Good morning. Welcome to Worldwide Exchange on cnbc. Im wilfred frost alongside Morgan Brennan this morning. Good morning. Good morning. Congratulations on being halfway through a busy newsweek. Were not until were halfway through the show today. Almost there. Almost there. Lots of news to cover. Lots breaking in europe on Deutsche Bank. Headlines on wells fargo. Sara not here this morning. On assignment in chicago. Shell bring you an interview with imf head Christine Lagarde, 11 45 a. M. Eastern time. Sara with Christine Lagarde, talking about the woes in europe with the imf cheap. Lets check in on what markets are doing. A decent risk on rally yesterday, around three quarters of 1 of gains for the main indices. The nasdaq better. Of the s p 500 sectors, most were positive. Tech the best, utilities the worst. It was traditional, the exciting sectors do well, the boring sectors less well. This morning we expect that to continue. The dow higher by 31 points. Lets look at the tenyear treasury note. We have seen bond buying of late over the last week or so. Sparked in europes by that Deutsche Bank issue which saw the buying of the german bond, pushing that back into negative territory. It infected bond deals around the rest of the world. Keeping with the european theme, european equities are higher today. Weve got that snapping a threeday losing streak after being weighed down by Deutsche Bank and the broader european banking sector. The german dax is up more than 1 . French cac is up more than 1 . The if tftse 100 up by 1 . In asia, the trade there is largely mixed. Well say mainly to the down side. The japanese nikkei is down about 1 amid strength in the yen. A lot of focus on china. The shanghai composite down marginally about 0. 3 . Going into a weeklong holiday in china. Thin trading there. Really some folks taking some profits off the table. The hang seng is slightly higher. Japan suffering despite yen weakness today on talk that we might see the bank of japan extend negative Interest Rate policy. Those are only rumors. Nonetheless japan suffering, europe soaring. Well get to that in the main focus today. Broader markets, oil prices, which have had a strong day on monday, softer day yesterday, they are a bit higher at the moment. 44. 9, up a half percent. Well have a report from algeria in a moment. Where that meeting has been taking place amongst opec and other members. Dollar this morning, it was a little bit stronger yesterday. Nothing too significant. The yen softer today. But not helping the nikkei, which is a rare occurrence. The euro stronger but fractionally against the dollar. The pound remains below 130. Gold prices for you. At this early hour, they are a bit softer. And more on the markets in just a minute. First we have some breaking news. Former israeli Prime Minister, shimon peres, has died at the age of 93. His death comes two weeks after he suffered a stroke. In 1991 he won the Nobel Peace Prize. Well have more on his life in a bit. Switching gears, back to corporate news, wells fargo ceo john stumpf will forfeit about 41 million in unvested equity and temporarily forgo his salary as the companys independent directors launch an investigation into the companys Retail Banking practices. The bank also said last night that carrie tolsted left the company and would not receive a severance payment. She forfeited about 19 million in unvested equity awards and will not exercise her outstanding options during the investigation. The decision was announced by the head of the nonexecutive board, Steven Sanger, who said we are deeply concerned by these matters and mitt a committed to ensuring all aspects of business are conducted with oversight. This weeks after the announcement that wells paid a fine. Thus the timing aimed to preempt further questions from congress on the issue of executive claw bac backs. Further claw backs are not ruled out once a deeper internal investigation is finished. The top democrat on the Senate BankingCommittee Said in a statement on tuesday, tonights announcement is a step in the right direction but there are still dozens of unanswered questions. Those questions will be posed by his fellow lawmakers in the house on the Fence Committee tomorrow. Moving to another big banking story. Shares of Deutsche Bank rallying in europe this morning. The firm is selling its abbey life business for 1. 2 billion. Its been a roller coaster ride for the lender. Yesterday shares down 7 , then 3 before ending flat. The rally ownedi icoming after e said they could see fines lowered. Investors took it as a sign that the final fine will be below the 14 billion initial figure floated by the dodge. John cryan said its clear from the beginning we would not pay this sum, that 14 billion sum. He added that he expect ts the department of justice will treat us with the same fairness that american banks. In the last few minutes, further flashes from a different german newspaper saying that berlin would rescue Deutsche Bank in a worst case scenario. The share price recovery today is around 2. 