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tv   Worldwide Exchange  CNBC  September 16, 2016 5:00am-6:01am EDT

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good morning. deutsche bank under pressure. the u.s. department of justice wants them to pay $14 billion, we'll tell you why. sales from apple. if you went to sleep early you missed the new york jets beating buffalo bills live in football. twitter live streaming the game first time ever. the highlights coming up. it's friday, september 16th, 2016. "worldwide exchange" begins right now. ♪ you are the one thing in my
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way you are the one thing in my way ♪ good morning. welcome to worldwide exchange on a friday. i'm sara eisen that and i'm wilford frost. a new song called "my way." 1% moves up for the major averages. the dow closing up almost 200 points. we're getting a tad bit back ahead of more economic data. dow futures down 6.5 points. nasdaq down 12.5. a choppy trading. the indices beatsing a two-day losing streak yesterday. app sl a big story. we'll get to the chart of the week in just a moment, but apple up more than 12% this week alone. it's been a stung rise. >> which has meant as well the tech sector, but they're the
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performer of the week. s&p 500 and the dow up 1%. taken into positive territory. the nasdaq is up 2.5%. >> we'll see what happens today. as for the treasury note yield, a lot of hand wringing over higher yields but actually we're at 167, which means they haven't budged much from last week. industrial production and retail sales notably coming in below expectations. this is all ahead of the big federal reserve meeting next week, a decision on wednesday. the bank of japan also meets next week. so that's going to be your chart you're going to be watching into a heavy central bank week. >> but that's the key. if we settle now just below that 1.7%, then all we've seen is a slight shift up in the range we're trading on as opposed to a long-term move of high yields. it seems pausing for breath the day before, that's what we do. we have a range that's shifted
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up. >> european equity, let's have a quick look at what's happening around the rest of the world. slightly more negative than we've seen in the u.s. more volatility as we've had in the u.s. still going to end the week slightly soft. germany and france down. markets in china, hong kong have changed. what is open is stronger. australia up a nice 1%, japan up 0.7% that a lot of the suppliers of the apple products in japan got particularly strong off of apple's rise. as for broader markets, oil has been under pressure and settled lower again yesterday. below $44 a barrel. that's where we sit this morning and we're looking at 1.2% decline. 43.39. brent just at the 46 dollar mark on oil down 1.3%. there are questions about demand. what's interesting is the broader market is managing to rally, i.e. yesterday, despite
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the selloff in oil. that's something we're always watching carefully. the two can go very closely hand in hand. quickly let's show you the dollar. it's been softer over the past few days on the back of the weaker economic data. it's a bit stronger this morning. 112.30. it helped the japanese market overnight. barely. wheel watch that going into the u.s. session and the pound weaker after the bank of england yesterday. 132.03. not a lot of fireworks there. >> yeah. a little bit of weakness yesterday and today. no action from the bank of england. more telegraphing that it might be easier to come which is why we might see it. finally a quick look at gold prices this morning which are slightly higher by five basis points. >> lower for the week. >> lower for the week as a whole. today's top story deutsche shares getting slammed. the u.s. justice department is asking them to pay $14 billion to settle mortgage securities probes stemming from the
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financial crisis. $14 billion is a much larger number than was expected by both the bank and investor. in a statement deutsche has said, quote, it has no intention settle these civil claims. the firm expects negotiations will, quote, lead to an outcome similar to those which have settled at materially lower amounts. the share price is off significantly, some 7%. we'll have the price for you again. >> what's the back story here? >> for ref ranns, we're down 6.6% is the move. for reference, goldman sachs, for example was asked initially to pay $15 billion. so deutsche bank asked at 14. we'll see where that number ends up. no one is expecting it to end up. either way, the initial number much higher than expected. >> that's a wow. >> deutsche has 5.4 set aside. it's got four big outstanding
