tv Worldwide Exchange CNBC September 25, 2014 4:00am-6:01am EDT
isisisis. welcome to "worldwide exchange." i'm wilfred frost. >> and i'm carolin roth. >> draghi hits a 22-month low after the ecb president says he's determined to combat inflation with all measures still on the table. european and asian markets track a rally stateside where the major indices snap a three-day losing streak on strong housing data and dovish fed comments. bend it like apple, the tech giant is left red faced after its flexible iphone is forced to
pull its latest software due to glitches. h&m reports a slowdown in sales due to warm weather. >> announcer: you're you're watching "worldwide exchange," bringing you business news from around the globe. hi, everybody everyone. i'm seema mody and coming up on today's show, is the world facing a talent crisis? a major recruitment firm tells us why the global recovery is causing companies looking to hire. nike is looking at its earnings, but could headwinds take the kick out of results? mario draghi prepares to deliver a press conference from lithuania. we ask if now is the right time to be joining the euro.
>> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> and welcome to the show. we just had some eurozone m3 money supply data come through. the m3 print for august has come in at 2% growth against an expectation of 1.9% and the previous reading for july at 1.8%. so fractionally ahead of expectations. the three-month average has come in at 1.8% for august which was as expected. so a slight pick up in money supply, but nothing significant. >> and not really having an impact on the euro/dollar exchange rate. this is driven by the conversions that we're seeing or divergence between the economic growth in the u.s. and europe and monetary policy expectations. 1.2717, close to a 22-month low. interestingly enough, we've got some flashes from the boe's -- saying the our row is a
significant risk to the uk recovery according to an interview that shefik did in the newspaper. the office seeing mixed signals on wages, productivity and they do want a well-timed frahm of eventual asset sales. and the euro is at a 22-month low against the dollar to further set on the ecb. mario draghi is currently speaking at a conference in lithuania. in an interview ahead of his speech, they pledged the ecb would do more if economic conditions worsened. draghi warned geopolitical tensions are weighing on business confidence while unacceptably high unemployment could hurt the recovery. speaking to cnbc earlier today, nabe, who sits on the board of sap, see mens and allianz says
it's to keep the euro down. >> fundamentally, you do want a strong currency, maybe not in the short run, but in the long run. i believe it's much more the geopolitical situation that is now beginning to hurt companies. companies in the west could not be hurt by the global currency. >> how significant is it that the ecb is pushing this at the moment? >> what is clear is that there's a policy divergence here and the u.s. is about, in our view, to embark on the tightening sources sometime next year while the ecb is on a slippery slope to do
more and more. all of that is going to be reflected in the currency. our view is you have to be in the exporters in europe. >> and look at that divergence you say between policy in the eurozone and in the u.s. has that priced itself into currency markets? equity markets haven't moved to the same extent. >> durntsy markets are going to move and fall further. our view is that you have to be willing to buy the dips. i think this is not the best story out there. however, european equities are not going to decouple from the global -- it's now perceived as a good day. the markets here will continue to go up. i think the difficulties is that draghi and ecb continues to keep
these expectations alive, that the ecb will be doing more and more. >> if you were to look at europe versus the u.s., you're clearly more bullish on the u.s. markets right now. what would you make you change your investment and allocate capital into europe? >> well, the issue here is i think a lot of people believe europe is much cheaper than the u.s., if you think about the policy divergence, the u.s. is about to be tightening, the ecb is likely to think the opposite. and european earnsings are depressed. but how quickly and in my view the ros in europe will come, but it will be lagging in the u.s. that's going to drive the earnings. that could be a catalyst in
change. >> you said european equities might lag equities. maybe it was expensive at 1.35. not with this exchange rate, right? it's helping exporters. >> completely. in my view, that's why you have to be in the exporters. you have to be buying germany because germany is the cheapest market in europe right now. currency falling is going to be a huge falling for germany. the price falling is going to be a huge possible for germany. >> yes, so our story within europe is you want to be in bank and you want to be in exporters such as banks, autos, airlines. if you think about the banks in particular, they are, in my view, three stages to the bank rally. on price potential they'll move banks in europe from had a to one.
that story is done. we are in that stage right now. npos are peeking, the carry trades are coming to. and the final stage at some point will be the credit, credit speaking up. we don't think this is happening any time soon, but there is an inflexion already. >> thank you very much. stay with us. we'll be talking more about japan with him shortly. we want to hear from you throughout the show. get in touch with us by e-mail, worldwi firstname.lastname@example.org or @cnbcwex. roughly one hour into the trading session, it seems as though there is a correlation between equity markets and the lower euro. now that we've dropped below that 1.27 level, the stoxx europe 600 is hitting a session high. we're up by 0.4%. a price given the strong cues
and the handover we got from asian markets yesterday. u.s. stocks rallying snapping that three-day losing streak. italy was the top outperformer yesterday and it's continuing modest games this morning. similar percentage gains seen for the xetra dax and the ftse 100 is just below the line. the energy and mining group is trying to recover from recent setbacks with efforts focused mainly on india. we spoke to the ceo about his outlook for the emerging markets. >> well, the chinese slowdown from -- it was a rapid expansion has been long anticipated, but we have to recognize that china is still growing, albeit at a slower pace from a high base. as india begins to pick up its own pace, it will supplement
that growth and it's good for the overall resource sector. >> bucking the positive trend in markets this morning is h&m. the company has reported a third quarter pretax profit of 7 billion swedish crona. that was well in line with forecasts. it is delaying its indian longe for the 2015. shares down by 3.9%. september wasn't that great for the company because it was too warm. people not buying their winter coasts just yet. apple has been forced to withdraw its update to the ios 8 operating system following several reports of dropped cellular phone service. many took to twitter to complain about the problem and customers reported the fingerprinting feature was not working after that update. let's look at apple shares. the listing in germany down by roughly 0.5%. gsk has announced the appointment of sir hanson to the
board of the company as nonexecutive director from january 1st, 2015, and that he will become a deputy chairman in effect from april 21st, 2015. not a big reaction here because this was largely priced in, very much expected. let's continue on with a look at the bond markets. we're seeing prices rising across the board this morning. the ten-year bund yield, just above 1%. yesterday we saw this falling for the first time in the session. mr. cardy is speaking in wales later on today so that may give us more direction here. in the currency markets, the big
story of the morning is the slump in euro/dollar. down by 0.5%. not too long ago, we saw this pair dropping briefly below that 1.27 level. this is as mr. draghi has once again used verbal intervention, saying he will combat falling inflation and he will use all the tools that are within the mandate to do that. dollar/yen is back closer to the six-year highs. 109.29 and we're seeing the cable pair at 1.6299. will. >> we're getting flashes out of ryan air there. agm is going on as we speak. they're saying their full year traffic forecast has been raised to 87 million customers up from 86 million. and they're saying that 2014 net profit will be towards the upper end of their range of 620 million euros to 650 million euros. the shares are trading up 2.5% so far today. coming up on the show, the latest round of u.s. led strikes target islamic state assets in
syria as britain moves closer to joining the campaign. we bring you all the details after this break. this is a burrito made with chocolate, soybeans, and apricots. what kind of chef comes up with this? a chef working with ibm watson, on the cloud. ingredients are just data. watson turns big data into new ideas. and not just for food. watson is working with doctors and bankers to help transform their industries. today there's a new way to work. and it's made with ibm.
