tv Worldwide Exchange CNBC January 9, 2015 4:00am-6:01am EST
jç welcome to "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. >> dramatic developments in france. >> and european markets on the flat line after yesterday's global rally that saw u.s. stocks wooil wipe out all of their losses for 2015 as investors wait for december's nonfarm payroll report. >> from europe to china, deflation fears growth after producer prices fall more than
expected from the lowest level since 2012. shares of santander fall sharply after the spanish lender prompts a number of investors to downgrade their price target on the stock. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. french media are ordering of a possible hostage situation and shots fired in the area where police are searching for the two suspects in wednesday's attack on charlie hedbo. for the latest developments on this story, we're going to join our reporter in paris, stephane pedrazzi. >> morning, wilfred. some people have been taken hostage a few minutes ago in a local printing company.
it's the northeast of paris, about 20 kilometers away from the french capital. we don't know how many people are held hostage at this time. the information has not been confirmed by police, but the police have asked the local population to stay home until further notice. the interior minister just said a few memberships ago that a police separation was under way to detain the suspected gunman behind the attack at charlie hedbo. five police helicopters are flying over for now. that's all we happen. but the informations are coming very quickly. so we are able to confirm at this stage that some shootings have been took place this morning in a small city located northeast of the airport after a car was stolen. we don't know how many people. at least the one person has been
taken off stage according on to a french media report. we will have more information in the next coming minutes. this morning, the french police held a security meeting. yesterday, the region of picardi, located northeast of paris, has been placed under high security alert. in total, 88,000 policemen and troops have been deployed to ensure higher security level. most of them of course deployed in the french capital to protect public mragzs. and all the newspapers after the attack of carly hedbo on wednesday. in there are still events unfolding right now. as you were just pointing out. stephane can you help us understand how far that town is from the headquarters of charlie hedbo? >> it's located about 30
kilometers away northeast of paris. it's exactly in between the french capital and the area where yesterday the police was looking for a suspected gunman. which would mean if we were talking about the same people, that they tried to come back to paris after being search by the police yesterday. it's very close to the airport, according to a report that we have. so again, people taken hostage and we don't know how many people are in this factory where the two suspected gunmen are at the time being. >> thank you so much for keeping us up to date on those details. meanwhile, in paris, president hollande is expected to meet marine lepenn the leader of the far right on the country. she's blamed the attack of
radical islamists. militants linked to syria are plotting attacks on the west. in a public address wednesday, the head of the m-15 says groups tied to al qaeda may be looking to target iconic sites and public transport to add to casualties. the speech was planned before the attacks in paris took place. the december u.s. jobs report is out at 8:30 a.m. eastern. the consensus forecast is for nonfarm payrolls to rise by 229,000. the longest stretch of job gains above 200,000, the longest stretch since 1994. the report will be watched to see for wages rising. let's talk more about this with steven shell.
good morning to you. >> good morning. >> thank you very much for joining us. they did feel the u.s. economy could continue growing despite issues around the world. do you think this is important for them to maintain that point of view? >> very much so. this is the key can he lease as far as the headline is concerned. more importantly, i think, is that unemployment rate. we think it's going to fall again from 5.8% to 5.7%. this is the key area. what it highlights is that slack is coming out of the economy fast and i would argue faster than the fed anticipates. so this is going to be a gooi key guide as to whether we get an early rate hike. >> since we have been seen an acceleration of job growth do you think traders will put more focus on the nitty-gritty
details, as wage growth continues to be a concern for the market. >> i think there are three things to focus on. firstly is the headline number. it is important to ensure we're still growing at 200,000 plus. secondly that key unemployment level, does it continue to fall? but thirdly, earnings. this is very key. do we get average hourly earnings continue to pick up? so far wage growth has been fairley muted. but if it does start to pick.it could scare the market. >> let's talk about some of the other things we saw in the minutes. they did make some suggestions they were looking at expectations a year out. so far, the debate has been about inflation is not high enough let's not let ourselves slip into deflation. do you think they could move slightly earlier than expected? >> again, absolutely.
we believe the fed will hike early. we're calling for a move in june, which is certainly ahead of the market. i think the key point i would lie light is if you're a central banker, you want to look at inflation two years out. and what the central bankers need to do is look at the leading indicators of inflation and that is going to see unemployment falling, wage growth picking up rather than where cpi is at the minute. >> so you think they would raise rates, you're saying the fed will be focusing on long-term inflation, perhaps 2016 2017 estimates? >> yes, very much so. as i said our view is earlier hikes in the market expects. >> despite inflation not meeting that target. >> we mentioned the minutes. in those minutes that were released on wednesday, the fed clearly signaled it would look through low near term inflation if it believes inflation will pick up down the road. >> stick with us. we want to talk more about the
markets. the snap back rally we saw on wall street. and let's get your thoughts as well ahead of the cnbc.com to find out why some experts think today's job numbers could be a big disappointment to the markets. log on to cnbc.com for that report. it was a very strong day in european markets yesterday. all the major bourses up over 2% largely on that letter that we saw from mario draghi to the european lawmaker saying that he is ready to use outright quantitative easing if necessary. that gave the markets a bit of a boot. we opened down 0.3% but we have strengthened throughout the day. we're basically flat on the stoxx 600 now. let's look at the individual european markets. everyone is pretty much range bound. the ftse 100 is flat.
germany and france are both up but only slightly. this was for november. germany was down 0.1%. frabs was down 0.3% whereas it was forecast to be up 0.3%. italy is leading the charge but up 0.3% today. so a slight muted today after yesterday's strength in europe. let's look at bonds. that equity buying that we saw yesterday across the board in global markets was offset by a little bit of bond selgz. so yields have picked up at the margin. we're back at 0.05%. let's not overblow things these moves of yields going up. what is this point to go overall? in europe, expectations of outright quantitative easing and in u.s. of kwient uncertainty
about the global economy and safe haven bond buying. brent is still weak. it had a rally in the last couple of days. wti, 48.74. it's basically flat on the day. brent, however, is declining at 0.58%. gold is managing to stay just above that 1200 level. it's had three decent weeks, but this last couple of trading dates, it's been just about flat. let's quickly look at some top stocks in europe today. santander is sharply lower. this comes a day after the new chief announced a capital rate hike plan to raise 7.5 billion euros. the shares are off 3% on the news.
