Im wilfred frost. Good morning to you. Lets look at global stocks this morning. Starting with u. S. Equity futures. It really has been a tale of earnings especially on the dow. Yesterday pulled up by procter gamble, pulled lower by 3m. Dow futures under pressure to the tune of 62 points. S p 500 futures down about 8. Nasdaq down about 26. As for the tenyear yield, we are going into a heavy batch of Economic Data. 176 is the yield. Thats sort of in the mid point of the range that weve been seeing, 170 to 180 a few weeks ago. See if we can climb over that threshold. The betting odds are that december is a go. November not so much. Exactly right. Yesterday we did see in terms of quantity more beats in the Earnings Releases that we saw than misses. But there was some high profile misses on stocks that Consumer Confidence data also had, also oil prices slipping below 50. Apple after the bell a big weight. Thats a factor on futures. Lets look at european equities. Theyre in the red. Quite significantly so today. The best part of a percent for the ftse 100. Germany and france not far behind. Seeing declines. Oil again cited as one of the factors for that. Asian trade was negative and there was some talk that the extent of lending may be clamped down upon. Thats weighed on shanghai and hong kong. The nikkei eking out a small gain. As for the broader market, you mentioned oil. Lets check in on prices. Wti slips below 50 a barrel. Under some selling pressure here. Down 1. 5 . Brent to 50. 06 down 1. 4 . Theres skepticism about the opec deal. We do have the Government Data release on wednesday for inventories later this morning in the session. Brent was below 50 a few minutes ago. So its hovering around that level. Just a bit of fear. Now its below the high profile number of 50. Will it continue . Will the fall proliferate from there . Either way were still above where we were a while ago. Just bit of concern in the market yesterday and today. You have the stronger dollar, which tends to push modi itcomm prices lower. The euro a bit firmer, 109. 23. The dollar is also weaker against the yen. The strong dollar giving something back. The dollar yesterday reaching the highest level since february. The pound 1. 2206. The pound has been all over the place. This is the new eamericans mmeis currency. When were down, we recover, but still 1. 220, as you say, a bit worrying. As for gold, lets show you on the flip side, gold getting a bit of strength, though not much. To todays top story, apple, the words most valuable Company Reported its first decline in annual revenue an profits since 2001. Revenue fell for the Third Straight quarter as iphone sales dropped from a year ago. Earnings came in at 1. 67 a share. One cent better than estimates. Revenue fell 9 to more than 46 billion. That was in line with expectations. Still, the tech giant issued a rosy outlook on hopes for strong sales of the iphone 7. Tim cook addressed the numbers on the call. Our results for the September Quarter were very strong. We generated 46. 9 billion in revenue in the quarter towards the high end of our guidance range. Gross margin was 38 . At the very top of our range. We sold 45. 5 million iphones, reflecting continued improvement in year over year performance compared to the last two quarters as we forecasted in january. Iphone sales were up in 33 of our top 40 markets. Part of the problem was china. Sales declined 30 of the companys most havent quarecen. Its very hard to gauge demand, as you know, when youre selling everything youre making. Well find out more through the quarter. Were confident enough to give you guys guidance that were returning to growth this quarter, which obviously feels good for us. And from a longer term point of view, out of the 90day clocks, and so fourth, we are very bullish on china. Joining us now on the cnbc news line to dissect the latest quarter is sean harrison, Senior Research analyst for supply chain electronics and Industrial Technology at longbow research. Thanks for calling in. Thank you. First we saw shares pop a bit on the number after hours, after what looked like a beat. Then they gave it back. Now they are under pressure into the open. Ive seen excuses ranging from the average selling price for the iphone going down to bigger, longerterm questions about where the next growth spurt for apple is coming from. Why do you think shares are reacting this way . I think the answer is in between. One of the larger questions is apple cant meet demand an how much of that demand is perishable meaning it cant capture maybe some of the interests into the quarter. It trails into the march quarter and competitors get some of the product. Gross margins are lighter than street expectation expectations. Apple expediting get products to market, then there is the longer term question. They did touch on ai on the call. Interest in tv and content, you can hear them talking about the car, with r d spending up, and sales down t begs the question of when is the gratification going to come from an increased r d spend. For