tv Worldwide Exchange CNBC May 3, 2016 5:00am-6:01am EDT
good morning, breaking overnight, a central bank shocker australia surprises investors with an interest rate cut. we'll bring you market rate reaction, straight ahead. not so fast, tim cook has a message for wall street. saying the iphone is not dead and neither is his company. plus, one of the greatest cinderella stories of all time. a 5,000 to 1 shot winning the english premier league. congratulations to leicester city this morning. it's tuesday, may 3rd. "worldwide exchange" begins right now. ♪ good morning, welcome to
"worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. let's bring you up to speed on the markets. about the best trading day for the last three weeks for the major three indices. yesterday, we are expected to give up the gains. dow low by over 100 points. s&p by 12, nasdaq by 31. looking at just 0.5% declines for each of the three major indices this morning. the ten-year note in the u.s., we're looking at a yield of 1.82%. news to catch up from overnight in asia, australia's central bank cutting interests rates to an all-time loaf 1.75%. this is the rba's central bank easing in a year. policymakers there say wage growth. decision was not expected by all. 50% of economists look for the move. the aussie dollar as a reaction
fell sharply on the news. though, i have to say, we warned you three weeks ago as we saw that deflationary measure out of australia thinking they are going to ramp up easing again. some some people are expected as you can see by the move, not everyone is expecting it. we already saw a big slide last week in the face of really poor inflation. >> let's show you how stocks reacted in australia overnight. and they closed with a gain on the back of that easing. well received by the market. as for the rest of the market, japan closed for the constitution day holiday but the japanese jen continues to gain ground. china's yuan performing overnight, with the state bank intervened for an increasing spread between the spot point and midpoint.
and other news out of china today, the manufacturer's purchaser's index shrinking for a 14th month. the major asian equity sort of a mixed bag. shanghai managed to throw up by a percent. >> quite surprising we saw the gains in shanghai, given the data out of china, the pmi worse from the official numbers on sunday. also the surprise that we saw australia so well because miners in london are suffering heavily. the minors reacting poorly. ftse down 1.75%. the banks out of focus as well. we've seen ubs reporting a sharp drops in profits and that decline. and we'll hear from the bank's ceo in 10 to 15 minutes and also
on the downside, commerzbank in germany. and hsbc reporting the decline. and it was up over 2% initially. this is quite a change in sentiment in the last hour for hsbc, albeit it's offset a lot better than ubs and commerzbank. french back bnp paribas with a 10% net profit even as taking a hit from volatile market. that one is holding ton gains at 2%. a lot of interesting moves to show you today. wti crude is coming off about a percent. brent, international benchmark down 45.43. it's down almost 0.9%. and gas pops higher. the dollar has been weaker. the weak dollar continues. euro dollar making the 1.16
level. charging higher. and dollar yen, those are the two pairs that we're seeing new technical levels being breached. despite the fact that those central banks are easing way more than the central bank. >> it's at a 15-month low for the broader dollar index. extraordinary moves. momentum line those trades even against the fundamentals being against them the momentum is very strong indeed. >> we'll keep an eye on oil which usually moves in the opposite direction, as the dollar, both are moving higher. gold is high as well. charged higher as the dollar has weakened. that's inverse correlation standing up 0.3 percent. this just breaking, eu trims its growth forecast from 8.1% to 8.9%. the eu inflation forecasts have also been cut. let's get on to corporate
news today. apple shares are on their longest losing streak in 18 years. found yesterday for an eighth consecutive session. this comes after the tech giant reported its first ever quarterly decline in sales last week. but in an interview with our jim cramer on "mad money" last night, apple's ceo tim cook calls it overreaction. >> when i read the stories it seems like people think it's over. how can it be you can't have this ever or the ecosystem but it's dead? >> yeah, i think that's a huge overreaction. look, we just had -- actually, an incredible quarter by absolute standards. 50 billion plus in revenue us and 10 billion in profits. to put that in perspective, the 10 billion is more than any other company makes. so, it was pretty good quarter. but not up to the street's expectation, clearly. >> and cook is still bullish on apple's key market of china.
