Transcripts For CNBC Worldwide Exchange 20161025 : vimarsana

CNBC Worldwide Exchange October 25, 2016

Good morning to you. Im a great choice from our director this morning. The first trip to miami. First nfl game, first trip to miami, outstanding. Lets get a check on the Global Market this is morning. Taking a lock at futures after a broad rally yesterday in the session led by technology. It looks like the gains are continuing early this morning. The dow futures up about 30 points. S p up 4. Nasdaq futures up 16. As for the dollar, we have a lot of action in currencies this morning. It has a story of a stronger u. S. Dollar. The holds near weak levels at 1. 08. The japanese yen, thats the pair thats charged higher. Its helpful for the japanese stock market but hurts u. S. Markets. Hp that compete with japanese counter parts, though when dollar yen goes up, you see stocks rally. That pair over 104. We saw a broad rally yesterday. Its pause for breath there apart from the yen. Also from the dollar slightly hi higher against the chinese yen. Its a move south over the last two weeks. Its not been taken as a market. Much more relaxed about it this time around. People have been telegraphed earlier. Its against broad currencies. Against the dollar, theres a lot of Dollar Strength at play. If you read the chinese news, they attribute it to Dollar Strength and to anticipation of a fed Interest Rate hike, which does make sense. They are not as worried about out flows. The offshore market is at a record low. Its a big move, but not derailing equity markets. First european markets are doing well yesterday afternoon. Apart for the german dax, we have the Business Sentiment data. That was widely expected after the flash pmi on the manufacturing side hit a 33month high. Either way, german stocks up half a percent. Italian banks doing well as the new Leadership Team outlines its plans to turn the bank around. Asia not soft in light of a weakness in the chinese. Shanghai up a a bit. Oil prices were down yesterday. Inching toward that 51 a barrel level. Brent, 51. 80. Gasoline higher as well. Holding steady in the mid170s level has been. Top end has been 180. Well see if Economic Data starts to heat up. Well get durable goods. Widely expected hike in december. It feels like the tenure note found a a new range. Opposed to for the earlier part of this month and last month. Theres inflation around the world and thats driven yields higher. A quick check on gold. A little change to yesterday. A a bit stronger today by half a percent. It tends to go in the opposite direction of the dollar. Todays top corporate stories. Visa reporting a 28 increase in earnings. Higher payments than the acquisition helping the firms results. Trading was choppy in the stock after the bell. Results come a week after the ceo said he would step down in december. He addressed the transition. Im so proud to have been associated with visa, its clients, its partners and employees. I hope you feel that this is a Different Company than four years ago and the things we have done to position the company well for the future. Two other notable comments, visa got a boast from costco to choose their decision for a cobranded credit card. Also Economic Uncertainty is expected to weigh on the companys cross border payment volumes. Todays agenda is full of earnings and a pair of economic reports on the consumer. Several dow components will be reporting rt results this morning. Caterpilla caterpillar, dupont and united technologies. Also General Motors and underarmor. After the close, apple reports earnings. On the economic front, the monthly s p caseshiller hpi is out. Followed by the Consumer Confidence report at 10 00 a. M. The fed president will be speaking this afternoon. On the strong dollar theme, ill be watching p g earnings. They have been dealing with it. One of the worst sufferings from the strong dollar over the last year or two have turned around their business. Well see if that strength is justified after what was a pretty weak quarter from big competitor Kimberly Clark on yesterday. You could take apart whichever industry. The earnings stories are unique. Not to mention whats going on in the world of deals. Looking forward to discussing that more. Sonic reporting a bigger than expected drop in sales in its latest quarter. The fast food chain says Competitive Pressure led to that slowdown carrying over into next year down. Thank s s to a licensing deal t suned with chip maker. Fourth quarter guidance is above strong growth up 7 . Stronger margins. However, the utah based lenders says it loans under pressure from exposure to weakness in the oil and gas sector. Shares are up 1 . Other stocks for you to watch. Nordstrom planning to hire about 11,000 temporary workers for the Holiday Shopping season. Thats about 3 fewer. About 9500 of those will be for sales and stock positions. The rest to support stores and nordstroms website. Syngentas takeover is likely to be delayed. Regulators try to find out more about the deal in that sector. Reuters reporting that they are ready to offer more concessions to win over eu approval of the 43 billion deal. Net profit fell 4 of its cancer drug continued to fall after it came off patent. They are trying to turn around their eye care business. The drug giants ceo says hes still scanning acquisitions. Twitter is planning job cuts that could be announced as soon as this week. The social firm could terminate about 8 of its workforce or 300 people. Thats the same percentage it cut last year when cofounder took over as chief. The news comes amidquestions about whats next for twitter. I think an activist could make a difference there with respect to being on board. You have done a lot with your career. Maybe its time for that. Twitter also announcing it will change the