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

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welcome to worldwide exchange. i'm carolyn roth. >> i'm susan li. they miss forecasts and warns of a challenging second half. shares seeing green. the swiss agri business is in talks with a tie up with dupont. disney's force awakens after they deliver better than expected turns and hopes are
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spined on another blockbuster franchise. >> on the eve of our first star wars movie we're feeling good. so no guidance for the year. >> and is it the data or the date that will determine a rate hike? the latest u.s. jobs report is set to add more clues to the timing of a fed move. good morning, everyone. it's that time of the month again. it's friday and it's the jobs friday. that's what we're looking out for today. especially important given that janet yellen flagged that that december meeting might be live and we may see the rate hike and expectations of that they have risen from 50% up from a 30% just a week ago. european markets, off by 0.1%.
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xetra dax seeing a little caution there and cac 40 down by .7%. here you go, this is the forecast for the all important non-farm payrolls report. for the month of october what we're expecting is a print of 183,000. now that would be a little bit of an exhilaration from the month of september when we saw 142,000. remember that was the really disappointing report. in terms of the october jobless rate we're expecting a print of 5% and that will be a slight tick lower from the september one. >> let's get back to our top stories. it is a pretty bad day of trade. the luxury group slumped after it missed the street this quarter. much of the pain is being felt by the launch making division. demand continues to look pretty
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weak. a region where the group makes almost top of its revenue. luxury starts have been dragged down across the continent. now i have to say, i rivercover richemont for a couple of years now. we usually hear things are looking challenging but this time around it looks especially dier and especially challenging given that hong kong is still under so much pressure. what we saw, shipments of swiss watches to hong kong were down 20% the first nine months of the year and there's no visibility on when that could improve. >> but is that really surprising? we have been talking about this for awhile and luxury sales are drying up when it comes to hong kong and the asia pacific. really across the board and it's richemont's turn but i'm not sure when this anticorruption
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drive is going to end. some say it's not going to end as long as xi jinping is in power as chinese president. it could be awhile. maybe it's time to look at the u.s. the u.s. is showing strength for luxury names. >> a couple of the luxury names can offset the weakness we saw in hong kong with better tourist revenue in europe, for example. so lonas long as we see tourist spending in france and london for example maybe that can help offset the weakness. >> i have an idea. >> what's that? >> they need some celebrity endorsement. >> they have that. they have celebrity endorsers don't they? >> plenty. >> well, they need to hire rihanna. she is helping out puma. sheltered by rihanna's umbrella. shares in puma are trading higher after they're optimistic on its women's business under
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rihanna and this despite third quarter growth. the launch of the first pair of sneakers by the pop star sold out within hours or days at most at these retailers and they're saying the order pipeline looks good as well going forward. however net profit is falling 31%. missing estimates on net profit and sales but, hey, we have rihanna in the headlines, you're doing well. >> do you feel like singing this morning? the song umbrella. >> not yet. >> not yet. >> got to work into it. >> sanofi is one of the biggest losers in the stock 600. meantime, they warn profit growth will be minimal. this as the company ramps up investment to offset falling diabetes sales. it will trim cost by 1.5 billion euros by 2018 by which time the firm hopes earnings growth will recover. >> telefonica net profit drops as weight on the company's
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number and home market in spain did see a rise of sales for the first time since 2008. so that's a bright spot. we'll be speaking to the ceo of telefonica. we asked if bundling is an exception. >> we look for people that are credit providers of each of the services. they're not just looking for price. the great thing about the u.s. market is you have real choice in each of the elements and there's a very small segment of the market that's purely price driven. everybody else is looking for great value for a great service and the one thing we have done consistently is exactly that. >> meantime, telecom italia profit fumbled 63%. italy's biggest phone group also announced it will go ahead by