hardware, china is meant to be the growth region. It fell significantly and is no longer a part of the pie. Its 20 of the revenues. How concerning is that . It is a bit concerning. As you played in the clip, apple is promising a return to growth here in the december quarter. Very tough comps last year in the china market. The iphone 7 plus is preferred relative to the smaller foreign factor. Well see how the december quarter plays out. Also the Services Business in china is not as strong as the west. Thats something to watch as well. The bigger question is debts quarter returns to growth, what about the march quarter and beyond. There are some questions beyond the december quarter. Why doesnt the Services Revenue growth excite investors and analysts in Services Revenue growing 24 to a quarterly record of 6. 3 billion. Apple talks it up certainly. Why isnt this the next growth area . Why doesnt the company seem to get respect for that profitable division . You know, it is a funny dynamic. You sold 137 billion worth of iphones last year. 24 billion worth of services. Its a high market business growing 20 year over year, its a relative scale to the iphone. The iphone still moves the needle. Whether you can continue 20 growth year over year, apple suggests it can, but its something theyre watching. Great business, demonstrating the Apple Ecosystem and the love for products, but its still tiny relative to the iphone. What do you do with the stock . Its down 3. 4 in the market. It had a strong run up into the report, up 20 in three months. How is it likely to trade for the rest of the year going into the allimportant Holiday Quarter which tim cook sounded optimistic about in terms of iphone 7 demand. Feels like were getting a sideways trade in the stock. Whether apple continue tossing bu continues to be bullish for the product, you are left with a dearth of demand rather than sell through. Thank you, shawn. I was going to get your target quickly before we let you go. Target price 140. Got it. Shawn harrison of longbow research. Thank you very much. 15 years ago this week the ipod was released. It feels like a long time. I remember when i first got one. This Time Next Year it will be tenyears from when the iphone was released. Thats the key right now. More than 60 of the revenue comes from the iphone. Thats what the street has started to focus on. If you read through Conference Call highlights. Analysts used to love this stock. One analyst asked on the call, which is sort of a strange thing usually you focus on the quarterly numbers, dig deep, does apple have a grand strategy for the next three to five years, i know you wont tell us, but do you have one . Tim cook responding we got the strongest pipeline weve ever had. Were confident about the things. But as usual we wont talk at all about it. He was pressed to follow up. This is what theyre trying to figure out. What is the next thing as what we see, iphones cant continue to grow the way they have in the past. Prices continue to come down, even if the iphone 7 has pleased. Its not just the iphone. 80 of sales are from hardware, add to that the ipad, watch and the mac saw declines. Thats across the hardware suite of products. Until you see that next product, people are worried. Other stocks to watch today, a busy one for earnings last night. Chipotles Third Quarter profit plunging 95 as that Company Continues to struggle to recover from the food safety scares. Last year the chains samestore sales fell 22 . Worse than expected. But forecast sales to rise in the high Single Digits in 2017. Shares under pressure in the premarket to the tune of 2 . Panera breads Third Quarter results beat forecasts. Samestore sales rose 3 . They were helped by price increases in the menu and raising fullyear outlook. Pandoras third year earnings falling short of expectations. Also cutting their fullyear guidance as the number of full time listeners falls and costs rise. Akamai beat forecast. The company which helps to speed up delivery of content over the internet was helped by Strong Demand for its Cloud Security products. And today lloyds reporting Third Quarter profits sank. The uks Third Largest bank setting aside cash for Insurance Products that customers didnt need. They say the Brexit Impact on the company was muted. Some question whether they can generate enough capital to maintain the dividend plan. The ppi thing, its a ukfocused insurance, the possibility of raising pore capital. Switching to a bank over here, wells fargo, the newly appointed ceo, tim sloan, told employees hes sorry for the pain that the banks employees have felt due to the bank practicing scandal. Sloan acknowledged that the bank did not respond to the problem in branches soon enough and the role leadership played adding it still hurts that people felt that leadership blamed employees. Wells is rolling out a new ad campaign to address the but admd expect more tough headlines. Before the bell, well get numbers from boeing, cocacola and comcast, the Parent Company of cnbc. Snackmaker mondelez