Transcripts For CNBC Worldwide Exchange 20151020

The canadian Prime Minister resigns after suffering an election defeat to the liberal party delivering the countrys first new leader in nearly a decade. We beat fear with hope. We beat cynicism with hard work. We beat negative politics with a positive vision that brings canadians together. And facing the music, apple ceo tim cook gives the first indication of the tech giants streaming service saying the firm already netted 6. 5 million paid users. When looking at the u. S. Futures were called lower across the board. Thats what were looking at. When it comes to europe were seeing all of our european markets just a bit open as well. We closed out flattish last night but the ftse lower by. 5 when it comes to the bigger markets movers yesterday you saw big moves from ibm coming through state side after they lowered their revenue forecasts and revenues lower than anticipated as well. That got people up in arms and on top of that theyre moving more toward clouds as that is what the real cash cow is but lets listen to more. Josh filed this report. Another quarter of falling revenue. Thats what ibm just delivered to the street. Big blue reporting earnings per share of 334 on revenue of 19. 3 billion but that was a drop on the top line of 14 . Look ago head, ibm lowered its eps estimate to a range of 14. 75 to 15. 75 and expects Free Cash Flow to be relatively flat. Now moving through the major lines of business, one number that stood out to analysts, 5. 1 billion. Thats what ibm reported for its software revenue. A drop of 10 compared with the Third Quarter of last year. Analysts had been looking there for 5. 2 billion. Dan ives says the bigger point here is that imb continues to have real challenges adapted to this new era of corporate computing. Ibm is putting a lot of time and money to work in building out its portfolio of higher value products and services. In fact, total cloud revenues jumped more than 45 year to date and 9. 4 billion over 12 months but imb can move quickly enough the stock is on track for its Third Straight year of delines. For cnbc, im josh lipton in san francisco. As we were talking about last hour, the Companies Like imb are changing their tune and moving more toward cloud. Cloud growth is where the future is. How many quarters in a row they had weaker revenue tells a story as well. 14 quarters in a row. Theyre tackling this issue and trying to change the direction of the oil tanker but its definitely disappointing investors and taking a long time to go and also discussing whether this is a landmark for earnings season as a whole but i think that aspect of 14 quarters in a row highlights that its more stock specific from ibm itself. Earnings season has been disappointing i would say and Morgan Stanley disappointed and was town quite sharply and so far i think given the bounce back we have seen in october, the last 2. 5 weeks i think markets probably have room to be disappointed a little bit by earnings. You make a good point by saying this might just be an ibm specific story and when looking at, theyre saying its lead by china and emerging markets as well which a lot of other companies are too. Imb need to renew themselves like the old tech giants have been doing and now its a matter of whether or not they actually can do it. I have more star wars facts. One more fact. The light saber swoosh. Guess what that was made up by . The actual sound. The noise. I dont know. Tell me. Its a film projector and passing a slightly broken microphone cable by the tunes of an old telephone set. There you go. Lets move on. Lets move on and talk about what is taking place today. The red card is being rolled out for the First Official visit of a chinese president in ten years. Theyre staying at Buckingham Palace with the queen who will be having a state banquet this evening. But this visit is about strengthening business ties between the two nations and that will be a main focus to Mansion House in the heart of the city. Susan rejoins us. Susan, so a very big day and lots of deals in the making as well. Lots of deals. Nuclear energy, cooperation, trade and possibly byd which is a warren buffet backed car maker and battery maker could be getting this contract to make double decker electric buses in the future but were still awaiting the chinese president xi jinping and first lady to arrive here at the palace. We have been here since 5 00 a. M. This morning and people have been slowly trickling in. Right now if we take a estimate of the crowd we started with tens of people and then we went to hundreds and now were looking at thousands lining the streets for the horse drawn carriage to arrive at the residence of the queen with the chinese president xi jinping. They touched down yesterday but they await this escort by Prince Charles to arrive at Buckingham Palace and we went into the crowds to talk to some of these people that have been here since 2 00 a. M. To catch a glimpse of the chinese president. We come here. Were so excited. Feel like family come to the u. K. To visit us. Welcome president of china xi jinping. Because were so excited. First time we will see him come here. Of course welcome our president , chinese president. Yeah. We want to see him early. We dont want to be late. Yeah. Yeah. So as you see patriotic, excited to see the chinese president xi jinping but i took a crude survey as well to those that we talked to, who would you rather see chinese president xi jinping or his wife, the first lady who is very famous in china and you know i was doing the count and i think theres actually more people excited to see the first lady than the chinese president believe it or not. Susan, there we go. Thank you very much and excellent coverage again. Well be back out with susan later in the show. Now lets take a look at some of the other top stories. The first apple music subscriber numbers are coming in. Ceo tim cook told recode theres 6. 