tv Worldwide Exchange CNBC October 28, 2015 5:00am-6:01am EDT
good wednesday morning everybody. welcome to worldwide exchange. i'm susan lee. >> i'm wilfred frost. here are your headlines around the world. >> it's all about the tech earnings and not all about the beat though. apple and twitter sink on weak guidance while iphone and ipad shares meet estimates. >> jes staley is unveiled as the new ceo in a you turn away from retail banking focus. >> volkswagen reports the first quarterly loss in 15 years over
the mounting costs of its emission scandal. the shares are jumping as the german car maker keeps it's full year guidance. >> and the countdown is on to the third republican debate. cnbc hosts the candidates as donald trump and ben carson solidify their lead. >> busy week. a lot of earnings and the cnbc republican debate tonight. let's check in on futures and what they're telling us ahead of the market open. we have been down each and every day. the implied open is telling us we'll see a bit of recovery today. we're up some six points for the s&p. dow jones industrial is higher by 38.5 points and nasdaq in advance of 16 points or so. >> let's have a look at european markets. also positive as you can see to the tune of about three quarter of a percent for most of continental europe. we have france just below that.
germany at 0.7% of gains and ftse 100 at 0.3%. it's partly a little bit of a bounce back from a soft start to the week and also consumer confidence data out earlier today. >> apple beat the street with earnings per share of 1.$9. shares struggle to find direction in extended trade as ceo tim cook said there was no signs of a slow down in one of its biggest markets, china. but overall iphone and ipad sales came in just below expectations. now the other tech giant reporting was twitter and it had a tougher time in after hours trade. the stock sank 12% as the monthly active users grew by 3
million. like guidance weighed on the after hours share performance. julia has more. >> twitter shares plummeting after hours on guidance for the fourth quarter that disappointed wall street analyst expectations. the companies monthly active user growth also fell a bit short of projections. the company reporting 320 million users and that includes sms users who used the service solely via text. that 320 million number is just 4 million more than the prior quarter. twitter reporting earnings of 10 cents per share. that's twice what wall street expected while revenue grew 58% to $569 million ceo saying the focus shouldn't be on the company's core user base but also on the half a billion additional people that see tweets without ever logging in. he also said he's working to improve the product and grow it's user base. >> our focus is on three things. a more disciplined execution.
simplifying our services, and better communicating our value. we have made meaningful progress across all three. >> twitter now has over 100,000 advertisers saying the company identified small and media sized businesses for other potential advertisers and noted that video views have been exploding on twitter and offers strong return for investment on marketers with more potential growth ahead. >> twitter still not making money. losing $100 million. >> i would imagine that apple stood out to you. >> it was impressive earnings. they're showing that they can continue to grow their business. >> how impressive was china? doubling their sales? >> china is seriously impre
impressive. it's rare to have real success in china and apple's continuing performance there shows the strength of its brand. >> when we think about iphone shares going forward they are reaching saturation levels in terms of smartphone markets more generally so what is priced in for 2016 and 2017. so rather quarter by quarter can they beat again is the stock pricing in the current run rate to continue or is it expecting it to fall? >> it's not pricing in huge growth beyond that but it is on a continuation of the performance. that's the big question. can they sustain this wonderful business they have of hardware subscription where people slavishly go out and buy every 18 to 24 months they buy the next model of phone? . phones are two third of apple's
business and can they continue that is a big question. >> we're in an s year for the iphone. does that tend to be a goodyear for the stock price or a bad year? >> tends to be a bad year i think. results are disappointing and i felt that marketing over the last few months has been defensive on that that comes across the wrong way to me. >> the advertising campaign is everything is different really. >> it's just worrying from am. >> so let's talk about the mother of all comps. that's what tim cook said in an interview with the wall street journal, you know, we're going into the final quarter of the year and that's when you have the christmas sales. they sold 75 million iphones. >> but this year forecast growth is about 3% year on year for the upcoming quarter so they're trying to manage expectations and they should manage expectations so yeah that's not going to be an exceptional
