tv Street Signs CNBC May 11, 2016 4:00am-5:01am EDT
♪ good morning and welcome to "street signs." i'm nancy hulgrave and these are your headlines. the bold giving way to the bears with european shares in the red despite the strong state side, we saw the dow in the best day in nearly two months. a bad add vert ticement for jc. and a blast from the past,
french makers swings into a profit in 2016. we speak with the ceo first on cnbc in just a few minutes. toyota warning of a 35% drop in four-year profits and announcing a buyback of more than 100 million shares. good morning, and welcome to "street signs." let's give you a straightaway at the european markets, one hour in the trading session we have seen weakness across sectors, overall, the stocks lower by 0.6%. we were slightly higher. a bit of a retreat here with investors, focused on oil. we got the big rally state side yesterday. now we're seeing oil prices peel back. and despite strong performance for european equities yesterday.
let's give you an idea how the u.s. closed. u.s. investors cheered the price. we're looking at individual stocks. the dow, s&p, goldman sachs, ibm having a major influence. with the best performance in nearly two months. you can see the nasdaq higher as well by 1.3%. this is good news for investors as well as other markets recently. meanwhile we want to bring you up to speed with some of the top earnings numbers here in europe. al stom announces it's debt-free. and a record intake which put the company on track to meet its 2020 target. joining us live from paris i'm pleased to say it's henry, the ceo from alstom.
thank you for joining us, a strong set of results. i want to get straight to your record order book. we're looking at record order book, record backlog. tell us where it's coming from at the time where global growth has affected. >> good morning. i think this is the proof of the soundness of our markets. one of the major challenges for most of the cities around the world. we had a very large order in india. and as you know, we have ordes s across the middle east. which are impacted. on behalf of their priorities. >> let's talk a bit about the
fact that you're debt-free. on the surface this is perceived as good news. if i'm mario draghi sitting back in frankfurt, my question would be why sit back in time when desperate for european corporate, why not taking advantage of low rates. >> i think fundamental, long-term equities, long-term projects, and a very strong balance sheet. so a very strong balance sheet is extremely positive for day-to-day activities. in addition to achieve our 2020 strategy, we intend to invest in order -- worldwide, also in order to boost our gross acquisitions. so for the debt situation, it allows us to take the balance
sheet to improve and further accelerate our strategy. >> does that suggest you expect to take on more debt through as you step up that investment? >> i think that is a possibility to invest in the coming years. either in this or to invest. >> what does this level of investment mean for your margin, you talk be about innovation, trying to meet the demand of countries looking at your fuel efficient and innovative products. what do you expect for margins going forward? >> well, looking at 2020 a margin of 7,000. we have moved this year from 12.8 to 5.3. we're leaning in the right direction. this is a combination of improvement of our mix for the first time, also, and below 50%
of our global activity. so the improvement is contributing to this. in addition, we are putting in place a number of initiatives. and part of them are cross predictions, part of them are innovations, but also targeted towards improvement of our products. >> and you can tell us a bit more about your dividend plan. you said today you will not be proposing a dividend. when do you expect a dividend? >> well, clearly, as you said, very specific, for this buyback program, so we're not going to be soliciting dividends this
year. in the future year, we're going back next year to the dividend policy. >> and finally, sir, if you could just elaborate on what you said you're potentially looking at acquisition as a way to grow. can you give us more information on specifically what type of acquisitions you're currently looking at? >> well, our first target is to grow by acquisition as we did this year, actually, where we go to the company in sweden, where we go in the uk. and so we're going to reinforce a partnership like we did in kazakhstan. and across the world. and most services and assistance. so this is the first priority to boost it. >> i do want to get your views
before we go on the political situation happening in france. you know the government has measures to push through labor reform. they'll take it right to the senate. as one of the major employers based in france, what is your view on this. is the country in desperate need for labor reform? >> i think, in france, all activity is quite cyclical, we have some ups and downs depending on the contract. sometimes we're underdeveloped and overdeveloped. and for the most flexibility as possible. in terms of job regulation. >> all right. we will continue to watch that situation protest happening overnight there in paris. sir, thank you for joining us and talking with us in detail. the ceo of alstom.
