Replaced. Santander announces the death of its chairman, sending shares in the spanish lender lower in early trade. Good morning, everyone. Youre watching Worldwide Exchange and its ail about apple. The day after the postmortem. Shares are down by 6 . You have to wonder why that is. Is it because the it was the usual buy the rumor sell the fact story or is this the tietdenning story sending ripples across the Global Markets . 6 , a huge amount in frankfurt, particularly given shares in apple were up for most of the day. And it was only after the markets as a whole sold off that they finished the day down. When the u. S. Markets open a bit later and before that, of course, well continue to explore all the benefits and new products. Theres a picture there of the iwatch which, when that was announced, saw shares sell off. Part of the reason people suggested that was it wont in fact be available until the new year so it wont make the most of the Christmas Spending spree. No, youre right. But apart from that, the analyst opinions were really, really positive. They say it was the potential for big volume and big margins, talking about at this phone. Also, theyre saying apple is reshaping the payment industry. These are strong and bullish words coming from some of the analysts. Barclays pointing out like you did, the iwatch is going to miss a very important shopping spree. And the iwatch im not sure why they called it apple watch. It can only synch with iphone 5s and later. And the other thing of course, with apple pay, is you were saying are people really ready to start using Technology Devices as their wallet, as their payment system. Youre absolutely right. If you can steal a credit card, steal a pin, you should be able to steal an iphone, right . Why would you trust that one more than your credit card . Absolutely. And i think the other area of interest yesterday was the pricing of the new iphone. As weve said so far the iphone 6 entry level price is 199. Thats with a twoyear contract or it is 100 more if you go to the iphone 6 plus. So that price level will be where people expected and, of course, the pricing of apples biggest product is still important to their margin. Now, it was a volatile session for apple stock in a broadly lower market yesterday. It jumped as much as 4. 8 after tim cook unveiled apple pay but eventually dropped 4 lower. We got the iphone 6 plus an apple payment service. Josh lipton has all the details from that launch. Fans lined up for apples mystery days ago. See what apples ceo tim cook would reveal. Today, we have some Amazing Products to share with you. And we think at the end of the day that you will agree that this, too, is a very key day for apple. And they got it all, a new and improved iphone. This new version is thinner, has a longer battery life and will be supported by more carriers. It will be available on september 19th, 199 for the iphone 6 and 299 for the larger iphone 6 plus. Cook introduced a new mobile payment system, as well, called apple pay which turns your iphone into a onetouch payment system. Finally, the much anticipated apple watch. The companys first wearable features dozens of apps to manage time, health and weather on a thin screen with personalized band. Eats slated to be available early next year for 349. Its much about personal technology as it is style and taste. The nearly twohour presentation was capped off with an appearance by u2 while the band offers their new release free to customers by mid october. The crowds were disappointed. I thought it was neat where team is ushering in a new era and giving them a chance to present. I thought that was cool. Analysts do have new concerns because apples new watch requires a user to have an i pone. We saw the fall off just as people were talking about the iwatch and people were getting excited and guess what . You need the iphone to use the i watch. That limits the Market Opportunity, at least over the near term, we think. Todays event was critical for investors and it was tim cooks first big launch since becoming coo in 2007. For cnbc, im josh lipton. Joining us now is George Oconnor and george hedrick. George, throughout the day yesterday, it seemed analysts liked the release of iphone 6, it liked the release of the apple pay but were more disappointed with the iwatch. Right. Apple is very much as a follower in a pretty established market. For me, the big positive surprise was apple pay. Mobile payment as a huge market are the Addressable Market for apple. Apple pay, though, is not exactly ground breaking. Its still baits based on peoples existing itunes account. Its nothing ground breaking. Right. The mobile payments were established. We have a key piece of data underpinning ifc, and that has been awaiting this endorsement. We have been promising investors we will see it for the last three launches. The key thing is really the use case. Its not the size of the phone any more. It is what people do with the phone that is key. Theyre creating a mobile payments platform i think is an excellent idea. George, since tim cook has come in, the company has lost the ability to innovate. Did they prove us wrong yesterday . So, again, i didnt like the whole u2 thing. That was poor. The products are follower products. Theyre not leader products. What weve all fallen in love with is go pro. Take an established marketplace, throw something clunky at it and you get the most exciting use on it back of it. Quite frankly, yesterday, we didnt see that compelling case come out of those products. Paul, what do you think . Do you agree or disagree . I agree with george. I was looking down at the headlines and seeing this is the first new Product Launch in four years from apple and its actually following another its following on from what samsung has done. So i mean, maybe they hope by linking it with the iphone 5 that actually it will drive further sales of iphone 5 and theyll want this