this on a media report it could demand they abide by stricter capital rules. yesterday, they raised 12.4% on speculation they could acquire the -- on the spanish lender altogether. tesco, after a strong day yesterday, is off 2.3% today. that's after moody's downgraded the debt to junk level. this comes after part of a massive restructuring plan. they hope to return to strength after fourth profit warnings and an equitying scandal next year. coming up on "worldwide exchange," after a rough start to the year appearing has one of its best days in over six months as it reveals record sales at its app story. we're going to discuss that. also, what is the outlook for commodities? we've been seeing some big moves
the eurozone isn't in deflation. the comments come after cpi drop 0.2% in december which marked the first negative reading since the financial crisis. in a television interview, he said it's worth considering whether weak consumer prices are short-term or long lasting. reiterated his willingness to tackle low inflation with additional methods including qe. in a letter the ecb chief says the governing council was unanimous in its commitment to using unconventional instruments within its mandate which, quote, may entail the purchase of a variety of assets one which could be sovereign bonds. let's get out to annette ta who is live in frankfurt with the latest on how investors are reacting to that news. >> annette. >> markets were rallying again on that news or that letter. but actually looking at the letter, it's not so much
surprise what we are seeing inside there. that is essentially what mario draghi already said during the last press conference that there is unanimity when it comes to deploying further unconventional measures. but we also know that the planning of those further un conventional measures that's the tricky part of it. that's essentially what mario draghi will be presenting to the mblths to us on january 22nd. even though they don't want to call it yet deflation, they would probably coin it negative deflation. so most likely the big question
remains how much the ecb is willing to pay, to buy, i should say, and whether they're going to buy sovereign debt or whether they refer to i would say a compromise for lenders like the bundes bundes bank that every central bank might buy their national debt. and the biggest question mark actually is referring to its effectiveness. as also larry summers was saying that there would not be a lot of these, even if the ecb would buy government bonds. with you, back to that.
now more information on that hostage situation out of france. there were stories there had been somebody killed in that situation, but the paris prosecutor's office has come out to deny reports that one person has been killed in that shoot-out. we'll continue to bring you more information as we get it. they're going to continue to reduce costs and the china central bank will steadily push forward with yuan convertibility
on the capital account and quicken market orientated interest reforms. cpi came in at 2%. let's get out to sri jegarajah for an update in markets. >> it was a curious day in the china market. yes, we got the inflation numbers for the month of december. and we did see a benign read. they have that much more room to maneuver and further scope for easing. that is what really juiced the market. and it was up by as much as 3% or more than 3%. at one point during the session. towards the close, we got this steep sell-off. and the market surrendered nearly all of the gains it made
for the day. the subindex was down by 1.4%. remember, there was a hong kong listed property developer that missed the coupon on its bond payment. that has sent some jitters through the market. it sent some jitters through the developers. but we have seen this story before where the pboc has acted after the market close and heading into the weekend and perhaps some investors are expecting that. and the markets here running the distinct possibility that we could see another upbeat payrolls report. back to you now in london. >> sri, thank you very much for
that. steven, all of this the rally we've seen in china and the fundamental numbers, it's based on a lot of liquidity injected by the central bank. >> you could argue that. i think one point i would pick up on is this ongoing faux focus. this is a key long-term goal here for the chinese. and it explains part of the reason as to why the renminbi has remained relatively stopping. i think there is a key thing going forward. that is the overall drivers here of renminbi.
>> good news on the economy means good news for stocks. in europe though so far we've seen bad news on europe's economic situation has pulled markets higher because it puts more pressure on the ecb to add sooner rather than later. how are markets responding to that moving forward? >> clearly in the eurozone there is pretty much a crisis as far as inflation is concerned. so there is a strong need for the ecb to act. i think the market wants to see overall growth.
this is a key argument and a key step up for markets. will they less the deflationary situation continue to unfold? this is a cue point. if they don't, it will be a downward spiral. >> sure quantitative easing works in the u.s. but europe is dealing with its own economic challenges. >> if they don't do it it's pretty certain things will continue to decline. certainly the point i would say is this is a mip murm for the ecb. >> reform. >> of course.
>> at what point does these inflationary policies albeit that is needed flip the other way and cause panic and des operation to the kind we saw in russia late last year and we see the currency sell-off very very sharply and bond yields hit the other way because people don't believe this is enough and the government has given itself far too much debt to pay back. >> i think the ecb has been clear on this. they view their mandate as allowing or buying time to make difficult decisions. structural reform is the key here. i think the key point is qe buys them time for the economies to de-lev raemg. >> let's talk about your f xw calls to the euro heads and
particularly the anti-consensus one. you're -- on the dollar. >> this is a currency that's been beaten up. the market is pricing in a significant possibility of rate cuts from the reserve bank of australia. we actually disagree with this. we don't believe they will cut at all. >> the aussie/dollar is typically a commodity driven currency that moves out of the back of china. >> in in fx we often refer to these as the commodity block. there's been a delinking between the commodity prices and particularly in australia. what we're seeing is much more of a yield relationship and the market is driving these currencies based on interest rate expectations.
that is why we think the way the rba responds is going to be very important here. >> thank you very much for joining us. and still to come on this show, we will have continuing coverage of the hunt to find the suspects behind a deadly attack at carly hedbo. stephane will join us live from paris with an update.
