, i'm sorry, you about it

just doesn't work that way. >> joining us now from new york is lance roberts. lance, give us your thoughts where you're saying the market is not react to go this this time around. i question that because we have seen five straight days of selling on wall street. how can you say the market is not concerned about this issue? >> i shouldn't say that they're not concerned entire. they're obviously concerned a little bit. but we had a very, very sharp rally last week because of the larry summers stepping down, of course, the syrian resolution, the fed, no taper decision, .that pushed stocks up sharply. so we're seeing a bit of a retracement for that. if the markets were really concerned, we will be way down. the markets have kind of already figured out that most likely we're going to have some type of 11th hour resolution that comes in and gets this thing resolved.

so the shot to the market will come if we don't. and i think that investors need to be aware of the potential risk that something like that could very well happen. we are seeing the republicans being very stern here about potentially shutting down the government. and that should shock the markets. >> back in 2011, was that an overreaction or this time are we seeing an underreaction? >> i think it was a little bit of both. in 20111, everybody was afraid we were going to be fault on paying our bills. the reality is we can print currency, we have extraordinary measure that's we've been doing for the last four months, actually, to pay our bills. that is not a real issue. so the markets overreacted in 201 is 1. but i think underreacting here a little bit from the standpoint that this may turn into something much more protracted that could impact the personal economy. anything that causes the

consumer to retract in an economy that is 7% driven by consumption, that could away problem. >> many u.s. corporates when they see a situation like this, and they did it before, they held back and put more money to work in terms of capital investment. >> that is the other issue here. i wrote an article a few days because and that was titled the real reason the fed didn't taper. if we take a look at some of the internals of the economy, we're seeing weaker growth, durables disappointing and companies not committing to capital. if the fed begins to taper, that's going to tighten some of the liquidity in the market. so i think the fed is going to be cale here through the end of the year. >> it's a good point, isn't it? i was going to say i think i might almost agree with you,

lance. >> now, in an exclusive interview with cnbc, bundesbank's neighel says -- may not be necessary. stay tuned. agel says -- may not be necessary. stay tuned.

welcome back. karen b it is a good week for me to be here. we are talking a lot about the blackberry. it is expected to record a $1 billion loss as the smartphonemaker attempts to close a $4.7 billion deal which would see the troubled company sold to fairfax financial group. anyhow news has now emerged that the blackberry ceo is set to receive a golden handshake worth approximately $45 billion. the company is due to report at 1400 cet and speculation continues that the numbers could prompt a rival bid to emerge. take a look. blackberry shares have been plunging all year. down yesterday at least 0.7%. let's get more on this.. joining us from new york,

maxwell's chief economist and strategist at zedt. welcome. max, where to start with this story? blackberry, so much going on. nothing very good. what do you make of the latest news about its ceo, torsen hines receiving such a large golden parachute? and he got this special achievement bonus of $3 million back when the blackberry 10 smartphone was released, yet is company is expected to write down about $1 billion in losses due in this very exact platform. >> yes. thanks for having me. look, i think we've got a difficult story here. it's always easy to see the recriminations which as little success as there has been in the mrb story. it's hard for shareholders of the general public to swallow tens of millions of payouts when you provided over a 50% capital loss in the shares or when you're getting a special performance bonus of the launch of the sen theorys of phones

which will flopped to the tune of a $10 billion write-down. this looks like the story of people making sure they're taken care of, even if the companies, the employees, the area in which the company does its manufacturing. its partners or the public are in no way taken care of. but i think the bigger story here is that it's a big wound. well, let's just dive into that wound, that is. it was one or three board members that approved that golden parachute just prior to making a bid for the company. if he had an inkling that he was going to run the ruler as a mrb, surely he shouldn't have been making these decisions on the board. >> i think that's probably true. i think what the board wanted to do was long overdue. so the idea was blackberry senior management had been pushing back on a joint venture or sale which the market was screaming they needed to do. in retrospect, they got there, they just got there late.

