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tv   Worldwide Exchange  CNBC  November 4, 2015 5:00am-6:01am EST

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>> here are your headlines today t. winning streak continues. wall street marching toward all time highs again with energy stocks leading the way on a big jump in oil prices. europe is following suit. tesla shifts up a gear lifting it's delivery outlook for the fourth quarter. the stock rallies 9% in after hours and also helped by higher margins. vw and porsche shares are hitting the skids as a new emissions scandal effects
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800,000 cars in europe and looks set to cost another 2 billion euros and here's a discount for you. groupon shares are plunging 25%. this is after the ceo steps down and the deals website issues guidance well below forecasts. >> midweek in the markets everybody. we're looking at the highest close for did dow and also the s&p since july this year. checking in on the implied open, futures are telling us we're above fair value. pricing in gains of 34. should be looking at gains of 10 points. here's the close from yesterday. we closed off the session high. higher at the end of it all and at the highest since july this
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year. two high profile investors are raising the flag over the federal reserve chief money policies. >> it's going to be real problems. we're walking into a mine field of what's going on with the fed. i think we have problems. >> this is not some permanent boost you've got. your borrowing from the future and there's been such a misallocation of resources because this has gone on so long and so unnecessarily the chickens will come home to roost. >> promoting the release of his new book, republican presidential candidate donald trump accusing the fed of not raising rates for political reasons. >> they are not raising them because obama has asked them not to raise them. in my opinion, he wants to get out of office because we are in a bubble and when those rates are raised a lot of bad things are going to happen or potentially going to happen and in my opinion janet yellen is
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highly political and she is not raising rates for a very specific reason because obama told her not to because he wants to be out playing golf in a year from now and he wants to be doing other things and doesn't want to see a big bubble burst during his administration. let's go straight to washington d.c. tracie potts joins us now. this has been a hot button contentious republican political issue. not only donald trump. we have heard this from rand paul and ted cruz. >> right. their argument is that the fed is artificially keeping these rates low when given the economy and the growth that we've seen it would make more sense at this point to raise rates. of course that could have some immediate implications for people trying to get loans. it could be quite a challenge for the middle class. people trying to buy cars and pay for college educations but donald trump and as you noted, some others, say this is where the economy is right now.
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the rates need to go up. the fed and fed chair janet yellen have said no and they're accusing them of being very political and bowing to pressure from the obama administration to keep the rates low. the response from the white house, of course not said the white house spokesman. they are independent and go to great lengths to make sure that they can do not necessarily what the white house is telling them. >> a quick question but if the vote took place today it's neck and neck with ben carson and hillary clinton. >> exactly. 47% each and he is the only republican that even comes close to beating hillary clinton. possibly with one exception. marco rubio is about 3 points behind. that's within the margin of error but donald trump a fallen front runner now. in the latest polls is way behind. 8% behind hillary clinton.
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>> thank you so much. let's get to earnings and after the bell, tesla reported 3rd quarter loss which is the biggest for tesla in ten quarters and is on costs relating back to the launch of its model x. it's cross over back in september. however investors are cheering tesla's promise to ramp up production in the future following the strong roll out of the model x. tesla is also naming a new cfo. the former google finance executive jason wheeler is stepping in. jumping some 9% in after hours. also trades in germany as well. so we're up close to similar levels, up from close to 7%. staying with transport and autos, volkswagen and porsche shares are back into the red today. being heavily sold down. for the first time, now petrol cars have been dragged into the scandal. announcing 800,000 vehicles have been effected by another problem involving carbon dioxide
