hi, everyone. good wednesday morning. welcome to worldwide exchange. i'm susan li. >> these are your headlines from around the world. >> a bad earnings omen. jp morgan kicks off the financial reporting season with a revenue and profit miss sending shares down in frankfurt trade. >> intel shares sharply lower despite an eps beat in the third quarter. >> democratic presidential candidates clash in their first primary debate but front runners hillary clinton and bernie sanders agree the economic playing field needs to be leveled. >> it's our job to reign in the

excesses of capitalism so that it doesn't run a muck. >> it doesn't mean anything if all of the new income in wealth is going to the top 1%. >> the largest u. s.ipo of the year, first data prepares to price it's ipo in a listing that hopes to raise $3 billion. yes this is the start. the big bank earnings from wall street and a bad omen to kick it all off with disappointing results from jpm. the largest bank by assets. revenues missing forecasts. profits were lower in really three of the four key businesses for jpm. total net income rising 22% but this was thanks to a one off tax

benefit. the ceo saying the bank chased a challenging global environment and he's promising to cut another half a billion dollars off of jpm's costs. now other financials and also they will report numbers later on today. yes that includes bank of america, wells fargo due out after the bell. dpoeld man will release their 3rd quarter scorecards tomorrow. not a great way to kick it off. >> certainly not. let's have a quick look at jp morgan shares down by 2.1%. now speaking after the results, ceo jamie dimon explained the bank must be there for its clients through the good times and the bad. >> that's what we're here for is to lend to clients in tough times but you can't be a bank that every time something goes wrong you run away from your client. >> i think the company that he was talking about was glencore and other commodity firms. speaking about the commodity space and energy firms there's

been so much concern about bad loans stemming from the energy sector and what jp morgan said is we want to be as forward leaning as possible. well, even if the banks want to do that, how much visibility have they got because we don't know whether this was the energy sector or not. >> i think just generally it's been tough to be a bank because how do you make money is usually off net interest margins, especially if you're a retail/invest lt bank like jpm is and their net interest markets have been narrowing because we're looking at a flattening yield curve, they're still freakishly low at this point, still close to 0 and 8 out of the 13 banks set to report will see that narrowing in net interest margins. it's a tough vierlt to be making money. >> you mentioned the investment banking side. we had a slow down in fixed income trading and that's something that hit the likes of jp morgan.

he i wasty did a little bit better but is an up tick in equity trading thanks to the volatility in the course of the third quarter, is that going to be enough to offset the weakness elsewhere? maybe advisory wasn't so bad but the derivatives business was pretty poor too and also equity capital markets and debt capital markets was weak so across the board what you're going to be seeing for many of the other investment banks. >> jpm will be shrinking their balance sheet by $160 billion. remember when jpm said that we have a trillion dollar bullet proof balance sheet, they're going to have to narrow that now, especially with the regulatory environment and more cash being set aside. also head count. the unit head count has fallen by about 10,000 this year. 40,000 since 2012 so it's a tough banking environment and really sets the stage for what to expect from the other big banks. >> absolutely. also pretty tough environment

for intel. the company posted a 6% drop in net income and revised down it's outlook sending shares in the chip maker lower after hours. investors shrugging off the better than expected third quarters earnings per share of 64 cents. the stock is down over 3% in frankfurt trade. >> okay. let's talk about the stage and the big stage last night in las vegas with the democratic presidential candidates locking horns in their first debate of the 2016 primary season. front runners hillary clinton, bernie sanders seizing the spotlight with both garnering strong reviews from pundents. >> greed and recklessness and illegal behavior on wall street where fraud is a business model helped to destroy this economy and the lives of millions of people. check the record. in the 1990s and all due

respect, in the 1990s when i had the republican leadership and wall street spending billions of dollars in lobbying, when the clinton administration, when allen greenspan dead what a good idea it would be to have these big banks merge. bernie sanders fought them. today it's my view that when you have the three largest banks in america are much bigger than they were when we bailed them out for being too big to fail, we have got to break them up. >> secretary clinton you have to be able to respond. he brought you up. >> i respect the passion and intensity. i represented wall street as a senator from new york and i went to wall street in december of 2007 before the big crash that we had and i basically said cut it out. quit foreclosing on homes. quit engaging in these speculative behaviors. i took on the bush administration for the same