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litigation cases. the 14 number, even if it settled in a thirty of that, it would be higher. i think the reason you've got it moving so sharply is it highlights again the difficulty that deutsche bank is in because it's trading. it comes back to larry summers' point yesterday. its market cap is currently sitting at 18 billion euros some of a big hit again on the capital. if it's forced to raise becoming extremely die lieuive. now, if this came out at less than 50% of the currently muted 14, then they probably would haven't to raise cap tachlt but in the tough environmental for them, a bigger investment when their capital position's already under pressure. but the only other point i would add as a background is there is commentary. is this a retaliation to the am case with the eu kind of getting on their back. so lots of things that play
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here. >> the trading week wraps up with a pair of reports. the consumer price index is out at 8:30 eastern. it's expected to inch up slightly by 0.1%. while the core rate which the fed watches is seen rising 0.2%. and then we'll get a first read on september consumer sentiment after the week of sales in august. we'll see if there's any bounceback in september. also note today is quadruple witching day. it happens on the third friday of march, june, september, and december. it means that the expirations of stock index futures and options, stock options, single stock futures will close. i'll be there on closing belle,
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so i'll let you know what happens. >> i may be on "closing bell" with you as well. we'll see. apple fans from sydney to london are cheering as they snap up their new iphone 7 but unlike previous launches, there have been smaller crowds lined up outside the store who have preordered the device. some complained after the larger i-7 plus in jet black sold out. these are live pictures. the iphone 7 is on sale in 28 countries today making it the biggest launch to date. this is now a shot of apple's factory store in new york where the doors will open at 8:00 a.m. eastern time. they won't offer the sales. they call it not relevant because they plan to smell out. i planned to get one immediately but i smashed the phone. >> mine is as well. >> infuriating. >> i think the question now
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they're asking is did apple itself underestimate the demand and can supply catch up, which is one reason they didn't announce their first weekend sales. they said that that was more of a barometer of supply. clearly there's been a lot more baked into this share price and the earnings for the second half of the year based on commentary from sprint and t-mobile and apple saying it was sold out of the seven plus. boy, this was stronger than expected. >> absolutely. they got a bit of a yield, a lot of growth, and it's performing in a tough market. also for the sector rotation we've seen in recent weeks based around are we going to get a rate hike or not. >> absolutely. look at the stock chart. there's the one-week chart. >> 11.7%, i think. >> leader for the dow for the week and for the month. got some other stocks iffer you to watch today. nova vac shares plunging. data did not meet free specified
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objectives. it tar gets respiratory diseases and they say they didn't demonstrate efficacy with regard to related diseases. shared selling off premarket. samsung formally recall 1g million galaxy 7 phones in the u.s. the company said it received 92 reports of batteries overheating in the country including 26 reports of burns and 55 cases of property damage. it gets worse and worse. you keep hearing from people who have been flying actually that they make announcements on the planes to turn off and get -- >> it's the tale of two high end smartphone launches. iphone is definitely making the headlines for better reasons. more to watch, depomed.
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they were pushed to look for a better deal. unilever reportedly in talks to buy a company at $1 billion. g.e. winning a $1.9 billion contract from the uk's hinckley point power plant. it's the newest in decades. not moving share price up much. in other news this morning the fallout continues at wells fargo. they announced that 185 million dollar fine against the bank last tuesday.
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meanwhile massachusetts senator elizabeth warren had some harsh words for wells fargo and its executives. she spoke on "power lunch" on cnbc yesterday. listen. >> there is a serious problem with senior management at wells fargo. you know, look. we're talking about a scandal here that involves thousands of their employees cheating tens of thousands of customers out of money and making millions of dollars doing it for your the bank, and so the question is about senior management. is it the case that they really didn't know what was going on? because if they didn't, then this is a bank that's just too big to manage. let's face it. at a community bank, that kind of thing isn't going to happen. at acredit union, that's not going to happen, at a modest bank, that's not going happen.