5 . It was around that level even before the latest flashes about a potential bailout from the government. Interesting differences here, morgan because comments in the paper this morning from john cryan saying they were not seeking bailout. Flashes literally in the last 20 minutes suggesting it is possible. This is a german paper, saying the rescue plan would come into force if Deutsche Bank needed extra capital. Lots of developments, mostly positive after negative developments over the weekend. So israets rallied. The royal bank of scotland agreeing to pay 1. 1 billion to a u. S. Regulator to resolve claims it sold toxic Mortgage Backed securities to Credit Unions that later failed. The lender saying it set aside 3. 8 billion in january to cover itself against mortgage related lawsuits, but rbs still faces a settlement with the u. S. Justice department shares of royal bank of scotland up more than 1 . Opec ministers are meeting informally are meeting in algeria today. We have hadley gamble on the ground with the latest. How have talks been shaking out . A possible plan that would essentially see a coordinated cut up to 1 Million Barrels per day was pretty much slapped down by iran yesterday. We heard from the ministers on the sidelines of the International Energy forum, saudi arabia going in to the talks with a positive vibe, and iran saying any want to get back to presanction levels of output, back to 4. 1, 4. 2 billion barrels a day and they wont get on board with anything in the coming hours. Thats what were hearing on the sidelines of this International Energy forum. So saudi arabia trying to bring a deal here. Iran at this Point Holding all the cards. Hadley, are we getting to the point where we keep hearing theres potentially going to be a production freeze deal or Production Cut deal and it never quite shakes out . Are we getting to the point that we talk about the cartel that essentially cried wolf . You could be forgiven for thinking that morgan at this point. They do seem to be dragging it out. I have to say if you look at the mind meld of the saudis, theyre hurting in their economy at home. This has take an couple years to shake out and become quite obvious. The private sector, if you look at the economy there, this is a country that doesnt collect taxes in saudi arabia, so getting an idea of whats happening in the private sector versus the governmelgolf. Government sector takes a while to trickle up. When the deputy crown prince of saudi arabia came out and said we will tighten belts, revamp plans for diversifying the economy, i think folks were not aware of how deeply these cuts would go. I think youll continue to see saudi arabia coming to the table. They realize in terms of taking on the u. S. Shale producernes, those guys have adopted to the price hikes. So the question is will they convince the iranians to come to the table . At least today, iran is holding all the cards. Hadley gamble, thank you very much for that. Some notable comments from john williams, he argues the u. S. My can handle a rate hike arguing its hard to justify Interest Rates being so low. Williams addressed fears that a hike would create volatility. A lot of fed speak today. Todays agenda is chock full of appearances by Top Central Bank officials with very janet yellen testifying before the House Financial Services committee at 10 00 a. M. On Bank Supervision and regulation. Well hear from the president of the minneapolis, st. Louis, chicago, cleveland and kansas city Federal Reserve banks. As for economic data, august durable goods out at 8 30 eastern. P paychex and back berry coming out with earnings. Nike posting better than expected earnings in revenues in the latest quarter. But slowing demand for future orders of sneakers and apparel turned investors off. Nike that been losing ground to addidas and seeing weakness in the basketball division. Mark parker defended the numbers. As the Market Leader, had is a great time to be nike. We are on the front end of all this growth, a driving force behind the expanding market. We not only see the upside across the landscape, we have both the came and the skill to act on it. Shares of nike are down nearly 14 so far this year. As you can see, off 3 in the premarket this morning. I will say addidas has been stepping up its sneaker game. Im big into the kicks, i can see why this is showing up in earnings. Lots of competition. Lots of competition. Ipo news today. Postal savings bank making its Hong Kong Market debut in the Worlds LargestPublic Offering in two years. The firm is raising 7. 