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converting $6 billion in savings or shares into ordinary shares. this will also dilute the holding of its top investors. quick look at the share off. up by 1.3%. disney's 4th quarter profit. one of the largest media companies around rising 7% as they brought in more ad revenue and fees from cable and satellite providers also increase. revenue slightly lower than analyst estimates as disney lost subscribers from some of its cable companies. bob iger is sticking with the forecast when it lowered it's guidance after saying espn suffered modest subscriber losses. he is still bullish on espn going forward and there's no reason to panic about his previous comments. >> we're continuing to do what we can to make the traditional platforms as successful as
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possible in this era. we feel good about a number of the steps we're taking in that regard. we think that there will be more to come but generally speaking, as we look at the media environment, the opportunities that we have today to distribute our product to reach more people are greater than we have ever seen before. >> and the bright spot was consumer product sales or merchandising as they call it over at disney. rising 11% in the quarter on strong demand for items tied to its hit movies. like, for instance, frozen is still selling avengers and how can you forget the upcoming star wars film. disney dropped 2% after hours and gains of just around .5%. let's check in on markets. does this change the outlook when it comes to monetary
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policy? but now all of a sudden that has changed. the nasdaq really isn't going anywhere. looks like a flat shock being priced in for u.s. markets today. >> u.s. employers are expected to have added around 183,000 jobs in october taking the jobless rate down to 5%. analysts are alsoen agattis pating revisions to the previous months reading of 142,000. so is it the data or the date that will determine the timing of a rate hike along with the improving jobs picture. there's a pretty solid rebound and while growth slowed in the third quarter overall gdp is expected to show another fairly strong year. what are we hearing from the fed? >> we hear a lot from the fed, don't we? six fed speakers were talking and of course we heard janet yellen on capitol hill and she impacted markets so the fed
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itself is sounding a bit more hawkish since janet yellen described a september -- let's get ahead of myself. december, think about christmas, december hike as a live possibility and last night we had the atlanta fed president saying it was strengthening for a move this year. we had them still remaining dovish saying raising rates is still not a commitment. it's 50/50 heading into next month. >> it is. joining us on the phone is dennis gartman. always a pleasure speaking with you. what is your forecast for the number and do you think if we come in in line with expectations, will that be enough for the fed to actually hike in december? >> i have been doing this now for 40 years and the average
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revision is plus or minus 50,000. i think they'll be somewhere closer to 140 but if they're anywhere between 90 and 190 or 90 and 210 i'll all that a bulls eye. we have to remember how advisable are these numbers on a monthly basis. so let's take them with a great good sizable bit of trading salt. on balance, i think you're absolutely right. the odds of an increase in the funds rate, the so-called lift off is probably no more than 50/50. i'll bow to mr. fisher's expectation that that is not a commitment. it is as the fed chairwoman said alive. what are the odds? probably no more than 50/50. after all the smoke clears, what does it matter. we'll get a 25 basis point increase sometime and they'll stop for a long time after that before they raise them again. >> all right. so are you saying these jobs reports are non-events then?
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>> well, they're always events because they're always shocking. what's amusing to me is those that hit the number perfectly today are a month from now when the revisions come out miss and those that miss the number today when the revisions come out often hit. after all the smoke clears i much prefer the adp number to what's actually happening in the u. s. economy than to the non-farms payrolls to the labor department. the economy is doing fine. it's moving along at a sluggish slow pace and my friend calls it, we are a plow horse economy that goes through the mud with a sense of responsibility. is it exciting? no. are we moving forward, yes. and will we probably continue to do precisely that, almost certainly. >> dennis, give us some trading advice? do you like gold still even though that's been on a losing streak as a result of the increased possibility of a fed hike? do you like stocks in this environment or do you think that if we get a better chance of a
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fed hike stocks will actually sell off? i have no opinion about gold in dollar terms whatsoever. it's been a losing game and terrible trade. goal funded in euros or yen has been a wonderful winning position. so i like gold but only if i'm able to fund it and i am in yen and euro terms. it's still a bull market and those that continue to try to sell it short find themselves scrambling. you can write this down they'll continue to go higher until it stops and the trend lines are broken and we had a very severe bear market that began in may. that was sufficient to say the market had gotten oversold.
