tv Worldwide Exchange CNBC September 10, 2013 4:00am-6:01am EDT
you're watching "worldwide exchange." i'm ross westgate. your headlines today, trying to keep on track in august, while factories turn out more goods than expected. retail sales move stocks around the globe. peugeot and vw higher at the motor show point to strong demand all help the picture in europe. indian rupee is up. hope for now a trade deficit
lends strength. and president obama is pushed to take military action against syria, the u.s. senate delaying a vote to move to a resolution and polls show public support is fading. >> announcer: you're watching "worldwide exchange," bringing you business news from around the globe. >> all right. warm welcome to you. this is "worldwide exchange" on tuesday. you can see we're firmly weighted to the up side. global equities 9 to nil -- really, 9 to a half. the stoxx 600 up near session highs, it follows the best day in eight weeks, triple digit gains for the first time since august the 1st. the ftse right now down 16 points yesterday. up .75%. the cac 40 up about 1.1%. ftse mib up, as well.
shares in oil, soaring at the open. 14.2% after the neste oil came up with better numbers. peugeot citron opening strongly. the company confirmed its outlook for 2013. on the bond market, take a look at yields. treasury yields going back to that 3% level. 2.9455% is where we stand at the moment, clearly, elevated, as well. gilt yield 3%. on the currency market, the euro remain near its highest level for the first time since asian trade. picking up after that russian proposal on syria. euro/dollar, up to 1.3255. flat on the european session.
and sterling/dollar not far away from the 1.57 mark, as well. china's factories, meanwhile, turned out more goods than expected in august. up more than 10% for the year. that's a 15-year high. and must now say we can expect china's third quarter gdp figure to come in higher than 7.5%. at the same time, chinese shoppers driving demand opened up their wallets in august sending retail sales up 13.4%. that's a business higher than estimated and adds to the growing evidence that chinese growth is rebounding. beijing is strengthening its domestic economy a key priority. for more analysis, we'll speak with francis lun. for now, let's get more reaction on the asian trading day.
sixuan is with us out of singapore. >> hi, ross. the nikkei 225 finished higher by 1.5% thanks to the olympic ewe form ya. we got the latest batch of china data. industrial output, retail sales all beating forecast. the shanghai composite gained over 1% after yesterday's more than 3% surge. south korea's kospi added that 1% as foreign buyers continued to lend support for the 13th straight session. in australia's asx 00, higher by 0.4% while the australian dollar reaches a six-week high helped by the strong business confidence data. some of the asian emerging markets are chalking up very nice gains while their currency gaining ground against the u.s. dollar add tensions around syria update. take a look at top gainers in japan. some of the contractors, steelmakers, and shifters are some of the to top gainers as the olympics rallies continue.
they're very much retail driven. financials also gain ground today helped by the bullish sentiment. over in china, banking shares saw some profit taking today after yesterday's strong surge. some of the china's transportation stocks extended yesterday's strong gains thanks to better economic outlook and also hope of more free trade zones in china. some airlines, shipping companies and railway stocks surged a limit up by 110%. back to you, ross. >> sixuan, thank you. catch you a bit later. president obama will meet senate democrats on capitol hill as he pushes ahead with seeking support for military action against syria, despite admitting that a russian plan could mark a central break through. the assad regime hand over its weapons to the international
community. obama says he could be open to the plan. >> a famous american president once said trust and verify. you have to take it with a grain of salt initially, but between the statements that we saw from the russians, the statement today from the syrians, this represents a potentially positive development and my preference consistently has been a diplomatic resolution to this problem. >> it may take different forms. direct and indirect. direct when people want to retaliate our government and indirect when you're going to have instability and the spread of terrorism all over the region that will influence the risks. >> obama spobdz to that threat saying he is confident assad
does not have the ability to go to war with the united states. >> first of all, syria doesn't have significant capabilities to go to war against us. iran does. but iran is not going to risk a war against the united states over this. particularly that our goal is to make sure chemical weapons are not used on children. so it is very unlikely we would see the kinds of retaliation that would have a significant impact on u.s. interests in the region. >> joining us for more is our correspondent hadley gamble. we have a delay in the senate vote. some more uncertainty, really? >> continued uncertainty, i would suppose you could say. the president is basically saying the military, there's no military threat from iran. but we're not really talking about a military threat and we never have been when we're talking about hezbollah and what's happening in syria. we're talking about potential terrorist attacks. and, of course, for the u.s., that's always going to be a big
threat and a big problem. so the president is not really skewing that and addressing that. the president has been, you know, using his political capital, extending his political capital on the hill and he's not getting very far. he's already said he's not confident he's going to get those on votes. as well, i think 33% of the u.s. says we shouldn't take action against syria at this point. >> yes. that's if they know where syria is. >> that, too. >> i'm not trying to be glum about that. you about it's a very far away place. >> this is a complex issue and it's difficult for everyone to understand what in the world we're expecting to achieve by these strikes. the obama administration trying to frame it as part of a broader picture punishing countries that use chemical weapons. but really, it would be getting involved in sectarian conflict. and no one really wants to get involved. >> it will be interesting
whether the president on all the other issues he has to face. >> exactly. and he is, as you say -- >> he's threading water at this point, especially on capitol hill. he's been out there talking to senators, he's been talking to congressmen, but even overnight, i was looking at news from my home taip state of tennessee and one of the senators came out and said no, we can't support this because the support from the american public is not there. >> has anybody we spoke to said there might be something in this? >> obama said he had spoke been this possibility, as well. what you have to remember is the idea of going into a war-torn country and finding massive stockpiles of chemical weapons and being able to get them out in a timely manner is questionable. we're talking about another couple of weeks before that could even be achieved. >> yeah. still, if anybody could, one
would think the russians could. >> one would think. but we're going to have to see how this plays out because of the feasibility of getting this done and getting this done in a timely manner is going to be the key. >> meanwhile, how is the rest of the region feeling as this thing drags on and on? >> we see a bit of a boost in the stock markets. i think there was a panic sell-off over the last couple of weeks. even though these things are happening in syria, you're not seeing that. you're seeing a knock on effect in the region just out of panic. but we're seeing a bit of a boost today, so i think that everyone is pleased that we've still got a couple of days, a couple of weeks of international -- you know, going back and forth. congress still has to vote, they've delayed that vote and it's going to take a while. >> meanwhile, the humanitarian crisis in syria, the refugee crisis is enormous. >> and the knock on effect in
turkey, lebanon, and jordan is a big problem. but this has been going on for two years before we finally decided this is a problem. they have a worry over what kind of western isn'ter vengz it would be and what would it look like? are we talking about another iraq? >> thank you very much. president obama will address the nation tonight on cnbc, as well. that's at 2100 eastern time, 3:00 a.m. cet. as we were mentioning, another set of chinese data suggesting the economy can avoid a hard landing. both beat consensus forecast. and joins us for a little bit more. francis, thanks very much indeed for joining us. is there an indication here that some of the recoveries we've seen in the oecd are feeding back into china? >> definitely, especially the recovery in the europe and
america and have those extended demanding export from china and that move all the way down to the production chain, factory production is up 10.4% for the month of all. i think the economy bottom in the second quarter and decided to pick up in the third quarter. and the good thing about it is the inflation is still in check according to the latest figures. inflation is up 2.6%. and furthermore, ppi actually stopped falling. the august figure for ppi producer price index is up .01% from july. so i think that shows industrial demand. so taking all the figures together, you can say what the
firm did that china's economy is back on the growth phase now. >> yeah. how much more confidence would this give the government to get to grips with nonperforming loans and the banking sector, as well? >> yeah, definitely that will give the government more room to maneuver. i think with inflation in check, the government can move to ease some liquidity, like reduce the deposit reserve ratio or cut interest rates trying to boost the economy. at the same time, they can try to reign in the property loans and then also the local government loans that really causing headache because they've been really overblown.