4 billion but its performance disappointed with shares closing basically flat. Postal savings bank has around a half billion chinese customers and is the sixth largest bank. Soros Financial Institute is part of the investors in that firm. Twitter reportedly on the block. Clinton and trump talk cybersecurity during that first debate. Well discuss the top tech trends and how you can play them with Cyrus Mewawalla. The nasdaq breaking a twoday losing streak yesterday. Tech the best performing sector on the s p. Joining us now is Cyrus Mewawalla from cm research. Good morning. Thanks for having me. Great to have you here. Lets kick off with twitter. Its been very much a lot of focus on it recently. Why would Companies Want to buy it when it sort of has been slipping and failing recently . I think organically twitter has been failing. Its been failing to monetize its business. However at these prices it provides a great opportunity for a number of companies. So the first is if you want to compete with apple or google, lets say youre alibaba in china, this is a great way do it. Facebook has an app within an app, so developers can develop apps for a social media platform. The second is if youre someone like disney, you need to move online for internet tv. This is a Good Platform for live tv streaming or nonlive tv streaming of tv networks. The third is if youre sales force and you have some kind of cloud batsed marketing app, thi is a good way to market products. You have 313 million users, so you can market many ways. The biggest way is Artificial Intelligence. Artificial intelligence requires data to drive it. Twitter has that data. Sounds like lots of potential suitors to pick them up . Will it definitely happen . I dont know if it will definitely happen, but its great opportunities for companies in tech. Artificial intelligence getting a lot of attention. The other thing i continue to hear more and more about is the internet of things. What do you consider the single biggest opportunity within the tech sector . The internet of things and Artificial Intelligence are related. The internet of things will create loads of data and you will need a. I. Engines to capture that data and make it something meaningful. Then you bring the cloud into that, thats what google and microsoft are doing. Theyre creating huge a. I. Platforms that are expensive to create inhouse but renting them by the cloud. Lets talk about apple. Its been in the headlines a lot because iphone 7 doing better than expected and the eu tax deal. You think the eu tax deal is more kig sasignificant than inv are focusing on . Yeah. I think its a big deal. What its done is kick started a trend in developing economies. So japan is now considering taxing apple quite a bit for profits made in ireland. A lot of other countries will doe that. That will have a kickoff effect in a a knockon effect in the whole of tech. Effective tax rates for Tech Companies generally will go from about 4 on overseas earnings to maybe 10 in three, four years. Thats a big deal for valuations. Does it change your view on the stock . Right now we have a sell on the stockment mentstock. We had a buy for about three years. Right now the gap between the maturing iphone sales, theres more down side than upside. Thank you very much for joining us, Cyrus Mewawalla. 20 sell on apple. Coming up, the most watched debate ever. New viewership stats on the historic showdown between Hillary Clinton and donald trump. Thats next. As we head to break, heres todays Weather Forecast from jen carfagno. Its wednesday, we have some rain out there in the midwest and northeast. Things are changing. We have this upper level low that gets stuck and it is sort of lumbering around. It brings showers to chicago, detroit, cleveland, eventually we will see a moisture tap coming into the midatlantic. A lot of rain coming our way in d. C. , especially the mountains. Well see heavy rain. Flash flood watches already up and will continue into friday that will keep the temperatures down, too. Only in the 60s for highs. In the south, temperatures warm up to the 80s, but humidity is down. Great weather there. Plus High Pressure in the west keeping things nice. A classic late september day. On the warm side with temperatures going to 81 in denver, 89 in los angeles. Thats your coast to coast forecast. Im jen carfagno for the weather channel. Worldwide exchange continues after this. [owl hoots] announcer if you dont fix them, sparks from dragging tow chains can cause a wildfire. And that could be scary. Bye, smokey only you can prevent wildfires. To growing businesses cdw broacross the city,tration increasing productivity like never before, which is amazing, unless youre a barista. Cdw implemented Dell Poweredge servers with intel xeon processors to allow people to work from anywhere, so lucky me. So nobody wants coffee . hey, can i get a couple copies . Enhanced mobility by dell. I. T. Orchestration by cdw. Sprint . Im hearing good things about the network. