Im sara eisen. And im wilfred frost. Welcome back. Thank you. Well check in on the Global Markets this morning to show you what u. S. Equity futures are doing after a second down week for u. S. Stocks. It looks like were adding to the pressure. Dow futures down about 40 points. S p futures down 5. 8. Nasdaq futures down 15. Its going to be a heavy week and day of news flow, Economic Data, fed speak and earnings to Pay Attention to on the markets. As for the tenyear treasury yield, it went above 1. 80. Thats driven up the dollar. The reassurance from the better Economic Data in the u. S. And some fed speak that well get an Interest Rate hike has been driving rates higher. There we sit this morning, just above 1. 80. Well see how that reacts to Industrial Production and other data releases out today. The other bond move to mention today, gilt, the tenyear is seeing the highest yield in our memories. Your independence day. Its important to know the strength after the vote, we saw a big pushdown in yields as people sought safety in terms of bonds relative to other assets in the uk. The yields are going the other direction highlighting that people just want to dump uk assets no matter what. So the bonds, the safest of them, are seeing selling yields ticking up and its compounding the ongoing misery. It also leads to what Central Banks can do about it if we start to get inflation or growth. Thats another reason why we are seeing yields tick up. Bonds being sold because the question is, will we see inflation come . At the moment, the bank of england is looking into whether they are forced to change it. The equity market and across europe we are soft as you can see. And the ftse 100 is the lacquer down 0. 06 . Germany down. 50 . Equities were down last week, but firmly up on friday. The dax up 1. 5 . So profit taking off the back of the gains were seeing this morning. So a look at the asian trade, the nikkei higher on the heels of japanese manufacturing that rose for a second straight month to a half year high in october. Sentiment in the Service Sector hit a 3. 5 low. But for the most parent, this is a negative recession for shanghai. Last week shanghai gained 2 . Just offsetting of the moves from last week. As for the broader picture, well go to oil first. Oil prices have been marching higher for the last four weeks. Wti sitting above 50 this morning giving back just a quarter of a percentage be point. Brent, 51. 93. It is pretty much flat. Gasoline prices are higher. The u. S. Dollar is stronger. The dollar index which measures the dollar against a rate of currencies is at the highest level in seven months. The euro is a bit firmer this morning, but still the dollar holds the high, especially against the euro which lost 2 last week. Theres a big ecb meeting, a decision on Interest Rates later this week on thursday. Dollar yen sitting back above 104. Dipped below that to put pressure on the japanese stoics. Stocks. The pound is weaker again at 121. 67. They have seen important levels. Some interesting numbers there. The strong dollar is still blamed for some of the pain for the multinationals. Comments on that front to tell you about the bank of ja n japans president , kuroda says theres less urgency to add stimulus. He already said theres willingness to do more. Perhaps that has taken the yen off earlier session lows. Not big moves compared to what we have seen on the dollar. Todays top corporate stories, we are watching shares of Deutsche Bank reviewing the u. S. Operations ahead of the expected settlement with the department of justice. Its unlikely the bank would abandon the United States altogether as it is a key market for the investment bank. But the european lender could scale down its u. S. Activities to focus on the german clients. Shares of deutsche are up 0. 4 this morning. So this is quite interesting if they did significantly pull out. I mean, im not sure about the wording of this story were reporting because its kind of all or nothing for them, the u. S. Investment bankers. It is very hard to scale back and not have positions here. Its so hard to spread capital over two places. We already know they dont have enough capital generally speaking. Thats been a question for the last year or two of the u. S. Investment bank. They said they remain committed to it. Personally, i dont see how they can perform a halfhearted pull out. Doesnt it feed into the theme we have been seeing which is u. S. Banks taking market share over the past few years . Absolutely right. And particularly interesting in the likes of the results we saw on friday. Jm morgan and citi doing well in the fixed income commodities rates in their trading business. Thats an area where Deutsche Bank is top three among the names. And on the core as well, the cfo of citi did suggest that over a longer time period, not just this quarter, some of the market share gains they have been seeing could be down to Deutsche Bank. Those were his words. It is certainly an error like the big players are gaining off of. Now to today and the week ahead agenda. Earnings season is in full swing. Lots and lots of companies reporting. Heres a quick roundup of the big ones to watch. Bank of america is before the el be. Then after the close, ibm, netflix and united continental. Tomorrow, results from goldman sachs, Johnson Johnson and intel among