thing so i have fought deeply and long about what we're going to do exactly what i think both the senator and the governor want which is to reign in and stop this risk and my plan would have the potential of actually sending the executives to jail. nobody went to jail after $100 billion in fines were paid and would give regulators the authority to go after the big banks. >> thank you, senator sanders. >> if only you look at the big banks you may be missing the forest for the trees. >> in my view -- i will give you a second. >> okay. thank you. >> in my view, secretary clinton, you do not -- congress does not regulate wall street. wall street regulates congress. and we have got to break off these banks. >> that is great. that's a donald trump moment. having to shh jim webb but that

night belonged to hillary clint clinton. she was strong on her return to the debate stage. she came out polished and strong and was debating against four other men on a stage of five which some say lent her some sort of advantage but she really hit the nail on the head when it came to a lot of points. when it came to debate on wall street. having to defend herself against ttp and the keystone pipeline and of course what was happening in benghazi and her time as secretary of state but all in all some say she looked pretty strong out there. still the front runner. >> she certainly did look very presidential but then once again susan going into this debate, her polls, they have dropped quite considerably. she dropped roughly 10 percentage points in the five days leading up to currently 41%. sanders at 28%. so did that debate yesterday really move the needle? i don't think so. so yeah she still holds a little bit of a lead but she needs to

extend that and she needs to show why she should be the president and not bernie sanders. yes she is very experienced. >> we should check the polls though after this debate to see how she does because a lot of people said she came out really polished and very presidential. she one afraid to debate the top issues and even got help from the other four on stage that said let's forget about the e-mail controversy. >> that was a key moment but if you talk about e-mails the biggest issue voters have with her right now is the trust issue and then the likeability issue. so i want to see whether she moved the needle on that front. >> i'm sure joe biden was watching very keenly where ever he was on the first televised democratic debate and when it comes to the gop, the cnbc is hosting the next republican debate on october 28th. should we talk about what the gop was doing last night as well? since we have some time. donald trump of course he is not

remiss to send a few lobs while he was watching. said there was no star on stage tonight. no star. >> i think that was pretty lame. wasn't it? i mean, usually he's got all these verbal attacks and there's no star. that's it? come on donald trump. >> you wanted something more abusive from the donald? is that what you're saying. >> i never want abusive stuff from him but we're used to more abusive stuff. >> would have been more entertaining. >> that's true. >> let's talk about u.s. futures and we'll get you more on the democratic debate a little bit later on but let's check in on the markets since we had the seven day winning streak for the dow snapped yesterday. losses across the board. the implied open is telling us we're going to be lower. in fact, we're below fair value for all three benchmarks. s&p should be down by 4.5 points. dow jones industrial is below fair value. the nasdaq is looking like it's going to lose about 10.5 points.

european markets are on three day losing streak after snapping that six day winning streak for the euro stoxx 600 on monday. the ftse 100 is lower by three quarters. cac 40 in france also falling. same thing for the swiss benchmark and this follows off asian markets that also close lower being weighed down by chinese inflation data which came in below estimates so there's not much up tick when it comes to the world's second largest economy. cpi rose 1.6% year on year in september against forecasts calling for a 1.8% rise and when it comes to producer pricing we're looking at 43 straight month of a negative read and this latest at a at a set is another sign that deflationary pressures continue to desist in china. >> what's going on with the u.s. dollar? a 3.5 week low. in part because of the china

weakness, concerns about further delay in fed tightening. your row dollar very resilient up by .3%. the pound did weaken but still going strong against the u.s. dollar. 15358 but this is after we had unemployment at a 7 year low but more importantly the wage numbers for the three months up until august, those came in a little bit shy of expectations. in the commodities space what we're seeing is that oil prices are still lower for a third day in a row but the losses that we're seeing are pretty minimal at this point. wti crude is up 46.62. brent crude at 49.04. we get the report on thursday and not on wednesday this week. >> still to come on the program, vladimir putin tells our very own jeff cutmore he's mixing apples and oranges. what is he talking about? find out after this next break.

u.s. futures pointing lower as earnings disappoint. first data preparing to price it's ipo in year and apple loses a patent lawsuit worth $862 million in damages.