watch and everything like that. Maybe theyre hoping by linking iphone 5 those people will move away from samsung. There has been a pick up in the use of samsung phones. It wasnt on the products side, but it was on the positioning side. That goes back to the appointment of angela erhart. The watch is a fashion piece. Theres been far too many products which basically favor the feature set over the form. If this is apples with wearables, what do people want to wear . My watch is a redundant piece left over from a bygone age george, you said apple is a follower. Shouldnt samsung and the other companies who are working on wearables be benefiting from that . Essentially what apple is doing, theyre establishing credibility for wearables and everyone should benefit. Absolutely. And this goes back to the nfc point. You are endorsing a market. Its highly competitive. Yesterday amazon dropped the price of its phone down to 99 cents. What apple said is relevant for the industry, absolutely. George oconnor, thank you so many. Paul sedgwick stays with us. We also want to hear from you. Are you ready to start using tech to pay for products or still concerned about Cyber Security . Join the conversation history on Worldwide Exchange. Worldwide cnbc. Com or cnbcwex. A host of those who jumped on apples bandwagon using twitter to coincide with the launch some more successfully than others. We sass employ thw more than 2. Tweets about apple yesterday. Pretty impressive. Lets have a look at european markets so far in the trade today, about an hour into the day. A lot of red wind me, as you can see. The stoxx 600 is down almost 0. 5 . Thats the uncertainty we had coming out of yesterday that the u. S. Might be raising rates sooner than expected. Only last thursday could we have significant easing within europe which mernt the markets shot higher. Now with the threat of tightening the markets are losing steam. Does that mean qe or loose policy cant work . Well find out. Markets today lacking enthusiasm off the back of that possibility of rising rates in the u. S. The ftse 100 off 40 basis points, france off 0. 3 , italy off 8 . If we dive into some individual stocks, kingfisher is off 2. 7 . The ceo said hell step down at the end of january. The long standing chief stepped down. Apple plier arm is off 2. 5 . Fiat is up 1. 9 after the italian automaker said ferrari chairman would resign. He will be repleased by sergio marconi. We will be joined with the latest news on that from milan in just about two minutes. Santander is off almost 2 after its ceo passed away at the age of 79 due to a heart attack. Moving on to fixed interests, if we look at the bond markets, quite interesting move yesterday, particularly in the u. S. The tenyear treasury will tick above 2. 5 on thoughts the fed might be raising rates higher. This is now a sixweek high for the tenyear yield. Weve got a threeyear high in the u. S. To both two and threeyear yields. So all eyes now on the fed meeting next wednesday. Its very much a sign of the time thats we move from one Central Bank Meeting last week to another next week and everyone is focused on that. That is the main aspect driving markets. Gilt across the board have moved off the back of that move in the u. S. Were at 2. 5 , italy 2. 426 . German bonds, 1. 022 . Forex rates, that move pushed the dollar higher across the board. Against the euro, its about flat today. The same goes for the pound, why its flat. The u. S. Dollar weakening 0. 8 , following a 1 fall on monday. So the carry trade that weve seen of a relatively strong currency, the aussie dollar with high Interest Rates in the u. S. Unwinding at the moment. Lets get a check in on markets in asia. Sri jag rej raj ya is in singapore for us. Sri. Good to see you. The hang seng and h shares, the loss leaders today. Let me talk about apple and the apple component suppliers here in asia. The ones listed on the nikkei as a guide, they were lower today largely because the Investment Community here was pretty much underwhelmed by the debut of the iphone 6. Now, elsewhere, i wanted to talk about the sip asx 200. We saw the biggest oneday loss in a month. The miners were under pressure today. Thats because iadron ore and steel futures were at a low. Now, very quickly, i do want to talk about the nikkei 225. The only market that is in positive territory and that is because of the weakness in the japanese yen. The exporters, the only bright spot in an otherwise grim session out here in asia. Thank you very much, sri. Coming up, its game on for microsoft. We look at why the tech giant could be about to pay 200 billion for the swedish firm behind minecraft. Prince harry explains to us his vision for the International Sporting event. Were live at the Economic Forum in china where well be asking the cfo of shell about plans to diversify from oil. And as sterling continues to struggle ahead of the scottish independent vote, we see Desperate Measures from the no camp will be enough to keep the uk together. Cnbc has learn the fed to could make an important change to its policy next week. The change being debated is whether to drop the term considerable period after asset buying and something indicating a hike in the next few months. Considerable time has generally been interpreted to mean at least six months. Log on to cnbc. Com to read the full story ahead of next weeks key fomc meeting. Paul, even if we see a rate hike lower than expected, y is the market so worried . The market is always going to get jittery at the first signs of any move in Interest Rates. Theyve filled a lot of equity valuations have been supported by these extraordinary low Interest Rates. You remember in 1994 when you got that sharp move in the Interest Rates. And i think with the all the talk about how this extended run that weve had without a 10 correction and how people some people consider the markets very overbought particularly in the u. S. And