tv Street Signs CNBC September 8, 2016 4:00am-5:01am EDT
welcome to "street signs." i'm kathy ross. >> and i'm in answer si hungerford. welcome to "street signs.." one of britain's largest tech e. apple pulls out all the stops launching the iphone 7. wireless headphones and a new watch. shares in apple european suppliers do trade lower. mario draghi takes the stage amid speculation. he will have to expand the qe
program as the pool of eligible assets dwindles. >> good morning, everyone. you're watching "street signs." we're roughly one hour into the european trading session. adding on 0.2%. doesn't look like much, but sediment is pretty positive going into ecb meeting. not expecting mario draghi to announce extension of qe yet. see strengthening of euro. void by data points coming out of asia. export and import numbers from china. all that mna activity with micro focus leading the charge. have a rook at the marts one by one. ftse 100 up half a percent. once again this is primarily because of 22% gain. xetra dax up 0.1 pkts.
cac 40 up by a similar percentage amount. shares in micro focus leading the way today. they are in fact soaring 21%. after hue let enterprise announced merger. the deal sl around $8.8 billion. >> hue let pack card ceo megamitt man will be talking to u.s. colleague. a surprising deal. so many uk companies taking over technology assets. it's a reverse takeover. that leaves the uk with a big tech champion after relost one. we lost arm to softbank japan. this is really good news for uk especially after brexit. who would have thought such a big deal would actually happen
just a few months after brexit. >> good news for investors this morning as well. interesting you mentioned the timing with wrex. we hear from the company today. said look, we contacted hpe back in february. also giving more information on the financials attached to this deal. interesting he's pointing out that 400 million return of value to micro focus shareholders is to be paid upon completion. you're seeing the stock move higher as well. continuing to highlight some sipper apologies as well. good news for investors. meg whitman, we'll get more of that later. looking to spin off the noncore assets and the timing as well. emc and dell completing merger. brings together the two big
rivals. >> whatever is the now in this new company, whatever is left of ato autonomy and that was the ill faded acquisition. then we saw billions and billions of write downs. dwight interesting around hpe is not shying away from a uk company even though that i have had a bad experience with one. not all uk companies are the same. that was one very isolated incident obviously. in terms of the stock, give you a couple of numbers. see the spoke poised for best day since ipo. micro focus stock is up 50%. if you're a shareholder in micro focus this morning, good for you. good morning. >> certainly good news. >> tech a big focus again. let's get to that story. apple has unveiled latest iphone
model. without standard headphone jack. also released an updated version of the watch. apple has also delivered a super mario jump for nintendo. shares in the japanese game maker spiked 20%. adding super mario run to the apple app store. simple game will allow users make mario jump and collect coins while playing one handed. >> suppliers are trading lower. keep in mind this is also tied to samsung announcing its will sell 6.3 million shares. as we just mentioned we do have our own here around the desk for me reaction on the big debut. it was funny.
i was watching you tweet as the event was getting underway. at first you seemed a bit disappointed. at the end, there were more updates that medical opinin man >> this phone was i wenot groun breaking. it made design features. it's easy to dismiss this phone as not very innovative. you have to remember they use upgrating every two, two and a half years. perhaps customers looking at this device are on a 56 or 6. create positive momentum for it will iphone 7 for apple. >> the collaborations that were announced. the nike collaboration with the watch and then the nintendo affect. we're getting back to super mario. how important is this when you talk about bringing in consumers
because many are worried they're going to wait for the next launch. >> the key thing is the partnerships and launches were all around the watch. apple has seen watch sales dip. the overall smart watch has been disappointing. bringing in nike, saying this watch is something you can use as a fitness device. primarily coming up against the likes of fitbit or jawbone. bringing that gamification with pokemon. i don't know how much of an impact this is going to have on sales, but certainly appealing to a broader base of consumers. >> to what extent can nintendo actually monetize this. pokemon go was a huge huge boost in terms of pr essentially, but doesn't contribute much to revenue or bottom line. they only get a fraction of that. will that be different with super mario run.