on northrop grumman. As for the Economic Data, the advanced report of trade deficit at 8 30, and new home sales at 10 00 a. M. Cnbc hosted a net net summit at the new york stock exchange, the Program Designed to look at the Way Companies and executives are promoting innovation, using technology to accelerate growth. The summit offered financial executives a chance to think about tomorrows trends in the context of todays challenges. Among the highlights i moderated a panel with pepsicos ceo and her cfo, hugh johnson. Have a listen. We argue, we fight about lots of issues. But when we come out to the executive committee, we have to show a level of unity. The reason being that it cant be that the cfos disagreeing with the ceo. And then the question is who is running the company. You cant have that kind of confusion. I say who is running the company, he keeps nixing everything before it comes to me, thats not a good thing. On the other hand, if i override hugh, thats not good for hugh. Its important that the ceo and cfo see eye to eye. We discuss things ahead of time. I thought that was a good window there into the relationship into the Corporate Office of a company we talk about the summit finished with q a between jim cramer and preet bharara, and cybercrime was a big issue. I think the government is a bit behind on understanding technology. We are doing the best we can to get ahead of it. Some of the hackers who are hurting you guys and causing a threat to you guys and to the government and our infrastructure are way ahead of the game. The net net summit last night. Still to come, nintendo cutting its profit outlook today. Well tell you why and speak with an investor who went active on the stock a few years ago pushed mobile gaming and made a fortune in the process. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. The Conference Call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Other earnings this morning to tell you about. Then anyone cutting its profit outlook, but they got a bounce from pokemon go smartphone game and shares in japan under a bit of pressure. The activist investor oasis investment urged nintendo to go mobile and have benefits from success of pokemon go. Joining us is seth fisher from oasis. Hes in tel aviv for the annual conference there. Good morning to you. Thank you very much for joining us. Lets quickly touch on this nintendo Earnings Report this morning. If you could tie it in, what theyre doing there with the recent success of pokemon go. The benefits of pokemon go already been seen and passed by . So we still saw revenue down, and net income was up. Thats because pokemon go is below the line. Thats super exciting, weve yet to see the full effect of super mario being available on the iphone 7. Thats coming soon. That will be well see that impact. But, yes, pokemon below is below the line. Does then anyonintendo remai way for millennials to get involved in smartphones . Yes, absolutely. Lets talk about the other reason why youre there at the sohn conference. You made a presentation on yum brands. Whats your overall view on yum . Sure. I actually spoke about yum china. Yum coming november 1st will split off its business split between yum and yum china both are extraordinarily different businesses. Yum will be an extraordinary assetlight business and continue do buybacks. I think its an interesting opportunity because all the passive money will have to sell their shares in yum china. Yum china has an enormous amount of growth prospects. We looked at the footprint in china, theyre in over 1100 cities. I im suggesting over the next couple weeks, when it starts trading on november 1st there will be a lot of force selling which will create an opportunity to buy a Good Business at a good price. Stock now trading at 25. Might have an opportunity to buy that at 22 or 21. We think the stock is worth 35. Its predicated on a bullish view on the yum China Business specifically . Yes. Im actually i was recommending the buy on yum china in particular. There have been problems with yum china and yums operations in china over the last few years, especially with food safety. Its been vulnerable to any sentiment swing we get in the Macro Economic data. One bad export review and yum china seems to suffer. How do you guide through those headwinds . The further aware you get from china, the more bearish you are. Theres Enormous Growth in the eamerica emerging middle class, that middle class is eating out more often. The middle class, whether gdp is 6100 a person, 6500 a person. Theyre underserved by Quick Service restaurants. Theres an enormous runway for yum china to continue to expand the footprint. And they have virtually no competitors in that footprint in china. You think they can win back the trust of the consumers after the safety scares . I think they have been. Margins remain high. Margins in cities are up by 20 . We did our own internal survey last week, the margins remain at 20 . Demand remains well. All those city names, hunan, all those cities that i may not be familiar with, all are massiv y ly underserved. Theres a large runway. Seth, thanks for joining us right after coming off the stage. Seth fischer of Oasis Management from the annual sohn conference from tel aviv. Still to come, the top political stories including Hillary Clinton picking up an endorsement from republican colin powell. 