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maybe they know what's going on in which case they need to be held personally responsible. either way. >> elizabeth warren, her sent meant that she's been banging the drum. clearly this ain't over for wells fargo by a long shot. >> that's exactly what i was going to say despite that initial guilt. clearly it's not been enough yet. all eyes next tuesday on that senate hearing because as elizabeth warren said, is it really true management didn't know in which case there's big questions about the overall structure of the bank or if there s why haven't we seen more heads roll. the one thing they focus on is if they're forced to some kind of clawback of pay, whether it's for the top management level, the level below, which so far hasn't been the case. that would be quite a big signal a big step for the industry, what is on the surface a relatively small fine has led to such public outcry they've clawed back. >> would it also take the heat
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off of john stumpf the ceo who's getting a lot of it right now? that was the implication there from senator warren if they do start to do clawbacks because that would put the responsibility on some of the executives. >> i think it would ease it but to what extent would it open the door to otherishes. >> speaking to various bank analysts and people in the industry, there's a level to what some people are thinking with a tiny bit, squeaky clean image and on the west coast they've not been involved in everything that they're kind of secretly a little bit -- is that the other banks. >> the other banks. however, that's not really their bottom line thought because clearly bad news for one bank is bad news for all the banks in terms of the p.r. it highlights all the issues they're facing. it's more and more the same thing. >> during an election year, eight years since the lehman bankruptcy this keeps happening and this one has a lot of
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outrage particularly because it has to do with customers and the fact that they were charged phony fees. >> indeed exactly right. let's move on. still on the banks. former u.s. treasury secretary larry summers says new regulations have actually made banks less safe. he's co-authored a harvard paper that prevents them from engaging in certain types of risks. only going so far. in an interview summers says to some extent they may have harmed the system. >> they have been efficacious and in their absence, i think we would be look aket a administrator dangerous situation today, but i don't think that one can simply be complaisant and assume that we've now created some kind of system where because we measure less leverage in a regulatory context we can assume it's far safer. summers' paper doesn't argue
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significantly against regulation arguing that some of it would be more fragile without dodd/frank. i have to say the deutsche bank example is the best way of highlighting his point because 18 billion euros is the market capital of the bank. the asset is $1.6 trillion. that's his exact point. now, still to come, apple's rally shares of the dow component spiking ahead of the iphone's debut. can the moan mem item continue. a lot more discussion on that. plus, under armour at fashion week. we'll tell you what the company was doing there and who showed up to support the firm's big bet. stay tuned. and more on "worldwide exchange" on cnbc. [ clock ticking ]
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time. you only have so much. that's why we want to make sure you won't have to wait on hold. and you won't have to guess when we'll turn up.
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because after all we should fit into your life. not the other way around. now to the trade of the day. can the company keep up its momentum? our team crunched the numbers historically. they screened to see what happened after apple jumped more than 10% on four trading days over the last decade. the data shows that shares typically decline on a fifth day. one day after the surge, apple did manage to trade positively more than 60% of the time and one month after an apple share spike, history shows that the stock average as negative return. of course, just history there. for more you can go to and check out cnbc, the
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valuation and the ramp-up to the holiday season that we're expecting here. >> also one month after, it's probably fair -- >> -- to talk some profits? >> yeah. anyway -- >> yesterday was the ninth and final day of new york fashion week here in new york city for the spring and summer 2017 southbound. there were some firsts this year with under armour, for instance, debuting a collection. why was under armor there? it's the latest in a growing list of sports apparel companies that are turning to fashion for growth at the high end. the can company launched uaf. you see under armour on the runway led by tim cop pistons, a well known designer. he worked at adidas. we did get a glimpse of a whole new line here with camouflage trenches that cost more than $1,400, funky sweats. the show also fashioned an
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atypical corrode like noah syndergaard and sean white showing up to support the brand. this follows adidas launching a surprise collaboration with vera wang for unisex mono chrome sportswear and adidas partnering with kanye wefrt and the widely buzzed about show, his easy brand and he's credited with adidas becoming cool again. it's always happening whether athleisure is even peaking as a fad, but the designer behind uas does not approve of that word. listen.
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>> it's not working. sales of athletic apparel top 2g $70 billion. a 42% increase over the past seven years. that's according to morgan stanley. it shows you where the growth has been. it's not only adidas and lululemons and victoria's secret but also forever 21 who have launched these types of brands. jeffrey's downgraded lululemon after the latest quarter. piper jaffray underrating nike on this peak athleisure trend. we'll wait to see sales evidence of this. people are still supporting a healthy lifestyle and if these companies can move it into sort of a higher fashion, ambitious millennial is what under armour calls it, we'll see. >> $1,400? >> that's the thing. it doesn't look like something
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you'd wear on the bath courts or on the field and that is the priciest of the collection. >> fair enough. >> there are new shoes, for instance, that are not sneakers that are less than $200. >> and you had exclusive behind the stage -- >> you're mocking me. backstage. >> behind the stage, sara eisen reporting. >> if you went to sleep early, we have all the details and highlights coming for you. we're back in just a couple of minutes.
