tv Worldwide Exchange CNBC October 5, 2015 5:00am-6:01am EDT
good monday morning. welcome to "worldwide exchange." i'm susan lee. >> i'm carolyn. your headlines from around the world. the fed can raise rates despite the figures on friday. the forecast rates have dropped 30%. a tale of two stocks k plus s slumping to the bottom of the stock 600 after the pot -- aash abandons the takeover. glencore says they will listen to takeover offers as a
commodity trader appears closer to spinning off some of its agricultural assets. american apparel filed for chapter 11 bankruptcy as they secure restructuring support from 95% of its lenders. so we had a pretty volatile session to close it off on friday. the biggest point swing for the dow since october 2011. moving some 459 points. let's check in on the futures trading, what they're implying with the new start to the week. the s&p 500 looking at gains of 4 points. the dow jones industrials higher by 57 points. the tech heavy nasdaq should be seeing points higher of 20 points. let's check in on the rest of the globe. positive in asia. hiking interest rates. still a very accommodative macro
world. like to see the global 3 00s. let's check in on european markets. we are zooming ahead today after the up and down session on friday because people are trying to make sense of what exactly the jobs number means for fed monetary policy going forward. this is minimal gains. when you look at the individual benchmarks today we're really -- i mean, this is conviction buys here. ftse 100 up 2%. we have the german dax in bear market territory. down 20% from the recent april highs coming back about 2% today. the cac 40, we're calling it up 3% almost and the ftse mib also advancing by 2%. there's some buoyancy in the markets today, isn't there? >> absolutely. that's why you're seeing bond prices moving lower today. hey, what did we see on friday? we saw a big drop in ten-year u.s. yields back below 2%. that's where we're still at 1.99%. we are at six-week lows on the
back of the disappointing jobs report. there wasn't anything positive to look for in that report. also we saw ten-year german yields dropping to four months low. we're currently sitting at 53 basis points. the currency markets, the dollar lost a lot of steam after the disappointing jobs report. it is a touch higher against the japanese yen. it is lower against the euro. the euro u.s. dollar was above 113 on friday. couldn't quite hold onto the gains. still up by roughly half of 1%. we're seeing sterling a little bit lower on the back of the disappointing services report. in the commodities space, oil making moves. putin is now willing to speak to other producers about the imbalance of the market. we saw the continued drop in pounds and gold, spot gold is losing a little bit of steam off by 0.2%. let's talk about what's
happening with monetary policy and boston fed president eric rosengren saying he expects the fed to raise rates this year. yeah, despite the weak september jobs print but he tells righters a slowdown in hiring last month really heightens his sensitivity to the economy's performance for the rest 20615. so if the u.s. grows less than 2% or if unemployment rises from 5.1% he says he would prefer to wait until maybe next year to hike interest rates. let's see what the rest of the market is thinking. joining us from washington we have martin leclerc chief officer. thank you for getting up so early for us. i'm trying to make sense of all of the fed talk. rosengren says he's interested in hiking rates. you have the dismal, disappointing jobs print for september then the markets are only pressing in maybe less than
30% probability. what's your view? >> it's a lot of noise. the interest rate environment is at zero. what the fed is talking about is trying to get us back to more normalized world where interest rates are -- in real terms are negative. so i think that investors have really focused on that as really noise. if you have investments and if interest rates go up by a few basis points and it will permanently impair the investment outlook for that investment you own, then maybe you're in too risky a sector of the market. so hopefully they'll raise interest rates at some point next year because that will imply that the economy will be extending further into the future in terms of the second arm of recovery. so we see interest rates going up as actually a positive thing. >> yeah, okay. so, i'm sorry, i'm trying to make sense of what your call
was, martin. are you saying interest rates won't go up in 2015? are you saying it's going to push up 2016? >> i think clearly first quarter probably at the very earliest. the -- the fed is very concerned from everything they've announced, the fed is concerned that this economy could slip back into recession. we're going through a transition here in the united states from being in an environment where the price of energy, particularly petroleum, has gone from being very high 18 months ago to now being low and because of the way the infrastructure is in this country, the consumer hasn't really until fairly recently appreciated that oil prices are down and they're kind of staying down and so until that reality kind of propels the economy going forward, the fed is rightfully being cautious in here because in this new economy