that is trying to push. it was columnsly done. it comes awful close to a big payout and a big payout a dismal run in terms of news and performance. >> i they're incentivizing the ceo, government tell us given up any hope that the hand sets will be popular. >> cash grab, right? max, let me ask you, when they report later today, we know the conference call has been canceled. do you think we're going to see any other bidders emerge? perhaps there was a time when folks thought lenovo or on other smartphonemaker might be interested. what do you think? >> i think $2.47 billion is not high of a price point. they're valuing the brand name and all the global relationships, etcetera, at less

than $1 billion. the sad story about blackberry is everyone starts to feel like it's a game called catch a falling knife. every day, it looks like less of a good dye deal and more of a problematic story. it looks to me like a story that gets worse by the minute. on the other hand, i think it's possible you get another bid, although we would see it pretty soon if at all. >> so with all the bad news we have heard, at least a small glimmer of hope that that poor waterloo company close to my hometown. thank you very much for that. just diving into this bond auction, italy has sold 6 billion euros that they're trying to get out there to the market in terms of government paper. it's had a range of 5 to 6 billion, but it's gone right at the top end of that. in terms of some of these numbers, the ten-year bond auction deal is the highest

since june. so not a huge issue given that we had this government crisis with sylvia berlusconi. across the curb, this is how we're shaping up. the ten-year on the market has interestingly built by about 7 basis points in the morning session. so there is an element tickingway in the back drop there. but nothing na has absolutely flattened just yet. stay tuned. [ female announcer ] what if the next big thing, isn't a thing at all? it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. we're going to wake the world up.

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these are your headlines today. the clock is ticking pb both president obama and house republicans refuse to budget as the government shut down deadline news. as up for sale blackberry prepares to report big lows, the ceo is set to end.with a $55 million handshake. and the eye trillionan prime minister gets back into a another political crisis as he warns the country faces a possible humiliation ahead of meetings today. >> we just had the results of an

italian debt auction out. across the board, not a huge amount of concern reflected. but italy' government hangs in the balance. if the former prime minister is stripped of public office, the current prime minister is returning from new york today to meet the president george napolitano to discuss the situation. let's get out to annette in frankfurt. the periphery is certainly the focus for angela merkel's government. what's the latest there and how are they likely to react to this flaring up of tensions around italy? >> well, for now, the german government is probably playing it very calm because they concentrate on domestic issues like the coalition talks because, of course, we need to have a new government in order to tackle those eurozone problems once again. interestingly, yesterday, and as well today, the bundes bank is holding a conference on european regulation. clearly, it was on supervision

that was there yesterday. the main topic was the eurozone debt crisis. and will it come back this autumn was a big question. as well, the bundes bank board member was responsible for markets. he was raising this question in his speech and he was actually warning that we need more growth and that there will be or there might be renewed tension on those sovereign debt markets. and, of course, linking to the potential tensions on the sovereign debt market, as well, are endangering the banking side of things. of course, the bundes bank is hitting the general council of the ecb, as well, and the ecb is mulling another eight-year low as we were discussing earlier on, as well. and i caught up with him and i asked him about this option to

have another lto. take a listen. >> it is not activated, then it is a really good thing. i think what we learned during the crisis is that if you don't keep the pressure into the pipeline, then nothing will change on the political side. so just being -- an announcement program did a stabilization, but the bundes bank is still much our task to finance countries. we are the monetary policy institute and, as i said, the politicians have to deal with their properties. >> we're seeing a decline of liquidity. but at the same time, the ecb is talking about another lto. how can that be? >> well, the king of speculators what will be next if there is maybe another three year. what is for sure is that the situation of the banks improved.

