Skip to main content

tv   Street Signs  CNBC  May 13, 2016 4:00am-5:01am EDT

4:00 am
good morning everybody. happy friday. welcome, you are now watching "street signs" another. louiza b louiza. >> and i'm nancy hulgrave. >> very strong domestics demand but the data sent to lift the market. >> as the rough ride for retail continues stateside after nordstrom disappoints and apple almost relinquishes its title for strongest company by market
4:01 am
cap. >> and we'll see what steps the country is taking to tackle its mounting debt problem. good morning and welcome to "street signs." very happy friday to you and very happy birthday to louiza. >> yeah. celebration. >> and on that note we do have some data to bring to you. out of germany really blowing expectations. now data from italy with the preliminary first quarter gdp of .3% growth on the quarter.
4:02 am
on an annual basis that prelim figure is coming in at an increase of 1% year on year and that compares to a. >> still legging european countries. >> also some bright spots as well but unemployment still remaining a big concern. >> interesting our guests on the banks who were saying yesterday there is value to be found in the french banks because a lot of people are circling around the italian banks. the german banks as well and banks have been sold off so much. >> before credit agri coal yesterday.cole yesterday.
4:03 am
european equities a little lower. stox europe 600. our main european equity markets. all down at this time in the morning. and should we glance at the sectors as well since it is friday. basic resources, technology. utilities, all trending higher. insurance leading down. once again we saw weakness in the insurers yesterday. >> interesting to note in the sectors that auto is still in the red by some .7% because some set of rather solid results from european car sales which did rise 9% in april and this is driven by sharp growth in particular by daimler and bmw.
4:04 am
the germany auto maker saw sales rise by 21 and 11% respectively. in part due to a boost in popularity from mercedes and mini brands. volkswagen always in focus here. european sales, given the diesel emission scandal and they were returning to growth for sales on the month. healthy gains for others as well. continue to challenge europe's car makers is ford who's mustang has now become germany's number one sports car under private retail buyers. a trend we saw as well with ford and gm. i do want to say we also got comments on vw brand deliveries globally which actually slid 3.9% in april. we're also taking a look at honda this morning which has announced a quarley loss of 93 billion yen.
4:05 am
slumping from the same period last year. suffering from costs related to the air bag recall. despite this it is still forecasting 19% profit gain this year thanks to cost cutting. sri jegarajah in singapore. good morning. >> a loss for the january to march quarter. 93.4 billion yen compared to a profit. in the comparable quarter in the prior year of around 82 billion. once again you are looking at collateral damage from the takata air bag recall. balloons costs for honda and this is hitting honda hard because honda is takata's -- one of their biggest longest serving customers. the other interesting dynamic
4:06 am
here is that they are budgeting for and assuming a higher yen rate against the dollar. 105 according to honda. and compared to prior quarters 15, 120 let's say. disappoint earnings season. mining and metals weighted on the complex as well. and you can add to that yen appreciation. so all in all sentiment is pretty fragile in the japanese equities markets. we're in a holding pattern as well. a cautious holding pattern just ahead of the weekend. we get a lot of data. china data. that will test the market segment in week to come. there is a sense that deter day, president elect is really going to deliver some policy something
4:07 am
or other. >> sri, thank you. have a fantastic weekend and see you next week. here in europe bouygues is seeing sign of improvement. the group that owns france's largest private tv channel. confirmed it expects to improve profitability in 2016. >> luxury sector here. italian shoemaker has appointed a new ceo for july. poletto was credited with the fast growth of handbag maker --. joining a company which saw a 2.4% decline in first quarter sales as revenue in main markets after europe, asia and north
4:08 am
america fell. >> shares in eutel sat are down after cutting ebitda forecast. said it will present in july a new strategic plan after the deep re-examination of priorities. let's talk more about what type of strategy we should be looking at at the moment. james butterfill. executive director at etf securities. james, we were talking about the banks and we said to viewers we'd ask you about banks. why don't we start on that front. here in europe we've seen quite a bit of disappointment in banking stock performance. our guest yesterday was saying there are opportunities in the banking sector in france. do you think there are? >> certainly on that perspective
4:09 am
they are attractive. mixed earning season for banks. encouraging thing is non performing loans fallen substantially. they were around 10% last year. fallen to 8% this year. and they have peaked at 13%. so it is a very encouraging trend in the banking sector in that respect. don't forget 8% is still much higher than the rest of the developed market which have on average under 3%. >> in general you talk how the first quarter has been weak for earnings in europe. >> quite unusual. the periphery has been fairly -- but germany and france in particular revenue where we've seen the weakness. earnings have been okay. analysts have been downgrades expectations and they have downgraded them from the start of the quarter to now by 9%.