>> here's what i see in china, we see in china, the middle class there is booming. so you look back just five years ago, there were about 50 million people in the chinese middle class. five years from now, that number's going to be almost 500 million. i mean, this is an as is unprec growth. >> i parsed every comment. you did not talk about middle class. which made us feel that something was wrong. >> no, it was my error for not talking about it. >> okay. >> i could not be more optimistic about china. i think the long-term thesis is in tact. there can never be anything in the history of the world. and i'm still as optimistic as i've ever been. >> cook tells us that companies love the product growth. i know we were watching it
separately, feeting about it almost at exactly the same time. the most interesting point compared to this the comments on china. >> i agree. >> i think it's important that was very much a long-term view that he was more positive. that doesn't change the answer before that sales declines have happened this year in china, down 70%. and over the years, 70% gains but the stock reacted to that he slowdown year on year last week. it doesn't matter that he's now come out long term i'm still as bullish as ever. i think people are still aware of that that long-term with a growing middle class, so, yes, it was a big powerful quote he just gave us on china. i'm not sure when you consider that is his long-term view, rather than his short-term view whether that changes the sentiment in the stock. >> this stock is in the middle of a huge selloff, eight days down, a losing streak for apple.
it's obviously a big deal. it's the biggest u.s. company that drags down the dow, nasdaq and s&p 500. a few take-aways for me, the fact that tim cook came on is a powerful statement to me. he rarely does interviews, kudos to jim cramer and the team, can you grow again, are you dead? that's the sentiment on the street. for cook to come out and say two candid thing, "a," it's an overreaction and "b," my bad for not communicating the china point on the conference call says something. i'm just saying you don't hear that very often from ceos of very powerful companies but clearly cook cares about what wall street thinks. >> definitely. >> he's trying to turn the message here. what else i noted on the interview in terms of the bullish thesis that cook gave on apple, india. we're seeing double-digit growth in india. kept making the point that they are not the lte mode with
phones. the switcher rate, those folks switching from android phones over into the apple system even in the united states and in developed markets which are called mature continues to grow in double digits in surprising ways they see that as an a way for growth. >> and i think it swings back into the next few quarters. i totally agree, great that jim got him on that tim cook cares about this. but just same saying it's an overreaction doesn't change analysts -- of course, he's going to say there's overreaction. i don't think it changes for the next two quarters. long term, okay, we've still got a good story. i think if we look back at the premarket trade, we've seen another quarter percent decline. i don't think it's changed the sentiment overnight despite contrasting quotation. >> you think long term, short term? >> yeah.
>> we want to hear from you, it's the twitter question of the day, apple's worst losing streak since 1998, tim cook making his case to kramer, are you a buying, yes or no? we've had hundreds out on social media this morning, the majority of you say no. we will continue to monitor the responses as they come in. in other tech news, starboard's jeff smith says he's gotten a warm welcome since joining the board. this comes after a contentious fight between the activists. ya hoo is in the process of auctioning off its cocore busin. and einhorn discloses investment in yelp. shares of yelp rising on the
news. einhorn also saying he's made money on gas and financial services delta lloyd. keeping with the hedge fund here, bill ackman with pershing square, fund down $18. the big driver in april, the embattled pharmaceuticals climbs. listen. >> the market is discounting companies where prices is a meaning part of the driver. this stock is only going from $30 a share from 120 to 270, we're going to build a great company. and build a company that gross, large on volume, and not based on massive price increases. >> and that helped valeant's stock yesterday. >> indeed, it did. and steven cohen is seeing one of his worst fears coming through. telling the conference too many
hedge funds placing the same types of bets contributed to sharp losses in february. he argues too many players are out there trying to do similar strategies. and if one big one goes down there's collateral damage. cohen says his worst fears were realized in february when his fund draw down eig8%. ete reportedly going to negotiate its williams deal. energy transand williams are in talks to give themselves more time to negotiate the terms ahead of a june 28th deadline for the deal to close. other stockings to watch today. aig reported lower than expected profit for the third straight quarter as weak returns from hedge fund income. and metrics showing improvement from caught cutting moves and restructuring announced last year. down 3.25%.