if it's for sure, the peak, the height of the excess liquidity was ruffly around 830 million euros. now we are around 250 billion euros. this is a good sign and we should take that as a good sign and it was more or less related to what the banks did because they had the option and used the option that came from the possibility to pay back something from the three year ro. so my doubts are not in the direction, but we should do next. we have to follow the process. excess liquidity is coming down, and to sum up, this is a good sign for me. >> sylvia, you are tracking obviously around that skeptical tone. that is because he is saying that there needs to be growth in the eurozone in order to convince investors to buy those sovereign bonds, as well, in the long run. and, of course, the ecb should stop those extraordinary

measures. they are very much against an testifiation of the omt program. but on the other hand, one has to say that coming out of southern europe, it is a lot of, as well, posturing when it comes to central banking. with that, back over to you. >> posturing, nothing new there. thank you so much. nike led the pack yesterday, the stock accounting for much of the index's advance. the sports wearmaker saw profits rise to $187 million, a 38% improvement on a year earlier. revenues increased 8% to $7 billion. take a look. mikey shares got a 6% bump in after hours trading after closing the u.s. session higher. they're now up in -- no, they closed, rather, up 2%. up after hours.

we'll see how they fare today. still with us, lance roberts. lance, we talked about the general market sentiment the last time. why don't we talk about some sectors, some picks. how do you like the retail sector? especially ahead in the u.s. today, we have personal data consumption coming out. >> that's one of the key issues we talked about earlier. when we look at economic growth, the real area that's sluggish here has been personalized expenditures. it's been very negative for, really, the last year. taking a look at these retail numbers on a month to month basis, they're good. we say they're up 11% this month, great. the problem is over the time we've seen this trend in personal consumption slowing and that potentially doesn't bode well for stronger economic growth. this is why we keep seeing the fed rachet down their expectations for economic growth through the end of the year.

>> thanks, thank you so much for being with us. >> sure. still to come on the show, we are joined from washington by vice president joe biden, former chief economist. he says just thinking about hitting the debt ceiling will cost the u.s. as much as shutting down the government. he is live. these numbers for us, here is a look at how futures are trading ahead of the open on wall street. europe also faring. stay with us. we'll be right back.

no end in sight in the battle over the debt ceiling on capitol hill. republicans now demanding a one-year delay to obama care and a list of tax measures. while president obama calls on a bill to increase borrowing. >> we're not going to submit to some total irresponsibility. congress needs to pay our bills on time. congress needs to pass a budget on time. congress needs to put an end to governing from crisis to crisis.

>> and it's humiliation for energy. the prime minister letta returns to a company in crisis. supporters threatened a mass resignation from parliament. and on the corporate front as blackberry gets red to report a near quarter billion dollar loss, chief executive torsen hines is in line for a $55 million golden handshake. and one of the dow's newest members, nike, beat the street yesterday with a strong showing on earnings. china is the only market where shares fell. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> you can note the tone on the boards, the red that was just tweeted on in these early

features. concerns about the debt ceiling and governments shutting down. it it seems as though those concerns are very much going to come to the forebefore the weekend. the ftse is -- actually, no, we'll just show you across an individual incidentsies. here in the uk, we're down 0.16% on the index. the xetra dax down 0.5% in germany. we have selling in france and in terms of italy, this is the concern that is just start to go hit the market. we've had a fear about some form of a fractured coalition in italy as letta returned back from new york and had the sylvia berlusconi supporters say they could walk out if berlusconi was tossed out of parliament. we're now down 0.7% on the eye tall kwan stock market. starting to make money in

these markets, we've been talking about that all day. here is what some of the experts have been telling us all morning. >> we're increasing our weight in financials. we consider maybe there's a story around ubs on weakness. >> we think the dollar is going to be delayed. ultimately, moving the tapering process from september to december is effectively adding $250 billion to the fed's balance sheet, which is money which is going to play back into the emerging markets and stretched. >> risk and fundamentals, we look at secretary issers with

strong earnings momentum. through the banks in europe, insurance and also we're overweight all three of those secretary issers. the next 12 to 18 months, they have positive earnings trends through the market. they have risks within them. >> we're just seeing this theme start to come through a lot of the commentary. the fed nonetheless, there is a feeling that we're going to see some volatility. looking at the markets today, the devil is always in the detail. i'm not seeing any theme between the cyclicals and defensives. it's almost repositioning. >> it's not an overreaction or an underreaction. year just muddling through, so you have to wonder where the buck stops and if we're going to see a time of volatility going forward. >> given the entry point, it's difficult, too. there is a theme playing out by investors that there's a value trade here in europe. money that was taken out in 2007, 2008 hasn't really returned. and that u.s. investors are now

