tv Worldwide Exchange CNBC September 26, 2016 5:00am-6:01am EDT
good morning. crude reality. oil prices rebounding ahead of a key meeting with opec producers. a live report from algeria coming up. and deutsche banks drop to an all-time low. we'll tell you why. plus, it is debate day. presidential hopefuls hillary clinton and donald trump are preparing to square off on stage tonight. it is monday, september 26, 2016. and "worldwide exchange" begins right now. a very good morning and welcome to "worldwide exchange." i'm wilfred frost alongside
morgan brennan. good morning. >> good morning. great to be back here at this early hour with you. >> it is lovely to have you with us. we'll get straight to the markets. this morning after a week we saw gains, quite a lot of movement in volatility. of course, that fed meeting in the middle of the week where we didn't see the hike in interest rates did leave markets to move around in various directions over the course of the week, but we did have about 1% of gains for the week as a whole by friday's close. as you can see, we're expected to open down to the tune of 80 points for the dow. 10 points for the s&p. and 27 for the nasdaq this morning around half a percent of declines expected. we look at the ten-year treasury note, which of course had paused its rise recently and now is closer to the 1.6 handle up near 1.7 a couple weeks ago. and taking a look at european equities this morning, those are tracking lower. the german dax is down 1.5%. the french cac is down 1.7%.
the ftse 100 down over 1%. and really seeing stocks led lower by banking and energy companies. deutsche bank hitting an all-time low and also the lower session here following lower equities in asia as well as we take a look at those markets in asia. we see the nikkei is lower. that's down about 1.25%. led lower is the japanese yen higher. the hang seng about 1.5% lower. and the shanghai composite is down about 1.7%. >> that's right. the deutsche bank story is the big one in europe. we'll go into more detail on that in a moment. a quick look at the oil prices very much in focus today. that meeting taking place in algeria over the next two or three days. opec members possibly expected to freeze production. the algerian energy minister is the host of the meeting making some comments over the weekend that the saudis are considering to lower their production
levels. i'll believe it when we actually see it. but nevertheless, markets are higher, wti, 44.6. last week oil prices gaped about 3% for the week as a whole. dollar, if we have a look at that, it was so the last week. two weeks in a row of declines for the broader dollar index. and it was soft in earlier trade today. indeed it is at the moment. the yen up about .50%. the pound is softening against the u.s. dollar. ongoing stories out of the uk heading for a hard breaks zxit d the soft brexit. oil prices quickly for you if we have a look at gold, it is softer by a third of 1%. and more on the markets in just a minute, but first the sports world is mourning the loss today of golf legend arnold palmer. he died at the age of 87 from complications of heart problems. he won 62 pga titles and 7 major
championships as well as 4 victories at the masters. he turned the golf into a must-watch game on television. palmer's long-time rival and friend jack nicklaus said this statement, quote, he was more than a golfer or even great golfer. he was an icon. he was the king of our sport and always will be. we'll have more on this coming up. back to global markets, bank of japan governor hirohiko kuroda says the boj is ready to use every possible tool to hit its 2% inflation target. he also said that there is no limit to monetary policy and that designing policy, the bank of japan will relentlessly pursue innovation. of course, the latest out of the policy measures will work, just abated throughout the course of last week. obviously, the asian markets are soft again this morning. >> certainly. now to the economic agenda. the week ahead is full of data