>> that will be different. that ip is owned by nintendo, but it doesn't really contribute much toll nintendo. this mario run could contribute significant revenues to nintendo and more importantly creates a halo effect around the whole nintendo. >> we had singing and karaoke going on. do you want to imitate some of that. >> i've got to give it to the kim to tim cook. >> brilliant. >> appearance from steve carell as well. >> thanks for joining us. we were just talking about super mario as it applies to apple. and super mario in frankfort
hoping, but no expectations as the board decides whether to extend 80 billion euro a month qe program. with it expiring next march. see the central bank easing further before the year ends. good morning. >> reporter: good morning, na y nancy. that is the vocal point today. whether theyological extend the qe program as soon as dtoday or whether they do it later. one thing is clear, the great majority of economists are expecting an extension of the qe program. the young 2017 march because tapering is not an alternative. we have disappointingly low inflation for the month of august. we had pmi data coming in which
were like a surprise to the downside a baffle for the german market when it comes to the expectation of the service sector. so looking at the whole economic picture, it is more or less rather pointing at lag buster growth. we are far away from growth in euro zone. i think most of them head inside the towers of the ecb before the uk voted to leave the european union. let me bring you up to speed as well with the other topics here. another big interesting area will be the little tweaks they might announce to the quantitative easing program. central here on the agenda is the scarcity of bonds. here they could announce they might scrap the deposit floor which is not allowing them to dip into sovereign bonds yielding less and the deposit
ralt or they could abandon the capital key. this last topic is highly controversial and will unlikely. >> thank you for that report. joining us now here on the set. senior european fixed income strategist at j.p. morgan. pleasure to see you this morning. i didn't know in j.p. morgan you conducted this survey about what investors expect today. 30% are looking for action on scarcity. you think they may will disappointed. why. >> because we haven't seen the tim cal body langua typical body language from the ecb they're actually preparing something. if you look at the scene from brexit, it surprised everyone with both activity and market reaction being much much better than people expected. so we're not really questioning the need for more discuss to be delivered. we just questions whether today is the appropriate timing.
>> if it's got today, when does it happen on both counting on the qe extension and then something to address scarcity. >> we have both at the same time in december. there's a third option. we don't see that. our clients don't see that. we agree. >> address the scarcity issue. what do you think is most likely. as annette ta pointed out, you could change the capital key, cut the deport rate. >> basically the one most exciting in terms of potential market impact. we don't see it as likely. a very large deviation from capital key. we think tidealogical are stron. remove the floor. possibly allow purchases of bonds with maturities shorter than two yes.
there are many limits that the ecb imposed upon themselves. they can get rid of all of them if they wanted to. >> at this point in time, bonds in germany are sue septembscept at what point do you think we'll see that bond rally happening because there will be changes in any of the parameters. >> kbbased on the action you ge you're going to get a different market response. we got a taste of that in june when some media reported very hot on the capital key. you may get more flattening of the curve. you may get the opposite. in our view they're really forced to do a combination to remain as neutral as possible.
>> how bad is the scarcity problem the ecb faces. it's not just bonds we're talking about. >> there is a bit of an industry trying to estimate where the scarcity point is. the ecb lack of transparency doesn't really help. our estimates would suggest at the moment the ecb became safe run the program beyond march 17, but not much further. when you look at portugal, ireland, you have a similar play. >> thank you very much for bringing us that prove. senior european fixed income strategist at j.p. morgan. stay with us. we will be bringing you special coverage on decision time when we will cover everything mario draghi. we will have guest analysts around the decision and also through the press conference. meantime, richmond fed
president jeffrey lacker said the case for september rate hike is strong. lacker won't have a vote in this month's decision, but will take part in the discussions. at the same hearing, describing the labor market as near full strength. all right. e-mail the show. address is email@example.com. let us know if you have any questions for the guests. anything you see on the show. you can also find us on twitter or tweet our directly. >> we will be here all the way through. keep them coming. still to come, diction car phone's earnings beat estimate. we discuss after the short break.
