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tv   Worldwide Exchange  CNBC  August 10, 2015 5:00am-6:01am EDT

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welcome, everyone, to the second hour of "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. here are the headlines. china has their best day, but taking a hit as chinese exports tumble in july. and warren buffett and berkshire hathaway in a takeover that could cost $30 billion.
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and donald trump in the dustup with megyn kelly. he said his comments were quote, appropriate. shots fired in ferguson, after police and protesters attending a rally to mark one year after the fatal shooting of unarmed teenager michael brown. and it was a down week for wall street last week with the dow, the nasdaq, s&p 500 all losing about 1%. the s&p energy sector, the worst performing sector losing by 4%. utilities the best performing sector. we're keeping an eye, of course, on oil prices which continue to move lower. dow about 30 points, nasdaq, tech-heavy nasdaq up by 17. and we do get the sales ahead of a potential fed rate hike still at this point seems to be september. taking a look at the cnbc global
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index. mixed data we're looking at. trade right now index is seeing a gain just around a quarter. a point, as you can see coming off the highs of the day. interestingly enough, as you take a look at european markets, greece is in fact a part of the discussion, greece hopes to continue negotiations with its creditors on bailouts. ahead of days on august 20th. right now, stocks higher not across the board, the cac 40 of gain of 13%. the italian market solidly in the green. xetra dax up 29 points. as you can see right now as you take a look at the wall here, ftse 100 is the underperformer here. much of that having to do with the selloff that we continue to see in-n the commodity complex. wilfred. >> seema, thank you very much. friday's nonforeign payroll was sort of interpreted as a mixed
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print. the headline print certainly missed estimates. but overall, people still saying that a rate hike looks more likely. and september still in play. we didn't see too much movement in the ten-year u.s. we saw just below 2.2%. 2.19%. and germany at 0.66. and 1.0963. last week, we did see a little strength recovering from a poor month in july. and we did see a move, sterling last week, above 1.56 for quite some time since that uk election rally back in june. 1.547 at the moment. let's take a look at commodities. last week was the sixth week in a row that wti has declined.
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we're looking at 43.8%. so significant weakness, of course in our markets over the last few weeks. and brent is at 48.5. gold has been zlisliding in the last few weeks. it continued at below 1100, 1.094. china has seen the biggest one-day game in a month in hopes that beijing will embark on further easing. and exports slumped 8% in july. >> joining us now from new york is daniel tanningasi ahead of the ibc markets. daniel, very good morning to you. let's talk about the data in china given the data over the weekend. clearly the equity market in china is expecting more easing to come.
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and it's reacting to that. are you expecting more easing and do you think it will? >> correct. i think the easing will be very targeted. all right, it will be a story of trying to move away from the trade away sector into the consumption sector. so you do want to evolve, but you need to be careful what sectors you'll be disposed to. >> a sense of anxiety, a fear of a prolonged factor or hindering growth. do you think this is a phase or a temporary blip, daniel? >> again, it could be very volatile. and the key thing to watch is what happens to exchange rate, chinese strength to join it they're trying to maintain it, very, very steady within a certain range. going forward, we do believe we're going see some widening in the band. and as a result, we see movement across the markets, all equity and foreign exchange as well.
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you need to be very patient about it. >> of course, another topic of discussion has been fed policy, we had that jobs report on friday, it was good but it wasn't strong. now janet yellen, of course, faces a tricky decision as to whether she should raise rates in september. with that uncertainty, the markets this week? >> we'll be watching quite closely. the next couple of weeks we'll see the fed meeting over in jackson hole. yellen will not be there but it will be actually quite an interesting discussion on what happens, given that we have a multipolicy divergence between the different central banks. we do believe they're going to go for september. but it's going to be a very, very gradual tightening cycle for the united states. >> if is it very, very gradual, do you think fears by emerging market equity investors and currency investors have been overdone this year? that in fact this time around increasing rates because it will
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be so slow won't in fact hurt emerging markets too much? >> i actually would not agree with that state. i think that emerging markets have several issues going against them. the fed is only one of them. which i don't think will be a huge issue. a much bigger problem is what's happening from within the emerging markets. trade is slowing down because we don't have trade agreements around the world. and we have policies that are going the wrong way. brazil is about to see some massive issues on fiscal po policies. we're going to see fiscal issues coming out of the middle east because of low oil prices. you have a lot of systemic problems coming from within that are not related to the fed. >> when you take a look at the brits, they're experiencing a difficult time. and brazil experiencing a significant downturn and lower in two decades. do you have a top pick when looking at emerging markets?