release time of its Third Quarter results to before the market opens on thursday. It was scheduled to report after the bell. Twitter says it wants to avoid conflicting with earnings announcements by other companies on the same day. The big story of the week a trt and t buying time warner for 85 billion. Netflix ceo sharing his thoughts on the deal. Heres what he said. Its hard to tell. Its very early. We didnt know anything about it so were just sorting through it. For sure we want to make it so we want to require that for at t customers that hbo and netflix are treated the same. Now that they are going to own hbo, e we think special treatment would be inappropriate. But i think thats pretty basic. Besides a few concerns, he says hes not bothered by the deal as long as they are treated the same by regulators. Hastings was asked if he also might consider going after time warner himself to which he responded, quote, next question. And then later clarified that was not a no. Hastings says the reason netflix has been successful is because it stayed out of the space and the company does not do bigger meetings. His stock up almost 100 told since the firm went public 14 years ago. The reason it was key to watch what hes saying is because of this convergence of technologi s technologies. We were trying to analyze the logic in the deal. This idea of content and distribution. Something that netflix has done organically and how its going to change the landscape with google and Facebook Trading at record highs yesterday and time warner itself trading lower on worries a about the deal and about the Regulatory Environment. Definitely a big question having seen a similar type of deal take over in the past. Interesting must read later from steve case. Drawing parallels back to time warner, aol, that botched deal of the century offering specific anecdotes and advice thats in the wall street journal today and ill cover it later. Theres a point about the culture being so crucial. Can you integrate the two when theres such different backgrounds. More to come including apple set to post Quarterly Results after the bell. Well bring you three things to watch in those numbers. Stay tuned. Youre watching Worldwide Exchange on cnbc. Welcome back. Lets get you up to speed on the market action. Nice gains for the tech sector. The tech sector led the way up over 1 . The nasdaq led the way up 1 . Were continuing those gains this morning as you can see up. 29 . It comes off the back of gains in european trade as well. Lets have a look at oil prices this morning, which had slipped just below 50 recently. We are back above 50. 86 up. Creditors will approved a bailout loan after the country completed its new round of economic reforms. That loan consists of two parts. One for debt servicing and the other for clearing overdue payments. This marks the end of the first review of greeces more than 93 billion bailout, which was approved last summer after fears that the country would default. And eventually leave the eu. It hasnt even made the front pages or moved the markets. Back to the u. S. , charlie evan expects the central bank to raise rates three times by the end of next year. Speaking to reporters yesterday, as long as Inflation Expectations in the job market continued to improve, we should see at least one rate hike this year. Two next year. His forecast in line with the consensus of other fed members at their most recent meeting. Evans says the most important thing is for the fed to be more explicit about what conditions would prompt further rate hikes. I think investors might agree with that. Back to corporate news, a ton of Earnings Report. Apple will dominate the conversation. We are joined with what to watch when they report after the bell today. Good morning, will. The market is expecting the Third Straight quarter of declines for iphone sales at around 45 million iphones, down from 48 million a year ago. This would be the first decline for apple. Were also expecting a drop for apple down 15 . But it is worth remembering the iphone 67 has only been on sale for a couple weeks during this quarter. We might not see the full potential reflected and that may mean an optic in it that next quarter for iphone 7 sales. Other areas investors are watching include where apple is seeing weakness down about 33 in the last quarter because of tough e competition from local players. Investors are going to be quite keen to see what kind of strength Apple Software and Services Division is going to see given this has been flagged as a future area of growth for the company. Youll get specific commentary on whether they are gaining from the samsung issues or not. The market is expecting to see apple gain somewhere between 2 to 5 of market share from the samsung note 7 debacle. The iphone 7 plus is direct competitor to the note 7 given the screen size. That could mean we see android people jumping over to ios, which would be a huge boost for apple. What have you learned in your reporting about the event where apple is set to unveil new macs . Were looking at a new mac book pro that has a new touch screen on the keyboard. Its thinner, got a sharper resolution, its been a a Long Time Coming this refresh after four years. Apple is hoping this is going to reverse some of those declines its seen in the division of its earnings. We have seen the overall pc market declining quite rapidly. So apple is trying to stop some of those gains and its going to be up to the macbook pros to do that. Its a game of expectation when is it comes to apples stock Price Performance and what it can deliver. How high is the bar going sbo this one . I think what we have seen from previous earning reports is apple has had lofty expectations. But this time around, there was some barrishness when the iphone 7 came out. I think