let's stay with the central bank action. this as japan's economy grew at a faster than annualized rate. 0.7% in the second kwaert. figure was revised higher. let's check in on how asian markets are trading today. >> good morning. no gray shakes in the market. let's start with japan first. those pronouncements from the deputy governor of the boj did rattle sentiment somewhat. the fear and expectation we could see negative rates being pulled deeper into negative territory. that hits the banks. that hits sentiment. tells us everything is on the
table come the sfrcentral bank meeting later on this month. really behind the narrative is the tension behind the boj and the mof and structural and fiscal authorities on who really carries the can here. that correlation between dollar yen still strong. nikkei flat at the close. slightly lower elsewhere. the apple halo effect is wearing off. i think what we really need to see is all this technology associatesed with the 7 is really going to translate into sales that could move the needle on revenue terms for apple and also get us past peak iphone which a lot of people have been talking about. we need clarity from the ecb. let's get back to corporate action. dixson car phone trading. strong first quarter sales.
largest mobile phone and electronic retailer. group revenue up 9% year over year and ceo said the firm is seeing no, quote, detectable impact of the brexit vote on consumer behavior. let's devil deeper into those numbers with richard aundhunter good morning to you richard. little surprised still saying the brexit impact. post-brexit was one of the biggest decliners. at one point it was down a third. >> you're absolutely right and pricing today just over the last three month the share price has lost 13% so the spike this morning just begins to offset that. you're absolutely right on the basis of importing goods and weakness of sterling, dixson carphone was one of the stocks that got hit along with property shares and so on. offset against that as we're seeing on the basis of the strength of their overseas earnings, probably more of a
positive story there on brexit rather than negative story. i suspect the shares could have further way to go after this morning's mihike. >> the reason the stock does done some of the analyst notes said this company is nothing like the dixson it was roughly ten years ago. it's a lotless sick la cal. would you agree with that. >> i would. they've got geographical location. they have tie with sprint. already said 2016 is going to be an extremely busy year in terms of their corporate aims and objectives. not only that come 2017, the costs associated with the merger of dixon and car phone are likely to drop away. in 2008 we could see real cash flow. >> interesting to bring this
joint venture with sprint. carphone had a bit of a better experience with best buy. >> we anticipate something similar to what they're trying to do in the uk. no only riding the wave of smart devices and smart devices growth, but also this kind of expertise they're providing on a face to face basis. slightly unique in terms of availability, certainly in the uk. i suspect they will be looking to take the carphone experience rather dixon experience out of the states. >> still this overarching threat you can't ignore that faces the entire sector. that is amazon. how do they continue to compete when amazon is stepping up delivery ability. how does this game end. >> in terms of the absolute power of those two companies,
dixon is going to have their work cut out. amazon is all sorts of different ways starting to bring itself into the uk. that level of competition which obviously is not the sort of thing you would expect to be referring to in a trading statement and indeed he hasn't, but that level of competition is going to be one of dixon carphone's biggest challenges without question. >> this might be slightly left field. what do you make of the apple release yesterday. now it's facing slumping sales for revenue decline for some of its iphones for the first time since its launch. do you think they can reverse that turn around or reverse the slowdown. >> i think they can. they are masters are selling things you didn't realize you needed. when they launched the ipad for example. it did not make sense to have something halfway between a smartphone and laptop, but look at the success there.
the fact apple consumers rightly are kind of used to having to buy extra bits and pieces in terms of hardware. >> they also made a big push for gamers here when we talk about the announcement with nintendo, bringing back super mario. also talking about pokemon go on the watch. this hits at the fact players like nintendo are moving away from consoles and getting into software. how does this impact retailers such as carphone and dixson. >> should be good news. should be good nouz for apple always ahead of the curve. it's another fascinating space. it's one of those things with pokemon for example, six months ago no one could have predicted that would have come to market, but it would have been so successful. the next big thing is around the corner except we don't know what it is yet. >> richard, thank you so much for your time. head of research at wilson king
good morning and welcome back to "street signs." i'm nancy hungerford. i'm carolyn roth. these are your headlines. macro dpan for micro focus. cnbc will be speaking exclusively to hp ceo meg whitman. referendum rebound. that's the view from dixon carphone after first quarter revenue beats forecast. sending shares sharply higher.