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>> correct. i think it's really about policies or how they try to fight the 2008 and 2009 extension in policies, as a result it was a mismanagement of resource allocation going back to those years. and we're seeing that very clearly coming out of brazil now, with them needing to tighten fiscal very, very significantly. inflation jumping very much over all scomphe all expectations. i wouldn't be surprised if mexico has fiscal issues as well. chil chil chile. and asia. so it's really a broad-based story going on all across this country. >> i want to update you on the latest happening in turkey. earlier we brought news there have been clashes outside of the u.s. consulate, which is now closed. no one thought to be killed in those clashes. there's also a bomb detonated
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earlier. we just heard also that a turkish soldier has been killed near cermak, after militants opened fire on a military helicopter. ongoing issues in turkey today. daniel, i just want to get your quick reaction to this, turkey one of the emerging economies most affected to rising rates given the twin deficit issue. how significant is the unfolding political uncertainty. and geopolitical uncertainty in turkey and what's your view on the turkish consulate? >> very, very serious. we think it will fall for turkey to go to the low. and there's no government in place right now. so you're going to have another round of elections. or most likely going to have another round of elections, as a result that certainly continue to push the turkish.
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>> daniel, ahead of global strategy at markets. police confirmed a shooting happened after a standoff between police and protesters who were attending a rally to mark one year since the fatal shooting of an unarmed black teenager michael brown. let's get out to nbc's gray jay who has the latest on ferguson. jay, good morning. >> reporter: hi there, seema. you're absolutely right it had been a day for the protest march. and very peaceful remembrances are michael brown, the 18-year-old teenager shot and killed by police. this all unfolded just behind the line of police all dressed in riot gear and watching a peaceful group of protesters. police are saying these weren't protesters involved, they say they were criminals.
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it started with two group, 40 to 50 shots. one of them peeled off and turned attention to unmarked police car opening fire. that's when police responded in that was a briefcase, he was cornered. shot again. he is said to be in the hospital, critical unstable condition in surgery. police are very concerned about the tensions here running high. and the possibility of more violence as we move forward. we know that the weapon used by the suspect according to police was a stolen 9 millimeter pis pistol. we also know that two businesses were burglarized overnight during the situation in ferguson. at least one officer was treated at the scene after being hit in the face with a brick. several officers say empty bottles and other things thrown at them through the course of the evening. again, tensions very high here, seema. and watching how this will continue to unfold.
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>> nbc's jay gray with the latest in ferguson. let's get you a rundown of what to watch this trading day. there's no economic data, look for reports on retail sales, productivity and producer prices. dennis lock hart is speaking this afternoon, hertz, cisco, dean foods and pershing square among the companies. we'll be right back. don't go away. hey, you forgot the milk! that's lactaid. right. 100% real milk, just without the lactose. so you can drink all you want... ...with no discomfort? exactly. here, try some... mmm, it is real milk. see? delicious. hoof bump! oh. right here girl, boom. lactaid®. 100% real milk. no discomfort. and for a creamy and delicious treat, try lactaid® ice cream. no student's ever been the king of the campus on day one.