irng the development gives the government room to maneuver and they give the government some room to reign in the real bubble. >> yeah. they have to reign in some of the state loans, as well, some of the state companies. >> yeah, definitely. >> i mean, is that on its own -- because they have a deal with these jurntd lying problems. is that on its own next year going to reduce growth a little bit? >> well, yes. i think that the government -- what the government will not do is repeat the mistakes of 2009, trying to launch a multi trillion infrastructure program by investing huge amounts of infrastructure, but debt actually will happen in 2009. it results in something like 2
trillion yuan of local government debt. and most of it, it becomes nonperforming, actually, in the past year. the government extends the maturity of these loans by three years. they do have to classify this as nonperforming, but actually they are already nonperforming. i think the problem for the next few years is that how on to get these nonperforming loans off the books of the commercial banks. and i think the central government will have to form some investment vehicles to take those loans off the books. >> thanks for that, francis, good to see you. and don't forget, tune into cnbc, we'll bring you coverage of the world economic forum meeting from tomorrow with bernie lowe and eunice une.
french unions are threatening to cause transport issues. can the french president handle the pressure? we'll discuss that from paris in around 10 minutes. the rupee has risen to its highest level in two weeks. is that rally sustainable? more on that at 10:35 cet. and we'll discuss the future of norway's multibillion dollar sovereign wealth fund. the country's central right is blocking. what does it mean for the world's biggest? [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] ...office space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan.
>> thanks very much, indeed, ross. you mentioned those audi figures. pretty unique i would suggest in mainstream manufacturers. to get those kind of sales volume despite everything happening in europe is pretty impressive. rupert, thank you very much indeed for joining us. look, we know the asian u.s. is going fairly well. a flat performance in europe. would you consider that a success? >> we see a lot of south european markets are still suffering. italy, spain, we had the worst august ever. trans france is week, germany is weak. uk is performing quite well. we are quite happy with the performance in europe, absolutely. >> a lot of u.s. manufacturers have now proven on lower volumes they can make more money than they did before the crisis, as well. can audi, a current volume, make money out of the ierpan market? >> we do so. and if you see the first quarter
and the second quarter results, we had been really head on head to bmw, better than mercedes. so we are quite optimistic and we will see. so the best part for this year is 1.5 million. we will surpass that figure. so audi is growing and this makes us happy. >> so why do you think so many european car manufacturers are so many brands are running below utilization of those factories where they can make money and continue to do so five years into this crisis? >> you know, i cannot explain that one. i like to have good liquidity, positive cash flow, performing factories and this is what an entrepreneur is looking for. and i know that for some european brands, it's really difficult to operate. >> what about this asia and north america story? you can break it down if you'd like, as well. but double digit growth, stunning growth coming out of those regions.
what do you put behind it? >> you know we are in china, partnered since more than 25 years. so we invested very early. we stick to the chinese market, even as the numbers had been very, very low and now we have performing. good partnership, joint venture partnership, and we brought a lot of product to the local production. when we look to the u.s., i would say that audi, in the last five years, did a great job in terms of brand positioning, getting more of -- putting it right things to the market and the product is really fine. >> in the u.s., it's about what audi did itself, but is it also about what support consumer had for the government, support that perhaps a european consumer hasn't had? >> i don't think so. the united states, the market in the u.s. is growing and growing since some years. and audi is participating in that growth pattern. we are over that growth pattern. so we are working for more than
150,000 cars per year and we see a lot of operating potential for audi in the u.s. >> we've got a hybrid here, yeah? >> yeah. >> a plug-in hybrid. my problem with electric vehicles in this generation isn't what's there, it's what's here. the plug-in points. the infrastructure for a big rollout of vehicles, it's not there in europe, is it? isn't this a major bar? you know, we did a lot of customer research and we did a lot of research about infrastructure. finally, we decided to go for the strategy. what does it mean? when you are in the city, you have to drive electrically, co2 emission neutral. but when you are going out of the city, you would like to have range, range, range, because somehow there is mission a certain infrastructure. and this was the basic decision by audi said we are going for that concept. so you have the best worlds, the
best issues of two worlds. >> now, look, you're doing very well at audi, you're enjoying your job at audi, but there was an article in the times looking at financial success. did you see the article? do you see yourself as a challenger for the top job at volkswagen? >> i haven't read that. >> your name was there, sir. >> really? i'll have to google it. >> one more quick question, my colleague, ross westgate in the studio, if he were looking for a new audi, which would you recommend for him? he's young, dapper looking chap. >> rs-7. i can only recommend bentley racing green color and a nice brown leather in the superior. >> did you get that, ross? racing green, brown leather interior rs-7 from the man himself. 560 horsepower. can you handle it, ross? >> i still prefer an astin in
racing green. >> i can't tell you what he said, but it had something to the with aston martin. >> you asked the question, right? you asked the question. >> audi is a very nice car. >> i'll take the rs-7. how about that? >> that would be good competition. anyway, for more on the auto show including on the report on why carmakers are plugging into electric and hybrid models, plug into cnbc.com and follow us on twitter, @cnbcworld. what would you like your car to do? i don't think we mean would you like it to fry an egg. if you'd like to join the conversation, get in touch with us. firstname.lastname@example.org, tweet us, as well. fairly open-ended question.