others. Wednesday, Morgan Stanley and American Express are the headliners. Thursday, verizon, microsoft, big names to watch there. And on friday, General Electric and milk donalds. Mcdonalds. Now to the economic front, the Industrial Production at 9 15 eastern. Tomorrow well get the Consumer Price index. Always key for the fed. And wednesday the fed does release its anecdotal beige book. Thursday, existing home sales out at 10 00 a. M. And the fed speakers to watch on the agenda today. Well be watching vice chairman Stanley Fischer speak to the new york economic club. On wednesday well hear from the San Francisco fed president john williams. On thursday new york fed president bill dudley speaks. Theres a lot of fed speak adding to volatility and perhaps the confusion in the markets. I would watch vice chairman fischer who has pointed to the fact that the economy is ready, almost there, for Interest Rates that could be potentially disruptive to continue on that theme today. Also the ecb today, its a busy week both on corporate and and we have a president ial debate on wednesday night. Thats in las vegas. Are you going . No, but you can stay up to watch. Netflix is amongst the big agenda of items to focus on today. Landon is telling us what to watch. Netflix reporting Third Quarter results after the closing bell today. Here are the three things to watch. First, the numbers. The street is looking for the streaming service to report revenue of 2. 2 billion on earnings. Thats down a penny compared to the same quarter a year ago. Second, those subscriber numbers, Global Expansion has yielded lumpy results on top of disappointing u. S. Subscriber growth. Also turn rates are the number of people canceling the service has been negatively impacted by recent price increases. And the third thing to watch, last month netflix announced pushing to 50 original content to compete with the likes of amazon and hpo. The firm continued to spend big cash to boost to that goal. Investors will want more color on that. And if the investment is paying off. Well take a look at the shares of netflix down 11 year to date. Back over to you. After being the best performer in the s p 500 last year up more than 100 . Thank you. Tesla and panasonic are teaming up. They will team up to manufacture solar cells and modules which will be manufactured in buffalo, new york. Tesla says the solar cells will be use in the Energy Storage products called power all and power pack. Panasonic already has tesla products in the works and will supply the batteries for the tesla model 3. Quickly, shares of tesla down a quarter of a percent in the premarket. We are expecting other news out of tesla this morning. We are waiting on a mystery Product Announcement from ceo elon musk. But he tweeted that the reveal will be postponed until wednesday because more refinement is needed. Some sources believe the announcement will have to do with teslas autopilot while others believe it could be a rumored model y crossover vehicle. People have to keep guessing. No press releases from this company, just tweets. Coming up, a big commitment from pepsico. They are going to slash calorie counts and salt content among other things. Well hear from the ceo next. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Good morning. Welcome back to world wide exchange. Well check in on the market this morning. We are a tad lower, about a third of 1 as you can see. The dow is at 18,000. Expected to open 60 points lower. Last week we saw declines about 1. 5 depending on which of the three indices you looked at. The nasdaq was down 1. 5 . So definitely equity money taken off the table last week. Well have a look at currencies because the stronger dollar has been a factor weighing both on earnings and sentiment. Its continuing a little bit this morning, but not significantly well, as you can see, in fact, not really against the yen and euro at all. But we have been focused on the falling pound recently. But a big fall in the euro last week over 2 against the u. S. Dollar. So Dollar Strength coming through across the board. Its something to watch, particularly around the key levels. 1. 10 for the euro, 104 for the yen. Well have to wait and see. Sara . Pepsico is going to start to reduce the number of sugar in their soft drinks over the next ten years and plans to lower sodium and saturated fat in its products. I sat down with the ceo of Pepsico Indra Nooyi to find out how much is driven by regulation and pressure there to cut calories and salt. Listen. Overall societies are changing. And consumers are changing their habits because they want to focus a lot more on remaining healthy. Because theyre living longer so they want to remain very healthy for the duration of their lives. If consumers change, we have to change our product portfolio. What is regulation . I honestly believe at this point, regulation is well intentioned. They do want to address issues related to obesity or other issues. But im not sure theyre focused on actually improving the healthiness of the consumers or whatever you want to call it, because they are proposing all kinds of regulation, but they want to use the money from the regulation to fill budget gaps, not necessarily put it back in programs. I do know youre making aggressive goals and its important to you being out front in this. Why is this important for