quarter for them. they'll probably beat that. that's what they always do. they always beat. >> is it the analysts fault for setting the bar too low. we know how conservative they are for their guidance. >> they continue to surprise. >> let's touch on the content area rather than the hardware. apple music has been going now for a good few months. also apple tv coming out and content, potential plays there. is that what we're going to see from apple in two or three years time to come? is it going to be more subscription based than hardware based? >> i struggle with am as a content business. it's a success on content despite itself and not because of itself. the way the ecosystem works we have this wonderful hardware and let's do whatever we can to support that hardware in a closed ecosystem. the app store has been a good success. i personally struggle with whether music will survive. it's hard to do that if it's not your core focus as google has
shown and music as an after thought is tough. and tv i see more as a hardware play long-term. it will be the model of hardware supported by an ecosystem. >> we have to wrap that up but are you a buyer or seller of apple. >> i'd be a buyer of am. there's innovation to come. everything they're doing around tv and new hardware, they'll continue to surprise us. >> thank you. much appreciated. >> we're going to focus on banking. jes staley is the new chief executive of barclays. his appointment marks a you turn taking it back after retail banker anthony ben kins was ousted for the top job. he has a pay package which equates to 4.6 million pounds this year plus a potential 2.4 million pound bonus. he is certainly not short of
banking experience having spent 30 years at jp morgan where he climbed to the top of the investment bank and seen as a possible successor at jpm but he moved to blue mountain capital in 2013 founded by former jpm colleagues. so let's talk through this news this morning. carolyn joins us and here we have another american investment banker at the helm of barclays. >> absolutely. everyone has been talking about this big u-turn. i'm more skeptical about that. they do have huge investment banking operations but i'm not sure that under jes staley we're going to see a huge wrapping up of the operation but instead to make those investment banking operations that the bank has to make them more profitable. what we're see snoing now is th return on equity. so they're really struggling when compared to some of the u.s. rivals and they of course
want to compete with them on a quarterly basis. >> of course we'll get quarterly numbers tomorrow and they won't look all that pretty. a little bit better in terms of equities but overall a really tough environment. >> and staley was rumored to take this position. it's confirmed today. what are the other details new today? >> he has written a memo. he sent out a memo to his employees and we have a couple of statements for you. he says we will complete the necessary transformation and the repositioning of the investment bank to a less capital intensive model. so once again the investment bank doesn't mean it's going to be ramped up in terms of capital usage. they need to make it more profitable. also they say core to our objective is having a relationship with regulators that is one of collaboration and he also says he wants to
complete the culture transformation of the group. so his work is really cut out for him. >> and shrinkage of investment banks. that's the trend we've seen across a lot of the major banks. >> exactly. but they want to be one of the major investment banks of europe so i guess they're vying for that title. you have to wonder how big can a european investment bank be given that they are competing with the strength of the u.s. investment banks and environment is still tough in europe. >> we'll look forward to you in germany over the next couple of days. >> in less than 30 minutes we'll speak to the man that says that he's wrong for the top job. you want to join us when we speak to the conservative mp of the treasury select committee. >> volkswagen reported a third quarter loss of 3.4 billion euros. the scandal hit company
provision 6.7 billion euros for the diesel emissions scandal in the third quarter. mainly to cover service measures. however they kept full year guidance saying deliveries would match last year. nancy joins us around the set with more and the share price up 3.5% despite this loss. >> that's right. investors like what they see because the operating loss still came in line with forecasts and really key there was keeping the guidance for deliveries for the full year as they expect to be on par with the record number we saw last year with about 10.14 million units. that's good news. other things to keep in mind. i just got off the phone and he said investors like the cash position and the company still managing to generate a lot of cash and liquidity looks good as well. the volumargins are strong ther. audi was weaker than usual. came in around the 8% mark. that has a lot to do with shifting specifically. overall this is good news for