meanwhile, back to politics, sylvia berlusconi has warned his party may pull out of the shaky coalition government if they decide to delay a vote ousting him from his position after his tax conviction. controversial reform ames to reduce the country's pension deficit. stephane has more for us from paris. he put himself in this hole, anyway, but cutting the retirement age. anyway, you can claw it backwards by extending, you know, the period for which you have to work with, the point at which you have to start working from. >> contribution, yeah. >> exactly. you know, look, everybody else in every part of the world has
got to do this. >> yeah. the result is the same. you don't change the legal age of retirement, but in the end, we raising the number of years you need to contribute to get a full pension, it means that french people will have to work more to get a full pension. so that's the bottom line. however, francois hollande was intelligent enough to start negotiations with unions before presenting officially this pension reform. as a result, he was able to support some sort of agreement between the trade regions. that's the reason why they're expecting some massive demonstrations, nothing compared to what we've seen in france two years ago when they implemented the reform without trade negotiations. actually, the main problem was for the government will not come from the street, but may come from brussels as the commission remains cautious about this pension reform. speaking to the ceo this morning, ollie rhen, the
european commissioners is calling it re foform ala french. it's going to increase the cost of labor and, therefore, it will deteriorate even further the french competitiveness. as part of this reform, the government is expected to announce a mechanism to compensate for the companies. but it's not clear yet how it's going to make it and where will the money come from? it's extremely important for france to protect its competitiveness and he told the ceo that he had a very -- the very clear discussion with the finance minister at the last g-20 meeting. >> all right. stephane, we'll follow that. thank you for now. still to come as well on the show, how is gm dealing with the difficult economic market in europe? steve will be back from frankfurt.
turn out more goods than expected and retail sales hold up as they boost stocks around the globe. >> autos revved up in europe. carmaker executives pointed to strong demand driven by emerging markets, plus finally an improving picture in europe. and the indian rupee firms up its equity in mumbai. president obama has pushed to take military action against is he syria as a detour as the u.s. senate moves to delay vote on a resolution and polls show public support fading. we have triple digit gains for the u.s. yesterday. further down since august the 1st. that helped asian market. european markets following suit. right now, ftse 1 you know is up 0.8%. 1.5% higher for the xetra dax. cac 40 and ftse mib up 1.2% and
0.72% respectively. ten-year gilts are on it. bund yields just on the 2% mark. on the currency markets, euro/dollar, dollar/yen still on the 100. euro/dollar, 1.3252. sterling/dollar, 1.57. verizon has unveiled details about its bond offering to help finance its $130 billion purchase for the rest of ver rideson wireless from vodafone. price sg expected tomorrow. verizon will sell both floating and fixed rate debt which will range in maturity from three to 50 years. this is according to initial price suggestions. verizon stocks, pretty flat in frankfurt. at least three of microsoft's top 20 investors have reported the urge to turn
around replace steve fulmer. mulally shot down rumors last week saying he's focused at serving on ford. the special board management has been meeting with the committee since balmer announced he would be leaving within a year. microsoft up 0.75% in frankfurt. and the mystery will be revealed today as apple holds its event at its headquarters. the company is expected to unveil the i iphone 5s but will have a better processor and better camera. apple is likely to show off a cheaper iphone 5c which might come with plastic casing in several colors and is aimed at the lower end of the smartphone market. apple has a final version of ios
7 and could pull out other prices such as the mini or apple ct. now apple is unveiling a replacement iphone and it's highly anticipated on the stock market. electronic companies supply parts they're hoping the feel-good factor will continue. hi, toshiko. >> hi, ross. shares of japanese electronics parts supplier of apple are trading higher today. investors bought shares on hoping demands for parts will increase. alps electric rose almost 5%. murata mring up 2% and hirose electric up 1.4%. japanese media is reporting that the country's biggest wireless
carrier will start selling iphones for the first time. the company will likely make an official announcement tomorrow. this will make the nation's top three carriers which carry iphones which is waging expectations for apple. shares rose today, up 1.6% been apple will hoet hold a satellite event in japan tomorrow, as well, as 10:00 a.m. local time. general motors has announced to cut its hybrid model in germany despite feeling more confident about a difficult european market. they've used the launch of the frankfurt auto show to attack what he believes is stopping carmakeres from agreeing on a new eu carbonite target. let's get back to steve for more. hi, steve. >> ross, i'll tell you, i needed a car. i've just come from audi. i'm here at opal. and it is not that close. you may think it's a big of a
lad a laggard, but i think i need to get my running shoes on. nice to see you. how are you? >> good morning, steven. >> things are better than when we last spoke in geneva. >> we stabilized. we got in sth this very competitive shrinking market. we could defend our position and keep our market share. it is due to success and it is due to our new products. >> it's down to product and it's down to aggressive cost management, efficiency savings, as well, and getting the right workforce at the right price. if there was a scale of 1 to 100 in terms of how far down the line you are in terms of those efficiencies, how far are you, sir? >> i think with the efficiencies we've made a lot of progress. we closed one plant in germany. we are filling another one. but it's just a start.
but besides savings, it's important to turn around the top line. we need to sell more cars. >> but what gm has done incredibly successfully in the united states along with the other detroit players, is they have managed to get profitable at lower sales volumes, as well. that's something that you've had to try and do, as well, isn't it? >> yes. but it's also very important. gm is going to invest $5 billion into us which allows you to come up with a product offensive of 23 new cars, 13 new engines, and we're launching here the new insignia, which is very important for us. and it comes with one of the new diesel engineses and that means it's benchmark in its class. >> this is very interesting. you with the insignia, ford, as well, and i spoke with citron's boss, as well. everybody is moving upscale. isn't that strange that in a
cash-stramd europe, it's premium product that a lot of automakers are turning to. >> we have to get to the product. we do this with the adam, adam was extremely successful, more than 50,000 customers. so everyone has to try to emotionalize and get the brands in front. >> so you just mentioned this car. let's have a look at it. what is it about these concept cars? that's never going to be built, is it? >> well, i don't know. but it's an auto to dream of. >> what's the point of the concept cars for the reality of the real world? >> this represents everything we stand for. expressive design and the interior, it's all new, it's all networked, it's all display. also the engines, it's a three cylinder engine plus an electric engine. >> it looks absolutely fantastic, sir, but in terms of
profitability, let's get back to that. you've reached stabilization. is this going to last or is it stabilization that leads to growth and profitability anytime soon? >> that's, of course, our plan, our drive 2022 initiative. we're talking about cost reduction, but it's also talking about investing into a new product. we stabilize, first step. now we want to grow. also, we are keeping on reducing the costs while we do. so we are confident by 2016 we will we in the black figures again. >> i think western europe has taken out 3 million units of production. this is the industry as a whole. is that trend going to continue? western europe is going to make less and less cars, eastern and central europe and places like turkey more cars? >> it's of course an important trend and we will try to fill our factories in eastern europe. but on the other hand, we have a
responsibility. we can't just close factories. we can do this very limited and we have to find way toes fill the factories. and we do though big bringing product here. >> and in terms of what the governments can do, as well, are they doing anyway near enough to get consumerses to go out and spend. >> what we should call for is cars shouldn't become too expensive. and they do if we always make new regulation about co2 requirements, safety requirements. >> speed limits? >> speed limits i don't like personally, but our cars are fun to drive even at lower speeds. >> does it matter who is chancellor of germany? >> we want stable conditions, conditions that we can blend for so werchb who to speak to in the foourch. >> things are turning around since geneva.
