welcome to worldwide exchange. i'm carolyn roth. >> i'm wilfred frost. here are your headlines from around the world. >> volkswagen keeps shares in the red as there will be personnel consequences. the ceo says the company screwed up. >> our company was dishonest. with the epa and the california air resources board. and with all of you. and in my german words we have totally screwed up. >> hillary clinton's war on drugs sends european and u.s.pharma shares into the red after she vows to take on

excessive profiteering in the sector. the apple car could hit the road in 2019 but don't expect a self-driving vehicle. >> an enormous strain on our relationship. susan rice says cyber espiongae is hurting ties between u.s. and china. >> let's get back to our top story. vw shares hitting the skids for the second day. currently down by 5.5% as more pressure piles on the car maker to deal with the emission scandal that knocked the german firm. we need to go back to 2013 when the international council for clean transport ran tests on diesel car emissions. they expected diesel cars to sold in the u.s. to be

exceptionally clean due to tough u.s. standards but they were surprised to find the opposite and reporting their finding to the environmental protection industry or epa after their own investigation, the epa finally challenge the car maker and last friday issued a statement calling on vw to issue a recall and warned it faces penalties of up to $18 billion. >> so where do we go from here? reports suggest the u.s. department of justice will launch a criminal probe into volkswagen deliberate cheat of emissions targets. internationally south korea opened it's own investigation which it says could expand to all german diesel cars if foul play is discovered. in france they called for european probe saying there was no reason to believe that french car makers acted like volkswagen. >> they'll discuss the response of the scandal.

speaking ahead of the board meeting they said there would be personal consequences but warned against decisions. >> in the u.s. volkswagen's north american ceo said quote, we totally screwed up. speaking at an event in brooklyn to launch the new pasat the company was dishonest and must work to restore trust. >> i'm confident and personally committed that this company will do what needs to be done to make things either. >> analysts are responding to the scandal with very harsh words. one analyst said there's no way to put an optimistic spin on this. this is really serious. deutsche bank said allegations would go far beyond a usual recall. jp morgan says it could have ripple effects across the auto industry. meanwhile, ubs thinks the ceo will re-sign if the group is found to have acted improperly.

so many ramifications for this but in fact if this criminal investigation goes through there's always a chance that vp will see it's license revoked. that could spell a lot of trouble for the u.s. operations. it's tiny in terms of the global footprint but it's a very promising and very profitable market. >> right. we lost 20 billion in market cap yesterday. that number of 18 billion in fines was muted and it's down a little bit further today as well and the other factor is if they needed to cheat in the past in order for their vehicles to get past inspections what does that say about their long-term ability to innovate? so big, big questions for them to answer and why have the rest of the european sectors sold off? we got a couple off and 5% for reno. similar moves again today.

2 to 3% for the rest of the market so there's a lot of concern for investors. >> because we don't know how widespread this is. a great piece yesterday saying this could be the automotive sector's moment and we saw that it had huge ripple effects. daimler saying we're not affected by this but who knows at this point because these organizations are so huge. >> and saying we'll have a european investigation saying french car makers are not involved. i can't imagine he has said that so publicly without speaking to the ceos and confirming that they're not involved but we don't know that yet. the only implicated company is

volkswagen. >> the volkswagen issue is expanding into other countries including korea where korea's ministry of environmental affairs will be conducting emissions tests on three different models. this is after the issue came up in the u.s. and the test in korea will be happening in the middle of october on the gulf, the jetta and audi a-3 models. there's been speculations that the deception that happened in the emissions test in the u.s. also happened to cars that are imported into korea. an official for the ministry of environmental affairs is saying there's a high chance that the same issue could have happened in korea as well. though volkswagen korea is saying that emission standards in korea are the same as the ones in europe saying that they have nothing to do with the models that will be tested by the ministry of environmental affairs in korea so there's a

difference between government officials and volkswagen korea at this point and also expecting this recall and after effects to mean a positive for hyundai motor group. the main reason that they're saying this is because in the u. s. markets hyundai motors continues to hold on to its market share through giving out inventives but with volkswagen market expected to shrink in the u.s. and korea it's expected to be a positive for hyundai. also the main markets are similar in that in the emerging markets they're direct competitor for the same market shares so this is expected to be positive for hyundai. >> hillary clinton will propose a plan to lower the cost of prescription drugs by ending drug companies ability to write off consumer advertising as a business expense. clinton will take aim at drug makers for what she calls excessive profiteering.