investors to understand . We have gas emissions and package i packaging in sustainability. We use a lot of water in our operations across the board in every country in which we operate. So we have been focused over the last decade and will be over the next decade to ensure the entire Community Around us is water positive. Thats our goal. To make sure we get welcomed into communities and societies, not shut down by communities and societies. And by doing so, we actually save money. Because weapon dont have to pay for water to run our operations. Our sustainability initiatives have saved us 600 million. So i say to you, environmental sustainability is not a nice to do, its a fantastic profitdriving initiative, which also is the right thing to do for societies. With your strong domestic presence, do you see the election uncertainty hurting the consumer . Hurting decisions . Do you see that impact . Not yet. Not yet. Are you expecting that . Does that usually happen . It depends on what happens to markets, it depends on what happens to Overall Economic mood after the election. But at this point, were not seeing too much of an impact. You mentioned the u. S. Consumer. Do you attribute the recent strength in north america clearly a part of your products and categories are working, but how much of it is consumer in better shape here . I think the consumer is in decent shape in north america. Overall, the food and Beverage Market is still growing at 2. 5 to 3. 5 . Thats a pretty decent growth for the u. S. , which is such a big market. And i think the Convenient Store business is still growing. Pepsicos Ceo Indra Nooyi saying the u. S. Is in decent shape. Well have more news on pepsico on squawk on the street. But i wanted to offer a snapshot of their ambitious targets when reducing sugars, saturated fats and salts. She talked about innovative ways pepsico is managing to do that. Its just another example of a big food and Beverage Company responding to consumer shifts. Pepsi has been early on this sort of theme, they have been doing quaker and naked and diversifying away from cola. But clearly they have a lot more work to do. On that note, trying to make the sustainability efforts to conserve water and boost cost savings and also to boost diversity among hiring is key to this company. And try to spin thats a boost to profitability as well as something that is good for the society as a whole. But it remains to be seen, right . Well, she can speak to direct cost savings and i think it is importantly that not just consumers are paying more attention to, investors are paying more attention to it and employees, to hire the best talent in the world, they want to know what their companies are doing on that effort. Pepsico shares are down 2. 5 over the last three months. Now to the u. K. , over the weekend it was revealed that Boris Johnson is a leading figure in the campaign to leave the European Union may have had his doutbts. The u. N. Foreign secretary Boris Johnson was coming out in favor of the exit. Its apparent he also wrote another article that has been leaked. He defended his article saying it was semisematic he said, look, i wrote the article to leave. I thought to check my own opinion i would try to write the article to stay as well and weigh them up and then i decided definitely i was right to back a leave. Thorough thinker. To put it on paper does suggest all sorts of different issues. But definitely embarrassing for him. To corporate news, zto express has set terms for what could be the biggest initial Public Offering this year. And the biggest by a chinese firm after the 25 billion debut of alibaba back in 2014. This offering which is set for later this month could raise as much as 1. 5 billion dollars. So nowhere near the size of alibaba but still worth watching. And a new poll Shows Hillary clinton has an 11point lead. A live report from the nations capital. Dont go anywhere. Youre watching Worldwide Exchange on cnbc. 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. This man creates software, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Gilman go get it, marcus. Go get it. Coach gilman used his cash rewards credit card from bank of america to earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. Welcome back. Iraqs Prime Minister announces the start of a ministry offensive to provide air strikes and artillery against isis. And now to the u. S. President ial race. Edward lawrence is joining us from the latest from the campaign trails and new polls out this morning. Good morning. Reporter good morning, sara. Some bombshell falls right before a big debate. Well, now donald trump stepped up his claims that the election process is rigged. Donald trump called people representing Hillary Clinton animals in a tweet, after someone firebombed the gop headquarters in orange county, North Carolina. As politics in North Carolina turned violent a totally rigged election. Reporter trump claims the election is rigged with help from the media promoting false stories about him. Governor mike pence defended his running mate on nbcs meet the press and accused reporters of ignoring the real story. The way the National Media is ignoring the avalanche of real hard evidence of corruption during the years of the clinton administration. Reporter pence is referring to emails released through the freedom