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tv   Worldwide Exchange  CNBC  October 12, 2015 5:00am-6:01am EDT

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a rate hike remains data dependent. ecb board member tells cnbc exclusively that policies could ease further. >> premature to discuss it but we need to be prepared to focus on all kinds of contingencies. >> glencore plans to spin off more assets. it puts australian and chilean
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up for sale. >> jack dorsey is planning company wide job cuts to be announced as soon as this week. investors are revving up for ferrari with an ipo road show with a value of $10 million. i'm carolyn rock. coming up. self-censorship. apple turns off the news app in china. find out why. investing in the cloud. dell is expected to have an offer for emc. and are abe's arrows hitting the target. we get kuroda's take on the landmark qe program. happy columbus day.
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let's quickly check in on u.s. markets and futures are indicating not much. we are coming off the best week for the s&p in the year in 2015. the dow also seeing the best week since early february so, yes, we are on a bit of a role. we're going to be up a point or so for the s&p 500. the dow jones lawyer by 1.5 points. nasdaq down. not much movement so far. let's quickly check in on european markets, shall we, and what's happening across europe. we are close to the one-month highs. the german dax seen gains by 1/2 a percent. the cac 40 here in france by 1/3 and the ftse mib. carolyn, we do have japanese markets closed for holidays. some asian pacific action this week. >> the holidays are a pretty
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interesting one. it's the health and sports day. they have the best holidays. we should do that in europe. asian markets, we're on a tear. shanghai comp up by 3.3%. that's in part because of more stimulus news. also the vice president of the boc saying that the stock market correction is almost over. the kospi up by 0.1%. hang seng up by 1.2. the asx seeing profit taking of 4% as a whole. brent, wti crude. wti crude has gained a whopping 8% last week. we're currently back above that 50 mark. 50.07. up by 0.87%. this week we want to find out why europe, one of the richest places on earth, is struggling to get its swagger back. we'll be speaking to a raft of
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corporate leaders and top government leaders on how the continent can capitalize on the successes rather than shortcomings. >> after nearly a decade of financial crises, bailouts europe is facing somewhat of a crisis of confidence. a narrative of negativity has dominated discussions around the future of europe, whether this be existential questions of the survival of the europe project itself or policy makers' inability to reach consensus on issues that challenge the continent as a whole. for all of its issues, europe is one of the richest places on earth in terms of wealth, expertise and innovation. europe's economy is the second largest of the world. the region runs a trade surplus with every other nation bar china and europe is the origin of the world's oldest bank. it is the birth place of the internet and it's home to 11% of the world's population.
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so what will it take for europe to get its swagger back? >> for more on europe's crisis of confidence and how the continent can get its swagger back head to cnbc.com. >> can we play that music again, the european swagger music? i love it. >> i don't know. let's have a look. no, apparently -- >> there you go. ♪ ♪ >> what do you think of that? >> well, i wonder whether our music needs a bit of swagger to be honest. >> i kind of like it. >> overall, it's an important question to tackle. >> i want to see your moves. swagger moves. >> no moves. that can't happen. a fed hike this year is an expectation not a commitment. that's the latest from federal reserve vice chair stan fisher who says the central bank is on course to hike rates unless instability warrants a decision to hold off. speaking on the sidelines of the imf meeting in peru, fisher says
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considerable uncertainties are there. china's finance minister has warned the fed not to hike rates. they said developed economies are to blame for holding back growth in the global economy because they're not creating enough demand. the slowdown in china should be seen as a healthy process. fed finance ministers need to be careful with the steps that are taking. another central banker speaking excludsively to cnbc. kuroda speaks about who will be the first to normalize interest rates first. >> u.s. and u.k., they will be recovering very robust so probably u.s. and the u.k. would be the first to normalize interest rates. on the other hand, ecb and bank of japan will be continuing very
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accommodative on the policy because ee economic recovery, yes, there is recovery but somewhat moderate and inflation rate is still very low so that we would continue accommodating monetary policy. we don't think it's necessary. as you mentioned, ecb certainly introduced the interest rate, but after that they embarked on qe and we have been implementing large scale asset purchase program, qqe, for more. so i don't think it's necessary to make it. >> i guess the argument is that rates -- real rates in japan are
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already in negative territory. don't forget, if you want to hear more about kuroda and what he thinks about quantitative easing, he also poured cold water on the mounting expectatio expectations, a fresh round of qqe, quantitative easing. he said inflation dynamics are playing out as expected, in his view removing the need he said for immediate action. he has to say that, right? he can't telustrate to the markets. >> let's give you a rundown on what to expect for the day. it is columbus day. bond market is closed. no economic data today. however, some fed officials are speaking. dennis lockhart and evans and brainerd as well are speaking. we're going haead to break here on "worldwide exchange." stay with us. we'll be right back.