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emissions this time. and this could lead up to a 2 billion euro charge for volkswagen. the issue is another headache of course for volkswagen. it adds to the on going defeat device investigation which involves up to 11 million vehicles. it was made by an internal probe. it doesn't specify which models. now separately, vw recalling certain cars in the u.s. and canada now according to a reuters report citing an internal memo. the issue could reduce engine and brake power with the car maker telling dealers not to sell any more vehicles currently in inventory. let's talk through the vw issues. joining us on the line, nancy has the latest. so it's really concerning because now it deals with carbon dioxide emissions and not just
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nitrisoxide. >> and it gets at the heart of the problem which people speculated all along which is the device is really just the beginning here and more and more revelations could be coming out and the difference here being with the co2 emissions is this doesn't even come down to a defeat device. this is a discrepancy in the level reported. so this gets back to the problem of why the false statements here and questions of management and reporting will be brought up in this case and this is a preliminary estimate. volkswagen saying they will get in touch to start a dialogue on what the penalties could look like and in this case as opposed to the 6.7 billion we saw set aside previously was largely due to estimates of what a recall would cost and it's believed that this 2 billion euros is
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really more tied to potential penalties and fines but this comes just a day after the epa in the united states said they weren't investigating on 10,000 cars on higher end edges as well. this case seems to be grow big the day and investors want more answers from volkswagen. >> thank you so much. >> let's give you a rundown of what to watch for. the private report due out eastern time. that comes ahead of the nonfarms payrolls data set to be released. versus 200,000 that we saw in september now at 8:30 a.m. we're going to get the september trade deficit figures and the ism services index comes your way at 10:00 a.m. janet yellen testifying today before the house financial
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services committee that testimony begins at 10:00 a.m. it will be on regulation and bank supervision. we'll also be hearing today from bill dudly. patrick harker and fisher. 21st century fox, time warner, michael kors all with results before the open. the big one, facebook and qualcomm come out with numbers after the close. still to come on the program, we're going to take a breather here on worldwide exchange but groupon grilled in after hours as they discount the 2016 forecast. we'll bring you the details after this break.
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good wednesday morning. here are your headlines today. u.s. futures are suggesting a positive start to the session and the positive start in november to continue. this is after the nasdaq 100 closed at a record high during yesterday's session. the plot chickens at vw as petrol cars are being dragged into the scandal for the very first time and it's a tough deal at groupon with shares plummeting in after hours in a weak forecast for 2016.
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okay. let's stay with commerce. target has gone global with the u.s. retailer teaming up to launch an international website to attract shoppers in europe and in asia. the launch opens up target's products to consumers in over 200 new markets ahead of the all important holiday shopping season. joining us in london today, she is stopping by, the president of global e-commerce. good to see you today. great timing. a assume that's just in time for the black friday and the thanking giving holiday. >> absolutely. big holiday coming up. >> what does this mean? teaming up with a company like target. amazon just opened a bricks and mortar shop just the other day. >> we see a lot of exciting opportunity for our clients going global. target is one great example. it opens up their great assortment to consumers around the world and will be an exciting time for them over the holiday season. >> being an international
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shopper, the one complaint i have is sometimes when you're overseas you don't get the deals you see on the north american website. are you saying thatly get the same deal as someone in minnesota? >> depends on the retailer. they run different promotion internationally and the shipping fees are different. so it's those types of promotions that are different but as we gear up for this holiday season we see a lot of retailers thinking about flat rate or free shipping offers globally. so you'll see a lot of those coming out. >> duty and tax free. that's a lot of music to some shoppers ears. i'm just wondering, do you see the potential, bigger potential in europe or asia now that has a growing consumer middle class? >> a lot of growth around the world. china is growing for our retailers. we're coming up on singles day so that's a big holiday in china obviously and is becoming a global holiday.