>> let's give you another view of jc decaux trading at the bottom of the stoxx 600. the sellup of the french outdoor advertiser was prompted by a slew of price target cuts. this on concerns over valuation. analyst team pointed to disappointing guidance and a slower than expected rollout of digital panels. you can see that stock 8.3%. we also want to bring you a check on deutsche post that has reported first quarter ebit at 879 million euros. that comes ahead of expectation. that is largely thanks to the growing economy market for the international express business. the company also reported it's on track to meet the full-year target. and on retail space. metro second quarter ebit hit 11
million euros for a loss of 6 million. the german retailer posted a rise in sales in the domestic market especially on cash and carry. metro also confirming its targets. aeon has reported an 8% rise in core earnings, that was thanks to a one-off price deal with gazprom. it's been under pressure and apriling for a spinoff this year. meanwhile, the utility giant said it will not announce a capital increase as a consequence of the government's nuclear funding proposals. well it's time to get a check on how markets in asia are faring. sri jegarajah is standing by in singapore with the latest. cy. >> in the asian markets, it
tells me that it's still cautious, fragile, box of the external picture. we are not seeing a convincing rebound in export growth. by debt situation in china, were start with moody's, 280%. that's gdp. we continue to see some disappointment with the earnings season and also with the guidance from those companies that are sending in their report cards. on the posted side of the ledger, the pac up by 4%. and it will be arguably a safe pair of hands in terms of policy continuity. you look at the reform program and continuity there, a lot depends on the type of craft that he surrounds himself with to implement the structural forms that they have enacted. there are issues related with his mandate, given the fact that
he didn't win a sizable resounding majority. and is this a big problem arguably given the fact that he wants to rewrite the constitution. but not a great deal of conviction that in these markets underlying sentiment remains fragile, nancy. >> we know for the japanese, touched on toyota in focus today. overall, the carmaker no surprise here, putting the brakes on guidance when it come foss a strong yen. they're expecting a 35% profit as a hole. as the stronger currency takes its toll. meanwhile toyota announced plans to buy back 500 billion million shares. no surprise here, when we talk about toyota warning on the stronger yen on the export market. interesting to see the exchange rate. well it appears we've just lost
communication with sri there. as we pointed out, toyota, yes, a strong set of results reporting but it's the guidance when we talk about the strong yen and we continue to see that as we get reports coming out of tokyo this week. get in touch firstname.lastname@example.org. you can bring them here to the set as well. get in touch on twitter, show handle is @streetsigns c. cnbc. a kerfuffle, over queen elizabeth saying chinese official were very rude to the ambassador. david cameron in hot water after this. we've got the nigerians.
good morning, welcome back to "street signs." italian banks once again the focus to earnings spotlight in milan. we're hearing from the banca in milano. the bank set its short term would be there with the ecb to concede that deal. shares up 7.4%. meanwhile, banco popolare with a 77% slump in trading income and tough market condition which is of course have hit all of the
learneds there. meanwhile higher interest rates helped mediobanca with profits. that wasn't enough to allay fears over the bank's core capital. the ceo said he was satisfied with the results. >> excited about the first q numbers and the net profitability. it's better than expected, even discounting two of the big for 50 million uros. satisfied about the business progression volume. for the deposit of the loans. for the first time, seeing the first time the stock is increasing even though we're keeping the leverage to the bank. satisfied about the volumes of deposit because of these
activities. satisfied about costs even though we think we can improve to month. and a positive surprise for all is llm cost of risk far below expectation. >> that was the unicredit ceo there speaking out about results, with the morning stock option at 3%. here to talk more about the italian banking results is francesco, the banking manager. thank you for joining us. as we try to dissect this news. i want to start with the results of popolore coming out with better than expected. what does it talk about the conditions or restrictions of the ecb? >> one of the conditions of the ecb is to increase for a total
of 1 billion. yesterday, the ceo said is we're going to do another half, more or less. so, yeah, surprised not that much. let's be honest. the market is not taking it well. but there is another half billion of further provision to be taken. and also the increase is not going to happen tomorrow. it's going to take a few weeks more. so a large increase. bancopopolare at 1%. >> did it give the green light? >> the major is going to go on. subject to increase, the measure is going to be approved so we have to expect the closing later apparently. >> let's talk about some of the banks, larger banks, unicredit results came in a bit strong.