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your small business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Former israeli Prime Minister shimon peres has died at the age of 93. Peres suffered a major stroke two weeks ago. Chris clackum looks back at his life. Reporter shimon peres spent most of his life searching for an elusive peace with the palestinians. But the way he went about it often angered many right wing jews who considered jerusalem and the west bank their eternal home. During his first term as Prime Minister, peres showed a willingness to compromise and obtain peace by handing over some of the disputed lands to the palestinians. As a result in 1994, he shared the Nobel Peace Prize with his predecessor, Yitzhak Rabin and palestinian leader, yasser arafat. They were honored for their efforts to solve the middle east crisis. An assassins bullet took the life of rabin in 1995 and peres became the Prime Minister for a second time. He pledged to uphold rabins legacy by continuing the pursuit of mideast peace. In the minds of israelis, security was first and foremost. Peres lost his job in the next election by the narrowest of margins. Benjamin netanyahu became the new Prime Minister. Peres peace making efforts were validated when ehud barack foiled netanyahus bid for reelection. In many ways barack followed in the footsteps of rabin by making peace. Peres held every major office in the country including the most ceremonial post as president from 2007 to 2014 and continued to host Public Events at his peace center. Bringing together arabs and jews in efforts to promote peace and coexistence. Chris clackum, nbc news. Quite a legacy. Now to u. S. Politics a Record Number of people tuned in to watch the first debate between Hillary Clinton and donald trump. Neilsen says 84 million watched the candidates spar on monday night. That tops the previous record of 80. 6 record for the only debate between jimmy carter and Ronald Reagan in 1980. The numbers dont include people who watched the debate online, through twitter, facebook and other social media. President obama has nominated jeffrey delo delorent the new ambassador to cuba. He previously worked at the United Nations and was a Deputy Assistant secretary of state. The president said his leadership has been vital in normalizing relations between the u. S. And cuba. Now to sports. Team photo day for the u. S. Ryder cup golf squad didnt go according to plan for one well known member. Tiger woods vice captain for the u. S. But is not playing in the tournament as he recovers from injury. He thinks the photographer wants him to stand in the back row but it becomes clear hes not supposed to be in the picture at all. Just the players. Tiger took the snub well and had a laugh on the sidelines. The ryder cup begins on friday. Thats classic. Not typical of a 14times major winner, but he took it well. Still to come, the top stories including wells fargo callbacks and dont miss saras exclusive interview with imf managing director Christine Lagarde. Catch that live at 11 45 eastern. There could not be a better time with that interview with all the troubles in european banks at the moment. Good morning. Financials in focus. Wells fargo announcing a probe and executive claw backs. Plus in europe, Deutsche Bank shares rally on comments from the lenders ceo. And earnings central. Nike shares under pressure this morning. Well tell you why. Plus elon musk is ready to send you to mars and out of this world. Prediction headlines todays top trending stories all coming up. Its wednesday, september 28, 2016. Worldwide exchange continues. Good morning. Very warm welcome back to Worldwide Exchange on cnbc. Im well will alongside Morgan Brennan. Good morning. Good morning. Sara on assignment today. Shes in chicago where she will be interviewing imf head Christine Lagarde. Catch that conversation at 11 45 eastern time. Lets check in on the markets. Were caught higher, slightly, about 30 points for the dow. Weve now slipped ground, lower by 28 points. A change in the sentiment in the last 20 minutes or so. Yesterday most of the s p 500 sectors were higher. Tech was the big performer. Utilities the worst performing s p 500 sector. A traditional risk on day. Lets look at trade around the rest of the world. European shares were more meaningfully higher earlier. Thats the reason we slipped on u. S. Futures. We were over a percent higher on the europe indexes. Now just three quarters of 1 . Lots of talk around the german banks, particularly Deutsche Bank, which we will have more details on in a minute. Thats been the main driver for risk sentiment around the world this week. Asian trade softer, particularly the nikkei. There was some talk that the negative Interest Rate policy could be extended. The nikkei falling 1. 3 despite a weaker yen. Highlig highlighting some negative sentiment. A look at the broader markets. Checking oil. We have oil futures higher, both wti crude. Ice Brent Futures also up to 46. 22. Thats following a higher day yesterday as well with wti crude we saw an unexpected draw down in u. S. Crude stocks in the api data last night. Folks will keep their eye on the eia numbers today. It has been a volatile few days for crude. As opec countries dont im getting myself tripped up here. Holy smokes. As they unofficially meet in algeri algeria. Keeping it moving here. We have the tenyear note f we can pull that chart up. The tenyear note, the yield is tracking higher 1. 