dr. karl thomas neumann. >> i thought that was a coffee, and then i realized it was spelled with two ks, right? >> mokkah is a coffee, but it's a car, as well nap is a great looking car. me, my little car in the car park, you in one of those, i can see it, ross. >> yeah, we'll see. we'll see what happens, steve. i like the gold wings on that one, though. that's good. >> how many of those have you got, of those concepts? >> one. >> it's a one off car. >> the parts might be a bit tricky. >> it has l.e.d. beamers, as well, ross. the car, ross, the car. >> i don't know what l.e.d. beamers are.
anyway, steve, herr in the umann, thank you very much. >> steve is going to run off to another part of the show. meanwhile, james bond's submarine latest model from the film spy that loved me has been sold for $550,000 bounds at auction. sth a car that turned into a submarine, had missiles coming out of it, as well. what would you like your car to do? any special featured you would want? get in touch with us. direct to me at rg rg. @rosswestgate. hyundai union has agreed to a wage deal ending labor strikes. hyundai's workers have been on partial strike that resulted in 900 million in lost output for the automaker. india's sales are up in august. it's the first time in ten
months. industry figures show indians bought 15% more cars than a year ago. truck and bus scales have skidded, they're still down by more than 20%. some good flus for the rupee. expectation of double digit export growth in europe. thief risen for four consecutive sessi sessions aimed at propping up the currency. nigel from tv-18 joins us from mumbai with more. hi, nigel. >> hi. it was a fantastic afternoon in mumbai because our markets are running at the high point of the nifty as well as the sensex. sensex is approaching that 20,000 odd mark while the nifty is heading towards 18,000. the rupee came from the 68.80 that it hit.
but the big data point out coming out is in the next 10 minutes. this would be a nearly 30% cut on a month and month basis. so that's the big starting point. even the other couple of order stocks are up, as well. itc is really leading the pack. the bank is up nearly around 15% the last two trading sessions. what did i tell you after the big break that we did have? it's gained another 2% leading the gains in today's session. all of them flying away into these session sessions maybe th some kind of pes nimp creaming in. all in all, it's a very good afternoon in mumbai. nifty and sensex flying away. now all eyes would be on the trade deficit data that would be out in the next 20 minutes
expected at around $10 million. >> thanks for that, nigel. joining us now is michael gaska. good to see you. thanks for coming in. do you think there is now a flaw under the reap oou with the new govern coming in? >> for the time being. i think it's also the global environment that syria seems to be on hold. in order to tapering, maybe it's going to be delayed. india is one of the current account deficit countries that had suffered over the last week. so it's not so much ito sin accuratic. it's more a general environment theme and global risk appetite. >> the bigger question here is whether we think it appreciates down or not.
>> current account companies are selling. when we see a pick up in exports, that is clearly supported for the currency, in addition to that, the simple thing is being more clear about what we want to achieve. so inflation expectation targeting and not so much trying to really manipulate the currency, then that's a positive environment and should stabilize the indian rupee. >> so that, i mean, presuming the trade deficit data that is coming out in 10 or 20 minutes is going to be very key. >> and clierl in asia now we see that china is stabilizing, so it should be good for the sector. >> china is stabilizing because it's -- because the west is doing all the best because europe has recovered slightly, as well. it's a big market for it. >> euro basically bottomed out. the u.s. is growing 2%, 257%, but the global picture is looking better. that's all the good for china and clearly aut good for -- >> i mean, they clearly affect
the vulnerabilities you say in a number of emerging market economies. if we get an announcement and it just goes light, i think the general survey says 10 billion is sort of an average. if we do start with 10 billion and we start getting into this, will it fact of it be better, as well? it will be better. we think 10 to 15 billion and then there's more clarity. and the treasury curve should stabilize according to debt that would imply that now investors stop with relative value and they will see that countries like india from a currency perspective and other emerging markets from a local market perspective are a very good value. so it would be positive. >> you talk about the markets. ged was up 4.4% on the quarter, well above expectations. speaking with our affiliate, the turkish economic minister said he expects gdp to expand between
4.5% and 4% this year. where are they -- how are investors viewling it now, do you think? >> our forecast is 4% to 4.2% growth. one of the country's current account deficits technically in the middle east. so investors are quite nervous about turkey. but also here, probably the currency reaction was overdone and also the reaction in the local market site. so investors being on a very bearish move offers some value going forward. aus mentioned, it's quite on auto talks, monetary approach, and that didn't help very much. >> is it worth investors -- in the emerging markets or is that too dangerous? >> it is a decent strategy.
understand what you're buying. but then you wait too long and you can't time the markets perfectly. you should be aware and invest now. once more, you have to be selective. it will not be environment where the emerging market is rallying across the board. it's more about the specific stories. and if policymakers did really wake up and do the right thing. and turkey is one good example. central bank has to be more credible and more clear what they want to achieve. >> good to see you. thanks so much for coming. and still to come on today's show, they prepare to welcome a new conservative government. questions remain over the future of the country's $750 billion oil fund. find out what could be in store for the world's biggest sovereign wealth fund after the break. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you
nice to see you. norway's fund is the biggest investment fund in the world, right? >> yes, it is the biggest quite some way. and the nearest you'll get is something like -- depending on the figures you use, i would say the chinese fund at 526 billion is the nearest figure. 750 give or take, depending, yeah. >> and that presumably is the problem, isn't it? is it just too big for its own good? when you're that size, you are the market, wherever you invest in. >> when you own 1.25% of every liquid stock globally and 2.5% of european listed stocks, you end up turning into a big index. ultimately, it's very, very difficult for them to find out and they are slightly strung by the fact it takes them a very, very long time to go through the political process to invest in new asset classes. it took them four years to move from proposel to invest in real estate to make their first
investment. it's difficult for them to use their position as a long-term investor to take that through parliament. >> so the parliament has ultimate control over what they invest in. if they broaden dollars the mandate and just gave someone to report back to them, one would think that might be a slightly easier way to do it. >> i think in norway, there's very strong democratic feelings here. >> what if they hired warren buffett to come and run it? >> that's very, very risk averse. >> so is warren. >> when eve gout to pure zeed politicians, you say we want to increase the risk, there's always resistance to that. so you -- there is a process of persuasion. and certainly mbim -- >> but clearly they're
underperforming. is that a -- how big a deal is that in norway? >> mbim, who run the fund, you know, have been pushing to try and invest in infrastructure, for example, which would be a really great thing for them to invest in. but they then have to go and persuade parliament that that is a good thing to do. >> yeah. what sort of infrastructure? they could do anything, presumably. what things do you have in mind when you say investing in infrastructure? >> most sovereign funds investing in infrastructure, has done mature monopoly type as es, gas pipelines in europe, the abu dhabi investment authority, water in the uk, china, abu dhabi again with assets in the uk. they could do that to start with. greenfield infrastructure. but they're still trying to find the right vehicle for them to
reduce the risk at the kind of early stage and then allow the sovereign funds to take the less risk long-term returns going forward. >> so we'll see what happens. who is the best performing sovereign wealth fund? who has it right? >> in terms of return, so much funds are very -- i suspect that most people would say that gid is the most professional sovereign fund. >> victoria, thanks for coming in and joining us from the sovereign wealth center. we'll take a short break. still to come, we'll bring you the latest as president obama prepares to address the nation later today to make his case for u.s. military understander vengz in syria. the second half hour of "worldwide exchange" right after this.