looking beyond their own shores, beyond wall street putting money to work here in the uk. and there's numbers out here that people have been crunching saying between $150 billion to $150 billion of investment needs to come back into the uk. i can't help but think times have changed, right? you left the asian crisis for the debt market. now it seems everyone is bullish on europe. >> it's been patchy, hasn't it, in terms of the amount of money going into emerging markets. and just that pullback of late. that has covered a lot of this, as well. joining us now is todd horwitz from chicago. he's the author and founder of average jail options.com. todd, i used to speak to you in those heated days in emerging markets. where do you see the best value in the global markets? >> i think right now you're looking at, you know, asia and you're looking out in some of

the smaller ee memorying markets out there. but right here, i don't see a lot of value everywhere. and then before we look out. i think what you're seeing is the lack of funds flowing into other markets right now. but i would look into london and i would look into some of the smaller markets. but right now, i think there's a lot of issues worldwide that need to be solved before you look into any real great opportunities here. >> there's a lot of noe noise back home where you are about the debt ceiling, about the government shutdown. what form of investors are you seeing being taken at the moment? what is out this? >> i think the traders are not taking any insurance policy. you note that by looking at the vision. the vision is remaining well near its lows, which means option activity is very low. there's not a lot of insurance policies. i think you can see that we had our five-day losing streak in

the market, but yet the volatility stayed small and we're only 2.5% from the all-time high here. so we're really here, we're kind of used to this debt ceiling. you know, the fighting, the rhetoric, the political bantering. and then at the end of the day, they'll walk out arm in arm and say we solved the problem, everything is going to be fine. we're going to raise the debt ceiling once again and there should not be a problem. >> good that you can see a rosy ending here. todd, we'll come back to you in just a bit. while the countdown is on, the tension between democrats and republicans is palpable. house speaker john boehner has urged to the gop caucus to show flexible, but the republican-led house looks set to tie funding measures. even if a shutdown is avoided, lawmaker egg still need to agree on raising the debt ceiling.

senator cruz, if they don't make it, analysts think the consequences could be more damage to markets. joining us is jared bernstein, former chief economist to the current vice president, joe biden. now, we were just talking to our previous guest about a sense of complacency about how this is going to work out. what's the danger of maybe counting on that? >> first of all, interesting to think about tom cruise and ted cruz. they are quite different actors there. the probability of a shutdown is a bit higher than the debt ceiling that is reaching the debt ceiling. it's starting to look like we may be having a harder time avoiding a shutdown in the following sense. the bill from the senate is about to go back to the house. to continue funding the

government at current levels. if the house were simply to sign off on that bill and say, okay, we get it, we're just going to pass this, we would avoid a shutdown, for certain. but, in fact, they're now saying that they're going to add some other language to the bill, send it back to the senate, because things in our senate take numerous hours to complete. they won't have time to do what they need to do by midnight on monday. now, there's one possibility here. i know this is all arcane in the weeds. the house could say, we want you to consider this and in the meantime, keep this going for another few days, maybe a week. but most people think the probability of a shutdown has gone up a bit in the past few days. less, though, for the debt ceiling. >> many people think that the politicians won't be completely

irresponsible. if you look at the cost and the interim, this is tallying up the costs to the u.s. economy, isn't it? >> yes, i'm afraid that's true. first of all, on your first point, markets as the speaker before me suggested, markets are quite complacent about the idea that we would reach the debt ceiling. and the reason for that, we just haven't done it before. we tend to shuffle up to the cliff, but at the last minute, as you suggested, members are not that irresponsible to default on our sovereign debt. this time, though, i must say feels different and more worrisome. i think the probability is well below 50%, but it's higher than it has been in the past. you have a group of republicans who are insisting on completely