4:10 am
so expectations are exceptionally low. and yet we've only seen 31% of companies beat expectations. so it is quite a disappointment. but if you look at across sectors you discover more internationally focused sectors such as tech and consumer. seems like with the exception of autos that is where the weakness is. in our view the resilience of the euro that's causing this problem. >> i was going to say that. when you talk about the euro level, of course the dollar has seen a winning streak here. do you think we're still going to see this resilience in the euro? >> the does tend to sell off after if first rate hike. and it is doing that. we believe they should hike in june but probably won't.
4:11 am
they will probably wait till september and that will lead to further weakness in the dollar and strength, unwanted strength in fact. cpi data in germany has been weak. they are importing deflation to some extent. >> domestic car makers. still valuations you could argue are cheap for some firms. some concerns other stuff. questions over whether we should see more consolidation in the sector. what is your view? >> properly, with the exception of other retail sectors. there was some pent up demand from emerging market countries. where the weaknessness of the dollar has let to some --. there really are the exception to the rule in terms of -- the rest of the retail sector being fairly weak. >> james thank you very much. executive director at etf
4:12 am
securities. e-mail the show. get involved. questions or comments, want to participate, you can find us on streetscience europe dotcom. >> @"street signs" cnbc. >> we're taking a closer look now at the political environment in spain because the country is heading back to the polls for the second time on june 26th. this after december's inconclusive election. in a bid to break that deadlock. formed a leftist alliance with smaller rival which could see them overtake the socialists to become spain's main opposition. the polls shows any party would still be short of an overall
4:13 am
majority next month. >> cat loanialonia, something something something. >> the political situation in spain is very surprising and generates worries not only in spain but in europe. and i believe the incapacity to govern the complexity and find smart solutions creates many worries and i don't see it as good news for the economy or for the politics in europe. >> do you think flesh elections at the national level are change anything? >> the reality, that's my impression, is that all will remain the same. when it comes to catalonia,
4:14 am
things will be exactly the same and there will be a government that won't be able to make any proposals for the situation in catalonia. i spoke to the different spanish political leaders and none of them gave me the impression that they wanted to move forward. >> we'll come back to the question of catalonia which has been a stumbling block in the coalition forming. but do you think acting prime minister should step down? should he let the people's party have a new leader? fresh perspective? >> translator: i'm not going to speak about what the popular party should or shouldn't do. in reality in this moment catalonia politics already take decisions in a sovereign way, independently from what happens in the central government or spanish parties. undoubtedly ra joy has been a
4:15 am
problem but i don't see --. the french government a no confidence vote. prime minister said there were no plans to scale back reforms which he says will improve the country's unemployment rates. as thousands of protesters demonstrated across france. police fired tear gas. another round of strikes next week. still to come on "street signs." planting the seed. which german companies could be looking to take over monsanto.
4:16 am
thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business.
4:17 am
say they'll save youfor every by switching,surance companies you'd have like a ton of dollars. but how are they saving you those dollars? a lot of companies might answer "um..." or "no comment". then there's esurance - born online, raised by technology and majors in efficiency. so whatever they save, you save: hassle, time, paper work, hair tearing out and, yes, especially dollars. that's auto and home insurance for the modern world. esurance. backed by allstate. click or call.
