good wednesday morning and welcome to worldwide exchange. >> here are your headlines. >> i'm wilfred frost. here are your headlines from around the world. >> u.s. two year treasury yields are spiking as the fomc kicks off. telling cnbc exclusively that it's time for lift off. >> the underlying economic data in the u.s. warrant a rate hike. the u.s. city can stand it. >> up to 30,000 jobs set to go at hewlett-packard's enterprise

business sending shares down after hours. cnbc speaks to meg whitman later today. >> strike averted. fiat chrysler seals a deal with the uaw. it will end the controversial two tier pay system. >> founder mark zuckerberg makes a u-turn on the dislike button in response to user demand. let's check in on u.s. futures and what they're indicating for the u.s. market open. we had a pretty good session last night. rally of 1.5%. really across the board. u.s. futures are telling us we're not looking at much movement out of the gate. the s&p 500 the implied open. we're down marginally, pretty much flat. the tow jones industrial is look

at gains at 9 points and the tech heavy nasdaq looking at a decline of one point or so. >> just going to quickly jump in there and bring some flashes from the oecd that says the early fed move would remove some uncertainty. they're saying a fed rate increase is warranted but only at a gradual pace. they're saying that pace of rate increases is more important than the timing. they do also say that the larger than expected china slow down is the main risk to the global economy at the moment and they see risk that china stimulus measures are insufficient to meet growth targets. back out to you. what did we close out yesterday in the u.s.? >> we're sitting at two week highs. dow jones up 1.5%. so we had equities moving higher but then yields moved up as well. especially the front end of the yield curve which indicates,

looks like the markets might be front running. an expectation that maybe we're going to get a hike from the federal reserve. a lift off sometime soon. so the two year note is very indicative of what the market is thinking of what fed policy will be in the future and we did see gains last night on the yield, up to close to 4.5 year highs there of the 78 basis points. as for the ten year note we did see yields tick up a little bit as well. up to 2.25 and there's a lot of buzz as to when the fed of course will be hiking interest rates since they did kick off their two day policy meeting and how the central bank will go about it. steve takes a look at what a rate rise means in practice. >> it was the predawn of the modern age. twitter didn't exist. there was neither iphone nor ipad. the year, 2006 and it was the last time the federal reserve raised interest rates.

so it's not embarrassing to ask. what exactly is a fed rate hike? the federal reserve controls out right only one interest rate in the economy. the one banks used to lend to each other overnight or the fed funds rate. the prime rate is tied to the fed's fund rate and many consumer loans and credit cards are tied to the prime rate. with a higher rate the fed tries to slow down the economy. with a lower rate it tries to stimulate the economy. that's what the fed did with successful cuts during the financial crisis of 2007. it slashed rates to zero where they have been for nearly 7 years. raising rates this time will be complicated. when at the were lower to zero and the economy was still in the dull drums they try to stimulate growth by buying long-term bonds. pumping $4 billion in cash into the banking system. with all of that money sloshing around banks don't need to borrow from each other in the federal funds market. they have plenty of cash of their own. pay the banks not to lend this

cash. the fed will offer banks what's called interest on excess reserves. inducing them to keep their money on account at the fed and not lend it out. loans to private borrowers will have to be at a rate above what the fed is paying banks not to lend. even with this the fed is unsure it can hit the target is now it's going to try to keep the funds in a range aiming for a mid-point. if the fed hikes the new range is expected to be between 25 or 50 basis points or around 37.5 basis points and that will be the dawn of a new age. few if any central banks ever permanantly left zero. the fed is looking to be the first one. >> well, not surprising there's a divergence in opinion as to when the lift off will take place and before the summer's wild market swings most analysts were forecasting a rate hike this week. after trying to help spark that global sell off and with

inflation still stuck below target many economists have now pushed out their expectations. their prediction, march, 2016 is when we'll see any sort of move from the federal reserve. so you get to enjoy the lovely spring months as well, wilf. >> let's just bring some euro zone inflation numbers. it has been revised down

