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tv   Worldwide Exchange  CNBC  October 27, 2015 5:00am-6:01am EDT

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welcome to worldwide exchange. >> here are your headlines from around the world. >> european stocks are in the red today. u.s. futures are pointing down as a mixed earnings picture keeps investors on their toes. >> defying the oil downturn. bp shares jump in london after the oil major beats estimates and unveils another raft of cost cuts. >> novartis in the news. the swiss pharma giant sees net income plunge due to a legal settlement in the u.s.
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the strong dollar and weakness in it's eye care business weighing on the bottom line. >> could apple fall far from the tree? the stock closes in in the red ahead of earnings. signs iphone sales are slowing. >> here we are. the week is going by so weekly. let's look at u.s. futures and how they're fairing. the implied open obstetricaling us we're seeing gains today above fair value. we should be up just about one point or so. meantime the dow jones industrials prized higher and then the tech heavy nasdaq, we're looking at declines a little bit by maybe half a point or so. let's check in on european markets first. i'm get too excited aren't i? james bond, the premiere last night and we have casino opening
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in macau to way ahead of myself here. we're not going anywhere today the cac 40 down by a third of 1%. the german dax on a four day winning streak giving back some of that so we could see the end of this today. and the ftse 100 seeing losses of a third. it's over to you now, right, wilf. >> indeed. yesterday a mix to down day in europe and down again so far. but let's dive in in one stock in particular that is up. up 1.8%. bp trading higher off the oil giant beat expectations in the third quarter. it's key earnings number t replacement cost profit falling less than expected. the company is cutting it's capital expenditure for the third time this year and selling off more assets to deal with the lower oil prices but it is maintaining it's dividend clearly. the market taking that well. now down 3.86% after the german company slashed it's earnings
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guidance on global growth concerns and oil prices. particular weakness in key emerging markets like brazil and china. now shares down 2.2% after the swiss drug maker saw net income plunge 32% in the third quarter. this as it paid $390 million alleging it used kick backs of specialty pharmacies to push sales of its drugs. they also saw results hit by the strong dollar and weakness in it's eye care business. finally luxottica down despite a solid fourth quarter. the italian luxury group saw sales grow 23%. strong growth in it's u.s. businesses and favorable exchange rates. the high valuation level for the stock downturn this morning. >> let's give you a run down of what to watch for on this trading day. on this tuesday. we have durable goods orders once again.
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8:30 a.m. eastern time we'll get that release. consumer confidence comes your way at 10:00 a.m. eastern and it's a big weak for earnings. names include alibaba and ford before the bell today and then apple, twitter will report after the close. analysts are looking for growth in apple's iphone sales and signs that twitter can maybe reunite user growth. we'll also have ford's cfo later on u.s. programming today but let's talk through it. joining us now is matthew beasley. joining us around the desk. good to have you. here we are in the midst of a busy earnings week. one third of s&p components set to report but everyone is watching apple tonight. >> and everyone is waiting for federal vefsh news as well later in the week. we're back in this cycle now of we're looking for signs of economic growth in earnings but also being very, very focused on central bank activity and in interim markets tend to do not a lot. they tend to be all lackluster and you're seeing that today. >> which of those two factors
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inspired the rally we have seen over the last three weeks? >> it's data and those people bought maco data. earnings so far. certainly not draedful and then we had some positive central bank overtones. obviously last week we had mario draghi without announcing anything suggesting there was further support to come and this week we have the u.s. federal reserve and bank of japan and when we look across the world we have had over 70 different central bank easings from various different central banks and geographies. that's a lot of monetary support. >> i like that. who counted all of that up and how minute of the central banks do you include in that? >> that's a lot of monetary easing. we're meant to be in a world of
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economic recovery starting to come through and take over if you like from this monetary support and that just hasn't happened yet. >> it sounds like an equities positive picture. central banks easing and earnings not as bad as expected, right? >> well, we thought that and obviously equity markets have moved higher as results of monetary bank stimulus and support but you'd think to push on from here given the expansion we need proper growth. and it's not a lot of evidence of that. >> we haven't had that in how many years now? equity markets gained throughout that time. >> that wasn't a problem we inquirity markets were -- to use a broad term, cheap. but today what we'd argue is the u.s. markets near a fair value. for markets to move higher from here you're going to need some earnings surprise and so far this earnings season is not for that happening. >> so not particularly
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overweight for the u.s. and you turned negative on japan, right? >> japan is a market where you made tremendous gains. you had the support of the central bank. you had a currency weakening which while bad for overall market returns has been good for stimulating export driven growth out of japan. some of the best earnings division and japan repivoted toward china and asia and there's evidence there of a slowing. so while it's not a problem geography it will be harder for us to find bottom up individual mispriced stocks. >> we'll leave it there. thank you for joining us as ever. head of global equities at henderson global investors. >> u.s. leaders reach a tentative budget deal that would increase spending over the next two years. they would also cut social programs and raise the federal borrowing limit. now it still must be approved by the u.s. house and then the senate would avert a default in the governments debt and the deal also represents a major
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break through after years of gridlock in congress especially on physicfiscal issues. from controversial political elite to the infamous parties. yes we speak to the biographer of the new book berlusconi about the life of the ex italian prime minister. this is a conversation not to be missed. (vo) what does the world run on? it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... this big, bold, beautiful world.