5 million paying subscribers. Apple launched its Music Service on the 30th of june. Rival spotify said it had 20 million paying customers. Did you see this yesterday . Weight watchers with oprah . Inside. Coming off their busiest trading day. Shares closed up by 105 . Would that have taken in warren buffet had taken a stake . Or carl icahn . I happened after Oprah Winfrey was planning to take a 10 stake in the company. Theyre hoping that oprahs endorsement will help to revival the brand thats seen fewer subscribers as competition has been climbing. Does it help . I never used one of them. I was using it at one point because they count for you and you can think of other things. But i stopped using it. Weight watches, 105 . What an endorsement of oprah herself. Amazing. Lets talk about the run down of what to watch on this trading day. A number of Companies Set to report before the bell. Verizon, bank of new york melon, Harley Davidson and yahoo chipotle discover financial and vmware. You have september Housing Starts and Building Permits coming out and the American Petroleum institute will releases weekly crude inventory numbers. We look at how a fat finger error almost cost Deutsche Bank 6 billion. Thats coming up after the short break. U. S. Futures imlying a lower open. Apple ceo says its streaming service has 6. 5 million paid users in the first measure of its success and starbucks could be set for an eu fine over its tax policies but will it be more of an expresso than a grande latte . I still dont use the venti. I just say id like a large. The smallest one is called tall. Which dives me mad. Thats because small is still not small. Small means that. It doesnt mean that. Exactly. So i agree. I think those names are confusing and misleading. The lender mulls the sales in central and Eastern Europe under its subsidiary. This according to reports in the media but no decision has been made yet. A key contract for the vienna arm of the group which controls most of its business is set to expire next march. Last year the bank ceo released a strategic overhaul to trim down operations and rebuild revenues. They declined to comment after reports it will pay a 787 settlement for u. S. Authorities. Stefen is in paris with more of this. According to a source a spoke to this morning the announcement will come later in the day from the United States. Its going to pay 787 million to settle a criminal case in the United States. Like last year they were accused of violating the u. S. Embargo on some countries including iran, cuba and sudan between 2003 and 2008 they also agreed on a different prosecution agreement which means that the french bank will face closer monitoring in the United States for limited period of time we are talking about potentially three years however the bank will not have to plead guilty. The discussions were at an event stage and global resolutions should be reached by the end of this year. The Market Reaction this morning was rather positive because the bank has already set aside 1. 6 billion euros for its litigation cases including this one in the United States. Thank you very much for that. Now a fat finger mistake meant Deutsche Bank paid 6 billion to a u. S. Client. It raises questions about the banks ability to manage certain trading risks. Lets have a look at share price action today. Its off 1. 65 but today we have been asking you along this line whats the worst mistake you have ever made at work . Weve had some tweets in. One viewer has told us that as an air Traffic Controller youll be happy to hear ive never had a worse mistake moment and here here to that. David writes in and says good morning to you both. In 03 while working at a large invest lt bank he entered an order for 5,000 call options five minutes before the closing bell on wall street. What i forgot at the time was these particular instruments were geared 1 to 1,000 and i submitted the full amount instead of the figure 5. The dow shot up 70 points in the last minutes of trade. Monday morning i was dismissed. Great that we have his name and the name of the place he was working. But very good of you to mention. Hes a very regular viewer. He has been writing in for a long time and he doesnt work there anymore. Thank you for telling us that, sir. You know who you are. I used to work in the industry. Thankfully i never had any of those. It used toer the identify me and were saying does this question peoples risk controls . But theres nothing really you can do so these things can happen. I should mention the mishap i told you about working on the floor of the board of trade. I was 19. It was like a summer job but they hadnt actually told me some of the details but it wasnt like last year. Continue to get your views into us worldwide cnbc. Com or twitter cnbcwex. Wed love to hear from you and many more emails coming through. Well read out some of them later on. Also still to come on the show, he isnt going anywhere. Trump is sticking at the top of the polls but what about the other candidates and is it even worth paying attention . Stay tuned to find out. Im jerr. And im jerry bell the third. Im like a big bear and hes my little cub. This little guy is nonstop. Hes always hanging out with his friends. Youve got to be prepared to sit at the edge of your seat and be ready to get up. Theres no deep couch sitting. Its definitely not good for my back. This is the part i really dont like right here. doorbell