on a the consumer and housing market today. look for august new home sales at so:00 a.m. 10:00. the minneapolis french president neel kashkari and dallas fed press rob kaplan. and we'll hear from carnival today. and tonight the first presidential debate will occur. they will talk about america's direction. it will be moderated by lester holt. nassau county police officials say they have extra officers at the event and are expecting more than 10,000 protestors. we'll have a live report from hofstra in just a bit. and then tonight you can watch the debate live right here on cnbc. i think this is just going to be all the focus today. >> it absolutely is. very exciting to watch. absolute must-watch television, despite being late for us. but still must watch. >> i think i'm going to have nap
throughout the day, wake up, watch the debate, go back to bed. plan out a sleep schedule. >> we'll have a preview from the debate stage in a minute for you. back to corporate news, shares of deutsche bank tumbling to a record low this morning. this comes following the report in the german magazine "focus" that angela merkel rejected any inference with the u.s. department of investigation into the firm. the doj wants deutsche bank to pay up to $14 billion for issuing, distributing and securitizing. the stock is down just over 6%. the share price had already been under performing. the contingent debt instrument they closely watch as well, they have fallen sharply. the yields are moving from 6% to 7% this morning. and it just is a double whammy
for deutsche bank here that again the politicians aren't going to support it. it's a position that we already knew existed from angela merkel because she had to maintain that position from when the italian banks bailed out. hearing that confirmation over the weekend that she's not going to soften the view hit share prices this morning. >> you can see the dramatic plunge today. over here the palout continues for wells fargo. the top ceo releasing a note saying his firm's previously strong support for wells fargo ceo john stump is now waivering. mayo calls stump's reaction waivering. he says, wells far dpo is bigger than the ceo, notwithstanding other issues. they believe wells fargo needs to address first how long the problems can continue and what wells is doing for customers and third for the callbacks to be
put back in terms of pay. and fourth that stump should reduce his own compensation. and fifth wells needs to restructure its board and possibly split the chair role from the ceo. mayo still ranks the stock as an outperformer. for wells the focus will be on thursday's house hearing following the senate hearing last week. and mayo basically suggests this is his last chance for the ceo to perform whereas going into last week, he needed more to happen to lose his position. he now says this is a must-win kind of performance from stump in order to hold on to his position. in stocks to watch today, germany's lanxess is buying chemtura for the price point of $2.1 billion. they will pay $33 a share and nearly 19% premium to chemtura's closing price on friday. they will expand in lubricants and flame retardants. and samsung is delaying new sales of the note 7 to october
1st. the move is necessary to complete the ongoing recall of the device. samsung recalled 2.5 million note 7s earlier this month due to faulty batteries that could catch fire. i'll just note on that, i was on several planes last week, and it's the first thing that is announced over the loud speaker. it's a little -- >> which is serious. >> it is a little nerveracking. >> that's seriously damaging to their image. when it is that bad, the release you are shoes issues, then people won't forget that. >> and only a fraction of people have turned them in for this recall. shares of cbs could jump 30% next year, double in the next three or do even better if the company makes the successful attempt to buy viacom. cbs would have leverage because the growth prospects are as bright as viacom's are dark. general motors' workers in canada approved a new contract. the four-year deal clears the way for $544 million in
investment by gm. mostly in its plant in ontario. the contract covers nearly 4,000 uni workers and will give gm more capacity for the pickup trucks. share prices of gm just above flat this morning. and hyundai motors south korean labor union staged the first full strike in 12 years today over stalled wage talks. the strike poses a threat to the bottom line already sliding. the assembly lines at the three domestic plants halts production of thousands of vehicles. and if you take a look at shares of hyundai motors, those are down .60. coming up, brexit fallout. a new survey finds three quarters of uk ceos are thinking about moving operations abroad. we'll tell you why.
