tv Worldwide Exchange CNBC October 30, 2014 5:00am-6:01am EDT
hello and welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. welcome to "worldwide exchange." >> investors await u.s. gdp numbers. >> mean while, alcatel lucent rallies to the top of the stoxx 600. >> another day, another bank takes a litigation hit. barclay's sets aside more cash
to cover a british probe. >> vw and renault shift into top gear. both carmakers cite a recovery in europe. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> and a historic day for wall street, the central bank announced an end to the monthly bond purchases known as quantitative easing. that helps gains and increase the fed's balance sheet to a record. the question is do stocks continue to outperform despite no qe. but they do point out that the s&p 500 is higher by around 11% since the day before the taper was first announced. we're looking at futures right now. a mixed session right now, dow jones industrial indicating a higher open. the s&p 500 trading at 1,974.
and the nasdaq will continue to be in focus. a lot of earnings including gopro. now in terms of stock, specific action today, barclay's has set aside 500 million pounds or $800 million in provision toes cover foreign exchange investigation. but investors welcomed a larger than expected 15% rise in pretax profits over the same period last year. let's take a look at how shares are responding. barclay's up 1.5%. now, royal dutch shell's third quarter earnings has beat expectations despite a fall in oil prices. it has announced the appointment of charles o. holiday as chairman from next year. alcatel lucent shares rallying after the french group increased its gross profit margin to a better than 34% in the third quarter, this despite a slip in sales in the quarterly loss of 18 million euros. and a loser in today's trade, loouft hansace cut its outlook for 2016 citing weaker economy
and a fall in ticket prices. but that's not all in focus today, wilfred. >> absolutely not, seema. lots and lots of earnings coming out throughout the day so far. german drugmaker bayer has raised its profit outlook after posting third quarter sales of $10.9 million. which is mover than analyst expected. it's up 2.85%. volkswagen beat specation necessary a sharp rise in third quarter profits. renault is up 4.3%, pricing purchase beat revenues for renault. the french automaker raised its forecasts for europe but warns adverse markets will remain adverse and volatile. earlier, the cfo told cnbc that another key to this remain aes growth area.
>> in terms of what we did, we'll only bid to what makes sense. >> wee got some strength today. germany is up 0.5%. it had jobless claims coming in at 6.7%, which was broadly as expected. spanish gdp came in as expected. it did show five consector quarters of growth. and the ftse 100 is just below flat. let's look at bonds and the yields on the u.s. ten-year are at 2.3%. they just picked up as the fed statement came out to suggest we are still on that path back towards normality, all be et
slowly. and yields just above 2.3%, but it's certainly higher than where they were in the middle of october. it's still a bit of global growth concerns. and the u.s. dollar has gained a little bit of strength after the off the back of that fed comment yesterday. people suggesting there is more optimism than perhaps there were a few weeks ago. the u.s. dollar has strengthened a quarter of a percent. cable is at 1.597. seema, back to you. >> the federal reserve has ended its six-year long quantitative easing program as widely expected. the policymaker struck a more hawkish stone from previous
meetings saying there has been substantial improvement in the jobs outlook. speaking on cnbc earlier, the ceo of the world's second largest employment service says there is still employment lag in certain sectors. listen in. >> unemployment is going down, but i've not heard any cyclicals yet. certainly not in the blue collar part. sure, in the professionals part such as finance, professionals, i.t., so i.t. is getting a bit tighter. >> joining us now is max king, portfolio manager at investec asset management. an end of an era with fed pulling back on qe. do you think the economy is sustainable enough to move higher and strengthen without the fed's support, monetary support, that is? >> the federal reserve consistently says, just look at the data. and it's pretty clear in the last few years that the spare capacity in the u.s. economy has been diminishing and labor markets has been -- if not
tightening. still a mid cycle. low inflation, you have to wait and maybe sometime after monitoring tight monetary policy. >> the comments there are positive for unemployment. is the key still inflation? are they too focused on that particular asset? >> the concern is that the weakness is temporary. the food prices are down. if that reverses, you could see inflation pick up a bit. but that may or may want happen.