4:18 am
monsanto battle mounting corporate woes. companies have declined to comment but the rumors did move them on the wires yesterday. we saw bit of a pop yesterday. basf off. bayer as well. >> interesting because you have
4:19 am
chem china taking over san gen that and team questioning because the chooibz. >> lot of regulatory concerns there. >> precisely. following a string of ipos in 20 2015, slowest start to the year since 2012. next guest is simona milarra. you're worried about the amount of money not put to work is at a peek now. you say $377 billion globally companies aren't putting to work. why? >> i think it's been such a benign fundraising environment that all the pe managed to raise very big funds. last year given the strength of the equity markets they have been busy exiting business and
4:20 am
monetizing and on the deal flow side they have all lost attention. this year they need to invest. the environment is not the easiest but they need to find way to put money to work in the public or private market. >> i tweeted earlier the figure and said that you were coming on. and people are saying that that's a really big number. do we have any idea where that money is going to go if it is going to be invested? >> where it should go? >> yeah. >> it should go to really buying private company, grow them, invest in them and exiting them. i think every private equity has their different investment strategy. now everyone wants to do big deals because it is easier to put big equity check to work but in an environment like this they are all being very opportunistic on geography, emerging market, where the growth is. but also on size of deal, they
4:21 am
are growing smaller. mid cap. even the big fans and they do a buy and build strategy. also public to private which were no go until last year are now becoming back in fashion. >> funny, you have to wonder if some of the hesitancy, concerns over the exit environment. a lot of the banks are still warning they don't know when the ipo activity will pick up. what is your best estimate. >> the market in europe has been open to oipipos. we are preparing to go to market. they need to be a bit more patient and bit more opportunistic. there are windows that can be topped that not like last year. they might last two weeks and then go away.
4:22 am
but i think we'll still see ipo activities in europe. >> that is for exits. what about mergers and acquisitions? we were just touching on one there that already some lawyers are flagging as this could have some serious regulatory concerns. somewhat of a theme with regulators blocking mega m and a transactions. >> last year some deals blocked for regulate reason or other concer concerns. there is a lot of work before these deals get announced by the bankers, lawyers and the fact that no one can really predict the outcome is becoming different from what we were used to. it is definitely an issue because there will be too much time and money spent.
4:23 am
>> if the amount $477 billion globally, again, huge human number. if that is put to work couldn't we also anticipate to see movements on the currency markets on the back of that? >> no i think what we'll see though is more opportunistic views of the currency market. i.e., when you have pressure to do a deal you need to raise financing you can't just rely on your home market. so we'll see european deals getting financed in the u.s. because the market might be more open in the u.s. or because of liquidity because you have bigger deal or vice versa. you might see u.s. deals topping the european market depending on timing. >> you mentioned the chinese. and their want to park money in -- well european companies and the u.s. companies as well. where do you think is ripe now for money investing when looking at the different regions. is the u.s. more ripe for money being put to use versus europe or is it vice versa. >> i think the u.s. market is
4:24 am
bigger and deeper. so when we look at the first four months of the year. the biggest deal happen in the u.s. on the sponsor side. you had the adt deal. [inaudible] these are billion deal that we haven't seen in europe. and they are actually quite unusual for the european market. i think when you think about global m&a and chinese demand, chinese likes europe because they like brands. they like names they can import in their home market. outbound activity something around 25% have chinese player and i think we will see even split going forward as well. >> simona, thank you very much. it is friday, have a nice day. enjoy your weekend. co-head of financial sponsors at ubs. >> shifting focus here. watching developments around swift. a second bank now has become the
4:25 am