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welcome back to "worldwide exchange." in an exclusive interview with cnbc one central banker is keeping stimulus on the table. coeure is speaking about the central bank's moves. >> we're all in the same place here. the global economy is growing
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modestly. the eurozone economy is recovering modestly. we don't want to waste recovery. we have to be very careful. in our judgment, in our analysis the risks come from the outside. do we see a down side risk to recovery? that is not coming from inside the eurozone, it comes from outside the eurozone, in particular from emerging economies. we're following very carefully and of course we have to be ready if anything would happen. we want to know what we would do. here in lima we're in a fact finding mode. we're listening. listening to the imf very carefully. and if anything would be needed, we need to be ready. it's too early to pass that kind of judgment. >> so we shouldn't prejudge here. i wonder if part of the reason is there's still a lag effect in the existing qe program we have. >> of course.
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we're only -- we've only executed 1/3 of the program. we are also benefitting from the lag effect of the previous measures as a targeted liquidity of forward guidance. lower rates. it's all fueling the economy at a slow pace so it's certainly too early to measure the full extent. >> so premature to start thinking about another qe program? >> it's premature to discuss it but it's certainly our duty to be prepared to focus. let's switch focus and take a look at some of today's tech stories. twitter's reportedly planning company wide layoffs this week just days after jack dorsey was named permanent ceo. they say it's unclear how many cuts will be made but it's coming as twitter is restructuring to make it more efficient. they have 41 employees in 35 offices around the world.
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twitter in german trade is off 1% today. >> dell is reportedly expected to unveil a billion offer for emc as soon as later on today. the data storage maker has agreed to a bid of $33 a share. that will be $27 in cash and the rest in new shares. reports say that as part of this deal emc will have 60 days to look for a better offer if one comes through. the so-called go shop provisi provision -- emc, we're looking at the shares traded in germany. look at that rally, some 7 1/2% joompt susan, apple is launching stores in india with croma. it will host apple at six of its locations as a pilot accord to go "the economic times."
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the parent company of croma is set to be extremely bullish. in other apple news, the company is said to have deactivated its news app in china. the apple news app, that's what it's called, which started in june will turn off an error message for those trying to get it in china. there are censorship guidelines mandated by the chinese government. apple shares seeing gains of 1/3 of a percent. there's that music again. >> i love it. >> you were waiting for it. arm's holdings, it's a heavy weight on the global tech scene. it provides chips for most of the gadgets in your pockets. i took a trip up to cambridge to
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have a look around arm's headquarters and meet with one of the firm's co-founders and chief technology officer, mike miller. ask arm co-founder and ceo mike miller if europe needs swagger, the answer is simple. he said it's already got it or had it. >> in some ways there's an advantage that we're in cambridge which was nowhere in particular. all of our customers in those days were in japan and america. it's a question if we had great tall length here, the engineering department here. >> last year arm shipped 12 billion, that's right, 12 billion of its mobile chip designs. partners like broadcome, qualcomm and south korea samsung, still, miller admits some frustration that big customers aren't from europe. >> standing up break through-through successions. that is a frustration. if you go one level down below that there's a whole raft of
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technology companies that are being successful. >> arm got its big break in the '90s when apple picked its chips for the new pda. >> say you want to send the text to margaret, highlight the name and text fax. >> that idea did not take too long to catch on. they look to silicon valley for funding. >> i said the innovation capital, that is all about taking investments that spin out of the university and companies in the region who focuses on creating local startups. it can be easier to raise money elsewhere but not impossible here. >> while he's the first to say europe is not short of good ideas, but marketing is something european tech companies could work on it. >> some say americans are taller and bratsier. we are more quiet. we are more discrete. it's not what we do to shout about what we do.
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most consumer products we are trying to grab consumer attention, you do need to be all out. >> for its part arm is still expanding. next year it will double the size of its cambridge campus. that lends a hand to the greater economy. house prices and incomes here are rising among the fastest in all of the u.k. mike's understandably confident about the future but quietly. >> when he talked about howell known the brand is, he said, you know what, i don't care too much. i want to do a good job and i want to deliver good products. that's completely different from any american firm. >> this is not at the american consumer end of things. the brand image isn't so important for everyone to know about as long as the apples and samsungs of this world know about their expertise.