welcome back to "worldwide exchange." a very good morning to you. let's have a look at the futures markets. we're expecting half a percent of declines at the open today. we did see gains last week volatile for performance in and around the fed meeting where we didn't get a rate hike. equities in the u.s. ending a percent higher for the week as a whole, but that doesn't tell the whole story. asia with soft. europe is particularly soft this morning. and all eyes being on german trade. with the deutsche bank trade, in
particular, it's down 6% heading to the lowest level ever. again, highlighting the ongoing difficulties many the european banking system. oil also in focus today. of course, the meeting taking place in algeria. and last week we did see slight gains for oil prices around 3%. we're expecting some positive moves at the -- we have positive moves already this morning as you can see wti, 44.6. as we said, the focus will be on the opec producers and whether they can get any kind of production freeze agreed at the meeting. and hadley gamble is there with a preview. hadley? >> reporter: hey, good morning, wilfred. we are on the sidelines of this international energy forum here in algiers. it is interesting to note that there's been a lot of discussion over the last 24 hours, particularly within different camps, whether speaksing to the algerians, the russians, the saudis, many analysts don't expect much to come out of the meetings. but the algerian oil minister
saying no one wants to walk away empty-handed. not again, not another big disappointment with the doha meeting ending with angry faces. there's no world on whether the awe saudis will push iran on this point. iran economically doesn't want to do anything in terms of a cap so far. and the big question is whether they can be convinced to move on this. for aussie arabia, saudi arabia, it is a question on whether the shale oil producers in the united states will adapt to price shocks over the last several months. the question is, will anything get accomplished? a lot of controversy over whether or not we'll see the russians even come into the table, even pushing the saudis here. there are a lot of back channel conversations happening at the moment. as we heard from the russian energy minister, he said this is
not critical for russia at this point. so it will be about the conversations taking place over the next few days, guys. >> hadley, what difference does it make in your confidence that any deal will come out of this, that this is not a traditional scheduled opec meeting, there are others there, sort of the impromptu nature of it, does that suggest there is a higher chance of something finally being agreed? >> reporter: well, it's certainly going to mean a lot of running around for the journalists here. we are standing in this massive new complex. this complex has really been unused so far here in algiers. it's massive and big. and frankly, when talking about all the oil producers present here, there are a lot of conversations that are going to be happening around the meeting with a lot of back-channel conversations as well. you have to remember what has been happening particularly with regards to saudi arabia and iran isn't happening in a vacuum. we are talking about the cease-fire agreement in syria. iran has a lot to pay for at the moment. essentially what we know is they are trying to rebuild their economy and also having to pay
for fighters, hezbollah, what's happening in syria, so a lot of questions surrounding what is happening on the syria front, not just on what is happening with the price of oil. guys? >> hadley, it's morgan brennan. you mentioned the shale producers here in the u.s., what is the talk about the shale producers here in the u.s.? just in the last couple of weeks we have seen the rate count here tick up. is that considered the biggest wild card here in conversations? >> reporter: oh, absolutely. i think that certainly for saudi arabia, this is not just a question about whether or not they can say mission accomplished, declare victory, at what point are they going to say enough is enough? they have to also worry about what is happening at home. while the sovereign seems to be doing well, when you talk to analysts, they are confident about saudi arabia's ability to continue to pay for their economy, it is not really a reflection of the really economy in saudi arabia because this doesn't depend on their taxpayers. and the private sector, not just in saudi arabia but in the eu are really hurting from the
trickle down of the oil prices. so the question is whether or not they start to listen to folks back home and they are worried about a level of anger. guys? >> hadley gamble reporting there from algeria. the uk foreign minister boris johnson says britain has a lot of work to do before triggering the formal divorce procedure with the european union. once brexit is done, it's done. the country won't let the process drag on. specifically, johnson telling the bbc brexit won't happen before christmas and the uk has got to do a lot of work as we said before triggering this. a new survey from kp&g finds many britain ceos are looking to move outside of britain as a result of brexit. three quarters of the executives polled considered relocating part or all of their businesses. more than half the participants believe britain's ability to conduct business will be hindered once the nation leaves the bloc.
in other british political news, jeremy corbyn has been reelected and must work to bring together a rather separated party. a convincing victory for him as the labour leader. we'll talk about the life and legacy of the king, arnold palmer. we'll talk about how he changed the sport he loved. but first, here is today's national weather forecast from jen carfagno. >> happy monday. finally feeling like fall. for so much of the country, actually the northeast, we had a nice cool, crisp weekend. enjoy today. we do have a front tracking in with temperatures warming up a limit bit ahead of it tomorrow. southeast still dealing with the heat, but actually the front will make progress. we'll get that through by tomorrow and get some improvement there. and dallas, only in the 70s. huge changes from what we have had over the past week or two.
all right n the west, this is where we have the heat. l.a. going to 102. heat advisory for the san francisco bay area. temperatures there will be up in the upper 80s, near 90 inland spots. it will feel 100-plus. that's a concern for the heat advisory there. in the east, enjoying cooler temperatures and lower humidity. that's your coast-to-coast forecast. i'm meteorologist jen carfagno for the weather channel. "worldwide exchange" continues after this. guess what guys, i switched to sprint.