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. Now to the politics news, colin powell says he will be voting for Hillary Clinton. The retired four star general endorsed her at a meeting of a Business Group yesterday praising clintons leadership and experience also going after donald trump for some of his negative comments. He has played an interesting role in the campaign with some hacked emails showing he had some reservations about Hillary Clinton going back to 2014 in private email conversations. Some hints this was coming as well. Yes. Just the latest in the list of distinguished Foreign Policy experts, many of which are republican to endorse Hillary Clinton. More of a no vote i see it as for trump than for clinton. Absolutely. Still the Clinton Campaign welcoming it. Coming up, the top stories, including the full story on apples latest results. And later tonight, dont miss under armour ceo kevin plank joining the half time report. Ew ustomers. Ustomers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for Small Business. Fedex. Did you know your business doesnt have to suffer from slow internet . Comcast business now offers blazing fast internet speeds up to 250 mbps. Over 6 times faster than dsl. Get internet for as low as 59. 95 a month. Call today. Comcast business. Built for business. Did you know sharing wifi with your customers could leave your business exposed . Only comcast business offers wifi pro. Two separate networks one thats private for you, and one thats public for your customers. Upgrade to wifi pro for only 19. 95 a month. Call today. Comcast business. Built for business. Good morning. Apple under pressure. Shares of the tech giant down as the Company Reports its first annual revenue decline in 15 years. New day new test for the markets. Boeing and cocacola before the bell. Well get you ready. And lady gaga as you have never seen her before. Videos going viral. Its wednesday, october 26, 2016, youre watching Worldwide Exchange on cnbc. Good morning. Welcome back to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. Good morning to you from me. Lets check in on the Global Markets. Yesterday we saw about a half percent decline for the nasdaq, a quarter for the dow and s p. Some high profile earnings misses, but probably more beats than misses. Nevertheless the results were declines yesterday. Today were calling it lower, 80 points down for the dow. S p down 9. The s p down 28. Apple shares in the premarket down about 8 . Weighing on sentiment is markets around the world. Europe down for the ftse 100. Similar declines for germany and france. Wti and brent below 50 this morning at certain points. Asian trade, apart from the nikkei, soft, too. Some conversations happening over there about whether the pboc will cut down on credit use taj. Thats hurt stocks in hong kong and china. Oil under pressure. Wti slips below 50 a barrel. 49. 24. Theres some comments and talk from interfax russia that it might not be on board with the cuts in production that was agreed to by opec and other oil members going into a big meeting in november. Brent 50. 08, down 1. 4 . Gas prices down as well. The tenyear treasury note yield, 1. 76, just below that number. Flat. The big economic report of note today, september new home sales. Those numbers expected 10 00 a. M. To drop 1. 5 from august. 7. 6 decline. So a bit of improvement expected on new home sales. Dollar holds its recent highs. The highest level since back in february. Gives a little bit back this morning. The euro at 1. 0924 bouncing around between 1. 08 and 1. 09. The dollar yen, 104. 05. Thats helping the japanese market come back. As for the pound, 1. 22, stronger of a selloff yesterday against the u. S. Dollar. Add it up, the dollar Still Holding strong. To the breaking out, say, to highs of last year, but it is starting to be a head wind again for companies which continue to suffer. Im thinking pe g yesterday knocking three points off the top line. Gold Little Movement in todays session. Gold trading at 1 t. 274. Apple, earnings beating the street bay py a penny. They reported their first decline in annual revenue and profit since 2001. Shares under pressure, down more than 3 . Tim cook sounding upbeat on the call, projecting a return to growth on what he sees as strong sales of the new iphone 7. Thrilled with the customer response to iphone 7 and iphone 7 plus. These are the best iphones weve ever made with break through camera systems, immersive stereo speakers and the best iphone performance and battery life ever thanks to the custom design apple a10 fusion chip. They feature the brightest most colorful iphone displays. Demand continues to outstrip supply. Some people say he was talking about the