you're looking at a live press conference. the russian downturn in growth will have some affect on european demand. we'll continue to bring you headlines from that press conference and we'll be speaking to the lithuanian central bank's governor shortly about their entry into the euro. islamic militants have continued to advantage on the border in northern syria despite a third night of air strike bombardments by u.s. forces. it targeted oil refineries in eastern syria. it came after uk prime minister david cameron told the united nations he backed british military involvement in a fight against isil. >> isil has murderus plans to expand its boarders well beyond iraq and syria.
and to carry out atrocities from around the world. it is to recruit fighters from all over the world. 500 have gone there from my country, britain. and one of them almost certainly brutally murdered, two american journalists and a british aide worker. >> hadley, mr. cameron is going to have a special session of parliament tomorrow. do you think that this time around, compared with last year, he would have to support the lawmakers? because last year, that was a big, big setback from him. >> it certainly was. it seems that we've gotten some momentum, at least in the uk at least both with conservatives and labor party leaders, as well. they're saying they want to do something. we were discussing this a bit earlier today. in terms of the narrative. it's something we've seen in the u.s. it's not a wartime narrative.
everyone has been careful to cope this we're on the road to war and path to war. we're talking about terrorists and the threat to the homeland. i think certainly here in europe and here in the uk that's the narrative going forward, as well. so as long as that narrative remains, i think we could see some support from mr. cameron. >> that is really hitting them at the core because that's the key source of funding, isn't it? >> we also know they're getting funding elsewhere. they've been using kidnappings and certainly in north africa to do that and keeping that money and using that via the organization. and also wealthy individuals, that's been a problem. and what's going to be a conversation going forward is
how the various countries, qatar, they have been doing this in saudi arabia and they're trying to do this via these networks. >> is there anything else they're trying to do to isolate the islamic access to oil? >> what we know at this point is we're working on training these forces that are going to go in and we hope to tackle the islamic threat. mostly syrian opposition members will be trained by the saudis and u.s., as well. but they won't be ready for about a year. until we can get them on the ground, i think you'll see more air strikes. >> we're just getting some flashes from s&p and japan. they've kept their rating at aa minus. they say the outlook remains negative. there is a sizable risk they say of only a slow return to the sustained inflation. they've kept the ratings the same at aa minus, but the
outlook remains negative. japanese stocks have been leading a broader rally in asia as the yen continues to fall versus the dollar, hovering near last year's six-week low. the topic index has risen around 1.4%. its highest level since june 2008. help me understand what exactly is helping the japanese index move higher. we know some of it has to do with the depreciation in the yen. japan is chasing fundamental issues when it comes to stagnation as well as an aging population. >> japan is our top global peak. we think there ever a lot of things going for it. if you think about credit growth, it's not positive in japan. if you look at the wage growth, it looks like full time participation is starting to pick up. then you have the issue that if you think about the bank of
japan balance sheet as a share of the gdp, if you compare it to the other companies, bank of japan is going to do something unprecedented. so our view is quite a good opportunity right now. >> that has already played out. that played out in 2013 when we saw the nikkei up more than 56%. this year, it is down to fractionally 1%. there is are many gains to be made on the japanese market this year. >> so i would say if you look at valuation, japan right now is the cheapest market again compared to others. there are many people who are too bullish in japan and the third arrow did not believe us. we went over japan two months ago. i think what is going for japan is this whole corporate restructuring story. the roe of japan for the first time in 30 years is now above
the roe europe. so the corporates are focusing on profitability. the official funds in japan are getting moralecations to invest in equities and they're using rr.o.e.s as one of the benchmarks. >> they're still a long way behind where they are in the u.s. and there's no real argument to suggest r.o.e.s do mean reverse and they will necessarily go back to the highs. >> absolutely. in the u.s., we are almost double this, around 15%, 16%. but this is the opportunity that corporate japan we think now understands what they need to do. they're having the incentive to focus on the r.o.e. there's a lot hanging through here. on top of that, you have the global site which is quite helpful. currencies weakening and japan is leverage play to the u.s. and global growth. >> but which sectors in particular are r.o.e.
structurally lower and which are they cyclely lower? >> well, the big one is the financials. you need to see unemployment in the finances, but protbility in japan. you're having inflationary protection going up. wage growth, where the wage growth is now, positively the best in 15, 20 years. >> after that three-day drop, we saw a lot of buyers come in and buy that dip. health care and tech are the two best performing sectors in the u.s.? >> a lot of people think the u.s. market is getting tired, we've had the five-year run and the deflation story is finishing and profitability cannot get better. our view is that there will be
more to go and financials and technology. i think financials will benefit as the interest rates start to move up and the credit growth is speaking up, as well. tech sector is the one which we think is fundamentally cheap. >> even though it's one of the best performing sectors this year? >> do you have a preference, whether it be old tech versus new tech? >> if you look at the software space, there's a clear disruption right now. we think that you're going to have a number of the winners such as google, facebook, the internal at zero. we're focusing on the growth part of the tech. >> coming back to the comments mr. draghi made this morning, it
seems as though the market is incredibly patient in terms of what could be forthcoming from the ecb. now they want qe. it seems as though the market can't get enough. >> we are bullish on european equities, but we don't think this is the best story out there. we are not even sure that next week draghi will be able to deliver the numbers. what kind of sides we are talking about of this private qe purchases. so we think unless there is a sovereign qe, what they are hoping for to extend the balance sheet of the ecb closes to three, we think that's unlikely to happen. >> thank you so much for your
time today. we've got a very exciting story to talk about. >> it takes a steps closer tonight as it plays his final game in the bronx tonight. fans are paying big bucks to see jeter at the stadium. the average ticket price, $845. the get-in price is $362. and for a chance to sit in the legends box behind the yankees dugout, that's going to cost you almost $10,000. >> is $865 too much? join the conversation here on "worldwide exchange." get in touch, e-mail us. email@example.com or tweet us@cnbc we can say. i have to say i don't know much about mr. jeter.