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welcome back to "worldwide exchange." futures are pointing lower this morning around about half a percent lower as you can see the dow fall down by 73 points. the s&p by 10. the nasdaq by 26. quick look as well at other assets, currencies, the dollar is weaker against the broad index of currencies. two weeks in a row of declines for the dollar. it's soft for the most part this morning as you can see against the euro and the yen, although the pound itself is soft against the dollar. getting near post-brexit lows the last couple of weeks with the pound soft. oil prices, a lot of focus on that this morning, with the meeting taking place in algeria. will we get a production freeze? oil prices are higher over the meetings taking place, 44.7 for wti. arnold palmer died yesterday at the age of 87 due to complications from heart problems. palmer revolutionized the game of golf and made it popular on
television in the process. nbc's kurt gregory has more on palmer's life and legacy. >> reporter: arnold palmer grew up the son of a greenskeeper turned head golf professional in latrobe, pennsylvania. his hollywood good looks and powerful unorthodox swing made him a golf superstar. fans crowded the fairways in droves and came to be known as arnie's army. many who couldn't watch him on the course in person did so in their living rooms during the 1950s and '60s. palmer helped make golf the tv sport it is today. his popularity grew. companies wanted arnie pitching their products. >> arnie, they said, you'll like it. the tractor will like it. same penzoil, new package. >> reporter: nicknamed the king, palmer became famous for his strength in shot making. he loved to take chances on the course saying, quote, you must play boldly to win.
and win he did. 7 majors, 95 professional victories including the champions tour, a venture he helped to jump-start in 1980. palmer stopped playing the champons tour in 2006, but remained a vital part of the game. his golfing empire includes golf schools, golf equipment and clothing lines. he designed more than 200 courses around the world. and in 2012, he was awarded the congressional gold medal, recognizing his contributions as a golfer and philanthropist. >> i just want to thank god for the game of golf and what it has meant to me. >> reporter: arnold palmer will be remembered as one of the greatest players to ever pick up a club. a blue-collar guy from a small steel town who transcended his sport, becoming a hero to so many. kurt gregory, nbc news. >> arnold palmer was co-founder
of the golf channel now part of the nbc sports group. i should note, he is the man behind the delicious non-alcoholic beverage, iced tea and lemonade, the arnold palmer. >> there we go. i didn't know that. well, anyway, sad news over the weekend. and it's not the only sad supporting story over the weekend as the miami marlins pitcher jose fernandez and two others were killed yesterday when their boat slammed into a jetee off miami beach. none of the victims we are wearing a life jacket and no indication that alcohol or drugs played a role in the crash. fernandez won national rookie of the year in 2013 after affecting from cuba. the marlins canceled the game yesterday and fernandez was a member across major league baseball with several teams holding a moment of silence and hanging the number 16 jersey in the dugout. now to games on the field in sunday night football which matched two long-time nfl rivals, the dallas cowboys and chicago bears. dallas led by rookie quarterback
zach prescott would dominate the bears. in the fourth quarter prescott hit des bryant for a 17-yard touch down. the first td pass of his career. the cowboys beat the bears 31-17. still to come on "worldwide exchange," this morning's top stories plus a live report from hofstra university, the site of tonight's big presidential debate. and then deutsche bank's joe lavorgna will join us with deutsche bank's impact on the economy. stay tuned, you're watching "worldwide exchange" on cnbc. 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.
good morning. deutsche bank shares dropping. capital concerns putting pressure on the lender. we'll tell you the details coming up. your money, your vote. it's debate day. presidential hopefuls hillary clinton and donald trump are preparing to square off on stage tonight. plus, high five fail. a picture of a young prince and the canadian prime minister going viral this morning. we'll bring you those clips in just a moment. it is september the 26th, 2016, you're watching "worldwide exchange" on cnbc. and a very good morning and a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost alongside morgan brennan this morning in for sara. a very good morning to you. >> good morning. >> and also a particularly good morning to our newest viewer.