whats that . A package its a swiffer wetjet. It almost feels like its moving itself. This is kind of fun. That comes from my floor . Eww this is deep couch sitting. Deep couch sitting Hillary Clinton support has jumped since the first democratic debate last week. 41 said they would vote for clinton compared to only 27 for bernie sanders. Meanwhile donald trump is still on top for the republicans according to the latest wall street journal poll. The poll shows trump leading with 25 of the vote followed closely by ben carson with 42 . Lets get out to tracie potts live in washington with more. Tell us about this latest republican poll. Sure. Well what it tells us is that number one outciders are still on top for the republicans. Theyre not going for these establishment candidates like jeb bush or even marco rubio or ted cruz not doing nearly as well. The other thing it tells us is donald trump is growing. He is solidifying his lead. He was at 21 in this poll last month and now hes up to 25 . It also tells us that dr. Ben carson is very close behind him. That 22 is within the margin of error. We call that statistically a tie between the two. There could be a margin of error plus or minus 10 points. Ben carson is leading when it comes to the combined total of people that said he would be their first or second choice. He edges out trump. He also edges out trump when it comes to people that say they could support him if he became the nominee. Tracy, there has been some speculation that jeb bush might be one of the last minute people to kind of really get in there and to overtake some of the other contenders. Do you think trump would need to pay more attention to jeb bush coming up from a 4th or a 5th level up to a second place . The numbers dont really seem to support that right now but the jeb bush story is this, if we start to see a turn in the next few months or so leading up to the iowa and New Hampshire primaries or maybe even shortly after them where these nonestablishment candidates, donald trump and ben carson start to drop, thats when people like jeb bush or ted cruz can start to see a surge but right now its not really clear in the numbers that jeb bush has that strong of a chance, at least based on what were seeing right now. Tracy, thank you very much. Good seeing you tracie potts joining us from nbc news. Now cia director John Brennans personal email account was hacked according to media reports and a New York Post review. A teenager is responsible of hacking into the account of the director. He swiped his contact list and log of phone calls and numerous Social Security numbers and his own application for security clearance but no classified information. The fbi and the secret service are continuing to investigate. Glancing at the u. S. Futures, well, initially they were positive around an hour or so ago. Now the implied open is a bit more negative than that and here in europe we have gone a bit more negative. A lot of the reads say this is due to china and worries about china. Im not so sure whether or not thats baked in at this stage. We know its slowing down. Whether its 4 or 7 does it matter at this stage and isnt it more about the bigger picture, central banks, what the ecb is going to do tomorrow. Absolutely. I dont think todays move reflect chinese growth figures at all. Yesterday had an influence with the number coming in at 6. 9 rather than 6. 8 allowing european markets to close positive today. Having opened slightly positive were now down around about 1 for france and italy. Germany is down 0. 6. The ftse 100 down 0. 5 . We havent seen too Much Movement over the last week or so. The story of october has been one of yield compression in both the safe havens of the u. S. And germany as rate hike expectations have been pushed back. We have seen the yield come down to 2 dipping briefly at the back end of last week although as you can see were just above 2 . When looking at the fx markets the dollar hitting a ten at a high against the euro heading into the ecb meeting tomorrow of course and right now were flat to a little bit higher. The euro dollar a little bit higher against the green back. 11363 and the canadian dollar, the line in the fast ft. The top line yesterday was the canadian election. And thats the reaction that we have seen. A nonreaction. Despite that impressive result for the liberal party not much reaction. Still to come here on worldwide exchange, no big skies for big blue as ibm posts a scorecard but is the Cloud Computing business a Silver Lining ahead . Well break down the numbers after the break. Here are your headlines from around the world. U. S. Futures lower after imb slashes forecast parts. The chinese president arrives in london for his first state visit. Billion pound deals are on the Table Including a landmark nuclear pact. Steven harper resigns after suffering an election defeat to the liberal party delivering the countrys first new leader in almost a decade. We beat fear with hope. We beat cynicism with hard work. We beat negative politics with a positive vision that brings canadians together. Facing the music, apple ceo tim cook gives the first indication of the tech titan streaming service saying the firm already netted 6. 