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welcome back. white house and congressional leaders reach a proposed deal to reach the debt ceiling. jack dorsey is in the spotlight as investors hope for signs of user growth and bp trading higher after profits beat despite the oil slump. okay. you know the big report card of course after the bell today will be apple and apple falling some 3% during yesterday's session and currently lower when it comes to frankfurt trade. they have a lot to prove. apple has a lot to prove to the markets and will the expectations for apple this quarter prove to be too high? during this period last year apple reported the most profitable quarter of any u.s. company. not just any u.s. technology
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company but any company the world has ever seen. so analysts are forecasting revenues of just over $51 billion which is the top end of their own estimate. but apple watchers have been keeping a keen eye on the break down of device sales. now that they have watches, everyone is watching for the iphone but they'll relaunch the ipad and mac sales have gone way ahead of analyst estimates. >> it's the break down that will be important. iphones still account for more than 60% of the companies revenues due to the timing of the 6s launch comparisons to last year are slightly skewed but even some of the most bullish analysts have raised concerns apple may be lining up on its first year aon year drop in iphone sales. and susan as you say, we're looking for other devices to start to pick up the slack. it's unlikely to happen
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overnight. 2-thirds of the last quarter came from iphone. that was 35% growth year on year as well. the question is can that be sustained? i don't think it can. but if you look at various consensus estimates for 2016 and 2017 expectations are much lower. that growth isn't expected anymore and it's how quickly they get to that lower level of expectation and how much of that is priced in. >> i think there's a reality right now in the markets given the comps to last year when you had the best quarter any corporation has ever reported in the history of u.s. markets. how do you beat that sales figure. people are been pricing in hopefully single digit increase -- that's on the high end. the optimistic side of iphone sales but i think people are thinking okay maybe there's a saturation point and maybe growth in china isn't sustaining at the levels that we saw before. >> we'll see how much of that is priced. also don't want to forget the am
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watch which remains some what of an inigma but ceo tim cook is positive saying sales have exceeded expectations. a big one to watch. >> let's talk about the before the bell. we have to watch for alibaba. a close to 60% jump in net profits last year. the e-commerce giant, they missed revenue estimates last quarter and an increasingly competitive landscape means that we could be seeing pressure when it comes attorneyings growth but we have seen a pick up in alibaba shares, right. >> we have in the short-term but it's been under significant pressure more medium term. alibaba share could fall as much as 50% in an article that questioned the company's culture and governance.