this is wagner, the son of cnbc's toll. mom, dad and big sister are doing well. good morning to all of you. let's check in on the markets this morning. and we are expecting about half a percent of declines at the open. about 60 or 80 points. we have increased those declines in the last half hour. so for the dow, the s&p is expected down 11 points. the nasdaq down 27 points. excuse me. that's largely because we have declines around the rest of the world this morning. european trade particularly soft in part because deutsche bank shares have hit their lowest ever level down some 6%. the dax off the back of that is lower 1.5%. france off almost 2%. and the ftse 100 down some 1.3%. asian trade also disappointing with the nikkei declining 1.25%. the yen is higher today, so that has not helped today for hong kong or shanghai.
a quick look at the oil prices higher ahead of the three-day meeting in algeria where various opec members and others, crude, 44.70. it was higher by 3% last week, albeit relatively volatile fashion as the week went out. ten-year treasury note, down closer to 1.6% on terms of yield compared to 1.7% a few weeks earlier. that's on the back of no rate hike from the fed last week. the dollar has had two weeks of declines. it's softer against the euro and the yen. but the pound is slipping itself against the dollar, 1.2933. we are near post-brexit lows for the british pound. oil prices are a little softer this morning, not much as you can see just 0.1% down. now to politics, the first of three scheduled presidential debates between hillary clinton and donald trump will take place
tonight at hofstra university. tracie potts reports. >> reporter: this is the stage for their first face-off tonight. hillary clinton stage left, donald trump stage right. she gets the first question. clinton's team is concerned the bar has been set too low for trump. >> just because he doesn't fly off the handle in the middle of this debate does not mean that he is prepared to be president of the united states. >> he has every right to defend himself. >> she's got to be able to both make that positive case but also not let donald trump get away with what he's likely to do, which is to make stuff up. >> reporter: it's 90 minutes of debate broken into six 15-minute sections. >> you get 90 minutes to look at people and really see whether there's depth, whether there's substance, and whether there's candor and truthfulness in what they say. >> reporter: tonight's topics, america's direction, achieving prosperity and securing america. that could get into immigration, jobs, the economy, foreign policy, leadership, even clinton's e-mails and the trump
foundation. clinton's invited trump critic mark cuban to sit in the front row. >> she is trying to distract attention. her campaign is trying to play games with front row seats. and donald trump's not about that. >> trump tweeted out inviting gennifer flowers who had an affair with bill clinton. but his campaign insists she's not on their list. >> that was nbc's tracie potts. to discuss a little bit more about what the debate tonight and the election might mean for the u.s. economy markets, joining us is joe lavorgna, chief economist at deutsche bank. a very good morning to you, joe. thank you for joining us. so historically, how important and relevant are u.s. elections to the markets? >> generally, well, they can be important. it depends on where the economy is at what point in the cycle. so, for example, if we look at 1992, we were in a very, very weak stage of a recovery. and the referendum going into
'92 was about the economy. if you remember, we had a famous james carvell quip, it's the economy, stupid. so there are periods where it is very important. obviously in 2008, the economy is entering a financial crisis. it was late in the election cycle, but again, that was also important for people. the way i look at it, wilfred, is that we have had a very weak economy for a long time. and where i see the election really having been a factor is just on the corporate side. companies not really spending much on capital. they have brought a lot of stock back and have been very hesitant because they are not sure how tax policy orifice call policy might change. so the uncertainty has had the biggest effect on the economy recently. >> joe, it is not just uncertainty itself or is there a very stark choice between the two candidates in terms of what that will mean for things like tax policy. >> to me, believe it or not, it's uncertainty on the policy. what i mean by that is if you
look and study ma is happening on the democratic and republican side, both parties want corporate tax reform. it's one of the things they both agree on. but their approaches are totally different. so i don't think it's the candidate specific, it is more party and platform specific. >> hey, joe, morgan brennan. just to dig into that a little bit more, one of the things that i keep hearing over and over again is that the market is sort of priced for the potential, i guess for the certainty of a hillary clinton win. but that if donald trump were to actually win, this election, this could create a lot of volatility and markets are not ready for that. but up kind of have a little bit of an issue with this and wanted to get your thoughts on it. because trump has actually talked about dramatically reducing the corporate tax rate and talked about -- he's flip-flopped on this, but talked about keeping interest rates low and talked about putting out the massive fiscal stimulus plan in terms of instruct. so wouldn't that potentially be good for markets in the long term? >> it would. look, morgan, the markets are pretty sophisticated.