are investors right to be worried about this. >> yes, they are, as they are with deutsche bank. the regulation in europe is tightening for a time. and will be tightening. so you have banks, large banks like unicredit and deutsche bank that are struggling to keep the amount of assets low. as the assets inflate, and for effect of the regulation, the capitalization shrinks. we think unicredit is doing a good job. but yes, the capital positioning is tied to another comparable much larger margin. >> and do you think unicredit can meet this eventually 12% ebit 1 target? there are other options at their disposal, but can they reach their target? >> they have a lot of options. one will come to fruition
probably very soon, in a joint venture in asset management that should enable them to 25 or 30 points. yes, it's tough, it's tough. large banks are shedding a lot of assets. and companiy ies as part of the group. >> and unicredit when you look at their top competitor. >> it's one of the few stocks that we would probably recommend in the banking system. the suggestion is still hard for the next few months. we're going to have more mergers, more capital increases because the ecb tends to ask for more capital when you merge two banks. it's going to be a tough situation. we see a clearer investment
opportunity and credit in the banks. >> when we look at the selloff that started in italian banks at the beginning of the year, a lot of the fears have been driven by the nonperforming lows. we're told they're decreasing. is it enough and how much farther do we have to go to be at a comfortable level here? >> one thing, as a system, it appears that banks have turned the corner. in terms of the amount, yeah, they're decreasing. apart from one single exception where they're decreasing. on the other side, yes, the speed of the reduction is probably not enough. but again, you have to think that italy wants to improve seven years of growth. >> more wait and see there. francesco, real pleasure to have
you with us. portfolio manager at banor capital. let's give you another view of top movers here. we're looking at carlsberg where it appears the glass is half empty. they fell 3% to danish crowns as negative effects outgrow europe and asia. low single digit percentage growth and operating profits. the asset management arm of allianz pimco reporting 10.1 billion euro it's in first quarter. thus the group is expecting an improvement in income cost ratio in the second month. they're insisting that management is good enough to achieve a turnaround. tui has announced plans to sell its specialist unit in holiday plans, leaving just its main tourism business. tue reported a loss of 740
million uros in the first quarter. but reassured that they have a growth of at least 10% this year. goldman sachs now lifting its gold price forecasts. this comes on the back of lower expectations that the federal reserve will continue to hike rates this year. the bank also cited a weaker u.s. dollar. the group raised it's three-month billion forecast to 1,200 per ounce. just giving a check on gold prices as they stand. gold higher by 0.5%. again, gold prices continue to keep an eye on the dollar. let's give you another check of oil prices which continue to drive, present crude up many
0.9% and wti crude up 1%. we're seeing that coming off the strong gains there and that of course weighing on the european equity trade. also investors continue to keep an eye in canada on the lingering wildfire. it's now said that crude production is slowly coming back on stream as the wildfire moved away from ft. mcmurray. the fire continues to grow and changing course and headed towards a more sparsely populated area in the southeast. royal dutch shell is the first in the area to resume activity. while ambridge is also preparing to continue there. the questions remain over where and when it will actually happen. you don't want to miss this one. we'll be back.
good morning, and welcome back to "street signs." i'm nancy hulgrave and these are your headlines. the gold giving way to the bear with european shares in the red despite a solid session state side. we saw the dow and s&p put in their best day in two months. a bad advertisement for jc deceaux. the french media group suffers a downon weak guidance. but it's back in the black over at french train maker alis stom, sayi al stom, saying it's debt-free. >> we start the new life as i must say with a debt situation that allows us on the balance sheet to improve and further accelerate our strategy.