and in the context of that, it's pretty hard for anyone to actual tighten monetary policy. >>. >> the previous policy statements referred to the significant underewe lightzation of resources. is the fed being overly optimistic when looking at the strength of the labor market? >> most people are ignoring what the fed said. the fed says look at the data. if you look at the data, it's pretty clear the labor market is tightening. >> and what about stock reaction? once we got the statement, we saw energy and financial statements sell off. financials are holding up pretty well. what does that tell you? >> the market reaction tells us what we all thought, that this was well discounted by markets and the federal reserve is doing what markets have been expecting for some months and quite
probably for some years. you can't judge too much from a one-day muse in the markets. i think that's pretty likely. >> and that upward trend is now going to be the case, probably from the finish of october with the u.s. markets in positive territory. that's not what we expected. what allows markets to turn around over the past couple of weeks? >> the market wobbled almost entirely because hedge funds are derisking. they came across on the fannie mae/freddie mac case. they came across on the pfizer/shire deal, with the pimco deal. that caused a derisk and a chain iraqi. in terms of the economy and fundamentals, earnings, there is no reason for markets to -- at all and hence they bounced. >> max, thank you very much for now. max will stay with us for the next half an hour. let's get you a run down on of
what to watch this trading day. we'll get more guidance on the state of the u.s. economy from the latest figures on jobless claims as well as gdp. also, we get earnings reports from conco, mastercard, kellogg, starbucks, gopro and linkedin. before we head to the break,ite was an action packed series for baseball games last night with the san francisco giants winning the world series during game seven. the defeat over the kansas city royals went down to the wire. bottom of the nine with two outs and a run on third, it's popped up. sandoval was under it in foul territory and finally, he has it. the victory marks the giants' third title in five years. and still to come on the show, all eyes maybe on the fed. but brazil anticipates central bank shocks investors with a rate hike just days after the heated presidential election. we tell you more after this break. and higher guidance after
earnings beat. but denmark's largest lender says there's a long way to go to hit long-term targets. we speak to the cfo first on cnbc. and all aboard, a new cruise ship kicks off a long voyage to china. we speak to the ceo about getting new passengers on board. with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov
at this hour, u.s. fourchs are pointing to a higher open. shell beats expectations and elects a former bank of america chair to the board. and visa tops wall street estimates and announced a $5 billion share buyback. a 3% increase in pretax profits has been announced by danske bank. joining us now is the cfo. thanks very much for joining us and congratulations on a solid set of results. is there more to come on that trend? >> we think that q3 and we saw
for the first nine months. we need still to work hard. we will deliver return on equity of 9%. so we are still working hard with costs and delivering the right service to our customers. >> less dive into individual markets. last week they announced the budget in particulars years to that austerity in it. >> we are improving our outlook for our irish, our noncore business.
>> denmark is still struggling to recover from the 2008 lows. how is that impacting your bank and its business? >> it is still a franchise, but strength in the economy including house prices, practically moving in the right direction. but it's a really slow recovery. they are now particular up 2 percentage points. it is good for the customers and good for the development in the bank. henrik, as the head of a major bank, given the economic challenges that europe is facing right now, what worries you the most? is it slowing growth, the threat of deflation or the slowing growth in the housing market? >> if the very slow recovery we are seeing, if that does not
take place, we hope very much the things will continue to develop slowly, but in the right direction. increasing house prices, employment going up and so on. so we hope very much that we can see a gradual recovery also into '15. >> henrik, the final question from me, i wanted to ask about the aqrs, which we had last sawn. is there any benefit now that the tests are behind you? will it change your behavior moving forward? >> no 37 the aqr developed almost as expected. they passed the stress test with a huge margin through the threshold put up by the authorities. and i think the markets and investors expected us to do that. so we are pleased that we passed with high markets. but otherwise we are now just putting the qr behind us. >> thank you very much for
joining us. we appreciate it. visa has delivered a better than expected set of results, sending shares higher in after hours trade. the company is bedding on the mobile payment industry as a driver of growth after reporting an 8.6% drop in revenues. still with us is max king. now, taking a look at earnings, what has surprised you the most, max? >> there haven't been many surprises. in the u.s., earnings are better than expected. in ierp, they've been a bit better than expect aceations. and that, again, is what normally happened. so we haven't had a surprise at all. the fact that the stronger dollar hasn't impacted profitability as much as analysts were expecting, is that a surprise? >> not really. we have to remember that u.s. companies derive like 70% of
their revenues domestically. so the foreign exchange is no that important to the u.s. we also have to remember in the u.s., the domestic herbs outperformed the international earnings. so there has been some impact, just not enough to ruffle the surface. >> max, thanks very much for that, for now, max stays with us for a little longer. still to come on the show, time to hit the high seas. can it successfully get chinese tourist owes board? we speak to the ceo first on cnbc. synchrony financial partners with over two hundred thousand businesses, from fashion retailers to healthcare providers, from jewelers to sporting good stores, to help their customers get what they want and need. banking. loyalty. analytics.