over the past six weeks as the polls have tightened, i believe the real clear politics averages are around 2% with hillary clinton favored. the markets have held up well and done very well. so maybe that argument that the uncertainty of some of the people didn't know a whole lot about was valid some point in the cycle. but my look at the polls and talking to investors and some of the political forecasters, people think this will be a relatively close race. i don't think the market is necessarily worried about that. i this i the market is more worried about growth, just the general trend in the economy, what is happening globally, what the central banks are doing, to me these are bigger issues. >> joe, in terms of more widely, if we do see some kind of fiscal stimulus, if we look around the world right now, increasingly investors and policymakers have less conviction that monetary policy can continue to help economies and therefore turning, at least with their rhetoric if not with their action yet
towards fiscal policy, do you think we'll see big fiscal stimuli around the world? and what does that mean for markets? as we have seen an appreciation in the bond markets changing from the monetary policy stimulus to the fiscal policy stimulus, will we have to see that unwind a little bit? >> in europe we're getting a little more fiscal stimulus than what we've had, but i hardly would say it is big, wilfred. we're just moviing less toward austerity and more to stimulus. the u.s. arguably has the best prospects for fiscal stimulus. i mean, this is a world where monetary policy is really taking on too much. i believe it's hurting the economies. the global growth. i mean, this is a debate. i wish i could be more confident in governments being able to stimulate. but my fear is that we're just going to continue to muddle through and not have the political leadership really across much of the globe to deal with some of the issues we have to deal with, which makes me fearful we are going to have lower rates for a while which
arguably reinforces the weakish backdrop. >> joe, thank you for joining s us. tonight donald trump and hillary clinton will square off at hofstra university in new york. the topics of discussion include achieving prosperity, securing america and america's direction. the debate is posted by nbc news and moderated by lester holt. and then tonight you can watch the debate live right here on cnbc. and one not to miss, no doubt about that. right. rolling stone striking a chord with a new investor. bandlab technologies is buying a 40% stake in the brand including the iconic mag soon and the digital assets. terms haven't been disclosed but don't include ownership in the media investment that could provide rolling stones to expand into merchandising in asia, areas where bandlab has experience. >> i have to tell you, this
reminds me of my former place of employment. and that is "force" magazine with a major stake bought by asian investors as well. snapchat plans to start selling sunglasses equipped with a camera this fall called spectacles. they will be sold in a limited distribution for $130. they can record video from users perspective in ten-second increments and synced to a smartphone. snapchat is going to change their name to snapinc. >> i love this idea. >> i do, too. i don't want to be recorded but they are very fashionable. >> very deceptive to your friends. moving on to today's top trending stories, an awkward moment between canada's prime minister and prince george. he knelt down on the tarmac to give prince george a high five
but was denied a formal handshake and high five. this gathered attention in the uk and was trending on twitter over the weekend. prince george just saying, no, sorry, mr. prime minister, no love back from me. i love that. >> it's really quite adorable. though it may be some time until the world gets caught in another tweet storm andreessen tweeted, quote, taking a twitter break. he's known for his twitter rants on the economy and everything else. and some of the big golf names are paying tribute to the late arnold palmer who died yesterday at the age of 87. rory mcilroy posting a pic with the king tweeting, remembering the special times i spent with mr. palmer at bay hill. a true pioneer of our sport. forever remembered. tiger woods also paying his condolences tweeting, thanks arnold for your friendship, counsel and a lot of laughs.
your philanthropy and humanity are part of your legend. it's hard to imagine golf without you or anyone more important to the game than the king. >> indeed. a lot of love for arnold palmer over the last day or so. still to come, must reads. but first, as we head to break, a look back at this day in history. in 2008 washington mutual became the largest u.s. bank to fail when it filed for chapter 11 bankruptcy. walmart got swept up in the subprime mortgage climate and was seized by u.s. regulators. the retail assets were sold to jpmorgan for $1.9 billion. lots more still to come here on worldwide exchange. don't go anywhere. yo u should hae you were ahead. 32 years at this place and i've got 9 days left before retirement. look jim, we've been planning for this for a long time. and we'll keep evolving things. so don't worry. knowing what's on your mind and acting accordingly.