slightly. it had been 0.2% year on year and been advised down to 0.1%. so slightly lower than expected in august. let's also just bring recap on the oecd flashes that we had recently thinking that an early fed move would remove some uncertainty. they're saying that the importance of a fed move is the extent of them. the pace of them and it being gradual. not the timing saying the u.s. fed increase is warranted but at a gradual pace. on that note, one former policy maker turned bank chairman told cnbc that the fed should pull the trigger tomorrow. let's get out to carolyn live in zurich with more on that. >> good morning to you wilf. a big conundrum for the fed. should they or should they not? they have warned against a rate

hike in september saying that the global economy simply isn't stable enough yet and then you've got emerging market central bankers who are saying let's just get it over with already. september might be the one. >> my last job was should they or should they not. i would have never commented on them then. my view is if i look at the underlying economic data, the underlying strength of the us. economy and the upgrade of the first quarter where many thought it was a bad negative quarter it has been upgraded in the positive territory. the underlying economic data in the u.s. warrant a rate hike. the u.s. economy can stand it. the u.s. economy in my view needs it medium to long-term and i'm convinced that the u.s. will see a rate hike in september but i'm not focused on the next policy decision. if they move in november they'll

move in the medium to short-term. rates will start going up and they need a longer term anchored communication process to make clear that the current turn around in policy will be followed by a moderate and more adequate raising of rates. getting the medium term communication right for the fed is much more a challenge than getting the first move right. >> interesting bis paper saying that the fed will lead the charge in terms of the tightening cycle. do you think that so many other central banks will follow suit? many of them are still firmly in easing mode. >> that's true and to some degree the world has been diverging. if you talk about the major central banks, we used to talk about the bias in monetary policy and in that sense i think the ecb still continues to have an easing bias saying that it's the bank of japan. there's no imminent easing action they talk about but they clearly have a bias that more than likely we're going to see further easing moves in japan and the euro zone.

this will not stop the fed. this will probably impact the speed and the magnitude of rate hikes and how frequent they acur and they'll move at best which means they can move by 100 basis points over the year which is way lower than the moves in the past and the market will then in some sense also look at the dollar relative to the euro and japanese yen differently. i can see a renewed pressure going forward and a renewed fall in the euro and japanese yen as a result of the rate hike cycle in the u.s. and probably not follow at this point by europe and the japanese. maybe the bank of england is in the camp of those central banks that might follow suit but they'll give themselves time to not move in sync with the fed. >> we had a lengthy conversation about the recent slow down in china.

he says he's not too concerned about what in a means for ubs's big investment in it's bewealth management unit. 10% of their total assets worldwide. they want to increase in ten years time. the market correction, that was healthy. >> all right. good stuff. let's get to sab miller. >> we have some flashes coming out on that. quite an interesting couple of flashes. so sab miller just responded to some press speculation about a possible take over from abi. of course that speculation came out a couple of weeks ago. so slightly odd timing and of course an odd reason to release a statement themselves because it's only been press speculation and not more serious. they jumped to almost 10% because they have said that they believe that abi intends to make a proposal to buy sab miller and they said he will review and

respond to any proposal as it comes in but no proposal has been received. this is a slightly odd statement saying that they're expecting a takeover offer from abi but they haven't got it yet and the reason they're making this announcement is that they are responding to press speculation. sab up 9.5%. >> wow. if that were to go through, that would be a huge move. now speaking of transparency let's talk about the fomc decision. not a whole lot of transparency there. global head of equity derivative strategy joining us now for his views. i guess that is the -- i guess that's the event this week. the fed, the fed and more fed. >> yes, it's a little bit like that at the moment. it's unusual because the fed

keep telling us about forward guidance. they want to be clear what they're going to do. i've never seen clients as unclear about today as what they're going to do in the next couple of days. i was at a client dinner last night and the view will the fed move was 50/50. >> 50/50? >> straight down the middle. >> pricing a 30% probably right now. >> but these are the smart guys and even they were 50/50. so there's a huge alt of uncertainty around what the fed are going to do. >> the moves we've seen over the last month suggest that we're not expecting a rate hike though if we look at the short end of the curve in u. s. bonds perhaps suggesting the other way. so what's your latest expectation? >> the house view. they will not move tomorrow. they're unlikely to move to recall. they'll move later in the year. near year end. so that's the house view but the real question is not so much when they'll move for the first time as to what will the path