equity investors and bond holders as well and the new ceo has been on the job for four or five weeks now since the scandal broke and the fact that they had the time to evaluate what the costs will be involved with the actual recall of 8.1 million vehicles in europe and 500,000 in the u.s. and still only increase by about 200 million so this is seen as very good news but still a lot of questions to be answered on that investor call we're expecting at 11:30 local time. >> it's about 6.7 million euros so we're seeing a slight up tick there. that's tied to the recall themselves. it won't take into account the litigation charges. >> seems an optimistic number on the surface. >> bullish. >> we'll see once they get a better idea. >> the green bottle in the green. shares of heineken trading higher after strong sales in the americas and europe drove revenue and beer volume growth
in the third quarter. revenues jumped some 8% in the third quarter ahead of analyst estimates and maintained revenue growth forecasts as well. >> stat oil managed to reduce costs and narrow it's losses in the third quarter but missed analyst expectations. the oil giant is cutting it's 2015 capital expenditure by further $1 billion as it continues to battle with the lower oil price but speaking first on cnbc the statoil ceo said investors don't need to worry about the companies dividend. >> our dividend policy remains very firm. it's something we're very much committed to. >> royal dutch shell will halt production of its 80,000 barrel a day project in canada. this is because of the lack of
infrastructure to move the crude to market. the ceo added that shell is having to manage cost due to low oil prices forcing the company to make tough decisions. shares of shell if we can bring them up, trading up some .5%. still to come on worldwide exchange, as the gop presidential front runners prepare to square off in tonight's cnbc debate we'll go out to bolder colorado to see who may have the upper hand after this short break. i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do.
>> twitter shares are slumping on disappointing revenue guidance. barclays appoints jes staley as the new ceo. walgreens buying up rite aid in a $17 billion cash deal. >> the third republican primary debate gets underway tonight on cnbc when the top candidates face-off at the university of colorado. multiple polls have ben carson currently leading among likely iowa republican voters. the latest poll showed the retired neurologist has seized a four point lead on donald trump. 26 to 22 while no other
candidates are even polling in double digits. not even the likes of marco rubio or jeb bush who remain the favorite in terms of the betting market. now we have more from colorado. >> we're hours away from the big republican presidential primary debate here at the university of colorado in bolder, colorado. the big problem facing all ten of these republican candidates who are going to be on the big stage tonight before a national audience is just how unhappy american voters are with the choices they have for president. this is a problem for democratic candidates and republican candidates alike. this is the first time we have seen the numbers so upside down. voters unsatisfied with each candidate more than they're satisfied with that candidate. that's the flip side of what every winning presidential candidate has had since 1996. take a look at the numbers and you get a sense of how it works. bernie sanders, 43%.
those who are pessimistic or uncertain, 50%. he is underwater by 7 points. ben carson, a similar picture. optimistic and satisfied 42%. uncertain and pessimistic 50%. hillary clinton 43% to 56%. she is much deeper under water at 13%. it's the same picture for all of the other candidates in this race. that's a sign of voter frustration here. what is that driving? driving the rise of these outcider candidates on the republican side. donald trump and retired neurosurgeon ben carson just within the past 24 hours or so. we've seen a new poll out from new york times and cbs which puts ben carson in the national lead. ben carson 26. donald trump 22%. that's within the particular poll. it's the first time we've seen
him start to slide out of the number one position in months and that may indicate, just one data point but may indicate that we're starting to see the horse race shift here going into the cnbc debate. all is to play for here as they say in soccer tonight at the debate and we'll be watching to see how this all plays out. >> i'm looking forward to it. should be great. we're going to go to break here on the program. we'll head to china after this and volkswagen ceo will be briefing angela merkel during the german delicates trip to china. we'll get a view from beijing. that comes your way next. we've got trouble in tummy town.