there are going to be winners and losers. it's the oil producers who are, you know, obviously the losers. the consumers of energy are the winners. that hasn't really filtered into the economy. >> martin, just to quote you, you said there's so much noise for investors. i want to know what camp you're in. a lot of you are talking about we might be in a bear market. others are saying this is a correction in the ongoing bull market. where do you stand? >> i think the latter. i think that if you look at where stock prices are, just at the pe right now basically at the 15 year mean. the economy because of debt, demographics, other factors, we're not going back to 3 or 4% growth any time soon. however, the economy continues to expand and so long as the economy continues to expand stock prices historically anyway have never gone into a bear market. what we've seen recently is some selling climaxes last week and
hopefully that will hold but there's no assurance obviously that that's the case. but for the intermediate term, you know, we're still going with the theme that stock prices will be higher next year. >> okay. so what makes you so bullish? i'm just wondering, martin, because some say the bond market tells the truth in terms of what people think. if you're looking at the ten-year treasury poised to break through 190 on friday which was really scary. doesn't that say to you that the world is not all that great? >> well, there is that element to it, but then the other element is once investors stand back and say, well, i'm not going to put my money into bonds at 2% or can i, you know, put my money into quality companies that always grow their dividends and get paid 3 1/2, 4%, going that route in a growing income stream, then i think that makes stocks a lot more competitive.
right now stock prices are yielding -- stocks are yielding more than the ten-year treasury here in the united states. that is a very rare occurrence. usually the ten-year treasury yield is considerably higher than the stock yield so just interest rates alone make stocks a very competitive asset class. where else can an investor go and get the kind of cash flows except from u.s. companies and foreign companies as well with global investors. >> sounds all encompassing. martin, thank you so much for your time. martin will he clerk, chief investment marketer. let's move on and let's talk about emerging economies. they could send the global economy into a slump by prompting weaker growth and a downturn in financial markets. this according to the latest brookings institute at t index. it shows that it's sharply d
diverging. the world bank has shown its pessimism in china and the east asian pacific region by downgrading the growth forecast for this year and also next. it's lowered the 2015 outlook for china's gdp to 6.9% what they're calling citing risks of the slowdown for beijing along with concerns over u.s. rate normalization. 6.9% in 2015 still pretty good. they were pricing at 7.9% which is above market consensus. 6.9, aren't we in line with others. >> you're right. it's not that bad. 5.9% is a number that would have shocked me. >> or 3. >> that's what a lot of people are talking about. >> real growth rates are 3 to 4% in china. >> the u.s. and 11 pacific rim nations are on the verge of a final agreement on the biggest free trade deal in a generation. the trans-pacific partnership would cap five years of tough
negotiations. negotiators say they're close to a deal on the tpp after a week of takes in atlanta. an announcement could come today. let's give you a rundown of what to watch for on the trading day as we kick off the new trading week. the september ism services index is due out at 10:00 a.m. eastern time. the survey has been red hot with more than a decade and it will slip in september. it still indicates that the sector is growing. last week the ism dropped to its lowest level in more than two years. let's talk about sports because miami and, yes, new york came to wembly stadium in london. miami was looking to avoid the third straight loss when the dolphins crossed the pond to face off against the new york jets in the nfl international series taking place in london. the jets' running back chris ivory was back in action following injury and set the tone really for the rest of the game crossing the line otherly
in the first and put the jets ahead where they stayed to finish the game 27-14. the two teams' fortunes continue to diverge with the jets now 3-1 and dolphins are 1-3 as both head into a by week. maybe get some rest from all of that jet lag. something else, yeah, they were preoccupied with on their trip here to london. so while their season is far from going down the toilet, the jets, of course, they took some precautions, some certain precautions when making their first trip to london. now a list of their logistics of the trip which was obtained by the new york time noted a recommendation by the intern who has been to london many times recommended that they bring their own toilet paper because london's toilet paper is, quote, very thin. they brought over 350 rolls of tp to make sure that, you know, those specific trips went well. >> i hope they didn't tp anyone, not the stadium, not the fans.
is it really that much thinner in london? >> good question. >> we should measure it. >> do you think so? >> i don't know. maybe where they're staying. i'm sure they're staying in pretty nice hotels. >> we can also get their opinions because we have a lot of great new york colleagues. maybe they can go up to the new york jets, were you that concerned about the tp? >> perhaps. all right. we're going to go to break here. coming up on the show, yeah, they wanted to be involved in that conversation pretty quickly. four years on from the death of apple ceo steve jobs, we'll take a look at his legacy at his own company right after the short break.