>> foreign policy was the most talked about subject of the first democratic debate. hillary clinton out thing her international successes as former secretary of state while bernie sanders from vermont questioned the u.s. strategy in the middle east but it was russia that proved most controversial. >> we got a lot of business done with the russians. we got a nuclear arms deal. we got the iranian sanctions. we got an ability to bring important material and equipment to our soldiers in afghanistan. there's no doubt that when putin came back in and said he was going to be president that did change the relationship. we have to stand up to his bullying and specifically in syria, it is important and i applaud the administration because they have engaged in talks right now with the russians. >> i will do everything that i can to make sure that the united states does not get involved in

another like we did in iraq. the worst foreign policy blunder in the history of this country. we should be putting together a coalition of arab countries who should be leading the effort. we should be supportive and i do not support american ground troops in syria. >> nobody does. nobody does senator sanders. >> let's get out to jeff cutmore. jeff, listening to the presidential candidates it seems like they have great plans for syria but the problem is there's so much confusion on the ground right now. >> yes, this presidential debate was an interesting one, wasn't it? it's consistent with what we've seen with the republican debates that when it does come to foreign policy, president putin's name is never far away from the discussions and he is used very much as a whipping boy i think among the candidates for

for foreign policy at the molt. so let's just deconstruct for a moment. hillary clinton of course famously was involved in the reset of relations between washington and moscow. subsequently as we know, the relationship worsened over the ukraine and now we have syria as another issue here and i think we thought based on what the united states was saying that the russians have done their own thing in syria and they have not engaged in the united states on isis targets. i put this question to president putin here at this vtb event. let's just listen to how he responded. >> mr. president, jeff cutmore from cnbc. thank you for the question. mr. president, over the weekend,

u.s. president obama called into question your leadership over syria. he said that you are propping up an ally rather than going after isis. he also said you're running down the economy here. can i ask you how do you respond to president obama's comments? and what would you say to international investors who are dissuaded from putting money into the russian economy because of such remarks, thank you. >> translator: as we say, you have mixed apples and oranges together. at the military level we asked them to give us the information regarding the targets they believe are 100% belonging to terrorists and what we received as an answer was that they weren't to do that. then the second question was

asked, please tell us which targets should not be attacked by us. no answer received. what should we do then. >> now i think a little bit of the laugher that you hear there is just nervousness and some discomfort. this is primarily a financial conference and i don't think anybody was quite expecting a question to come up on syria but the president gave his answer and the message seems some what at odds with the narrative we have been hearing all the way through here. making the point that he feels that there hasn't been intelligent sharing with the united states and it's allies that would help direct russian air strikes. you have to take a stand on this and decide who you think may or may not have been in the wrong on this story but it will be interesting i think to see whether the u.s. administration feels the need to come out and clarify just exactly what sb

intelligence being shared and if there isn't any being shared then why not at this stage when washington continues to accuse moscow of not attacking the appropriate targets. let me send it back to you. >> we're going to go to break here on worldwide exchange. still to come on the program, one step forward, two steps back. our next guest explains the impact of iran's ballistic missile impact test when it comes to business.