dramatic developments in the northeast of perhaps. hostage taking and gunshots as police continue the manhunt for the two men behind the attack on charlie hedbo. and yesterday's global rally saw u.s. stocks wipe out all their losses for 2015. now we focus on the nonfarm payroll reports out of the u.s. from europe to china, inflation fears and producer
prices fall more than expected since 2012. shares of santander fall sharply after the spanish lending prompted a lot of lenders to downgrade their price target on the stock. >> let's take a look at european markets right now. they are trading at least slightly higher the last time i checked. this following that two-day rally that we saw over the past few days. bad news on the economy, good news on the markets as we've been suggesting or talking about. mario draghi. the focus now on the governing council meeting on january 22nd to see if he would unveil full blown quantitative easing. we're looking at the xetra dax basically hugging the flat line. the cac 40 the ftse mib down just about 0.11% in today's trade. >> let's look at forex and
expectations of bond buying from the ecb continues to put pressure on the euro. it's been hovering around nine-year lows. a slight bounceback today. it's at 1.18 as we speak. the moves for the other currencies against the dollar has been more range bound at the start of 2015. the yen today, slightly stronger at 11 9.4. now, back to our top story. french media are reporting of a possible hostage situation and shots fired in the area where police are searching for the two suspects wanted in wednesday's attack on charlie hedbo. for the last 48 hours, authorities have been scouring a woodland. there were reports one person has been killed and the paris prosecutor's office has since denied. let's get out to stephane who is live in paris with more. >> a you foo minutes ago, the french interior memberster said a police operation was under way
to detain the two suspected gunmen. the head of the police for the paris area claims that the operation is probably close to an end. the two suspected gunmen are taking people off stage in a factory which is located about 25 to 30 kilometers away from paris in northeast of the french capital. that's close to the airport whereby the way part of the traffic has been diverted to avoid flying over this zone. we don't have a -- we don't have information about how many people are taken offhostage in the factory. police asked the local population to stay at home until further notice and announced that children at school would remain in the school until further notice because of the latest development. the decision to attack the factory and to try to detain the gunmen will be taken by franceois
hollande. the current president is with the justice minister and the minister and a decision will be made from there. we know there are massive police forces on the grouped, more than 1,000 policemen. five helicopters are currently flying over the zone. a lot of policemen and troops have been sent to paris. in total, 88,000 police officers and troops have been sent to the french capital and its area to increase security. that's all we know for now. stay with us because we might tell might have more information in the next coming minutes as both the interior minister and the head for the police in paris region are confident that the operation might be over soon. so stay with us. >> stephane thank you very much for that update. we've also just had a couple more flashes on the situation, reports that flights have been diverted not to fly over this particular area over the hostage
zones. so there is no wider impact today reporting on air traffic, but flights are being diverted to fly -- to not fly over this host aemg zone.age zone. now, moving on let's get back to markets and commodities in particular. gold -- i'm sorry, oil just ticking off a little bit after a tiny bounce back in the last couple of days. brent down 0.95% today. nymex down 0.2%. let's kick off the discussion on gold which is just hovering above that $1200 level. it's had a decent week. to discuss a little bit on gold joining us is edmond shing. good morning to you. >> good morning. >> thanks very much for joining us. when we think of the level of volatility we've had over the last few months and the uncertainty moving forward, continued pressure on central
banks to positive forward, why has it been going up higher? >> that's the funny thing, wilfred. it depends what currency you look at. if for instance you were to consider gold as a currency and you were to look over 2014 actually, you would have found that gold was the second best performing currency after the dollar. in other words, if you're a euro, sterling or yen investor you make quite a bit of pone by being invested in gold. anything you gained in the dollar over the year you also gained in gold. >> so when we look at it like that does it maintain its safe haven status which perhaps some people have questioned over the last two or three years? >> i think it does. well, if you think about now, for instance take the five year german bond what does it yooep yield? it yields a yef or zero interest rate. what does that tell you? it tells you that the costs on investing in gold or leaving the money in the bank or investing in a five-year german bond is
zero. there's no cost. so the opportunity cost isn't there at the moment. volatility has been on the rise. over the last few months we've seen three significant volatility spikes in the last few months in the stock market. fx volatility is also on the rise. people are, i think, looking around and thinking where do i hide? bonds may not be as safe as you think. from that point of view gold is a reasonable safe haven. >> so once interest rates do rise in the u.s. perhaps that call will change because investors will see that value versus an inflation hedge. >> how quickly is the fed going to raise rates? even if it raises rates, it's going to be incredibly slow. we know there is no inflation in the u.s. despite the fall in unemployment. but there is no wage growth. there's no commodity inflation. look at gasoline prices. they keep sinking and sinking and sinking. why are they in a rush? >> how closely do you watch consumer command out of china and india? india, there was weaker demand
for gold over the past year as the economy dealt with its own economic challenges. it's still the same situation. given that we have a new prime minister, the current account deficit has been narrowing slightly. that's perhaps added a boom for gold buyers to rush into that market. >> i think that's true and i think we should also think about china. there has been significant buying of gold by chinese investors and chinese public over the last year as gold buying has been more and more liberalized. so, again, that's an important extra demand which has more than offset the withdraw from gold etf. >> let's touch, as well on the price of oil. you do think it has bottomed. >> who knows. who knows. i think we are at the point where a number of very noted authorism on oil, we're up 351.
i'd rather be looking at that now because you can get some fantastic yield. prices could go significantly higher. so many people are already so bearish. >> we're going to have a quick look back to the story from france. french media are reporting of a possible hostage situation and shots fired in the area where police are searching for the two suspects wanted in connection with wednesday's attack on french magazine charlie hedbo. for the last 48 hours, officers have been scouring a large area of the woodland in paris in the northeast. >> those events continue to unfold. as an investor we would love to get your thoughts. how closely are you watching the situation in paris right now? >> i'm watching the situation in paris because my family lives just outside paris.
so i have personal interests. clearly, it's a shock to the nation, but from an investment point of view, i have to be honest, it doesn't have a great impact. >> because, of course, the market never likes uncertainty. given this is a developing situation, there is a lot of high uncertainty about who is behind this attack and if there are broader implications. >> i think that's right. but i think what this shows is a rise in this it's that we have been seeing over the past few years, think about the uk spain, the train bomb attacks, this is something unfortunately that we have been seeing recurring every year two years, somewhere in the world. >> are you surprised that markets haven't been reacting negatively to the events unfolding out of paris? >> not really. because, again, what is -- you know, the real economic impact is very difficult to judge and probably in the grand scheme of things will not be that great. >> let's bring just a little update of the situation that we've got at the moment. we do believe this hostage
situation does relate to the two suspects in paris identified by french police involved in the shooting at charlie hedbo. yesterday, there were reports coming out of french media that one person had been killed in this hostage situation. the prosecutor's office in france has since denied that report. as you can see there's a lot of activity around the situation northeast of paris. and there are reportedly five helicopters surrounding the situation, significant police force on the ground and we believe surrounding the two main suspects in the shooting of charlie hedbo. >> and reports are that francois hollande will be at the interior to take stock of the situation. so more updates from francois hollande and more from various leaders on the events unfolding out of france. that's coming up after this
welcome back. dramatic sdwomts in france. police are continuing to search for the two gunmen in france. >> european markets on a rally after yesterday saw they wiped out all their losses from 2015. we'll keep an eye on how european markets trade ahead of that report. in the meantime let's get back and focus on our top story and join stephane pedrazzi live in france with an update. and we've been told that the french president will mon to the interior ministry where he will monitor the ongoing operations and will make a decision whether or not the police troops should assault the factory where the two suspected gunmen have taken hostages. this has been reported by several french media.
it's located in a very small city, dammartin-en-goele northeast of the french capital. to avoid flying over this area the incoming air traffic has been diverted to other runways. we know that there are massive police resources on location. more than 1,000 policemen. five helicopters are currently flying over the zones and globally speaking 88,000 police officers and troops have been deployed in the paris area to ensure a higher security. a security alert has been raised to the highest level on wednesday. on location the police asked the population not to go out from home for the time being. at school children will remain inside the school until further notice. again, the decision to assault
this factory will be made by the french president francois hollande. the debate there continues. president hollande is due to speak at 11:00 cet when we hear from him. these are live pictures coming from dammartin-en-goele. where there is indeed a hostage situation taking place. the main suspects are involved from the shooting of charlie hedbo are in this area. there are five helicopters in the area and more police presence arriving on the ground as we speak. we've been keeping an eye on the charles de gaulle airport in
paris. we've been learning flights have been rerouted to avoid flying over the hostage zone and they've added there is no impact at this point on air traffic. but, of course everyone keeping a watchful eye on the developments out of dammartin-en-goele. we've been told resident necessary that neighborhood, in that town have been told to stay inside as the police try to keep the manhunt going forward for those individuals involved in the shooting of charlie hedbo. >> we have a flash coming out of the french interior ministry. they said quote they are almost certain the hostage takers involved in this situation are the two hedbo suspects. we are going to continue to stay with these live shots. you can see significant police pressure on the ground circling these suspects of the charlie hebdo situation.
we are going to move on our next guest says the low interest rate environments coupled with 2016 could make it an ideal yield for bonds in france. let's focus the conversation now to gustov. thank you so much for joining us. let's kick it off with a one-on-one in bonds. the idea to buy them is that you get rewarded with lower interest rates. in the future you might get a nice equity pick up if they convert. >> exactly. it's like a bond with the stock option. >> so in terms of issuance it can be in the short-term a cheap way for companies to raise money. but in the longer term they might dilute shareholders.