gorgeous finish of the phones as opposed to whats in them. The reason shares are declining, they are trying to push the fact that Services Revenue increased, which it did, but hardware declined. Iphone, ipad, mac and the iphone watch all saw revenue declines. So the big four hardware categories falling. Yes, services up. But its a small portion of the pie. 13 or so. When you dive into how the hardware performance disappointed, china fell as well. That was meant to be a growth factor. Declined 30 . Its no longer a small part of the pie. Its 19 of overall sales. Yes, theyre trying to say were shifting to be a Services Company, but theyre not there yet. The hardware revenues were declining. Tim cook addressed some of the shortterm concerns. China should come back. Growth in iphones should come back with a Strong Demand. Analysts thinking longer term what is next . What will be the growth driver . Still an iphone company. The average selling price was down. 618 or so. So lower growth. The question is, is it a buy on the next big thing . Will that be an iphone 8 . Will that be television . Questions on the call. A bit of frustration on the sell Side Community on those analyst calls after what was years of them loving this stock, recommending this stock, getting frustrated it wasnt catching up to forecasts. Shares have been strong the last few months. The overall point, can we consider them a Services Company . Three, four years ago, you bought an iphone because of the ios software. Thats why the ecosystem. You could argue youre staying with it because of service. Thats not even a strong argument anymore. Because theyre similar, the different operating systems. Some of the key apps this cl were itunes years ago, that dominated music, now theres spotify, other programs. Theyre all much more similar. To suggested its a software company, its kind of fair but not as fair as it was a few years ago. Though it is an area of growth. Cramer pointed out they deserve respect pomore than theyre getting as a Services Company. Trying to hammer that point. They have a record cash pile. Cook on the call saying theyre open to acquisitions. Did they miss the time warner win . There were reports that they were talking to them. Jeff bukus played that down on squawk box yesterday. They need more content for that. Have they missed the chance . Well see. Thats down about 3 . Its a big factor to keep your eye on. Other stocks to watch, Vertex Pharmaceuticals sales rose 34 , driven by drugs to treat cystic fibrosis. Express scripts reports slightly higher Third Quarter results and narrows guidance for the year. They received subpoenas asking for information about its relationship with Drug Companies charitable foundations and specialty pharmacies. Its up 1 today. Juniper Networks ReportsThird Quarter results that beat estimates. Also forecasting higher than expected Fourth Quarter numbers. Edwards lifesciences reporting Third Quarter revenues that missed due to lower than expected sales of the heart valves, particularly outside the u. S. Down 12 . Weatherford International Posting a huge Third Quarter loss on several charges, excluding items, they also missed forecasts. Down 8 . International Investment Managers are gathering in tel aviv for the sohn conference. Joining us from that conference is alexander freeman. Alexander just came off the stage giving his 12 to 18month view of the global macro environment. Welcome. You say u. S. Stocks are likely to trade sideways or grade higher and underperform other regions. Do you see this as a turning point here for u. S. Stocks versus the rest of the world . I think we have to separate the short and medium term. Shortterm, its a story of politics, theres two scenarios that would be very problematic for the u. S. Markets, either trump winning or clinton winning and sweeping both houses of congress. In either of those scenarios, the risk is to the downside. Assuming the markets priced in a clinton victory, the story is a handoff of Monetary Policy to fiscal policy, specifically should she enact a spending plan. Could fiscal policy pick up the slack if we did see a significant tightening cycle from the fed . Do you just not expect to see the fed tighten in a meaningful way . Well, its a chicken and egg dynamic. The fed wants to see a meaningful infrastructure pending plan given that theres full employment so it can raise rates faster than the market expects. The challenge for clinton, if shes president , entitlement spending accounts for twothirds of the budget, so theres not much latitude left. If the house stays republican, she has to get any plan through the house which will be tough. In terms of overall gdp percentage contribution, maybe half a point of annual kind of contribution would be all we could expect, which is probably not enough to meaningfully change the story. You are more confident in the european political outlook with a few key elections next year and the European Equity market . Or is this a question of valuation, u. S. Versus europe . Yeah. Europe, you have the