victim of a malware attack. similar to february's heist which saw $81 million stolen. they did not reveal the exact amount effected or the name of the target but did say it was a commercial bank. >> we have to say no safe harbor anywhere. this from u.s. secretary of state john kerry speaking at yesterday's anti-corruption summit in london. delegates suppressed importance of combatting illegal activities to boost global growth and fight extremism. david cameron announced a series of initiatives including that all companies holding uk property have to revul their ultimate owners. asked about the count rice contribution to anti-corruption efforts. >> i think we have some of the standards that we have developed for the oil and gas business, for the work we are doing on oil
4:26 am
for development. programs in our development, have the focus on working how can we get the resources -- natural resources how can we get that into the economy for the benefit of all of people? i think we have -- on the other hand we also need to -- we need to understand all of us that we are part of the problem. because if our companies behave the way they say the locals do if they get involved in bribery around the world, then it is -- then we are part of the problem with krumgs corruption and by completing country for their own resources that they should have done development for instead. so we have a responsibility and have had a couple of norwegian companies fined the last year heavily because of corruption 10, 15 years back. but still i don't think any -- the say they are free of the
4:27 am
allegation that some of their companies or some of their officials might have had activities of that type. >> completely dupree that every company has some responsibility. there are some companies that seem more committed and others that seem less committed. is there a concern that the funds won't just flow to the weakest link and the system is only ever as strong as the weakest link? >> of course that is the big problem. that is why i think that secretary kerry's notion that there should be no safe hashers. there should be no place you could put your money illegally. it's part of what the drug dealers use to get their money through. it is part of everything that ruins the life of human beings in this earth. it is poison to our development.
4:28 am
poison to our market economy. and we should try to have more focus on fact saying that you can't -- if a country -- if a company is register themselves in a country that is not open and transparent we will not do business with you. >> it seems that this has come to the forefront of the global agenda because of the panama papers. and that was really an initiative of hackers rather than politicians. so how do we believe that the commitment really there? >> well this conference was planned before the panama papers. and the goals that the leaders decided on for the next 15 years of international development in september, in fact notes this as one of the really important issues to do something about it. so it is not just the panama
4:29 am
papers but it gives much more emphasis to this process and that is good. we need the journals working there. grassroots os working there. they need to pressure politicians. and the problem of course is that in a lot of countries the type of corruption that you can see is integrated into a culture that has developed for a long time in their political life. i remember some years back we had a group of journalists coming from ukraine to the parliament and asked who is my responser and i said what do you mean? which country are you representing in the parliament. and i said i'm representing the voters in my hometown and they couldn't believe me. and even media thinks it is impossible to have a clean society then you are in trouble and you have to work at the culture at the same time but media and politicians have to work together. >> how much do you know about norway's view on the uk's brexit
4:30 am
debate? you can hear more in the norwegian prime minister online. fwl. >> if the uk were to leave the eu they could have an arrangement like norway which still allows free trade but you have to pay for it, right? and norway still contribute and it will be very interesting to see. so head online. >> mateo sent in an e-mail. hello. while some british politicians are pushes for brexit in order to regain control i think one should not forget the uk is one of the most pufrl influential the. >> we talked about how the fears itself were effecting data. and we're now getting uk construction data for march. output overall slipping 3.6% on the month. that is a larger decrease than a 2.5% drop that was predicted by a reuters forecast. it also is much large they aren
4:31 am
the february drop we saw of 0.9%. and that again is the march destruction output coming in weaker than forecast. and overall if you look at the first quarter together it is about a 1.1% negative drop on the quarter and that compares to an estimate of .9%. so slightly worse in the first quarter. weaker than expected for march construction. the sterling dollar now 1.44. holding in that range but at the moment the sterling is off about .2%. >> we need to take a quick break. check out world markets live belong. running lout the day. cnbc.com and take a read on that. we'll be back just in a minute. stay with us.