toyota falls victim to the yen strength, warning of a 35% drop in four-year profits and announcing a buyback of 100 million shares. good morning. and welcome back to "street signs." well, that rally we saw in wall street last night, it's fading globally, but let's give you a look at the futures to see how wall street is set to open today. you're seeing weakness across the board as well. no surprise art weakness in europe. s&p 500 called lower by 8 point, the dow jones called lower by 60 points and the nasdaq by 17 points. not all terrible for the open predicted today. let's look at the close. because it was nearly the best day in two months and all markets closed higher than 1%. we did see the likes of goldman sachs and ibm reporting double
digit gains there. and the oil price gain, abating here in the european session. the fed once again in focus, the fed president john williams saying it's highly unlikely that the u.s. would use negative interest rates like we've seen in japan and other countries. he aed that the low interest rates are threat to economies but that the u.s. is in good shape that in part by the actions of the federal reserve. we want to bring you data coming out of the uk here on manufacturing and in industrial production. well, we've seen some areas of weakness of late. just on the industrial production, we are getting an increase of 0.3% on the month and that was forecast to come in a bit higher at 0.6% on the month according to dow jones. slightly higher expectations on the industrial production. for march. on a yearly basis, annually
decreasing 0.2% that compares to a forecast for 0.5% decrease. now, looking at the manufacturing of the component, we did actually get a increase of 0.4% and just shy there. on the year, it was a decline in manufacturing output of 1.9% on the year. and half a percent annually. concerns for manufacturing and industrial production. we want to see how the bank of new england will react to this tomorrow. if we can just get another check there on the sterling trade. the absence on sterling weakness now off 0.2%. nearly, against the greenback. meanwhile, it is big in the uk, david cameron has already insults both nigeria and afghanist
afghanistan. >> we had a very successful meeting this morning. wie got the nigerians, we've actually got some leaders of fantastically corrupt countries. >> and nigerian response that we received here at cnbc with the nigerian presidency, a source close to the president telling cnbc, quote, is this embarrassing to us, to say the least, given the good work that the president is doing. the eyes of the world are on what is happening here. the prime minister must be looking at an old snapshot of nigeria." joining us here for reaction is casey koseau. thank you for joining us. undoubtedly an awkward moment for the queen.
the papers are covering it. somewhat outrage. the big question is, is he right? >> both are perceived by the world as being corrupt. and they're taking care of it. the prime minister, perhaps not the best host but he is pushing forward with an initiative that's never been taken before. you see g-20 have tried to address corruption. g-7 and g-8 have tried to address corruption. >> and from the president of nigeria, the new president is doing his best, and you heard the archbishop coming to their defense as well. is that accurate, do you see a change coming out of nigeria? >> there's a lot of changes from nigeria and across the african continent. it's a major issue for all african leaders and i think now the issue, there is across the
globe, about 5% of global gdp. $2.6 trillion that's a drag on global business. and a lot of that money is coming out of africa, nigeria, algeria, south africa. >> has this impeded the process at all? >> i hope not. because it's not one single issue, one single country, the word is comprehensive, we're working together to get a group of progressive countries together. >> i just want to interrupt. we are getting breaking news. the metro police telling cnbc there is a suspicious package on a bus area and they have evacuated an area while they deal with it. a statement is to be released with updates on the website. the met police in london are investigating a suspicious package on a bus in highbury
area. we will get more information to you as soon as we can. casey, as we continue to watch developments on that one, i want to go back to the corruption that is taking place. what do you think the objective out of the summit should be? >> there's three ps. prevention, punishment and protection. on the prevention side, for the very first time, we're talking about public listings of who owns these companies. it goes into the secret companies where it goes offshore to british virgin islands, hong kong, other places. >> you mentioned the british virgin islands. they said they were not invited to the summit. is that a mistake? is it better to bring the appears to the table if you want real change, dauor do you think it's the right decision? >> i think it's an opportunity
to bring those progressive minds -- those on the trend. there are a lot moving forward with transparency and trying to figure out who owns the secret companies. and if people don't want to show up or if they send lower leaders. i don't think putin is going to be showing up in london recently, today or tomorrow. then you have a nucleus of world leaders that make a decision that stick. so, yes, it's not a mistake. it's going to move forward. >> part of the cameron comments that were concave, is that a haven for this corrupt activity? >> in particular, yes, transparency has looked at those real estate companies that are under suspicion for corruption, 75% of them are owned by offshore companies. so they're trying to disguise in london alone how much money is being invested into real estate. so, hopefully, out of this summit, not just the uk will have a public lifting, but
places like south africa and nigeria will have public listing, where the owners, who owens and find out the corruption that has been invested. >> all right. casey, a real pleasure to have you with us. that's casey kelso at transparency international. meanwhile the enter continental change as i.c.e. being used as a front for organized crime. i.c.e. said it's cooperating with police in the runup to the anti-uk corruption summit. saudi said it will boost part as part of the oil giant's plans that includes the world's largest ipo. let's get out to hadley. >> good morning, nancy.