unreceivable terms. and it is true, we have seen that even get to go this level of tension adds a few basis points to our interest rates and that's costly. >> jared, then why do investors turn into zombies on occasions like this than go to the traditional safe haven and buy u.s. treasuries? >> interestingly, if you actually listen to even the most rabid republicans who seem xhietly okay with breaching the debt ceiling, even they are saying, well, we'll make an exemption for rolling over sovereign debt. we'll allow the treasury to borrow, but only to pay interest on the debt so we don't stiff our critters. it's called prioritization here. for many of us, prioritization

is saying we'll pay this part of our debt, but we won't pay some other parts of our bills. that to me is synonymous with default. i guarantee you if we're crazy enough even to go that far, we will add a risk premium to our interest rates. even that will be very problematic. so it is true that people are talking about trying to protect or exempt critters from a breach in the debt ceiling. >> you've been saying in your notes, it comes down to whether boehner has had enough of his kamikaze caucus yet. what is it going to take to sort of get john boehner to scale back and end what you call this come k kamakazi caucus? >> when i say the possibly of reaching the debt ceiling is less than 50%, i'm not saying

it's 49%, but it's way less than 50%. but it's not zero. if you listen to the gentleman before me, he was assigning it at zero. i would put the probability above zero, but well below 50. john boehner, our speaker of the house, is really a linchpin to resolving both the crisis of the debt ceiling. but the only way he can be sure to do so is with a lot of democrat votes. that is something republican leaders don't like to do in the senate. they would rather pass any bills with a majority of their caucus. but if he's willing to say, look, i much more value the functioning of the congress, the protecting the economy, not inflicting any more wounds on an economy that by the way is already too fragile from my perspective, then he could say we'll pass these bills with the majority of democrats, push the congress off to the side and complete the deal that way. >> okay. jared, many thanks for those

insights, jared bernstein. and, karen, i think it's time for me to go back to asia. >> you weren't too far on your cruises. the last tom cruise was pretty much near the end of the year and they had to close him. >> oh, my goodness. you know, i'm only good for a week longer. which exchange is winning the battle for twitter's ipo? we'll explain when we come back.

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these are your headlines this morning. let's run you through the big stories. the clock is ticking. both president obama and house republicans refuse to budge as the government shutdown deadline looms. blackberry gets set to report big losses. the ceo is set to receive a $55 million golden handshake. and the italian prime minister gets into a another political crisis as he warns the country faces a possible humiliation ahead of the crucial meeting today. and as excitement over twitter's ipo builds, the tension is turning to where the firm will listen. sources claim the nyse is the

hot favorite and has been courting the company by adopting its promoted tweets program. but others say the fass dak is still in the race. seema moody is standing by at cnbc's headquarters with more. over to you, seema. >> hi, dee. it's no secret the ipo market is hot. another one lists say thanks to the equity rally, the jobs act and the improved in performance, private companies have been more inclined to list on the public exchanges. this resurgence in activity has been a boom for the nyse and the nasdaq. shareholders are particularly interested in where twitter, the social media company will list. given the glitch of facebook's ipo last year and the trading halls in late august of this year. now, i caught up with nasdaq's senior vice president and head of few listings bob mccuey, and he said it would be a big victory for the exchange. >> certainly twitter would be a big win for the nasdaq. twitter is a wonderful platform for the -- for ideas that

flourish and for communication and we certainly think that they would be well suited to be part of the nasdaq family of companies. they certainly were and are a disrupter. >> when asked why twitter would benefit from listing on the nasdaq versus its competitor, he said twitter would be able to take advantage of nasdaq's solid foundation and technology and it would look to establish a relationship that could open the doors to future opportunities. >> it's talking about what we can do for them when the bell stops ringing. because when a company goes public, it's about the long-term partnership that they create with their exchange. and we really feel that our value proposition at nasdaq is as strong as it's ever been and we look forward to our continued discussions with them .expect that they'll make a decision sometime later this year. >> now, as twitter mulls over

where to list, experts say one of the factors that may be considered is where tech companies are listing this year. now, as of close on thursday, the nasdaq is outpacing the nyse and a number of tech ipos, that is 20 versus 17 with montage, applied electronics debuting on the nasdaq yesterday. although two tech companies are expected to list on the nyse today. ladies, it will continue to be a close race between the two exchanges. and you can bet wall street will be paying close attention. >> thank you so much, seema. now we are definitely excited for that one, i think, around the world. >> i wonder where the backtrack will rise. facebook now across $50 for the first time. linkedin was close to its all-time high. these are combos that you want to take a look at and say how did those social networking sites go and what does this mean for twitter. >> as you say, good timing for facebook to hit that 50 mark.