peter hancock will be on "squawk box" at 9:30. and anadarko posts smaller loss. the lowest dividend shedding more than $1 billion in assets. shares on ondeck capital set to open at record low after reported weak first quarter results. the company has guided 2016 revenue well below consensus saying it's selling fewer loans through on deck. we got other stocks to watch. a jury in st. louis has ordered johnson and johnson to pay $55 million to a woman who claims ewing the company's talc powder caused her to get ovarian cancer. the company is facing 1200 lawsuits relatesed to this product. the company does plan to appeal.
community health systems first quarter results falling well short of forecasts. the hospital operator reporting a decline in admissions last week. community helped spin off several hospitals into a separate company. tenet health care spun into eye afirst quarter loss as legal costs hurt results and a rise inpatient admissions. the company is standing by its four-year earnings. it's a lamb's day for economic data but we get the first glance at consumer demands. auto makes are reporting the april auto sales. sales rose industry wide to annual ways from 6.2 million in march. and the fed speaking today, meflter and lock hart. earnings from pfizer, adm, clorox and sprint at the open. and cbs, etsy and zillow after the close.
when we come back, shares trading lower. we'll here from the swiss bank's ceo. and first, david koch turns 76 today. he runs the company with his older brother charles koch known for donating to many political campaigns, mostly republicans. and the not supporting any republican comments and making comments that hillary clinton recently might be a better nominee than some of the republicans. happy birthday, mr. koch. "worldwide exchange" will be right back.
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i used to like that song. bank earnings putting pressure on european markets this morning. our julia chatterley joining us with the story on ubs after speaking with the ceo. julia, good morning. good morning, sara. as you rightly pointed out another tough quarter for ubs. the ceo describing low price action volumes pronounced risk aversion. and i got no real sense from him that anything is going to change. stark contrasts from duchl bank and bnp paribas as markets have rallied. what we've got is obviously adjusted profit before tax. and when i spoke to the ceo, he talked about the asset management business and said this is the worst quarter for equities in 18 years. the bright spot was the wealth management division.
29. swiss work of inflows which is great. but what do you do when clients with risk, you're holding huge cash balances and you're fighting negative rates. i'll tell you. you lose money. list ton what the ceo had to say. >> management is suffering. traditionally when you would see historically such a transaction of activity. clients would go into cash and a as a bank, you would make some money usually out of your deposits, right. in this environment, zero or negative rates you make no money or you lose money. and in addition to that, through the new regulations, you have used capital on requirements. so it's a double whammy. >> for that double whammy hits your capital too. we saw that in this quarter. t 1 capital coming in at 14%.
expectations have been around 14.5%. i think that's the second thing that investors focusing on here. jpmorgan has come out and saying they don't see any broader weaknesses. i think what you're seeing, tough quarter, guys back to you. >> julia, thank you very much for that. european banks more broadly, hsbc and bnp paribas. >> the ubs specific loss that she cited there is it macro? is it events beyond their control? or are they doing significantly worse than in of the other european banks given this environment? >> well, i don't think they're doing significantly worse. all of them have had tough head line declines. it's just where people come in. we've seen big declines, it's basically a little up. commerzbank is the one down more sharply today. they're not doing quite as well.