this sort of thing that any signs that a change in Interest Rate policy is bound to cause a few jitters. I mean, our personal view is that we may well be at the low point or the high point, whichever way you care to look at it in the liquidity cycle thats that weve had for the last five years. Youre probably going to get Interest Rates tightening in the u. S. At some stage in probably the next six months. Th uk some stage, probably the next six months. Personally, we dont believe that qe will everybody assumes qe will happen in europe. Our personal view is that it probably wont for two main reasons. One, mario draghi made the point on more than one occasion how difficult it is to do qe in europe compared to the u. S. It seems to be opposition from that policy in germany. So the recent strength from the dollar against the yen had probably come from the president of whether he introduce he qe. It was obviously going to create nerves while people adjust to a loose Monetary Policy to a slightly tighter one. Paul, it seems to me theres a big disconnect from the bond coming from the equity markets to the bond market. Surely as that is withdrawn, one of those two Asset Classes faces a major correction. I dont know if it faces a major correction, but it does face a correction. If you look at the fundamentals i was thinking about this yesterday before i came on. If you theres a lot of talk about people looking at the charts and looking at we havent had this so correction. But if you look at the fundamentals for the two Asset Classes and you took somebody out of a tenyear sleep and said here are the fundamentals, dont look at any charts, dont look at any sentiment stuff, and you say youve got equities yielding, youve got ten year bunch yielding, youve got german equities yielding at over 3 , signs of improving economic Global Growth, youve probably got the Global Growth at Something Like 3. 5 this year. Youve got earnings revision ratios improving. Youve got liquidity is going to remain a constant. And youve got earnings pretty much in line with historic averages. If you look at the bond markets, yields relative to history are pretty low. My personal view is what you dont want to see is a sharp spike in profits. That should be what that should be to continue to support equities. Paul, booefl, what do you do in europe, do you buy or sell the ftse, do you buy the ftse because the pound has weakened or do you sell it because theres so much political certainty . My personal view or our personal view is that ultimately they will both know. I think that the the bookies seem pretty on the side know. I think fear will take over. I see this as an opportunity, not a threat. Paul, thank you so much for that. Paul sedgwick, head of investment at frank investments. The racing brand ferrari has ended in the resignation of the groups chairman. Dont build up stuff thats not real and dont make up crap that doesnt exist, right . Life goes on for everybody, for him, and everybody else. Any chairman that works in an environment like ours is that we are serving at the pleasure of the board. Nobody is indispensable and nobody should ever get it tloo through their heads that you can move or threaten or that the house is going to be in deep trouble if you dont. I have a lot of respect for everybody and i will protect everybody. Theres a limit to this, right . Good morning. We just heard what happened this weekend which made this whole event spectacular. It has sort of been in the works for several months. The comments we just heard implied that he was ready to stay on another three years. This is thee years were not going to happen for him and maybe he knew it. There was a question on the timing, really. They have done an incredible job there. This is a very important brand for the fiat group. He put himself as chairman in order to when they do list in the united states, the group, the newly formed group, the automobiles, he can make decisions. Its a very exclusive brand. No more than 7,000 ferraris are produced each year. Really been what is the note today as this resignation comes out is that ferrari, 7,000 autos sold, 3 of revenues from fiat come from ferrari, but 15 of ibit. Certainly a very strong brand. Well see whether they spin it off or keep it on with maserati. It will be in the news in the coming weeks, indeed. Claudia, thank you so much for that. Still to come on the show, could the eus fresh penalties against europe cross the largest penalty . We cross the world Economic Forum to speak with the cfo about the impact of sanctions on its business. Thats up first on cnbc. Its the barbarian queen. Wait, wait, wait, wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. Open port twentytwoohoneseven on the firewall for customer db access. Install version twopointthree of db connector and ensure verbose flag is set in case of problems. clapping sound isnt the cloud supposed to make business easier . Get the one that can connect to the systems that you already have. Today theres a new way to work. And its made with ibm. Apple shares fall after releasing a host of new products. Cnbc learns the fed could be about to make a key change to its policy statement next week, indicating the central bank will raise rates sooner than expected. Fiats ceo gets into the driving seat as shares move higher. Santander announces the death of its chairman sending shares in the spanish lender lower. All right. Lets have a quick look at how european markets are faring. We are moving lower an kro ts board, tracking shares we saw on asia and wall street on tightening shares. The xetra dax losing 0. 6 . Keep in mind santander is under pressure on the news that we just heard in the headlines. The chairman has died of a heart attack. Keep in mind that some of apple suppliers are losing ground, as we well. The threat of the new apple watch. On bonds, weve seen yields the tick higher across the board as u. S. Treasury y