cme group: how the world advances. welcome back. the move in bonds was much more pronounced and has been maintained. you can see the german ten year bond yield 0.45%. so significant yield compression there. the likes of the italian bond market also seeing similar moves 1.43 and the shorter end of the curve really highlights it. negative yields on the two year bund yield minus 0.338%. >> such a busy day.
we also have a fed decision as well after their two day policy meeting later on today and in china, angela merkel is beginning a trip to china in a visit visit expected to focus on trade. people shouldn't forget germany is china's largest trading partner in the u. >> that's right. this is going to be her 8th time to china. she will be here tonight and be here on a two day visit where she will be leading with chinese leaders and promoting business. she'll be traveling with a high profile delegation including the ceo of vw expected to brief her on the emissions scandal. also she is going to be traveling with organizations expected to make announcements here as well. what's interesting is that the trip has been described as an emergency visit unlike say some
of the visits from high level u.k. officials and one of the reasons why is because of all the problems of vw as well as the general slow down that we're seeing among cars, especially with with german cars after this whole scandal had hit vw. >> eunice, what status is it getting on the ground in china relative to the uk and u.s. visits in recent months? >> it's getting a lot of attention but not at the same level that we saw when the chinese president was visiting the u.k. and there's definitely a sense that there's a competition going on among the eu nations for chinese investment and money for the uk. they were able to clench several tens of pbillions of dollars worth of deals. but this german visit isn't expected to result in the same
size or scale of deals but certainly many people here are hoping that it's going to result in some german technology helping to revive some of the older factories here since high-tech is such a specialty of the germans. >> eunice, thank you very much for that. >> now, do you want to learn about china's economy? how about a sing song? they released a catchy propaganda song that explains beijing's five year plan. [ male announcer ] whether it takes 200,000 parts,
>> it's all about the tech earnings. apple and twitter earnings topping forecasts but shares sink on weak guidance while iphone and ipad sales miss estimates. >> back to the future for barclays. former jp morgan investment banker jes staley is unveiled as the new ceo in a u-turn away from the recent retail banking focus. >> a mega merger in medicine.
walgreens is buying rite aid in a $17 billion deal. >> and the countdown is own for a third republican debate. cnbc hosts the candidates as donald trump and ben carson solidify their lead. >> it's a very busy day since we have that republican debate. also the fomc ends their policy meeting. right now we're looking at a higher implied open above fair value. the s&p 500 called five points higher. dow jones industrials should be up by 37 points and the nasdaq look like we're prices in gains of 16.5. >> right. the third republican primary debate gets underway tonight when the top ten polling
candidates face-off at the university of colorado. now ult m polls have ben carson leading among likely iowa republican voters. the latest new york times poll shows the new york times neurologist seized a four point lead on donald trump. 26-22 while no other candidates are polling in double digits. support quadrupled since august. >> but both the gop front runners have gotten a lot of attention for their controversial comments throughout the campaign. trump kicked off his bid with an aggressive stance against illegal immigration saying that immigrants, quote, they're bringing drug or bringing crime. they're rapist and some i assume are good people. he has also come under fire for comments deemed to be sexist about carly fiornia and megan kelly. what about ben carson? he has taken heat for his support of the 2nd amendment
saying quote i think the likelihood of hitler being able to accomplish his goals would have been greatly diminish first degree the people had been armed. and as a doctor i spent many a night pulling bullets out of bodies but i never saw a body with bullet holes that was more devastating than taking the right to arm ourselves away. so both have very controversial views. should be breasting. we could be seeing some fireworks tonight. let's head over to bolder where the debate is taking place and l leann joins us. >> susan and wilfred the final preparations are underway here. and also on the main stage where the debate will take place later today. all eyes will be on the front runners, trump and carson and a measure of whether carson will be able to capitalize on the momentum he received yesterday when it was revealed that for the first time in months a national poll does show that
trump is no longer in the lead edging out carson who like trump is a political navis. of course a lot of other people are hoping they will make their mark and a move forward in this crowded field of contestants. it's an economic debate. issues include questions about job growth and retirement and the overall health of the u.s. economy. those three political outciders that will participate in the debate is trump, carson and carly fiorina are expected to argue their private sector experience will make them better qualified to handle the economy. the other seven candidates are former office holders and they of course will argue their experience in government will make them better suited for the presidency. all eyes watching this debate tonight. much anticipated. millions of viewers. it's expected to last 2.5 hours including commercials.