a lot of questions sur rouvnding this ipo of saudi's aramco. the big question can they meet the demands of investors, can they be as transparent as possible? they only answer to one shareholder, the government and ceo of saudi's aramco, they're up to the challenge. and a lot of speculation about which city they're going to, london, hong kong, riyadh, all of them touted as possibilities. the big question for the ceo, of course, he said he's very hard at work with an internal team there at aramco trying to make that decision. they expect that decision to come sooner than later. another big question, how you put the value on a company of that size. i asked the ceo and president. take a listen. >> saudi aramco, as you know, in reserve base, to $261 billion.
if you look at gas reserves we're talking about 210 to 98 billion of gas. you're looking at the capability of the company for productions cavity of 12 million in gas. we're looking at the cavity currently close to 16 -- the capacity, but not the productions. the production is around 11 for 2016. so it's a huge size company. now, the valuation of the company will all be depending on the fiscal that will be established and shared. and based on that, it will be decided. >> so, we've got some incredible numbers there, 10.2, 10.3
million barrels there. pretty big numbers there. we got the chance yesterday to take a tour of the aramco headquarters. and let me tell you, some incredible toys were on display. one of which is a 3d model of glasses to watch. which shows you how they dig for oil and find that oil. a lot of fun yesterday at aramco and taking a few minutes to talk to the president and ceo. >> thank you for bringing us that report. you can head online where you can find out more about how saudi aramco plans to pittsburgh internationally competitive. meanwhile, bernie sanders topped hillary clinton in tuesday's primary extending the nomination process. nbc's edward lawrence is standing by in washington with the very latest. hi, edward. >> reporter: good morning, nancy. the west virginia primary was yesterday. boy, the outers ran away with
it. senator bernie sanders got 51% of the vote. 36% went to hillary clinton. she was never expected to do well in west virginia because of something she said a few weeks ago moving off coal energy. she said she's going to put a lot of coal companies out of work. she's going to put a lot of miners out of work and that took offense to voters of the west virginia. because west virginia is a mining community. she was never expected to do well there. on the republican side, donald trump ran away with it after her two competitors dropped out. he got 77% of the vote in west virginia. they also had a republican nebraska primary. he got 61% of the vote there. running away with it. he's the presumptive nominee on the republican side, nancy. >> another big victory with donald trump who said he's getting closer to picking a vice
president. we understand he's got a meeting with paul ryan coming up. >> reporter: the house speaker paul ryan said, i want to quote, we shouldn't just pretend that our party is unified when we are not. that is from sort of the leader there of the republican party. donald trump coming to meet with him to try to mend fences, he's going to show paul ryan that he is a republican, first of all, and that he's the right republican to be president. he's also going to try to convince other party leaders of that same message. donald trump and his representatives will be here today. donald trump will have that meeting on thursday. when it comes to vice presidents, donald trump said he's narrowed the list down to five names now he won't say who is on that list but he will say he will make his announcement at the convention in july. >> edward, to be a fly in that room with representative ryan being with trump. we'll have to look forward to
what comes out of that meeting. edward lawrence with nbc news. embattled president dilma rousseff has vowed to stay in office. in a last minute attempt to save that position, rousseff appealed to the supreme court saying the impeachment proceedings were politically motivated. if the senate votes by a simple majority to go forward with the trial, rousseff will be suspended from office for six months as of thursday. still to come here on "street signs," disney losing a bit of its magic touch as profits missed for the first time in five years. we have all of those details coming up neb. next.