the white house says iran's latest test of long range ballistic missiles on saturday may have broken united nation rules. the u.s. asked them to investigate the tests. at this stage it's unclear whether iran's actions will have any bearing on the nuclear deal it's parliament passed yesterday which hauls the enrichment program in return for a lowering of international sanctions. joining us is the former sanctions director from the u.n. state department. richard, good morning to you. look, if iran is violating some u.n. rules whether it has to do with the nuclear sanctions deal or not, how can we be so sure

they're not going to violate the terms of the nuclear deal? >> that's a very big concern. it's part of the reason why the united states wants to ensure there's vigorous enforcement of sanctions. it's why people are nervous about what this says for iran's broader approach. ultimately what they want is economic relief and they know they won't get that if they violate the nuclear terms of the deal so even though it calls into question their broader approach i would hesitate to suggest it means they're not going to fulfill the nuclear terms. >> if the sanctions are lifted what we're going to be seeing is economic relief and they need that but on the other hand it doesn't necessarily mean that we'll see any change in whatever shape of their foreign aspirations. >> yeah. i think that's right. look, this was ultimately a tactical deal that was struck between the united states and iran. for the united states it was getting reassurance that there won't be a nuclear weapon in iran which is a huge issue obviously. from iran it was about getting

relief from sanctions but this wasn't a fundamental reordering of the relationship or the middle east. in fact, you can make an argument that things in the region are going to get tougher as a result of the deal than easier because of the interests we have. >> you were director of iran on the national security staff. i'm just wondering your take on how iran featured in the democratic debate last night because when the candidates were asked who were their proudest enemies hillary clinton said the iranians. >> we and iran have a long and complicated history and they're an important part of the region. i think that we have the promise sometime in the future of a broader political relationship but it's going to require a lot of work and change and what you saw in the democratic debate and republican debate is we're a long way away from any broader political relationship. >> despite the signing of this

nuclear deal which still needs not only iranian parliamentary approval but u.s. approval as well do you feel they still see iran as the enemy in the u.s.? >> i think there are a lot of good reasons to believe that's the case as well. we have interest and they have threatened our interests and enfwe engage in acts of terrorism. there's real reasons to see them as an adversary but you can have an adversary and still make deals and nuclear arrangements. >> there's been so much about this iran nuclear deal. is it a good deal for the u.s.? some bullet points that have come out suggest that maybe you don't have full access to military nuclear sites. that to me sounds scary especially if they cheated in the past. >> a lot of those bullet points are -- there is not 100% any

time access as you would have post military conflict but the time of cooperation that's promised and written down in the text and that will be tested in imme menation would give the united states a lot of transparency into the nuclear program. >> so it's a good deal? >> as long as it's fully enforced. >> thank you. now program director for the center on global energy policy. we'll go to break. still to come, fraud is a business model on wall street. some of the tough words spouted in last night's democratic debate. more on this coming your way next.

good wednesday morning. welcome to worldwide exchange. >> these are your headlines from around the world. >> a bad earnings omen. jp morgan kicks off the financial reporting season with a revenue and profit miss sending shares down in frankfurt trade. >> a negative outlook sends shares lower after hours despite an eps beat in the third quarter. >> democratish presidential candidates crash in their first debate. they agree the economic playing field needs to be leveled. >> it's our job to reign in the excesses of capitalism so that

it doesn't run a muck. >> it doesn't mean anything if all of the new income and wealth is going to the top 1%. >> the largest u.s.ipo of the year. first data prepares to prize it's public offering in a listing that hopes to raise $3 billion. midweek in the markets if you're tuning in thank you for joining us. let's check in on the markets and how they're fairing ahead of the u.s. open. the dow ending it's winning streak yesterday. the s&p 500 breaking it's own four day winning streak. the futures are telling us we're in for a lower open. we're below fair value for all benchmarks. we're down 4.5 points. dow jones industrials pricing in delines of 30 points and nasdaq looking at losses of 12.3. we're on a three day losing

streak if we do close with these declines we're looking at the swiss benchmark down. the cac 40 also lower by .8 and the dax seeing a sell off and yesterday carolyn, i guess, maybe if we see this turn around because we closed off the lows of a session to finish off a tuesday. >> intel posted a 6% drop and revised down it's outlook in the fourth quarter sending shares in the chip maker lower after hours. better than expected earnings per share of 64. apple has lost a patent lawsuit to the university of wisconsin. the jury found that the iphone maker used technology owned by the university's licensing arm. they could be facing up to $862 million in damaging. >> shares in sandisk spiked on reports saying the firm is a