from that first move look there after for interest rates. the answer will be flat. whatever we know janet yellen and the fed are going to move incredibly slowly and the more communication they can give around that the better it will be for risk assets generally. >> do you find the market moves confusing? we have equities moving higher. a rally on wall street last night. yields going up as well. don't they move conversely to each other. >> not always. >> in these conditions they have been. so what is it telling us right now when you have the two year yield spiking up to a 4.5 year high? >> you have to be careful. the ten year u.s. treasury is being manipulated. you have the fed buying treasuries and you also have the chinese central bank who are also massive holders of treasuries but who have been selling u.s. bonds because they have been supporting the currency. so they have been selling dollars to buy the currency. it's allowing yields to rise. it's very difficult to reach

straight across the bond market and straight back to what do they think the fed is going to do. i think it's just amplifiying it was people don't know. >> we'll talk more about the market moves and what we're going to do here. let's give you a run down of what to watch for this trading day. august cpi inflation data is due out at 8:30 a.m. eastern time. consumer pricing expected to remain unchanged as gas prices drop to also the strong dollar keeping inflation in check. core cpi which excludes food and energy forecasts arise .1% for a second straight month. at 10:00 a.m. we'll get the monthly sentiment survey for the national association of home builders. fed ex and cracker barrel will report before the opening bell and oracle will be out with their numbers before the close. >> still to come, we detail the

radical steps that hewlett-packard is taking to cut a whole lot of jobs. >> and more about sab miller. the latest flashes have driven shares higher. up 19% and now 20% and we'll be discussing that release from sab after this break. up 20% sab miller. more data means more freedom to do..whatever. that's why at&t is giving you 50% more data. that's 15 gigs of data for the price of 10. because the more data you have, the better. and right now at at&t get $300 credit for every line you switch when you trade in a smartphone and buy any smartphone on at&t next. (vo) wit runs on optimism.un on?

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good wednesday morning, here are your headlines. u.s. futures mix as investors are waiting the outcome of the fed's two-day policy meeting that starts today. microsoft will increase it's quarterly dividend by 16% and shares in sab miller are surging 20% after it confirms that rival will make an offer. >> let's get straight to that final point. sab releasing a statement today that they say is in response to press speculation confirming that they expect abi to make a bid. that they will respond to that bid as appropriate. that they haven't got a bid yet. we've seen shares jump the best part of 20% in sab and we're seeing now the likes of heineken

rise by 5.6% off the back of this. carlsburg is also up as well. a very interesting press release particularly given that no bid has come in yet and this is the target making the announcement not the acquirer. edmond is still with us. perhaps a quick comment on this particular speculation. do you think they'll be able to make the deal work if it came through? >> yes but obviously you have true antitrust concerns. you're trying to put that together with miller light. that's going to be a tough one to pass by the u.s. regulators but they have a fantastic record of squeezing more productive and raising profit margins and maybe they feel sab miller is a little bit sleepy. and they're just itching to realize. >> thank you for that. let's broaden out and continue our discussions for earlier. the financial industry likes to coin words. in your latest notes i see you

have come up with chelefant in the room. is that overblown in sn the risk of china to global slow down or not? >> the global slow down certainly happening but we blame everything on china. the month of august, volatility, enormous volatility is all china's fault. it's not true. there's a lot of other underlying reasons but we choose to blame china because it's easy. i think this is the perfect time to look at optionalty to the upside in china because it's been slaughtered and you've seen margin trading having shot up in china now collapsing. it's difficult to do it with cash. optionalty is better. >> you say optimize regional exposure. you like domestic exposure in