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>> traditional shops like walmart and target had a tough time recently with the traditional way of retailing. it seems like everything is going online now. do you feel a company like target that's been in business so long, this is a little too little too late for them? >> e-commerce is growing so much and in particular cross border it's opening up. even today only about a third of retailers are opening cross border opportunities to consumers around the world. there's plenty of time left and opportunity in the market. >> what about data privacy and protecting my credit card information and all the like? now that you're getting to a bigger international arena, i assume that you would need to toughen up and beef you have security a lot more. >> we spend a lot of time thinking about privacy and making sure that we're keeping track of that and also the regulations different country by country. >> they're different country by country. >> privacy rules. >> there's more stringent or less stringent? >> more stringent in europe and
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asia period. >> than in the u.s.? >> yes. >> that's interesting. thanks for making time for us today. all right. president of global e-commerce. now staying with shopping and groupon logged lower than expected third quarter revenue as the daily deal site was hurt by lackluster sales in north america and lower overseas. the company is issuing a weak guidance for the fourth quarter and in 2016. groupon says it's co-founder is now stepping down and he'll be returning to the role of chairman instead. he is being replaced by the company coo. shares getting hammered in after hours down some 25% and as you see over in german trade we were lower by close to 25%. recovering a bit. 22.5% down. etsy with a wider third quarter loss and warns that profit margins could be shrinking in the 40 quarter. the online seller saw revenue
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rise some 38% but that was down from 44% in the second quarter. etsy says the number of active sellers rose 19%. buyers were up 25% but the company is facing fresh competition from amazon which launched a competing website called handmade just last month. fell 7% after hours and going in the opposite direction we're rallying quite significant today in german trade up close to 5%. all right. still to come on the program, i'm real excited for this because you should be hyper excited over the hyperloop. elon musk's concept for a high speed rail system may be getting closer to reality. we're speaking to the ceo live from the dublin web summit. that comes your way next. opportunities aren't always obvious.
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sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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voters in san francisco rejected a proposal that would have limited airbnb rentals in it's city. they spent more than $8 million to defeat the measure with an advertising blitz across the city. proposition f would have restricted home rentals to 75 nights a year and then require airbnb and other sites to pull
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listings that exceeded that limit. >> remember back in 2013 elon musk group unveiled plans for a high speed transport system called the hyperloop. reports suggest that work on a test track could start before the new year. spacex invited independent engineers to submit their design proposals for the hyperloop pod and the deadline is on november 13th. so let's get straight back. we're going to the web summit in dublin. i'm so excited by this interview because it gets you from new york to l.a. in 45 minutes. >> susan, you'll be even more excited if there's an alternative to getting around. we all want to go places quicker and we all want it being delivered these days. a whole bunch of companies are
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having a go at disrupting from drones to space travel and of course this futuristic style train transport system that we're talking about. joining me here live at web summit is the ceo of hyperloop. nice to see you. >> nice to be here. >> i'm sure you get asked here all the time. what is hyperloop and how it works. >> sure. if you imagine we create a closed environment, low pressure environment inside a tube and build that point to point between cities or between a port and airport and reduce the pressure to 160,000 feet above the earth's surface. it creates a much more controlled environment. not subject to weather and in r sbrepgss we have today. then you have a pod. that pod could be moved quickly using an electric motor that shoots it along.
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it's levitated off the rail. and then you remove all the pressure from the front of that pod to ensure that you can move very very quickly. the result of all of this as a system is you can move people and goods in excess of 700 miles an hour. you can move them on demand. coming here was an experience as we flew from los angeles to the beautiful airport of heathrow. it would be more on demand and you'd arrive much more quickly and we could transform how we see ourselves moving goods and freight around the world today. >> for those that followed your company eagerly they're aware that elon musk was involved in publicizing the idea but farmed it out to others to run with. how much interest has there been in the technology? >> fantastic and the progress has been more impressive.
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our company was founded by a well-known venture capitalist and entrepreneur and a fantastic engineering mind. he spent ten years studying at the university of elon musk at spacex designing many of the key components of the rockets that have gone to space and that company since being founded has raised a significant amount of capital. we built a great team. we're guided by a board of directors that is a dream team of advise source and individuals that have made contributions in technology, in government policy that is exceptional and the interest that we see coming in from around the world about the applications of hyperloop is just astounding. so there's a global movement that seems to be happening that says we want something different and we believe hyperloop can be part of the solution in the future. >> you're a 17 year veteran of cisco. now you're with a company pursuing innovation.
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you have a whole bunch of billionaire investors. how different of a company is it because of that? >> the thing that struck me after all the years at cisco, building the internet, a network of connected pipes for the digital world is that this company is moving so quickly. it's astounding what we accomplish in days and as weeks go by we make increasingly significant progress. as we turn the corner to the last part of the year we'll be completing our next round of funding. as we get ready in january we're starting the first of the tests of our propulsion testing that will be in an outdoor environment. so without the reduced pressure we'll be moving our first test system 400 miles per hour and all of that comes together in 2016 as we move our own kitty hawk moment in moving this at 700 miles per hour for a couple of miles. >> this is the two mile test track. it's on course for launch next year.