and, you know, i have to bring it back to asia, as well. that alibaba that may list in new york, as well, is looking more likely. so a lot coming up and maybe this new era to shake off that facebook debacle. >> it's a july in the crown for ipo. if you sell alibaba, a little bit of pressure on management, doesn't it? let's take a look at another one of the top stories out there today. jcpenney has filed to sell up to $1 billion in stock. the company says it will offload up to 92.6 million shares in the public offering underwritten by goldman sachs. jcp stocks fell below $18. managing to claw back some gains, bouncing up 3%. ross, still to come on this show as we wrap it up, should investors be more concerned about the threat of the u.s. government shutdown or the breach of the debt limit? we'll get more from todd wore wits straight after this.

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welcome back. let's get you up to speed with how european markets have been traveling throughout the session. we had a bit of acceleration throughout the session. we're down almost 0.7% on the ftse. you can see across to the dax, the cac are all weaker. the italian market has been interesting today. we started off a little softer, but that's started to sl off as we move towards the lunchtime session. this is somewhat as expected because we have this concern about whether the coalition is now going to fracture in italy because sylvia berlusconi maybe dropped from parliament. saying if that happens, the coalition doesn't stand. so those threats have caused prices or yields to rise. we saw an auction today, it was a slightly elevated price on the ten-year in the not enough to be

worried about. but this seems to be irritating investors and now the five-year credit default swap has risen by four basis points to its highest level since july 23. it is a window that we're seeing. it's a two to three-month window. you can see this creeping higher. let's take a look at what to look out for in the u.s. today. give you a look at what's on the agenda. economic data in the morning with personal income, consumer sentiment and farm prices. also, u.s. federal reserve president to speak today on the docket charles evans, williams dudley and boston's eric rosengr rosengren. blackberry is out with their earnings today at last. >> can those fed presidents stop speaking? they're not helping the market. >> i'm with you on that. >> and you can see this morning this is how we're shaping up on the back port. let's get back out to todd horwitz. todd, we have more fed speakerers as we just outlined. how volatile is this for the

markets when they have this question mark hanging out there for investors? >> well, you know, i think the biggest problem here is the uncertainty that the fed is creating right now by not tap tapering. i think it's created more uncertainty. i think they don't know how to get out of this mess. so this could cause the market to sell off as more of these fed governors talk and as the uncertainty of what they're going to do in the future. i think it's going to have the reverse effect. >> when do you think tapering is actually going to happen? >> want, i don't know that they can ever taper. i think what they've done is put themselves in such a hole here that they're going to -- this easing problem will probably go on for at least another year because i don't think they have a way out. they're far too much in trouble and in debt. >> got it. thank you so much. >> karen, i thought we were going to get through a whole show without the word tapering.

>> no such luck. in maybe tomorrow. thank you for watching.

good morning. today's top stories, the senate is preparing to pass budget legislation, setting up a showdown, you know, with the house of representatives. in corporate news, jcpenney announcing plans to raise capital as we heard rumors of yesterday. and on the market front, stocks were able to snap a five-day losing streak. it is friday, september 27th. we're bearing down on october, the scary month of 2013 and "squawk box" begins right now.

good morning, everybody. i'm becky quick along with joe kernen. andrew ross sorkin is reporting from beautiful new england this morning where business leaders and thinkers are gathering for the nantucket project. that's why we're playing "sail away." among newsmakers joining us today we have bob diamond, alan schwartz. the sfeet has votes scheduled today on legislation to avert a government shutdown. the measure is expected to pass. it does not include house language that would strip money from obama care. house republican leaders have said they are unwilling to sell the bill. a national congressional debate is expected to -- into the weekend. we have personal income and