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the fastest internet and the best tv experience is already here with x1. only from xfinity. welcome back to the show. these are your headlines. boston fed chief eric rosengren says the fed can still raise rates despite the weaker than expected jobs data. canada's potash calls off the bid and american apparel files for bankruptcy protection. it was an out of this world weekend at the box office with "the martian" taking a top spot. the film stars matt damon as an astronaut stranded on mars made 5 million in the debut.
the second best opening behind "gravity." it's the second best debut for the director trailing only "h a "hannibal." now today marks the fourth anniversary of the death of apple's co-founder steve jobs. he passed away following a long battle with pancreatic cancer. jobs and steve friend steve wozniak formed apple. since his death they have reached the baffling heights of the largest company plus a hollywood movie based on the best selling biography of jobs is set to be released. the problem with this biography, yes, danny boyle is at the helm of the company. the people closest to steve jobs take issue with the script, that includes his wife, lorraine
powell jobs and also tim cook himself who was on stephen colbert calling this opportunistic, something he hates. mrs. jobs, you know, she was invited to take a look at the script. what she takes issue with is this artistic license. eric sorkin wrote "social network" and she says this is not an accurate portrayal of steve jobs. not a -- i wouldn't say it's great for his legend, shall we say. >> honestly, as a wife you don't want to remember your husband in that way, you want to remember him with all the positive attributes that he had. in an e-mail statement universal pictures chairman she says the film was made with the utmost integrity and we're enormously proud of it. the co-founder consulted. he did get paid for it. he also says, i really like the film. i feel that it did a really great job. it is about jobs and his
personality so very split reviews on that. >> it's interesting that steve wozniak and steve jobs in this soon-to-be released bio pic, it highlights the part of apple legacy where steve jobs went up against john scully, lost his job, and then had to come back to the company, right? >> you know, we'll see how it does. >> we'll see how it does at the box office. one report says it needs to rake in, what, $100 million worldwide to break even. so that's a pretty high bar. we know that the last is apple movie didn't do too well. >> i think the budget was $33 million but you throw in all the marketing, et cetera, et cetera, and also since we're talking about the legacy of steve jobs since he died on this day four years ago. during that time on that day the stock traded i was looking at
337 u.s. dollars. of course that was before the stock split. that stock has continued to rocket with his legacy and steve jobs and tim cook at the helm. still to come on the program, printing money. want to check out the latest i.t. spending report and see how much capitol companies plan to invest in the cloud.
welcome back to "worldwide exchange." american apparel has filed for chapter 11 bankruptcy reaching a pre-arranged deal with most of its creditors. the teen retailer says it will continue to operate its business throughout the process. the company is expected to cut its debt in half. it was founded in 1989. it fired churny last year for alleged misconduct and that includes sexual harassment charges. i'm looking at some comments coming from glencore ceo ivan glosenberg. this stock has been under fire. we stau going up 40%. that's after a 30% drop. anyways, mr. glossenberg says congo and zambia understand what we're doing with regard to the copier mine shutdown. he says the copper mine shutdowns should have an affect
on the price of copper. he's speaking at an f.t. commodities event. we'll bring you more details when we get them. global i.t. spending is set to continue on its current growth path reaching $3.6 trillion in 2016. this according to the latest research from gardner. software is expected to lead the way. the company predicts a 6.2% spending rise next year but gardner forecasts an overall drop in i.t. spending this year before recovering and growing by nearly 2% in 2016. joining us now from orlando to discuss that report is peter sundegard. peter, thank you so much for getting up early for us. look, 2015 is going to see a little bit of a drop to the tune of 4.5% in i.t. spending. what's that really down to? is it the currency? is it the uncertain outlook for the global economy? is it fears of a fed rate hao i can? >> it is really a question of