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on golden yen and euro terms and own stocks generally. that's the trend. >> thank you so much. founder, editor of the gartman letter. don't forget to stay tuned. we'll be speaking to charles evans later on today. catch that interview, 14:30 cet time. what's old is new once again. goldman sachs is bringing back it's junior banker promotions. scrapping the two year analyst program the aim is to try to keep those employees within the ranks by speeding the path to promotions and relieving them of the hard, long hour grunt work that falls to younger workers at the bank. >> so that is our question to our viewers out there. will ditching the drudge keep them happy. are they paying them enough? isn't thatting something that everyone should have to do in
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order to move up the ladder? don't forget to join the conversation. we'll touch, e-mail and tweet us. personal handles on the screen for you. isn't this how you toughen them up and get them ready for a world that is pretty tough? >> maybe it shouldn't be so tough in the first place. who says that an intern or anyone for that matter should be doing powerpoint presentations up until 2:00 during the night. begs a question for the overall industry, doesn't it? >> but that's kind of been the tradition, right? >> but just because it's the tradition doesn't mean that's healthy or good. >> okay. so my argument is you don't think jamie dimon had to do a lot of the grunt work. >> i'm sure he did. >> i think it prepares them and builds character. but maybe they should get more sleep than just two hours or three hours. >> that's true. >> but grunt work is part of the right of passage. you let us know what you think. >> still to come on the show, growing a bigger company, shares
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>> all ahead of the nonfarm
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payrolls report. off by roughly 0.4%. a lot of the luxury starts are under pressure on the back of the report for the first half year. very disappointing outlook. let's see how asia faired today. adam, what do we see? >> we turned out to be a very interesting trading session out here in asia. we saw a mixed picture with the scales tipped against the emerging markets because of the interpretation that maybe we might have a better non-farm payrolls there coming out of the united states today but together with the prospects of high interest rates by the end of december. that exerted pressure including equities, currencies and bonds. you can see struggles in the emerging markets area from india flat lining all the way down here. that said there was some upside in these markets to cheer about. take a look at what happened in the greater china region.
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accelerating further into bull market territory. driven by the banks and brokerages there. we saw volumes coming back into this market. pushing this market up for the third straight session to the highest levels we've seen in about 3.5 months and the optimism continued all the way up into japan. the nikkei 225 also going along for the ride. up for the third straight trading session and powered by the weaker japanese yen versus the dollar which declined as the dollar bumped above the 98 handle. it helped to support a lot of the stocks in japan but a lot of caution here in asia ahead of the non-farm payrolls data due out tonight. of course we won't get to react to that until monday morning. back to you in london. >> thank you for that. shares in syngenta are trading higher after reports that they're discussing a potential tie up with dupont's agricultural division. according to the wall street journal they're in discussions
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about an alternative deal with dow chemical which is said to be exploring the sale of its pesticide unit. the report adds that the talks have gathered steam since they abandoned the $46 billion takeover offer of syngenta in august. >> also, british health care company astrazeneca agreed to buy zs pharma. the $90 per share paid by astra represents a premium of close to a third compared to yesterday's closing price though we're looking at shares down 1% here in the u.k.iag is trading this morning ahead of the capital markets the owner says it's now targeting average earnings growth of more than 12% a year frup the previous guidance of
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10%. >> lufthansa's cabin crew, the union says they will go ahead with a week long strike today. they're expected to walk off today. it's likely to be significant as it has no chance to draw up alternative plans. >> sunday's air show is said to be a different spectacle in recent years. drones will feature in the show's flying display for the first time while the newly formed united arab emirates space agency will unveil it's latest products. they won't be announcing major orders at the events while they have kept a low profile ahead of the show. phil has been looking ahead to the event and sends this report. >> the world of aviation is
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heading to dubai. airline ceos manufacturers and buyers will be there from sunday for the dubia air show. one of the biggest talking points so far is the lack of orders. two years ago airlines spent more than $200 billion on new planes. emirates airlines set a record by purchasing 150 boeing 777xs and triple a-380s. this time around emirates indicated it wasn't playing any big orders and the same is true for the other gulf carriers. the airlines saying they have too many aircraft on the books that haven't been delivered yet and while some spark might be missing on the order books there won't be an aircraft debut this time around either. neither are unveiling any new aircraft with the 787-9 both in service.