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now that fedex has helped us simplify our e-commerce, we could focus on bigger issues, like our passive aggressive environment. we're not passive aggressive. hey, hey, hey, there are no bad suggestions here... no matter how lame they are. well said, ann. i've always admired how you just say what's in your head, without thinking. very brave. good point ted. you're living proof that looks aren't everything. thank you. welcome. so, fedex helped simplify our e-commerce business and this is not a passive aggressive environment. i just wanted to say, you guys are doing a great job. what's that supposed to mean? fedex. helping small business simplify e-commerce. what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom
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back to "worldwide exchange." donald trump now says he believes president obama was born in the united states. they say he did a great service to country bury bringing closure to the ugly incident. for years he was the most prominent supporter of the birther movement which claims obama wasn't to be president because he was born outside of the united states. now to sports. the new york jets and the buffalo bills, both teams looking for their first win of the season. this one would go back and forth, but the jets would take over in the fourth quarter on a touchdown run by matt forte. his third score of the night. the bills would cut down the lead, but the jets hold on for
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the victory. 37-31. still to come here on "worldwide exchange," this morning's top stories including deutsci ddeutsche shares droppi. stay tuned. you're watching cnbc worldwide skpairj, first in business worldwide. [ clock ticking ]
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time. you only have so much. that's why we want to make sure you won't have to wait on hold. and you won't have to guess when we'll turn up. because after all we should fit into your life. not the other way around. they want a $14 billion share, we'll tell you why.
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iphone 7 hitting the stores. >> jimmy fallon does something to donald trump no one has ever done before. we'll bring you that clip. it's friday, september 16th, 2016. you're watching "worldwide exchange" on cnbc. ♪ i don't care i love it ♪ ♪ i don't care >> good morning. and welcome back to "worldwide exchange" on cnbc. i'm sara eisen >> and i'm wilford frost. a very good morning. let's get straight to the markets. we're looking at slight declines in the market, not too significant. about 53 points for the dow, s&p, 7, nasdaq, 11.5 points. for the week as a whole we're looking at 1% and the dow higher and the nasdaq outperforming largely because apple has infected tech to move higher with it and the nasdaq is up about 2.5% for the week.
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gains across all three indices hides the fact that we had significant volatility over the last week. nonetheless, as things stand we will end the week a little higher. let's look at europe. similarly volatility has picked up but not quite so much and markets are looking at slight declines for your the week. germany and france down today about 0.4%. asia has seen quite a few markets close over the last couple of days for the mid-autumn festival. that continues today, the likes of china and hong kong are closed. japan and australia ending the week. the best part of 1%. >> as for the broader market picture, oil has had a tough week despite the rise in stocks. wti crude still trading below $44 a barrel. we're down. 43.39. brent dipped below $46 a barrel. gasoline prices higher there.
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ten-year treasury note. it's been a huge focus for investors lately. there's been a lot of worry over rising yields. when you tally up the gains this week, we're really not that much higher than we were last week. so we came down a bit yesterday. we had weaker data on production and weaker sails. we'll get cpi later in the session today. it is below 170. as for the u.s. dollar, it's been weaker. a little bit firmer against the euro. the big mover is the mexican pay sow which has lost 2% of its value against the dollar on the rising momentum of donald trump. that sent the pay sow lower, this idea that mexico does have to pay for a wall in a trump presidency or nafta gets renegotiated. that could heart the economy. >> has the pay sow taken over? >> currently it's on my radar, i would say a little bit more. the yen is a little bit more sentiment barometer. >> it's a great story. >> the peso has been moving.