>> do you see opportunity in the convertible bond space going into this new year? >> potentially, yes, given that the yields on the government bond market i think it's inevitable as investors will be refocusing on the corporate bond market and including convertibles. people will be pushed to go to high yield where there is great risk and, therefore, anything good for high yield is good for convertibles. those are the two map drivers you need. actually in these circumstances they're quite proficient. >> there are specific sectors you're expecting to see more activity in the convertible bond space? >> wengs, yes. if you look at issuance especially in the telecom sector, you are seeing for some time now the m&a is and consolidation, a lot of this seen back in 2014 telefonica and eplus, for the commercial
bond market watchers think this will continue. that's the one thing to watch. >> and let's talk about the amounts of convertibles maturing this year in europe. there's a significant amount to mature. is that right? >> that's right. we expect about 10 billion euros and that's of course quite significant. there are some big maturing like volkswagen, 3.7 billion sharing in the autumn. however, it's -- many would come back to the market again with repeat issues. the market already, they are priced familiar with the process. and, of course, the low -- that they could achieve could be a main attractive factor. >> but do you see the main demand for new convertible bond issuance coming from investment in europe or more from mergers and acquisitions, companies acquiring and, therefore, using convertible as a way to finance the acquisition? >> it's a very good question. i think it's a mix of both really. you could see the stuff that you have seen like real estate for example, has been in the market
for a long time just to continue -- themselves. and especially in telecoms we've seen m&a driven convertible bond issuance. it's a big acquisition that only -- in cases and convertibles might be a good population option. >> good start there. thank you very much for joining us this morning. we're going to recap the story unfolding around dammartin-en-goele. the two suspects the two main suspects of the charlie hebdo shooting back to 48 hours ago are involved in the situation. the government has come out in france to say that they are almost certain that those two suspects involved, as you can see multiple helicopters in the area, reports have over five and police continue to arrive in the area on the ground. we will continue to update you on that situation as we continue throughout the show. >> and, of course just if
you've been keeping a watchful auto i on the markets, i want to brick you back into the conversation. do you think this will weigh on investor sentiment? this is day three of the search for the terrorists responsible for the attacks that took place at the satirical newspaper in paris. >> i think in the short-term in paris, the focus is on quantitative easing. but i think what we should focus on going forward is the political -- the potential political impact that we could see, not just in france, but for europe. should we see a further drift to the right wing? we've seen the uk polling at 60%, lepenn is theoretically leading the first round of the next presidential election, according to the latest polls. is this going to drive more people to vote for the extreme right? and if so that will create more uncertainty within the eurozone you know what will happen to the existing government? we have elections in the uk this
year. what will happen in four or five months? will cameron be the prime minister still? >> interesting, as well just to mention that quote we had out of the prime minister a few minutes ago where we said we were involved in a war against terrorism, not a war against religion. it's very important to keep that perspective as we go through. interesting the use of highlights marie lepenn. she said they were requesting to bring back the death penalty in europe. it's a big issue across europe. i want to bring it back the market relating to politics. interesting, you say the far right anti-european sentiment, perhaps anti-austerity. in greece, that's coming from the far left those sentiments. is it too easy given the tough situation for the populous calls coming from the parties? >> that's the point. in general, i think most of the viewers have been sick and tired of the traditional ruling parties. and that's why they're either going to the extreme left or the extreme right.
greece, to be honest, has pretty much a communist past. it's not that disappointing to me that they should veer to the far left. when they do nonclassic extremist parties. but we have seen this in netherlands, scandinavia, france, the uk it's a repeated phenomena phenomena. when it comes to the general election, let's say in the uk will people really want to vote uk? when it comes down to it? how many issues do they even know apart from getting out of europe and anti-immigration? what other parties do they know about? i think the answer is none. >> you mentioned earlier if you're willing to touch on it that your family lives in and around paris. can you give us a feel for what sentiment is like on the ground? >> just shock. again, if you think about the impact, we haven't had as many deaths in a terrorist attack in paris since 1968. in fact, even in 1995 the last significant terror attack there were eight. so the charlie hebdo massacre is
significantly worse and it's still not over yet. so i think that people are just reeling in shock, frankly. >> as you said there's the live pictures of the event unfolding in the hostage situation in france at the moment. >> there's been a discussion around air traffic as we watch the situation at dommartin-en-geoel. there is no impact on air traffic and flights have been diverted from flying over the area. flights at this point are normal at the charles de gaulle airport. air traffic is being a concern. it's an international airport. watching the situation, the potential hostage situation. >> and we've got about 30 seconds left on the show. we'll bring you back to markets very quickly before we go to break. you're saying that u.s. dollar will -- in 2015? >> i can say. i think particularly in fx
markets, the trend in your friend. the dollar has been very strong. we see a number of reasons why other major currencies, yen, euro even sterling will falter further in general. so would is going to win? it's going to be the dollar. >> edmond thank you very much for joining us today. it's been much appreciated, as ever. >> and still to come on the show, as we've been telling you, we will continue our coverage of the dramatic events unfolding in france as the hunt 20 find the suspects of the charlie hedbo shooting continues.
welcome to "worldwide exchange." i'm seem where a mody. >> and i'm wilfred frost. >> the dramatic hostage situation in the northeast of france continues. spain traffic in the paris area is diverted from flying over the hostage zone. european markets on the flat line after yesterday's global rally that saw u.s. stocks wipe out all of their losses for 2015. this as investors wait for that
december jobs report. macy anticipates is scaling back its plans to shut several u.s. stores as it responds to the way customers are shopping. the dramatic developments in northeast france as reports of a hostage situation and shots fired and police are on a man had you not. at the nearby charles de gulle airport have been diverted to avoid flying over the area. let's get out to paris. hadley gamble joins us now. >> good morning, wilfred. from what we know so far, this is a rapidly changing situation. we understand french police have asked film crews not to go live with the situation on the ground
just 30 miles northeast of france. there are reports that one person has been killed and one host aem at least has been taken and other people have been wounded, but the french government has denied so far that there have been any casualties. we know there are about a thousand the police o ground. this is a massive situation to hostly flee this area and take steps against these two suspects. we understand from the french government that they do believe these are the two brothers that they have been seeking in the murder of 12 people taking place just a few blocks from where i'm standing. a massive situation is taking place in france 88,000 or more security personnel working around the clock trying to bring these guys to justice. we understand the french president francois hollande is working with the interior minister to decide what to do next.