5 million paid users. Now if you are just tuning in, if you are just waking up, thanks for joining us here on the show. Just looking at what the markets are doing ahead of the open stateside, well, u. S. Futures have been indicating a negative open. An implied open with the dow jones off by around 75 points. S p 500 down by around 5 points and nasdaq down by around 10 points or so. So a slightly negative open implied state side. A couple of hours away and things could change before then and here in europe weve seen that change this morning because our european markets initially opening slightly in positive territory. Flat to positive id say and then we turned more negative with the ftse mib. The italian market off by shy of 1 . The cac 40 lower by almost 1 and the xetra dax and ftse both down. Imb fell almost 5 in extended trade after reporting a Third Quarter miss on the top line. This marks the 14th period of revenue declines. They also cut the profit outlook and slowing demand from emerging markets. The cfo, the tech giant explains the challenges heading into the final quarter. We continue to see price pressure in our storage business and we continue to see price pressure in our Global Business services business. So when we put that together with a weaker transactional exit than expected we put that together and see its prudent for us to recognize as we go into our largest transactional quarter that the transaction flow is a bit slower than we would have liked. Joining us in studio to discuss further is the u. S. Enterprise Technology Analyst at atlanta equities. Thank you for joining us. Thank you. Disappointing results from ibm surprising to the down side. To what extent could they blame the strong u. S. Dollar as opposed to their own strategy . Thats a good question. Theres more than the u. S. Dollar weakness here. What we saw in q3 was a disappointing performance. Sulfur was down again and it seems sensible that management has taken the choice of lowering the guidance for the full year. Adding to that the Services Performance saw a reversal of trend. It improved slightly in q2 and worsening in q3. Its very sensible that theyre lowering the guidance. The structural challenges you talk about in your research about how the company is facing an unprecedented face of change in the industry. How much more change do we need to see . Are they going to have to change away completely from the old school type company that we know imb as . Are they going to be one day 90 cloud . How big is that structure shift going to be . In fact, those are awards used by the company themselves when they profit about a year ago. There are, indeed, big structural changes going on in the enterprise industry. One of them is Cloud Computing, adoption of Cloud Computing which is changing Business Models but also we have other things like the data center having an impact. Our view and we have a negative view on ibm is that their reaction to these trends has been too slow. They need to be more aggressive. Maybe more aggressive m a and investment in r and d. That could be negative impact on buy backs or dividends but it could be the time to take more decisive action. Lets talk about some of the areas working like new technology areas. How positive can we get about them relative to the rest of the pie . Yeah thats a good question because actually ibm has historically been very strong in analytics. I would give credit to them for having been one of the First Companies to starting a consistent string of acquisitions to become a Market Leader in the space and they continue to hold that position. They also did good performance in what they call the Strategic Imperatives which includes the analytics but Cloud Computing, security and mobility. But if you put things in context thats 25 overall and in spite of 30 of growth the overall business declined on a like for like basis. When you exclude the 5 hit. So i think what they are doing seems to be the right thing. Its just the pace of how theyre doing it and maybe the industry is moving too fast for them. When i listen to you and look at your note it doesnt sound like next year is going to be too good if im an ibm shareholder. Is there reason to think that things might look up . Lets say the slow down in china for example isnt as dramatic as thought or the fed hike ifs they come if that doesnt hit the market as much as what it could and, i mean, you know, what im trying to get at is is there any reason to hold ibm shares currently . Our view is currently it is too early to hold ibm shares. The situation will get worse before it gets better. The company acknowledged last night that theres deceleration toward the end of the quarter and thats why they lowered the guidance and also they talked about the Free Cash Flow which increased the guidance in q2 and they pulled it back again to the earlier in the year target. That indicates they will start physical 16 with a bit of a head wind and probably things will get worse for a couple of more quarters and then it will get better. The important thing to remember is that ibm at the moment in spite of these declines is benefitting from the mainstream cycle. They released it a couple of quarters ago and thats helping them offset the weaknesses. This is not going to last forever. So software or services havent improved by the time it is out were going to get in trouble again. Thank you very much for being with us. Thank you. Now, canadas conservative Prime Minister is resigning after his party lost power in the countrys federal election now canadas liberal party won a shock victory in the elections gaining seats for the government. Canadas new leader says the liberals owe their victory to the inclusive Optimistic Campaign message. You want a government with an agenda and vision for this country that is positive and ambitious and hopeful. Well, my friends, i promise you tonight that i will lead that government. I will make that vision a reality. I will be that Prime Minister. Yeah. So a new very young Prime Minister in canada and that was one of the points against him heading into the race. And also remembering just a couple of months back you had Prime