i've been reading up about it. 20-year career, five world series titles and 14 times in 20 years that he's appeared on the -- sounds like $800 is not too steep to go and see him play one last time. >> you said heavy rain is forecast. did they get the money back for the tickets? >> of course not. have you ever been to a sporting event? >> yeah, but i never got rained out. so if you pay this, have the sellers already spent the money or do they pay it back? >> i don't think so. i think you lose your money. i think it sounds like a reasonable amount to pay. i don't know. if i was able to be -- >> is that derek jeter? >> not in my opinion, anyway. >> how much would you pay for that? >> it's not even a last match. i'd like to go back and see them in their hay day. i bet that's what the yankees
fans would be like. >> that's not possible, you know that. >> we're talking hypotheticals. >> who is your greatest sporting hero? how much would you pay to see their final game for your great team? apple on the defensive as bending iphones at an unsatisfactory ios update riles users. we find out how much bend-gate could hurt the tech giant after a short break. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics.
draghi does it again. the euro hits a 22-month low after the ecb president says he's, quote, determined to combat falling inflation with unconventional measures still on the table. european and asian markets track a rally stateside where the major indices snap a three-day losing streak on strong housing data and dovish fed comments. bended like apple, the tech giant is left red placed after its flexible iphone draws ridicule and is forced to pull its latest software due to glitches. h&m is one of the worst
performing stocks in europe after the swedish fashion giant reports a slowdown in sales due to warm weather. let's have a look at european markets. we are trending slightly higher this morning. this is after we saw the strong performance in u.s. and asian markets. the ftse 100 is modestly higher. it's one of the relative underperformers. we're seeing stronger gains for the xetra dax. the cac 40 up by 0.3%. maybe this is because we are expecting more from mr. draghi after his pretty dovish comments overnight. >> absolutely. let's look at bond markets. yesterday in the u.s., we had a $35 billion five-year auction that came through at 1.8%. that has pushed yields across the board in the u.s. a little higher. the ten-year yield is edging back up towards 2.6%. currently at 2.56%. ten-year yield in germany, bang on 1%. gilt 2.48% and italy at 2.35%. >> and the big story in the
currency markets this morning, no doubt about it. it's the euro/dollar. euro/dollar at 1.2715. about a half an hour ago, it dropped briefly below that 1% handle. more dovish rhetoric coming from mr. draghi overnight. the dollar index close to four-year highs. sterling/dollar, 1.6291. currently down by 0.3%. maybe that will give us more. apple has been forced to withdraw its update to the ios 8 operating system following several reports of dropped cellular service. disgruntled iphone service took to twitter and complained about their problems. customers reported the fingerprint reading feature was not working after the update. in a statement, apple confirmed it had received reports of a problem and was, quote, actively investigating the issue. shares into the tech giant dipping on the story ending yesterday's session just under
1%. so i think the question is would this delay customers from getting the iphone 6? iphone 6 has been one of the drivers of forward earnings for apple. that i think will be the question. >> i think the most significant thing here is the ios issue. so crucial for all apple fans is the issue. this bendable thing, i'm sure it will be fik. in the video, we have people trying to snap it. >> roughly 15 million views. clearly there's a lot of interest. if anyone can, you know, stomach some bad publicity, i think it's apple because people are going to be buying the product no matter what. and worth noting back in june 2010, when the iphone 4 was released, there was some very poor product reviews of that, too, and that didn't deter any buying, did it? >> it didn't. i think in the short-term there were concerns, but at the end of
the day, people want the latest and greatest apple kwies. >> and the sales of iphone are still doing very well. >> facebook has revealed more details about its plans about what appears to be drones to provide free wi-fi to the world's population. the social networking giant says the males will be roughly the size of a 74 had 7, but much lighter, and will be solar powered. facebook hopes to test one of its planes in the u.s. by 2015 and have them sending out wi-fi signals in the next three to five years. shares of facebook up about 1.3%. we've got deal news to tell but this morning. the spanish insurance company mapfre is looking to buy direct
line. mapfre is currently down 6/.4%. air france klm have offered to put its low cost plans back in the hanger. they have been on strike since the 15th of september. they are worried the low-cost brand could impact on their pay and condition. we're joined now by stephane pedrazzi in paris with the full story. >> the market seems confident that the strike could end by the end of the day. shares of air france klm are up nearly 9% after a 1% gains yesterday. it's a series of sharp declines since the beginning of the week. both parties have been negotiating last night until
4:00 this morning. the whole project to report, the low cost oount. it would allow others to pilot with local contracts with obviously more working hours and lower wages and than what they have in france. the french stake, which has a 16% stake in air france klm has been pushing for a swift resolution given the cost of the strike, estimated between 10 and 20 million euros. on the short-term if the strike the coming in the next hours. >> stephane, thank you very much. you're looking at live shots from beijing where the chinese
premier is welcoming spanish prime minister mariano rajoy. the two sides are expected to sign bl business deals around $3 million euro these week. they will sign a total of 14. we'll bring you more on that as we get it. global recruitment firm hayes says the talent worldwide continues to worsen as these companies struggle to get the talent they need. in its global skills index, they outline the need for organization to engage more effectively with schools and university toes reduce the talent mismatch currently being seen across the world. joining us now is alistair. thanks very much for joining us. the mismatch that we just referred to, give us a quick outline of what exactly that is. i believe your report says it's the biggest mismatch necessary europe. >> in the u.s., that's certainly
correct. every year, we do an annual skills survey. the white collar recruitment market around the world, we cover 31 countries in the report that we've just published today. and the good news is, this is the first year that we've published the report where most of the economies that we operate in are actually enjoying some form of economic growth. that's the good news. as a result, johns jobs are being created. what we find now, more and more, including here in the uk, is that the skills available in the domestic workforce are not in sufficient supply for the vacancies being created by indices. that's what we call the mismatch. >> is that because too many people are going to university rather than going into skills specific training? >> i think it's a combination of account factors. when we look at the economies around the world, we believe they're doing maybe a better job at balancing supply and demand of skills. things like aplentyisship in germany are particularly strong, vocational training, as well as the graduate training that we
see in many countries around the world, including here. and i think it's about getting that balance site between graduate training as well as vocational training. >> but if there is a war for talent, why isn't there more outside pressure on wages, specifically here in the uk? you would think wages are going to rise dramatically as a result of that demand. >> that's a very interesting point. because in the world that we operate in, white collar, professional, technical roles, we're already starting to see wage pressure and wage inflation, certainly above the rate of inflation in the uk in more and more sectors, whether that's construction, technology, for example, engineering in general. when you look at the overall uk ons data around wages, it certainly indicates that wage inflation is pretty much nonexistent in that country. however, when you start to drill down into specific sectors where you're starting to see insufficient supply of skills for the jobs that are being created, we're starting to see more and more pockets of wage inflation.