susan, wilfred, that's the latest from bolder. >> thank you. we'll have to leave it there. very much looking forward to the debate. leanne gregg from nbc news from boulder, colorado. >> we're hours away from the debate. the event will be moderated by our u.s. colleagues. john harwood, becky quick and carl will be firing the questions later on tonight. >> now jes staley has been appointed new chief executive of barclays. his appointment marks a u-turn for the london listed bank after retail banker was ousted earlier this year. he has a pay package that equates to 4.6 million pounds this year plus a 2.4 million pound bonus. he is not short of banking experience having spent 30 years
at jp morgan. he was seen as a possible successor to jamie dimon but he moved to hedge fund blue mountain capital in 2014 which was founded by former jp morgan colleagues. joining us on the phone is mark garnier. he's a member of the treasury committee. good morning to you. thank you for joining us. this appointed like barclays are moving back to investment banking focus. what do you make of labels like that? do you think that is the case and is it a welcome one in your eyes? >> it will be difficult for barclays. clearly we still have very much an atmosphere in the u.k. that the banks are responsible for bringing down the financial system. he came out labeling investment banks as casino banks. they are a brand which is still very damaged at the moment. anthony jenkins was very much
seen in parliament and in the community of being somebody that's going to reverse that damage and i think that what will be perceived by this appointment is a move back to the old style. the bob dimon type of style and he'll have a challenge trying to convince people that he will be focussing on getting the brand right but also secondly making sure that the focus is still on the retail customers. at the end of the day sits retail customers that feel vulnerable. >> did his tenure not highlight perhaps that it's pretty tricky for a retail banker to run an investment bank where as the other way around might not be the case? >> of course we saw other people involved in marketing running banks and he didn't get it right either. i mean, i think that as i say a lot of it is to do with perception and how you run the teams around you. i don't think anybody would disagree that staley has an
incredible amount of experience and wealth of knowledge and that has to be a good thing for any organization but i think sit to do with the messaging that they're putting out to the wider public. when anthony jenkins was let go a few months ago john mcfarland came on to the radio and said he wasn't doing enough in terms of using the balance sheet so get good returns for shareholders but i think there has to be a balance with all of these things with what is clearly good expertise and he brings this wealth of knowledge to barclays but is it going to help rebuild that barclays and wider banking brand? he'll have very difficult questions to answer. >> tough banking environment.
does this have anything to do with jes staley being an american running a british bank? >> personally i don't think so. i spent 27 years as an investment bank as a hedge fund manager before i came to parliament and i recognize the wealth of knowledge there is around the world and i think from london's point of view it's incredibly good news that we're getting the world's top bankers wanting to come and work in london. we have a global brand here in london. we are a global financial center and we need to have the world's best people working here. the british immediamedia can be and parliament can be tough. it's the fact that he's an investment banker and hedge fund manager. he's better than i ever was. >> mark as you say, the press can be tough. the u.k. parliament can be tough. so much so that hsbc one of a number of banks to threaten to move their headquaters away, hong kong, the potential place
for them. they have moved this week their options trading business there. does that concern you? do you think it's a threat that they'll consider moving the headquater there is? what can they do to make sure that doesn't happen? >> one of the issues with a bank like hsbc and standard chartered as well is they were being effected by the bank levey on global earnings and also the global balance sheet and that has come down from 23 basis points to 10 basis points and replaced with a bank corporation tax surcharge levied on just the u.k. earnings. that i think has, if you like, put the debate about whether hsbc will move back to asia on the back burner. hsbc has a lot of problems. one of the big problems is we were looking at the possibility
of the moving to singapore and exploring their options. if they move to inc. pore their balance sheet would be 1,200% the size of gdp and at the end of the day would they want a bank like that with such a huge balance sheet and secondly would of course people want to work with a bank that doesn't have the same gdp behind it so there are a number of issues. one thing i'm aware of is the fact that you're having international banks coming to the u.k. they are -- or to europe rather, they are possibly not going into london now. and i think we do have to be careful about the extent to which we chastise banks. >> okay. mark. thank you for joining us today. much appreciated. mp and member of the treasury select committee. going to bring you flashes coming out of chrysler.