apple pulls out all the stops in a bid to turn around the company's first drop in sales. shares in european apple suppliers trading lower. mario draghi taking stage. speculation he will have to suspend the ecb program as the pool dwindles. let's give you a shot straight away of how u.s. markets are expected to open. nasdaq hitting a fresh record high. apple contributing to some gains. a lot of strelkt in facebook. s&p and dow jones both called modestly higher after breaking some two and three day winning streaks on the session yesterday. nasdaq called higher just with
modest gains predicted at this stage. let's bring you up to speed where european equities are trading 90 minutes into the session here. a lot of investors waiting on mario draghi. individual corporate movers as well. likes of micro focus pushing the ftse 100 higher there. we're also seeing strength in dixson carphone after their results. meanwhile over on the dax, that is flat at the moment. french cac 408 higher 0.11%. italian main market pushing higher. >> we're close to eight month highs actually still. there's been so much buying that's been sort of a stealth rally going on. >> very stealth. it's interesting because yes, we did touch eight month highs briefly, but still on the week up until today relatively flat. it was the guest yesterday who said sit a sideways trade. >> it is. begs the question of how long sideways last. meanwhile the view of the
sector. banks enjoying bit of a bounce today. father or moth followed behind by telecoms. basic resources in the green. on the downside we're looking at weakness in retail, food and beverages, chemicals, industrials and technology basically flat. >> let's get back to stop story. shares in micro focus soaring after hewlett enterprise announced spinning off noncore assets and merging them. deal was worth $8.8 billion. speaking to cnbc earlier northern trust securities said the tie up will boost the company's profile. >> effectively, this deal brings them to immediate scale in terms of infrastructure software overnight. good deal for microsoft. exceptional for operations performance. >> meg whitman will be talking to u.s. colleagues. that's 3:00 p.m. cet.
>> internet has had to heavily right down one key holding. slashing the valuation of home 24 by more than 50% t. move comes as a result of its latest financing round for the furniture business. rocket internet came under recent pressure over concerns of investments. first loss due to a number of write downs in portfolio. investors selling off 4.6%. a reoccurring concern here. >> i remember i interviewed the ceo when the company listed on the frankfurt stock exchange even then there was criticism of the business model. really betting on one firm to do the breakout success for them. >> interesting you mention that. there was a piece in the "new york times" this morning calling the business model into
question. a lot of investors are concerned. negatives trading at 52 week lows. when you look at exposure to em. maybe value here. august travel fell with cargo travel falling 7.7%. this despite seeing a 1.9% rise in year on year passenger traffic. no change. that's the consensus for expectations from the ecb today as the board decides whether to extend it's 18 billion euro qe program. with the stimulus expiring next month, most analysts see the central bank easing further. let's get out to annette in frankfort. >> reporter: thank you. that's exactly what we are expecting for the remainder of the year. there will be some sort of extension to the quantitative easing program beyond march 2017, but when exactly they'll
announce it, that's not sure. whether it's today or not or what the big topics will be today, i'm going to discuss now with carson, chief economist of ing germany. thank you for joining us today. what are you expectations today? will there be a move. >> i don't think there will be a move. probably some warning there might be a further downturn and these people open the door for more, but then probably not in december, but already in october. >> looking at the technical tweaks, some analysts are expecting for today like lifting the so-called deposit rate floor or perhaps also abandoning the capital key which is more controversial. what do you expect? >> i think for october we could see they're going to drop the deposit rate floor. this makes sense. it will address the problem of scarcity. would enable the ecb to purchase more german bonds. that is necessary if they want
to extend the qe program beyond march 17 at least to the end of 2013. >> looking at the economic growth. it is as best lack buster in the euro zone. one of the usually v crucial elements is the exchange rate. they would never admit it in the big towers behind us. what can they do to lower the exchange rate. >> look at the other side of the atlantic ocean. wait for mrs. yellen to do something. they're unable to get the euro dollar below 1.10. we need to wait for the fed for the first rate hike and that would weaken the euro. >> talking about economic growth. one of the key new elements today will be the staff projections. what are you expecting? downward revision or slight down ward. >> the cut of data was two weeks ago when the world looked better. i don't expect lots of