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another one of the wait and sees revolves around the airbus a-380. they haven't had a new order for the largest passenger plane in two years. emirates said they would order more but only if they unveiled a version with new more fuel efficient engines. so far airbus said they are unwilling to do that for only one customer. so as we countdown the days to the show it's wait and see if the gulf will surprise the aviation world this time around too. phil hahn, cnbc. >> okay and for a look ahead at the dubai air show joining us in london today, an independent air transport consultant working with airlines around the world. isn't that interesting that the largest buyer of a-380s said they had more appetite for these large planes but a neo version. >> they have been a major
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customer. they have indicated they would like to take more on top of the orders available buts there's the higher payload, longer range. if they got that specification met they think it would help to sell to other airlines. >> don't you think it says something about orders going forward. >> they're not really expecting much in big orders. they got off to a good head start. so we can't always get big orders even in this market. this is one of the biggest growth markets in the world. very large and powerful airlines. but as your package said there, there's still orders not delivered. there will be discussion going on but not as high profile in the public domain. >> may not be a bumpy year for dubai this year but where does
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the air show rank in terms of the global hierarchy of air shows. when you compare it to paris, where does it rank? >> it comes right at the list. i wouldn't want to say in which order of the top three but they're all there. you have paris, you have dubai, simply because the fwugulf is o of the biggest markets in the world and one where there is enormous growth. they get big ticket orders. it's going to be a major source of business for the future. >> there's been a lot of talk about drones being on display at the dubai air show. also about 3-d printing, about space travel. do you think we're overplaying this a little bit? do you think that's not quite part of the feature just yet? >> i would guess not. i'll sure that people working in that sector want to show up and have their products but it's really the airline manufacturers who are the key and we should also say there it's not only the big airlines looking for a lot more planes. there's more reasonable airlines
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in the gulf. >> thank you for your time. and still to come on the show, vladimir putin vows to protect his citizens as the debate over the sinai plane crash continues. we're live in cairo, next. opportunities aren't always obvious. 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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these are your headlines from around the world today. >> the biggest names in the european stock market after they miss forecasts and warns of a challenging second half of the year. >> shares in syngenta seeing green on reports of the swiss agribusiness is in talks over a potential tie up with dupont. >> disney's force awangs as cable delivers better than expected returns. the ceo tells cnbc hopes are pinned on another blockbuster franchise. >> on the eve of what's our first star wars movie we're feeling good about the year ahead. particularly lead by the studio and no guidance for the year. >> and is it the data or the
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date that will term a rate hike? the latest u.s. jobs report is set to add more clues to the timing of a fed move. >> got a little bit of u.k. day to bring you. u.k. september industrial production fell 0.2% on the month. it was up 1.1% on the year and that looks to be a little bit worse than forecasted because forecast was calling for a 0.1% decline month on month and 1.3% increase year on year but the september manufacturing output that was a little bit stronger than forecast. it seems. so mixed data, sterling dollar is at a one month low and it was ahead of that data and we are seeing it. largely unchanged on the back of it. 151 75 and got a huge knock on the head after yesterday's very
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dovish comments coming from mr. carney. in terms of the bond markets all eyes are on the non-farm payrolls report. ahead of that the treasury note yield, 2.32%. >> let's check in on the equities picture on this last day of the trading weekend. we are negative territory after snapping that three day winning streak yesterday for the stocks europe 600 but we're still on track. the ftse 100 not going anywhere. german dax down at a quarter. and the ftse mib is the outperformer today. maybe seeing gains of .5%. >> russian president vladimir putin vowed to protect his citizens amid claims that a bomb caused a russian plane to crash in the sinai peninsula over the weekend. meanwhile the decision to suspend flights by some european airlines is unjustified. it is only allowing passengers
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with hand luggage to travel out of cairo airport. let's get to hadley who joins us with the latest. want to go back to yesterday's meetings. i think they wanted to show a front but must have been furious. >> >> oh, definitely. what we have been hearing from egyptian officials over the last 24 hours is that they were very, very unhappy with the reception they got in london. you have a meeting between egypt's president. his first state visit to the u.k. meeting with david cameron and even in that meeting the president was up for the conciliatory gesture. but at the same point, the u.s. and the u.k. authorities basically continuing to push the line of the possibility of a bomb exploding on this plane and that's what brought down this
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aircraft. i want to mention in the british press there's been several reports eluding to that as well. the u.k. had been able to pick up on some kind of intelligence and chatter between islamic groups and this may of course be attributed to the islamic state. so that's happening on the sidelines but what we heard so far is that this is unwarranted. they're still pushing back on the claims. you have to remember that 900,000 tourists a year coming here from the u.k. but also global tourism and the impact this is going to have on the tourism market. of course you have to remember this is a huge part of the egyptian economy. it's something they have been trying to rebuild from the arab spring. it's not just in terms of the tourism numbers and revenues but also for the president because he has been riding high on claims that he has been able to tamp down on the militants. that he has the security situation in this country under control. if this does turn out to be the case it's a big blow to his administration. >> thank you so much for that. let's continue that conversation
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with the vice president. there's so much speculation out there about the cause of the crash right now. you say it's much too early to talk about any implications for a change in strategy in syria. >> indeed, while we do not know what the exact cause is of the crash, it is pointless to speculate on what the policy implications could be because it may well turn out that it was actually either mechanical failure or a pilot failure and that could have repercussions inside of russia. maybe more serious than if it turns out to be a bomb. we just had corruption allegations. >> but regardless of that, the current russian strategy in syria is one of bulking up the forces there because they sent air defense systems. is there also possibility and likelihood of them sending ground forces? >> so the aim of russia and syria at this point is to stabilize the regime.