Minister Steven Harper and the conservative party. They were the front runners. A Left Wing New Democratic Party were strong as well and then the liberal party was, you know, back trailing and people were saying hes too young. Hes 43 years old. Very, very young. Three kids under 8 years old. He doesnt have time for this type of stuff and then he came in and took over. Extreme surge and resounding victory and congratulations to him of course. But he said he will run a budget deficit to try to get the economy going. Thats the kind of message that in various places around the world we think oh gosh thats a terrible thing to do for your currency and for the longterm prospects of the country and the size of the national at the time but no real response today in the canadian dollar. Theres a bit of a flutter early on but ends up being flat again. But of course the opposite side of that argument would be well thats how you get growth going, right . That you take out big loans and you invest in these big Infrastructure Projects but astounding they took 80 of the vote, the liberal party in april 2013. 80 . It was a bit over. 80. 1 or Something Like that. Astounding. Not sure well see that for long. Indeed. But now staying in canada the Toronto Blue Jays offense finally took flight launching three home runs on their way to an 118 victory over the kansas city roiyals. They cut the lead to 21. They both homered in the 6 run third innings. The royals claw back with four runs in the ninth but it was too little too late. Meanwhile, the Philadelphia Eagles topped the new york giants 277 behind the defense that harassed giants quarterback eli manning all night. Eaglels forced three take aways returning for a touchdown. Sacked manning three times and forced two intentional grounding penalties. The giants also forced three interceptions but were unable to capitalize with the points off the turnovers. Still to come here on the show, beefed up profits or a mcwhopping disappointments. Fast food stocks as some of the biggest brands prepare to release their Third Quarter earnings. You can find us on twitter wilfredfrost. We have been asking you also whats some of the worst my takes you made at work and well read out your comments later on here on the program. See you after the break. Right. A major fast food stock is due to report earnings after the close today. U. S. State side. Lets get out to landon with all the details for us from cnbc hq. Chipotle is set to deliver earnings after todays close and the street expects them to earn 4. 61 cents a share. Last night on fast money, investors should only buy the stock if it falls on weaker than expected report. Stock is up 5 so far this year. And theres concern softness could impact the company. Thats what happened to its company yum brand a few weeks ago. They saw shares tumble by 18 after releasing its Third Quarter numbers. The business was hit by a strong u. S. Dollar as well as fall out in china from an earlier food scare. Shares have been under pressure over the past two weeks. Well also get a look into mcdonalds business when it reports earnings on thursday before the market open. Mcdonalds which recently began serving all daybreak fast is expected to earn 1. 27 a share on 6. 42 billion in revenue. Its been undergoing a turnaround and wall street is getting on board. The stock was added to the global focus list today. Mcdonalds has seen solid gains over the past month. Back over to you. Thank you, landon. Are you a star wars fan . Have you watched the films . Im landon. Of course. My noises arent as good as yours. Yeah, you heard chewbacca. We were talking about the sound effect. That was impressive. Bear, lion, walrus and badger vocalizations. I cant compete with that. Neither can i. You pretty much did compete with it earlier. It was impressive. I think you nailed it. Well, i encourage everyone to get involved and try for themselves. Who is your favorite character, landon . Darth vadar. Whose sound is made of course by putting a microphone. Lets hear it. Is that right . Thats pretty good. You try. Im going to leave that to you. I think you nailed it. They put a microphone inside a regulator on a cuba tank and that became his voice. You know the same actor also did the voice in the lion king. Im more of a disney fan. Guess though both of you, how many theaters showed star wars after its release date was moved up to before memorial day. Which one . The first one. Oh, gosh. Back in the day . What was this like 80s or 70s . When did the first one come out . Ages ago. I dont know. Tell us. Less than 40 theaters. 40. Wow thats amazing. Can you believe it . Because they were showing a film called the other side of midnight which was a best selling book and everybody thought nobody would want to go watch darth vadar. The star wars movie. There we go. Yall are just full of fun facts today. With a hint of sarcasm in your voice there landon. Thank you very much. I look forward to seeing the movie. Well have to report back. Exactly. We will now transition to explain why we have been talking about this. Its of course because star wars fans rush to buy tickets for the newest film and they overwhelmed various ticket websites around the world after a trailer for the film came out during the monday night Football Game and tickets were available and around the world tickets websites were crashing. So the tus can raider, tus can raider which is the sand people, or the tus cans, fictional characters, right . Theyre all fictional in case you havent picked up on that. But the yowl they make, guess how you make that . I dont know but i have a feeling you do. They mixed mule sounds and people imitating mule sounds. Oh. There we go. There we go. I tell you what, lets discuss more of this in the break. But its interesting. Yoda was actually named buff fireworks. He was buff fireworks first and then they changed it. Okay. There we go. More of that in the break. Dont worry. Only in the break. But we will now take a break. Quickly remind you of the main headlines. U. S. Futures with a lower open. Apple ceo says its streaming service has 6. 