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>> it's on course an your question about progress is something that's incredible. the team assembled, brilliant minds from disciplines across the world in some of the leading companies, they're builders. so when you see our campus, a three acre campus in downtown los angeles, there's people building stuff. they're testing. they're taking theory. they build a simulator and go into production. that's the new development model for hardware that our company is a lying to make this project happen. >> can i ask you very very quickly about regulation? it seems there's a massive headwind in terms of moving people quickly across the world versus moving cargo. what do you think is more likely to get up and running first? people or cargo? >> i think the regulations for both will be different by country and here's the way we look at it. we can actually see areas of the world that can clearly understand the economic advantage of hyperloop. they can see how labor markets could change.
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how economic efficiency could be driven and we expect that very top level support for hyperloop will emerge and having that emerge in the first place is to build the first hyperloop is one of our key focus areas. >> great to talk to you here at web summit. the ceo of hyperloop technologies. let me toss it back to the studio. >> amazing concept. still to come on the program, it's an elon musk day. we'll check in on shares of tesla soaring despite the loss in more than two years. we'll break down the numbers after this as we check in on the u.s. futures. ♪ there are no medals won for earning a living.
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it's just what you do for family. but it's hard to build a future if you can't see past today. that's why walmart is investing in the most important part of our company - our people. because a raise in pay, raises us all. ♪
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hi, everyone. good wednesday morning. welcome to worldwide exchange. i'm susan li. the winning streak continues with wall street marching toward all time highs and energy stocks are leading the way on a big jump in oil prices. europe following suit. tesla shifts up a gear. the stock rallied some 9% in after hours. also helped by higher margins. vw and porsche shares are hitting the skids as a new scandal effects 800,000 vehicles in europe and looks set to cost
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another 2 billion euros and here's a discount. groupon shares plunge 25% after the ceo steps down and a deals website issues guidance well below forecast. >> good wednesday morning. if you're just tuning in, thank you for sharing your time with us on the program today. here's how markets are fairing ahead of the u.s. open. we do have the dow and the s&p back up to july highs. the implied open is telling us we're a little bit above fair value today. the s&p should be opening maybe up one point but we're flat at this point. the dow jones industrial pricing in gains of 20 points and the nasdaq looking and pricing in an advance of 8 or so. here's a lead from europe today. europe isn't seeing much. it's probably reacting to the wall street session we saw yesterday when we had gains for both the s&p 500 and the dow. so we're looking at advance for
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the ftse 100 up 1%. the german dax being weighed by vw shares being sold off so we're lower by .10%. ftse mib seeing gains of .8. vw and porsche shares back into the red. as you can see the declines we're seeing for the dax benchmark and for the first time petrol cars are being dragged into this scandal. it was mostly diesel engines. 800,000 vehicles have been effected by another problem. this time involving carbon dioxide emissions. and this could lead to a 2 billion euro charge for the car maker. the issue is in addition to the on going defeat device investigation which involves up to 11 million vehicles and this latest discovery was made during an internal probe. it doesn't specify which models but this time, yes it does inlewd petrol as well as diesel
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engines. separately vw is recalling certain calls in the u.s. and canada according to a reuters report citing an personal memo to dealers. it could reduce engine and break power telling dealers not to sell anymore vehicles they currently have in inventory. >> in shares of japan is takata. they plummeted this morning after honda said it will no longer not use it's air bags in future vehicles. this comes after the auto safety firm was hit with a 70 million dollars fine for u.s. auto regulators for the way that it handles recalls of defective air bags. the firm is cooperating with authorities. >> we think psan inflaters are safe. it's the fact that the car makers and the authorities have concern. we're trying hard but it's still under investigation unfortunately. this comes from a business