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it's been one of the only places really where you're seeing a direct correlation with the direct polling. >> you know what my favorite currency is. the great british pound. >> of course, why wouldn't you. it's losing vale you by the day. gold, lower for the week. it's flat right now. we'll watch that on cpi. it has implications for the fed meeting next tuesday and wednesday. >> can't wait for that meeting. deutsche bank shares getting slammed. the u.s. justice department is sklg the german lending to pay $14 billion to settle mortgage security probes stemming from the financial crisis. $14 billion is a much larger numb beryl than was expected by the bank and investors nchl a statement deutsche bank says it has no intent to settle these claims anywhere near sighted. they claim it will lead to an outcome similar to those which have settled that materially lower amounts.
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for reference, they were asked to pay $15 million. deutsche bank has $5.4 million for litigation expenses and was expected by most to pay around $2 billion to $3 billion. shares off sharply not because of that mooted fine amount but the reminder of trouble. if they did have to raise more capital while trading, it would be hugely diluted. shares off 7%. deutsche bank woes continue. >> getting cheaper by the day. and you can't ignore the politics of this. i know you brought this up. german banks get slammed by a humongous $14 billion. a week after european regulators fi fine u.s. apple $14 billion. >> that's been mentioned.
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it's not being slammed. the amount is not settled. i think even before this came out, i've read some people saying similar stuff because in the past not just deutsche but hsbc, some of the others felt the fines they based to the amount of loans they've written has been much higher than what the u.s. guys have paid. it's definitely an issue and adds spice to an already painful story. >> as for as protectionism we see it on the rise and we see the anti-trade america first messages. it's sort of all relate. a top u.s. regulator is requiring standards saying they've made institutions more competitive since the financial crisis. speaking at harvard last night u.s. comptroller tom kur are said it would be a bad time to do that. he talks about tier one economy
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and leverage growths. it's much higher. still a debate. a new apple device, the iphone 7 goes on say official ali. investors cheering bidding up apple shares to a nine-month high. landon dowdy joins us. landon. >> that's right. calling all tech phone giants. the biggest iphone launch yet. global iphone fans already lining up outside stores in asia. take a look. and australia earlier today to get their hands on the latest upgrade since the iphone 6 came out in 2013 and they say it's sold out worldwide as is the new jetphone black. but if there's a will there is a way. scalpers in hong kong offering as much as $1,700 for the 7 plus which retails there for $849. that means if you to an apple
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store today, you won't be able to buy it on site but you can still place ordered online. they come with faster processors, long battery life, improved water resis stanlts thanks to the remooshl of the headphone jack and new cameras. they're hoping it will help the declining iphone sales. they're up nearly 12% this week. that's the best week in five years. i don't know. $1,700 for the plus. no question on the demand. >> i'm not sure i'll be going out to get that one. the thing they should do is make an unbreakable screen. >> i agree. mine is shattered. >> yours is permanently shattered. mine's recently shaltderred. nova vax says they did not meet their goals. they didn't create efficacy in
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preventing rsv-related diseases. they couldn't make up the difference f shares up 3%. samsung formally recalled 1 million galaxy note 7 phones in the u.s. they received reports of overheated batteries, 26 burns, 65 cases of property damage. drugmaker depo med is reportedly preparing to put itself up for sale. unilever reportedly in talks to buy the honest company. "the wall street journal" saying the proposed company, jessica
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alba's business for $1 million. hinckley point is the uk's first nuclear power plant in decades, this obviously getting a lot of attention in the british press. to our top trenldsing story. for the first time in twitter history, nfl fans could livestream the football game. it with us between the jets and the bills worldwide. some viewers did complain about buffering and a delay while others seemed to enjoy the experience. deangelo williams took five seconds watching to know that this is the wave of the future and that all nfl games will be here soon. this is a dale it struck in
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april. fascinating for the industry. it's going to be interesting to see how much it takes off. >> it's gong be interesting if we get numbers on how many people actually did it, how they streamed it. there were some complaints about buffering. it's clearly a new experience. yahoo! tried it. we'll see if it picks up any traction. a petition to get steve irwin on the australian bank note, we'll see. he died in 2006 when he was stabbed by the tail of a stingray. a group of teens are campaigning for it. they say he's the perfect icon to be the new face of the currency. so far they've surpassed their goal of 25,000 signatures. unclear what the bank of australia is going to do with all of this. not your traditional politician. >> i like it. i like it. you know, australian money, it's very, very tough and wasser proof, it's quite plastically, you can be at the beach and
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surfing. >> which is appropriate. they should have one of their national icons on there. >> next, donald trump let jimmy fallon do the unthinkable during trump's interview on "the tonight show." fallon asked if he could touch trump's hair and trump reluck tabletly obliged. >> i'm not liking the sound this. >> can i mess your hair up? did you say yes? >> go ahead. >> yes, donald trump, everybody. >> in case there were any doubts whether his hair was sfleel don't get any ideas. >> i would never touch your perfect hair. >> give credit to trup. >> and clinton is going on next week. the late night shows, they've been a platform.