it's no check in check-in. it's tracking of luggage. it's all the kinds of things that make an exceptional vacation a little easier. >> let's talk a bit more about where it's going to ends up. we just said it's going to new york and then the caribbean. it will be based in the future in china. is that because you're after new asian customers? >> we're going after the new chinese customer. the middle class there is just exploding. they love our product. we've done very well there with a lot of interest in the middle class. so we're expanding that market next year by 67% and that is essentially all chinese customers taking our normal vacation and loving it. >> and richard, your team says that in europe, consumer appetites for cruising is rising. last year, passenger numbers
were up 44% in comparison to 2008. that pleased me given the challenges europe is facing right now. what do you think is driving demand from your customer necessary europe? >> well, you know, we're very fortunate that almost all of our market are just doing very well right now. and we're seeing also, as well as china, sweer seeing very strong demand growing in europe. this year we had double digit yield improvement. as we're looking into 2015, we have more bookings than we've ever had at this time before and at higher prices. for us, the europe kwan market continues to be an important growth factor for you us. >> and let's talk about ebola. how big of a concern is that for you and do you think that will impact demand and bit going forward? >> well, you know, i think the concern is more perception than
reality. the facts seem to be that it's relatively controllable. i don't think any of the experts are expecting any serious outbreak. but the worry about it is concerning. fortunately, i think they have gotten a handle on it and i think common sense is prevailing and we're looking forward, we're not seeing a lot of impact on our books and i don't really expect to at this stage. >> the bigger picture theme particularly in your home markets, doesaging demographics play into your hands or do you try and shed that as being a holiday primarily for the elderly? >> it's absolutely not. and i think one of the reasons that we are so focused on making quantum of the seas and the next ship the smartships is because we're appealing now to the millennials. the average age of our passenger last year was 45 years old.
so we're not the stereo typical cruise passenger. young, vibrant people want choice, want new activities and that's what these ships are offering. >> richard, thank you very much for joining us. we appreciate it. >> and in the latest battle for the risk, microsoft has unveiled its smartwatch offering. the microsoft band works with the health app and costs $199. the band that going on sale today has some heavy competition from samsung's dpeer, the pebble and fitbit, but most of all, apple's smartwatch is slated to hit the market next year. would you like to -- we would like to know if you think the microsoft band will take off. which smart watch will emerge victorious? i think microsoft has a really uncool connotation to it.
these are devices that people want because tier cool. that's a good point, wilfred. it's interesting that they're trying to penetrate the wearables space which gartner says is a $5 billion market by 2016. can microsoft meaningfully interest this market? >> for me, even the band looks too big because i think people want a traditional watch, practical and small one. >> we'll definitely get your views. if you think microsoft will do well. on that not, let's take a look at futures and how they're trading mixed ahead of the wall street open.