the currency appreciation in terms of the dollar that we've seen and so if you measure this actually in constant dollars or constant currency, the market was actually up or will be up in 2015 by 2.5%. it will be up a little further next year. interestingly enough though is that this drop is actually this year going to be larger than the drop that we saw in 2009 because of the currency correction and that's really impacting multi-nationals. they've been more cautious in terms of their spending. we will also see an impact in china in the first half of 2016 as a result of their movements of currency somewhat similar to what we're seeing here in the united states this year. >> all right. when you talk about the i.t. sector, you always think about investments into pcs. we've really not seen a big turn around in that sector. can the pc market ever recover? when windows 10 was launched we thought there would be a little
bit more investment there but that sort of seemed futile, didn't it? >> yeah. i think we've not seen windows 10 have any impact on the traditional pc sales. what will happen though is as we start to see more shipments of ultra portable devices, the devices that are a little larger than our phones, then we think we're going to see an yuptick i windows 10. users use a multitude of different devices so the overall device market has done decently. it's not been growing as fast as it has been but it's doing okay. most of the spending and most of the changes is really something that has happened in spending on cloud and spending on security. >> peter, while i have you, you know, on this day four years ago steve jobs passed away. so given that apple was a worst performer last week on the dow, i'm just wondering if you can
even encapsulate for us a four-year zone, what has steve jobs meant to the world? >> i think steve jobs has changed everything that has to do with technology. he has really put technology in the hands of consumers and i think apple is carrying that forward. i think interestingly enough they're going in two directions, one is that they're going in a direction that really introduces what we in gardner call the post app era. in the 2020s we will have a layer on top of our apps that will be intelligent and know us. that's the first thing. the second thing is carrying forward what steve worked on is move apple into the internet of things. next year, for example, we are going to see 2.5 million dollars spent on internet of things hardware per minute and five years from now we are going to see 1 million new devices come online as a result of the internet of things.
that is what steve has done. >> all right. peter, thank you so much for your time, your insights today. peter, global head of research gartner. let's turn our attention to weather and at least seven weather-related deaths on the east coast which was hit by heavy rainstorms. nbc's jay gray is in columbia, south carolina for us, jay. >> reporter: hey there. good morning. yeah, we're getting a break from the rain right now. that's the good news. the problem here is even with no rain, the water level continues to climb in the creeks and river. the river behind me here in the dark is above flood stage already. it's going to climb over the next several days. in fact, a flood warning for the river has been extended through at least late tuesday and many forecasters say they believe that will be extended as well. we know at least five people have been killed as a result of the storms here. hundreds pushed from their homes and everything inside those homes washed away by what are
historic floods here. the governor of south carolina, nikki haley, has said they haven't seen rain and flooding like this in 1,000 years. this is an epic event. one that's still unfolding or going to cause problems in the next several days. the cleanup will take much longer. carolyn, susan, back to you. >> jay, thank you so much. still to come on the program, we'll turn our attention to politics and is the trump train slowing? with polls showing republican rivals catching up with the donald, we'll bring you the latest from d.c. right after this. i'm jerry bell the second.
and i'm jerry bell the third. i'm like a big bear and he's my little cub. this little guy is non-stop. he's always hanging out with his friends. you've got to be prepared to sit at the edge of your seat and be ready to get up. there's no "deep couch sitting." it's definitely not good for my back. this is the part i really don't like right here. (doorbell) what's that? a package! it's a swiffer wetjet. it almost feels like it's moving itself. this is kind of fun. that comes from my floor? eww! this is deep couch sitting. deep couch sitting!