754 . Gold is lower today as it was yesterday. Moving on, lets get to corporate news, wells fargo ceo onstumpf will forfeit about 41 million in unvested equity and temporarily forgo his salary. It comes as independent directors launch an investigation into the Retail Banking practices. The bank announcing that the former head of the Community Banking division had left the company and would not receive severance payment. She forfeited about 19 million in outstanding unvested equity awards. The decision was announced by the head of the nonexec board, Steven Sanger who said we are concerned by these matters and we are committed to ensuring that all aspects of the work is done with integrity and transparen transparency. The stock up a bit in the premarket. You think that stumpf will be able to hang on to his job . This will be enough . When we looked at the Senate Hearing last week, he was in strong position. If he shot himself in the foot would his position be in question. It was a poor performance. This hearing comes down to can he perform well enough to save hymn. Himself. A big part of that was making lawmakers think he was sorry. This claw back is a big part of it. He has to also perform well to save himself, but the company its is probably all right. The earnings never in question, just his handling of the issue. Shares of Deutsche Bank rising today, also bouncing back yesterday. Up 1. 75 . They have slipped. They were up more than that earlier. Among the reasons for the share price rise, john cryan seeking to reassure investors. Share price recovery encouraging. Stocks still down sharply over the last year, down about 50 . More headlines coming out this morning. Another german newspaper saying that the government is. Reportereporting a bailout. You would think that would be further reassurance, but the share prices have slipped since those flashes. So lots of news and developments on Deutsche Bank. The key news is after the big share price fall, we have had two days of encouraging performance. Seems like they stopped the rot. Lots of questions still for them. Certainly. The royal bank of scotland also in the news agreeing to pay 1. 1 billion to a u. S. Regulator to resolve claims that it sold toxic mortgage back securities to Credit Unions that later failed. The lender said it set aside 3. 8 billion to cover lawsuits, but rbs still faces a settlement with the u. S. Justice department. You can check shares, they are up by a half percent right now. Another stock to watch is nike. Shares taking a hit following disappointing First Quarter results after the closing bell yesterday. Landon dowdy joins us with more. Whats going on with this stock . Nike reporting q1 results that beat the street estimates by a long shot but it didnt do it for investors as the forecast for future orders came in weaker than expected. Nike posting earnings of 73 cents a share, beating by nearly 20 cents on revenue of 9. 1 billion. Futures orders a key gauge on demand, rising just 7 worldwide. Thats the lowest growth in five quarters. In part due to weakness in the basketball business and increased competition from addidas and under armour. Mark parker says nike can continue to be the dominant leader in the market. Its a great time to be in the business of sports. As a Market Leader this is a great time to be nike. We not only see the upside across the landscape, we have both the scale and the skill to act on it. Nike shares down nearly 3 in premarket trading. It is the worst performing stock on the dow this year, down 14 . Guys, we saw this competition with our own sara eisen in taipei with seth curry and the launch of his shoe, and also with you, the sneaker queen. We have discussed how keen she is on kicks. She rocks them. Im not one for high heeled sneakers. Does not quite suit me. Landon, thank you very much for that. Thanks. More stocks to watch today. Tempur seally is cutting its full year outlook due to weaker than expected sales in the third quarter. Down 25 in the premarket. Sonic says Fourth Quarter result also come in below estimates citing Less Consumer traffic and spending. Cintas reporting better than expected Fourth Quarter results. More stocks to watch, coty will join the s p 500 after the close of trading on friday. The Beauty Products make ser replacing Diamond Offshore drilling. And dyson foods is recalling Chicken Nuggets sold primarily at costco after hard white plastic was found in the product. The recall is for five pound bags of tyson panco encrusted nuggets. And sea and sears is teaming up with yuber, new uber drivers who sign up with the shop can earn up to 1,000 in points. Im not so sure how far a situation like that goes. I ordered appliances from sears, ive had some bad experiences with customer service. Ill be curious to see how this fits into their plan to continue. Well have to see how people take it. Amazon may have a secret plan to beef up its shipping network to replace fedex and u. P. S. Amazon aims to build a full Scale Logistics Network that wont only ship products ordered from its sites but also other retailers and consumers. So the journal says amazon la been testing deliveries in los angeles, chicago and miami and hired a former uber executive to head the Global Logistics unit. This is essentially my bread and butter in terms of one of the things ive been covering, amazon pushing into its own transportation