5:30 a.m. in new york. welcome to "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. these are your headlines from around the world. >> it's the end of an era. the central banks strike a more hawkish tune sending shares sharply higher an as investors await the gdp numbers. british banks give shares a boost. see sa shares jump in after hours after stronger than expected earnings as the credit
card giant reaps rewards from mobile payments and a consumer rebound. samsung says it will target the low end smartphone market after low end revenue slumped in the third quarter, sending shares more than 4% lower. jay dwrur watching "worldwide exchange," bringing you business news from around the globe. >> thanks for joining us here on "worldwide exchange." here is a look at how markets are fairing ahead of the wall street open. the dow jones industrial indicating a lower open. s&p 500 same story. nasdaq, as well, will be in focus. gopro as well as some of the other tech companies will be reporting earnings today. it will be interesting to see what that means for the nax dak. as we approach the end of the month, the dow is now on track to close down for the second consecutive month. the tech ready nasdaq is on track for its smallest monthly gain since february 2013 being
hit by some of the old tech names like microsoft and apple hemg the nasdaq outperform some of the major indices. driving into the european markets, we get some economic data out today. spanish gdp, investors digesting that as well as the unemployment rate for germany, which came in at 6.7%. that was roughly in line with expectations. right now, markets responding negatively do that. the ftse 100 down about 35 points. let's take a look at france and italy, also trading in negative territory. >> thank you, seema. samsung shares are 0.3% higher, not lower as i suggested earlier. it's another big day for earnings on both sides of the atlantic. barclay's is setting aside more cap. the british lender praises itself for a key leverage riesho decision from the bank of england. royal dutch shell beat analysts
in the forecast. europe's company is capped former bank of america charles holliday to head up its board. still with us, max. let's talk about shell quickly. oil prices have come down a huge amount. as we talk about the big majors this week, in the face of that, they've done all right. do you think this is a sector we should be looking at mor quicklo the oil price. if the oil price goes down, they make less. so it's not surprising that those companies have outperformed. shell is the long-term recovery, so it has to be our favorite of the majors. we got into problems about ten years ago and it's taken a long, long time to turn that business around. there seems to be some light at the end of the tunnel. it only looks attractive on the basis that oil prices sooner or
later will rebound. on that basis, it's higher. >> some analysts are projecting $75 a barrel. that could potentially impact markets. >> no, but, you know, analysts, when the price is high, it's going up to the roof. i remember goldman sachs was $200. when it's going down, they think it's going to the floor. it's been a pretty large bet to bounce around the $100 level. i think that is probably our best guess. it's difficult to assess the supply and demand. we're probably at the low end of the range. >> and how long do oil prices need to stay roughly where we are, low levels at the moment for it to be a real boost in the
employment sector? >> i think it's a reasonable guess that actually the middle east will probably quiet down a bit. as it quiets down a bit, the gulf state thinking in return, and it doesn't take them much in terms of supply cuts or production cuts in order to stabilize the price. the oil price will probably be higher in three months time. dreamworks animation post ago strong beat. the company reporting a 17% jump in third quarter revenue, helped by the strong box office showing of its most reernt movie, ohio how to train your dragon 2." wilfred's favorite movie. you can see on the month, it's down about 14%. another big mover, chinese search engine baidu, 50% in the
quarter, less than half of what analysts forecasted. the company predicted it will drop below 50% in the fourth quarter. it has been spending more to attract new users. alibaba reports next month. brokerages released their rating owes baba yesterday. the exception was goldman sachs, which gave the chinese e-commerce giant a neutral rating. >> this is a do or die moment for alibaba. >> absolutely. i think more interesting than just the earnings is going to be its outlook. is it moving out of china or moving out of its core eplatform and going into ratings. >> and does alibaba resinate with american customers as well as customers here in europe?
that will be the question. >> exactly. now, samsung is on course to post its worst full year set of results since 2011 after mobile revenue slumped to a three-year low in the third quarter. shiers are up about 3.3%. >> microsoft is stepping up its wearable tech with the new microsoft band. it costs around $199. the band that goes on sale today has some heavy competition from samsung gear. the pebble, the fitbit but most of all apple's smartwatch which is slated to hit the market next year. we would like to know, do you think microsoft's band will take off? which smart watch will emerge victorious?