she'll outline a plan leveraging the buying power of the u.s. government. she retweeted a link to new york times article about steep drug prices calling it outrageous. that lead to a plunge in several stocks statewide. also european drug makers have opened lower as well. roche novartis off by 3% or so. bayer off by 1.6%. maybe she is right but i was really surprised by how much power and influence she has over the markets. >> i couldn't agree more with that. we've seen 5% moves from a potential policy announcement. all of these investors are confident that she's going to make it to the white house or anything like this, any little

bit of bad news for the biotech industry because they're already well bid up. but 5% move on the overall nasdaq index off of a back for a candidate for one party saying this. >> remember when janet yellen made the comments about the bio tech sector and the big downward move there. so these policy makers or presidential hopefuls they know that the bio tech sector is susceptible to any changes because it is so overvalued and it has been run up so much. hillary clinton knocking off $15 billion of bio techs valuation. that's a huge, huge number but maybe it's also a precursor to what we can expect from the other presidential hopefuls. they'll be speaking out against certain industries as well. >> this is an easy win for a democrat candidate to go against overly priced key health care products. it's a classic democrat issue. so i think there's a lot of

issues there whether it comes through to be a full policy. surprising moves in the share prices. >> still to come on the show, stern words from the white house as china's president kicks off a week long u.s. tour. will the countries find common ground for a cyber security deal? we'll discuss after this short break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. ♪ ♪ (under loud music) this is the place. ♪ ♪ their beard salve is made from ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass.

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welcome back to the show. quick look at u.s. futures and a down day for u.s. markets. the s&p 500 seen off by 21 points or so. the dow jones off by 171 points and the nasdaq set to open lower by roughly 51 points. this is after u.s. markets manage to close higher yesterday. so quite a volatile day but we did rebound from the losses that we saw on friday. of course those were fed induced but the bio techs stealing the show after the tweet from hillary clinton we just discussed. also what's happening in european markets and very close to session lows. the dax off by 2%. that's in part because the w is slumping by another 5% today after slumping 20% in yesterday's trading session. the ftse 100 pressured by the mining stocks off by 2% so a grim picture here.

let's have a look at what's doing in bond markets because yesterday was a slightly risk on day that therefore saw a bit of yields ticking up in the u.s. but the other way around is what's playing out today. as you can see we're seeing yield across the board the falling. prices rising with a bit of bond buying. let's look at forex as well. strengthening by .5%. the rest of the main currency pair is muted today. the euro is 11188. >> the chinese president begins his state visit to the u.s. today where he'll be meeting with various ceo. he defends his government's stewardship of the economy saying slowing growth and market volatility won't deter needed reforms. hank paulson organized the summit. cnbc has an an exclusive

interview today. that's on closing bell at 3:00 p.m. eastern. it isn't a mild irritation. it's an economic and national security concern to the united states. let's discuss his visit. joining us now is head of asia at risk consultantcy. what are you expecting from the visit? there will be a lot of differences. specifically over cyber espiongae. >> they remain stable and positive. there's a lot of talks on commercial and business corporations and there will be of course discussion on tough issues like cyber security. like trade imbalance. china's economy but we expect these discussions will be held in a manner that is manageable

and will not have a detrimental impact on the relations. >> but then we already heard from the u.s. officials from the white house that they're expected to take a very, very tough stance when it comes to the cyber crime issue. to what extent because his standing has been some what weakened given the economic slow down and given the criticism of his handling of the economic crisis and the stock market volatility over the summer do you think that the president of china will offer some concessions is when it comes to these issues or will he stick to his very hard line? >> we see this as two separate issues here. one is cyber security and one is the management of the economy. for cyber security, with his response to the wall street journal's questions, he and the chinese government will not change it's position. will repeat what has been said.

china is also not allow it but we do expect there will be a really high level frank discussion about it and potentially this talk about potential security in indeed that can be rich then long with standing the complication we expect to see that going forward. >> there is a lot of talk about chancellor george osborne's visit to china. i wonder how high of a priority that is for china. although they're making a big thing out of this, clearly the president is going the opposite direction as osborne arrives there. is that a big deal from china? the visit or not really? >> the key thing we see is doing

a lot of ground work for the upcoming state visit to the u. s. it's not usual for the chinese president to have such too high level state visit coming back to back to one another. i think both sides between london and beijing people have worked very hard for positive energy for the context under which that can be made. i think that in the more context of a u.k. china relation we expect that to remain stable and positive because uk. wants to be the best partner that china has in the west and u. k. certainly has been more accommodating to facilitate chinese investment in the country and will remain to