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welcome back. just to remind you of the headlines, u.s. markets on course for a rebound. futures pointing hard, the dow closed at its lowest level since february. shots fired outside the u.s. consulate in istanbul. this is just hours after the bombing of seven people. and flying mess. tech shares within one dollar of the tech ipo price. u.s. foreign payroll data for july disappointed on friday with a total of 215,000 jobs being added. falling short of the 223,000 expected by analysts. the u.s. dollar finished the dollar up. against the euro market still saw enough strength in the data to support the case for a
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september rate hike. stills with from new york is the head of en global strategies, global markets. daniel, let's talk about some of the your top trades. i notice that you're particularly bearish on the mexico peso. tell us why that is? >> well, the main story is the central bank divergence. again the mexican bank is trying to hide behind the fed and wait for the fed to hike interest rates and then follow. in the meantime, there's fiscal uncertainty going on in the back of the price and the situation. we think the mexican currency will continue to weaken. >> as we look at south america, what about the brazilian ruaa?
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>> it's very a severe fiscal situation. they have political uncertainty. there will be massive demonstrations this coming weekend scheduled for august 16. as a result of all of that uncertainty, we do think there's room for the currency to weaken. sorry -- >> great time go for a vacation, given the significant depreciation of the currencies. i'm just looking at the indonesia rupiah. 1 dollar fetched you 8,000 rupiah. today, that would fetch you 18,000. where does that go from here? >> well in most cases we see there's still more room for additional 5% to 8% upside to the dollar. that is because the imbalances are still there. so we think there's still some room for weakness going on. >> all right. we'll leave it there. daniel, thanks so much for
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getting up early with us. head of en and fx global strategy. warren buffett and berkshire hathaway are reportedly close to a deal to buy precision castparts which makes air parts. it may be worth $30 billion. berkshire deal would push back a deal which contributes significantly to the bottom line. up 20% in trade in girl maerman today. and dick costolo will reportedly step down. the company is searching for a new ceo. and that person would have to report to three persons, costolo, co-founder jack dorsey and evan williams. last month, williams said he'd
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be willing to step down if a new ceo would prefer not to have three formal bosses as director. now very interesting place action in shares of twitter over the last couple of weeks. we heard from twitter in terms of earnings. profit actually beat expectations, but its guidance was disappointing and negative commentary from jack dorsey, as well as the cfo, that resulted in twitter shares lower. just one dollar away from its ipo price. apple is getting set to lift the curtain on more new products. buzzfeed reports the company will show off a new iphone and apple tv at an event on september 9th. the next iphone is expected to have a touch display which senses how hard someone is pressing on the screen, similar to the apple watch, it will also
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have a better camera and faster wireless chips. let's have a look at price action flat ahead of today's trade that hasn't opened yet. but over the last three months, down some 10%. still to come -- controversial comments from donald trump once again. but this time around, did he take it too far? we'll discuss after this break. no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.
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donald trump goes on the defensive, appearing on several u.s. sunday news talk shows, the republican presidential candidate insisted his controversial comment on friday about mox news host megyn kelly has been misinterpreted. >> -- change this morning, do you want to apologize? >> no, there's nothing to apologize. she asked a very, very -- i thought very unfair question and so can everybody on social media. and i answered the question very well. i won every poll on debates. what i said was totally appropriate. only a deviant, and i literally mean that, only a deviant would think anything other than that. >> how are political analysts reacting? let's get out to nbc's brian who joins us live from washington, d.c. good morning, brian. >> reporter: good morning, seema. >> what do you think, what's next from donald trump? >> reporter: well, nobody has
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any idea what to expect, except another controversy around the corner, that's been donald trump's way of doing business, if you will. from the very first day from his announcement to this big debate moment in cleveland, he has had controversy after controversy. miscue after misstep. and at every turn, his poll numbers have gone up. a lot of analysts say the view is just plain defying political gravity, that's what he's doing here. there's a political playbook, there are things just not done in politics. donald trump is doing all of them. >> thank you for that update. brian mooar coming from washington, d.c. throughout the show, we have been asking you at home, has donald trump gone too far this time? sharon e-mailed in, she says, i don't know anyone who's not going to vote for trump. i've talked to many, many people about this. and everyone is saying the same thing. trump is their choice. how refreshing it is to hear someone speak the truth. go trump.