still to come, the race for the white house runs through indiana today but could anything less than a win be the end of the road for ted cruz. the story for the campaign trail coming up next. first, as we head to break, here's the national weather forecast and the weather channel's jen carfagno. >> sara and wilfred, on this tuesday, we're talking another day of potential storms mid-atlantic into the southeast. lightning with the thunderstorms and hail. many, many reports of hail came from the d.c. area back into parts of north carolina. today, the report should be less, in terms of numerous, but we will be looking at that chance for thunderstorms. meanwhile, drying out in texas, a dry day, even more houston. the west coast, we're going to see clouds moving in and the temperatures getting knocked down by 10 degrees in seattle. we were at 80. that is over. the cooling process begins against the heartland. that will be the warm spot for
well. >> thank you very much. >> reporter: senator ted cruz has drawn a line in the sand and it runs through indiana. >> indiana faces a choice, it's a choice not just for state, not just for the republican party but the entire country. >> reporter: he spent weeks in the state to try and unseat donald trump as the voters' favorite. trump still leads in the polls in indiana in double digits and didn't let up. >> i think he's crazy. honestly, i think he's crazy. lying ted does not have the temperament to be doing this. >> reporter: for democrats, senator bernie sanders says he will not bow out of the race, hitting hillary clinton again about money she got from wall street. >> you know what i think, if you give a speech for $225,000 for an hour's work or 20 minutes' work, it must be an unbelievably brilliant speech. >> reporter: clinton in west virginia, trying to persuade coal miners that she's on their side. >> but i'm going to get up every
single day trying to figure out what to do to help you provide the kind of future for your children that they deserve to have. >> reporter: indiana voters find themselves the next stop of a highly contested race. and experts say at this point, senator bernie sand serious trying to move hillary clinton's platform to the left because he's not likely to win the nomination. reporting live in washington, wilfred, sara. >> edward, thank you very much. big day in indiana. still to come, this morning's top stories including why tim cook said he could not be more optimistic. that and a lot more coming up on "worldwide exchange."
this year, we're extending our partnership with our friends at red nose day and global citizen. making it our most rewarding day ever... hands down. breaking overnight, another central bank surprise. australia with an interest rate cut. we'll bring you the market reaction. ceo tim cook has a message for wall street why he said the iphone isn't dead and neither his is company. and low on gas? there's an app for that. bringing fuel to your door step. it's 5:30 a.m. you're watching "worldwide exchange" on cnbc. good morning, welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost.
good morning from me as well. let's bring you up to speed on the markets. a decent day yesterday. in fact, the best in all three indices in three weeks. the dow down 99 points. s&p and nasdaq expected to open by 0.5% lower. the ten-year note at the moment at 1.82% earlier. and it's at 1.82 still now. in asia overnight, australia's central bank cutting interest rates to an all-time low of 1.5%. this is the rbi's first easing in a year. surprisingly low inflation, subdued wage growth and subdued outlook. as you can see the aussie dollar's sharp reaction falling more than a percent to the u.s. dollar. about 50% of economists polled expected this move today.
australian stock liking the easing and cutting of interesting rates, rallying more than 2%. nice gains for the aussie stock market. >> and as for the rest of asia, japan's market closed for the constitution day holiday but the yen continued to gain ground. an 18-month high against the u.s. dollar. another half a percent. 105.8. extraordinary momentum behind that weakness. china's yuan forming overnight. reports say state banks apparently intervened to a narrowly increasing spread between the spotlight and midpoint. other news out of china, the manufacturing processing index, the market, the official one, shrinking for a 14th month coming in below economic forecast, in contrast to official numbers over the weekend. the major equity averages as you can see, hong kong down 1.8%. closed yesterday. shanghai responding more to the
currency move than to the pmi data. australia rallying high in the face of that late cut. >> as for early european trade, a mixed picture, eye on that weaker chinese manufacturing data. also on earnings on the banks you say are rallying, the german dax down 1.2%. bnp paribas up 2. hsbc initially was up a couple percent when results came out. it's now flat. commerzbank and ubs both down significantly. one thing that the european stocks may be hating this morning say stronger euro past 116 past the dollar. that weak dollar taking its to, strengthening currencies everywhere which is bad for exporters perhaps why germany is getting harder than the rest. oil is also lower. wti price down 0.6%. it was down even lower about half an hour ago. perhaps some recovery into the