good monday morning. welcome to "worldwide exchange." i am susan lee. >> i'm carolyn ross. these are your headlines from around the world. the fed can raise rates despite the job data we got says boston fed chief eric rosengren as a forecast now dropped to around 30%. a tale of two stocks. k plus s slumps to the bottom of the stock 600 after canada's potash abandons the 8 billion euro takeover. glencore surges in hong kong and london. they suggest that they will listen to take over offers as
the commodity trader appears closer to spinning off some of its agricultural assets. american apparel filed for chapter 11 bankruptcy. they secure restructuring support from 95% of its lenders. hi. if you're just tuning in, thanks for joining us on the program as we kick off a new trading week. let's take a look at how markets are fairing ahead of the u.s. open. here's a look at futures after the volatile, volatile session on friday which is the biggest points swing for the dow since october 2011. so fair value is telling us we're going to be higher for the s&p 500. up 6 points. dow jones industrial pricing in gains 50 points above fair value. the tech heavy nasdaq should be up 23 points. let's talk politics. donald trump is still leading in the polls in the early voting states of iowa and new
hampshire, but his support is slipping. let's get to nbc's tracie potts who joins us from washington, d.c, this morning. tracie. >> reporter: yes, his support is slipping in the latest nbc/wall street journal marist poll. we look at iowa and new hampshire. he is leading ben carson by five points in iowa at 24% but that's down for trump. he's also leading in new hampshire but only by 4%. carly fiorina has surged in that. trump was on "meet the press" over the weekend talking about a number of things, the middle east, talking about the economy, promming he can grow the u.s. economy 7% in a year, something that we have never seen. he also talked about gun control which is what we expect to hear from hillary clinton today. she's going to be on the "today" show talking today in a town hall about her plan for gun control, particularly curbing
the sale of background checks, going around congress. >> all right, tracie. thank you so much. tracie potts in d.c. 7% growth. that would be huge for the u.s. now let's talk about raising money because that's kind of the key to get elected some say. charles and david koch have short listed carly fiorina as one of the candidates to get their backing. the owners of koch industries are prepared to be readying a $1 billion war chest for the 2016 race for the white house. sources suggest that florida senator marco rubio is also among their list of preferred candidates. now there's some competition as well as who will replace john boehner as u.s. house speaker. jason chaffetz who chairs the house oversight committee says he's running for the position. he's seen as a long shot bid to
beat kevin mccarthy for the post. chaffetz says there shouldn't be an automatic emotion for the republican leadership team and thinks americans want a new face. let's talk fed. boston fed president eric rosengren says he still expects the fed to raise rates but he tells righte ereuters it will s. if it grows less than 2% or unemployment rises less than 5.1% he says he'd prefer to wait until next year or hike rates. rosengren says he does not need to see inflation or wages rising to support a move but the labor market is key. former fed chairman ben bernanke says that more corporate executives should have been prosecuted, put in jail for their actions that led to the financial crisis in 2008. in an interview with "usa today" bernanke says that the justice department focused more on
indicting financial firms and he says analysts were slow to realize how serious the downturn would become and he also faulted himself for not explaining well enough why it was prudent in those times in 2008 to rescue companies that caused the crisis. bernanke's new memoir "the courage to act" is being published today and he will be on "squawk box" in an exclusive interview. that's coming your way at 8:00 a.m. eastern time. so interesting to hear what he has to say. going back to his comments with "usa today", everyone is quoting him, how he thinks more people should have been put behind bars for their part in 2008. he says it was a justice department's -- that was part of -- that was their responsibility is to investigate, to indict, probably bring more charges and more people, you know, in front of judges and jurors because the fed to him is not a law enforcement agency. and when they argue about individuals versus financial firms he says, you know,
financial firm is legal fiction. it's not a person so you can't put a financial firm in jail. >> i think he struck a nerve with a lot of people. too bad he's only coming out with the comments now. in the aftermath of the global financial crisis so many people said where is the personal liability for those, none of the big ceos, they've been arrested, none of them have gone to jail for this. we saw huge fines for many of the firms for misselling of mortgage bonds. hey, i think he was really echoing a lot of comments from people there. but as you say, the justice department should have looked at this. it's not the fed because obviously they're independent, but i think overall the book should be a pretty interesting read given that usually he's not very emotional. we've never seen him like that. who was it i believe that was -- time geithner, the former secretary, he said he's like a boot so zen. >> he is so zen. it it's interesting he's making the
argument they should have been brought to trial. we've only seen low level senior vp of sales that have been in any trials. >> do you agree? that's the question to our viewers today? should you be locking them or should we be locking them up? do you agree with ben bernanke that more bankers should have been prosecuted? you can e-mail us, find us on twitter and our personal handle should be coming up there across the screen. that's going to be a very interesting conversation. >> don't want to miss it. portugal governing coalition has claimed victory with just over 38% of the vote just shy of a parliamentary majority. julia is in lisbon with the reaction. julia. >> reporter: thanks so much, carolyn. as you quite rightly mentioned, the incumbent prime minister, the first european leader to be re-elected after passing many measures in four years of austerity in a country in