do so. >> thank you so much. appreciate it. head of asia. >> as we go to break, let's remind you of the headlines. the emission scandal goes global. european pharma stocks take their queue from bio stocks in the u.s. and bank of america is set to vote on whether to combine the roles of ceo and chairman. we're back here on worldwide exchange in a couple of minutes. i'm watson. and today hundreds of companies are putting me to work. i'm teaching watson to help your vet speak dog. you're a dog, right? i'm teaching watson to help you make healthy choices. i'm teaching watson to help design a vacation around your personality. don't judge. i'm teaching watson to answer endless questions. how big is infinity? where do babies come from? why can't i have chocolate for breakfast? i'm watson and i'm ready to work with you.

and then there were 15. wisconsin governor stock walker is dropping out of the 2016 race warning the republican field has become too nasty, walker is urging others to quit in order to clear the way for someone to emerge to take down front runner donald trump. joining us now is the u.s. political analyst. thank you for joining us. what went wrong? >> he never really caught fire. he was one of the front runners in iowa early on but he had a lot of flip flops in immigration and was his own campaign manager which is never a great idea and on top of that really actually kind of got some of the disabuse

really some of the republican heavy weights as far as not knowing about foreign policy and was really a signal of the times. this is an outcider base. he's not one of those guys. >> are there others that will gain off the back of this or does this not make too much of a difference? >> he is a national. i think some of his donors have to drift in other directions. it might effect iowa a little bit. he had a certain percentage of the vote. that's going to have to drift out in other directions now. maybe ben carson gets advantage there but overall it doesn't change too much. >> who is going to drop out next

in the republican field? >> that's a great question. there's a whole litany of individuals. there's 15 of them out there. i think chris christie is ripe for falling off. some of the minor candidates, gilmore, pataky, they're on their way out. some of these guys have small staffs so they don't have that many operational costs so they can keep things going for awhile. we'll have a lot fewer candidates as this goes forward. >> trump lost a little bit in the polls but he's leading the field. fiorina has risen. what's the next catalyst for the republican field? >> the catalyst, it's always impossible to say what the next catalyst is going to be. it's going to cause some enthusiasm inside the republican base but we're looking as far as the next debate that will take place later on in october. another opportunity for fiorina to capitalize on the movement

she is starting to make. number two in the polls. so really significant move in there but right now we're looking at what's going to happen as far as this government shutdown that's supposed to be happening this week. >> john, thank you for that. u.s. political analyst. i'm just looking at some of the main takeaways from the oecd's migration outlook. the applications to reach historic highs in 2015 european asylum applications lead to emergency situations, the lack of the border controls are effecting europe and the current migration policy may need to be enhanced. those are the key takeaways from the migration report. let's get back out to hadley gamble in brussels. nothing earth shattering in this report. what do the ministers hope to tackle? >> well, it's whether or not these european countries can come to a consensus on the refugees, migrants and asylum

seekers they're talking about. they're not even addressing that oecd report. that report saying as many as a million people could be seeking asylum and refuge in europe in the next year. it comes down to an issue of money and time. we understand from an earlier report stating that germany could be spending as much as 10 billion euros and that's a conservative estimate and in terms of the time the pressure is on these european interior ministers and the leaders gathering tomorrow to figure something out, guys. >> thank you for that. we'll leave you with a look at how the futures are trading and we're expecting a negative start to the trading session. the dow is off by 182 points. s&p 500 could fall by 24 and the nasdaq seen off by 54 points. the auto sector is really dragging us lower here in europe. we'll be back in two and we'll leave you with a live shot of

washington d.c.

our company was dishonest with the epa and the carolina air resources board and with all

of you and in my german words we totally screwed up. >> hillary clinton's war on drugs sends european and pharma shares into the red after she vows to take on excessive profit tearing in the sector. >> reports suggest the apple car could hit the road in 2019 but the wall street journal says don't expect a self-driving vehicle. >> an enormous strain on our relationship. national security advisor susan rice says cyber espionage is hurting relations between u. s. and china ahead of a visit from the president. >> good morning, everyone, yes, you're watching worldwide exchange. it's 5:30 on the east coast and 10:30 here in london. here's markets ahead of the u.s. open. they're looking grim once again.