revisions, but i think the governing counsel can take into account weaker numbers. i think they will be more negative on the outlook than the staff projections. >> thank you so much for your time. carolyn, sending it back to you. press conference takes place very interesting to watch again. >> thank you so much to that. looking forward to all those tricky questions heading mario draghi's way. meanwhile, hillary clinton and republican rival, donald trump set out cases for being the next commander in chief last night. in a back to back forum, the candidates clashed on one another fit tons lead the military. speaking about foreign policy plans, clinton pledged to keep troops out of the middle east. >> we are not putting ground troops into iraq ever again and we're not putting ground troops
into syria. we're going to defeat isis without committing american ground troops. >> meanwhile, donald trump praised vladimir putin saying he has been a stronger leader than obama. >> if he says great things about me. i'm going to say great things about him. ive said he is a leader. isn't that a very terrible thing. he has strong control over the country. it's a different system. i don't like the system, but certainly in that system he's been a leader far more than our president has been a leader. we have a divided country. >> joining us around the desk, hadley. it was interesting because a lot of the discussion last night centered at least for hillary clinton on her e-mails. yes, donald trump was pushed on national security, but when it came to isis specifically he stopped short. >> i think they both stopped short of really announcing any agenda of plan. probably lucky for them in the sense that if anyone had the key to defending isis we would all
like to know. hillary clinton saying they're not going to put troops into iraq. she's very loathe to say what we'll do in syria. what they could possibly do to work together to stabilize the situation in syria to take out the islamic state. there's an overwhelming desire from the american people, a research poll saying that 57% of americans really don't want to focus on anything other than what's happening at home. they want everyone else to sort out their own problems. you're seeing that reflected in term of the company. both candidates exposing the need to defeat the islamic state. if you're going to do that, you're really going to have to rely on allies and semi allies and that relationship with vladimir putin is going to become interesting. hillary clinton does not have a good relationship with the kremlin. he's the viewed with a deep
suspicion there. >> another poll, majority of noters don't have confidence in either candidate to be an effective commander in chief. that's a problem for both. how do they tackle that. >> it's a very good question. quite frankly what was interesting to me if you look at this in the broader picture, this was a debate held on the u.s. they're supposed to be speaking to members of the military, veterans. now you have 20 americans a day committing suicide as veterans. a lot of people unhappy with the va. how people are being taken care of post service time and none of that was addressed. much more about he said she said and about the e-mail controversy as well. she's really going to have to standby her record and in that sense, donald trump gets away with not having one yet. >> interesting you mention that hillary clinton is not pursued as having a good relationship with the kremlin. >> trying to be very hawkish. >> her opponent is too close with them. >> are they worried about drupt
being in putin's favor. >> at least half of the country is worried about that. you can see that in the news flow. look at what the international community how they view this. quite frankly, the folks i speak to in the middle east are telling me, at least with hillary clinton we know what's coming next in the sense this will probably be a return to a hawkish, but much more traditional american foreign policy. we know her, we know her record. really there's a hope there with regard to president obama really single foreign policy achievement which was the iran nuclear agreement, hillary clinton because she was a part of that during her tenure of secretary of state, she will actually be able to effect a bit more clarity when it comes to iran living up to those expectations. >> trump also said he wants to propose an end to the sequester. he wants to boost the military. we don't know what the price tag of that will be. fiscally, is that responsible? will he get the support? >> we always do a fact check.
all these organizations doing a fact check after something like this. one of them american enterprise institute said something like on top of military spending today, they would require 60 billion extra u.s. dollars to put this sort of plan that he was discussing into play, but at the end of the day, we are talking about a presidential candidate who in many respects wants to withdraw military influence from the world so why he would be upping spending at a time when he's talking about withdrawing a lot of american support abroad doesn't make much sense either. >> hadley, thank you so much for that. hadley gamble. key architect of trump's smap visit to mexico has resigned post. been on the job for over two years stepped down in the wake of the trip. president enrique pena nieto.