italian referendum coming up. Elections in france and germany against the brexit uncertainty. So im more excited about europe. Theres a lot of nearterm tail risk associated with those events. Italy is the big one to watch. If we assume that the referendum doesnt pass and renzi is true to his word and steps down, he may be reappointed by the president , if the results are close. In any case, would see uncertainty. So theres probably a series of sideways volatile periods ahead for much of the developed world. Unfortunately were back to the Global Growth story. Theres not a lot of Global Growth. As an investor you are required to look at individual stocks, for example, individual companies and find valuation stories as opposed to the broad rising tide environment which we have seen propel passive instruments. Thank you very much for joining us. Much appreciated. Alexander freedman of gam holding group. Good to get a taste of those ideas out of the sohn conference. Lady gaga joining james corbin for car karaoke. The star who just got her drivers license which she talked about, even got behind the wheel. Look. I want your love i want your love as your revenge oh oh oh im on the edge of glory and im hanging on the moment with you im on the edge with you show him what i got i love that cordon put on the helmet when lady gaga was driving. We have to applaud james corden, how often are we playing clip tclips from that show . Constantly. They go viral me. Cordon wasnt really in time with some of the hand movements. He was a little confused there. I was watching her. I thought she was fantastic. Sticking on the music front. Justin timberlake may have had good intentions when he took this selfie in a voting booth but also play have broken the law. He said he fly from l. A. Flew f tennessee from l. A. To tennessee, but broke the law taking a pick inside a voting booth. I dont think hell get anything. Why should they let him off . They say it was good intentions. He was trying to get people out to vote. A law is a law. It is a statewide law. There are different laws in different states. Such a rebel. In new york, you cant take ballot selfies. I do like to take a selfie, but not if it breaks the law. Marcus lamonis looking for the perfect fan to donate his world seeries tickets to. He found this 92yearold world war ii vet who waited 71 years to see the cubs make it back to the world series. The frontrow seats are estimated to be worth more than 20,000 a piece on the secondary market. Too bad for him the cubs lost last night. But only game one. Only game one. He probably wont have front row seats for all of them. Hopefully he had an enjoyable evening. Still to come, todays must reads, heres a look at what europe is doing in terms of trading this morning. Down about a percent. Were back in a couple minutes. 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 to Worldwide Exchange. Now time for our must read stories catching our attention. My pick in the usa today, five worst political ads of 2016. Heres a taste of it from the usa todays editorial board. Pointing out for one, joe arpaio, the controversial shear rif of arizona wants voters to be afraid of his opponent, former Police Officer paul penzone, so what could be better than an ad that claims penzone assaulted his wife. Things are getting nasty in maricopa county. The charge goes back to an argument that penzone and his wife had 13 years ago, where they both claimed she hit him with a hockey stick, he responded claiming that he pushed her against the wall. No charges were filed. A judge dismissed restraining order attempts. The exwife came out this year saying it was not a big deal. Still it makes its way into the political ads. Highlighting that fights are getting nasty all the way down the ticket. I would say this is nothing different. Also educating me to the point that you guys vote for sheriff. Yeah. All sorts of hyper the head of the police force is a vote. A lot at stake. We are approaching the top of the hour. The team is getting ready for squawk box. Joe kernen has a look at what is coming up. I would ask you what your favorite political ad of the season is, but im scared to find out. You should be. Wilfred, was the sheriff of nottingham was not elected . Do you know . Was he appointed . How did that work . I dont know. That was quite some time ago. We dont have sheriffs anymore. I was surprised that the head of a police force was not appointed. That was all. Maybe its different over there. You know, weve got i dont think we have a single speaking of politics, i dont think we have a single election related guest today. I looked at the list last night, i could see the day coming where that could be the case. So many earnings coming. I was actually happy. We have the ceo of ryder, ceo of southwest airlines, ceo of s santine which is interesting with the obamacare controversy coming out. And we also have also, wilf, have sir andrew i should say sir andrew witty who will be on. I was wondering explain to me, i cannot be sir yo self theres no way. What