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they're not going to go to any length to do so. but at this point it seems that the commitment that can be made by the russian government to the syrian regime would go probably as far, just before the commitment of the ground forces. >> i just want to talk to you about the u.s. president and this theory that maybe there was a bomb planted on board the metro jet. president obama speaking in an interview in seattle saying that there is a possibility. he's acknowledging now that there is a possibility that a bomb was on board. you know, i'm just wondering why russia and egypt haven't gotten on board with that theory just yet. >> well, in any case, i think that they're also looking for a little bit of a time to close the investigation and prepare the measures that they could be announcing at the time when the actual segment would be made on the causes of the crash. if we face the situation with the bomb, the measures will reassure the public will need to be completely different. >> that's exactly what someone said yesterday.
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yesterday we had another strategist on saying that the worse nightmare for the russian government is here, i have to say that it was a bomb planted on board because the plans for syria and the middle east would probably have to be changed for public pressure. >> well, you see, it depends on whether your policy takes precedent. we have seen russian government reacting in a knee jerk reaction to eastern ukraine when suspected it was involved in the crash of mh-17. that was a initial knee jerking reaction but the overall policy did not change. >> if we take a longer term true, what do you think does russia see as acceptable when it comes to the longer term solution for syria right now. even that is very unclear. yes they want to stabilize the government right now. but the future, is it one with or without assad. >> at this point the tactical
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claims are clear. it's the stabilization of the regime and forcing them to the negotiating table over this particular issue. what the eventual settlement would be is on the russian side. >> thank you for your insight. really appreciate it. the indian central bank governor has hinted that an imminent rate cut for the nation is unlikely despite speculation that there's room for more easing. rates stand at 6.75% and that is a 4.5 year low after several rate cuts already this year. speaking exclusively with cnbc, he said the bank does not have a lot of room below the 6% rate with underlying inflation between 5 and 5.5%. he asked if the collapse in commodity prices had given him a free pass. >> it is a free pass but remember that what commodity price dos is effect the price of
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manufactured goods. food inflation being kept some what underchecked by agricultural commodities which have held up but where we have seen some traction now is the source of the high inflation earlier. but you know, as they say, we take all the luck we get but obviously there's some policy. >> on saturday, in singapore, the president of china and taiwan will meet historically really for the first time in over 6 decades. now the landmark meeting will see leaders xi jinping and they will have dinner in the city with the key issue remaining china's desire for rewr reunification. also on the table is a so-called 992 consensus. that's the idea that there is only one china. though both parties have their own interpretation of what
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exactly that means. they are also expected to address each other only as mr. rather than president in a bid to avoid any controversy over the sovereignty debate as taiwan heads into a presidential vote in a few months time. also voting another landmark event on the agenda, myanmar holds it's first open general election in 25 years on sunday. the nation's most powerful oppositional figure, her party could win the most seats but she blocked and ineligible to become president. >> a roend to the election seas for the national league for democracy party. her party campaigned for change and at her last rally before the crucial poll she called for unity among supporters as well as among politicians. >> we will try to win the election in the right way. don't stray from the right way because of the rumors and dirty publications. it is the time to compete
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against the negative people with our strong spirit. >> even if it's they secure a victory the country's constitution prevents her from becoming president. while she may be popular at home and abroad, many have been surprised at her silence at the plight of the muslim ethnic minority. resolving ethnic conflicts could be the biggest challenge as she tries to secure a larger portion of the 30 million plus votes but perhaps to the advantage, locals are hoping for a change from the four year rule of the president and his union solidarity and development party. >> translator: if the current party wins the election the economy will be worse than it is now because the government controls everything. economy, all areas. the situation will be worse. >> translator: our best hope is to hope for a better business. we have some natural resources
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but we are a poor country. we need a better economic system so we can have a better life. >> the outcome of this election is ever more crucial for these local business owners. even though the country reemerged from decades of isolation in 2011, much of that luster has been lost with foreign investors waiting for further reforms before pumping more cash into this ethnically diverse and resource rich nation. now still to come on the program here on worldwide exchange, can the force rescue the magic kingdom? we'll discuss this after the short break. you can't predict... the market. but at t. rowe price, we can help guide your investments through good times and bad.