u.s. session 44.51 is the price. story is the currency market you're seeing a weak dollar notably it wasn't the japanese and the yen. there's the dollar yen, 1.0578. weak dollar across the board should be helpful to u.s. companies reporting tougher results on the back of the u.s. dollar. you have to wonder whether it's just too el for them to increase their forecast for this or if the market doesn't believe it's going to continue as the fed interest rate increases. >> yes, as we said yesterday, when you pair that with stronger interest rates, the fact that we haven't had more positive stronger guidance for the year-round off the markets. a look at the gold price this morning, right now we're looking at gold up by 0.3%. just try of 1300. >> that's flip side of the
weaker dollar, gold mains. minors have been very strong. in other corporate news, apple shares on their longest losing streak in 18 years. down yesterday for an eighth straight session. this comes are the tech giant reports its first quarterly decline in iphone sales last week. in our interview with jim cramer apple's tim cook call it an overreaction. >> when i read the story, people think it's over. how can it be you can't have this ever, or the ecosystem, but it's dead? >> yeah, i think that's a huge overreaction. look, we just had -- actually, an incredible quarter by absolute standards. 50 billion plus in revenues. and 10 billion in profits. to put that in perspective, 10 billion is more than any other company makes. so it was a pretty good quarter but not up to the street's expectations, clearly. >> and importantly, cook is still pretty bullish on apple's
key growth market of china. >> here's what i see in china, we see in china, is that the middle class there is booming. so you look back just five years ago, there were about 50 million people in the chinese middle class. five years from now, that number is going to be almost 500 million. i mean, this is an unprecedented growth of the middle class. >> but half this quarter, i parsed every word of your last few conference calls you did not talk about middle classification which made us feel that something was wrong. >> no, no, that was my error for not talking about it. >> okay. >> i could not be more optimistic about china. >> okay. >> i think the long-term thesis is intact. there has never been anything like it in the history of the world. and i'm still as optimistic as i've ever been. >> bullish words on china. cook telling kramer, the most important thing for apple long teller is that customer love the
company's products. the question is, does it change the sentiment on wall street for apple which is reaching actually historic levels in terms taf losing stretch. having seen it eight days down like this since back in 1998? >> yeah, i think that final point that we didn't have a clip for, him saying that people love the product. i don't think that's a new thing for the street to get their heads around. he's saying it's more of a services company that people are tied into the ios and continue to upgrade. whether or not they have a bit of a bag here, box it's an iphone 7 year -- >> which is coming -- >> -- that's a point, definitely to note. he's saying something. i don't think that's new, though, to the street. i don't think that's going to make them change their estimates. this china point say big difference as we said to the investments. and a big quote on twitter, zero hedge side, all retweeting that
quickly. they said that in the long term. it wasn't based on this quarter. he highlighted 80% growth in decline that last year. 7% decline. saying over the last two years, 70% is great. what analysts are reacting to is the fact that this year was not as good as last year. >> he did blame it on the macro wins in china and currency losses in china which he said a lot of people are experiencing. overall, i have a feeling on the next tim cook conference call, you're going to hear a lot about it. we asked on twitter, apple's worst losing streak since 1998. tim cook making the case to kramer. so are you a buyer? did you buy his argument on china, on the fact that they're seeing a huge number of switchers from android to apple? that they're seeing strength in unpenetrated markets like india? it's a much watched interview.
let us know what you think. so far, the answer is overwhelmingly no. >> and seeing about a quarter decline in market shares. no major reaction to that interview yet. we've got other tech news. uber signing up with ali pay. this will let chinese travelers request and pay for rides using the ali pay app. chinese travelers will be able to pay eliminating the dual currency cards or conversions. on today's auto sales, landon dowdy joins us. >> economists hoping apple auto sales will shift in higher gear. here's are three things to watch. sales numbers forecasters calling for 17.3 million units in april, versus 16.6 million unit it's in the previous months. there were five weekends in april.