it's just a question of time in my mind before that starts to ripple out into the broader economy. >> talking to experts over the last couple of years, in the emergence of the recovery of the financial crisis, a lot of people said, look, what we're looking at is a jobless recovery. what we're looking at is temporary jobs versus permanent jobs being created. has that turned out to be the case or were those words overdone? >> i think there are elements of that in many economies around the world, including here in the uk. i think where the downturn that we've been through over the last few years has been different from the past is there has been a very grownup relationship between employers and employees to try and protect jobs as best they can. whether that meant working part-time, for example, to at least protect employment. and i can that's one of the key reasons why we didn't see unemployment in this country go to the sorts of levels that maybe forecasters were predicting a few years ago. i think as a nation, we did a good job there. clearly, the latest capacity in
the uk system has been taken up. so that is not really mitigating against some of the shortages that we're seeing now in more and more areas. >> alistair, the labor party is promising to raise the national minimum wage to 8 pounds. do you think that would be well received by companies here in the uk? >> we're operating more in skilled engineers, for example, across the technical world. so i couldn't really comment on that. what i would ask, though, is that politicians recognize that our businesses in the uk are in competition with businesses all around the world. and we should be looking at ways to help our organizations and our private sector become more competitive not less. and i think putting in place things like high levels of minimum wage in a world where legislation exists in other countries. >> in reference to germany in particular, says the demographics will have a
critical impact on the economy in the near future. how is that for economies and which is the most effective? >> there are a handful of countries around the world. because of aging populations, they're going to see quite a reduction in population over the years. >> germany will be the most impacted in the u.s. that's simply because of working age populations as they age. that will put greater demand on the workforce. germany is one of those markets in an engineer driven economy. and that is lickly to get worse before it gets better. >> alistair, thank you very much for joining us. coming up after the break,
ecb president mario dratgy says lithuania's membership to the euro could give the country stability and geopolitical risks from russia. we ask the country's central bank governor if he agrees. we'll be back in two. i love having a free checked bag. with my united mileageplus explorer card. i have saved $75 in checked bag fees. priority boarding is really important to us. you can just get on the plane and relax. i love to travel, no foreign transaction fees means real savings. we can go to any country and spend money the way we would in the us. when i spend money on this card i can see brazil in my future. i use the explorer card to earn miles in order to go visit my family which means a lot to me. ♪ i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates
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in her first interview since she took on the role, boe shafik called to pull the eu out of stagnation, urging them to adopt more growth friendly measures. shafik says the boe would have to move more quickly on rates if productivity does not increase as much as wages. mario draghi is currently speaking in lithuania. while unacceptably high unemployment could hurt the strength of the recovery. on the 1st of january 2015
lithuania will become the 19th member of the eurozone, the last baltic state to join the block. euro membership may give lithuania stability in the current geopolitical environment. joining us now on the phone is the governor of lithuania's central bank. thank you so much for taking the time to speak to us today. you're joining the eurozone at a time when the recovery is stalling, when there's a risk of deflation and the unconventional measures put forward by the ecb. we don't know if they're effective. why is it right for you to join? thanks for the question. the exchange rate regime, it was very important issue for stabilizing the economics in
lithuania so that the reference to the eurozone, i would say, is very, very -- next step for logical step for economical development. those main factors, those to main benefits in reference to the eurozone. a small, open economy those two factors are very important. >> i'm sure you've had the chance to speak to mr. draghi. and the message that we're getting from him overnight is more could be forthcoming in terms of stimulus. do you think that would be the right thing to do? >> just wait a little bit because on monetary issues will
be held next week in naples, so just wait if it would be -- how to say -- i come back on demand of course. >> and this after -- i don't want to be crude, but i wanted to ask, if things get much worse again in the eurozone economy and indeed in your own, what makes those things that lithuania can fare better and internal devaluation than the likes of greece, spain and italy four or five years ago? >> i think lithuania and countri countries are quite good at popular reforms. of course, we undertook the economic adjustments. but in the short-term, it was
shock but it helped. and now we can enjoy three years of one of the biggest in the eu. >> do you think joining the eurozone will provide lithuania as safeguards with russia? >> absolutely. integration is the main and elimination of exchange rates risk of national currency is very important. >> surely, you would have got those benefits by just being a member of the european union. you didn't need to join the single currency. to what stint is joining the euro politically driven rather than economically driven? >> i am a politician. so i would like to concentrate on economical issues.
as we said before, the euro introduction is very rationale next logical step because we have currency boards. we have exchange rate regimes. we introduced the euro more than 12 years ago. so now we formally join. >> thank you so much for your time, vitas. worth noting, they still expect growth of 2.9% this year. this is one of the fastest members of the eurozone. >> they are suffering from similar stagnation. >> maybe some others can learn something from lithuania.
>> i'm a very positive leader. i'm not -- you can find a quote of two where i'll talk about various microsoft competitors on the competitive side. but mostly, you know, i'm very positive about my guys and what we're doing. i love the microsoft surface. i like the microsoft windows phone. i love the l.a. clippers and yeah, i'm going to be enthusiastic about those things. >> you have to love the enthusiasm. after spending $2 billion to buy the team, he says he is pleased with his new basketball venture. he worked at microsoft for 34 years. while ballmer left the board last month, he is still the largest individual shareholder with a roughly 4% stake in the company. so ballmer, he's doing okay. another man doing well in his career is derek jeter. his 28-year career comes to an end this evening as he plays his
final game in the bronx tonight. even with heavy rain forecast, fans are paying big bucks for this chance to see jeter at the stadium. the average ticket prior to price is $845. the get-in price is $352. for a chance to sit in the ledgeends box behind the yankees dugout, that's going cost you almost $10,000. >> so we're asking you, how much is too much? what would you be willing to pay to see your favorite stars last stand? if you want to join the conversation here on "worldwide exchange," get in touch with us via twitter @cnbcwex. peter has written in and he says what i would give to watch the last ever is dell to beat arsenal. >> i think that is a bit of sabotage from one of our producers with south hamp to know. do you know who le tiss is? >> no. >> he was a great footballer and sadly that was referencing a
goal he scored against my very own arsenal. another tweet, this comes from david strictler, reference ts interview with hays, he says job disparity is all the more reason not to have business and finance doing central planning for economies. referencing that interview with the with hays talking about job disparity. otherwise, what sporting event what do you like to see, carolin? >> tennis. i'm a huge tennis fan. i would do anything, anything in this world to see agassi play against sampras. >> i agree, that would be pretty good. didn't they play one wimbledon time, must have been about 15 years ago? >> yeah, yeah. >> we get to relive that moment. >> seema. coming up later on the show, we've been putting so much focus on the ipo market from citizens to alibaba, go pro, we're going to talk to one of the top deal marriages from goldman sachs and
ridicule and it's forced to pull its latest software due to glitches. u.s. forces take aim at the islamic forces in a third day of attacks. >> we must not be so frozen with fear that we don't do anything at all. isolation and withdrawing from a problem like isil will only make matters worse. >> you're watching "worldwide exchange," bringing you business news from around the global. i'm carolin roth. coming up on today's show, we speak to the global head of fx strategy as an institutional investors ranked his team the top in the u.s. it's the best performing of the year and its stock has surged more than 80% in the last month. find out what company is reaching new heights in the next hour. fans are doling out big
bucks to see derek jeter play his last game for the yankees. find out what tickets are going for and how much is too much? >> announcer: you're watching "worldwide exchange," bringing you business muss from around the globe. >> yesterday, the euro went below the crucial 1.28 level against the dollar. to add to that, mario draghi saying unconventional measures are still on the table this morning. >> not good for some of the multi nationals. what does that depreciating euro do to their bottom line? >> absolutely. those comments from mario draghi having a significant impact today. >> about one hour ago, the euro/dollar briefly dipped below that 1.27 level and fueling
expectations that there will be some action taken next week. but the euro dropping on expectations of the ecb. mario draghi is currently speaking, but in an interview ahead of his speech, the central bank president pledged that the ecb would do more if economic conditions worsened. geopolitical tensions are weighing on business tensions while unacceptably high unemployment could hurt the strength of the recovery. how are u.s. futures looking? >> it would be interesting to see how u.s. markets react to that movement in the euro. the lowest level since november 2012. right now, you can see arrows pointing to a higher open. the dow jones up about 16 points in trade. some say yesterday's move in the u.s. markets seem resilient, given that there are buyers on the sidelines waiting to get back in and buy that dip after that three-day sell-off. taking a look at the ftse cnbc
global 300 index, down about six points. a good gauge of stocks around the world. let's dive into the uran markets. we are looking at the euro trading at the lowest level since november 2010. how are markets responding? they're.responding to the upside. we have the ftse 100 trading higher about 2 points. german markets up about 45 points. we did get weaker than expected german sentiment data. today, markets bouncing back a little. it will be interesting to see what mario draghi has to say. >> we're seeing prices pick up slightly. why did prices move lower yesterday? firstly because we saw lower safe haven demand. we saw the uninspiring five-year auction. the ten-year bund stuck at 1%.