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the report was incorrect and lacked integrity. it's now headed for the best month since ipo. it's up some 29% and that highlights the bounce back it's had since that barron's report. >> we were trading close to 50s there. let's talk about twitter as well. the blue bird will report third quarter earnings after the bell and all eyes will be on new chief executive jack dorsey. analysts expect the social networking giant to report adjusted earnings per share. 5 cents on sales of $550 million. investors will be paying attention to user growth after jack dorsey described previous growth figures as unacceptable and we should point out that twitter is still not making money yet. no profit yet after all of these years. >> long way to go on that. it's crazy when you think of the difference between the amount of
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money that it's making and facebook, google and, you know, instagram but it still does well in terms of interaction, doesn't it? >> i think engagement though has been declining. user growth has been falling and hence the pressure we see on the stock but i read a very interesting statistic and the amount of time that a user spends on facebook is around 40 minutes. the amount of time somebody spends on twitter, 4 minutes. so a major difference. >> i say this plenty of times and i always get slated when i suggest it but i don't understand why they don't launch an optional non-advertising model that you pay to use as a consumer. you don't have to force it on people. it's optional. i would personally happily to pay to get rid of all advertisements. >> youtube red. $9.99 a month to get everything you would on youtube without the
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advertisements. >> it seems they're not being that intuitive. we saw snapchat come up with an interesting model. we'll see how that works in terms of adding brands to people's selfies and i don't know, twitter just seems to go down a very simple model but as you say still no positive earnings from them. now dorsey's other company disclosed it's quarterly losses and sales growth is slowing. a troubling sign as the company approaches it's ipo. it lost $53.9 billion in the third quarter t. biggest loss since at least the 4th quarter of 2013 when it started releasing quarterly figures. >> yeah. you know, we also have a casino opening. that's right. they have been in the dull drums when it comes to gaming revenue but someone that's willing to roll the dice and roll the dice big, their new $3 billion studio city casino opens today. we'll take a closer look at the struggling gaming sector right after this.
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he uncovers stories of
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provocative remarks from george w. bush during the iraq war to his friendship with gadhafi plus of course the wildly documented parties. joining us now is the author of berlusconi. the story of the billionaire that took over italy. let's kick off more generally with his achievements because which was his biggest achievement? his political career? long career or going from rags to riches? and of course also the way he transformed a major soccer team in italy. >> literally this man was a donald trump in the early days. he was a millionaire in his 20s creating new cities. then he invented private tv. commercial tv in the 80s with dancing girls on saturday night and dallas and dynasty and coca-cola sponsorship. he pioneered a lot of commercial
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tv. his big move is playing upon the sentiment of italians making it into this award winning, trophy winning team and then of course in '94 he managed to go into politics and within 60 days in a textbook marketing manual he goes from announcing his candidacy to take over as prime minister. now he's a controversial figure and his political achievements were less than what he wanted. he wanted to do a reagan like revolution but his interesting achievements are on the international level. >> we'll come to those again in just a moment but just to belabor the first point. this idea that no pr is bad pr. that these different aspects of his life, did they help him in his political career or are they a big henderence.
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we turned his football chant into a political chant. no doubt that it helped him. no doubt that his control of 50% of the television and media outlets across italy which his critics said was an abuse of his monopoly position and he said was simply fair dues was one of the things that helped him but there's something more. there's a charisma and a larger than life aspect to this guy. he dominated italian life and shaped italy today more than anybody else since the age of musolini. >> i want to get to the controversy surrounding his private life and sexual escapades. what do you think of some of the controversy surrounding berlusconi. do we know what really happened?
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>> i think we have a good idea. at one point he turned to me and said would you like to see the room and do you have the courage? do you dare? and i said sure, lead on. >> what's in the room? >> it was a big dining room where he had these parties with a lot of girls. the critics version is that he was a sex maniac and he had women. his version is i had an orderly family life two marriages and i was single at the age of 75 and 76 in 2009. friends brought some girls in to party. there was no prostitution. there's a disconnect between what the courts charged him with even though the supreme court did acquit him on sex with an underage prostitute. >> just to get back but i find it interesting because donald trump is being labeled that of course with his comments on women in the u.s. primaries but from what i read in your
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biography he also dressed downhidow down hillary clinton. >> he tended to make remarks that didn't play too well in general. he calls them compliments. for example at one point he said that barrack obama was handsome, young, and had a year round tan. now people thought that was racist. and that was kind of a racist remark to our american or british ears. he said to me no it was a compliment because it would take me two months to get a tan like that. he's living in his own bubble in many ways. he's a strong leader and again there's the sexual side where he claims he did nothing wrong and his enemies and critics in the courts say he did and then there's the stuff with bush in iraq and i'd love to talk for a moment about what happened there with tony blair as well. >> go for that. some of the foreign policy comments were perhaps more accurate. >> tony blair made this
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semiapology a day or two ago about the iraq war and how it could have lead to isis. there's two things where he got it right. he went to bush and the book reveals the secret white house lunch in january 2003. stops off in london and sees blair. blair is busy announcing that there's proof of weapons of mass destruction and all of that which we now know is not true and he goes to the oval office and has lunch with bush and tells him, look, iraq cannot be a democracy. don't invade iraq. you can't bring democracy to iraq. it's a country with shias and sunis and it literilliteracy ra. he says the same thing about gadhafi. don't bring him down and bomb him. so some of the stuff he got right. >> thank you very much for joining us. we'll have to leave it there. we're out of time. very interesting discussion.