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the disruption in the change, i believe, destroys more jobs than it creates. and imagine the wrororld nobody drives a car, sounds pretty neat unless you're a cab driver. >> he may not be a believer in the tech revolution but he's finding plenty of places to invest. head to deliveringalpha.com to learn more. >> if he's watching, a very good morning to you. he's a viewer of the show. still to come on must reads, we'll have a quick look at the futures right now. equity futures are currently low
to the tune of three quarters of 1%. 0.1% as we look at things right now. we have increased the declines a little bit over the last half hour, so we are called lower by 86 points on the dow. this is largely coming because the european equities are sharply lower. we'll have a quick look at the 2% declines for the french market and the german market. the ftse 100 down 1.25%. this comes as shares of deutsche bank tumble to a new record low following a record in the german magazine "focus" angela merkel rejected any interference for the investigation into the firm. deutsche bank shares down some 6.5%. and its hurting the banking index across the country. tin "the washington post"
debate moderators shouldn't duck says -- excuse me, i am tripped up here. i was going to tell you about a poll quote but i'm just going to talk about this. this is debate moderators shouldn't duck. the must reads today. he has his politics, it's certainly woven in here. it doesn't matter what your politics are in terms of the story. i don't necessarily agree with him, but he says three things. viewers should get an accurate sense of the facts from the moderators. he says that a real exchange should be promoted to get perspectives of the different candidates. and that you should keep in mind the audience that these debates are really going out to. i think this is really key, it's really basic and all moderators should keep it in mine and sometimes they don't. >> it's been debated how much the moderators should involve themselves, whether it is up to the candidates to pick up on the mistakes or that the moderator
should point that out. we'll see how involved the moderator gets and how well the candidates do. my must read comes from "the financial times" entitled "the global pivot toward fiscal policy." this is a famous blog for "the financial times." he acts whether activism is a reason to become more bullish about equities and more bearish for those on the ground. this is important not to exaggerate the extent of the pivot. we spoke about this briefly with joe lavorgna. if policy does pivot more to the fiscal side than the monetary side, it is anir area to focus. still to come, we'll be looking at market trade and discussing that with various
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welcome back to "worldwide exchange." we're approaching the top of the hour meaning the team is getting ready for "squawk box." we'll go to andrew sorkin with the latest. >> good morning. in the business corporate world, tim armstrong, the head of aol, in the midst of this verizon/yahoo! situation, especially given what just happened with yahoo! and the big breach, security breach. we'll talk to him. it is ad week. so there's a lot to talk to him. also the controversy with facebook and the numbers they put out about video and what all that means, we'll discuss that with him. senator chuck reid is going to
talk to us about the scandal that continues to consume deutsche bank. and in the 8:00 hour, we'll talk presidential debate with peter navarro and steve radner. we're going to be talking debate, debate, debate, debate. >> we look forward to it in eight minutes' time. taking a look at futures this morning, they are pointing to a lower open. the s&p 500 is looking like it is poised to close 11 points lower. the dow jones industrial average poised to open 80 points lower and the nasdaq poised to open 80 points lower. joining me is casey clark, vp at glenmede. casey, thank you for joining us today. >> thanks, morgan. >> this is a potentially big week with manufacturing data, consumer data, a lot of fed speak. we have the political debate, the first presidential debate tonight, we've got this meeting between oil producers in algeria
for the next couple of days. what could move the markets the most? what is the most important thing you're looking at? >> well, you're right, there's a lot going on this week. i think in regards to the oil front, we could see some interesting developments out of there. recall of the production freeze has been in talk for quite some time. it's been stalling, offgoing, ongoing, so they could come together to have some sort of freeze, but i do want to dampen expectations as far as the effect that it will have. at the end of the day, the u.s. oil producers are one of the swing producers in the world. if oil prices rise too much, you will see them come on to keep prices within the $40 to $70 range for the long-term, the next five to ten years. >> casey, is that a hard supply factor in the oil price a bigger driver than the u.s. dollar? because that's had a bit of an effect on the oil prices recently, too. >> you know, i do think that the dollar has an effect on prices, but i really think, everyone has been trying to look for the