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decision. >> it's a different story for shares in honda with the group trading higher after a 6.9% increase on strong u.s. sales. the performance state side offset a difficult domestic japanese picture with the 127 billion yen net profit still slightly missing consensus estimates. let's check in on tesla because the electric car maker posting it's biggest quarterly loss in more than two years after the bell but you never know that by looking at the company's share price. phil has more. >> tesla shares moving higher after hours as the electric vehicle maker reported third quarter earnings that fell below expectation on the top and bottom line. tesla reported a loss of 58 cents a share on revenue a little lower than expectations of 1.26 billion. why did shares move higher after
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hours? primarily because the fourth quarter guidance in terms of deliveries shows it will be meeting expectations in terms of 50,000 vehicles being delivered this year. it plans to deliver between 17,019,00 17,000 and 19,000 vehicles. it's previous guidance was 50,000 vehicles delivered for this year. the mass market electric vehicle, it will unveil that vehicle in march of next year. remember, deliveries are not expected to start until late in 2017 but the unveiling of what that vehicle will look like is certain to get a lot of attention. shares of tesla moving higher after hours despite reporting a loss of 58 cent ace share in the third quarter. that's the story from here in the u.s. back to you. >> we'll get more analysis here in london and joining me in the studio t auto analyst at isi
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group. people were expecting a lot of problems coming from the new cross over the model x. how did you see the results? >> yeah, well i think the results were pretty much in line as phil said. 58 cents a share. we were looking for a loss of 61. the street was a bit better and obviously a currency revaluation in there but the point that phil made and the point that we believe t street is take agoway is this delivery guidance. going into the quarter people saw a lot of risk around the previously guided range. out of the quarter, tesla stayed within that range. now guiding for 50 to 52,000 units. >> so within the range but, you know, their initial forecast for deliveries this year was 55,000, right? so we're still below what they started off the year with. >> exactly. we're still below the delivery forecast but with tesla it's production rather than demand
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which is driving what they can get out to customers at this point in time and the model x is an extremely come my kated car. it has many industry firsts and as a result it has been a bit later than they initially invisioned. >> components with constraints when it comes to seat belts and car doors and these problems could be addressed in the next one and could be pumping out maybe a few hundred more vehicles each and every month pretty soon. >> by the end of the quarter he's talking about pumping out around 100 model x per week. a point he made on the car is they're only as strong as their weakest supplier. so they can have 99.9% of the supply base in place but if that 0.1% is unable to deliver it delays the program. >> what about the model 3? everyone is excited for this. this vehicle makes it more affordable for the average person. >> exactly.
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one of the things that's true is they have been innovative, exciting and great looking. the model 3, the question is will we get more of the same? we believe we will. as you said this is going to be the key car. not just for consumers given the lower price point but also for investors. this is the car that gets you to around half a million units by 2020. that's key to their valuation. >> i don't know what makes a car look angry. i'm not sure they look angry. they have nice lines. >> i think they're pretty good-looking. the model s looks similar to a maserati. >> i still like the insane button. i hope that keep that on the model 3. good to see you today. thank you for your time. that's the auto analyst at isi group. okay. here's an update on a developing story we have been talking about that goes back to chipotle and health officials say they're
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linked to 35 confirms cases of e.coli food poisoning in the states of oregon and washington. a dozen people have gone to the hospital and they closed some 43 restaurants in the seattle and portland areas. investigators are trying to determine the cause of the contamination and suspect it maybe involves the fresh produce. chipotle shares with declines in trade. >> sabmiller and ab inbev extended the deadline to agree to a deal. it's been pushed back to november 11th. they have made good progress in agreeing to the terms of this 100 billion dollar plus merger however both sides said more time was needed to finalize shareholder support and satisfy the preconditions for the deal. shares going in opposite directions today. we're seeing some gains for ab inbev stock. and is bud still for you? what the wall street journal
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reporting that ab inbev extended bud light's spontaneosorship de with the nfl for three years. this deal is worth more than $1.4 billion. that's 15% more than the current deal bud light has. budlight is also the sponsor of the thursday night game on cbs and nfl network and also sponsors 28 of the 32 team in the league. ab inbev shares may be moving higher on the back of this extension. >> still to come on the program, looking for a deal? you may be able to get groupon as the stock tumbles following an earnings announcement.
