Markets in taiwan, hong kong, and south korea are closed today for a midautumn festival which is really a Harvest Festival which is really related to the full moon which you may have seen on your way in. Walked in. Just driving. I saw it as i was driving. But its still summer until september 20 something. It is but its still harvest. I got it. Lets take a look at the European Equity markets. Youll see in the early trading there, many of these markets are a little weaker. The dax is down by 0. 4 and so is the cac in france. Ftse is flat but you can see in italy the decline is 1. 5 . Crude is down after traders cited the reduction of oil exports from libyas main ports and they talked about delivery to a new pipeline in nigeria. You can see wti haas had a difficult week. Its down to 43. 32. We have august prices out. Headlining, cpi expected to jump slightly by 1. 4 while the core rate is seen rising. Then coming up at 10 00 a. M. We get the first read on september consumer sentiment. Today is also quadruple witching day. This happens on the thursday friday of march, june, september, and december with the expiration of stock Index Futures and options, stock options, single stock futures in the last hour of trading but doesnt necessarily portend one way up or down. The top u. S. Justice department asking Deutsche Bank to pay a 14 billion settlement. For more on the story, lets bring in wilford frost. Yes, indeed. The u. S. Justice department asking the german lender to pay 14 billion to settle mortgage security probes stemming from the financial crisis. 14 billion crisis is much larger than expected by both the bank and investors. However, in a statement deutsche says it has, quote, no intent to settle these potential civil claims anywhere near cited. The firm expects that it will lead to an outcome that have settled at turlly lower amounts. This is an issue that all banks have been tied up in. For reference, Goldman Sachs was initially asked toy pay 15 billion but end up paying 5 billion. Deutsche bank has 5. 4 billion set aside. It was initially expected to pay 2 billion or 3 billion in fines. Its a reminder of the trouble Deutsche Bank is in, if they have to raise more capital while trading, it would, of course, be hugely dilutdilutive. It comes after the european clawback of tax against apple, of course, the u. S. Doing something similar to a european bank. Guys. Wilford, real quick. What is the current handicap on how much they say they will pay. They say theyll pay nothing like the 14 billion number, but if that isnt the number, whats the betting line . Well, i think, you know, all weve got is this 14 initial thats come out. So 2 to 3 would be in the rage of what had been expected. As long as its less than 50 . Which if the last few bangs go by, it would certainly seem it would be less than 50 and they probably wont have to raise more capital. Its because theyre already trading at such a discount to book. The market cap, 18 billion euros. The as set base, 1. 5 trillion. So theyve got a huge mismatch at the moment. So if they have to raise capital, its hugely, hugely dilutive. Wilford frost, thank you for that. We continue to talk more about banks because right now the fallout continuing at wells fargo. Theyre calling for changes after the banks fake account scandal. Meantime massachusetts senator Elizabeth Warner has harsh words for executives. She was on power lunch yesterday. Theres a serious problem with Senior Management at wells fargo. We erie talking about them cheating thousands of customers out of money and making millions doing it for the bank. And so the question is about Senior Management. Is it the case that they really didnt know what was going on because if they didnt, then this is a bank thats just too big to manage. Lets face i. At a community bank, that kind of thing isnt going to happen. At a credit union, thats not going happen. At a modestly sized bank, thats not going happen. Now, in the alternative, maybe they did know whats going on, in which case they need to be held responsible for whats going on. Theyre down after regulators announced what was 185 million fine against the bank last thursday. Some people called it immaterial. Elizabeth warren has a point. This is going to be something that comes out on tuesday when we hear this testimony. But you dont have five years of 1 of your work force getting fired over an issue like this and not have something do it. Put up a false choice between either break the bank up or the ceo goes to jail. I mean theres there might be something in between the two options that, yeah, i like when no one knew what the whale was doing obviously. How many employees are there. I know 100,000. So 5,000 is 5 of the work force. Their defense has been that every year some managers probably knew. Right. Thats the question. The claw backs from the woman who took home 125 million. And the various people who have to be between her and the person on the floor or on the phone. Right, right. Interesting one. Do you want to break it up . Im not suggesting you break it up necessarily. Okay. Shes theres some hyperbole involved. She was so good at flipping those. Am phones to sydney and london, can now get the iphone 7. Finally. Finally. Finally. No, finally am pulls some of its weight and pulls the averages. Its been a good week. Yeah. Finally doing something instead of dragging it down. Theyre made up of people who had already preordered the devices. I cant believe it. They basically said theyre sold out. Did you reorders . I did not preorder. Im really surprised. Some sold out. This a shot of apples flag ship store on fifth avenue in new york where the doors will open at 8 00 eastern time. Apple said it wont report first week sales. It says those numbers are irrelevant. It knows it will sell out. I guess they can only make so many every time. They can only make so many. They always put out press release saying we sold out. Maybe theyre always going to sell out given the pure number of people who have these phones rnld are going to upgrade nairk. Check it out. Shares up to 115. 