europe, as carolin pointed out he didn't get the majority he was looking for, it's a minority. he has to rely on defeated socialists, the center left party, in order to pass policy going forward. there simply aren't enough parties together. we spoke to a well known political commentator here in portugal and i asked them what kind of deal can be done behind the scenes between the incumbent coalition and the opposition socialist party and look to come up with some type of reform policy going forward. listen in. >> although they don't have the majority, they have a sufficiently blocking power in parliament. not to let certain measures pass and they said that they would be ready to do some sort of arrangement if certain red lines would be respected. i would spoke cue late that if they have a minister of finance, a minister of social security, a minister of health, probably a minister of economic development that is an independent or that
is closer to their views, probably have to be enough for them to let in minority government. >> reporter: we'll have to wait for a formal announcement of a coalition government. they'll come up with a plan over the next ten days that will pass through congress. the next step that is a budget for 2016 but overwhelmingly i think the response in the markets here is what's telling you the story. we have the ten-year yield in portugal down to five-month lows, in fact. now below 2.3%. the similarities between the center right coalition and the center left socialists going forward, incredibly similar. i think the bottom line is continuity in policy but whether or not there could be tensions going forward, we have to wait and see. guys, back to you. >> thank you so much, julia. still to come on the program, nelson peltz isn't afraid to take on fortune 500
continue to operate its business throughout the process. the company expects to cut its debt in half. american apparel was founded by doug tourney in 199. it's struggled since it fired him last year for alleged misconduct including sexual harassment. google knows its abcs. the tech giant begins life under its new name today, alphabet. that will house google search and ad business, maps, youtube, and moon shot ventures such as driverless cars. google's class a and class c shares will convert automatically to the same number of alphabet a and c shares and will start trade on the nasdaq today. the ticker symbols don't change though which is interesting. >> i know you're pretty excited about this story. ferrari's management is set to hit the road ahead of the highly anticipated public offering. can they live up to the billion dollars ipo buzz. robert frank filed this report.
>> reporter: it is one of the most prestigious brands in the world. ferrari's prancing horse is coveted by rich car collectors around the world. the question is whether ferrari can maintain its cache and resale values while also satisfying shareholders with an ipo. ferrari is scheduled to go public over the next two weeks raising up to $1 billion and potentially valuing the company at more than $10 billion. in the filings the company said it will, quote, explore controlled growth while maintaining our reputation forex clues si for exclusivity. it will extend ferrari into luxury and lifestyle businesses including theme parks, clothing and even retailing. ferrari owners are like a global cult and they're passionate about the cars and the company. they worry that ferrari's current production, about 7,000 cars a year, could soar to over 10,000 and they fear that in trying to appease shareholders the company could dilute its
brand launching too many models or even the unthinkable, a ferrari suv. >> what i would like to see is that ferrari does not produce more than 10,000 cars a year because it's an exclusive market. you have to keep it exclusive. production numbers are key. so if you increase those numbers, you may damage the brand to a certain extent and we don't want to see that. i do not want ferrari to produce an suv. i do not want to see ferrari produce a four-door car. that's not ferrari, okay? ferrari is a v-12 engine sports car normally aspirated engine. it's a legend, what you buy. >> vintage ferraris are the most expensive cars in the collectible market. even pre-owned newer ferraris maintain their values. we'll see if they can preserve their values while also delivering growth for shareholders. back to you. pretty flashy cars there.
moving on. nelson peltz has tusseled with many people. peltz is turning his attention to ge. let's get out to landon dowdy at cnbc headquarters for the latest. >> good morning. the activist fund run by nels son peltz has invested $2.5 billion in shares since may. that makes them one of the top ten shareholders, trian. they will publish a white paper. they'll consider shedding even more of its finance arm, g.e. capital. unlike some of the other positions trian is not asking for a board seat. they believe they could take on $20 billion in debt and buy back more shares. they also think ge stock could
get to 40 or $45 if the company follows its plan. it closed at $25.47 on friday down more than 35% since ceo jeff ammell took over in 2001. the s&p 500 is up about 80% over that same period. he tells "the wall street journal" while he disagrees with some of trian's policies, the opportunity for buy back is in front of us. in april they said they would seek to sell $2 million of assets from ge capital. ne nelson peltz has been active targeting companies like pepsi could he. in the past companies typically reisted activist investors but growing cash has allowed them to gain more access to company boards. checking ge today in europe shares are up about 2%.