the ten-year gilt is below the 2.5% level at 2.479%. in the currency markets, though, as seema pointed out, it is all about the euro/dollar exchange rate this morning, dropping precipitously down by 0.4% now. but off the session lows as i mentioned before, it did briefly fall below that 1.27 level not too long ago. and this is obviously in expectations that we will be getting more from mr. draghi. the dollar/yen pair, 109.25. sxt aussie/dollar, keep in mind that the central bank dmrfr in new zealand has been talking down the kiwi dollar today. well will. >> carolyn, that you can very much. apple has been forced to withdraw its update of the cellular service. disgruntled iphone users to took
to twitter to complain about the problem. the fingerprint feature was not working after the update. schayes in the tech giant ended the session just 1% down. a big issue for apple. is it the operating system that's the big issue or the hardware? >> i would have to say it's the hardware. if you buy a smartphone from apple, you are buying into the ecosystem, into the aesthetically appealing device. i think if it bends, you're going to think twice about buying one. >> absolutely. head to our own website for our own take on bend gate. >> gopro stock is at a new all-time high making it the best performing ipo in 2014. that according to did i alogic, surging about 8% yesterday on
rumors gopro will be releasing a new camera sometime in october. this amounts to nearly $10 billion and the stock is up almost 150% since its debut on june 25th. i was there at the nasdaq when gopro went public. definitely an exciting moment. you have to realize there is a lot of interest in this company not just from a business perspecti perspective, but this is a brand name that has mass appeal. not too bad for citizens after listing at $21.50. that was less than the originally anticipated price range. that values the u.s. retail lender at $13 billion. the offering, which is the biggest bank ipo since the financial crisis raises 3.5 billion for uk owner rbs. we're now joined by alistair
warren. alistair, great to have you around the desk. is it fair to say that the uk and the european ipo market is back with a bang? how would you describe the dynamics and how is it different from the first of the year? >> so i would say it's definitely back. i'm not sure it's back with a bang in the sense that relative to the first quarter of the yee, the -- it's definitely, i would say, more balanced. people are more selective and price sensitive. but it's still functioning. >> you're talking about price sensitivity here. does that automatically mean investors have more bargaining power when it comes to some of the valuations? the companies will simply have to accept that valuations won't be as high as they were in the first half of the year. >> yeah. i think in the -- it's not quite the first half, but certainly the first quarter of the year that was very, very broad, widespread participation across
the globe. i think now people are being much more selective. some have been slower, particularly out of the u.s. as a result, it's the breadth of supply, fund flows, i think there will be some weakness on price. >> how much is the slowdown across the eurozone impacting investor sentiment, italy back in recession, some weaker than expected data out of germany? is that stopping deal flow because it doesn't seem to be. >> people are looking forward on a one, two, three-year review in terms of the recovery that people could expect. but i think the news flow that is coming through on a macro point, whether it's europe or elsewhere, inevitably have an impact on volatility and short-term sentiment. that, again, speaks to some of the pricing. >> i want to touch on the rbs system ipo. obviously, rbs had to cut the price range for that. to what extent was that ipo with its hand forced given its fixed
stake in the company? >> this has been part of an ongoing restructuring in rbs. this is just one of an ongoing series of transactions. but there's no doubt that there was a regulatory requirement to move forward with these types of operation. >> will we see more financial ipos now that citizens has gone public? >> i think broadly speaking, you will see a number of financial snoozes needing to look at sort of different assets and different businesses that they have. sometimes the regulatory pressures, sometimes to improve their returns. but i think the position itself isn't going to trail that. but the broader back drop means this will be other transactions at this time. >> what is the biggest risk out there for the ipo markets? is it valuations going too high? is it geopolitical risks? is it a risk that we don't know about and you're losing your sleep over that you want to
share with us? >> no, look, i think it's important to emphasize that the ipo market is working fine. it's just not quite as heavy has it was. that being said, i think valuations have come down a little bit as alternative buyers coming and beating with these assets. last week we saw in the nordic market tdc buying, we saw this morning gac taking 50% in the iac as an alternative to that going public. i think institutionalal buyers say if i'm not prepared to bid up, i'm not going oth the opportunity to invest. >> you're losing sleep on what to watch in today's trade? have no fear. the rundown is here. weekly jobless claims are out at 8:30 a.m. eastern, forecast to
rise 299,000 along with durable goods for august which economists are expecting to fall 18%. so that will be a number to watch, but get the latest figures from the purchasing manager's index and results from the kansas city fed survey at 11:00 a.m. eastern and more fed speak ahead from atlanta. that's president dennis lo lockhart. still to come, david cameron seeks approve for military action against the islamic state. we get you the latest on the conflict right after the break. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement.