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let's have a quick look at the futures before we go to break and we're pointing for a slightly positive open on the wall street. we'll be back here on worldwide exchange in a couple of minutes. care of my heart. that's why i take meta. meta is clinically proven to help lower cholesterol. try meta today. and for a tasty heart healthy snack, try a meta health bar. you wouldn't order szechuan without checking the spice level. it really opens the passages.
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>> bp shares jump in london after the oil major beats estimates and unveils cost cuts. >> bullish or bearish or baba? the e-commerce giant looks to calm concerns it's shares are too rich as it forecasts a share jump in it's earnings. >> could am fall far from the tree? the stock closes in the red ahead of earnings for signs that iphone sales are slowing. >> right. let's bring you the u.k. preliminary third quarter gdp numbers. we got plus 0.5% on the quarter. plus 2.3% on the year. so both of those readings are just below expectations. we're expecting 0.6 and the previous was 0.7. we got 0.5 on the monthly figures. on the yearly figures we were
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expecting 2.4. the previous was 2.6. we've got 2.3%. we also got a little bit of u.k. monthly service sector which has come in at 0.0% month on month. it was expected to come in at 0.2%. so all three bits of this are a little bit softer than expected. we've got the u.s. -- the pound falling against the u.s. dollar as you can see down 0.2%. 1532 as we stand in trade today. so a little bit weaker than expected. 0.5% gdp coming in for the quarter. the third quarter. susan. >> okay. let's check in on u.s. futures ahead of the market open on this tuesday. it's a really busy day when it comes to earnings. checking in on the implied open after the s&p broke that two day winning streak. a mixed close yesterday because the dow and the s&p fell without performance from the nasdaq. checking in on the implied open
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we're above fair value. so the s&p should be higher by about a point. the dow jones industrials pricing in higher start of 54 points and the nasdaq looks like we're not going anywhere now. here's a look at the european side. the european markets and not much action today on this tuesday. not much of a lead for u.s. markets. the ftse mib seeing gains of a fifth and the german dax which has been a multiday winning streak. we're falling today by .10%. that could end and ftse 100 seeing declines of a quarter. today say huge day when it comes attorneyings state side. major names i don't have to tell you because you have been hearing a lot about it. that include also baba and ford that will report before the bell today and the tech titans t ones to watch out for. big one will be apple and apple comes out with a report card after the close along with twitter and then on wednesday we get mondelez and walgreens reporting before the bell.