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>> the group says 4% of its customers have any sensitive or personal data at risk and the total number of people whose details were accesses is a lot less than initially feared this
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follows a profit analysis as it reduces freight rates. >> they outlieped the current trading conditions. >> we're making money in all the businesses but we are and that's what leading to the poor results in the last quarter is that we are competing in markets so the oil price is down 50% and freight volumes growing slower than expected and also rates down 19%. we think it's tough outside there but the business is doing well and we will post a profit for the year of $3.4 billion which i think given the circumstances is very absolutely acceptable. >> meantime, still trying third quarter earnings came in worse than expected as the firm faced tougher competition from china. a loss of $711 million versus a
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profit of $22 million a year previous analysts were expecting a loss of around $184 million. the company is suspending it's dividend and reducing it's guy lance for the remainder of the year. let's talk insurance. allianz reported a larger than expected net job after a decline in insurance revenue. the german company did say it expected earnings to come in toward the upper end of the guidance. >> but the big one we were watching for after the bell in the u.s. was disney's 4th quarter profit beating forecasts as the media giant's cable networks brought in more ad revenue and fees from cable and satellite providers. revenue was lower than what analysts forecasts as disney lost subscribers from some of its cable channels. the ceo is still sticking with his company's august forecast when it lowered it's cable
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profit guidance after saying that espn suffered what he's saying are modest subscriber losses and speaking to cnbc after the release of the earnings, iger describing disney's strategy to expand it's reach into new areas. >> we're going to continue to use new platforms to place our product. whether they're third parties or whether it's technology that we ultimately use ourselves. we're launching, in the u.k., actually in just a few weeks an app or service that is disney branded that will have hundreds of movies, thousands of tv shows, thousands of books, thousands of songs. games, for instance, that is disney branded. again one of the reasons we differentiate as a company is that brand disney. it's a direct to consumer product. it's going to sell for roughly just under 10 pounds a month in the u.k. we feel really good about it.
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it's technology that we know is leverageable. not just across markets around the world but it's also technology we can ultimately use for our other products. we talked about this before but we forsee a day or era where this company in particular will be able to reach consumers more broadly and more directly. >> now, iger told cnbc that it's highly anticipated new star wars film isn't just for existing fans of the franchise. >> everybody asks me to tell them something about star wars. star wars is premiering in the united states on december 18th. actually it will be available at 7:00 at night the night before. we are thrilled with the film. it's got something for everybody. one of the great things about it that j.j. abrams has done, he has managed to blend, i think, perfectly, i'll call it the old and the new and that essentially means that there's something for
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the most avid star wars fans that are out there but it's also a film that will appeal to people that have never seen a star wars movie. it's also a great blend in terms of talent of some of the great stars that lead the parade of star wars starting back in 1977 with a whole new cast. so in many respects it's a partnership between cast members that are familiar and many that are not familiar at all. it also has a lot of humor, tremendous amount of heart. a lot of action. just a lot of star wars. we can't believe, actually we're thrilled with the reaction so far to the trailers we've had in the marketplace and that's evidencing itself in advanced ticket sales which have been really strong. >> record advanced ticket sales. this is the first star wars film for disney after buying up lucas film for a few billion dollars just a few years ago. so high anticipation, right? i would argue that the movie studio didn't do too badly in
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the quarter that just went by. antman, inside out helping profit double to $530 million but disney, still their bread and butter, we talk about theme parks, their bread and butter is still their cable channels. >> and based on those numbers i'm not sold on why this company or why this business all of a sudden should be doing better. they brought in higher cable revenue because of better advertising revenue and retransmission fees but what we're looking at in this very tough environment for many of the cable companies and the media companies is actual subscriber growth and he even said we're still looking at modest losses. so from that perspective, and that's why the stock sold off so heavily over the course of the summer. we actually saw there is no improvement on that front and the big question is still what they're going to be doing with espn. whether they're going to be going directly to the consumer. i know that disney has said previously they have no plans to do that but cord cutting is real