it will recall over 60,000 cars due to engine component glitches. 60,000 cars chrysler is due to recall. >> also coming off gm's recall this week of 1.5 million vehicles on fire concerns. all right let's get to the fall classic and we have some sports to update you on. kansas city first baseman driving in escobar with a sacrifice fly on the bottom of the 14th inning. we had to go to extra innings to decide this and the royals squeaked by the mets 5-4 in the longest game one in world series history. more than 5 hours earlier escobar started with an inside the park home run off matt harvey's first pitch of the game. royals left fielder, he launched a clutch home run in the bottom of the 9th to tie the game and hence we had to go into extra
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drugstore ga drugstore chains in a deal for $17.2 billion including debt. many companies looked to cut costs in recent years. walgreens expects more than 1 beside from the deal. net sales in fiscal 2014 accounting for 20% of the retail prescription drug market. rite aid had 18.1 beside in fiscal 2015. combined they'll have a presence of 1300 stores across the u.s. rite aid stores will operate under the same name as a subsidiary. shares of rite aid soared more than 40% after the announcement. the company expect the deal to close by the second half of next year but the deal is subject to regulatory approval. >> thank you. >> aerospace giant won an intense competition to build a
new u.s. fleet of bombers. they were elected to build them for $21.4 billion. the contract could be worth $80 billion and provide 100 planes in total. the first aircraft are due to enter around 2025. they're up 6.3%. >> ibm is nearing an agreement to acquire the digital and data assets of weather co. the owner of the weather channel. the deal could be announced as early as today according to reports. weather co. is owned by blackstone group and comcast nbc universal. >> in hot pursuit, at least three big chinese companies are competing to win beijing's approval to bid for starwood hotel and resorts worldwide according to the wall street journal and this could also set the stage for the largest ever
chinese takeover of a u.s. company. >> right. the third republican primary debate gets underway tonight on cnbc when the top ten polling candidates face-off from the university of colorado. multiple polls have ben carson currently leading among likely iowa republican voters. the latest cbs new york times poll shows he has seized a four point lead on donald trump while no other candidates are even polling in double digits. 26 to 22 the latest poll. joining us is the u.s. political analyst at ihs. thank you for joining us. is the focus going to be purely on carson and trump? hugely they've got when we look at that poll, interestingly it's still rubio and bush in the lead. >> that's because those are the two establishment candidates. they're going to take precedence of where people think this thing is naturally going to lead.