network. The last mime is the most expensive part of the delivery process. U. P. S. Last week testing drones, theyve been trying to match that and make it a less expensive situation especially on top of Free Shipping and the fact that Consumers Want faster an faster shipping. Amazon, we focus on things like cloud. Transportation for amazon theyre spending more than 10 of their revenue on building out that network. Would their intention to be to build it out and use it solely for themselves or also outsource the network and the lastmile delivery to others and make money off of that . Thats the big question what theyve been saying officially, their carrier partners like u. P. S. And fedex have been saying this is supplemental. But according to this journal report, maybe not so. The u. S. Supreme court denied a request to block an enforcement action by the s. E. C. Lynn tilton is accused by the s. E. C. Of defrauding investors. The resulting means tilton must face a hearing before an Administrative Law judge next month over whether she and the firm head collateralized Loan Obligations and collecting 200 million in improper fees. For todays top trending stories, we have elon musks plans for colonizing mars are one step closer to reality. The billionaire and c eseo of spacspac spacex revealing plans yesterday to have humans on the red planet by 2024. If we get the cost of moving to mars to be roughly equivalent to a median house price in the u. S. , which is around 200,000, then i think the probability of establishing a selfsustaining civilization is high. It could certainly occur. Big news from him on this. Big aims. He says he wants to get the cost down to 200,000. He is saying optimistically the cost is about 10 billion per person. This is very, very ambitious. But you have to admire his optimistic ambition. Certainly. Next trending story, wedding proposals happen at sporting events all the time, but not like this the husband to be getting ready to propose at the new york yankees game, but he dr dropped the ring. Fans helped him search for the diamond, against all odds he found the ring and she said yes. Its well worth to find the full clip op this. He looked so sad when he lost the ring. She looks quite angry, which is also funny. He finds it. Shes happy, hes happy. Great stuff. Yes. Kevin hart dethrowni dethr seinfeld as the highest paid comedian. He brought in 87. 5 million ending in june. Thats about 30 million more than seinfeld. His secret for success . His standup tour. Standup is a great way of printing money. Fill massive stadiums, the cost of the production is a microphone. Its a real slog getting to that point. Spending a lot of times in vans before making that money. Compared to a rihanna tour, the huge production and team behind it. Definitely. Still to come, the must reads, and then later today, saras interview with imf president Christine Lagarde. That no one would ever notice me. But i knew i could be more. That one day, i would make people smile. [woman speaking indistinctly]. Now to the must reads. These are the stories catching our attention. In the washington post, my pick is xerox by xerox ceo ursula burns and arnie sorensen. This article is titled pow passing the Transpacific Partnership will be good for america. And in this they say any further delay in the tpp invites other nations to step forward in shaping the future of trade and commerce in the asia pacific. That would be a needless and regrettable blow to the u. S. Competitiveness and leadership. These are both ceos of Multinational Companies involved in tpp, so they have skin in the game. But thats a meaningful statement in large part because if tpp doesnt go through, which is becoming a more and more likely chance, unless it gets passed in the lame duck session after the election, youre looking at a vacuum in terms of trade in asia. You have other deals being negotiated, most notably with china, which is not involved in tpp. This is an opportunity for the u. S. To weald soft power in the region. The fascinating thing, if it doesnt get through, i would say the expectation is that it doesnt, and if it did it would be a huge surprise since both candidates are against it. It will still be a big focus as soon as the elections are past. I think one of the biggest things that is overlooked is the digital trade portion of this. Which we have not seen in historic trade deals of the past. This idea of digital copyrights. Intellectual property and ecommerce. Thats stuff thats new to the trade partnership. Absolutely right. My pick is in the financial times, wells fargo chain overreaction. The author writing john stumpf will sacrifice 41 million. These eye catching sums. Lehman brothers was brought to bankruptcy only because of the collapsed stock price. At jpmorgan, jaem my dimon merely took a temporary pay cut. It is an interesting point highlighting the big sums forfeited by mr. Stumpf and the wells fargo scandal. I think he needs to get out ahead of this. The sum bigger than i expected but also quite sensible. Interesting further line, its impossible to imagine