the nasdaq is set to drop 53 points at the start of the session and the s&p could fall by 23 points after markets did close higher in yesterday's trading session after being quite volatile for much of the day but we did rebound from the heavy losses we saw on friday of course: also we're deeply in the red. we're very close to the session lows. it's the auto stocks driving us lower. vw off 5.5% today. the ftse 100 also under pressure as a result of some of the declines in the mining stocks were off by 2% even though yesterday we too we saw nice gains for the european markets. >> we did, indeed. but let's switch focus. if you live in new york city or philadelphia you may not get your new iphone 6s in time for this weekend and you can blame

pope francis. that's because ups is temporarily cancelling all deliveries in the area where is the pope is visiting this week for security reasons. fed ex is still operating but customers may face delays. the new iphone goes on sale and starts shipping on friday. it's been called one of the worst kept secrets in silicon valley. apple is pressing ahead with plans for an electric car. setting 2019 as a target shipping date. the project has been code named titan and apple plans to triple it's current 600 member team. a ship date doesn't necessarily mean the date customers would receive their car. it could also mean the day engineers sign off on the figure. apple also doesn't currently plan to make the car fully autonomous. let's look at price action in apple, off 4.4% in germany.

>> do we believe it? >> it's disappointing that it won't be self-driving. >> that would be something. >> according to this report. >> yes but electric and self-driving would be a real innovation in terms of the electric part tesla has already done that. they have the first mover advantage or disadvantage because they really worked on the technology there and maybe apple can piggy back on the things and worked out the kinks that tesla has to deal with. >> overall it's another indication of the way that technology is taking over our lives. we have apple looking at making cars. we have google look at making cars, this is major, major intrusion by the tech industry. >> intrusion or disruptive innovation? >> it's a good thing there. i used the wrong word there. but the likes of bmw and volkswagen and all the others are clearly looking at incorporating technology into their own cars but the likes of google and apple are thinking

let's just do it ourselves. we can jump a few hoops. >> do you think that they're looking at the electric car or self-driving car? >> why else? what else? >> i don't know. there was a big thing in the u.s. >> we don't need to talk about that. >> for now let's stick we electric cars. tesla plans to launch the new suv on the 29th. a base version of the model starts at $75,000 while a fully loaded model runs $432,000 without upgrades. that's the one i want for christmas please carolyn. tesla also promised the model three in the next two years. >> u.s. stock markets closed higher yesterday but our call to open well in the red this morning, joining us live from new york is president at jmp securities. mark, good morning to you. thank you for getting up early

for us. as long as we still have the uncertainty oornd when the fed will move or when it won't be moving, what's going to happen to markets? more volatility? more sideways trading? >> that is what we're going to see. there's more unknowns than knowns. you got fed not giving a lot of clarity to people i think for the next three months. you have potential government shutdown here in the states that people are talking about and you have more volatility. that's not what the markets needed after the fed met last week. >> if we've got all the uncertainty and thanks for pointing out the potential government shutdown. we haven't had one in quite awhile but we're dealing with all of these issues. what do you want to buy or sell in the meantime or do you really just want to stay on the sidelines? >> if you have sample cash these down days are good time for the

market. because it's not questioned. obviously with this kind of uncertainty you want to buy the best and i think you've seen the performance and numbers we'll expect out of companies like facebook and google. those will be extraordinary quarters and show continued momentum and operating margin expansion. continued market share gains and those are companies that should have quarters. >> dive into the specific picks in a minute. i want to pick on something you just said. the long-term growth prospects of the u.s. are not in question. i would beg to differ. the fed meeting last week underlined that janet yellen and co are are so nervous that the growth isn't there to continue for the u.s. is that not really what they did? they just took the safe bet to make sure that growth does continue and it's supported by loose policy? >> i think they made the safer

bet and made sure we were providing rates where they thought it was appropriate. but if you looked at what is going on, you did two stories on innovation whether it's the tesla or apple launches on their cars. you looked at the other tech companies you talked about on this show, that's where the global innovation is happening and i don't think it's decelerating. if you look at the advancements in health care, accelerating innovation in that realm i think our market is where you want to be. it's some what of a pricey market but the kind of gains you're going to get with this technology i think are ahead of us. >> you told us a couple of minutes ago stick with the winners. you say bio tech is still going to be the best sector moving forward, what do you make of hillary clinton's retweet yesterday? does she have a point? >> i think there is a point. i'm not saying a candidate