of information act as well as hacked emails from the Clinton Campaign posted to wikileaks. Senator tim kaine defended the top of the democratic ticket saying we cannot take the hacked emails as fact. We just got to be a little bit careful about these because since theyre part of an effort by both russia and wikileaks, and neither of those are kind of neutral transmitters of information reporter information the Clinton Campaign wont confirm or deny as wikileaks released transcripts to paid executives from Hillary Clinton this weekend. Hillary clinton has no events scheduled before the debate in order to prepare. Donald trump will be on the campaign trail with events in wisconsin and colorado before going to las vegas ahead of the last debate. Reporting live, back to you guys. Edward, thank you very much for that. In the meantime, a new nbc news wall street journal poll finds Hillary Clinton now holds an 11point National Lead over donald trump. The poll was conducted after the second president ial debate a week ago. In a fourway race, clinton holds 48 . Trump gets 37 . In a headtohead matchup, its 51 to 41 . So a big move as we all know since that weekend of turmoil for mr. Trump. In other news on the campaign front, peter thiel is making his first donation to the president ial candidate. Hell be giving 1. 25 million through a combination of super pac donations and funds given directly to the campaign. They call him appropriately a contrarian. We knew that thiel spoke at the convention but he had not given money to trump. Now that has changed. Now hes stepping up to the mark. Some say too little, too late. When we come back, gardner is back with the it spending plans. Stay tuned. Youre watching world wide exchange. We got a tempurflex. And its got the spring and bounce of a traditional mattress. You sink into it, but you can still move around. And now that i have a tempurflex, i can finally get a good nights sleep. Buy the most highly recommended bed in america for as low as 25 per month and a 90 night free trial. Good morning. Buckle up, a busy week ahead. Economic data, fed speak and politics. Well tell you what to watch straight ahead. Fellow the money. A new survey on how much companies are planning to spend on technology. Those details coming up. Plus, video going viral. Saturday night live offers a funny take on the election and how donald trump is swiping back. Youre watching Worldwide Exchange. Good morning. Welcome back to Worldwide Exchange on cnbc. Im sara eisen. And im wilfred frost. We are lower to a third for most of the major indices. We did see a half percent of declines for the week as a whole. 1. 5 for the nasdaq. 56 points lower on the dow. 19 for the nasdaq. And 8 points for the s p. Were seeing declines elsewhere around the world as well. Europe did see big gains on friday. The dax was up 1. 5 . Giving up half that this morning. The ftse 100 down 0. 9 . Thats a relative outperformer recently in the face of the british pound. The question is now focusing on the weakness of the british pound being that much in terms of a shock absorber for the british economy and what it means for the likes of inflation moving forward. A look at the asian trade has been soft. Hong kong and shanghai both down the best part of 1 . This follows a 2 gain for the shanghai market last week. As for the broader markets, well check in on the price of oil. Above 50 a barrel but under a little bit of selling pressure down a quarter of 1 following gains for oil prices. With did get the report on friday afternoon showing u. S. Drillers did add four rigs to the week october 14th. Thats part of the pressure on the wti. Brent is below this morning. Only by. 04 . Stan fischer, vice chairman of the fed, will be speaking today. The higher yields have been driving the dollar stronger. Its at the strongest level in seven months against other major currencies. The euro will be especially weak losing 2 last week. This is ahead of the ecb meeting on thursday. Well see if it changes there. But it looks like the dollar is holding on to its gains. The dollar yen 104. 12. And the pound continues to weaken on some of its own issues against the u. S. Dollar. Gold quickly, well just show you that, where we are this morning on the back of the stronger dollar. Gold has been under pressure. And it is this morning. So just fractionally at 1. 253. When you say bothered by thats the british way. I thought you went full canadian. I liked it. I think i did it right. It was good either way. The content was excellent. I just picked up on the pronunciation. Well get to this weeks agenda with the full swing. Lots and lots of companies reporting. Heres a quick round up. Bank of America Today before the bell. After the close, ibm, netflix and united conteinental. On on tuesday goldman sachs, intel and Johnson Johnson. On wednesday Morgan Stanley. Thursday, Union Pacific and american airlines. And friday ge and mcdonalds. Theres a lot to talk about. We have questions on what is going on after the export numbers last week. Cpi was strong. So i think people after a day of sort of selling off on wednesday or thursday we then rallied a bit more in terms of chineserelated trade. Shanghai ended up 2 higher. The yuan is at a sixyear low. Could be a dollar strain, but there are questions when it starts weakening about what is going on. At the same time, gardner is releasing the latest it spending forecast this morning. Joining us with the details of that report and the first on cnbc interview is peter sundegard. Welcome to you, peter. What is the Headline News of what it spending is looking like . Yes, good morning. We will, this year, see the it industry be 3. 