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i'm not sure she's representative of everyone but an interesting perspective. mike adds, trump is 100% correct in his views. i'm not sure he's represented but it is interesting, seema. all the tweets and e-mails, in general there's a theme, people are surprisingly in favor of trump. maybe they're a little enamored in getting in. do get us an e-mail. so far as brian was suggesting despite this roar around him, he still manages to lead in the posts. >> i think many people are appreciating the fact that he's blunt, provocative and speaks his mind. these questions around megyn kelly, the fox news host, did he go too far with those statements? and did he do enough damage control over the weekend. speaking to a variety of tv shows backing up the comments? >> and i just saw mr. trump tweeting, two more show appearances will be done his
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morning. even though this is clearly perhaps a step too far in terms of that, he's getting so much coverage off the back of it. losts of comments on sunday. and two more chat show appearances this morning. he's getting huge publicity. >> whether out agree or disagree, media companies are benefitting from the rants. republican debate drew if 24 million viewers. showing how powerful mr. trump is. other channels want to bring him on. every time he gets on, he says something controversial. >> continue to get in touch with us by worldwide@cnbc.com. hillary clinton is expecting to unveil a plan today to make u.s. colleges more affordable and reduce student debt. the proposal is estimated to cost $350 billion over the ten years. u.s. states would still receive federal money for higher education but would have to
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increase their own spending. students would not have to take out loans to attend public universities. roughly 43 million americans owe student debt which has topped $1 trillion. still to come here on "worldwide exchange," we'll tell you how the movie "fantastic four" fared on its opening weekend. that's coming up but we'll also leave you now with a look at futures in the u.s. ahead of the open on wall street. in europe, though, we have slight gains on continental europe. and declines on the ftse. for the u.s. market to have a positive open. ®... ...no calorie sweetener. splenda® lets you experience... ...the joy of sugar... ...without all the calories. think sugar, say splenda® no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack,
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a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.
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5:30 a.m. in new york. 10:30 here in london. welcome, everyone. you're watching "worldwide exchange." i'm seema mody. >> and i'm wilfred frost. here are your headlines. shares in the chinese composite had the best day in four days after fueled hopes of fresh stimulus. meanwhile in the u.s., the dow on a snap of a seven-day streak. and warren buffett and a takeover that take $30 billion. donald trump in another dustup. this time with fox news anchor megyn kelly. but he refuses to apologize
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saying his comments were appropriate. shots fired in ferguson, missouri, after a standoff with police and protesters attending a rally to mark one year of the fatal shooting of unarmed teenager michael brown. and if you're just tuning in. thanks so much for joining us here on "worldwide exchange" on this monday morning. the dow, s&p and nasdaq were all negative for the week losing around 1%. bio-tech, media and commodities leading stocks to the downside. right now, though, we could be in for a rebound with dow up about 30 points in free market trade nasdaq up 50 points. markets also digesting that july employment report. good, but not too strong. although we did signs of wage growth. when you take a look at european markets, mixed day of trade, not a lot of economic data to focus. it's been fed policy and news
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out of the u.s. driving price action. here in the europe, we're looking at the xetra dax, the german market is fairly flat on the day. ftse 100 underperformer, a lot of that in the selloff in the commodity complex down about 60 points. let's look at how commodities are trading. keep in mind, oil has tumbled 20% from june. if you take a look at wti crude we are down on the day by 12 cents whereas the national brent crude, right now basically flat at 2%. around that $50 barrel level that traders watch. when we take a look at spot gold, of course it's known 1100. in today's trade, slightly higher on the day still trading on a multiyear low and a similar story for spot silver. that's a look at commodity. how do you make money in these markets? this week as well, we've been speaking to say host of investors this morning.