this is "worldwide exchange." i'm ross westgate. here are your headlines from around the world. china keeps its growth recovery on track. the factories turn out more goods than expected. retail sales holding up. the data helping to boost equities further. auto stocks are up, as well, in europe. peugeot is leading the way. talking about strong demands driven by emerging markets. we've got finally an improving picture in europe. >> the race is open. we have an advance. we are today the leader. i have no doubt on the fact that electric cars are going to
represent a very important segment of this industry. >> president obama is posed to take military action in syria is on a detour. the u.s. senate delays a vote and polls show public support fading. plus, we find out today what the next big thing is for apple as the company gets set to take the new of two iphone models. and if you've just joined us stateside, sea good morning to you. the dow having the best day in eight weeks, best triple digit gains since august the 1st. we're going to open higher again, currently some 50 points above fair value. the nasdaq is some 12 points above fair value. the s&p at the moment is about 6
months above fair value after a five-day winning streak. european equities, which were down yesterday, following suit right now on the session. it was down 16 points yesterday. durnt currently up 50 points. 0.75%. all these stocks helping the german market paris up about 11.08%. the ftse mib up about 0.5%. treasury yields moving further away from that 3% mark. currently 2.93%. ten-year gilt yield around the 3% mark, as well. sterling still above 1.57, just about against the dollar today. mean while, china's factory churned out more goods than expected in august. up more than 10% on the year. that's a 15-month high helped by stronger demand from recovering equities in the u.s. and europe. analysts now say we can expect china's third quarter gdp figure to come in higher.
beijing has made strengthening the domestic economy a priority. sixuan has more on that from singapore. >> thank you, ross. a very positive session in asia. the nikkei 225 finished higher by 1.5% thanks to the olympics euphoria. china's shares climbed to the highest level since augustry tail sales beat forecast. australia gained about 0.4%. helped by this strong business confidence data at home. and some asian emerging markets chalking up very nice gains with more than 3% after tensions around syria update. in japan, contractors, steelmakers and some shippers are some of the top gainers as the olympics rally continues.
financials gained ground helped by the bullish sentiment. over in china, banking shares saw some profit taking after yesterday's surge. it refuted market rumors about being among the first batch to issue preferred shares. but china's trpt transportation sector continued its strong urge thanks to the better than expected economic outlook and help with more free trade zone in china. some shipping companies and railway stocks surged a limit up by 10%. there was a big u-turn in yesterday's trade for esprit holdings. it ended down by over 7% to an almost two-month low after the clothing retailer reported a deeper than expected on an july loss for the year sending in june. >> all right, thanks for that. that's the update from asia.
president obama is still on the fence about taking action against syria without congressional approval. the president says he's also not certain we can whip a vote on the resolution towards using force. he's set to meet with senate democrats and republicans today before giving a televised address to the american people this evening. the president says the russian proposal is a potentially above development. >> a famous american president once said trust and verify. you have to take it with a grain of salt nationally, but between the statements that we saw from the russians, the statement today from the syrians, this represents a officially positive development and my preference consistently has been a diplomatic resolution to this problem. >> senate majority leader harry reid has consulted with the
president, senate democrats and republican leaders. while he says he has the 60 votes needed to move to debate, this isn't a race. he wants to see how things play out. the nbc "wall street journal" poll finds 33% of americans should approve president obama's request. less than 25% believe military action is in the national interest. only a third say the president has made a convincing case. nearly 75% say the country should focus on domestic problems instead of promoting democracy elsewhere. president obama will traes the nation in prime time tonight at 9:00 p.m. eastern. you'll be able to watching that here on cnbc.
hadley gamble is joining us now. >> wee seen from the syrian opposition, they say this is a political maneuver on the parts of the government of syria and the government of russia, as well. for them, this is much more about we need western intervention, we've been asking for western intervention for two years. but the west really doesn't want to get involved here. we went from a small three-day strike to a military barrage. people are asking the question which is how big will this intervention be? for the obama administration in particular, sth a god send. it gives them a few more days, it gives them a few more days on capitol hill and it gives the international community a way
out. >> yeah. how does this -- does this give obama a way out from his red line? >> i think it certainly gives him some time on the red line. he's been treading water over the last couple of weeks, as you can see, but also when you talk about this as a real feasible plan, you have to evaluate how easy it would be to actually go into a war torn country. this is a country in the middle of a civil war. how easy would it be to go in there and remove these chemical weapons? how would we know that we got all of them? lots of questions. >> i wonder what they're thinking about this in iran. >> i think certainly that they've been gauging public opinion in the united states, they've been watching how this has been playing in the media and the more time they can gain, the better. >> thanks so much, indeed, for that. coming up, feeling the economy, the rumors continue to fly about what apple may have up its sleeves today the. we'll try and separate fact from fiction if we can right after
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what should we expect? >> big day for apple ceo tim cook and the iphone with the company's reputation for innovation on the line. apple watchers expect to see two iphones, a high end iphone 5s and a more accordable and colorful 5c which might help extend apple's market share. >> in the platform game, market share is important. you have to have high unit volume in order to get the best developers, ultimately. i think it really does matter. so i think it would be really good for apple and really good for the industry if their market share went up. analysts expect the 5c to come in five colors. yellow, red, blue, green and white. the big question is pricing. what's unclear, will the new 5c replace the iphone 5 or will it replace the lower end 4s? it's an important question because there's a balance involved. price the 5/c too high with b people will say it's too expensive for emerging markets.