4 trillion dollars. But were actually seeing a slight decline in the market by. 3 . Its a tale of two cities. Some areas are declining, for example, devices like the pcs and mobile phones. Where the real growth is in software, and in particular cloudbased software. And then in services. Next year we think well revert back to a slightly faster growth rate, 2. 9 , in the overall industry globally that will grow to about 3. 5 trillion dollars. Again, its the main segments that are growing because we are really seeing this sort of pull ahead of software and service as technology really changes. And that is one of the things were covering at our conference here in orlando this week. The cloud, things like that, are structural shifts. So does spending in those areas remain strong regardless of cyclical factors we might be seeing or seasonal factors, things like the election and possible rate hikes . Or are those factors actually affecting the levels of spending that youre expecting . I mean, we looked at previous years in terms of certainly the u. S. President ial election. And there really isnt any impact from an election perspective in Technology Spending. And we dont expect that to happen either this time around. But theres a small halt maybe from some companies, but generally elections, when it comes to u. S. President ial elections, have not had impact on Technology Spending. Perhaps more interesting is what brexit has had in terms of impact on spending because there has been impact from brexit. What are you seeing there . In europe or in the uk . Well, interestingly enough, we were on track to probably this year see a. 2 increase in Tein Technology spending globally. But we are seeing a negative impact on the overall market. The reason is the u. K. Is the fifth largest Technology Spending market. Of course, when you measure the overall Global Market in dollar terms, what has happened to the u. K. Pound has a Significant Impact on the overall market. It also has impact on particular Technology Providers with larger exposure to the u. K. Market. And theres some technology vendors, in particularly the hardware space, that have a large exposure because of the importance of the u. K. Market. And that may impact them shortterm, in particular, the ones where their exposure is above 15 of their overall revenue. So whats the big takeaway here . Its not surprising that spending on Cloud Services is higher with spending on pcs lower. What is the surprise . And what is the takeaway for a company, either in technology or a General Motors who is trying to become more technologically savvy . Well, the last is really the important aspect, which is what we view historically as technology is not technology that we will have in the future. Every company is essentially a technology company. And were seeing that, for example, when we look at Companies Like ge that has a Single Software division now that they sell software, the issue here is that the definition of what is products and services that we use every day, or for that matter, that industrials produce now contain more and more technology so that the sector, the way we have known it, will not exist in the number of years. And so when we look at individual companies, like, for example, ge, well have to look at a company that is an industrial. But frankly also is dominated by a future that is very much a softwaredriven future. And the interesting part here is were entering a battle in which many of what we call sort of the internet giants or the apples, the googles, are sitting in between fixed Product Companies and then the consumer. And we think those companies are going to dominate by 2020. About 20 of digital transactions. So Many Companies now have a decision to make. Do they Work Together with the digital giants, the apples, the googles, the facebooks and so forth, or do they build their own platforms, which is what were seeing Companies Like ge do. Yep, got it. Thank you, peter. Very interesting to break the results down with us first on cnbc. Peter sondergaard of gartner. It is safe to say that president ial candidate donald trump is no longer a fan of saturday night live. The snl cast performing their take on the second president ial debate at the town hall. Alec baldwin is returning at trump and kate mcginnon is Hillary Clinton. The morning after the episode aired, trump tweeted, watched saturday night live hit job on me. Time to retire the boring and unfiny show. Alex baldwin because they were moving with songs around, it was a spoof that was great. A sheriffs deputy showing off dance moves to a gym full of High School Students in virginia. Lieutenant diggs is performing beyonces song of formation. He added the splits at the end. Quite a performance from the unexpected individual. Hes also a motivational speaker and says his goal is to improve relations between his local community and the police. There we go. You cant see it in the video, but its a stunning effort. Most people remember luke perry as teenager heartthrob. Dylan mckay on 90210 