certain areas. >> euro zone in particular. we're seeing this global trade slow down effecting global growth everywhere. people revising down their growth forecasts. europe stands out better than most. mario draghi, ebc, qe, we'll get more of that between now and december. that will be a problem not just for the economy but also euro zone financial assets. we focus on euro stoxx 50 and those are two key trades to the upside. >> thank you for joining us. global head of equity d. >> hewlett-packard expected to did you tell 30,000 jobs as it tries to adjust to the new reality of falling demand. they come on top of the 55,000 already announced and it comes from the faster growing corporate, hardware and services

organization. they'll result in a profit charge of $2.7 billion starting in the fourth quarter this year. shares down 1% in after hours and just a reminder, david faber will speak with meg whitman in an exclusive interview here on cnbc today at 9:05 eastern time and that comes your way on squawk on the street. >> general electric is planning to move around 500 u. s. manufacturing jobs to europe and china because the closure of the u.s. export, import bank will limit it's access to financing. the plants will lose out on jobs if the company wins additional bids for international power projects but no u.s. facilities will close. >> we're going to go to break here but still to come on the program, nothing to yuan about. you get it? you get it. we'll tell you why one company's forecast could be keeping investors up at night. right after this short break. opportunities aren't always obvious.

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welcome back to worldwide exchange. let's recap the trading day in the asian markets. we wrapped up the session and it was a fairly sizable risk on the rally helped by wall street overnight but arguably the asian

markets seem and i stress seem to be pricing quite a benign scenario. perhaps they are suggesting that we could see a continuation of zero interest rate policy by the fed and no move this time around. no hike. that's what the markets seem to be telling us. expectations are all over the place. you got a 50/50 chance. that's what our cnbc poll is suggesting. rate futures are suggesting a one in four chance but if we do see movement and do see action a hike by 25 basis points that could destabilize some of the more vulnerable sovereigns like malaysia and indonesia. that's where we stand. back to you. >> sri thank you so much. we'll take a quick break here on worldwide exchange and as the u.s. fashion house deepens it's expansion into europe we'll be asking whether american eagle can fly. success over the atlantic. stay tuned to find out.

welcome to worldwide exchange. >> here are your headlines from around the world. >> take the plunge, that's the message from the oecd which is urging the fed to hike interest rates tomorrow. meanwhile, the chairman telling

cnbc exclusively that it's time for lift off. >> the underlying economic data in the u. s. warrant a rate hike. the economy, the u.s. economy can stand it. >> bottoms up. shares in sab miller soar more than 20% after the brewer confirms speculation that u.s. rival abi intends to make an offer to acquire the maker of coors beer. >> up to 30,000 jobs are set to go at hewlett-packard's enterprise business. we'll speak to meg whitman later on today. >> facebook gives a thumbs up to the thumbs down. mark zuckerberg makes a u-turn on the dislike button in response to user demand. good wednesday morning,

here's how markets are fairing ahead of the u.s. open but first a recap of a breaking news story. >> that's regarding sab miller and ab inbev. 10 or 15 minutes ago sab confirmed that it has heard abi is intending to make an approach. abi now also confirmed that it has made an appropriate to sab miller's board but it says there can be no certainty that this appropriate will result in an offer or an agreement. at the moment this is just conversation tweens the two and both companies coming out to confirm that those conversations have happened. no formal approach yet and sab, the target, has said it will respond to any formal offer as of when it comes. we've seen sab soar about 19% and abi shares there as well that we will bring back for you. up 7.4% in the listing.

we've also seen heiniken shares up 1%. those abi shares up 7.4% and they're now suspended. up from the last time we saw them. let's look out more broadly at markets. susan. >> let's check in on u.s. futures. we did have the rally yesterday. the implied open telling us we're not going to see much movement today when markets kick off. the s and p 500 holding steady. implied open looking for a gain of 11 points or so and the nasdaq should be down maybe one and a quarter. let's check in as we await the fomc fed rate decision. we're looking for an advance today. the ftse 100 with gains of .5% and the cac 40, the out performer so far. we're rallying here by 1%.