>> hadley give us an update on the exact location of where things are happening. where exactly is dommartin-en-goele. >> we're in paris and the situation is taking place about 30 miles northeast of the city. we understand this situation has become confined to an industrial area around that town. this is apparently a large industrial complex, larmg industrial building and it's a printing area. so we have to wait and see what more information we can garper. >> hadley that you know very much for that update. we'll be out there with hadley throughout the next hour of the show. let's take a look at u.s. futures. right now, futures indicating a move lower by around 40 points on the dow jones, the nasdaq lower by around 2 points and the s&p down about 4 points in premarket trade.
let's take a look at european markets. another focus will be that jobs report. a mega rally did push stocks higher yesterday. but, of course that could all change depending on the december jobs report that we get out tt today at 8:30 a.m. eastern. the question is will this number change fed policy going forward if it's better than expected? does it put more pressure on janet yellen and the fed to raise rates sooner than expected? here are the expectations for december. we're expecting an uptick of 240,000. november at 321,000. we are expecting the unemployment rate to dip from 5.8% to 5.7%. but, of course wilfred, the big question is, even if that jobs report comes in better than expected, will the focus be on inflation, which is still well below the central bank target of 2%? >> very interesting question. and i think we heard from those fed minutes, as well earlier this week that the fed is for the first time really starting to say that they're willing to
look through issues around the rest of the world and that domestically there is strong enough growth to be able to start looking at future expectations of inflation, not just the numbers that we're looking at at the moment. but let's have a quick look in on european markets, as well where we're in the red today, not too significantly in the red. but this follows two good trading days. yesterday we were up 2% in europe after a letter from mario draghi to lawmaker necessary europe saying he did stand ready to use outright quantitative easing if necessary. a little bit of weakness today as we recover off the back of this. as you can see down about 0.25% off the board for the major indices. italy, the laggard, down 0.7%. let's look at bonds. the last two or three trading days have been equity buying notwithstanding the moves today in europe. and that did see a little bit of bond selling. so yields having hit record low levels just back above 2% in the u.s., having gone down to 1.99%. and in germany, we've just above
1.5%, having been around 0.45% earlier. now, of course that slight move we've seen over the last 24 hours, take it with a pinch of salt. these yields across the board do a few things. one of them expectations of bond buying in europe coming up soon and a little bit of a risk off sentiment still out there about the global economy. and that's why we continue to see bond buying in the u.s. and the uk even though we don't have prospects for outright quantitative easing. let's look at forex very quickly. and the euro in particular of note has bounced back 0.2% today. 1.1814. but over the last day or two, it's been hovering around nine-year lows. the prospect for euro strength when we are expecting more easing it's hard to garner. again the yen, down 0. % for the u.s. doll today. 119 the.3. let's have a quick look at
commodities where the oil price is a little weaker today. wti is flat 48.7. brent is down 0.47%. 50.6 of. gold is hovering around that 1200 level, basically flat today at $1210. we're going to keep you up to date with the situation unfolding out of paris. of course, there is a reportedly a hostage situation in dommartin-en-goelle, a town that is 30 miles northeast of paris. just getting headlines that schools secured in dammartin-en-gele. so far, residents in that town have been told to stay indoors. schools in that area have been secured. >> and let's continue to update you on this up folding situation. there have been reports earlier
that with the host aemg situation, one person had been killed, but interior ministry has denied that report in the last half an hour. the two suspects hijacked a car. we've heard about that already and they drove into the town's industrial zone and they have got at least one hostage with them. local media reporting that three or four helicopters, a couple of them as you can see there, police are on and they're still arriving according to local reports. all entrances to the town have been closed edd edd off by police. the flights, some flights from charles de gulle have been diverted and they are departing as normal but some have been diverted on approach. >> even though some flights are being die verlted, we're being told air traffic is being kept as normal. air flans saying flights may circle the paris charles de
gulle airport on the police helicopter and flights are normal so far at the cgd airport. let's keep a watchful eye on what's happening in paris and france. the focus today will be on that december jobs report. let's bring in patrick o'keefe. joins us from new york to give us a better idea what to expect at 8:30 a.m. eastern time. of course, the focus will be on that headline number patrick. but a lot of focus on average hourly earnings. how did william impress investors? >> well, earnings last month were up a little bit better than what we had been experiencing. i think, again, when we get the december data, we'll see some further improvement in the earnings numbers. but from a broader, longer term perspective, the improvement has been very very marginal. are a just had for inflation. essentially workers are where they were immediately before the
recession. so that one indicator remains one of the few blemishes that we've seen on the data going forward this year. >> and of course the big question is -- and i don't know if it's one you can answer but how will the fed react? will they change their policy or their decision on whether to raise interest rates this year if that number does come in better than expected and if unemployment dips below 5.7%? >> well, with respect to the earnings number i think we would need to see a sustained period of much higher growth much higher than the 0.2% to 0.3% per month that we've been seeing before the fed would begin to think that there's a potential inflationary thrust. the longer term i think, picture for the fed is that they have done all that they can to get the economy to this point. the unemployment rate has been a troubled indicator for a long time. because of the drop off in labor force participation. so it's not giving us the kind
of signal that in the past we would have had reporting labor market tightness. >> let's talk about that decline in labor force participation because does that really show an underlying weakness in the jobs market which perhaps these great numbers in the nonfarm payrolls that we've had over the course of 2014 hides that fact? >> i think that is a very key point in this. when we look at the jobs data we look at demand side 2014 is a very good year. back to the labor force side, the supply side over the course of the year the labor force participation rate that is to say the proportion of all people over 16 years of age who have a job or are looking for a job has remained basically flat at a 36-year low. that's an indication of idle human resources. if we look at the number or the proportion of the workforce that has jobs that continues to -- it's up off the bottom but it continues to be at a
historically low level. and from a longer term perspective, the foregone income, the loss of job skills the lack of experience all of those things will take a toll on the economy beyond the coming year, well beyond the coming year. >> patrick, just for a second i want to reference these live shots that we're seeing in paris. that was president hollande arriving t interior minister in central paris. he's now notice the ministry where he will be meeting for security meetings relating to the unfolding situation. these are now the live shots where we said earlier there is a hostage situation unfolding. let's get back again to patrick o'keefe and talk more about the jobs number. let's dive into the numbers that we've seen in 2014 and what we're expecting in 2015. in particular unlike jobs report that we've seen since 2008 there is some growth in
the public sector as well. >> timely. the public sector has, over the last 12 months, gone from shedding jobs to adding jobs and that has helped the economy achieve the best employment growth, at least through november of any year since 1999. the public sector does remain fiscally constrained. we have run up significant debt in getting ourselves out of that deep recession. but overall, what we're seeing particularly at the local level is incremental improvement and as that occurs they are able to rehire or refill positions vacated during the down turn. >> the housing data out of the u.s. has been mixed as of late. and that is a component of job growth in the u.s. given that we've seen mixed weaker than expected data some of that could affect seasonal
issues. do you think that could impact this december jobs report? >> we got a little bit more in the adp data that came out earlier this week looking at private payrolls. we got more of a bump in construction than i anticipated and i think most anticipated. surprisingly the data is seasonally adjusted so we're not concerned about bad weather. but to your longer point, the construction industry generally and in the housing sector in particular have been absent without leave throughout this recovery and that's one of the real soft sponts. interest rates have remained low and the nand for housing would be ourselves morrow bust than what we're seeing in actual sales, that fare of housing to many coback is a drag that is going to have to be corrected if the economy is go gain further momentum from here. >> patrick, we're going to leave it there. thank you for getting up early with us.