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paypal and go pro will report afterward. we got coca-cola as well. interesting since the company announced a dividend and time warner cable will come out with numbers before the bell on thursday and later in the day we'll see if starbucks continues to get the people in liening up to buy the lattes and we'll be hearing from linked in as well. it's a busy day to see if a linked in continues to stem some losses it reported. on friday it's all about energy. chevron, exxon mobil and then we have abbvie as well. we have to catch our breath at some point this week. >> we are, indeed. although not quite yet susan because bp shares are trading higher after third quarter replacement cost profit. it's way of wagering net income came in at $1.8 billion ahead of analyst expectations. the london listed oil giant said it's cutting costs for the third time this year and will sell off more assets as it looks to boost
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profitability amid the slump in oil prices. shares up 1.6%. joining us in studio is the portfolio manager. chris, good morning to you. thank you for joining us. so an earnings surprise to the upside for these results and seemingly allowing them to maintain their dividend as well which is important. >> these results are clearly about putting shareholders first. they reiterated the dividend and the ability to pay it out to 2017 through a mixture of better efficiencies, cost savings and also cost cuts. they upped their cost cuts target today which i think is a very pleasing thing to see but also it's about making the business sustainable in the long-term. so this is an industry that because of $100 oil is being run by it's cost base for a decade. the boot is on the other foot now and shareholders are starting to see the benefits of these. in context the oil price is still down 50% year on year but in context these are good results. >> the capex for going through
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to 2017 is going to be closer to $19 billion now. that's a big reduction from the circa 25 billion a year ago but it's still a hefty sum. is that enough of a reduction in the current oil price environment? >> i think it is and i suspect that bp if you look at the current run rate will come in around the $19 billion mark this year if not slightly below. i'd also expect them to come in at the bottom end of that 17 to $19 billion capex range and that's a combinationover phasing of spend and also lots of cost efficiencies. the oil services industry is having to respond to lower prices. we're seeing that come through in the low input cost because this industry has to return money to shareholders and make it work at $60 oil. $60 oil is the scenario bp is laying out as being sustainable. >> this is a quarter that we're coming off of where they agreed to the $18.7 billion fine to u.s. regulators for the
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deepwater horizon oil spill. is all of that priced in in the stock? is that behind us for bp? >> it's almost behind us. this is a saga that's gone on for 5.5 years now and bp has done a pretty good job about sorting out this terrible accident and the liabilities that have stemmed from that. i think in context of their statement today talking about medium term gearing of around 20% which is where they are now they say to shareholders we can hold debt about where we are at the moment and with the on going payments -- >> these numbers are staggering though. $18.7 billion to settle the claims but also cost from deepwater horizon totaling nearly $54 billion. to me, these numbers are immense but it was obviously a huge accident. >> the issue with the $18 billion is sure it's a big headline but they managed to get the payment terms to say we'll pay this over a period of 15
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years and that's, i think important because it's about sharing the cost of the spill over a period of time. to be able to make them manageable and that's what the agreement between bp and the djy has lead to. it's an equitable sharing of the cost. >> chris, now you own bp. out of the u.k. oil majors is it your preferred name? >> we like bp because it's -- we think it's at the front end of the cost saving curve of the industry, if you like. if you look at these results there's plenty of evidence for that. if you compare 3 q today with 1q six months ago bp is making more profit per barrel yet oil prices are lower now than the first quarter of the year. there's a cost improvement in these numbers and that's impressive and one of the reasons why we own the shares. >> chris, thank you for joining us today. much appreciated. portfolio manager at alianz
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energy fund. >> it's been a market debut for italian poste. it's the biggest debut in more than a decade. let's get to claudia at the milan stock exchange. over to you. >> yes, good morning. i'm standing right in front of the stock exchange and this morning the ipo launched at 9:00. the italian postal service as you were saying poste italiane. one of italy's most well-known brands. this is part of the process of up to 12 billion euros. the company was valued at 9 billion euros. 8.8. the part that went on the market was the 32% of the group and the value of that is 3.34 billion that will go to help pay down debt for italy. now what happens from here, well, we spoke to the ceo.
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they need to work on profitability and on revenues. they listed as an integrated group so not only just the mail and parcel part but also the part of financial and insurance. so a lot of business out there for poste italiane in the future. it was a big day for europe's largest ipo this year. >> claudia, thank you so much. all right, u.s. tech leaders and u.s. leaders themselves, they have reached a tentative budget deal that would increase spending and cut social programs and raise the federal borrowing limit. nbc's tracie potts has more from the capital this morning. >> good morning. yeah, late last night, in fact, just a few hours ago before midnight we got word that house republicans had reached a deal with the white house that will prevent us from going into government shutdown mode at the beginning of december and even before that prevent the u.s. from a first ever historic
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default when we reach our debt limit at the beginning of november which is in just about a week and a half or so. now this is not a done deal at all. and for that reason some conservatives, particularly, aren't happy with it. they're skeptical. they want to see the details. a lot of lawmakers left that meeting late last night saying they didn't know how they were going to vote. they want to see the details. we would increase our borrowing limit through march 2017. that is going to be after the 2016 elections and the budget would expand for two years, $80 billion more in spending and there would be some medicare provider cuts as a result of trying to balance that. >> also swan song for john boehner as his tenure ends this week as well. tracy, thank you so much. now on a programming note, you know we're just one day away from the next republican presidential debate right here on cnbc and we'll be hosting
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that debate of course live from bolder, colorado. the event will be moderated by our very own team of expert panel lists. that includes john harwood, becky quick. i can't wait. >> it is going to be one not to miss. now the chinese government says it followed an american destroyer that the u.s. navy sent within 12 miles of chinese man made islands. it's the most assertive challenge by the united states of china's territorial claims in the region. china will residenpond to any countries deliberate provocations. >> we're going to go to break here but still to come on the program, it's a fiercely competitive industry but can the new boss of twitter turn around it's fate and persuade the investment trolls otherwise? we'll be discussing after this short break. 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.