similar gains as well for the ftse mib. let's see what happened in asia overnight. the shanghai composite does what it always does which is it rallies into the close. we did see a rally of 5%. a lot of those gains coming in the final hour of trade and has people saying it looks like the chinese government is intervening once again but everyone is waiting with baded breath to see what they'll be doing. the largest central bank in the world kicking off it's two-day policy meeting. let's take a look at what the biggest names in business are expecting from the fed. >> they have to do a little bit something here but i would not be terribly aggressive. >> the fed has been responsible. there's harm. >> that's no reason to introduce extra uncertainty. so on all the things that the fed is supposed to care about, this isn't the time to be moving. >> the big question is not

whether they're going to hike or not. the big question is why are we so obsessing with a single hike? >> whatever it is will be according to my knowledge, fully in line with what they are aiming at which is the anchor of stability. >> i think the market is more prepared for this increase than many, many traders believe it is. >> the fed's decision becomes a bit trickier and i would argue that's the one governor on the fed's being able to move is you can't drive the dollar too high. >> i must admit. i'm a little bit baffled by the fact that 25 basis point move on the part of the fed is going to have a major effect on economic activity across the globe. >> people were fussing about the fed. this with the fed. that with the fed. that with the fed. >> let's hook at some of the biggest individual movers here today in europe. green across the screen for various european luxury and retail stocks.

we'll kick off with prada up 9.9% after their net income came in ahead of expectations. this despite a 23% drop in first half net profit as the luxury group contend with the slow down in asia. the earnings giving a boost to other luxury stocks. the likes of dior. burberry up 2%. meanwhile, swiss conglomerant is sharply higher after it posted a 4% rise in sales topping forecasts. that is up 6.4%. it's also lifting it's fellow swiss company swatch by about 3%. also with retail, zara owner is in positive territory after it saw first half net profit grow 26%. that's up 3.6%. susan. >> yesterday we also saw august u.s. retail sales rising less

than forecast. about .2% and one american brand is trying to make it here in the euro zone. american eagle is hoping to break into the u.k. online sales market be the launch of its new e-commerce site. the clothing brand opened three stores in london just last year as it looks to expand into the competitive european fashion space. joining us is chief commercial officer at american eagle outfitters joins us on the program today. >> welcome, welcome. >> welcome, thank you. >> i was looking at the statistics. you sold 25.5 million pairs of jeans last year. how many of those are you wanting to sell online instead? >> online, as many as possible. i think ultimately the customers shopping with us the way they choose to shop with us today and we're seeing definite shifts so we'll see more of that consumption continue to move online. >> you're only just launching

your e-commerce site here in the u.k. some what behind the curve? >> we have a significant global business. a 16% penetration in our business in digital e-commerce today. what we did was our first ever localized site. we have been servicing through digital in the u.s. this is actually servicing the customer from their home base. >> and american eagle, you're predominantly a u.s. company. what portion are sales are now x u. s. and how important is london for you. >> a large part of the business is u.s. based. a large portion is licensed or franchised. the u.k. for us is critical for our launch into the rest of western europe because we see this consumer is leading the trend and as giving us a definite rate on the way we want the consumers to work with us here. >> let's talk about the american

consumer. looking at american eagle outfitters. there's questions about the strength of consumer buying whether it's in america or asia right now because they're not opening up their wallets like they used to. >> the thing is we've seen more traffic down. we have significantly out paced more traffic in the last six months. we don't particularly focus on what's happening with the market around our share price. the way analysts and investors are analyzing our stock is up to them. what we're focussing on is deliver a significant profitability. >> is it weakness in the global consumer? >> no we're not seeing it in our business. if you look at our earnings per share and guidance we're proj t projecting a 30% increase in numbers. >> remind us what your customer is again? >> if the u.k. it's 30 to 40 pounds. in the u.s. around $49. >> i want to ask you about one of your new types of denim which incorporate coffee granules.