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here's what they had to say. >> i think it's truly well run a much overlooked company and opportunity as well. so that would be my trade. >> pick for the dollar, the lows for the year i do think happen in the first half of next year. >> i think what you want to look at is the fed going to be ahead. an that's going to be really important if the fed is behind the curve then that will carry on credit. >> now, share it's in shanghai composite having seen their biggest one-day gain in a month on hopes that beijing will embark on further policy easing. this after data revealed producer prices have fallen to a six-year low. exports something like 8% in the
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month of july. joining from us boston, the gm equity strategy ahead the ubs. jeff, good morning to you, as we just showed you on the screen, chinese stocks moving higher on the prospect of further bank policy. what's left for the pboc to do? they've already been active over the last few weeks? >> we think there's a lot mormon tour easing that could happen in china. we think interest rate cuts today are pretty much in line with where they were last year. we think there's more interest rate cuts that could come. also reserve requirements in china are pretty high, and so, we expect those to be cut further also. there's plenty more ammunition on the monetary side. and of course, they've also got room on the fiscal side, in our opinion, to also support the economy. so we think the markets have gotten this one right today.
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>> despite weak chinese economic data what would you say the overall impact is on the u.s. economy? is it limited? >> it's relatively limited, as far as we're concerned. we think that the margin on the strong dollar do have an impact on the growth story in the u.s. but it's relatively marginal. and our economists certainly don't see it as a factor necessarily stopping the fed moving rates in september which remains our call. we feel the chinese weakness is much more significant for the asian trading partners of china. and, of course, the commodity producers like brazil. so i think that's the biggest hit from a self-chinese chi eco is coming from. knack, we've seen that in the last few weeks. >> you said the markets have got
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it right to expect more easing and to be rallying on the back of this poor data. in london, we're looking at all the commodity stocks down quite heavily. there's a bit of a disconnect on the back of this chinese data as to who's going to benefit if an easing comes. i suppose my question is, is this easing, is it working anymore? and how do you expect it to ease and will it take effect? >> it's a very good question. i think the markets are genuinely skeptical about how successful the easing will be. and indeed what the economic numbers in china are really telling you. the point we try to make about china, as i said, we've got enormous policy weapons they can use. monetary policy, fiscal ease. selective fiscal easing. there's now talk they're going to issue infrastructure bonds through two of the big policy banks which we would normally call development banks as a way
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to create more infrastructure spending. so i think eventually, these moves will help to stabilize the chinese economy. and therefore, we'll probably will to stablize commodity prices. i think the global commodity markets probably want a little more convincing whereas, the volatile chinese market has been so volatile, they'd like to see the particularly good side of this story from the good news today. >> geoff, you mentioned that china is going to have more of an effect in asia than other developed areas. as we look at the possibility of u.s. rate hikes, which is your top pick and which are you most concerned about? >> it's a great question as well. we actually -- we actually will be buying india which we think is one of the more isolated markets away from china to a certain kept, expensive market,
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should be expensive. good structural performance. structural reforms we expect to pick up in growth down the road. we actually like the china as well. of course, in the benchmark that i follow, the embassy benchmark. it's the china enterprise listed in had hong kong. and those stocks we think are very cheap indeed. and so we're looking at that as a way to play global markets right now. and broader than that, outside of asia, we're pretty keen on mexico tied to the u.s. and a very, very cheap peso in our view. and markets to europe doing better there. and our top pick there is poland. so that's how we would play it. we do think there's some good things to be done in equities over the course of this year. >> you mentioned in latin america, how vulnerable are the economies to the slowdown in china? >> i think you've seen a lot of
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that already. it's very selective. brazil is traditionally seen as the biggest -- as the biggest economy influence by china but, of course, brazil's a very closed economy. it's very marginal. it's just very important in that particular sector. the mining sector. the subinfluence of chile and peru as well. they're both metals producers as well. i think, number one, brazil's got a lot more problems than just the chinese economy right now. the currency, you've got a very marginal element to do with china. and then you've got mexico which is relatively isolated from china tied to the u.s. which is why we like that market. so as usual, you've got to be very selective in terms of worrying about the direct impacts of china on parts of latin america. the bifurcated part of that story there.