we're going to bring you some news on a ruling from a moscow court that the tech chairman of sistema has lipheld is under house arrest. as you can see, the stocks down more like 6.5% off the back of this news. islamic mill at that points have continued to advance on the turkish border in northern syria. despite his third night of bombardment by u.s. forces. the latest air strikes targeted oil refineries in eastern syria and a bit to -- the group of
revenue. >> isil is not a problem restricted to just one region. it has murderus plans to expand its borders well beyond iraq and syria. and to carry out terrorist atrocitisies across the world. it is recrewing new fighters from all over the world. 500 have gone there from my country, britain. and one of them almost certainly brutally murdered to american journalists and a british aid worker. >> let's get back to our middle eastern correspondent, hadley gamble. she joins us now around the desk. mr. camera says we want to go to war. is that his message or has he been fine tuning that? >> that will be the challenge for him as well as the challenge going forward for president obama. he's going to have to frame this
in such a way at a time doesn't scare often the british public. i believe there's growing support. nobody wants this to be a road tour narrative. these are extremists posing a threat to the homeland in the uk and in the u.s., as well. >> and i think it's very different from 18 months ago when boots on the ground were considered in syria. it is not boots on the ground yet and already people have seen that there's been allied forces going ahead of us. we're not the first to take action. >> we're going to watch it play out in parliament tomorrow and to date, but what's interesting, as well, you have to remember what are we talking about? are we talking about air strikes in syria, are we talking about training iraqi forces? we know the iraqi government, of course, has asked for the assistance of the u.s. are we talking about training
syrian opposition members, as well? there's a lot of different questions there. >> president obama yesterday at the u.n. assembly said the fight against islamic state will require global support. which other countries do you care will play an active role in isolating isis? >> i think the uk being in that close relationship with the united states, someone that they want to have their back always, i think. and the gulf states are playing a bill role here, on role that we haven't seen them play in the past. they're overtly going out there and saying this is a threat to us and we're going to go to another country to take care of it. >> russian downtun will hurt europe. mario draghi says the ecb is standing by with extra support if needed. from excitement to anger, the reception of apple's latest offerings turn sour.
u.s. forces take aim at the islamic oil against isis after a third attacks on syria. we have one of the top dealmakers in goalman sacks. more of that coming up on wex. know that proper allocation could help increase returns so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today.
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welcome back. let's take a look at u.s. futures. right now indicating a higher open for the dow. s&p 500 slightly lower. nasdaq up basically trading flat. of course, this coming in after stocks rebounded in yesterday's trade after that three-day sell-off. some investors calling the u.s. market resilient. after that rebound, dovish commentary from some of the fed officials as well as better than expected housing data providing fuel to the markets. >> in the currency markets, we're seeing the dollar continuing to climb higher close to that four-year high in terms of the dollar index. and the currency markets towards the euro/dollar concern, 1.2726, close to a 22-month low. at one point about an hour ago, ee dropped below that 1.27 level
on the back of more dovish comments coming from mr. draghi. the carlyle group has confirmed it's entering an agreement with singapore's sovereign wealth fund gic to become a shareholder in rac. that's the second largest roadside assistance provider in the uk. carlisle will become the majority shareholders in the company after the completion of the deal. who better than alistair warren to give us a little bit more color and reaction to this deal being announced. we typically don't see sovereign wealth funds play such an active role in the deal space. what are your thoughts there? >> as has been widely speculated, the fact that the ic has come in and taken 50% of the business i think is quite significant. i expect that we're going to see a lot more of this direction into assets coming from
sovereign wealth funds from different geographies around the world, not only participating as lps, but investing directly. certainly from our business, we see that as an increasing trend, particularly with the types of assets likely rac, long life, very stable, cash flow generative and those are the assets that they can buy and hold for a long time. >> was it concerned about valuations and could they still be looking at an ipo down the road? >> i think that the likelihood is that the ultimate pathways or the rac sometime down the road is an ipo. but equally, you know, in what we were talking about earlier, the ipo market is off a little bit and, therefore, when you evaluate the -- all the different riskes and rewards, valuation and other considerations, i'm sure carlisle fits the view that having a firm bid from, you know, somebody that could take 50% of the asset now relative to going to the public market was just a more attractive on a risk and value return basis. >> more deal flow like this away from ipos.
to what extent is that just companies want to go make the most before they're taken away and rates go up? >> yeah, so look, i think whether it be the likes of gic or strategic buyers, i think what you're seeing is typically financing as you say is relatively cheap and i think there's increasing pressure in this more stable environment for people to put that capital to work and investing assets. that's why i think you're going to see the strategic buyer step up and around in the situation. >> in the u.s., we're seeing this rise in the number of activist investors like carl icahn. has that translated in europe and who are the big players? >> the answer is yes. i don't think it's been as prominent yet. as we look at different areas of our business, the response to activist investors that may want be quite as public yet in europe, but the response to those is a very big focus for a lot of corporates. i think that will act as a
catalyst for a number of corporate actions we would like you to see over the coming months and years, to be honest. >> as we look at the investment banking stage more broadly, most of the big players are withdrawing capital from that space. is that an all-out bet on the strength of the global economy? >> we have been able to benefit from a stable flow of business and a stable -- a great deal of stability in terms of our people. as a result of that, they've had heading in the opposite direction has meant he's been able to capture market share and delivers the performance that we have. i think it's stick to go what we do best and. ing to what we have for a very long period of time. >> we're expecting to see ipos in the next couple of months. is the u.s. market providing perhaps a fuel to the uk or the european ipo market here? is that excitement that we're
seeing around alibaba and the ipo market there perhaps being translated to europe, as well? >> so alibaba is clearly a unique transaction by sales, level of demand. just so many characteristics. that being said, i think the level of excitement around very distinct assets, whether it be alibaba or a rocket internet or any of these high growth differentiated assets is something that is very popular here in europe. and while there is some correlation between the two market, the sentiment in both markets is actually quite separate. so i think that you talked about this very strong performance you've seen around some of the ipos. but i think one of the challenges we've had here in europe is some of ta performance has been a little mixed. not around those distinct assets with you but around some of the more let's call it typical assets. >> thank you so much. fascinating conversation around the deals, alistair warren from goldman sachs. still to come on the show,
exchange." i'm seema mody. >> and i'm wilfred frost. >> draghi does it again an the ecb president says he's determined to fight measures. >> european markets major indices snap a three-day losing streak on dovish fed comments. bend it like apple. the tech giant is less red faced after it's forced to pull its latest software due to glitches. and u.s. tech forces take aim in a third night of syrian attacks, this as uk prime minister david cameron calls on parliament to sanction british air strikes. >> you're watching "worldwide exchange," bringing you business news from around the globe. >> if you're just tuning in, here is a look at how u.s.