>> cafe x. >> why coffee in jeans? >> we're on the front curve of what's happening in denim innovation and it's a different way of getting a wash technique into jeans that we think will appeal to a customer. it's something cool and fun. >> does the caffeine absorb into your skin to keep you awake without having to have coffee. >> one would hope so. chief commercial officer at american eagle outfitters. >> you should try that trend. >> can i put it in the suit and we can go all day long. >> skinny jeans for you. >> of course. because they accentuate -- >> you can pull it off. let's talk about under armour and coming up later on sarah will be sitting down with under armour's founder and ceo kevin plank. that's an exclusive cnbc interview fresh off his speech to analysts and that is coming your way on power lunch at

1:40 p.m. eastern time. >> facebook is giving the thumbs up to a dislike button at a town hall meeting on tuesday mark zuckerberg said the company is working on such a feature but wouldn't say whether it will be called a dislike button and when it will be rolled out. >> so what do you think of the dislike button? would you get involved and start criticizing your friends photos and posts? we have even offered you a couple of our own photos which we admit probably do warrant a dislike. we have put them up there and most of you on twitter have been telling me that mine is the one they dislike most. >> that guy would wear skinny jeans, don't you think? cafe denim. >> i don't know. he might well do it but regardless i don't think it would help the number of dislikes coming in for that

particular photo. but continue to get in tough with us. what do you think of this dislike function? would you use it? do you welcome it? @cnbcwex is the twitter handle. >> lovely photos we have up there. let's talk about apple ceo tim cook. fresh off the launch of the new iphone 6s last week appearing on the late show on tuesday we thauk -- they talked about the phones new features as well as cook's former boss. cook also dancing around comments from uber's ceo that apple is working on a car but he did take a question from one very hard working apple emplo e employee. >> i asked siri if she would come up with questions for you. y'all did it. there's questions for tim cook on siri that anyone in the world can access but nobody knew they

were there. so i'd like to do one right now, okay, if we have a moment here. >> please. >> siri, what should i ask tim cook? >> do me a favor, ask him when i'm going to get a raise. >> that's a great question. >> great stuff there. >> that's my question to our bosses here too. okay. let's talk about takeovers and we're talking a lot about take overs especially on this sab miller story that's developing right now, what about a take over deal that you can literally sink your teeth into? dentsply is buying sirona dental. it's a slight discount to the closing price on tuesday. both companies rising 2% in after hours. >> now the robots are literally taking over.

japan's omoron corp. is buying adept technology for $200 million. they'll pay $13 a share. a 63% premium to the closing price on tuesday. adept specializes in robotics and industrial software while they were one of the first makers of atms with magnetic strike readers. >> still to come on worldwide exchange, hp is cutting thousands of jobs once again as the company prepares to begin a new life as separate entities. more on that coming your way next.

this just in. standard and pores downgraded japan in their moves. a move down to aa negative. the outlook in their view remains stable and this has been a question mark of course as we don't have the firing. it's been a lot of monetary stimulus. let's check in on the yen to see if there's been reaction on the s&p downgrade on japan's sovereign rating. pretty much holding steady so the market hasn't anticipated this. 120 yen versus dollars. a lot of people are pointing closer to the 121 level versus

the u.s. let's check in on microsoft and microsoft will be hiking it's quarterly dividend by 16% to 36 cents a piece. a new dividend will be paid out in december this year. a net loss by the way in the latest quarter as it wrote down the value of its nokia phone business. shares rising 2% on tuesday and another .5% in after hours. >> hp will split in two separate companies in november. that division will end up being much smaller than previously thought. let's get to landon at cnbc hq. >> it expects to cut 30,000 jobs in it's enterprise business or 10% of the work force as the company adjusts to falling demand. the latest cuts on top of 55,000 lay offs previously announced will come from the faster growing corporate hardware and services operations which will

be known as hpe in november. the cuts will be global but didn't elaborate. the cuts and other measures that aim to save $2.7 billion a year will result in a charge beginning in the 4th quarter. hp says it's moving more workers to lower cost locations in an effect to reduce costs. more than 30% are in such locations and the kpacompany pl to increase that. the most recent quarter sales fell 11%. the company stock is down more than 30% this year. hp is also releasing financial projections for hq inc. the printer and pc business. it believes the markets for those products will remain tough for the next several years and quarters. the business is expected to report free cash flow of up to $3.3 billion last year. half of which can be returned through dividends and buy backs. they fell 1% in after hours.