49. President obama will talk with government leaders to talk about the security issues. Among those attending former new york mayor michael bloomberg, ibm ceo remehdi. Theyre punting it to the next president. Both donald trump and Hillary Clinton say they oppose the trade detail, at least as it stands right now. The polls get much tighter. John harwood joins us now with more. Good morning. The polls have got an lot tighter. That youre in a close race at the moment with Hillary Clinton but i want to go over two issues in the last 24 hours that illustrate the improvisational make it up as you go along nature of the donald Trump Campaign. One on a big emotional issue and one on a narrow issue related to his economic plan thats emotional only to some business organizations. First of all on the birther issue, this is at the core of the charge that donald trump has built his campaign on racism because it questioned the constitution of the length macy. In an interview donald trump was asked whether he accepts that president obama was born in the United States and what he said was this. I dont want to answer that question right now. Im going answer it at the right time. Donald trump has drawn close in the polls as joe mentioned because he has not been doing things like this lately. And so after this blew up on news media last night, Donald Trumps campaign put out a statement saying he no longer believes that president obama was not born in the United States. However, it was put out in the name of a spokesman, not donald trump. Donald trump himself refused repeatedly to say it. Now, heres the second issue. It has do with his economic plan. Hes been campaigning for a year on the idea that he is proposed a single rate for business, both corporations and past organizations that pay taxes under the individual rate system. That is very appealing to Small Business groups because many Small Businesses are not organized as corporations. Donald trump and his plan yesterday said he was cutting the business rate to 15 . Materials on his website said that was the corporate rate. But Donald Trumps own words said, no, its a business rate. The nfib put out a statement yesterday afternoon saying they declared victory in the case and said we praise donald trump for that single business rate. However, the tax foundation, which is scoring the plan, said that it had gotten signals from the Trump Campaign that it only applied to corporations. And late last night i talked to the analyst who theyve been referring questions to who said somebody is misunderstanding something. This is a 1 trillion discrepancy, because if you give that 15 rate to noncorporation businesses, that takes another nobody can be be certain wait snas a trillion dollar here, there, youre glossing over the most important thing that happened. That is on fallon i dont know whether you saw this. I love that. You have never do you have the video . Yeah. Were going to show that and show you something youve never done. Look at this first. Im not liking the sound of this. Go ahead. Can i mess your hair up . Did you say up . Go ahead. Yes donald trump, everybody i dont know if you ever get it. Ive had it. Its hurtful of people asking if you wear a toupee, mostly bald people who dont have hair. You have not taken the leaf blower challenge at this point. I wonder if donald trump would actually take the leaf blower challenge. Thats an industrialstrength leaf blower. Thats really the only real proof, i think. Are you willing to do that next time youre in here . Im willing to do any time. Its one of the most amusing things of being on television as you said. Bald guys sitting at home watching who find it weird that people have hair when oh, my god. When they get to middle age. They question whether you have hair. Yeah, any time. George stephanopoulos told me once he was in the mens room at an airport and somebody grabbed his hair to try to check. You know what . I get out of the airport quick. In and out. If somebody grabs my hair, i figure im a goner, im not going to live. Where does that come from . Where do they get that . I dont know. They need to be on a couch horizontally and talk it over with someone, many of them. Also hair color, it cant possibly be real. Misery loves company. Grays real. Yeah, i know. Seinfeld did a thing where there was a support group for george because all of these people were subjected to antibaldites. You know he now has hair. Costanza . Yeah. Cant stand ya did he go to the same place as elon musk . I dont know. Theres a guy whos got a recreting hairline. The rockets may not work well but his hairline looks good. John harwell, thank you. Do you keep the leaf blower equipped under your desk . I know where it is. I can get it here. Are you going to wart . Youve about got to wear the goggles because its so strong. Any time, man. All right, john. See you later. Thank you. When we come back, weve got a lot more. Samsung recalling galaxy smartphones. Weve got the details. All that straight ahead. Back in a moment. Friday. Its quadruple witching friday. Futures and options expiration means heavy trading volume, plus were day away from the big september meeting. Your Market Strategy session is straight ahead. Squawk box will be right back. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Everything is cool when youre watching a screen everything is awesome when youre sharing a meme a voice remote, show me angry kings you know whats awesome . Everything apps that please, more selfies endless hours of the best tvs brand new apps, shows to go awesome internet thats super woah everything is awesome xfinity the future of awesome. Stocks to watch today. Know ha novavax didnt meet expectations. It did not demonstrate efficacy in preventing the rsvrelated disea diseases. Plunging. Its down 80 . 