and head to cnbc.com to find out why some experts think today's job northbound could be a big disappoint to markets. that is online at cnbc.com. let's get you a rundown of what to watch this trading day. we get november wholesale trade numbers at 10:00 a.m. eastern. jeff lacker will be speaking about the economy this afternoon. charles evans will be on u.s. "squawk box" at 8:40 a.m. eastern right after the release of the jobs report. it is an exclusive interview from their new studio in manhattan. over the past couple of days there has been some dovish commendary that he's been putting out there saying the fed perhaps will not raise rates sooner than expected. >> absolutely. and more discussion ahead of the jobs number. still to come on "worldwide
the french president hollande is giving a press conference. it is, of course, in france. he says suspects of charlie hedbo shootings still have not been stopped. he is referencing there by saying they still haven't been stopped because there is a live situation unfolding in the town of dammartin-en-goele in the northeast of paris where the two main suspects have been surrounded by police. at least one hostage has been taken. >>@other media reports indicate the two suspects hijacked a car. looking for more details around that report. going forward, the prosecutor's office denies that one person has been killed.
the interior ministry has been kwiek vocal this morning saying they're almost certain the two charlie hedbo suspects are the two people they're dealing with. >> let's recap what president hollande has said so far in his press conference. the charlie hedbo is the worst seen for 50 years in france. the suspects of the charlie hedbo shooting still haven't been stopped. this is one of the first times we've heard that by the french government. we all know these types of attacks may happen more regularly moving forward. terror threats elevated in europe. president hollande has said
everything is being done to ensure safety. >> and we should note the president of france has been playing an active role ever since hearing of the attacks at the charlie hedbo headquarters on tuesday. he was on the scene within 20 minutes addressing the media and trying to get to the bottom of the story. he's been addressing the press, as well, saying that they must do everything to ensure safety of their citizens and that the charlie hedbo attack is the worst in 50 years for france as a cup. >> we will bring you more confirmation of what's happening on the ground. the prosecutors have denied reports that one person has been killed there. we're getting reports on the wires that the schools in the area have been security. that's coming from the mayor's office. the president hollande just says
he is speaking to france's state and regional representatives. it's a widely coordinated effort at the moment. these two main suspects they believe are surrounded where a hostage situation is unfolding as we speak. >> we've been keeping a close eye on the airports in paris. reports suggested some nights have been diverted and flights departing from the airport at this point have not been affected. let's recap all the things we heard from president hollande in the last few minutes. he is speaking at the interior ministry. he said the charlie hedbo attack in france was the worst in the last 50 years in france. the suspects still vice president been stopped. he did say france security admitted they knew there were
terror attempts happening and we must do everything to ensure safety. he's trying to ensure security demonstrations above national union city taking place since the shooting in the coming days and weeks. >> as a manhunt continues, france has been mourning after that attack at the french magazine. yesterday we saw paris observe a minute of silence. the eiffel tower observed a deming of the lights. that is the president of france francois hollande addressing the press and helping us get up to speed on where the government stands in terms of this manhunt,
which does continue for those individuals involves in the attack at the satirical magazine. >> this is reallying to the 12 people killed in the shooting at charlie hedbo 48 hours ago. there was a separate shooting yesterday and there's been no links confirmed between the two. we believe the two main suspects from the charlie hedbo shooting 48 hours ago have been surrounded. they have got a hostage, as well. this happening with president hollande to his right. so far president hollande said it is the worst terror attack in france for the last 50 years. he said france must do everything to ensure the safety of our citizens including demonstration of national unity which we've seen over the last day or two and will continue.
he is reiterateing the security issues. >> there is a host aemg situation in dammartin-in. goele. we've been told residents in that town have been told to stay indoors. three or four helicopters are in that area surrounding that area. plenty of police are on the ground armed and are still arriving. they have closed off entrances to the town. there are some media reporting that the two suspects have hijacked a car. they drove into the town's industrial zone and at this point we understand there is one hostage. >> indeed. as president hollande continues his address of the interior ministry, we're going to get out to paris for a live update from hadley gamble. >> hey, wilfred. basically, i want to reiterate this is a rapidly changing situation. but what we know is there is a very large police operation happening about 30 miles outside of paris.
we know there are at least a thousand policemen on the scene. the french government has confirmed they do believe the two men they have been tracking in the third day of this massive manhunt are on the scene at the moment. we also have to remember of course, that these two men, what we know about them early 30s, their parents were of allgiergerian dissent, they have taed ties to al qaeda in the arabian peninsula. they're highly trained, very lethal individuals 17d in the killings of 12 people blocks from where i'm standing. security services have been seen in the area. this is the third day of this massive manhunt. 88,000 personnel sweeping france, looking for these suspects. we also understand, of course, that the president, he's making
a decision in the next few minutes, momentarily, trying to decide what to do about this situation. >> hadley thank you very much for that update so far. as we said of course president hollande continues to address the interior ministry with the prime minister to his right where he's called the terror attack in france the worst in 50 years in france and must do everything to ensure the safety of our citizens is what he has said in these last 20 minutes or so. we will of course be bringing you all the latest on the situation unfolding in france and indeed for more market analysis after this short break here on "worldwide exchange."