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and not even disney can evade that trend. >> he does say there is no reason to panic and he does have some new cable channels up for subscription like the eastern conference channel which helped with the revenue gains during the quarter but you're right. maybe it's also a reason for disney to look at how much they're paying for licensing fees and these big sporting events in the future. are they overpaying for coverage of the super bowl and nhl and mayor league baseball. the list goes on and on, right? >> absolutely. it's certainly not the only company struggling with the cord cutting. viacom is in the dull drums. we heard from time warner now and they even said it might take a little bit longer for the markets to adapt to the new viewing habits. so yeah, netflix is still reigning supreme. >> this business is very
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cyclical. one minute this is hot and the next minute this is hot. >> now people are moving to the skinny bundles. they're no longer paying for the big bundle out there. you don't want to pay 40 or $50 for 200 channels you're not going to be watching. >> but see they could unbundle in the future. >> that's what they're doing. >> so it's not that viewers don't want to watch espn. that's what i'm trying to argue. it's that disney needs to work up a strategy to get viewers that want to pay for it to watch espn. they're doing something different though. i like that they're going to new fields. like for instance they're offering this new direct to consumer available disney life chnel in the u.k. skinny bundles. working with playstation view which is how other people being entertained these days on their playstation game consoles. so they're going to find a way to beat the declining subscriber growth. disney is being proactive about it. >> yeah, they are. let's move on. shake shack is raising the full year revenue outlook after same
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store sales soared 17% in the third quarter. that's well above forecast. the burger chains profit and revenue also beat estimates. they now expect full jurors same store sales will be 11 to 12% up in the mid to high single digits. shares rose more than 5% in after hours. in germany, they're up almost 7.6%. >> let's talk about gaming and this week we were talking about activision buying up king digital. well, nba 2k maker raising it's game and also beating analyst forecasts with revenue in the third quarter increasing nearly threefold. it's two biggest game titles drove the growth but it's digital business also showing strength accounting for close to 40% of its sales. shares rising over 4% in after hours trade and in the world of banking, what's old is apparently new once again. goldman sachs is bringing back it's junior banker promotions a few years after scrapping the
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two-year analyst program and the aim is to keep those employees within it's ranks by speeding up the path to promotions and also relieving them of some of the hard grunt work and long hours that often falls to these younger workers. our question to our viewers today, will ditching the work be keeping goldman's junior bankers happy? i assume pay might be part of this as well. e-mail us and get in touch via twitter as well. we're at cnbcwex or our personal handles. should they work their way up and take financial gain and promotions in the future. >> well, we had some viewers writing and david for example said that goldman thinks millennials need a healthy dose of old school hard work to balance out distorted me first mind set. >> that's harsh but maybe we are spoiled nowadays. >> an age of entitlement.
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>> and then i said well maybe no one should be staying up until 2:00 or 3:00 in the morning and shouldn't be doing powerpoint presentations in the first place and they have written in then who will do the powerpoint. of course they need to do it. maybe we can employ robots to do that. >> maybe something in the future. >> but i do believe though in nurturing young talent in order to -- just to make them tougher to get ready for the real world because it's not an easy world out there, right? i think. you're a future mother. how do you want your child to be treated? >> i wouldn't want my child to be up burning the midnight oil and losing -- only getting two or three hours of sleep. but hard work ethics of course. i would be pushing at a but the balance has to be right. >> do you want them to be a banker? >> we had a long discussion about that. probably not. nothing in the financial services field. that would be better. >> see that's exactly why goldman thinks they need to up their game. a lot of people are moving away
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from banking. >> tech. tech would be a great place. we'll see what he or she does in 20 years. quick look on european markets we're a little mixed. ftse 100 is flat. xetra dax. some caution ahead of the nonfarm payrolls report. quick look at european markets this week. the cac is up by 1%. the dax again little change and the ftse 100 also staying close to flat line. >> okay. we're going to go to break here. going to the second hour of worldwide exchange and yeah that's beautiful rihanna. profits are falling at puma but the group is confidence. creative director rihanna is boosting it's female business. stay with us on worldwide exchange.
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>> hi, everyone. happy friday. welcome to worldwide exchange. >> these are your headlines from around the world. >> friday, so yes it is time for the jobs data but is it the data or the date that will determine a rate hike? the latest u.s. jobs report is set to add more clues to the timing of a fed move. >> disney's force awakens as cable delivers better than expected returns and the ceo tells cnbc hopes are pinned on another blockbuster franchise. >> on the eve of our first star wars movie we're feelioo

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