as soon as the public starts to concentrate on the race. but right now they're in double digits. they're leading in the polls and looking good. >> is this a chance, this debate for the likes of trump and carson to get away from mud slinging and negative where is the topics, where most of that is focused on has been things like immigration and foreign policy. this is now economics. do they have to be more factual this time. >> i don't think so. >> i tried. >> understand u.s. politics. >> i don't think it's in the personality of donald trump's psyche for him to lay back on these things. he'll go negative. people will go negative against him as well. it's in the nature of this type of debate. the focus will be on the economy but i expect blows to come out and really for them to punch pretty hard. >> that's what i'm expecting too especially as trump is now behind ben carson in the polls but who needs a great performance. last time carly fiorina had a break out performance but
slipped since the debate. >> she needs another great performance. it's phenomenal. she went from like number 7 or 11 and then she was number 2 and now she's number 5 or 6 again. so she needs a great one as well. >> jeb bush needs one. >> more than anybody. >> rubio is actually a guy as long as he holds his own he should be okay. he's trending upwards in the polls and looking descent. people like christie, he needs a great one. kasich. so there's a lot of folks that need to put it together. jeb bush needs to start putting it together. people are starting to leave his campaign in droves. he's cutting campaign staff and cutting their salaries as well which isn't a positive thing. >> john, thank you so much. u.s. political analyst. >> we'll go to break but let's remind you of the headlines. twitter shares slump after hours on disappointing revenue guidance. barclays appoints jes staley as the new ceo and walgreens buys
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i can help with that too. watson, i like you. apple beat the street with earning per share of $1.9 billion and $51.5 billion of revenue in total. shares focus to find direction as ceo tim cook said there was no signs of slow down in one of the biggest markets, china. but overall iphone and ipad sales came in below expectations. >> also twitter shares slumping 13% at one point in after hours on light revenue guidance for the fourth quarter. analysts say this could be onslowing monthly active users that grew by just $3 million last period and that was way below forecasts. let's stay with social media and mark zuckerberg was in china
speaking in chinese and now he is in india and he's been tagged paying a trip to the country to try to strengthen business tie with the asian nation. don't forget, in september the prime minister visited facebook hq. he'll be holding a town hall in india later today. joining us in our studio, on the program, josh march, good to see you today. >> hi. >> now you're a great authority to be talking about social media because your company is like a software company that really manages the flow of information from twitter from facebook, et cetera, for a lot of these corporates. in fact, you were just at the twitter flight conference in san francisco with jack dorsey. how concerned is he with user growth? >> he recognizes this someone of the most important missions for
him is helping change this. they already made a number of changes. things like twitter moments. starting to move much more quickly in figuring out how to widen the appeal of twitter. it's the core thing. twitter is already very powerful but it's how can you widen the appeal. >> and your company helps various brands and companies manage their interactions across platforms. >> we work with a lot of platforms. the biggest values are facebook and twitter. we look with companies from retailers like tesco and technology companies like google or hertz and it varies for all of them but twitter and facebook are still the primary channels. what's exciting is that both of those channels recognize that consumer interactions and customer service are core use cases. i was at the conference last
week, jack dorsey himself spoke a lot about the importance of customer service through twitter and part of their strategy is really trying to make these platforms the main way that humans and people interact with businesses, right? they see the potential on facebook as well for e-mail and live chat to go away and if you have a question or issue for any company the first place you turn is twitter or in facebook's case facebook messenger on your smartphone. >> you just raised $11 million in your latest round of funding? did that come from twitter. >> no, but we're growing very quickly and investors really recognize the huge potential of social networks to become major channels. >> okay. good to see you. josh march. >> that's all we have time for today here on worldwide exchange. thank you for watching. >> coming up next, u.s. squawk box.
apple sales and profits soaring. worries about china put a on that story. the stock one of today's big losers and a prescription for a deal. walgreens buying rite aid creating 18,000 stores around the world. it's october 28th, 2015, squawk box begins right now. >> live from new york where business never sleeps, this is squawk box.
>> none of us ever sleep. we work 24 hours a day. good morning, welcome to squawk box on cnbc. where are joe and becky? getting ready for the big cnbc republican debate tonight. coverage starts at 5:00 p.m. eastern time. it's going to be great. plenty of last minute preparations being made as our crew gets ready if boulder, colorado and adding to the drama, donald trump slipping into 2nd place with ben carson taking the top spot nationally and in iowa. so the stage is set. tune into the fireworks at 5:00 a.m. eastern time. we might say that a few times during the show. 5:00 p.m. eastern time. >> you think. >> or log on to cnbc.com if you're not near a television. >> before we go any further with the fed or am or the big drugstore deal today we do have to mention the world series. chaos during the fall classic between the kansas city royals and th