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geoff, thanks for being with us. a turkish soldier has been killed after a helicopter is shot down by militants. this according to reuters. it follows two incidents of this morning. overnight, police in istanbul were the target of a car bomb. and u.s. consulate is closed after a thwarted attack by two gunmen. shots were fired overnight in ferguson, missouri, reportedly wound two people. police confirm the shooting happened after a standoff between police and protesters who were attending a rally to mark one year since the fatal shooting of michael brown. >> -- got out of the car, shots were fired again. he ran around behind the building, out of the south, that's a fenced area back there. so there's really nowhere to go at that point. he engaged the officers at the time. there were four officers who
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were in that area, four fired at the suspect and the suspect is in a local hospital, he is in critical, unstable condition and surgery. nfl hall of famer frank gifford has died at the age of 84, his wife "today" show host kathie lee gifford said he was at home when he died of natural causes. gifford was the nfl's most valuable player in 1956 when he led the new york giants to a championship. he later went on to a successful broadcasting career on abc's "monday night football." why warren buffett would be interested in buying into the business empire. the latest on berkshire hathaway reported new takeover target. that story coming up next. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought.
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can a business have a spirit? can a business have a soul? can a business be...alive?
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welcome back. keep an eye on shares of twitter today. dick costolo may reportedly step down. they're looking for a new ceo and that person would report to three predecessors, costolo and williams and dorsey. now dorsey hasn't ruled out staying on as full-time ceo. we should point out the stock
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has been sliding ever since twitter reports earnings a couple weeks ago and on friday losing around 2%. now down 1 dollar off the ipo price. >> they're taking their time. one to continue to watch is twitter. switching focus, warren buffett will be celebrating his 85th birthday later this month and he may be casting a line to land a big present. the biggest takeover in berkshire history is in the cards. landon dowdy stack by. >> berkshire hathaway in a deal to buy precision castparts. the deal may be worth $30 billion. the cap is about $27 billion as of friday but the largest purchase berkshire has made is the 26 million takeover in 2010
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of the stake in the burling santa fe railroad. it's one of the largest owners of precision. and precision castparts makes parts like nuts bolts, fasteners for aerospace companies like boeing and airbus. that industry accounts for roughly 70% of annual says. precision also makes parts for gas turbines and power and industrial companies. and $10 billion in revenue in the latest fiscal year but struggled by demand. and last year, the forecasts down 29% since june of last year. the stock is also in the s&p 500 by nearly 30% over the past five years. berkshire has also lined the index but by a smaller percentage. to buy companies such as israeli tool maker iz car.
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and berkshire reporting second quarter earnings late friday, falling 37% on decline on investment gains and loss on underwriting. underwriting profit fell 10% despite improvement in energy unit us. berk hire class b shares by 1%. and in europe down 1%. >> landon, thank you very much. donald trump was disinvited from the lineup at the red state gathering a political event where he was to be the keynote speaker on saturday. he's also searching for a new political adviser as his top aide todd stone left the debate. trump said he was fired. and at the box office, two of the marvel comic superheroes took in $26 million in its debut in the u.s. and canada.
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that's well below the already lowered estimates of $40 million. the film which costs $120 million to make has received bad reviews and forwarded by word of mouth on socialed me. tom cruise and "mission impossible: rogue nation" topping the box for weeks. the dow posted at its lowest level since february of last week. violence flares up in turkey with shots fired in istanbul. and just hours after a bomb blast with seven people. and flying the nest. twitter's dick costello prepares to leave. "worldwide exchange" is back in two. a powerful new dell 2-in-1 laptop,
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and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great.
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let's have a quick look at chinese markets. almost a 5% gain for the asia market in shanghai. 4.5% the shenzhen. that follows disappointing exports and price inflation data out over the weekend. and hopes that the chinese equity markets, now, let's just have a look at european markets which opened 0.5% down. but strengthened in continental europe during the trade today. at 0.2, 0.3% gains. the ftse 100 down 0076%. here on monday, futures pointing to a higher open the dow is up by 33 points. nasdaq seen higher by 18 points.
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let's get a look at the rundown on what to expect. there's no economic data. a whole host of companies reporting earning including herdz, sisco, dean foods and pershing square. we're also hear from kraft, heinz shake shack reporting after the bell. let's bring in bobby iacino on who we should watch. i have my eye on commodities. comphmodities are probably the most out of flavor in the stock market right now. but do you think it's time to get in on oil or gold or one of the comphod emoditycommodities? >> i was surprised to see that article, i don't know about wilfred, as he mentioned earlier in the show, picking the bottom of comphod emoditycommodities.