5 million paid users in the first measure of its success and starbucks could be set for an eu fine over its tax policies. Well be back in a couple of minutes. U. S. Futures indicating a negative open state side. Once that happens in around 3. 5 hours or so. So thats what were looking at. Right, health inshoer aetna is a step closer to completing its deal for humana. They approved the proposed merger. Both expect the deal to close in the second half of next year. If regulators okay it aetna will be the largest provider of plans for the elderly. The companies hope joining forces will help them better compete as the government reigns in health care spending. Now amazon is planning to hire 40,000 more Seasonal Workers this year compared to last year. The ecommerce giant is creating 100,000 jobs for the Holiday Season to meet increased customer demand. The stock has been on a tear. Its up by almost 90 over the last year alone. United continental named brett hart as acting ceo four days after chief executive suffered a heart attack. The airline says its too soon to know when he may come back. The news marks the second ceo shake up at the airline since early september. Thats when predecessor resigned amid internal and federal probe into uniteds relationship with the Port Authority of new york and new jersey. United reports on thursday. The stock is down more than 15 since the start of the year. It was up 1. 4 yesterday. Now the first apple music subscriber numbers are coming in. Ceo tim cook said theres 6. 5 million paying subscribers. Apple launched its streaming Music Service june 30th. As of early june, rival spotify had 20 million paying customers. Apple stock is up since the beginning of the year. It is down fractionally in todays trade in germany. Now i have to say, i mean, this switch of a Business Model to more on going revenues is obviously still a very small portion of the pie for apple but this is descent, 6. 5 million versus spotify 20 million but spotify going for much, much lo longer. Theres a free trial period where apparently if you forget or dont cancel that free three month trial period you automatically become a paying subscriber so some are saying you have to factor some of that in where they may have forgotten to cancel. We dont know what the number is but you know its been going for sometime now. Its got some attraction. Even if it was half that is catching up with spotify. Its whether that momentum continues. Hugely. We have been asking you what some of the worst mistakes have been you have made at work and you have told us some of the things that happened. David wrote in and said once when buying steel rod for a dental company i work for i sent an order to the supplier for 1,000 tons when it should have been 10 tons. The supplier qearied the amount. Thats a big mistake to make as well. Thats a lot of dental steel rods. Someone else writes in and says when a boss asks how are things and then this person said not busy enough and the next morning my senior managers called an early meeting to explain why their staff were not busy enough. Never want to admit that kind of thing. Always busy. So there we go. Those are some of the biggest mistakes. Neither of us had serious ones. Precisely. Lets tell you briefly a run down of what to watch today. Several companies there to report before the bell. We have verizon, lockhead martin, Harley Davidson. One for you wilf. Really . On your harley on the streets of london . Not sure. After the close, yahoo chipotle. Thats for more me i think. Discover financial and vmwares and clues on the housing market. Building permits are out and the American Petroleum institute will be releasing its weekly crude inventory numbers. Thats it. One more stat. One more stat. Lets have it. One more stat. So after the release of the Empire Strikes back, this is from a website called mental floss, lucas lobbied for him to get an oscar for yoda but he was disqualified because it was ruled that he wasnt an actor. Thats a good ruling. A fair one. We have to leave you on that note. Thats all we have time for. Ill see you for european closing bell at 4 00 london time and 5 00 Central European time. Good morning, a very tough quarter for ibm. Revenues dropping for a 14th straight quarter, dropping 14 . Thats the operative word and falling short of even the most pessimistic wall street estimates and the stock down late yesterday and this morning and apple, a day tim cook suggests the tech giant is shipping a lot of watches and hints that a new way to watch tv is coming soon. And the worse awakens. Websites selling tickets to the new star wars movie crashed overwhelmed by demand and social media is blowing up this morning over the trailer. Its tuesday, october 20th, 2015 and squawk box begins right now. Good morning. Welcome to squawk box here on cnbc. Im becky quick with joe kernen and andrew ross sorkin. We have been watching the u. S. Equity futures. Yesterday you saw that the markets ended slightly higher. But this morning youre going to come into red arrows once again. The dow futures indicated by down 78 points. S p futures off by 5. 5 and the nasdaq off by close to 10. A lot could change before the opening bell rings. Take a look at the major earnings and economic reports over the next couple of ho