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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!
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>> a busy week in the u.s. all eyes on twitter after the close. let's go to landon for a preview. >> hey there, good morning to you. it's a very busy day and with twitter analysts expect adjusted earnings per share of 5 cents and $560 million for the third quarter. investors are looking for signs of whether or not twitter can
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reignite user growth. shares falling 17% in the past three months and in august dipped below it's ipo price for the first time but a lot has changed since the company's last report in july including the launch of its new product moments. plans to cut 8% of the global work force and the appointment of jack dorsey as the permanent ceo. shares trended upward and in the past month gained about 14%. dorsey and his companies are under scrutiny right now. his other payments company square slipped into the red. the company says it lost $15.8 billion in the three months ending in september and while analysts believe hiring dorsey was a positive thing there's a lot of pressure on him at both of his companies and we'll get more insight when twitter reports after the close in it's first earnings report under dorsey. >> other earnings with u.s. auto maker ford expected to report
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today before the bell. wall street expecting ford to report earnings above estimates on the strength of the car makers. line-up of pick up trucks and car makers. sales hitting $35.5 billion. which is up from what they reported a year ago in the last 12 months. tune in later on tooz because we're going to have a conversation with ford cfo right here on cnbc. but let's get out to the gaming enclave. they rolled out the red carpet to celebrate the opening of melco crowns $3 billion casino studio city despite the recent decline in gaming revenues as china cracks down on corruption. let's get out to macau. emily is here. we're also expecting a celebrity studded gala in a few minutes.
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>> that's right. susan we're here in studio city just next to the red carpet at the beginning of it, in fact. and the vips and the celebrities just starting to trickle in. 600 invited vips are expected to walk through tonight and big hollywood a-list stars, brat pit, leo decaprio all expected to grace the red carpet just behind me. this is all for the $3.2 billion opening of studio city and the grand opening ceremony will take place at 7:30 p.m. local time and that's in about an hour and a half from now. now of course this casino resort boasts 250 new gaming tables. 1600 hotel rooms but the strategy, the focus is on entertainme entertainment. they have a batman ride. asia's highest ferris wheel as well as the warner brothers fun zone. of course they're opening at a
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weak time in the market where we see gaming revenues continue to decline. in fact for 16 consecutive months but they're not worried. this is what he had to say. >> we're experts in terms of opening in weak markets because i think the last time i saw you was when we opened city of dreams in june 2009. that was kind of the end of the global financial crisis. so i think a lot of our industry people are hoping that with studio city opening it's also the end of the downfall in the macau market. ultimately we built these properties for the next 10 or 20 years so no matter what market environment opens and it doesn't really matter we just want to ensure that it's the best possible opening. >> so they're continuing to be of course optimistic going into the opening today and we're going to be waiting here for the stars to come through. susan, 7:30 is the time for the grand opening. back to you. >> looking forward to it. thank you so much. >> right let's talk about
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another red carpet event. he is the spy that needs no introduction. bond, james bond was once again the star of the show on monday night at the world premiere of 007s latest outing spectre. the stars of the film gathered on the red carpet along side the duke and dutchess of cambridge and prince harry. it had rave reviews but has a tough act to follow after skyfall was the highest grossing film ever. >> you were there last night. >> i was. it's seen bond move away from the traditional nuisances of james bond films. it's been a more modern day action movie. it has nice story lines.