back to "street signs." we just want to bring you an update out of comments we were getting from the met police in london. on a suspicious package on a bus. they now say it looks routine. and we're awaiting for the moment where the check for the suspicious package in london appears to be a routine check that the met police are carrying out. let's look at the european markets about 90 minutes into the session, we're seeing decent reads. it's not bad news, we had a decent top in yesterday's trade higher by nearly 1%. investors honing in on the pare back in oil prices. a lot of earnings on the upside as well as you can see the overall index up 0.6%. here in the uk the brexit debate continues to grow and it's not british to retreat to the sidelines.
this comes from gordon brown who said that cooperation with the eu is essential. taking a different view, conservative party veteran ian duncan smith tells me that staying in the eu outweigh the risk of leaving. >> uk will have a free market deal with the european union that's the whole part of the negotiation but the reality is, anyway, you know, the united states of america has no free trade deal with europe. yet, it's growth of trade with europe is far faster than the uk's. and most of our businesses are taking money out of the european union and putting it in places like america and other places because they think the return is better and business generation is better in those countries. so my view is simple, the fifth largest country, we'll do a deal with because germany and others and their products, my point is it's in their interest to do the
deal. and i think we will and i'm very optimistic about that. and all of these forecasts, forecast the very worse that could possibly happen overt next 15 years which is also itself quite ridiculous because we don't know anything beyond six months ahead. even that sometimes is beyond forecast. all you can do is have faith and your ability to deal with those situations when you make policy around the uk, not the other 27. >> those unknowns you just highlighted, that's precisely the reason why many business leaders we speak to at cnbc and other countries around the uk tell us it's their concerns. even if you have the arguments that some things may be better outside it's the uncertainty that's going to global markets. is the devil you know better than the devil you don't know? >> well, the devil you know is a devil in deep recession. the devil you know is a collapsing set of banks in italy. the devil you know is greece defaulting on all of its debt
with people unable to get health care. that is what we know. and what i'm saying is, it's only going to get worse, so the idea there's no risk in remaining in the european union is nonsense. there are huge risks for us as they legislate more and more and more to bind in the euro to make this a federal process. we will be affected by that. particularly as our economies don't do well, our trade is going to get worse. >> i also asked mr. duncan smith for president obama's response. >> no, not at all. secondly, it consists of one trade deal called the european trade deal. a know lots of american politicians i was over at capitol hill just a week before he made those announcements, talking to people across the board. i saw paul ryan, speaker of the house, there are plenty of decisions being made by people in america that don't agree with
that. >> you there have it, he's saying that paul ryan is a fan of brexit. let's talk to kevin byrne. kevin, thank you for joining us. i do want to get your view on brexit. but first, tell us a bit more about what checkatrade does. >> it's often where you look, oftentimes, you just don't know where to go. we interview tradesmen. we have 18 considers when a trade comes on board. from that point on they consistently monitor one of the most important person, which is our customers. we help them make a choice when looking for a builder or tradesman. >> we heard ian duncan smith
taking a big issue at the trade with the have and have nots. how concerned do you think they are? >> i think with a number of very concerned tradesmen and building has affected those. we did a survey with our members a month ago and we asked them has being part of the european union hindered the growth of your business. yes. if the figure came out 1 or 2%, but 20% said it's hindered it. that's a quite serious percentage. >> but on the other side you could say when you hear warnings of the ecb, saying brexit could cause households around 200 pounds. what does that mean for demand or trades when you talk about households? >> well, we will hear a lot of figures. we've heard a lot. we're going to hear a lot more. lots more from those who want to stay. and you'll not get an awful lot