the expectations have been lowered for this Earnings Report given that. So we might actually see perhaps an optic in the share price given that investors arent expecting too much here and especially that we have seen some strong noise from the likes of u. S. Carriers saying that the demand has been strong. Apple itself said preorders sold out. There could be a surprise here for the market. Thank you very much for the color. Our tech reporter out of london this morning. No one likes the pink one. I go for rose gold. You can get it first because no one else want it is. And because its pink. Ready or not, election day, two weeks from today. We have the latest from the campaign trail for you, next. Today, i am helping people work better. And also feel better. I am helping hospitals personalize treatments using billions of data points. And working with medtronic to predict the highs and lows of diabetes, hours in advance. And i am working with orreco to use Biomarker Data to boost the performance of athletes. Hello, my name is watson. Working together, we can outthink anything. Hwere drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back. Two weeks away from election day. Hillary clinton and donald trump are campaigning in florida. Tracie potts joins us with latest. Good morning, so florida is going to be a very important state for both sides. But for Hillary Clinton, now that shes leading most of the Major National polls, shes also turning her focus to the u. S. Senate trying to help democrats pick up four seats to regain control there. Both candidates are in mustwin florida today where early voting is underway and some are still undecided. I am at a cross road. I do not know who im going to vote for. Reporter democrats have registered 50,000 more voters here. Im very concerned about the rhetoric coming out of his mouth. You got to get out and vote. This is our last chance. Reporter donald trump in florida continues to blame the media and pollsters for his downward slide. The media isnt just against me. They are against all of you. Thats really what they are against. Reporter Hillary Clinton up by 5 points averaging national polls. Shes diverting money and support to down ballot candidates like new hampshires Maggie Hassen trying to help democrats retake the senate. Shes never been afraid to stand up to donald trump. Reporter republicans trying to withstand the heat. They should suffer. Reporter on the trail with clinton, her attack dog against trump senator elizabeth warren. We nasty women are going to march our nasty feet to cast our nasty votes to get you out of our lives forever. Now, taking a look forward, both candidates, as we mentioned, are going to be in florida today. But interestingly, talk briefly mentioning but not really talking a lot about obamacare, even after the administration said those premiums are going up against next year on average 25 . Its been a big issue for republicans. He put out a press release, but barely mentioned it at his event last night. I was checking the unemployment rate. 4. 7 , a little lower than the national average. They have had good jobs growth. In september they added the most jobs in the country after california and texas. Give us the state of play in the races that we should watch. How is rubio doing and what are the latest polls in the election on this state . Its going to be tough for rubio. One of the things clinton is doing is trying to boost democrats running against some of these republican who is have a lot of name recognition or who are incumbents. Rubio has the complication that he was in the republican race. Although he repudiated trump on a number of things. Hes had a hard time in florida since he was a president ial candidate. So thats going to be a big challenge for him. Well keep an eye on it, thank you. Joining us from washington. Now to sports and monday night football. The Houston Texans facing the denver broncos. The denver rushing for 200 yards and scoring twice on the ground. Trevor siemian throwing another quarterback. 279. Both of us were at nfl games this weekend. Thats for the books. So random, because i dont go to many. This was my first. What did you think . It was enjoyable. Dolphins came back late to win it. We are picking up all fronts. Its an important milestone for you to go. I have done basketball. Still havent done baseball. You have to do that. Maybe you can go to the world series. Were just hours away from game one of the world series with the Cleveland Indians hosting the chicago cubs. John lester will be the starting pitcher. He won two titles as a members of the red sox. Both teams are attempting to break a long championship drought. The indians havent won since 1948. The cubs havent claimed the title since 1908. The cubs think they are cursed. Lets see if it breaks. Cleveland just cant start winning. Except for nba did win with lebron. They have had a good run generally. Not so much until now. This morning, the top stories. We have a parade of sports. Well get you ready for earnings. Stay tuned. Youre watching Worldwide Exchange on cnbc. Good morning, ready to roll out Quarterly Results before the opening bell. Currency calls, the dollar trading near ninemonth highs. The reasons and the market implications. Plus mean tweets. President obama reads social media comment on late late night tv. That trops the trending news. Its tuesday, october 25th, 2016. Youre watching Worldwide Exchange on cnbc. Good morning, welcome back to Worldwide Exchange. Good morning to you from me as well. Lets get straight to the action in Global Markets. First up, u. S. Futures are higher around. 02 . Nast dak higher by 13 points. Led by tech given the action were seeing in the Broader Media industry at the moment. Particularly over

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