whichever way apple goes, it's sure to have an impact on the second tier of smartphonemakers, including blackberry and nokia. >> so in partnership with microsoft to combat samsung, to combat apple, feels like a good place. if you take a look t android market right now and the other place in the android market environment, it's a tough slog. >> apple hops to make it an even tougher slog for competitors after this announcement. we'll see if they pull it off. back to you. >> that was john with a look there. meanwhile, let's take a look at nestle oil sales. the finish refiner has updated its profit guide. joining us on the now on the phone for an exclusive from helsinki is mr. makikala.
you make this from animal fat and palm oil. what is happening with demand? >> the market are very strong. i think that's one of the reasons why we have made this release today about better views for the rest of the year as a whole. and i think that the market, both in europe and also in north america, they are today very strong. >> wa do you think is driving that sdrengt? >> i think there are many, many reasons, especially the issue is some of the low price ed priced in europe and on north america, they have their mandate toes fill with the biofuel, either ethanol or these that what we are doing, it's renewable. so it has positive effects on
both sides of the ocean. i think that's what we're seeing in our figures, as well. >> the renewables business, it only turned profitable in the first quarter of this year. is it going to stay profitable? this is a volatile business that analysts find difficult to price. >> you are absolutely right. it is a volatile business overall. what we have stated in our release, we are seeing exceptionally good market conditions. it is a stable business going forward and i think that is also why we have university and 1.5 billion in four years, of course. so that is -- we believe strongly in this business and we are on the right track. >> yeah, what about the nonrenewables side? >> it is a very stable, solid business, what we are doing basically here in the scandinavian area. and i think that is what we see taking place this year, as well.
so no big news in that sense. >> okay. yeah, so look, you made -- you know, when you started the renewable business, you made big investments. you said it would take time to read the rewards. maybe we're just seeing that right now. what is -- what more investments? how do you see that business developing? >> i think overall, in our renewable fields where we are -- the capacity is roughly $2.7 million and oil capacity is $2 million worth, we are duly a global leader in that sense. so we will see going forward how all these mandates in usa and how all they developed in europe will go. and then we as a company need to do the right decisions going forward, as well. >> okay. thanks very much indeed for join onning us. it's good to have you here on cnbc. if you're just joining us this morning, a recap of the hels, better than expected industrial
the french foreign minister is having a news conference on syria, as you can see. we'll update you on any comments we get from that. right now, though, time to talk autos. well, carmakers around the world are pinning their hopes on electric models. the early adapgzs have found charging infrastructure is not kicked up with their development of electric technology. we'll get over to frankfurt fairly shortly. steve will be there with us. it's worth talking about mr. fabis, who is speaking there, saying they're going to propose a chapter 11 resolution on syria positive can a security
california. there will suggest dismantling the syrian weapons stockpile. this follows on from the russian proposal talking about going and taking away the chemical weapons. and it would also, this resolution, propose those behind the august 21st attack be tried. so france is proposing a resolution to the u.n. security council. that resolution would propose dismantling the syrian chemical weapons stockpile and it would propose those behind the august 21st attack be tried. we've got the latest data out of india, as well. trade data, very important. $37 billion. the exports $26 billion. august ex sports, the result is coming in at 10.9 billion, which is the sort of figure we were looking for. the golden ports are going down consistently. the rupee, of course, moving
away from that high that we had around 70 against the u.s. dollar. and we are down over a two-week low at the moment. in the film spy who loved me has been sold for $550,000 we've been asking you, what would you like your car to do? any special features? email@example.com, tweet @cnbcwex or direct to me, @rosswestgate. meanwhile, as we wait to get out to steve, he's been speak, carlos. >> electric cars are taking a little bit more time. not the car itself, but because
the charging infrastructure is a little bit slow. today, lots of people interesting in buying an electric car are worried about how they're going to charge the car. you know, if they don't have a house or if they are in an apartment, they are wondering how they can, in an easy and simple way. but it's coming. a lot of cities are now engaged. a lot of car manufacturers are engaged. i heard this morning one of our main competitors in europe are saying they want to become the number one maker of electric cars by 2014. so the race is open. i have no doubt on the fact that electric cars are going to represent a very important segment of this industry. but you think pure ev at the moment can work? >> pure ev is part of the technology on which the industry will be countsing for the future
development. we are the first stockers, we are the pie your nears. we are today by far the largest producer and seller of ev. but competition is coming. so far, they have been silent because they didn't have the product, they didn't have the technology, and i can tell you there are going to be lots of competition, there are going to be lots of offer because the world is going toe be another record year for the car industry. more than 83 million cars. you cannot afford just to rely on gasoline engines? >> but maybe then we need more gasoline subsidies. i was looking at the bmws, the new versions there, the electric cars, they are so expensive for that questionable charge that you mentioned. >> let me tell you, some are expensive because they are intrinsically because of the way it's done, expense i. some technology res expensive. the electric car is not fundamentally more expensive than the combustion engine car. it's just because the scale is
not there. we have been -- we sold 1100,000 cars. at the same time, we were telling 8.5 million gasoline engines. so there is -- you know, we need to boost the volume in order for electric car to be competitive. everybody is convinced it's part of the future. >> when is europe going to pick up? you see some of your colleagues in the industry, that europe is going to take longer. >> all the markets are going to be up, particularly japan, primarily if the prime minister decides to increase the value added tax. but even europe is going to be up. we're counting around 1%. but, you know, after four years, five years, we're very happy to
see the first rebound in europe. i don't think it's going to be strong yet. it may take some time because you need the consumer to have confidence. and all the efforts were going to be delivering results. >> steve talking to carlos scone. and he joins us now. are you comfortable? i'm having a sit down, ross. have you been to this show before? it's absolutely -- so i'll tell you, normally, you know what it's like. off camera point and you have to go. here you run from hole to hole. it's absolutely shattered. no one gave me a car for the pleasure, either. come back to bmw, actually. one of their big launches is the i-3. this is the electric vehicle and they think this is absolutely the right car from this moment in time. you heard there from carlos gohn how tough this market has been and how much money renaught has been putting into it, as well.
it's not a sure five fire bet for the guys who are putting their money into electric. of course they're putting their money in premium because a lot of people believe it's galvanizing new car push chass in europe. partly because we had massive unemployme unemployment. we've got the i-3 coming through. this is a little racetrack here. it's quite swanky. this is one hole here. 11 holes we've been going through plus the outside fans. i can tell you, absolutely. but that i-3 on their racetrack going through here. i guess they must be spending a couple on the set. don't you think? quite extraordinary. >> amazing, steve. why haven't you got some automotive piece of equipment to help you run around? >> i've got a producer who -- one of your producers, she's leading him by the collar, just dragging me from hole to hole. that's all i need.