4:32 am
4:33 am
4:34 am
this a as the rough ride for retail continues state side as nordstrom disappoints, while apple almost relinquishes his its title as the largest by market cap. >> auto sales slip. tokyo honda predicts big jump in profits but the air bag recall deflates q1 results. >> and later we'll be hearing from the reserve bank of india govern
4:35 am
governor. >> welcome back on friday. are you suspicious? we're trading a little lower. off by half a percent to almost 1% when it comes to the ftsi mib there. u.s. futures we're still hours away from the u.s. market open. but always good to get an early indication. a lot of you insomniacs in the u.s. watching us. the dow off by 80 points on the implied open. the cleveland fed president loretta mester said -- shouldn't stop the central bank from making monetary decisions. meanwhile her counterpart rosengren said the fed should be raising rates adding that markets there are underestimating the pace of potential hikes. then you have got the kansas
4:36 am
city fed presidentester george saying interest rates are too low for the current economy. crude highest levels since november. the oil majors in focus as well. shell among them saying they have within forced to shut a number of its wells in the gulf of mexico following an oil leak. the company says no one was injured in the incident itself but ab estimated 90,000 gallons of crude have spilled off the coast of louisiana. canadian oil sand producers warning customers they may not be able to fulfill supply contracts in the wake of wild fires which disrupted
4:37 am
operations. approximately a million barrels per day was taken off line during the height of the wild fires. meanwhile let's look to the latest developments out of brazil. the interim president michelle temer has urged brazilian people to try and restore their confident in the government saying he needs to unify and pacify the country. his speech just hours after the senate voted to suspend dilma rousseff. meanwhile dilma rousseff has called the impeachment process a fraud and a coupe. >> i have already suffered the invisible pain of torture. the distressful pain of illness
4:38 am
and now i suffer once again the equally unspeakable pain of injustice. what hurts the most in this moment is injustice. realizing that i am the victim of a political and judicial farce but i will not fade. >> and moving from brazil to the u.s. after days of build up. thursday's meeting between the presumptive gop nominee donald trump and the house speaker paul ryan clarified very little about the rift in the republican party. nbc's edward lawrence in washington. what are the takeaways edward? >> louisa and nancy it was no endorsement yet. that is the takeaway from the house speaker paul ryan. he says he's one step closer because he liked what donald trump had to say. trump was all smiles when he met. by all accounts, the meeting between the house speak, trump, and the republican and senate leaders went well. there were protests though out front but that didn't stop the
4:39 am
momentum of the republican presumptive nominee. now hillary clinton refused to comment. said she would have no comment about the republican meeting. however bernie sanders says the republican party is still very divided and in a general election he says they would feel the burn. senator sanders colleagues surprised he has staying power in this election. he's made so it hillary clinton can't stayocus on the republicans. most of the republican congressm congressmen we talked with were surprised their primary actually ended so soon. back to you guys. >> thank you edward. have a fantastic week and i'm sure we'll see you next week. >> donald trump known for strong opinions on many subjects and appears he won't be making friends at amazon. the nominee said the world's largest retailer has, quote, huge anti-trust problems. he added jeff bezos who owns the
4:40 am
washington post is using the newspaper, quote, so politicians in washington don't tax amazon like they should be taxed. >> at the same time george clooney said the republican candidates policies will slow him down. >> there is not going to be a president donald trump. that is not going to happen. it is not going happen because we're not going to be -- fear is not going to be something that we're gonna -- that's gonna be what drives our country. we're not going to be scared of muslims or immigrants or, you know, women. we're not actually afraid of anything. so, you know, we're not going to use fear. so that is not going to be an issue. india as the taken a crucial first step to speeding up its insolvency regime.