>> let's bring you some flashes. he is meeting with theresa may today, the first meeting of the two, i believe, since the brexit outcome. the goal is to establish the closest possible eu relations after brexit and that is something others will be watching keenly as we get closer somewhat to the actual negotiations with the eu. >> we're going to go for a quick break. bring you lots more on apple, investment strategy and also hear from president obama in laos after the short break. stay with us. it's scary when the lights go out. people get anxious and my office gets flooded with calls. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital grid manages and reroutes power, so service can be restored within seconds.
ftse 100 .5%. xetra dax now a little bit underwater. off 0.1%. so is the cac 40 essentially flat. also want to show you bond prices ahead of the central bank meeting. seeing a little bit of selling in the ten-year german and ten-year french uk paper, but some buying in the spanish paper. has just joined us around the desk. you say that volatility is just lurking around the corner and going to catch everyone out. >> we've had a really quiet summer. volume haves been down. markets have been benign. most of the economic news has been reasonably encouraging, but monetary policy is still dominating our lives as investors. ims crowding i believe dec inin rise. markets have told us when place si begins to appear, that's the time to get fearful.
volatility is hiding. it's not been suppressed. central banks may believe they can do that, but still finds a way of coming out. >> until volatility comes back, what's their choice in terms of what they can buy. they still want to get the yield and get growth out there. so tina, our old friend, there is no other alternative. we're still going to be buying bonds and equities. >> yes, what mr. carney said yesterday about praising his action on more qe driving up asset prices really tells you about the mind set this sort of belief in the central banks has gotten quite dangerous and does shape risk appetite. does lead us into taking more risk than we would take otherwise. this is particularly true in pension funds. they've got the double challenge of their liability soaring as central banks drive down bond yields and automatically pushing up deficits. at the same time having other markets stripped of return
potential so they're in a really difficult position. this matters because it has an impact on capital expenditure. there are a lot of very interesting influences going on underneath the surfaces that will bubble up as soon as we get a little bit of news that is not in line with expectations. >> it's interesting you suggest that central banks may believe in their own enip tense. what we hear in these meetings is the central bankers saying help us. we need help from the governments on fiscal reform. we'll expect to hear that again today. how concerned do you think he is when he looks at election risks in europe when we talk about the tlan referendum and upcoming french and german election and how concerned should investors be. >> that's a good point. today's talk will be setting the scene potentially for loosening of fiscal dogma. if you look at the euro zone since 2008, the budget deficits come in from minus 6.25 to
around 2% this year. that's a lot of tightening so well below the 3% so there's plenty of scope to allow a little bit of fiscal to come in. that's what draghi will be setting the scene and encouraging governments to do. now the big question is there a mechanism for the euro zone to expand fiscal balance. it would have to be done country by country. i think that's what they're hoping. they can maybe step back from the central bank. all the bankers we have a rock stars. it would be nice to see it quietly go back into the back room. >> i think they may prefer that as well to be fair. the only positive it comes at a time the u.s. is expected to start tightening. perhaps not september. some are saying december. does that give european equities an advantage. will we get to a point where we see jurpz equities outperform
the u.s. >> the news flow is more interesting. if you look at the corporate profits news flow, it's been better in the euro zone. actually quite positive about the news from european corporates. the euro zone is a little more cautious. the actual resent flow has been quite negative. had the fifth consecutive reduction no whole economy profits in the state. i think that's beginning to show as labor costs rise and labor gdp rises. classic late cycle margin squiez going on. i'm less certain the fed will tighten. i think they should have tightened more earlier so that they wouldn't be in a position of being caught with disappointing data. so balance the surprise in the second half is europe will outperform economically the u.s. that brings the speck terror of a weak dollar. >> that was the big boost last
year and sort of fizzled out and now seeing euro dollar at a two-year high. do you think it could still be a boost once the ecb boosts its qe again, extends it, and then it falls lower. >> if the ecb does more, the euro will go up and not down. we live in a world where the reaction is completely opposite what we expect. >> okay. just expand if you could on your thoughts on em which you just mentioned there because we have seen funds flowing back into em. are investors right to be turning bullish on em. >> it's a question of expectations got so dramatically low in january. i think where we were in january talking about an imminent u.s. recession. china was growing at 0%. we all got into a real funk on global growth generally. since then, the worst fears have not just not real. growth is roughly where it was
back then. for the em, the crisis that everyone expected just failed to happen. there's been some positives in terms of restructuring of economy. some of the currencies have rebounded, oil has rebounded. em has a big correlation with oil. they're in a neutral zone now. attractively valued. that puts them in a good position. you have to be selective. for example in asia or strategy is to favor good value sick la kills. >> there is opportunity for those willing to be selectsiive >> stock selection still rules the roost. >> thank you for joining us. private investment firm tpg has agreed to buy majority stake
in security unit mcfee. five years after intent acquired for $7.7 billion. >> liberty media has agreed to buy formula one for $4.4 billion. biggest deals in sporting history. remain the racing group ceo while vice chairman of 21st century fox is to step in the role of chairman. let's get back to top stories. shares in mike micro surface soaring. surging by i believe more than 22% this morning. on a programming note, hewlett packard ceo meg whitman will be talking to u.s. colleagues.