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for him it all comes down to high, high level innovation. they're a great example of where a u.k. tech company has swagger, a huge amount of it. has that proliferated. >> i like their business model? they are more intellectual property because they create but they don't manufacture the actual chips, they license out these i.p. plans. debt free balance sheet. that's swagger. things are looking good. >> they're investing a lot more into the internet of things, into the servers, into the enterprise business. they almost want to diversify away a little bit from the cell phone business. high degree of saturation there even though there is a loot of talk in the market that chips might be moving to multi-core rather than due al core. >> great shining light in the u.k. tech industry. we'll take a break.
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let's remind you of the headlines. a fed rate hike is an anticipation, not a required. twitter is set for layoffs. and dell has a bid for software maker emc.
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let's check in on politics. the leader of the conservative house freedom caucus says that they would, quote, look favorably on representative paul ryan if he decides to run for is speaker of the house. let's get the very latest from nbc's tracie potts who's standing by in d.c. tracie, is ryan the man that can bridge the divide in the gop? >> reporter: well, a lot of republicans seem to think so. that very conservative caucus says yes. jason chaffetz said i supported him for president, vice president. chaffetz has his name in the hat, also. even donald trump says, yeah, we need someone with more toughness out there than we've seen with john boehner. yes, there are a lot of people rooting for paul ryan to run except for possibly paul ryan
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because when he's been asked about this, no indication at all that he's interested in this position. he says he's not running at this time. that's what we hear a lot in politics before someone has really made a designatures. that's not a definite no, that's saying he's not running at this time. things are up in the air with jason chaffetz and daniel webster. it's still out there as potentials but not able to garner enough report. the vote for the republicans postponed at this point until they can figure it out. >> tracie, thank you so much. >> i could get used to this music. i could. what do you think, we could. >> yeah, maybe. they're saying move on, move on. this week we're focusing in on areas in which europe moves on on a global scale. that includes science. they're responsible for one of the most important findings in modern physics.
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i got to visit the world's largest scientific laboratory to get more. >> reporter: it's the most famous 27 kilometers on the planet and it's 100 meters below europe. >> think about sern, what i would like them to think of, the laboratory. this is what's beautiful about it. we're able to be in such light there's no immediate application, just understanding nature. >> those fundamentals have led scientists to prove there is a god particle. an explanation as to why the sun shines and even the existence of anti matter. the innovative technology developed amongst the 2,000 or so cern sciences has more. serge matteo has shrunk the
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latest matter and he's trying to save lives. >> it will kill directly inside. but not outside, not around the cancer. it kills the cells where they are infecting the body? in other words, traditional radio her ri is -- it's not quite as portable as you would think. >> a long x-ray, 20 minute, 15 minute. after that you particles are there and hit the person. it penetrates into the body. so you have to imagine long x-ray window and the patient. >> 30 medical centers around the world already use the technology
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and experts believe 1/4 of those diagnosed with cancer would benefit from proton beam therapy. so the next stage on cern's agenda, to expand this european technology worldwide. >> ability to make it cheaper, technology for more people. we're going to go to break. we'll leave you with a look at the futures on this columbus day.
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good monday morning, everybody. happy columbus day. welcome to "worldwide exchange." i'm susan lee. >> i'm wilford frost. here are the headlines around the world. an expectation, not a commitment. the fed's stanley fisher says a rate hike remains data dependent. benoit coeure says the policy makers could ease even further. >> it's premature to discuss it but it's certainly our duty to be prepared to focus. >> bank of japan governor kuroda pours cold water on it and says they have more tools if needed. >> if inflation dynamics change,
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and if necessary we would not hesitate to adjust our monetary policy. >> twitter tightens its belt with the news that jack dorsey plans company wide job cuts as soon as this jeek investors are revving up for the listing of super car maker ferrari with an ipo road show that hopes to secure a marketplace valuation of nearly $10 million. happy columbus day. on this monday. mondays are tough, wouldn't you say? >> i don't know when you have such an exciting week ahead of you. i disagree. >> also, you get a breather if you're trading in bonds today because on columbus day bond markets are closed. equity markets still in trade. let's check in on how markets are fairing ahead of u.s. open. future is in play. we came off a pretty good week on wall street with the s&p notching its best week in 2015. the dow seeing its best week
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since the end of february. also the s&p, by the way, as we see right now with the futures are telling us we'll be a little bit lower. not much being priced into the open so far. maybe down by half a point or so. dow jones industrials down by 8.5 points. nasdaq should be losing 5.5 points. here's a look at the european side. we are close to one-month highs across the board across the region. the ftse mib, i'll start with that seeing declines of .4 of 1%. the cac 40 also lower. the german dax. these gains are dissipating pretty fast during the monday session. the ftse 100 as you see seeing losses here of half a percent. let's check in on commodities. commodities has been on quite a run. in fact we saw the west texas index, west texas crude, oil pricing seeing its best week by the way since the end of august.