mr. Dimon or mr. Blankfein holding over control to nonexecutives. That shows the pressure mr. Stumpf is under, that this number and his power issue being forfeited and how much pressure there is to hold on to his job. Much more to discuss on the wells fargo issue throughout today and tomorrow when the hearing comes up. Lets look at the agenda for squawk box. Andrew has a preview. Wells fargo is on the agenda. I want to talk with you about this. Im fascinated by this topic including the idea that i think she have done this two weeks ago. He probably could have given half back of what he will be giving, he wouldnt be in the place he is today. Well talk about that. Also let me tell you what else is going on on squawk today. Senator chris coon. We will talk your money. Our favorite columnist, Holman Jenkins will be joining us, an interesting take on donald trump. We will talk leadership. Lord john brown, how do you feel about that . I know its brettish, a little bit. Neil tyson, the race to space. And then this is a very maybe a male undergarment question for you. Do you wear an undershirt . I do not wear an undershirt. You do not. We have perhaps we have the maker of perhaps the best undershirt in the world on today in the 6 00 hour. Tom paterson from tommy john. Theres a big debate about whats going on with these undershirts. We will talk to him about that. If youre not an undershirt wearer, you must watch. Is there a big debate . Among some guys. Some wear undershirts, some dont. That makes it a debate. Thats a fair point. Please send lord brown my best regards. Futures pointing lower, and oil prices rounding out. Well talk about what to expect today coming up. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back to Worldwide Exchange. Futures losing a bit of steam compared to where they were an hour ago. Called lower, but only about 13 points. Lets talk more what to expect. Michael pervis joins us. This week, we have seen quite a lot of volatility including bond yields slipping lower. Thats been related to some Deutsche Bank issues, selling of banks in europe. Is it right that were seeing a bit of contagion in terms of risk sentiment from europe across the u. S. . In terms of Deutsche Bank, if you look at the spread of v volatility for the vix, youre not seeing that yet. Youre not seeing it translate over the ocean yet. So, gains yesterday, a bit of volatility last week around the fed. Markets got to a level where its struggling to go higher in a meaningful fashion . Right now on the s p cash, sort of looking at this 21. 20, 21. 80 trading range. I think well break out of that. If we break to the upside which is likely over the next four to eight weeks, its a function of whether the Deutsche Bank stuff can stay contained. We also have to look at how the our election will play out here. Trump took a hit the other night. If clinton is going to continue, you have to step back and look at the fact of a beta chase to year end. If you look at s p 500 over the last three months of the last six years its been consistently positive and often in a meaningful way. Banks in big focus but also as well. Thats been volatile this week. Stocks have begun to track oil again in recent sessions does that continue . In the neartermnc of getting to 40 befor it gets to 48, 49. As it gets to 40, you will see volatility and correlation tighten up again. You will see tightening there. I can guess it will be a short time at 40, then probably again trading higher after that. Michael, very quickly, 2u. S. Dollar for the rest of the year, can that derail markets . You have to watch how it may play out. If trump is going to climb back up, that will be something what the dollar has been trading off of are bond yields. Bond yield spreads with the bund and if those yields climb, our treasury rates climb, those spreads climb that will lift the dollar up. Michael, thank you very much for joining us. Michael purves. Thats it for Worldwide Exchange. Squawk box is coming up next. Big thing to watch later in the day, saras interview with Christine Lagarde at 11 45 a. M. Always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Wells fargo ceo john stumpf is giving up 41 million in unvested equity. Hes temporarily also forgoing his salary as the Bank Launches a probe into its retail practices. Oil prices rally on an unexpected draw down of u. S. Inventories. Could a meeting of opec ministers change the game . And the most watched debate ever. New viewership stats this morning on the showdown between Hillary Clinton and donald trump. It is wednesday, september 28th, 2016, squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. Weve been watching the u. S. Futures, dow futures down about 15 points. S p down by about 3, nasdaq off by 4. This a day after the markets, equity markets, staged a ral limit dow up by 133 points yesterday. Picking up a lot of the losses it made in the session before. You have that session from friday hanging over things, but the s p up by 13 points. Look at what happened overnight in asia. You will see the nikkei closed down by 1. 3 . The hang seng