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obama al he said, can i say thank you for the material you've given me. >> and people like that. >> yes. coming up, two must-reads. debut this weekend getting a couple of buzz. "snowden." i saw that and 15 years later bridget jones is back. universal parent company is out with "bridget jones' baby." it's so clear which one you want to see and i want to see. >> "bridget jones' diary," best ever.
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this is a very dangerous setup to me. they have immunity, don't worry about the consequences to their actions and they're waiting for prize jobs for actions to these cases. >> that was our david ganek speaking out for the first time about the raid that brought down his $4 billion firm and his lawsuit against the feds.
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the complete uncut conversation with andrew ross sorkin. that brings us to a must-read. i'm picking the wall street journal because it is written by governor john kasich of ohio. >> your hometown? >> home state. it's bigger than a town. >> i know. my bad. >> it's interesting that kasich is out now making a case for the tpp, trans-pacific trade partner with both hillary clinton and donald trump are against, kasich writing, saying yes to tpp makes possible the economic growth american businesses and their pleas need. saying no is not a neutral or beneficial move. turning down tpp slams the door on a way forward for job creation. it will have a choking effect on the jobs, companies, and communities that are now sustained by trade. i find it interesting because this tpp issue is making for
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strange political bedfellows. this is obama's trade situation. they're still trying to push this through even though hillary clinton has said that she's come out against it and you just wonder, first of all, that there's so much politics here. trump speaking in flint, michigan, a city decimated by trade and jobs versus ohio which trades actively with asia. >> i agree that headline out of jack lew saying they still have a chance, i mean if they did get it through, that would be a massive development but many says they might get it passed that and kasich saying it might be supported. >> bipartisan support and opposition. my picks in the "washington post", it's titled "hillary shar pens, trump softens.
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he's rising, she's falling." kellyanne conway has single-handedly addressed it. it's been the story the last couple of weeks. not massively new news but an interesting take on the changes that the new management team that trump's campaign have started to make the polls close in and it's fascinating developments. >> and trump speaking at the economic club of new york yesterday to a bunch of academic economists, mostly taxes, i would say. >> and having his hair ruffled as well. >> on late night. we're approaching the top of the hour. joe kernen is in new york with a look at what's coming up on "squawk box." good morning, joe. >> it's hard to be constantly questioned about wearing a piece or toupee. >> you can relate to it, huh? >> i knew his was real and you can tell it's real.