it's up about a fraction. david faber will have an interview later today at squawk on the street. that's at 9:05:00 a.m. eastern time. >> thank you for that. fiat chrysler struck a tentative deal with the unite aud toe workers union on a new contract. they're not disclosing terms but the pact will eventually end the two tier pay system which gave new hires less than vet can coworkers doing the same job. they'll brief members in the coming days that will vote on whether to ratify the deal or not. let's look at price action, up 0.2% in trade. >> if you're looking to send parcels and packages you'll have to do more. it's going up by 4.9% effective in january next year. the hike applies to domestic,

export and import shipping. fed ex reporting earnings before the oepening bell today. in advance, performance 2.5% up so far. >> a mega cable tv merger could be in the works. amc networks, the home of hit shows such as the walking dead and breaking bad is in talks to buy people yul netwo buy premium network starz. amc is up 2.6% in germany and starz is up itself. david faber will speak with the starz ceo on squawk on the street. >> these are your headlines. u.s. futures are mixed as investors are awaiting the outcome of the fed's two-day policy meeting that starts today. shares in sab miller are surging 20% after it confirms that rival

will be making an offer. and google says despite working on a self-driving car it has no plans to become a fully flegded auto maker. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? many wbut hope...ms come with high hopes, doesn't work on wrinkles. clinically proven neutrogena® rapid wrinkle repair with the fastest retinol formula available, it works on fine lines and even deep wrinkles. you'll see younger looking skin

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oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world. welcome back. beer stocks across the board rising on the news that sab announced earlier it was expecting a bid from abi. abi had also spoken to the board. you can see sab up 20%. abi is suspended. let's bring in the alcohol drinks analyst at euro monitor. spiros good morning to you. positivity across the sector on rumor of this deal. do you expect the deal to come

to fruition? a lot of competition concerns will arise if a deal starts to be put on the table. >> good morning. i would agree with your comment. i would add to that a degree of stock market intoxication so happy news in this day and age. i tend to be more skeptical. not just because of the competition authorities but also because i do not see this change in the underlying narrative of what's going on at the moment. what i mean is a force of craft brewers have essentially changed the battle groups. they're looking for alternatives to big beer offerings so such a deal would provide definite opportunities for margins and cost savings. we agree on that but would it really change the story of what to drink and where and how and the positioning that's a big

question for me. >> thanks so much for joining us. much appreciate it. >> there's going to be regulatory concerns about combining miller light and bud light together. let's get straight to u.s. futures because we do have the two-day policy meeting kicking off. u.s. futures telling us we'll see a flat start today. the s&p 50 not up at all. we're kicking off where we left off yesterday. dow jones up 5 points. nasdaq down 3 points. let's talk about ubs, he tells cnbc maybe the fed should be pulling the trigger. >> the underlying economic data in the u.s. warrants a rate hike. the economy. the u.s. economy can stand it. the u.s. economy in my view needs it medium to long-term and i'm convinced they'll see a rate hike most likely in september but i'm not focused on the next policy decision. >> we'll leave you on that note and let our colleagues state side pick up the debate. that's all we've got time for. squawk box is coming next.

good morning, the wait is almost over. the start of the most hyped, not by us, two day fed meeting in recent memory has finally arrived. queue the countdown clock. the decision on interest rates is now more than 32 hours away. breaking overnight, china stocks soaring spiking nearly 5% in the final minutes of trading. i wonder how that happened. in the last five minutes. amazing. and then new this morning, a deal is brewing. sab miller says they plan to make an offer to buy the beer mak maker.

plus giving a thumbs up to a thumbs down. facebook is looking on a dislike button. isn't that what the haters need? but ceo mark zuckerberg isn't sold just yet. it's september 16th. we'll tell you why. today is september 16th. and squawk box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box. >> good morning and welcome to squawk box here on cnbc. the stage is set for today's gop debate at the reagan library. the main event will feature 11 presidential hopefuls. donald trump will stand in the middle of the stage. the new addition from the last debate is carly