back to you. all right. thank you so much for that. meantime, i want to keep you up to date with what's happening over at glencore. remember, we're seeing quite a nice bounce back continuing in this week's trading session. monday we're seeing them up by roughly 10% but the ceo, ivan glossenberg is speaking at an event. he's saying glencore sees three weeks' copper supply the lowest in many years. he sees the lowest copper stocks in years and he sees massive commodities destocking happening around the world. he was also specifically mentioning a mining shutdown in congo and zambia. gl glencore up by 7%. i guess he would have to say that, wouldn't he, your stock being battered as much as it has? you know, i wish we could show you the hong kong list of shares. at one point we were up some 70% for glencore in one session.
70%. paring that back. i'm sure he'll take it. let's get to the headlines. boston fed chief eric rosengren says the fed can raise rates despite the weaker than expect the jobs data. canada's potashe calling off the bid to take over k plus s and american apparel files for bankruptcy protection. can it make a
s&p 500 up 6 points. dow jones industrials after the 459 point swing we're up some 63 points. the tech heavy nasdaq should see gains of 25 points. let's tell you what to watch for on this trading day in september. ism is out at 10:00 a.m. more than a decade high in july. it's going to slip a little bit in september but still indicate that the sector is growing. last week the ism manufacturing index dropping to its lowest level in more than two years. let's see bob iachino, chief marketing strategist. bob, lots of volatility back in the markets. what do you see this week? >> well, i like being on this monday morning show, susan, especially after a jobs report like we had. the swinging that we had. a lot can be garnered from
friday in terms of the way monday should play out. there's an underlying theme. we kind of need to be concerned. i clarify my view. it may happen this week with the data you mention. we have four fed speakers on. we have williams, all speaking this week, all probably speaking the same way as the fed speaker this morning did, that it is potentially still on the table for 2015. you do not want a rate height at the back drop of weaker u.s. data and pmi supports a little bit of weakness as the jobs report did things could get ugly quickly. >> markets could test another low, but on the other hand we have the kickoff of third quarter earnings season, bob. that sometimes is a catalyst for a big swing upwards. don't you believe that this time around we could be seeing better earnings? >> i think so but, again, the stock market trades into the future. one of the things i worry about right now, again, i'm bullish just not yet. i think what's going to happen is the same thing that happened
in 2011, the way those lows played out from may to late july, took about a month and a half, two months for the bottom to form. i don't think the bottom has formed yet. as big as the volume we didn't see as big of a swing. it tells you people are looking for the bottom. that's definitely the case. earnings could be the catalyst for that. take russia and syria, another thing we need to worry about. emerging markets. as long as the dollar stays weak and the u.s. market picks up, through the bull market that we had, we had a strong china. we had u.s. data coming in slightly better each month. we're not sure we have that. >> bob, we have to leave it here. thank you so much for your time. bob iachino. that's it for today's show. i'm carolyn ross. >> i'm susan lee. "squawk box", yes, ben bernanke is coming your way. that exclusive interview. don't miss it. i'll see you tomorrow.
good morning. breaking overnight. nelson peltz's trian takes a $2.5 billion stake. the so-called smart money gets a bad grade. new numbers show that the hedge funds are bracing for their worst year since the financial crisis. ben bernanke is back. not that he ever went anywhere. the former fed chairman breaking its silence saying the central bank did its jobs. the headline in the journal, how the feds saved the economy. afraid to say that. but, now, everyone is questioning what about everyone
else. that's what bernanke is saying. he will join us in studio in a live cnbc exclusive for a whole hour. it's monday, october 5th, 2015, and "squawk box" begins right now. ♪ ♪ >> announcer: live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. our guest is mike santoli. good morning, mike. >> good morning. >> before we get to the business news this morning check out the pictures from south carolina. torrential rainfall causing dangerous flooding in major cities prompting hundreds of rescues. officials warning residents to stay inside their houses, stay off the roads. a lot of those roads turned to rivers. the ghofr, nikki haley, sayg