sending a quick tweet out at 11:00 a.m. is helpful for somebody's market. it grabs a great headline. when you're selling a drug that used to sell for $10 and it's selling for 1,000 and you're getting on television and saying you're doing right by the people, that doesn't make people feel good but what i'm talking about and i'm talking about in health care is we cured hepatitis. 98% cure rate of hepatitis and years agatha was a life long affliction. i'm not sure people aren't expecting big advances in bio tech drugs and are not unwilling to pay that. reformulating drugs or repricing drugs in the market for 20 or 30 years, 100 times higher doesn't resinate with me. curing diseases that are life long afflictions and paying for it does and those are two separate conversations and not what hillary clinton sent a 42 character tweet out about

yesterday. >> the election is still a long way away but you said this he election will be won and lost on social media. how important are the likes of facebook and interacting in our lives today? but more importantly i think for investors even if you're right that this election won and lost on social media will that drop through to companies like facebook's bottom line? >> absolutely. look at facebook and what they're doing and look at all the candidates and what they're doing on social media, the choice adds are going for premiums and you'll read about that in the next five quarters as the election happens and you'll see the cost to the candidates are going to go up marketedly and that goes to facebook's bottom line. it doesn't cost facebook any more to place that tweet or advertisement on facebook for $1,000 or $10,000 and they'll be able to pinpoint to the

electorate they want whether it's the locale and those will be very expensive ads to place on facebook and they'll be big winners. >> thank you for joining us. president at jmp securities. >> let's take a look at today's other top stories. bank of america shareholders will vote today on the board's move to combine the role of chairman and ceo. they kept the roles separate from 2009 until last fall when it gave him the added title but the board angered shareholders that weren't consulted on that decision. big funds plan to vote against it. the biggest shareholder has yet to say how it will vote. bank of america shares in germany up by 2%. >> time warner cable shareholders approved the company's 56 billion take over by charter communications. it will make charter the number two provider behind comcast, the parent of cnbc.

comcast dropped it's $45 billion bid in april after u.s. regulators raised concerns. it still needs regulatory approval. let's look at price action. there they are. both up 1.5%. >> a former executive has been season tensed to prison for a cover up in a salmonella outbreak. he was found guilty on dozens of charges including conspiracy to conceal that many of the products were contaminated. between 2008 and 2009 nine people died and more than 700 became ill after eating the company's peanut butter. the sentence is believed to be the harshest ever levied in a food safety case. >> breaking news from volkswagen. they are setting aside 6.5 billion euros in provisions in the third quarter. they say that the 2015 earnings

goals will be adjusted accordingly. they add that they do not tolerate any kind of violation of lotss whatsoever. it is and remains a top priority to win back lost trust and avert damage to our customers. they're working at full speed to clarify the irregularities concerning a particular software used in the diesel engines. the group will inform the public of further progress constantly and transparency and plan to set aside 6.5 billion euro recognize the profit and loss statement in the third quarter of the current fiscal year. so this is a very swift response i would say coming from them here. they want to set aside money. who knows how big that's going to be. the epa could be slapping an $18 billion fine in shares of it

down 7% right now. >> of course a 20% decline yesterday and that 7% decline today has lengthened near session lows. >> i would also add that volkswagen points out that this provision is subject to possible devaluations. that's an obvious point. who knows how big the fine is going to be. 6.5 billion euros. >> we have bmw down 5%. and the whole sector suffering as a result. right, still to come here on worldwide exchange, hillary clinton's pledge to take on what she says is outrageous price gouging sent a chill through the sector knocking down several bio tech names. more on that story after the break. it's more than the cloud.

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which means you can watch movies while you're on the move. sitcoms, while you sit on those. and even fargo, in fargo! binge, while you lose weight! and enjoy a good cliffhanger while you hang from a... why am i yelling? the revolution will not only be televised. the revolution will be mobilized. introducing the all in one plan. only from directv and at&t. welcome back to the show. we have interesting come minutes coming through from volkswagen that have has reeling from the emission scandal. they plan to set aside 6.5 billion euros and that will be recognized in the profit and loss segment in the third

quarter of the current fiscal year due to the on going investigations the amounts estimated may be subject to revaluation. that's a stark warning coming from vw in that press release today. the earnings target for the group for 2015 will be adjusted accordingly so that is a very very clear profit warning coming from vw this morning and let's have a quick look at the stock because it's dropped even further since that statement has come out. it's off by roughly 10%. it was down by 5% ten minutes ago now trading below the 120 mark after $20 billion in market cap being wiepd off the stock since that scandal has erupted. so once again vw acting relatively quickly in terms of addressing the concerns but the big question is how big could the fine be? they could be slapping an $18