in the 90s, which i hope you watched. But last week the actor turned 50 and hes now on the cover of aarp magazine. Fans certainly taking note. One woman tweeting, luke perry is on the cover of aarp. He had an 8 by 10 in teen bop like yesterday. I can totally remember loving dylan on 90210. I dont know who he is, but i think i would have read that as aarp. Oh, yeah. Its a Big Organization for senior citizens. Thats why its so funny that he was like the protagonist on the cute guy of 90210. That was on in the 90s. So when we were 8. No, like teens into high school. Didnt translate that. That was more Like Neighbors in the u. K. Ever heard of neighbors . No. You like some british shows. Some of them. We have to move on. Much more important than both is coming up today. Marking the fifth anniversary of the Halftime Report with scott waltner. That all starts today at noon on Halftime Report. The fiveyear anniversary. Look at the lineup. Coming up, todays must reads. Well look at the european trading stocks operating at this hour. Most of them are in the red. The u. S. Equities are following, too. Stay tuned to Worldwide Exchange here on cnbc. You should have quit while you were ahead. 32 years at this place and ive got 9 days left before retirement. Look jim, weve been planning for this for a long time. And well keep evolving things. So dont worry. Knowing whats on your mind and acting accordingly. Multiplied by 13,000 financial advisors. Its a big deal. And its how edward jones makes sense of investing. Honey, arent we having friends ovi know [goat noise]e. I stole the other teams mascot for good luck. We need to wash this room. Wash it . Yeah, wash it with febreze. For all the things you cant wash, use febreze fabric refresher wow [inhales] it really smells great in here. Dog barks and try pluggable febreze, with up to 4 times the freshness in one refill. Pluggable febreze and fabric refresher [inhale exhale mnemonic], two more ways to breathe happy 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 now to this mornings must read stories catching our attention in the papers. Mine is on cnbc. Com this morning. Its an oped entitled heres why 100 Business Leaders support trump for president. I keep reading the articles that fortune 500 ceos are not supporting trump for president. Heres why some other Small Business and Business Leaders like dan dimico and the current ceo of karls jr. Are, they say, hes promised to reduce the growth destroying regulatory burdens businesses must ensure including the repeal of obamacare and would keep our energy and dollars in the u. S. With the above trade policy and negotiate new ones, sort of laying out the trump case that trump lace out himself over why he would be better for the economy and why clinton would not. Just thought it was interesting to hear that some Business Leaders actually depakt that. Hes run a payroll in business himself and could implement these sort of growthfriendly policies in ways that Hillary Clinton cannot. It is not just some Business Leaders, its some ceos of the fortune 500 countries companies. They dont represent the feeling on the ground but many Smaller Companies and many workers are feeling the same. And Andrew Puzder will be on squawk box at 8 00 a. M. Eastern. Still a lot of earning reports and Economic Data points to discuss. Well talk to David Rosenberg coming up. Stay tuned. Youre watching Worldwide Exchange on cnbc. Guess what guys, i switched to sprint. 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. Welcome back to Worldwide Exchange. A andrew is here to tell us what is coming up on squawk box. Heres what is coming up. At 6 45 they will release results. I had you down for 7 00. You come to us earlier well have to wait and see. I think youre forgetting another friendly face that will be joining you. We are just getting to that. The claws are coming out. Look at that. You have to give me time. Because at the 7 00 hour, sara is going to be with us for two hours. So what else do you have to look forward i could tell you about the other guests on the show, but its not really necessary given the great given your background, deep down youre more excited about my hit on bank of america over saras on pepsi, arent you . Yai cant make that choice. Its like i have two children, i love both of my children, i cant do that. I do want to say this that you talked about before the break, part of the group of 100 ceos planning to vote for trump, hell be on in the 8 00 hour. Well have what i imagine will be a spirited, lets call it, conversation with him about the election, his plans and his support for trump amidst a number of ceos who have been on the other side of all of this. So we have a lot of other things, but you guys are the main event. Thank you, andrew. Great stuff. We look forward to squawk box in nine minutes time. Well talk markets, joining us from toronto, David Rosenberg, thank you for joining us. A very, very busy agenda this week. What is top of it for you . Corporate side or micro factors . Well, i think the combination of the two. The earnings season is very important since theres this r view of the numbers coming out and the guidance heading toward the final quarter of the year. And i think that the fed speak, you know, you folks have been talking a lot about the bond yields we have seen. Im not so sure its come out