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we're on a bit of a run. west texas crude seeing gains, 49 point 88. brent crude seeing gains. and a come back for that. the central bank is allowing banks to offer more collateral for loans. they can doll out more loans for the general chinese economy. we're seeing a rise in copper and zinc. when we talk about energy, we have to talk about the world's largest commodities, right, wolf, and their consumption of it. >> absolutely right. with that the recent route we've seen over the last couple of weeks in october. it begs the question sometimes prices derail some of the more delicate economic companies out there. jeff sat down with governor
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kuroda about the rate hikes. >> from september last year commodity prices, in particular oil prices, went up quite sharply. and since japan is one of the biggest importers of commodities, including oil, the japanese economy benefitted greatly from improved trade and that made, for instance, the corporate sector enjoy historic high level profit and wages are also rising. so in general lower commodity prices help the japanese economy to recover, but on the other hand, there are many emerging economies dependent on commodity exports and more than 50% of japan's exports to emerging
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economies in asia. and that means that too low commodity prices could affect our exports. so this slight recovery of commodities include oil. i don't think it would significantly affect the japanese economy. i don't think so. on the contrary, i think this slight recovery in commodity prices, including oil prices, may show that the global economy is still ziging although the imf slightly downgraded zblr expanding quantitative easing on october 30th which a lot of markets are looking for. i think that's a big question right now. in the u.s. we have a kickoff of
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the earnings season once again. the unofficial start with alcoa at the end of last week. this is when we get into the thick of it. tomorrow we have j.p. morgan chase reporting third quarter results. j. and j. and intel coming up with numbers. wall street will have numbers on wednesday. that's when the numbers kick into high gear. bank of america, wells fargo, black rock. we get netflix reporting as well. bank rilts roll on into thursday when we get numbers out of goldman sachs and citigroup. you have phillip morris and we round out the week, a busy week, with general electric and honeywell on friday. let's talk earnings. joining us from manchester, new hampshire, brian reynolds. brian, thank you so much for getting up so early for us on columbus day. we're expecting declines this quarter of 5% in negative growth -- earnings growth. that's what we expected in the second quarter.
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at the end of it we only saw declines of .7%. how is this time going to be different? >> i don't think it is going to be different. ceos have perfected the game of lowering expectations going into earnings and then beating that bar and if you look at corporate cash flows around tax time, that's consistent with the same thing that we've seen the last few earnings seasons. in other words, earnings are likely to beat lowered expectations. >> but it's all the profit margins. it's the first back-to-back earnings decline na we've seen since 2009. i guess the question for corp rates is show me how much money you make per share right now. >> if you strip out the energy sector, earnings will be up 2% which is pretty good given the slowdown we've seen in the economy, especially the global
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economy. the thing is not just how fast earnings grow but how long they're likely to grow. if you look at the credit cycle. if you look at what the credit market is telling us, it's telling us it's likely to grow for a number of years. that's just as important as how much they're growing. >> brian, let's touch on valuations of u.s. equities. we've seen a strong rally in october over the last couple of weeks as we approach earnings season. does that mean the earnings have to at the margin be stronger than we might have expected a few weeks back? >> probably not because earnings are lower -- i mean, equity prices are lower than they were a couple of months ago. we had a real scary panic in august. we started to recover from that in september. we got a couple of reversals from the federal reserve. first they said they weren't going to tighten because inflation was going to go down. now they are saying they are going to tighten because inflation is going to go up. they don't know what they're talking about and that panicked people in september. we have had a rally.