second, sales performance, economists still say lower gas price, fuelling sales for trucks and suvs. april will be the 32nd straight month light trucks have outsold cars. recently, the gap has narrowed, there's still a strong market for cars. and the third thing to watch, leasing rates continue to break records, experts telling me that unprecedented levels have a major impact on the future of the industry, especially the used car market. also incentive will u.s. sales plateau as dealers are forced to use incentives? back to you. >> thank you, stocks trading as if this boom is auto sales have been over. the owner of fairway market grocery chain has filed chapter 11 bankruptcy. the company has lost money in every quarter since going public if 2013. as part of a prepackaged bankruptcy deal, fairway plans to restructure its debt and
expects to keep stores operating as usual. back in february, fairway said it needed to raise more capital to stay in business long term. it just shows you how difficult the grocery business is to keep the costs in line to profits. i think we both shop at a fairway in new york city. they're always crowded. >> yeah, i think food retail london is better than in europe. as we've seen pressure on both sides of the atlantic for quite sometime. to sports. after getting a draw to manchester united on sunday, manchester city had to play the role of spectator. hoping to tie tottenham to take down the title. spurs up 2-1 before chelsea fought back with the game tying strike with evan hazard in the second half. all that chelsea had to do from that point was hold on to clinch
the english premier league crown for leicester and former manager claudio ranieri. and when the final whistle blew, leicester fans erupted every in celebration. and the team celebrated at the home of the leading scorer jamie vardy. #vardyparty trending. and winning the premier league time 5,000 to 1 for the first time. it hasn't gone to a team, manchester city or manchester united, 5,000 to 1. >> why didn't you tell me to take a bet on this? you're supposed to be a soccer expert. >> there's lots of stories out there. 5,000 to 1. the same odds as people finding elvis presley alive. that's how much of a long shot it was. 5,000 to 1. >> i read in another piece.
the same outcome as bono becoming the pope. so bono just became the pope. >> and elvis presley is alive. what a day. >> who knew. congratulations to hi s ts r city. just totally remarkable. >> even i read about it and i don't read a lot about sports. unhads of celebrities hitting the red carpet for the 2016 met gala. hosted at the metropolitan art institute, this year's theme was fashion and age of technology. celebrities striking a pose as they strutted down the red carpet in their tech-inspired wardrobes. it will explore the impact of new technology on fashion and how designers are reconciling the handmade and machine made. the expedition is sponsored by apple and will be on display till august.
tickets for the gala, guess what $30,000 a piece. last year, the event raised more than 12 million bucks. this is all over social media. the outfits, people talking about the outfits the idea it was tech. >> why on a monday night? should be a weekend, shouldn't it? >> i don't know. maybe that's the tradition. winning one for me is zac posen, he made a winning one. >> leicester city is my favorite. let's move on. other trending news. a new app brings young -- sorry, brings gasoline on demand. the smartphone app dispatching drivers around san francisco yesterday to fill customers' tanks low on fuel. fuel charges per gallon rates. >> sounds convenient.
everything is going to be on demand. >> fuel is not something that you would expect to be delivered quite so simply. >> yeah. coming up today, the stories about a third party candidate to challenge donald trump in november should put republican hold on congress in danger. and it was on his day, 1973, the sears tower in chicago became the world's tallest building. 1,451 feet tall. it would hold that title for nearly 25 years now, it's called the wallace tower. it's the second tallest in the u.s. and the 14th tallest in the world. the burj khalifa in dubai holds it. we'll be right back.