of description for what the future will look like for brexit. i think it has to come down to me personally, do i want to be governed with unelected people in brussels. i'm a firm believer in democracy, and i believe that we should leave. >> when we look at activity, kind of a barometer of what's going on in the home market. perhaps people are holding on to their homes. can you give us an idea of demand? >> i can give you an idea of trades. it's very optimistic, a third of all of our checkatrade members last year, we asked them how optimistic are you over the next 12 months. 58% said they are really optimistic and they believe that their work will increase. 40% said they remain -- they will remain about the same. so there were just a few who said it would get worse. the trades are very optimistic. >> thank you for bringing us
that perspective, that is kevin byrne, ceo and founder of checkatrade.com. disney shares slumping over 5% in extended trade after the entertainment giant record a rare earnings. julia boorstin record this report. >> on earnings on share that came in short on wall street estimates for the first time in here. share investment grew 11% on the movie studio. it grew 27% and operating from 27% from a year ago quarter. the blockbuster "star wars: the force awakens" and zootopia, and talking about the films and many focused on espn and the impact on distribution and skinny bundles on disney's media business. iger saying that disney channel being included in packages are a
positive for disney that there are more similar packages in the works. >> we're also in discussions with a number of entities, some current distributors that are coming forward with new packages, and some completely new distributors, all have expressed an avid interest in having espn and our other channels included in our initial offerings. and we're very, very encouraged by the discussions/negotiations that we're having. >> iger also talking about potential to take disney's content and brands correct to consumers saying that disney's subscription service launched in the uk is a success and looking to expand it. iger also weighed in on the shanghai park starting up next month. but that the company is optimistic in also looking at other park extension opportunities in hong kong and tokyo. iger saying there are no updates on a search for a successor for him and that he currently has no
plans to extent his contract beyond june of 2018. but he says that he and the board are confident that there's plenty of time for them to find a successor. back over to you. shares of staples and rival office depot also in focus after the office supply chain said they would terminate the merger. following a regulator's request for a temporary halt. saying there was, quote, reasonable probability to deal with substantially impaired competition. staple's ceo said the company was disappointed that the lead wasn't in the best interest of shareholders. you can see they're off by more than 25%. and amazon hitting a record high on tuesday, closing up over 3%. this after bernstein raised its price target on the stocks over to $1,000.
bernstein is saying that the amazon margins will expand faster than expected. the upgrade came on the same dha the company launched its youtube business. allows users to post videos and earn royalties from them. the u.s. senate has opened inquiries on how facebook selects its trending news. this coming after criticism that the website routinely excludes news. now, a spokesman for the company said, quote, as we investigate, we will also keep reviewing our operational practices around trending topics. and if we find they are inadequate, we will take immediate steps to fix them. "". let's give you another check on u.s. futures, how markets are set to open after that strong performance we saw in wall street with all of the major markets closing more than 1% higher at the end of the day. we're looking at a bit of
softness. s&p 500 called lower by 6 points, the dow jones by 47 points and nasdaq by 12 points. and not rally coming to a halt in europe as investors take a cue from moves in energy prices. the ftse off 0.2 of a percent. that's it for our show. stay tuned to cnbc with "squawk box" with jamie dimon. first tune in to catch wilfred and sara on "worldwide exchange." thank you for watching.
good morning. it's the magic gone? disney shares plunge as earnings miss wall street's mark. no deal, new this morning, staples and office depot call off their merger after a federal judge blocks the tie. and ultimate valuation. the ufc is going to sell itself for as much as $4 billion. "worldwide exchange" begins right now. ♪ made you glad you came the sun goes down the stars come out all that counts is here now and now ♪ good morning, welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> and i'm wilfred frost. you