apple unveiling latest iphone model complete with a shiny black finish. without standard headphone jack. air pods will be used inside. apple also released an updated version of watch. cnbc josh lipton was in san francisco for the big launch and filed this report. >> reporter: revolution new product. tim cook unveiled the 7 and 7 plus today in front of a crowd of apple die hazard in san francisco. new phones have upgrades and one noticeably absent feature. eliminating the headphone jack and replacing it with the lightning jack currently used to charge the phone. in an attempt to limit backlash for consumers to get new headphones. apple will include an adapter for older ear buds. or customers will have the option to buy wireless ear buds
called ear pods. one that addressed common complaints from mobile phone users in the past, first better battery life. claiming up to two hours more juice on the 7 plus. what may have received the most applause of the day, the long awaited arrival of a water resistant phone. both new phones will future a better camera and processer. apple's event coming amid concerns with the company's pace of innovation and stale growth. expected to drop for the fist time in 15 years. while the iphone was the main event. apple also introduced the watch series two. sales of the original watch down 57% in the last quarter. according to new estimates by the international data corporation. the new watch like the iphone 7 will be water resistant with new features geared towards runners and swimmers. despite all the upgrades investor reaction was somewhat
mo muted. for cnbc business nbc news, josh lipton, san francisco. >> apple has also delivered a super mario jump for nintendo. shares have spiked more than 20% in tokyo following tim cook's announcement he's adding super mario run to the app store. simple game will make mario jump and collect coins while playing one handed. i haven't played that game in years. can't wait to play it again. >> i'm not a gamer, but this one excites me. i loved it growing up. >> me too. >> if we could get a duck hunt on the watch. >> do you remember that one? >> no. >> that was the best. meanwhile, ireland parliament vote instead favor of appealing that apple must pay the country. speaking exclusively the irish prime minster explained why his government is pushing back
against the competition commissions decision. take a listen. >> i'm confident we will win this case. in our view, the european commission has made a finding here dealing with state aide that crosses the threshold into tax competency a matter under the treaties for each individual country. in ireland the revenue commissioners have been completely independent of the state since 1923 and quite adamant and quite clear there was no prefer shl treatment, no deals and that apple paid the taxes that were due. president obama is due to speak at east asia summit in laos any minute now. we will bring that press conference live as it happens. this is an historic visit. he's the first sitting president to appear here and also comes at a time it's expected to be president obama's last trip to
southeast asia. >> it is very important because of the pivot towards asia. many people have been saying that hasn't panned out as it was hoping. >> that's true and some questions around the reception he received at the g20. we don't want to make too much of the various elements. it will be interesting to see what he says when he gets to the podium. he did acknowledge tension going on between the u.s. and laos of course when you consider if devastating bombs that hit the country during the vietnam war. before we go, a check on european markets. ftse 100 higher .50%. outperforming. we are seeing some strength in dixson carphone as well. xetra dax and french cac basically flat. ftse mib slightly is higher. .30%. >> looking at the market, seeing
good morning. european stocks near eight-month highs. twitter takeover. big board meeting that could determine what's next for the embattled social media form. your money, your vote. clinton defends her e-mail. a round up of drama from commander in chief forum. it's thursday, september 8, 2016 and "world wide exchange" begins right now.