welcome back to "worldwide exchange." today's must reads. to "the wall street journal," the third party temptation. this is the idea that republicans who are in the never-trump or anti-trump camp would nominate a third party. the journal says it is not worth it, quote, it's more likely that the dueling presidential candidates would put house and senate republican candidates in a perilous spot, do they support mr. trump or a third water conservative? if they are forced to choose, they could al nature through gop voters to ensure defeat. consider how gingerly mike pence, the indiana governor,
running for re-election this year handled this state's gop primary last week. the bottom line, it is not worth it because even if trump can't beat hillary clinton in the general elections, the republicans should still try to do everything to hold on to the senate and the house. >> absolutely. i mean, there's so many moving parts there. i wonder whether we get through today, whether that number of moving parts decreases. >> it's over. >> bernie still seems to be committed. >> yeah, absolutely. >> i don't know if indiana's going to actually end the story, but it might give us a big kind of clear point. >> depending on on it. front-runners both set to take it. we're approaching the top of the hour. that means the team is getting ready for "squawk box," joe kernin is in new york with a look at what's coming up. good morning, joe. >> good morning, wilfred. we've got tim armstrong for almost two hours, i think. and definitely one of my clients
is obsessed with yahoo! and what's going to happen with yahoo!. tim is now, kind of the guy, i guess at verizon, if that does become the eventual acquirer, i think that might come under auspices. i think they may be comfortable at verizon to handle the combined entity. we're going to talk to tim. i don't know how much he will say. is sara there, sara listening? >> yeah, of course. >> wilfred was at the correspondents dinner. tim armstrong was there. do you know who one of his guests he's bringing today, sara? >> i don't. >> jared leto. jared was at the white house correspondent dinner. i did not know he was going to be on the show. i needed to get a selfie with him. i don't know if you know this guy not only did he win an
academy award for "dallas buyers club" he's been the front guy -- >> i've been a jared leto fan for my whole life? did you ever watch "my so-called life"? >> i never watched it. they sold 50 million records. 50 million. then he takes off for five years and then become an academy award winning actor. and he's started startups, including uber. he's on the show. >> i know what you're about to say, your proudest selfie of the night was the one you took with me, right? >> yeah, yeah, wilfred. after watching the way like lady mary -- i mean she looked up at you like -- seriously -- why are you laughing? michelle dockery. she looked at -- plus, you should have seen him he was
tall, in a white dinner jacket. yeah, wilfred. i should have given him that selfie. what happened to that? was that your camera? >> yeah, i sent it. >> it was all blue, it didn't look normal. sara wants to go, go ahead. you got bigger fish to fry. >> hey hi to jardz led leto. coming up we'll get you ready for the day ahead.
causes may have actually started at the end of last week that's when dollar yen tested the a key technical level at 1.066. the yen is an unique situation. it's not only an indicator of financial conditions but it can also be a cause of that em. the yen as a funding trading currency gets too strong it can get people out of trades that are financed by the yen. even though the underlying investment may not have gone bad. therefore, the yen itself can cause conditions to weaken or in various markets that the trade is being used in. today, we're under 1.06 on the yen. today, because of the weaker data in china, the yen is doing both functions, it's not only an indicator of financial conditions but it may be causing financial conditions as well. >> the strong dollar and this week why haven't we seen clearer
guidance in the year ahead in terms what those two massive companies do for earnings? >> well, i think the oil, we've come down quite a long way. so, coming back up may help the industry. but in and of itself, it hey not be an indication, just like a lot of these commodity its, the base dmod eye itcommodities, lin orr have gone up. that may be a speculation of usage. i think we're kind of in a tricky period senators goes. and i think we would have seen a little bit better reaction in the stock market if those underlying are indicative of strong growth at this point. >> lou brien, thank you for joining us from drw trading group. to the question, apple's worst losing streak since 1998. tim cook making the case last
night. are you a buyer? 56% say no. that's it for "worldwide exchange." have a good morning. bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or at a bank of america near you.
good morning, breaking overnight -- central bank shocker, australia surprises investors with an interest rate cut. we'll bring you the reaction in the markets. didn't really help, though. apple's ceo tim cook has a message for wall street. the iphone isn't dead and neither is his company. cook's comments on phone sales, china and the economy straight ahead. we know why you're really watching this morning, soccer news. congratulations for leicester city beating 5,000 to 1 odds and winning the english premier
league. it's tuesday, may 3rd. 2016. and "squawk box" begins right now. ♪ >> announcer: live from new york where business never sleeps, this is "squawk box." ♪ good morning, welcome to "squawk box" right here on cnbc. i'm andrew ross sorkin. joe kernin. becky quick is off. she makes her way back from omaha what. taking a look at equity futures at this hour. dow looks like it opened up 122 points. nasdaq looking to open off 32.5 points and nasdaq as well down 14.5 points. in asia, interest rates to an all-time low of 1.5%. this is the rba's first policy citing lower inflation,