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more people saw this movie than "fantastic four" obviously. when you see the data and the market rising there's aanticipation of more easing. money and that people's bank of china is going to do more. especially when you look at what crude oil is doing, crude oil 1220% the same as last year. that's based on the demand season earning. and you had rate accounts rising on friday. i think that's going to pull the whole sector down. >> bob we saw last year and this year, a labored transition of lower oil prices feeding to consumers. these lower oil prices that we're going to see again for the second time this year is that going to go through and boost the economy? >> i think at some point, it will. i think it's taking a lot longer than what analysts including myself thought it would. i think we'll see retail
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earnings coming out this week. it's really an earnings story and we haven't seen it display itself in the retail yet. i think it may but maybe the fourth quarter. this sort of fallen gas prices hasn't been as dramatic as expected. being in the oil industry myself, i've spent a lot of time in the fast few years you don't see that, you get gasoline sustained in that low $3, high $2 range for a period of time, it has to show up in consumer spending especially in the u.s. >> as far as fundamentals are concerned, do you think there's a compelling reason to own gold right now? >> i do not. i've been a fan of having gold for years as part of the retirement portfolio, but the physical metal itself, not the utfs. i think that's probably sustainable. but we're only talks somewhere in the range of 5% to 10% of total holdings. the precious metal is falling
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out of favor. when you look at sort of the global picture. the trade that's been in gold since 2009, i think that's over for now. i don't think anyone is seeing a sort of global crisis right around the bend. i think you could see some of the fed watchers saying if the fed gets aggressive on rate rises that could happen but they're not really going to do that. i really enjoyed the conversation earlier about the market pricing with the fed rate hikes. but i actually think they can place this one. potentially the fed may not be any more than that. >> bob, let's talk about u.s. equities. all three indiceses were positive in july. all three were negative to trade last week. this is a very short buyup? >> i'm looking at the s&p chart this morning, and really the s&p 500 along with other equities as well, save for the nasdaq, has really been in a
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sideways channel since about mid-february. it has not done much. it's been a very wide band. there's been a lot of volatility, but it hasn't done much. you look at tech, one of the things they're struggling with now, it's crept up into that channel. you go towards the bottom of the channel, that's another $30, $40 lower on the s&p. however i think it does bounce here. i think when the market gets comfortable with that 25 basis point which is i believe happens in 2016, when you're looking at can the economy survive this, not does the economy need it, i think that's when the rally comes. >> bob, thank you very much. as we leave you today, we've got the uk declining, european markets that were just positive. and u.s. futures pointing to a positive open. that's all we've got time for on "worldwide exchange." i'm wilfred frost. >> and i'm seema mody. we'll see you tomorrow. next up is "squawk box." have a fantastic day.
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good morning, a global market alert. chinese stocks soaring overnight closing up about 5% this coming despite less than superb economic data. in corporate news, we've got a deal, warren buffett's berkshire hathaway close to buying precision castparts for $30 billion. making it one of the largest acquisitions early. check this out, just when you think elon musk has done it all. he surprises us. the test goes wing walking and posts pictures to prove it. it's monday, august 10th, 2015. "squawk box" begins right now. >> announcer: live from new york where business never sleeps,
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this is "squawk box." good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with andrew sorkin and brian sullivan. joe is off today. we are monitoring a developing story out of ferguson, missouri. protests marking one year since the death of michael brown were interrupted by gunfire late last night. at least one person was shot by police is in critical condition. a st. louis county police chief said there were two other shootings which did not involve officers early this morning. we will continue to bring you the story and updates as they develop. right now to the markets, take a look at what's happening with u.s. equity futures. there are green arrows. dow futures up 31 points. s&p up by 5.5 and the nasdaq up to close to 15. here are stories we're watching on this monday morning. greek leaders negotiating wit

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