you can get in touch with us, world firstname.lastname@example.org, or tweet us@krns wex. brazil's central bank hiked interest rates to 11.25%. in a shocking move, just days after the re-election, five of the board members voted for the move. investors unanimously expected the rate to remain unchange. >> the sensex has returned just over 10% since modi took the helm. a lot of optimism is boeing priced in in terms of what modi can deliver. >> now, the u.s. consume ser back and visa is reaping the
visa post ago 14% in net income to $1.4 billion. visa shares were up after hours on the back of that better-than-expected earnings report. you can see year-to-date, still down about 3.6%. visa, a dow component that we put a lot of focus on. >> apple have based their ebay offering on exiting christ card structure. the question, of course, is who will take the biggest slice? 56% of consumers will still shop at stores that have experienced a data breach. that's good news for retailers like target, home depot, k-mart and michael's, which is fallen victim to data breaches over the past year. moving on, the nurse over the center of a debate over what
the protocol should be after returning from west africa has upped the stakes. jackie deangelis joins us from cnbc hq with the latest the. >> good morning to you. very controversial here. casey hickox did something she said she would do. she's fighting officials who are seeking a court order to force her to self-quarantine. she has been tested negative twice for the fatal disease has decided to break her quarentine and is walk out of her front door. here is what she told nbc news. >> i don't want to hurt anyone in the public, but i don't think this is an acceptable like to be drawn. >> a line brawn first by the state of new jersey when she returned from we have africa and was isolated. and then in maine where she was
told to stay inside hurry house. health officials say they'll do whatever is necessary to make sure she stays put. she has taken matters into her own hands. >> i have been told that the attorney general's intention is to file legal action against me. and if this does occur, then i will challenge those legal actions. >> now, the fight against ebola threatening to spread to the courtroom, as well. so this has become a serious issue in this country. and a lot of people in maine very scared. i read a report that said a lot of people don't want to be treated in the hospital for fear casey may have to go there. back to you. >> thank you very much. these are your headlines at the hour. the fed officially turns aif the qe tap. it is the end of an era. europe's biggest oil company shell beating expect ages and elects a former bank of america shares. and visa topping wall street estimates and announces a $5 billion share buyback. into and before we head to
break, it was an action backed series for baseball fans last night with the san francisco giants winning the world series during game seven. the defeat of the kansas city royals we know down to the wire. the victory marks the giant's third title in five years. great rates and safety working in harmony. open an optimizer plus account from synchrony bank. service. security. savings. synchrony bank engage with us. open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems.
expectations came in at 6.7%. the dax is down just over 1 %. it's called down the rest of europe, as well. the ftse 100 down 1% itself. italy down the better part of 2%. >> session low for european markets, the german dax down 1%. how does that feed into u.s. futures? right now, lower across the board. yesterday facebook issued disappointing guidance. right now, indicating a mother lower on the s&p by 12 points. today's data with the u.s. gdp could have a big impact on that note. let's get you a run down of what to watch on this trading day. from the latest jobless claims as well as to the estimates, earnings from conco, mastercard, starbucks, linkedin and gopro.
gopro, a highly volatile stock, although it did go public this year. some analysts citing growing competition in the camera space in the likes of sony, among others. we'll have to see what gopro and their ceo has to say about their growth strategy going forward. >> do you think it's a lasting business? it's a cool idea and it's done well initially, but has it got a long-term market? in you know, i think they've been trying to brand themselves as a media company. do you think the content they're creating with their gopro cameras as a valuable asset. we'll have to see how they penetrate that market and if they're able to be successful. moving on, the federal reserve has ended its six-year long quantitative easing program. in a more hawkish statement, sent the dollar higher and the stocks and bonds lower. the committee has seen substantial improvement in the jobs outlook. the fed retained the phrase quite a considerable period of time to keep the frayed low. here is the take on whether the
purchase actually works. >> the fed's decision today to end the third round of quantitative easing leaves one simple $1.6 trillion question. does it work? did the $1.6 trillion worth of bond purchases achieve the fed's goal of helping the u.s. economy, popping up inflation and lowering the unemployment rate? you can start with the u.s. data. since qe3 was launched, growth has been a steady and unremarkable 2.5%, about a half point higher than it was before the program. job growth ratcheted up from an average of 110,000 per month to 245,000 now. and the unemployment rate fell by about 2 points. the stock markets surge.the.. but another way to find out if qe works in the u.s. is to look at europe. over the same time that the u.s. bought hundreds of billions of dollars of bonds, the balance sheet of the european central bank declined by a trillion euros. now, central bankers are forgetting over economies that are near recession and teetering
on the verge of deflation. >> history has told us that those central banks who tighten too is soon have a lot of consequences that they then cannot deal with after the financial crisis and the biggest mistake that they can make is repeat 1937, repeat the japanese situation or repeat more recently and you don't want to be there. >> qe had its failings. while the fed tried to boost inflation, it declined during qe3. bank lending has failed to rise strongly despite the fed pumping billions into the system and housing has floundered. but supporters of the program say just look at europe. it could have been much worse here in the united states. back to you guys. >> and the fed, of course, will be in focus today, as well. what the markets will do now that qe has officially ended. let's take a look at the u.s. dollar. that was in focus yesterday as we did get that news after the fed set its ending in qe.