premarket trade is fairing, right now, point to go a lower open. the dow losing steam here, down about 3 points in early trade. s&p 500 and the nasdaq indicating a lower open. this, of course, coming after what we saw as a rebound in the u.s. markets. after that three-day sell-off, a lot of investors say that had to do with better than expected housing data as well as dovish commentary from fed officials providing that boost of stocks indicating a lower open. a quick look at the ftse cnbc global 300 index. currently down just about 6 points, but trading at session lows. on that note, take a look at the european markets because that's where we've been watching this moment to the upside. the ftse 100 now is trading into negative territory. down about 8 points on the day. the xetra dax up about 36. the cac 40 is up about 10. and the italian market continue to show positive momentum. the focus really has been on the euro which continues to depreciate against the u.s.
dollar trading at a 22-month low. >> this among expectations of further steps from the ecb. the central bank would do more if economic conditions worse b in the eurozone. and just rang by institutional investors. congratulations on that. let's talk about the euro moves this morning. mr. draghi is certainly the master of verbal intervention. but i can't help it. i'm thinking this move to the downside, that's looking a little stretched, both in terms of the dollar move to the upside and the euro move to the downside. >> yes. i think the important thing to keep in mind is that this is a very, very global dollar move. we've had a pronounced move against the -- since late july and we've had emerging markets in recent weeks. obviously, draghi is doing his
very best to have the euro participate in that move, but it's more a dollar move than a euro-specific trend. and the question is whether when they have the next ecb meeting they can actually live up to sort of the expect ages that draghi is building through these comments that he has been issuing repeatedly now. >> if you're saying that this really is driven by the dollar movement to the upside, what mr. draghi could do, essentially, is lean back, relax, wait for the dollar to strengthen further and that will solve the disinflationary pressures themselves, no? >> i think he wants to be a bit more active than that. certainly he has been very, very vocal about the divergence in monetary policy between europe and the u.s. over the last several months. he's going to continue to stress that. that's a way to give the market further momentum. but i think in the big scheme of things, the u.s. data is improving, for example, we expect on friday the gdp for the second quarter could be revised to 5%.
a lot of different indicators are breaking out. this week, we've had obviously the housing data looking better. but it's on a broad basis. economic data is looking better. and that really means that the fed exit from zero rates getting closer and closer and that's what the market is preparing for. it's a very broad-based move. it's getting big. it's a structural move, so i think it can run further. >> but at some point, the strengthening of the u.s. dollar will be a concern. isn't that right, jens? we're looking at the dollar now trading at i believe a four-year high against a basket of currencies? >> yes. so certainly from a trading perspective, this move we've had is a substantial one. i think from a macro perspective, if you think about how it feeds into the forecast, it's a little bit different because the u.s. economy is still relatively closed and, therefore, you need to have very, very pronounced move for it to feed into inflation forecasts and gdp forecast. so at the moment, we don't think
it's something that in itself will make the fed change the timetable for a move. the most important thing to watch in that context is inflation. that's where you can see the impact on headline inflation and that's something we'll have to watch in the next couple of months. can we see an impact through import prices? i think that is the first thing to watch. on gdp, i don't think there will be much of an impact quite yet. >> jens, some would say that the sentiment around emerging markets have improved over the past couple of months. which currencies do you think could benefit from this? because we have seen the indian rupee appreciate, much of that having to do with modi and the optimism about what he can do to the indian economy. >> yes. so since february, we've had much better emerging market sentiment. and there's some stories that are very positive from a local perspective. so the indian politics, obviously, giving investors hope that we can have a structural bull run there. potentially in brazil, we can
have a political change there, as well. but i have to say, don't forget about the fed in the context of emerging markets. a lot of people are focused on trading the dollar against the euro, against the yen, and has been working very well. as we head into the fourth quarter, and we get very close to fed liftoff, there's going to be a number of emerging markets that's going to participate in that dollar strengthening trend, as well. so you have to start differentiate where are there specific good stories and what's the underlying trend that comes from u.s. monetary policy? >> and i wanted to touch on the australian dollar. it's off 6.4% since the 5th of september and off some 17% since april last year. very big moves. it seems like more than just an unwinding of a carry trade to me. >> yes, i would say in the context of the australian dollar, keep in mind how weak commodities have been. so commodities play a crucial role for australia, play a
crucial role for our countries like canada and new zealand. and the currency moves i think we see as a combination of the dollar move and then this pressure from commodities. it doesn't look to us like these moves have run too far. because there was a period of time where, for example, the australian dollar was holding up too well. it's almost like it's catching up to the signal we have gotten for commodities for several months and from that perspective, we don't think it's overdone yet. >> jens, thanks very much for joining us, jends nordvic at nomura. >> let's take a look at your top stories this morning. islamic militants have continued to advance on the turkish border in northern syria despite a third night of airial bottom bandment led by u.s. forces. in a bid to starve the forces of
revenue. cameron said he backed the forces in the fight against isis. what's the latest, hadley? from an investment point of view, geopolitical tensions seen as an issue for these market. >> it is. some of the guests we've been hearing from this morning, they were just saying emerging markets, despite everything we're seeing, there's still appetite for emerging markets. what we've been seeing over the last few days, saudi arabia, the gulf states making this sort of overt stand in terms of going after isis and containing isis, hopefully to degrade that threat. we looked at the markets over the last couple of days there. saudi national day two days ago. yesterday the markets opened. i think that investors there, while just sort of waiting to see what happens next, i think what we could see is sort of a step back if you continue to see civilian casualties. we know the civilian casualties have been quite low, at least in the reports that i've seen so far in terms of these air
strikes. but if that number were to go up, i think you would have some pushback from the gulf states. >> hadley, thank you very much. still to come on the show, apple on the defensive. is bendy iphones and an unsatisfactory ios update riles users. we'll discuss bend gate after the break. they're custom made trains.
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take a look at shares of gopro. the maker of the action camera on a four-day winning streak. the stock has more than tripled going public making it the best performing ipo in 2014. it's really interesting to see that just yesterday, it was up about 7.6%. over the past three months, up about 150%. there's some rumors on the street that the company will perhaps unveil a new camera. that might be one of the reasons you're seeing shares outperform. a pretty great right there for gopro. >> i just wish i had a use for a gopro camera. it would be cool to use the gopro. one man certainly is good enough is derek jeter whose illustrious 20-year career is facing his final home game in the bronx tonight. fans are paying big bucks to see
jeter at the stadium. the average ticket price is $845. the get-in price is $362. and for a chance to sit in the legend box behind the yankees dugout, that's going to cost you almost $10,000. >> so we're asking you, how much is too much? what would you be willing to pay to see your favorite star's last stand? if you want to join the conversation here on "worldwide exchange," get in touch with us via twitter @cnbcwex. peter wrote in and says, what i would give to rewatch the last goal ever le tiss beat arsenal. and i would totally pay 100,000 pounds to see christian renaldo's last game and ends with #remortgagemyhouse. what if it rains? what is it gets rained out? it can enjoy the game. he lost all theyankees. this is derek jeter.