of the Economic Data per se, but a lot is the shifting perception on Monetary Policy globally. So i think the more clarity we get on the fed speak this week is also going to set the tone as far as Interest Rates are concerned. Lets talk about earnings. You mentioned the recession were in. When we talk about it, we usually point to Lower Oil Prices and the stronger dollar as two major factors for why Companies Profits have been hurting. The dollar is back on the march higher again, but oil prices are as well. So how do you think those two factors will impact what we see this quarter and the outlook for the next . Well, i think that the firmness in the oil prices so far as its sustained, i think is broadly a positive in the sense of what it means, not just for energy earnings, which was the epicenter for the earnings recession, but all the Auxillary Services that feed into the sector. So that is a positive. But the u. S. Economy is in decent shape. I just dont see that in the numbers. I still think the economy is soft. The stronger tone of the u. S. Dollar is going to be a tourniquet for earnings. And the reality is even if you have the view that the earnings recession is bottoming out, the reality is when you look at the multiples many the stock market, they are pricing in a doubledigit recovery in Earnings Growth over the course of the next year. So you dont have to be cautious on the stock market with the negative view on earnings. If you dont get doubledigit rise in the next four quarters, it will still be a struggle embedded in evaluations right now. David, what do you put the tick up in bond yields down to . Including the bearish yields ticking up, is it not because the economy is improving . I dont think it has to do with the economy. Lets face it, you had like the 15th correction in the treasury market since the Great Recession ended in mid09. We went into labor day market being bullish sentiment on treasuries that was 80 . Doesnt usually get much harder than that. You go to the futures and options pits and youll see the long position by the fast money guys was well over 100,000 long contract. So you just its herd mentality. You go down to below 140 on the tenyear note and all of a sudden the mattress is heading to 1 . So i think its a classic case of too many bulls in the ring at the same time. So youve seen a lot of the bullish sentiment come out. A lot of this is technical. Part of it reflecting, i think, a shift in bank of japan policy towards targeting the yield curve as opposed to targeting the size of their balance sheet. But how can anybody think this is about economic strength in the United States . The atlanta fed on friday just took its Third Quarter estimate for gdp to below 2 . This is the fifth quarter in a row that the u. S. Economy couldnt manage to print a gdp number better than 2 . This is the first time this entire cycle that we have had five quarters in a row of sub2 growth and yet the narrative was that the u. S. Economy is in decent shape. No, actually, the economy is on pretty soft ground. As long as this is technical, the twoday moving action is telling you to come close to testing 2 of the tenyear note. That does not violate any of the longterm lines and probably represents a diverse opportunity. David, i want to get your thoughts with the negative assessment of the economy and bonds on equities. We have been seeing weakness the last few weeks but broadly holding their gains. The nasdaq is off 2 from the record high in terms of valuation and the economic backdrop, do you see stocks vulnerable to a correction . Sara, the answer is yes. And i think were in a corrective phase. In you look at the breath of the market, not very impressive. Negative divergences abound. And you really had support from two areas of the market. Most of the sectors are actually down negative over the past three months. But you have had an underpinning from financials. A lot of that is because of the view the fed will hike rates, give the bank some positive interest margin. And you have the firmness in oil prices. And the oil prices right now are going to top out. I think that the opec agreement is already in the old price. And i think most of this runup in bond yields has helped out the banks. Most of that runup is behind us. You look at what is happening beneath the surface, the past three months is actually negative, not positive. Were out of time. Thank you. Squawk box is next. Good morning. Banking on earnings. This morning bank of america and after the bell investors focus on netflix. Were banking on those earnings. And getting ready for round three. Donald trump and Hillary Clinton will faceoff for the third and final time on wednesday night. Find out which deeppocketed donors are opening up their checkbooks for the candidates. And a major milestone for the simpsons. After 28 seasons, its on track to break a 41yearold record. Its monday, october 17, 2016. Squawk box begins right now. The simpsons live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box here on cnbc. Im Andrew Ross Sorkin along with joe kernan. We have more coming up from the data front. Monday today at 9 15 a. M. Time we get Industrial Production. Tuesday, Consumer Price index. Wednesday, the fed speak and thursday jobless claims. On monday we get to hear from Stanley Fischer. On wednesday we get to hear from john