>> and i think we should tell everybody about the forecast in case they were wondering. >> we don't have to tell them everything. >> steve, this is a huge overpass, of course. they're all talking it up today. what is the real story here? >> i think so. look at this. there's 160 main european car parts, right? 160. of those, 60% are running below 75%. the capacity is 1100%. they're running below 75% of that. that 75% is seen as the break even point. half of europe's car plants are still running below the break even. if it's not 1100, only about 42 are running about 75%, as well. you can see the magnitude of the
problem. we haven't taken out anywhere near the capacity of the united states. we're bumping along at about 13 million units a year sold in western europe. before the crisis, we were about 18 million units. compare that with the united states. our viewers there know full well we have a boom going on. we took it in the latest figures, 16.09 million units sold which compares with the late 2007. ie, they got back to some of their peak levels. europe is way beyond that. a lot of prons problems and still a lot of overcapacity. back to you. >> we'll take a short break. still to come, apple gets set to show off the successes of the iphone 5. samsung and other phonemakers are continuing to pose a big challenge. we'll look at what the company may have to do so increase sales. reminder, futures right now indicating an upward path again today. has it's ups and downs.
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>> we are quite optimistic. we will see. the benchmark for this year is 1.5 million. we will surpass that figure. so audi is growing and this makes us happy. president obama's intention to take military action against syria has taken a detour. public polls show support is fading. and we find out today the next big thing is for apple. the company gets set to take the wrap off two new iphone models. if you've just joined us this morning in the united states, a very good morning to you. we saw pretty good gains for the dow yet yesterday. the best day in eight weeks, triple digit gains since is ug the 1i. right now, the dow is currently down, what, 50 points below fair
value? the s&p and fass dak have five-day winning streaks. called higher today. the nasdaq at the moment is 12 points above fair value, as well. as far as european equity res concerned, losses yesterday, the ftse down 16 points. it is firmer this morning. now up near the session high, 0.8%. autos helping the markets a little better. xetra dax up 1.6%. the ibex in spain up 1.4%. worth pointing out, as well, spanish yields are now lower than italian yields for the first time since 2012, as well. meanwhile, focuses on the president, mr. obama is still on the fence about taking military action against syria without congressional approval. interview owes the major u.s. tv networks, the president says he's not certain he can win a vote on the resolution to authorize using force, but he's set to meet with senate democrats and republicans today before giving a televised address to the american people this evening.
president obama says the russian proposal mean what time to get syria to seize control of its chemical weapons is a positively development. >> a famous american president once said trust and verify. you have to take it with a grain of salt initialry, but between the statements that we saw from the russians, the statement today from the syrians, this represents a potentially positive development and my preference consistency has been a diplomatic resolution to this problem. >> meanwhile, senate majority leader harry reid has delayed an expected procedural vote to officially begin debate on the syria resolution. reid said he consulted with president obama, senate democrats and republican leaders. once he says he has the 60 on votes needed to move to debate, it's not a race. the possibility of a dip le mattock deal involving syria and russia is a major factor in
delaying the debate. congress is going to give a resolution. this resolution would propose dismantling syria's chemical weapons stockpile and the resolution would propose that those behind the august 21st attack be tried, as well. joining us for more is john drake, head of global intelligence at ake. what do you think of this french/u.n. resolution? it comes on top of what the russians are talking about. >> in principal, it shows that france is still intent on going and doing something about the chemical weapons in the country. i think the concerns that i would have is practically, it would be very difficult to take control of any chemical weapons in the country, even if there is international backing. it would still involve sending some form of foreign military force into the country to secure them. they could become a target for
militant organizations in the country. so on paper, it may seem like a very straightforward thing. it's the international community agrees. >> what's the chance of this resolution getting russian support? because it follows up the russian plan. are they calling the russians -- i don't know. how committed are they? >> it imagine b it would very disk to gain russia support about something like this. >> well, this idea came from them. >> russia will want to seek some negotiated settlement that would benefit them and ebb sure their continued support of the assad regime. >> they want to go in and get the chemical weapons. >> if they know how to secure them, it would be very difficult to do so. russia is very aware of the difficulties in securing them. i would imagine russia is trying to negotiate itself into the strongest position, which in my opinion -- it's the key player in the country and it's look like it's doing better in terms of its strategic negotiations
vis-a-vis the west. >> is there any chance of getting a cease-fire negotiation at any point? >> ultimately, there is certainly a possibility of engauging the different players into dialogue. it's going to be very difficult and it's not going to be a quick or easy solution that could be years away. but it's essential there. but the different sites ultimately want some kind of control over their area and spheres of influence. you would have to remove certain radical elements of the rubbles, you would have to engage in the key players that was some stability in the country. it is possible. it would just be a long way away. >> it it would recognize them as a stalemate. i'm not sure they will do that. just tell us your view now where u.s. policy is and whatever happens, the ramifications for now u.s. foreign policy is now perceived, particularly in iran. this whole episode, does it
embolden what has happened to delay -- does it em bolding other powers who may be hooked on u.s. foreign policy? >> it depends on a number of factors. if you look at the uk on our vote on not supporting military action, some have improved our reputation. people thought actually we used the democratic process and -- >> what about the democrat iblg process in iran? >> iran is arguably one of the more democratic countries in the region. it's not simply a bunker state. >> i guess what i'm saying is they're moving towards a nuclear program. does this mean they're more confident about it? >> they're possibly viewing this and seeing america has set itself a difficult deadline in terms of the red line it's put itself into a difficult position. and iran may be relishing 2 fact that the u.s. is struggling at the moment. but i wouldn't say that the u.s.
is necessarily undermined its own republic eyetation in the respect. if it committed certain parts of the reasons pb it would she very inflammatory. but at the time, people in many countries weren't able to protest about other issues. now, following the arab spring, populations in the region have a lot ooh other issues to discuss, other things like food prices and destabilized governments and unrest in several other countries. this may be be the big thing that it would have been in 2003. >> john drake, head of global intelligence at ake. you've been listening to -- well, you've been seeing pictures of the german foreign ministry min guido at the moment. meanwhile, still to come, verizon outlines details of its
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purchase of the rest of verizon wireless from vodafone. let's find out what we're going to get. kayla has been digging in and has the details. hi, kayla. >> hey, ross. verizon is expected to raise at least $20 billion from the offering. that would be the largest corporate debt sale ever, larger than apple and april. the banks are expected the close the box this afternoon. the bond offering will pretty with eight tranches. verizon will sell debt ranging from three to 30 years. that's according to initial price suggestions. and 0.7% more than where verizon's bond kweeldz are currently trading. the yield on that nine-year bond has risen 0.5% after since talk about a potential bond offering since late august.