is the best i can do if the queen really likes me. You can be knighted. You could get a british knighthood, it would have to be something including serious services to britain. Perhaps if you transferred to london and did a lot in the Broadcasting Community for the next decade, you could be knighted for services to british broadcasting. Wow have your work cut out. To be one of the only people on tv that was happy about brexit and actually when it was happening that may be enough i would never be called a sir, would i . You could be. You dont have to be a british national. People who lived and worked there for a long time and achieved a great amount whether in philanthropy or their own field, they can still be knighted. Theres hope. There is hope. But its easier for you, right . Presumably. But im not living and working there. Also not looking very likely. Joe, squawk box starts in nine minutes time. Still to comings more insight on the markets when were joined by chris rupkey from mufg union bank. Mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Welcome back. The euro is firmer this morning, 1. 0921. The dollar at the highest level since february. Joining us now is chris rupkey from mufg union bank. Good morning. Good morning. You have a rosier view on the u. S. Economy. The Economic Data is taking a backseat to earnings and politics now. When does it come back to the forefront . Well, thats interesting. It is almost as if the fed is not address much data dependent. Remember what yellen said in september, its not the economy doing what they want, they just wanted it to run more. In that context people are not going from data point to data point, from gdp to payroll jobs to unemployment claims. The market is squelched here just waiting. You cant say its like a coiled spring getting ready for volatility to explode. Its just very quiet. The fed has put down their heavy boot on the fixed income market, yields are not moving. What about that data yesterday, Consumer Confidence, did that concern you . I wrote that it concerned me. Yeah. It came down, but its still above the average for the year. It is not signaling that the election jitters are getting to the consumer yet. Consumer spending was strong in the second quarter. Nothing wrong yet from that what sort of reads are you getting from the big Earnings Report . We have a lot of multinationals in terms of economic takeaways and the ability for companies to bounce back when it comes to corporate profits. Thats interesting. Especially interesting that Hillary Clintons talking about making corporations come up with some more money to help on the budget. What weve seen with the budget, one reason the budget deficit went out to 587 billion in this fiscal year was the last six months, april through september, corporate earnings were weaker. So, i think were doing okay. You know, the market looks at their earnings, economists look at their measured of earnings, and it looks like on the economist measures with gdp type earnings prof earnings profits that we turned the corner. On friday what do you expect for gdp . 2. 5 . The fomc is bearish on growth. They have 1. 8 , 2 in the next three or four years. So what will the fomc do for november and december . So its between almost everyone is saying december now. Every Single Person on the committee, thank goodness. The battle now is next year between two rate hikes or three rate hikes. Thats how silly it gets. The problem for me is that once we get december, assuming we get it, theyll say nothing until june. Tenyear treasury yields wont go up if we have to wait until june. Except theyre not. They dont give calendar dates, they give other signals like running hot. That running hot, put that back in the oven. Chris rutky, thank you. Mufg union. Thats it for Worldwide Exchange. Thanks for joining us, squawk box is next. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Apple shares under pressure as the tech giant reports its first annual revenue decline in 15 years. Still a big revenue number and expected to ramp up with the iphone 7. Chipotle shares falling after an earnings miss and just little progress in terms of the companys food safety problems that we all are familiar with. And a rough start to the fall classic if youre a cubs fan. The indians dominating the cubs in game one of the world series. Shutout. Its wednesday, october 26, 2016. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Welcome to squawk box. Melissa lee is hanging out with us for the morning. U. S. Equity futures at this hour, red arrows across the board. The dow looking like it would open down 68 points. Nasdaq looking off, 25 points down. The s p 500 would open off about 8 points. Overnight in asia, youre looking at a bit of a mixed picture. Most importantly the hang seng off about 1 . Lets tell you whats going on in europe right now. The other thing there, youre seeing red arrows, keying off of that as well. Oil prices under pressure this morning following a news report that showed a surge in u. S. Crude stocks, a squabble