he's an icon, a role model. he's one of the most famous baseball players out there and this is a big day for new york and for the yankees. >> absolutely. i do understand the $10,000 would be pretty miffed if you miss the game. let's hope there is no rain and that it's a blockbuster sign up. >> what is peeved? >> disappointed. >> we've got all languages here. what our? >> plenty. >> plenty. there we go. let's remeend you what our headlines are so far today. russia's downturn will hurt europe says mario draghi. the ecb is standing by with extra support if needed, sending the euro to a 22-month low. from excitement to anger, the reception of apple's latest offering turns sour. and u.s.-led forces take aim at islamic state forces on a
third night attack on syria. nike getting set to report owneri i earnings after the bell. will it be a winning stock? we'll talk to an expert next coming up on "worldwide exchange." your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us.
appearing is trading lower in frankfurt. this after a series of snags hit the tech titan's latest software update. for more on the story, mary thompson joins us now from cnbc hq. >> good morning. it turns out that an apple a day may not keep angry customers away. wednesday proved to be a tough day for apple after a searry owes snafus led apple to retract its new updated software system. a number of serious issued linked to cell service, data
service and the new security feature. the update was supposed to fix several bugs plaguing the system apple rolled out to the public last week. apple released a statement yesterday saying they were aware of the problem and were actively ip investigating the report. on top of that, a handful of customers were complaining about blue tooth's connectivity being a product in their cars. the troubles with the update, of course, coming after reports of service about the new aluminum iphone 6 and 6 plus bending too easily under pressure after being left in customer customers' to happen pockets for too long. once again, taking a look at shares of iphones, the iphonemaker at this apple slightly lower trading at 79.44. back to you. >> thank you, mary. apple has so far declined to comment on bend gate. stephanie from nbc news filed
this report. >> good morning! >> the launch was a big success. >> they are the best iphones we've ever done. >> reviewers trade the iphone 6 for everything it does well. but now criticism over something it shouldn't do, bend. >> the science today, i'm going to bend this iphone 6 plus. >> some new users say this phone was a sleek aluminum case was too fragile. unhappy customers are venting under a new hash talking, bend gate. the new iphone 6 offers greater flexibility than ever before. the new range of smartphones have shown a tendency to bend before. samsung's galaxy is4 and the astonia z1 had a similar problem. >> if you put them in your pocket, they're at a likelihood for benning. >> an update to the new
operating system ios 8 is triggering new problems with the thumbprint reader and phone service. tonight the company is investigating the service and updating the software. at apple, there are still some things that don't bend under pressure. stephanie gosk, nbc news, new york. let's update you on the markets. ur yeah markets have taken strength from that bounceback yesterday. but also further talks that we might get more stimulus here in europe from mario draghi earlier today. italy is up about 0.5%. france is up 0.25%. germany, 0.4%. ftse 1 00 is fractionally down. euro/dollar was below a very important 1.28 level. unconventional measures are still on the table if necessary. it's, in fact, touched below
1.27 earlier in trade. it's now at 1.2729, down about 0.4% on the day. i want wanted to focus on the u.s. aussie -- dollar paring. a big move again in the ausssy/dollar paring. it's down around 0.34% since the 5th of september. big move in that pair, 0.881 at the moment. >> of course, weakness in china, that has had an impact on the aussie/dollar. that is going to be getting a lot of attention, not just from investors. with the euro trading at 22-month low, let's take a look at the u.s. premarket trade. pointing to the downside after what was a rebound in the u.s. market, we had dovish commentary from a couple of fed officials as well as better than expected housing data that brought the bulls back into the market. remember, three days of losses for the dow, nasdaq and s&p 500. yesterday, though, was a
positive day driven by that better than expected data. but right now, futures pointing to a lower open. carolin. >> let's give you a rundown of what to watch this trading day. weekly jobless claims are out at 8:30 eastern. forecast to rise 299,000 along with durable goods for august, which economists are expecting to fall 18%. we'll get the latest figures from the purchasing manager index and results from the kansas city fed survey at 11:00 a.m. eastern. and more -- ahead from atlanta fed president dennis lockhart. nike reporting first quarter fiscal results after the bell today. the stock is trading near its all-time high. analysts expecting earnings to rise from 86% a year earlier and total sales to rise 12% to $7.7 billion. of course, emerging markets have been one of the drivers behind nike's earnings. to get more, let's bring in camilla lyons.
camilla, the stock trading near its all-time high. do you think earnings could push the stock even higher? >> good morning. we think the demand trends continue to be solid. however, we are more cautious on the impact the market will have on their sales, particularly the sales in the emerging markets that they don't hedge against. those are the ones that we're move concerned with. the stob needs to show to propel it further from where it is now. >> the michael jordan brand, even after the basketball player retired, it's still playing a big role in nike's top line growth. i'm from oregon where the headquarter of flag store ship is for mikey. you always seen a line outside the door when there is a new
jordan shoe available. how do you think nike has been able to keep that brand relevant? >> r correct. the basketball trend has been ferocious and has been on a tear for the last four years. there is always this supply in the market. the brie braer of the catalog that they have is one that consumers are constantly seeking. so they're able to -- they're one of the few that are able to bring that demand to the product to the degree that they do. >> camilo, under armour has grabbed the number two spot from adidas in the u.s. at what point will under armour be a threat to nike? >> i think they already are, very much so. they've been a threat for years. you know, the growth that under
armour has experienced at the size of business that it is, this year it's pretty remarkable. the fact that they're able to grow 30 plus percent top line growth this year shows you the momentum that they have in the brand. that's pretty much driven in the u.s. remember, this is a brand that is 96% u.s. based so the international opportunity is something that they're just beginning to catch. the growth perspectives are vast and have a long runway to them. >> an interesting report to watch. it's trading near its all-time high. >> a lot of brands are struggling in china. will be interesting to see the results to watch. that's all we've got time for today. i'm wilfred frost.
>> i'm carolin roth. >> i'm seema mody. "squawk box" is next. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day arfolk southern.
good morning and welcome to "squawk box." a new round of attacks in syria against isis. and apple yanking its new operating system and the phones, you can bend them and stuff. still no comments, though, on bendgate we're calling it. not ben gay. that's different. and all over the place in all shapes and sizes, drones, you can put annite out with one
of those things. facebook says we can see something as big as a 747 in the very near future. that would be delivering some very large packages. it's thursday, september 25th, 2014, and "squawk box" begins right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen. andrew is off today. there is rain in the forecast here in the new york city area. that is adding to some of the drama around all this hoopla. we're going to have a live report from the bronx and more on what jeter's second act would be away from the baseball diamond. that will be later in the show. in market news, the dow is back in positive territory for the month. the s&p and nasdaq both have more work to go to get to that point.