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he has not chosen to do this yet. that was when i took the actual leaf blower special. we were doing it when people put buckets on their head. remember, we were going to do this, take the leaf blower challenge. >> is it sort of relaxing? >> like therapy? i was really worried that the glue wasn't going to hold. was a little bit scare. i'm going to talk about something in "the wall street journal." what were you able to watch football on last night, will? what was that again? >> twitter. >> twitter. now, you've been in here and learned how to say it. i just -- why don't you say it as you know that you can. give it to us just once. >> twitter. >> anyway, we're back to -- >> one word that always makes joe laugh. >> twitter? he says a lot of other funny
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things, i don't know that twitter is the best one. >> you're right. rubbish. the journal -- you know, whenever they say anything positive about trump, it's like pulling teeth. they say he set as clear contrast with clinton on taxes, regulation, and energy. and i love this last line or last paragraph in the journal. mr. trump at least recognizes that the u.s. economy isn't stagnant because of potholes. that's not what's holding it. filling those up might not be, you know, the answer to everything. we're going to actually talk about that. we've god david malpass, one of the senior guys for trump and dean baker who's so wait out there on the left. i've been reading him for years. i think venezuela, people
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rummaging through the garbage cans for pizza crust. >> i'd like to see him on with baker. that would be good. >> rubbishing through rubbish bins. >> standing in queue for things. >> that's exactly right. "squawk box" in ten minutes' time. we're looking forward to it. the big trends likely trending. julian emanuel joining us next. don't go anywhere. get everywhere else,with added t like claim free rewards... or safe driving bonus checks. even a claim satisfaction guaranteeeeeeeeeee! in means protection plus unique extras only from an expert allstate agent. it's good to be in, good hands. josh, don't you have fryeah, so? ng over? it stinks in here. you've got to wasthis whole room
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welcome back to world wide exchange. for the week as a hold we're in positive territory. the s&p up 1.5 and nasdaq. apple has drawn stocks up with it. joining us now julian imemmanue. julian, thanks very much for joining us. >> my pleasure. >> does the apple show us we
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shouldn't be worry and as soon as you do a story, they can really outperform? they can really react to that? >> it's a case by case basis. you know, companies in the technology space in particular have lots and lots of cash on their balance sheet, and so from that perspective, we think those kinds of technology stocks are still reasonably valued but there are other pockets of the market that have become somewhat overvalued, the defenses in particular which have underperformed as the uncertainty has crept into the market. so we can't generalize as much. >> have you seen the move in the semiconduct semiconductors? what about that? can you extrapolate some of the moves? are they apple-based? are they the start of a new trend? >> again, it goes back to demandnd it goes back to the cash. you know, part of the untold story is we haven't seen capex over the last several years of the economic recovery because we've been bumping along, but
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perhaps the semiconductors are telling us that at some point when we start growing in twos next year like we think we're going to, you're going to see some investment. >> how concerned are you with the spike in volatility over the past week or so? >> you've got the point correct here. it's not so much the actual tickup in yield but it's the volatility. basically the assumptions that have been made, there's more back and forth two-way action means there's more uncertainty. >> the second best performing sector this week behind technology is utilities. i mean how many guests have we had on the show who have said yields have bought them, utilities and telecom look very expensive that is correct're in a bubble and they're going to burst and yet they keep going higher. we wouldn't call it a bubble, but if you look at it, it's very normal that as the cycle progresses and what we've seen
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over the summer is that the cycle indeed progressing. you saw outperformance of the groups as the fed begins to raise rates, again, which we think they will in december and that's naturally going pressure them. >> latest expectations for what's going to happen next week for the fed? >> well, they're probably going to give us further indication that they'd like to raise in december. also the bank of japan is going to be very poor as well. >> for the markets in the u.s.? >> yes, absolutely. >> what's the expectation quickly? >> the expectation is for further ease but there are a lot of questions about how effective rates are. >> we're going to have to leave it there. julian emmanuel of ubs. 12% move, best week since 2011. >> wells fargo is mine, sliding.
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big focus for them. that's it for "worldwide exchange." "squawk box" coming up next. have a lovely weekend.
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group morning. deutsche bank under pressure. they want the financial giant to pay $14 billion. we will tell you why. speaking of $14 billion, the new i 7 hitting store shelves today. reaction from around the world. big moves from the stocks in the companies that make the parts for the iphone. and for the first time since being added to the dow, apple's actually been a positive for the average. plus, "squawk" sports. if you went to sleep early you missed new york jets beating the buffalo bills in "thursday night
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football" and the game-making history is the first ever to be streamed on twitter. the highlights coming up. it's friday, september 16, 2016, and "squawk box" begins right now. ♪ something binding us together you know live is strong ♪ live from new york where business nerve sleeps, this is "squawk box." good morning, everybody, welcome to "squawk box" on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. a positive day on the markets yesterday. actually two days in a row. we are looking aet the markets that are a little bit weaker as we head into a trading day. s&p futures off by eight. nasdaq down 11.5. nikkei closed at


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