billion fine on vw. that once again is really only just for the third quarter and we're getting the profit warning along with that. >> this is weighing on the sector as a whole. all suffering as well and that has weighed on european markets across the board although they did open flat today they weakened significantly. france down 2.7. the ftse 100 down a couple of percent so not much positivity despite a bit of a bounce yesterday we're in the red today in european trade. >> u.s. futures grim as well. dow jones off and s&p 500 could fall by 20 points and nasdaq set to fall by 20 points. this is after they closed higher along with volatility but

rebounding from the losses we saw induced by the fed on friday and were lead by financials and apple yesterday. >> hillary clinton has a new target in her sights as she c e campaigns for the white house. she is focussing on pharmaceutical companies and the high cost of prescription drugs. >> good morning, hillary clinton will use a campaign stop in iowa today to propose the plan to lower the high cost of prescription drugs. she will take aim at drug companies. her plan is to cap out of pocket costs to help patient with serious or chronic health conditions and it would encourage the development and use of generic drugs leveraging the buying power of the u.s. government. she retweeted a link to a new york times article about steep drug prices calling the situation outrageous. she was referring to a company

that hiked a drug from $13 to $750 overnight. the nasdaq bio tech index falling by 5% on monday. they fell by 5% in the past month. it makes a multiple sclerosis drug that costs $55,000 a year jumped 5.6%. alexian that makes a drug that costs half a million dollars for patients rose. and gilead hepatitis c pill costs $1,000 a day. and clinton's tweet refers to a drug bought in august and in an interview on power lunch on monday the ceo defended the price hike. >> at the end of the day there

have been much larger increases by bigger drug companies that you would argue that many companies don't need to do something like this. turing is a new company and not a profitable company. so for us to exist and try to maintain a profit i think is pretty reasonable. >> the u.s. is seen as the only market where they can recover large investments in new drugs so the u.s. accounts for a third of all global drug spending. >> thank you for that. here's your headlines this morning. shares in volkswagen accelerate losses after the car maker says it will set aside 6.5 billion euros in the wake of the emission scandal. europe european pharma stocks drop state side. opportunities aren't always obvious.

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let's show you the chart right away because this morning they were down 5% but since we got that press release saying that volkswagen plans to set aside 6.5 billion euros recognized in the current quarter of the fiscal year we've seen that drop accelerating due to the on going investigation the amounts estimated may be subject to estimation. they add in the press release this morning that the big, big profit warning that didn't take too many people by surprise but it is accelerating the losses, earning targets for the group will be adjusted accordingly and volkswagen adds it does not tolerate any kind of violation of loss whatsoever. it is and remains the top priority of the board of management to win back lost

trust. >> now the supervisory board of volkswagen will convene tomorrow to discuss the response to the scandal. speak ago head of the meeting, the board member said there will be personnel consequences but warned against hastey decisions. the north american ceo says we totally screwed up. he said the company was dishonest and must work to restore trust. >> i'm confident and personally committed that this company will do what needs to be done to make things right. >> so that's the big individual stocks story of the day but let's discuss market mrs. broadly. joining us is the top strategist. we're a little squeezed on tile and i apologize for that. very quickly, post the fed meeting yesterday do you buy u.s. equities again? >> you know i think you've got to get used to higher

volatility. i don't think this bull market is over. i think we're in a new stage of volatility. you can look to cyclicals here which have pulled back and we're seeing some accelerating growth momentum believe it or not. both the imft world bank, the economists are looking for better growth in 2016. you want to focus on cyclical stocks. >> very quickly, top sector pick, you just went through a couple. which stands out for you? >> technology looks the best to us. businesses begin to pick up their spending and hiring begins to accelerate and technology is the key to product activity growth. so important to driving earnings higher here. we need to see some earnings growth. >> jeffrey, thank you for joining us. top chief global strategist at charles schwabb. weighing also on u.s. futures. that's it for today's show.

>> biotech tech and pharma hit hard after hillary clinton introduces a new plan to cut costs. >> breaking overnight, volkswagen under fire for cheating on emissions tests. now the ceo is admitting that the auto maker totally screwed up. plus the gop presidential field got smaller. scott walker dropping out of the race but not before taking one last shot at the donald. it's tuesday, september 22nd,

2015 and squawk box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box. good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. pope francis will arrive in the u.s. today. the pontiff will visit three cities, washington, new york and philadelphia. as you would expect security will be tight and traffic incredibly difficult. in addition some apple iphone customers could be impacted. >> but first, yesterday saw gains with the dow up by a125 points. thisor