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let's get to landon at cnbc headquaters for more. >> good morning to you. let's start with groupon that had lower than expected revenue. the daily deal site is also forecasting 4th quarter and 2016
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revenues below estimates. it's trying to transform itself into an online marketplace. in september it said it would cut jobs and shut operations in seven countries. it will spend up to 200 million more on marketing annually and reduce it's focus on offering electronics which bring in higher sales but lower margins. the co-founding is stepping down effective immediately. he's returning to the role of chairman and is being replaced by rich williams. he has been named the board's lead independent director. groupon sales have fallen by half this year. they are down about the same in europe today. zynga is delaying the launch of two new games to next year. the company behind farmville and word with friends struggled to adapt to gamers shifting to mobile devices and competition from king digital. they also reported higher than
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expected bookings for the third quarter but fourth quarter below analyst estimates. it rose 11% in the quarter and plans to buy back shares. the company also says the cfo that came from best buy last year will be stepping down next month. zynga rose 1% in after hours and shares are up 7% in europe today. >> thank you so much. it's a busy earnings week and cbs has also reported better than expected third quarter earnings but revenues did fall short on lower ad sales and content licensing fees. the top rated u.s. broadcasting network expects ad spending on the super bowl and political campaigns to boost it's revenue next year. it's also discussing an ad free version of its streaming video service. cbs all access which could cost maybe $9.99 a month. shares rising 2% after hours in germany and we're seeing gains of .3%.
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herbalife lifts it's outlook. despite double digit gains when it comes to china. revenue falling 12% but would have risen 5% if you exclude the current sy swings. they spent 3 million dollars to respond to the on going attacks to business from bill ackman. fell some 3% in after hours. in german trade down by similar margins as well. etsy leaving investors antsy after warning on shrinking profit margins. >> that's right. etsy's latest earnings report left investors disappointed and shares falling after hours. for its third quarter as a public company they reported a loss of .6 per share which was in line on revenue of $66 million also about in line with consensus. there were other positive for the quarters. they added 900,000 active buyers
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to a total of 200.6 million. also adding 49,000 active sellers to 1.5 million. it grew up nearly 22% to $568.8 million. gross margin expanded quarter over quarter but fell year over year due to employee related costs. it's the fourth quarter guidance dragging down shares. the retailer doesn't expect it's year over year gross margin trend to continue time prove in the fourth quarter for three reasons. first there's shifts in seller services revenue growth. second etsy expects marketing expenses to continue to grow faster than revenue and third it expects new hires will outpace it's new hires from the same quarter in the year prior. now etsy also reiterates it's warning from earlier this year that the strong dollar will continue to dampen demand for foreign buyers of dollar
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denominated goods. some traders also say they aren't sure how etsy fits into the rest of the retail industry. it's become more clear that investors aren't sure how to evaluate etsy's results. >> meantime, share price melt down for u.s. steel after the company reported a bigger than expected loss for the third quarter. net sales drop to $2.8 billion. being hit by weak demand and falling prices. also the steel producer is forecasting further pain ahead saying that markets are not improving as it had expected for the back half of 2015. staying with metals and glencore shares trading higher after a bullish tone in it's latest trading update saying it's debt reduction plans are on schedule. it cut it's copper production guidance in order to scale back on its costs and will also bank $900 million in a streaming deal selling around a third of its
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silver output. over in the u.s., softbank ceo says that thousands of jobs will be axed at sprint in the future which it acquired back in 2013. the japanese telecom's company did report a 39% increase in profits amid signs of improvement at sprint and as the cost cutting they say are bearing fruit. now let's get to break news we have from europe an we're monitoring monetary policy. mario draghi has been speaking on bank regulation. now we're hearing from the vice chairman and he's talking about needing more clarity when it comes to macro tools and he says that monetary policy should not address bubbles and they'll be watching this very closely. he goes on to say that will are pockets where some assets in his view are a bit overvalued and for further analysis on average for the euro area he says there is no general overvaluation in
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the central banks view right now. there are discussions of of course of more being done by the ecb in the future. >> the tech heavy nasdaq 100 closed at an all time high on tuesday. breaking a 15 year record. so yes, you had to go back to the bubble year of 2000. this evening the web summit in dublin ireland has the honor of ringing the stock exchange's closing bell remotely across the pond. let's get out to karen standing by holding court and let's talk about mood and atmosphere and i'm wondering if there's as much euphoria as there is if you judge by the stock benchmarks. >> no shortage of optimism here at web summit. worth pointing out the last couple of years they the opening bell for nasdaq so this year it will be the closing bell but of course with the index climbing so rapidly and trading around
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some of the start ups here are encouraged about what that means. there's a couple of reasons why we're seeing the growth in tech names. very low interest rates is making investors question whether dividend plays are the right place to be or whether corporate bonds is the avenue you want to be in. you have all of these technology companies shooting out the lights when it comes to earnings. we had google, amazon, microsoft blowing past expectations. earnings were up in the third quarter. $4 billion in earnings that are produced. the valuation changed for a lot of brokers after it posted it's web services business. the cloud numbers for extraordinary. for instance they have come out way target price of $800 verses the 625 it's been trading at currently. this could seal the fate for the confidence around the sector. i have been having a chat to the nasdaq about the confidence he's seeing out there in the market.