markets. scaling back retail is macy's. changes are under way following consumers trends in shopping. sdwla you're watching "worldwide exchange," bringing you business news from around the globe. the french president francois hollande says the suspects in the deadly charlie hedbo attack are still at large. he added france must ensure security of demonstrations of national unity and do everything to ensure the public's safety. he said the attack at charlie hedbo was the worst attack in over 50 years. dramatic developments also in northeast france reports the hostage situation and shots fired in an area where police
are on a manhunt for the two suspects wanted in connection with wednesday's shooting at charlie hedbo. traffic at nearby charles de gaulle has been diverted. hadley gamtble is live in paris. >> a massive operation is under way about 30 miles north -- or 30 minutes north of paris in the northeast of france. we know it's about five minutes from charles de gaulle airport. about a thousand police officers are on the scene. there are reports that at least one person may have been killed in this lovage situation. several others rounded. reuters report they have not yet confirmed anything of that nature and the french government is refusing to confirm any casualties, as well. what the french government has said is they do believe this incident, this operation is one in which these two suspects accused or suspected in killing 12 people just a few blocks away from here that they are these
two brothers that they have been searching for. this is the third day of a massive manhunt, the largest manhunt in french history. 88,000 personnel combing the area looking for these guys. french citizens of algerian decent. we understand they do have ties to al qaeda. one of them may have trained with al qaeda in the arabian peninsula a few months several years ago. we understand from the americans that they have been on the u.s. no-fly list for quite some time. french authorities confirming late yesterday that these brothers were known to them they just possibly weren't following them in the days preceding these attacks. >> hadley thank you very much for that update. of course, we were getting out to hadley throughout the show over the next half appear hour. moving back to markets, out of the european central bank where the sources told cnbc 500
billion investment grade qi plan is one of the options the ecb has discussed. confirming the rumors that we have had over recent days and weeks that is being closely considered by mario draghi. >>. >> at this point, it seems full blown quantitative easing has been priced boo these markets. let's get you a quick check on the u.s. futures, the nasdaq and the and s&p. from the ecb and the federal reserve pushing markets higher. right now, of course the focus today is on the december employment report. expected to show broad based job growth economists consensus is 240,000 nonfarm payrolls. unemployment is expected to fall to 5.7% from 5.8%.
of course, that is what the fed will be watching. the big question how will the fed change or alter its policy if at all based on today's jobs number? >> it's not just the eurozone facing inflation pressures. there's concerns in china, too, with prices falling to a near five-year low in december. increasing expectations that the country's central bank will ease policy further. joining us now from boston is jeff dennis, head of gem strategy at the ubs. jeff, thanks very much for joining us this morning. let's kick off the discussion with china i noticed on your list it's one of the recommendations for 2015. that follows over a 50% return for the a-share markets. most of that is coming from the back end. surely the market is due for a correction. >> i think you have to split the different parts of the chinese market up to be honest. what we do is we're looking at markets in terms of the
internationally available stocks that international investors can indeed buy. and that particular part of the chinese market didn't do quite as well. we do think there's more upside for the chinese market. in turn, the h-share market doing very, very well. it's partly because of the aemgz that some of those stocks will indeed eventually become available to international investors. with some momentum going in terms of the market and also we like china very much because we think it's one of the good reform stories in the emerging markets right now. >> but, geoff, yes, i get that they're finally tackling reforms, moving towards more free market and hopefully moving towards a more consumption-led economy. that's going to take many many years. have they got enough reserves that they can prop up the market with liquidity once those reforms take effect? >> without any question. you're absolutely right. it is going to take a very long time for this to rebalance the
economy to occur, although it is under way. there's no question at all about that. consumer spending in china we think is going to be one of the good long-term stories in the emerging markets over the next several years, i think you hit the nail on the head at the beginning. with inflation being as low as it is, the chinese central bank has ample room to ease monetary policy. we're looking for more rate cuts in china, possibly some reserve cuts. meanwhile, b the economy is not a catastrophe by any means. we think growth this year will be 6.8%. so we think there's probably too much concern about the speed of the slowdown if you like in china and we think there are plenty of policy lessons to support growth and to facilitate long-term this rebalancing of the economy. >> geoff, this is seema. we've been keeping a watchful eye on the events unfolding out of paris. as an investor how closely are
you watching those eventes and how closely are your clients showing concern towards what is happening there? >> i think they're watching it closely because it's such a dramatic and tragic story. but i honestly don't think in terms of the various geopolitical issues that have been buffetting markets in the last 12 months it should be seen as something that's going to have a long-term sustained impact. i mean, we've had a number of things which have impacted markets. notably, of course the ukrainian crisis and the russian effective annexation of crimea. we had all the concerns over oil prices and oil prices have come crashing down. elections all around the world, i think this is a tragic situation. i don't want to ignore that at all. but i don't think it's going to make much difference to investment strategy over the start of 2015. >> we have the greek election
the end of january. we have the uk election an election in spain. which one are you watching the most closely? >> well given, given my role in emerging markets we're watching the greek election very, very closely. i think we have to watch greece very koesclosely. the ultimate worst case scenario is that greece leaves the euro and unilaterally defaults on its debt. we think that's probably very unlikely. therefore, given our weak the market has been recently towards the end of the laugh year, although it's going to be a roller coaster ride and the less we -- to win the election will try to form a coalition. we suspect the worst case scenario is not going to happen and, therefore ultimately, this
is going to provide a buying opportunity, an economy in our view that's doing better now and where the valuation story in greek equities has come in a fair way. we're asking people to fasten their seat belts, if you like in the short-term. we think the greek market probably does relatively well. >> geoff, let's talk about oil prices because you referenced it a moments ago. in the middle of december, as it sell off in russia it sparked a bit of a sell-off in other em currencies like malaysia and indonesia, as well. but now it's settled at a lower level, you think it's a positive factor driving emerging markets for the year ahead? >> we think it's a positive factor. i think b what really hurts emerging market over with the falling oil prices late last year was the sheer volatility and the sheer disruption to markets and the course of that is going to pull back and be cautious. as you rightly say, i think we got over that phase now.
our view is that the great sways of the emerging markets, nearly all of asia even parts of latin america and ewe merging europe middle east africa which are ben beneficiaries of lower oil prices. korea, taiwan india, south africa, those are thoughts of good examples of countries that are big beneficiaries, this harboring of the oil price. one of our big themes of 2015 is going to be the impact of lower oil prices on corporate earnings, particularly in asia with companies are big intensive users of oil. so as long as you get some sort of stability at these lower levels, we think it's going to be a net positive for emerging markets in 2015. it's one of the reasons why we have a reasonably constructive view on the asset class going into the new year. >> geoff dennis thanks so much for joining us this morning. we want to get you the latest on the situation unfolding out of paris, specifically the town northeast of paris, dammartin-en-goele.