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the villain has been featured in a lot of bond films but it's still a modern craig era bond film with all that you would expect. >> let me show you the newspapers this morning. on virtually every newspaper it is the front page. >> it is. but it always garners this type of attention in the u.k. i don't know about everywhere else around the world. >> sifting through these newspapers a lot of these pictures and i was trying to find you. >> sadly, i don't quite make the front page. >> i said where's wilf. >> it is baffling. i agree. i'm not sure how. but the film, i have to say, spot on. there's great scenes in it. amazing car chase through rome. opening sequence in mexico city. it is as well a bit too long. it's nearly 2.5 hours. but it just flew by. >> i'm focused on monica. a 50-year-old bond girl.
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she looks spectacular. >> she nails it. she doesn't have a huge part but you come away thinking she was very impressive. oscar winner of course. >> what about all the product placement. >> there's definitely product placement. that has been sadly a trend of .380er bond film but they need to finance and they need a big budge and if that's the price you have to pay so be it but there is a little bit of some obvious, you know, swigging of certain beer brands and the like. >> does he order a vodka martini? >> i don't think he states it exactly. it's a great film. >> you probably look just as good as him. >> stop it. >> just as good. let's get to the headlines on this tuesday morning. white house and congressional leaders reach a proposed deal to raise the debt ceiling. twitters new ceo jack dorsey is
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in the spotlight as investors are hoping for signs of user growth. walmart takes on amazon as it begins testing drones for home delivery. looking for 24/7 digestive support? try align for a non-stop, sweet-treat-goodness hold-onto-your-tiara, kind-of-day. live 24/7 with 24/7 digestive support. try align, the undisputed #1 ge recommended probiotic.
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in our investment experience... ... around the world. call a t. rowe price investment specialist, or your advisor... ...and see how we can help you find global opportunity. t. rowe price. invest with confidence. >> it was a lackluster day of trade yesterday. it is shaping up for the same today. a slightly positive open. the s&p up 1 point and the dow up 50 points and the nasdaq up under 1 point. >> called above fair value this morning. a run down of what to watch for and we have durable goods orders at 8:30 a.m. eastern. it's a big, big week for earnings. major names include alibaba and ford today.
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apple and twitter reporting after the close. let's take a look at am since it was the biggest drag on the dow yesterday down 3% and dow in negative territory and apple has a lot to prove but will the expectations for apple prove to be too high? because during this period last year -- these are some really tough comps with am reporting the most profitable quarter of any u.s. company. not for my u.s. tech company but any u.s. company on record. analysts are forecasting revenues of over $51 billion which is the top end of the tech giant's own estimates but apple watchers will be also keeping a keen eye on the break down of the device sales because yes i know am iphones account for two-thirds but they have other stuff too. >> they do but all the focus at the moment is on the iphones. they account for 2-thirds of the revenue. due to the timing of the 6s launch comparisons to last year are slightly skewed but even some of the most bullish
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analysts raised concerns that am may be lining up for its first year on year drop in iphone sales. elsewhere they steadied after steep declines from 2013 to 2014. also of course we should mention the apple watch. which is some what of an inigma as the company will not disclose sales figures for the wearable device but tim cook is positive saying sales have exceeded expectations. that's what it comes down to. i don't think anyone expects to see this 35% sales growth year on year forever more for the iphone. question is what's priced in already. >> china really outperformed for them last quarter with the slow down on going and a lot of u.s. corporates complaining about their sales dwindling in china. what about apple? can they out perform? a lot of questions apple needs to answer. that comes later today. you'll have alibaba earnings to look at. that's all we have time for on worldwide exchange. >> u.s. squawk box up next.
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good morning, washington waking up with a budget deal. house republicans avert a shutdown and debt crisis with an agreement just before midnight. apple is on the way this afternoon. the world is about to find out how many iphones and ipads the tech giant sold last quarter and how china performed. and walmart turning to drones. the king of all retailers, for now, could have big plans in the skies over america. it's tuesday, october 27th. the day before the big debate, 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, welcome to squawk box here on cnbc. i'm andrew ross sorkin with joe kernen. becky is getting ready for tomorrow night's debate. we'll check out the venue during the next hour of squawk box. a lot of things to talk about this morning. alibaba, ford, cnbc parent comcast, we have pfizer, twitter and many more reporting today but the big focus of course will be on apple which reports after today's closing bell. investors want to know how many iphones the company sold last quarter. some analysts expecting them to come in between 40 and 49 million units up from 39 million units a year ago. the stock falling yesterday. the market cap is just under


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