coordination for so long. i think it will have a short-term bump to prices. but over the long-term, i think above and beyond the dollar, above and beyond anything else, it's the amount of oil that the u.s. will produce as prices rise that will have the greatest effect on prices going forward. >> that's one of the biggest factors for the equity meeting, the lack of the rate hike, what is your latest take when the fed does move? >> we think they will move in december and that the economy and markets can handle the interest rate increase. i think the communication last week was great. within a text, they singled a tone to prep the markets for a december move. but within the dot plot, they came out to say we're going to move at a slow price. we think they threaded the needle well and you'll see tightening in december and see a slow pace of rate hikes. overall, that's good for the equity markets and risk asset project. >> casey, coming to the close of the third quarter here, looking at the consensus numbers here, it looks like we're poised right now to have this sixth straight
quarter of earnings declines. how concerned are you about that? and what does that mean for u.s. stocks? we are very close to highs for a number of these indexes. could we keep going higher? >> we do think we could keep going higher, but we are uncomfortable. i want to make sure we lay out that. we have been calling ourselves uncomfortable bulls. it is 17 times normalized earnings. we are overvalued but seeing earnings rise. we are seeing the economy that looks relatively healthy. what is interesting about kind of the slow growth nature of this expansion is that it's prevented excess from building up in the system, in reducing the probability levels. so it is a bit of a two-handed argument. we are uncomfortable bulls and still recommending a healthy allocation. this is a time when a lot of people are thinking about abandoning the asset class, but we have a strong defensive tilt in the volatility cycle. >> casey, you'll be watching the presidential debate tonight, do you think the election could have a big influence on equity markets?
>> of course. i cannot wait for the debate. i don't think it will have a huge effect on the equity markets. i mean, it was interesting, i went back to look at some of the first few debates previously and you saw bush/kerry in 2004, kerry won the debate and did not win the election bid. if you look at obama/mccain in 2012, to obama did not do well in the debate but won the election. i don't think it will affect the equity markets. it is really hard to say what kind of election, what kind of policies that we can get passed depending on who wins. with uncertain probabilities, we are not recommending making the equity moves or shifts in the allocations around the debate. >> casey, thank you so much. casey clark of glenmede. don't forget to watch the debate tonight. donald trump and hillary clinton will square off at hofstra university in new york. great set of fireworks expected
with that. you can watch it all live on cnbc tonight at 9:00. that's it for "worldwide exchan exchange" this morning. " squawk box" is coming up next. we're talking within a 1% difference in reliability of each other. and, sprint saves you 50% on most current national carrier rates. save money on your phone bill, invest it in your small business. wouldn't you love more customers? i would definitely love some new customers. sprint will help you add customers and cut your costs. switch your business to sprint and save 50% on most current verizon, at&t and t-mobile rates. don't let a 1% difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com.
good morning. stocks are under pressure around the globe. u.s. stocks are falling and u.s. equity futures are extending losses. a full market rundown straight ahead. as far as stocks to watch, deutsche bank shares falling to an all-time low. we'll tell you why. plus, it is debate day. presidential hopefuls hillary clinton and donald trump are preparing to square off tonight. and the entire world is mourning as arnold palmer passes away at the age of 87, not old enough for arnie, of 87. it is monday, september 26, 2016. "squawk box" begins right now.
>> live from new york where business never sleeps, this is "squawk box." good morning, everyone. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernan and andrew ross sorkin. we have been watching the futures after big declines on friday with the trend continuing this morning. the dow futures are under pressure. dow futures down by 83 points below fair value. the s&p futures down by 11. the nasdaq down by 29. we should point out for the third quarter all of the major indices are still holding on to gains but for the month of september the s&p 500 and the dow are now in the red. take a look at what happened overnight in asia. you'll see that the nikkei was down by 1.25%. the markets in china down by a little more than that. the hang seng off by 1.5% and the shanghai