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take a listen to what he had to say. i asked him about whether interest rates or u.s. political cycle or something else was key to sentiment. >> it's individual for each company. they're looking at their peers and sectors and how they perform on the exchange and this is a key bar rometer to decide. >> so if they do well and stock is trading around an all time high that's more encouraging to go list yourself. >> i would say peer more than rival but if they can show that the sector is well received on the market then that's a good time. >> it might be comforting to see your peer trade at a very high multiple but have to say that's not the right metric you should be look at. great stats. we take a look at the performance on the nasdaq in the last couple of years. the best year for returns for ipos was 2012 after a down year in 2011 for the nasdaq. the index was back 2%. so you had the ipos getting positive numbers.
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65% and right back to 2000 the number we have been looking at when the nasdaq was up 44%. the following year they only had a success rate of about 20%. you want the nasdaq to be reversing if you're looking at listing susan. >> are you saying we should make take next year off and maybe go hit the beaches or something? that's not a bad idea. >> if you're look at chasing headline act on the market, maybe you should hit the beach instead. >> i'm thinking of the beach right now. thank you so much, karen. at the web summit in ireland. good wednesday morning everybody. let's get you caught up on the headlines today with us. futures suggesting there's going to be a positive start with the positive start in november set to continue. this is after the nasdaq 100 closed at a record high during yesterday's session. the motte thickens as petrol cars are being dragged into the scandal for the first time. it's a tough deal at groupon for
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2016.
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at the deal book conference in new york on tuesday two high profile investors raise the red flag over the fed and it's chief money policies. >> they've got to be real problems. we're walking into a mine field with what's going on with the fed. we can go on and on about this but we have problems. >> this is not some permanent boost you've got. you're borrowing from the future and i think there's been such a misallocation of resources because this is gone on so long and so unnecessarily. the chickens will come home to roost. >> guess what, we'll hear more from fed chair janet yell lisen she is testifying. you'll want to tune in later on today at 1600 cet. that does it for worldwide exchange. u.s. squawk box is up next.
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stocks jumping 4% in china overnight. that's the best day there in 7 weeks. the crisis at the german auto maker taking a turn for the worst as it now admits it understated fuel usage on european models and even non-diesel motors and engines getting caught up now. tesla continues in the fast lane. the stock getting a pop on a bullish view of future production and no deal for investors. why shares of groupon are down more than 20% in early trading. squawk box begins right now.
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>> live from new york where business never sleeps, this is squawk box. >> good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew rosss sorkin. among today's big test we have the labor picture. the october adp report is due at 8:15 eastern time. the economy probably added about 180,000 private sector jobs last month. let's check on the markets this morning and again after two big days of gains you're going to see some green arrows once again. dow futures up by 30 points this morning. the s&p futures up by 1 and the nasdaq up by over 10. >> let's get you caught up on the other big stories we're watching this morning. it's on the front

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