4:41 am
the breakthrough is expected to help tackle its mounting bad debt after two of the country's largest lenders provided unprecedented guidance on non performing loans last month. karen show is at chicago booth's european canvas in london. and joins was a very important guest. >> thank you for that. we're just ten minutes down here at the chicago booth london campus. where a -- in india. governor rajan joins us now. growing about 7 prnt 6%. similar to last year. mounting debt problems in the banking space and potential for more outflows if federal reserve lifts interest rates again this year. what are you most concerned
4:42 am
about? >> i think we're a recovering economy. and when you talked about structural reforms we've seen some actually play out of the last few days. for example we have a bankruptcy bill legislated by parliament just last week. we have a monetary policy committee which completes the framework, which was also legislated just last week. there are some -- there is some bad news also every once in a while but broadly we are getting stronger. now on the bad debts of the banks we are cleaning them up. they are in the process of recognizing some of the bad assets. putting them back on track. so my guess is this is a process but we will get through it. and the banks will be ready to fund growth in not so long a while. >> one commentator described the
4:43 am
toxic pile as potentially about $170 billion. the size of new zealand's economy. do you have a banking crisis on your hands? >> i don't think so. first i don't think the problem is that big. second, many of the bad assets. not all, but many of the bad assets are in public sector banks where the government fully guarantees them. so there is absolutely no chance that they will fail. there is absolutely no chance we'll have a lehman moment. it is really a question of insuring that the assets are cleaned up. investors have a good idea of the ambulanbalance sheet of the. and that's under way. i think this is a good process. >> can we draw another distinction for our u.s. audience about the difference between subprime and what you are facing. a lot of tycoons were lent money
4:44 am
through these big public entities. how does that alter the clean up task that you are facing versus whether the u.s. went through? >> first our is not a retail but a wholesale problem. and a lot of these problems wasn't because of corrupted lepidoor corruption. it was because to world changed. at a time when things looked really good. previous projects for example had been brought in on time with moderate levels of leverage. so with all of the optimism that surrounded the world in 2007, 2008 people decided to go with more leverage into areas where it is hard -- it would look like the last time. they would be able to deliver. and then the economy slowed. the world slowed. we saw even government decision making slow. and as a result costs went up for some of these projects. and what was earlier viable became unviable.
4:45 am
so they have stopped paying. now what we need do is restructure the debt f some of these projects. put them back on track. it is not that they are acres of real estate which are unoccupiable. it is actually a power plant which can produce power in india's -- >> should you privatize some of the banks? would that reduce some inefficiencies in the banking system? >> i think over time as we improve the governance and the banking system that can be addressed. i think at this point the real issue is clean up your balance sheet because it is hard to imagine a private investor coming in without clean balance sheets. also i think many --. now we have a bank board bureau
4:46 am
which has been set up primarily to distance himself from the government and make a number of governance decisions for the banks so my sense is we can do a lot without actually going to the point of prooifization. >> i spent time with your finance minister last week. he was saying he was attempting to firewall the indian economy from some of the external strains. you cut rates in april to 6.5%. >> there are always two sides to interest rate cuts. some people could argue that you firewall less if you cut substantially. some would make the argument that you are making. but i think the real way we are trying to firewall the economy is on the firsthand with good policies, including as i said the moves on reforms that have been enacted recently. the second is by trying to
4:47 am
increase the maturity of our debt so that we don't have this phenomenon of short-term debt running, which happened in our last experience in 2013. we have substantially increased the maturity of debt, external debt that we owe. and third is we've built up reserves. we have nearly 362, $3 billion rt worth of reserves. >> -- gdp isn't it? >> it was much larger than it was earlier. pretty much a reasonable number for us to deal with. it is not a first line of defense. first line of defense is good policies. you have to look at india and say where else will i go. and if you ask that question many people would say probably not a lot of other places. >> -- fairly critical about central bank policy and calling for more global coordination. some of us wondered whether that had hit home with the fed and the boj. both have been reluctant to
4:48 am