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we haven't gotten back to the highs yet. if you look at the last six years of the bull market it's full of the panic. we have the sharp drawdowns and we come back. we haven't fully come back. the pes are a little bit lower than they were, say, a few months ago. >> brian, what we haven't seen is too much stress in the credit market. at what point are credit investors going to get a little bit more worried about the beats and misses on the earnings side? >> they're actually -- that's probably not going to happen. we know that equity investors watch earnings like a hawk but credit investors just don't concern themselves that much with the earnings per share game that equity investors play. they look more at cash flows and, again, if you strip out the energy sector, cash flows are okay which means that the credit cycle is likely going to continue for a long time to come. >> speaking of the commodity markets, one of the companies that we've been talking about nonstop over the last two or three weeks is of course glencore. over the last two week or so
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they've really tried to get their house in order through asset sales, cutting the debt, cutting the supply. two weeks ago everyone talked about the similarities between lehman and glencore. two weeks later do you still think that's warranted? >> absolutely not. glen core is not lehman. first of all, they have plenty of assets they can sell to raise cash which is unlike lehman. when lehman got into trouble in 2008, they entered that year with over 500 billion of short-term debt that was strewn throughout our money market system. glen core only has about 11 billion in short-term debt. there's almost no money market fund that's going to get in trouble no matter what happens to glencore. to me glencore is totally different from lehman. yet, we're in the bursting of a commodity bubble. i've been talking about that on this show for over three years. that's a negative for commodity producers and traders. in terms of this being a macro disaster like lehman, glencore
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doesn't fit that bill at all. >> yes. fears of that are really dissipating in the last week or so. thank you for your time this morning. brian reynolds, chief market strategist. let's take a look at today's auto stories. investors are revving up for the listing of super car maker ferrari on the new york stock exchange. ahead of the float they're saying they expect a price range of 48 and 52 per share. that will value the company at nearly $10 billion. shares are expected to price on october 20th and will trade under the ticker race. an inventtive ticker they have there. interesting time to have an auto ipo come up. they've decided to go now. it refocuses on the european engineering to the likes of volkswagen, a much smaller and more refined name. it's a very strong name. it calls into question whether
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kind of everything is behind them. >> top end of the price range of $58, $52 apiece. that's about $900 million they'll raise, $10 billion for the valuation of ferrari. what i don't understand is they're going on this glitzy road show, you know that, right? the ipo road show. they're starting in new york and then head to boston. fidelity is based there. you have to play to the big investors. here to park lane in london. what i don't get, and i'm sure one of my producers might be a little upset at me, why do they go to baltimore? what's glitzy? >> if you can get investors, why not baltimore. >> which investors in baltimore? >> i'm sure there are plenty. we saw two ipos happening in germany. one was in the auto space. they had to cut their ipo price. they had to cut that range. actually, both ipos were off to a pretty strong start. got to wonder with all of that market volatility how much demand is there for an auto's
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ipo. i know ferrari is different. i think the vw scandal, that left a dent. >> this is also only 10% of ferrari that's getting us there. you don't get access to the company in full if you know what i mean. there's still a lot of control from the parent company. certainly interesting to see how this goes. >> people talk about this vw scandal impacting the demand for ferrari. no one buys a sports car or ferrari for its fuel efficiency. >> certainly not. >> who cares really? i think it's the name recognition. >> although the fuel efficiency of course of vw still not in question. it's the emissions. we have space i think in the studio for ferrari if they want to have a glitzy road show. they should bring one in. >> just bring in yours, that's fine. >> we could. i have 17, of course. alas, no, i just have the vw diesel. sticking with autos, the uaw will give them more than a week
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to review the deal. voting on the deal is set for october 20th and 21st. union leaders will spend the days leading up to the vote addressing concerns. uaw members rejected an initial contract deal late last month. quick check on chrysler shares in italy were up by 0.9%. still to come on the program, dell is set to unveil a major takeover offer for emc as soon as today, but reports say the storage giant may be shopping around for a better bid. more after the short break. want bladder leak underwear that moves like you do?
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so bladder leaks can feel like no big deal. get your free pair and valuable coupons at always discreet.com so we are coming off one of the best weeks for wall street in this year, in 25015. and one stock we want to talk about today is the big a, apple. yes, we always talk about this stock but, you know, some developments for apple in these emerging markets, for instance. apple stars are coming to india. when it comes to the market of china, in order to, shall we say, appease the chinese authorities apple is going to shut down the news app. apple apparently is still the graveyard for tesla. did you hear that? did you hear the trash talking last week? >> he always goes for strong lines, doesn't he, elon musk. it certainly got a lot of headlines. regardless of it, finishing up well, apple up 2.4%. >> let's switch focus but stay
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on the tech space. dell will unveil its takeover officer for emc. for all details, let's go to cnn nbc headquarters with dan lon. >> dell is poised to announce the biggest ever tech takeover as soon as today. they have agreed to buy emc for $53 billion. emc will have 60 days to seek a better offer from someone else. potential suitors include micro shoft or soft.