the rb that be selling, but sentiment has been riding with reports in may that elt may consider others to pull the trigger. >> kayla, thanks for that. have a good day. a recap of the headlines, better than expected retail data of you of china boosts stocks. carmakers see improvement in the european market. and president obama hopes that addressing the nation will sway public opinion on syria. but a vote in the senate has been delayed. and some of the other top stories today wsh bank of america is reportedly set to lay off around 2,100 layoffs. workers in several states, including ohio, virginia and florida received notice last late month. more than half the job cuts will come from the cleveland area.
bank of america is the third largest mortgage lendser. applications for mortgage lending have dropped nearly 3% as rates have moved higher. bank of america stock up around 0.75%. jpmorgan is in a $300 million settlement assets. the settlement has forced jpmorgan to stop taking premiums from homeowners insurance if the homeowner's service lapses. apple has decided to surprise everybody with its next performance. our next guest promises more rumors than fact after the big reveal.
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nissan has unveiled the q-30 hatchback. it's part of the carmakers plan to attract younger drivers with premium brands. it's a big auto show causing lots of problems for our man on the ground there, steve. he's puffing a bit. >> wa a shame i haven't done any training for this marathon this year. >> how big is the conference space? >> let me give you a clue. in geneva, you're in two little halls or two big halls. it's great. you just move in side from one side to the other inspect here in bmw, you've got many, many football pitches.
there was one estimate from a journalist that by the time he had been walking around for two days, he had walked 14 miles. that's more than i walk in the month of september and october. you talk about this concept cars, premium brands, as well. the traditional brands are looking and saying technology is a way forward, but going premium is a way forward. some of the premium brands are doing amazingly well. for instance, now for bmw, august sales were up 34% in the united states. clearly, the knee sans of this world are looking at that market, but a brand like infinity isn't as staepd as a mercedes, as an audi. but i spoke earlier to nissan who is exhibiting a new crossover car. i raised with him the issue of creating a new premium brand. listen in to what he has to the.
>> we have already very successfully established that in the u.s. the brand is very u.s. sent rick, and we are now taking it global. with very clear aspirations to secure a strong foothold in asia, but also in europe. >> but realistically, i read about some of your cars, they're taking on audis, they're taking on mercedes-benz. are you taking on an issue where globally people are not perhaps as aware of infiniti. >> yes, of course. i think the three particular brands dominate the space and we are going to take them head on. but we also are evolving product strategies that allow us to outflank them a little bit. and we also do not have the aspirations to come anywhere close as the bleeding three brands in terms of volume. we, in fact, want to be more scloois exclusive and not park a car in every driveway, but in
the right driveway. >> the color behind me is called liquid copper. citron ceo, we expect to dwrerl on. he has his premier range. so everyone is working to find a premium to build that volume and take a little bit of that premium market. whether they can or not remain toes be seen. one group that is up there in the premium brands and doing inkretdbly well is daimler. we're going to speak to the ceo of daimler later today. that would be a first on cnbc, as well. back to you, ross. >> thanks for that, he'll need the break. he we've been asking our viewers today, what features would you be like on your car? remember the car from james bond, sold for $3550 thousand
pounds. fair enough. from car tech to phone tech. apple is holding an event at 1:00 p.m. eastern. the firm is expected to unveil the iphone 5s will will apparently look just like the iphone 5 but it will have a faster processor and come with a fingerprint reader for identity. it would allow you to show off a cheaper iphone, the 5c, and it's aimed at the lower end of the smartphone market. the senior et tore at business insider joins us from the cnbc headquarters in the states. do you think this event is going to be exciting for inest
investors? i don't know if it's going to be exciting for investors. it's nice to see them back on stage revealing something physical that people can go out and buy. i think that's going to be a good sieven. are they going so show us anything in the we'variable spa. it's going to be a little different. it will be closer, i think, to what nike has with the fueled in, but it will be more health tracking. samsung basically took a smartphone and tried to slap it on your wrist. i don't expect that from apple. i do expect something in that area, but i would expect it closer to the end of next year, or maybe even early 2015. >> unless it looks good, right, people aren't going to pick it up. >> right. but i will tell say this about
apple. i think we can say they've never had a problem making something that looks good, have they, in the last 10 to 15 years. i think the iphone is the best looking smartphone on the market. their laptops are the best looking laptops. everyone copies their design. so i don't worry too much from a design/looks perspective about appear is able to get it right. >> apple's history would sulg that. what about the tv? what's going on there? >> it seems like they're in a bit of a stalemate with negotiations, trying to figure out content. it seems like for apple, there's a few ways to do this and it's a difficult market to crack because it's highly fragmented where you have a bunch of cable carriers around the world and you can't just standardize around a -- an operating like a carrier network, like gsm like
they can with phones. so i think they're just trying to figure out a way -- i think they have the software. i think they know exactly what they want to do. i just don't know that they've figured out how to get to that point. >> yeah. so look, right now, how would you describe the battle between appear sxl samsuand samsung? who is winning? >> right now, samsung has better market share, but samsung is in trouble, in my opinion, because cheaper phonemakers are going to come in and china and elsewhere and be able to disrupt samsung and what it does. samsung is going to have to fight in the low end. it's a little different and it has no particular differentiation because it's still using android. apple makes ios, which is its own software that's unique and nobody else can use. >> okay. thanks for that. good to see you. jay yarow.
that's it for today's "worldwide exchange." "squawk box" is coming up next. have a profitable day. building animatronics is all about getting things to work together. the timing, the actions, the reactions. everything has to synch up. my expenses are no different. receipt match from american express synchronizes your business expenses. just shoot your business card receipts and they're automatically matched up with the charges on your online statement. i'm john kaplan and i'm a member of a synchronized world. this is what membership is. th membership does.
good morning. the day's top stories, president obama prepares to address the nation on syria. he might have a whole new message after yesterday as a new poll find the majority of americans oppose the strike, including, apparently, the first lady. apple is holding a major event in california today. high hopes for the tech giant, all kinds of any colors and stuff. for the markets, green arrows in europe and asia, maybe piggybacking off futures yesterday. and futures here indicating a positive open on september 10th,
2013. it's also tuesday. this is "squawk box" and we start right now. good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. senate majority leader harry reid is delaying a senate test vote to authorize the use of force against the syrian regime. he says he consulted with the president, fellow democrats and republicans before delaying the vote. >> you have to take it with a grain of salt initially, but between the statements we saw from the russians, the statement today from the syrians, this represents a potentially positive development and my preference consistently has been a diplomatic resolution to this problem. >> the president was referring to an idea that got started by et
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