tinker with policy. do you think -- would you classify what we're seeing as coordinated central bank policy? >> i don't think, a, that i ask specifically for coordination. in the sense that some other central bank governor calling me up and saying is this okay? no that was not the intent. the intent was we have to create a framework of what is allowable and what is not allowable in terms of policies and policies that have large adverse effects for other countries should be considered with great caution. so i'm calling more for rules of the game in deciding monetary policy can't be what's good for me i'm going to do regardless of what the effects on the rest of the world are. i think central bankers are having a really heavy dialogue on these kind of issues, how far is somebody supposed to go or is
4:49 am
allowed to go? what kinds of policies are okay and what kinds of policies are not? so this kind of discussion, there is a healthy discussion about all of this. and i think it does have some impact on what decision to final -- >> do you think the fed should hold off on lifting rates? >> i think the fed can make its decision. it's been fairly transparent how it proposes do that. >> there is a lot of hate on you from the government, from the bjp about whether you should have a second term as governor. a lot of politics to deal with. do you like the job enough to take on the politics of a second term. >> there is a lot of fulfillment for making things actually happen for improving the environment. so i've enjoyed every moment of this job. >> if you left before another term or whenever would you teal like the agenda was only halfway
4:50 am
finished? >> it is a good question. i think we've accomplished a lot. i think -- i mean there is always more to do. >> thank you so much. great to catch up with you govern governor. fantastic interview there and definitely shrugging off some fears of the bank saying no chance of a lehman moment. >> many still arguing a lot needs to be done from within the european banking sector --. . it is interesting when you ask politicians whether or not they want to stay in office or the ones who've switched. they become teachers. professors at universities and many will say i'm really relieved to be teaching in front of a classroom.
4:51 am
>> take the pressure of. >> yeah. coming up retail therapy in need after disappointing earnings from nordstrom, macy's and gap. is it a bad omen for u.s. retail sales? we'll look at what economists there are shopping for . nude
4:52 am
4:53 am
welcome back. happy friday the 13th. ooh. economists are still forecasts a rise in retail sales data in april. despite disappointing run of earnings this week that saw shares in gap and macy's plunge. deutsche bank expects a soft
4:54 am
report. j.p. morgan saying the weak retail earnings aren't a good sign but there is ant big indication of a dropoff in spending. earnings season didn't end there though. >> the retail wreck continued with no relief for department stores. nordstrom shares tumbling after profit fell far short coming in at 26 cents per share when expectation were for 45 cents. comparable sales fell nearly 2%. and what's very telling is the difference between the performance and nordstrom's regular stores and website and its nordstrom rack outlet stores and website. nearly exactly opposite. comparable sales done 3.4% at nordstrom but up at outlet stores 4.6. kohl's first quarter earning and
4:55 am
revenue fell short. comparable sales, the most widely cited metric, fell 4%. like macy's the biggest drop since 2009. analysts expected a slight gain. historically it does impact kohl's competitors in part because it is an off mall department store. shoppers have to go there purposefully as opposed to part of a mall trip. last season unseasonably warm weather hurt sales. now the cooler spring is hampering sells of warm weather clothing. even with the quarter they didn't update guidance. and think it is unlikely they will be able to cut inventory and drive comps this quarter like they say they will. ralph lauren did outperform so
4:56 am
far. earnings beating by 5 cents and lightly outpacing expectations. comps for the quarter fell 5% but that was better than analysts forecast. shares did gain nearly 3% on the session. i'm courtney reagan. cnbc business news. >> keeping their eyes on that to see if stuff happens. meanwhile, google and apple. the race is on. alphabet briefly topped apple as the world's largest company. this comes amid a selloff that took the firm back to two year level since 2014. and as a --. which is a major rival to uber.
4:57 am
uber trying to take on the --. is apple just trying to boost presence in china. is it a financial play or a strategic play? but really what moved the stock were concerns over demand on iphone. >> important to notice about exxon mobile being the largest company until 2012. being the l company until 2012. a matter of time before alphabet may n maintains that top spot permanently.
4:58 am
4:59 am
5:00 am
breaking overnight. apple takes on uber. the tech giant investing one billion dollars in chinese ride sharing service didi. and amazon has a huge anti-trust problem. and wait until you hear what he has to say about jeff bezos. friday may 13, 2016. "worldwide exchange" begins now. ♪ ♪ you ooh ooh ♪ >> good in

38 Views

info Stream Only

Uploaded by TV Archive on