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under dell's order offer they will finance the acquisition. they will fund it for $33 a share. it would be a 27% premium to emc's stock price before news of the dell buyout leaked out last week. reports saidel is in talks with several banks to line up $40 billion of financing. this would help it better position itself against bigger rivals ibm and hp. checking shares of emc, they're up. >> i'll pick up. looks like a tangle, it's columbus day, right? we're all over the map. these are the headlines for you on this monday. a fed rate hike is an expectation not a commitment says fed vice chair stanley fisher. twitter tightens its belts reporting company wide job cuts and glencore is selling mines in
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australia and chile as it tries to deal with its debts. [ male ] some come here to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪
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welcome back to the show. all this week on cnbc we will be talking about why europe needs swagger. after nearly a decade of financial crises, bailouts and endless summits, the block is facing somewhat of a crisis of confidence. we've been asking the world's top policy makers for their views on how europe can get its swagger back. >> over time since we've started the monetary union we've built it up, strengthened it, we've built more institutions to support it. so i think we're coming into a new phase now, a phase which is about stabilities, which is about forward movement and of course as always key is still political stability. >> the credit steps are clearly open everywhere in the eurozone
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and what we've done at the ecb has been very helpful. it is really finding its way to the end of the pipeline that is to be the corporations, the companies. the financial companies have decreased by 75 basis points over the last year. there is no financial risk to the government. >> i think many european companies, particularly in order dick countries, have made tremendous progress. at the same time female labor participation ratios also increased. these two are not inconsistent with each other. >> difference compared to how things were a year ago is that now we talk about many countries, let's say countries such as france, italy, spain,
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ireland. they're all growing. it's not -- it's not dramatic growth but it's this kind of modest but stable recovery. okay. let's quickly check on u.s. futures since we are coming off one of the best weeks in 2015 for wall street. the s&p 500 up a little higher. dow jones industrials maybe lower by 2.5 points and nasdaq down by 3 points. we have the founder and president of brewen hill partners. this week is all about earnings, isn't it? >> it is. actually, if you ask me, it's about tapered earnings in regards to lowered estimates. i think a lot of surprises which the end result will be in a higher s&p chasing that 2046 target. >> what about pricing? i think what is it the pe average is way above the 10-year
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average for wall street. we're looking a little pricey and choppy. >> actually, i think we're going to have to start getting used to that. i don't mind the ten-year reference because it has always been the norm. i think the new norm is where we're seeing market pricing today. in other words, more exceeding higher will probably stretch that band and then as we start to pull back slightly in prices you'll start to see a little hovering near or below these levels. i would not be surprised if you saw this nervousness for those reasons continue because it is the new norm. >> michael, what we've seen in australia, what we've seen in europe is a little bit of profit taking after the fact that we come off the best week in 2015. that is for the u.s. markets. do you think we're going to be seeing a little more profit taking in the u.s. markets this week, too, or does this rally actually have legs? >> well, i clearly think the rally has legs and i think the profit taking is actually a very good common place regarding the
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specific pessimism that crept into the market immediately after the fed's nondecision. and i think what happened was the knee jerk decision was that the market was not going to be able to sustain these fed thoughts so the market started to turn back but i think either the ongoing earnings or the ability for value to continue to come into the markets specifically in technology was a driving force. i think that momentum will probably take us right through at least into the fed meeting and through year end fourth quarter. >> michael, thank you so much for your time. appreciate it. michael guerka, founder and president of morgan hill partners. that's it for today's show. no more time left. thank you for joining us. i'm wilford frost. >> i'm carolyn. >> happy canadian thanksgiving. i'm susan lee. u.s. "squawk box" is coming up next. u wouldn't take medicine
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good morning, chinese stocks jumping overnight by 3% after they suggested the country's stock market correction is almost over and bankers can decide when it's over. a record-breaking tech deal. dell set to buy emc for about $65 billion. an announcement expected as early as this morning. turbulence for southwest airlines. huge lines and long delays as hundreds of flights are hit by a technology glitch and now the airline is warning that the trouble isn't over just yet. it's monday, october 12th, 2015, and "squawk box" begins right now. ♪ ♪
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live from new york where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. it is october and that means major league playoffs. game three is tonight. looks like dodgers second baseman chase utley will not be playing. this is the play. yeah. he's suspended for two games as a result of an illegal slide on saturday night. he broke reuben tejada's leg. utley has appealed the suspension. they will hear before tonight's scheduled first hit. check it out, it's the front page of the new york post. you can see about how

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