there is reportedly a host aemg situation that is under way right now. we've been told residents at dammartin-en-goele have been told to stay indoors. currently three to four helicopters are in the air surrounding that town. police closing off the entrances to the town. there are reports that the two suspects have hijacked a car. they drove into the town's industrial zone and that there is one hostage at this point. there's speculation about whether these two individuals were linked to the shootings that took place at the charles hedbo headquarters tuesday two days ago. >> indeed. that situation was particularly referenced by president hollande. he said the standup between
suspects and police are ongoing. he said the terror attack on carly hedbo was the worst for the last 50 years in france and that france must do everything to ensure the safety of their citizens. we will, of course bring you more on this unfolding situation throughout the rest of the show and will be back in a couple of minutes here on "worldwide exchange." does
. and a mega rally pushing the dow into positive territory this year after what was a rough start to 2015 after a huge sell-off in the energy sector. energy stocks are bouncing back powering the market rally in the last two sessions. but it's the v-shaped recovery in the dow over the last couple of days that is catching the attention of traders. we saw volatility earlier this week as we saw the stocks move lower. interestingly enough wilfred, resilient markets of outperformance that led the dow higher. the nasdaq seeing a better than 2% gain. >> and it will be interesting. we saw treasury yields dip below 1.9%. the last time that happened was the first day of october and that sparked a big rally after that. the question will be will we see a bigger rally from equitier at the moment. the interesting thing is the ten-year has settled around 2%.
it's come up 1.9%. the euro came back much more quickly. the size of the rally we've see in equities. in october, we saw markets take the staircase up, elevator down. interesting. >> they're being lazy fought taking the stairs. >> now, macy's is making some major changes as it spopdz to the ever changing shopping habits of consumers. >> wilfred, good morning to you. macy's plans to change how it sells clothes and other merchandise as part of the restructuring program.
those will be offset by the opening of other locations. the moves which will affect 2,000 workers is expected to save about $140 million a year. macy's says same-store sales rose nearly 3% during the holiday season in line with forecasts. shares fell 3% in after hours today and down nearly 4% for the year. gap sales, for the entire holiday season they were up 3%. strong results at old navy were off by a 5% de-china and its flat brand and flat sales at banana republic. bed, bath & beyond net sales missed analyst forecasts and same-store sales came shy of the company's projections.
the container store is cutting its outlook again. it has been challenged by weaker customer traffic despite customer discounts and a new customer loyalty program. they are all trading lower today. "the wall street journal" is reporting higher restructuring lawyers. on wednesday, wet seal laid off about 400 full and part-time workers. >> landon, thank you very much for that update. have a lovely weekend. before we go to the break, let's remind you of the headlines. reports of a hostage situation and shots fired in northeast of france where police have 102 suspects wanted in connection with the shooting pp of charlie hedbo. ahead of the all important jobs number macy's plans to shut some stores and cuts jobs as it changes the way it tries
in the last half an hour. french president hollande says suspects in the charlie hedbo attack are still at large. speaking at a press conference, he added everything must be done to ensure the safety of citizens. meanwhile, dramatic developments in france reports of hostage situation and shots fired. hadley gamble is live in paris with the latest. hadley. >> wilfred, what we know is that a massive operation is under way about 30 miles northeast of paris. a few minutes from charles de gaulle airport. at least a thousand security
personnel are couplembing the scene. we understand from local media reports that they have holed up these two suspects that the french government believes are the two suspects in the killings on wednesday. they've holed up in an industrial complex, possibly in a printing building. we understand from local media, as well that there are reports of on hostage situation, as well. reuters has reported at least one person may be dead and several others wounded in this situation. the president saying he is going to bring these suspects and these killings to justice. a bigger question remaining on what the french government is prepared to do next. we understand from president hollande's comments that french officials knew further attacks were possible and these two suspects in the killings on wednesday, we now know that they were affiliated with terrorist groups. but one of them did learn terror tactics in yemen at the hands of al qaeda in the arabian peninsula. we'll have to watch and see how this situation is going to
unfold. >> hadley thank you very much for that update. now we're going to switch focus to markets. the stoxx 600 is down 0.15% as we look at things right now. in fact, as you can see, there's a little bit more weakness down about 0.5 percent. the ftse 100 down 0.6%. similar amount for germany and for france. italy is the laggard, down 1.35%. we did have slightly weaker than expected german and french industrial production earlier today. that had some day to go with it. we did have two strong days of markets in europe particularly yesterday where markets up % following news that mario draghi was prepared to do a full blown quantitative easing if necessary. >> central banking sources tell cnbc that 500 billion euros investment agreed qe plan is one of the options that the ecb is discussing. the centering banking source tells cnbc no decision has been taken. now, all eyes on january 22nd
that governing council meeting. and just to touch on that story briefly, that's just one of the options being discussed is what our sources tell us. they did say that possibility is no -- just involving investment grade bonds. that form would exclude countries like cyprus greece and portugal from the backlash. >> let's take a look at u.s. futures, right now indicating a lower move after that stunning reversal for stocks in the last two sessions. the dow jones indicating a 50-point decline in premarket trade. the s&p 500 down just about 3 points in premarket. the nasdaq which did see a big gain thanks to an outperformance in shares of apple up better than 4%. right now, nasdaq futures indicating a lower open by around 5 points. remember, the jobs report that is the focus today. the december u.s. jobs report due at 8:30 a.m. eastern. consensus forecast is for nonfarm payrolls to rise by 2
240,000 versus 321,000 in november. that would be the last straight month of job gains above 200,000, the longest stretch since 1994. as we leave you, we will leave you with live shots from the town north of paris, dammartin-en-goele. that is all we have time for today on "worldwide exchange." have a lovely weekend. i'm wilfred frost. >> i'm seema mody. "squawk box" is next. hey what are you doing? i was thinking about taking this speed test from comcast business. oh yeah? if they can't give us faster internet or save us money, they'll give us 150 bucks. sounds like a win win. guys! faster internet? i have never been on the internet and i am doing pretty well. does he even work here? don't listen to the naysayer. take the comcast business speed test. get faster speeds or more savings, or we'll give you $150. comcast business.
for the paris magazine massacre. but on wall street it's all about jobs today. the december employment report now just 150 minutes away possibly. at this hour investors are being cautious ahead of the key market data. but we're right back under 18,000. today, u.s. stock futures are trading lower. it's friday january 9th 2015. "squawk box" begins right now. good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. a flood of reports coming out of paris as police move in on the paris massacre suspects. cnbc's hadley gamble joins us this morning from paris. hadley, what can you tell us at this point?
>> this is a rapidly changing situation. we have conflicting reports coming in and out. but what i can tell you is that a massive separation is under way in a small down about 30 miles northeast of paris. it's a few minutes from charles de galle airport. we understand from reuters at least one person may be dead and several others wounded in this hostage situation. we also understand that there are at least -- that french authorities now believe the men suspected in the killings on wednesday are on the ground at the scene and we understand understand, of course, about these guys. we now know much more information about them. we know that they were on the u.s. no fly list already. we understand french intelligence was aware of them. the big question is for french authorities how much they were tracking them. we heard earlier from president