can a rally continue? that will be, of course, the question. joining us now from new york is jen norsbeg. jens, thanks so much for joining us. the u.s. dollar has gained about 8%, 9% since 2013. can the rally condition? especially now that we know qe will not be there to support the greenback? >> we've had a very, very big move in the dollar the last three months, especially in the third quarter we had an accelerated move. then we've taken a breather here in early october and then the message from the fed yesterday was a catalyst for the rally to start. again, at least in some classes. so we've seen the euro move lower, we've seen the dollar strengthen against the yen, against emerging market currencies and commodity currencies, it's a little bit more mixed. i would say our focus is to trade the dollar and the long side both against the euro and the yen. those low yielding currencies
where there's still mormon tear easing in store both from the ecb and potentially for the bank of japan. i think in those process, the trend can continue and move on right here. >> and so as we look at the broader index, the dollar has been a plus in the last month. it's very clear that the structural argument still for the stronger dollar, but the valuation argument is perhaps it has run up a bit too strongly. with that in mind, as you're saying, which pair in particular do you focus on? are there any that are mixed values at the moment? >> so i would say when you look at valuation, there's one issue about whether we've come too far too quickly. and, obviously, we had a very big move in the third quarter and, therefore, there's some asset managers that rebound their portfolios and that can sort of create -- that is what we've seen here in the last several weeks. in terms of much more longer term perspective, is the dollar
too strong, i don't think that is actually the case. even when we speak to government officials, they think the current level of the dollar is sort of well within the historical range and, therefore, the pace is a gradual and orderly one, they're not really that worried about the dollar being relatively strong. so i think there's more potential. i think it's just a matter of timing. and i certainly think when we look to the calendar in the united states, if we get any indication on friday that the labor costs are starting to rise, that will cement the normalization process of the fed is on track and i think that will see the euro go lower, the yen go higher. just to give smu levels, i think 124 is a realistic target. 112 for dollar/yen is a risk of target. >> let's talk about the euro. in your note, you reference a widening tie vergence of economic data out of the u.s. as well as europe. citing the gap between the u.s. and eurozone manufacturing pmi
is close to a historical high of around 8 points. what does this all mean for the currency space, specifically the euro? >> so there's no doubt about what we've seen now in terms of economic performance is highly unusual. we have an unemployment rate in the united states that has come down incredibly fast since 2010 whereas we've had an upward move in unemployment rate in the eurozone in that period of time. so this is historical divergence. that ecb will have to do more. whether it's corporate bond pure chases, i think something more will be delivered within the next three to six months from the ecb. that is going to push the euro lower. and i would mention one more thing. we have negative interest rates on a lot of assets in the eurozone. we have up to four years out on the bond curve negative interest rates. this is something that we gradually has a huge impact on location.
european asset managers want to get out of those assets. foreign investors might hold them. i think that is something that puts persistent downward pressure on the euro. >> what does that mean for multi nationals do do business in europe? that is something we'll be watching. thanks for your time. now, in this week's trader poll in the run up to halloween, which asset is spooking you? ghoulish gold, creepy crude or e eeerie equities? head to cnbc.com and take part in our poll. >> it's interesting that we mention that now, petrifying peripherals, because it is the peripheral banks in europe that have dragged the stoxx 600 into session lows. that's dragged u.s. futures into the red now point to go a downward open. but that's all we've got time
good morning and welcome to "squawk box." the hawks starting to rise now at the fed. the central bank sounding more confident about the economy as it closes the qe program. for now. the iphone in iran, apple reportedly in talks to get products into that country should sanctions ease. and if you heckle new jersey, governor chris christie, you better be ready for the comeback. he's back, the way he used to be. it's thursday, october 30th, 2014, and "squawk box" begins
right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm been becocky quick along wi kernen and andrew ross sorkin. in case you missed it last night, the giants are world series champions once again. they beat the kansas city royals 3-2 in game seven thanks to the partnershiping of madison baumgar baumgardmner. i think this was the first time since 1979 that you see a road team win to clench the series. let's take a look at today's agenda. on the morning after the fed ended its quantitative easing program and reiterated rates would be near zero for a considerable time, we're getting a read on the economy. first quarter gdp is set to be released at