80 . I think that might have been an important drug. Thats an understatement. Lets look at the market cap. It was 2 billion. Yeah. And oracle earnings and revenue missing wall street estimates. Total cloud revenue rose. That couldnt make up for softness in its Traditional Software business. And samsung formally recalling 1 million galaxy note 7s in the u. S. They received reports of batteries overheating, 26 burns and 65 cases of property damage. Its on the front page of the journal. They did a recall without the Consumer ProductSafety Commission being involved which means it wasnt as mandatory as when they get involved. Its the first time in the history that a company has recalled something without their cooperation. In the meantime lets take a look at the markets. Joining us now is jim more yu m. Hes a cnbc contributor. The majority of those gains did come from apple which is having its best week since 2011. So its best run in five years. Is there broader strength in this rally . Theres two things adding to the strength. Remember, one week ago today goldman was saying there was a 50 chance hike. Now yesterday apples strength was amazing to me. I know theyre selling a lot of phones too. Thats something a little bit unusual me. I think that was a smaller part of the rally than us taking on the fed. Whats interesting to me is we have about 15 , 17 chance of a hike in september but it seems like the market everyones like, the feds not going tighten. They cant break out of this little range were in now. If we went below that low for monday, even though we thought the fed wasnt going to tighten, then i would be significantly more worried about the stockmarket. Right now i think were kind of in the range waiting for the fed. You say waiting for the fed. Odds are, like you said, fed futures showing 15 like we assumed there will be a rate hike. If they surprise and hike, what you do think that does, famd they dont hike, does that also have movement because people arent willing to completely write it off yet . There are actually three scenarios. I think on the short term the bottom drops out and i think the feds competence will be called into question. They had a chance and four different speakers came out and they all talked fairly dovishly. If they hiked and stayed transparent, that would be a shortterm disaster for the market. If they dont hike and go with a hawkish tone for the december meesing because theyve done that, we swear to got, its coming up soon thats why people dont trust them. Why would we if the situation dictated a hike, they would hike now. If it believe me, soon were going have 3 , 4 gdp growth. Your point is the market does what if they dont hike but have very hawkish statements coming out. I think theyll stay in this range, maybe get below it and then its game on. German tenyear yields went negative again. The italian tenyear went negative. My opponent is this. When you take two steps back and look at the world, one of the best things to buy is the u. S. Stockmarket especially if they push bausch the hawkish rhetoric. We know they want a hike. The data doesnt dictate it yet. The ten year is yields 1. 10 . What do you think of that . I think there were some people who thought there was going to be a hike. The part that was amazing to me was that we talk about theres no correlation between the stocks inverse correlation between the stocks and the bonds. But if the stocks really started to cascade low eric i think people would jump into the tenure quickly and push that yield down. I think people thought this was a relatively contained move back and forth. I think at the end of the day when we realize theyre not going hike, yields will start to move lower again. We should point out the futures have taken a turn even lower. At this point dow futures down by close to 90 points. So were get back to a triple digit decline as we head into a friday. What do you think of that . I think thats something to notice. The fact that were plummets. 25, 27 takes away from it. Those lows were put in when we thought the fed was going to hike. If we go below those lows even after we think the feds not going to hike. Then we have a problem thats more serious. Im still okay with it. Right now i think its position squaring before the fed release. I think like i said before, everybodys kind of says to themselves they ear not going to hike, but in the back of their mind, theyre going, can they surprise us . Oils not helping. Sometimes its as simple as that. Oils not helping but youre talking about an amazing supply story. We tell ourselves that. I know. In the back of everyones mind its like, wait a minute. Yes, but the actual the price of oil if thats going lower helps more people than it hurts, certainly it hurts people in that business. But if it really is a supply story, i dont see why we have to track it going lower in the stockmarket because overall that would be a deeper story. Very quickly, what were the lows you were watching . 21 is my kind of line in the sand. If it goes below it and feels more comfortable, thats when i turn bearish and they theres something more center. Great to see you. When we come back, the i phone 7 going on sale around the world plus the latest buzz for apple suppliers next. Right now as we head to break, take a look at yesterdays s p winners and losers. It was wonderful. Bravo. It was great. It was pretty good. El, we it wasnt bad. There were parts that werent very good. It could have been a lot better. Didnt like it. It was pretty terrible. It was awful. Pretty awful. Boo. Boo. Okay, so you launched your banks app. Now what . How will you keep up with the new demands of todays Digital Economy . The fact is some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial ServicesCompanies Think digital, be untraditional, and reimagine