possible acquisition target. they said some have expressed an interest in sandisk valued at under $14 billion at the close. >> let's focus in on the big televised debate last night in las vegas. the democratic presidential candidates locking horns on their first debate of the 2016 primary season. front runners hillary clinton and bernie sanders seizing the spotlight. the candidates went on the offensive against the current financial system insisting on changes that really need to be made. >> when allen greenspan what said what a great idea it would be to help these banks merge. bernie sanders fought them. today it's my view that when you have the three largest banks in america are much bigger than

they were when we bailed them out for being too big to fail, we have to break them up. >> i have thought deeply and long about what we're going to do to do exact hi what the senator and the governor want with which is to reign in and stop this risk and my man would have the potential of sending the exec withdrew tifs to jail. nobody went to jail after $100 billion in fines were paid and would give regulators the authority to go after the big banks. >> and bernie sanders countered that by saying it's not congress that regulates wall street, wall street regulates congress. let's get live for more analysis on the first televised debate on the democratic side minus joe biden. director of communications at the university of virginia center for politics joins us today. kyle on the morning after, a lot of people are saying hillary clinton really showed up after a

7 year hiatus. she looked strong, triumpant and presidential. >> she towered over her opposition because particularly other than bernie sanders the other three people on the stage are kind of considered to be marginal candidates and just in terms of prestige, clinton has so much more of it than everyone else on stage but i will say sanders is so good at throwing out red meat to the base that i think he's pulling clinton to the left a little bit, particularly on some of the issues involving wall street. >> well, they say to win the primaries you have to lean left and then for the presidential race you go back to center. but did bernie sanders in some way, the rest of the contenders on stage, the other four

gentlemen throw her a bone by helping her put aside the e-mail controversy? >> that is true. in fact, bernie sanders made a pretty impassioned defense of hillary clinton and to stop talking about the e-mail scandal but if there's going to be damaging developments that come through the e-mail scandal it's not going to matter what anybody talks about at the debate. it's going to matter what does the fbi find? i don't think that hillary clinton can be defeated in this primary season by the opponents on the stage last night but maybe she can beat herself if new developmentes come up about the e-mail scandal and we don't know how that's going to happen so sanders can hook good in defending clinton but ultimately that defense isn't going to matter if there's new bad developments that emerge. >> so the point that you're making is hilary, she is probably going to get the nomination and i guess there

isn't that's all that much fighting within the democrats although we did see certain snides between the two main candidates. is what the democrats need to do, isn't attacking the republicans a lot more effectively? >> certainly i think hillary clinton sounded like a nomination front runner last night and she was focussing on attacking republicans. clinton is still a strong front runner for her nomination but again there's minds out there in front of her including the e-mail scandal and questions about the clinton foundation fund-raising so the path to the nomination is over but whether any of those land mines go off on her way to the nomination remains anyone's guess. >> what do you think joe biden was thinking last night, kyle? >> i don't know if joe biden saw anything last night that would suggest that his presence is needed in the field. i think his entry is predicated on a total clinton collapse and

certainly clinton looked better after the debate than she did going in and i think that, you know, i think if he actually was going to get in, probably would have served him well to be on the stage last night. >> all right, kyle, thank you for your time. >> i bet you joe biden was watching last night. >> of course he was. >> of course he was. but you know who else was watching was the gop presidential field. cnbc is going to host the next republican debate on october 28th but they were busy tweeting away as the democrats went head to head on stage. that includes donald trump. sorry there was no star on stage tonight. probably because he wasn't there but we also have a controversial tweet by arkansas's former governor mike huckabee. an off color joke about asians eating dogs. i trust bernie with my tax dollars like a trust a north korean chef with mil my labrado.

>> secretary clinton might be the only person who thinks the obama chin on the foreign policy has been a success. smart power at its best. seriously? >> what are we doing? we have a twitter ipo flash right now for you because we have a twitter flash -- okay. do we have any headlines? we're going to get our lines sorted with the producers and we're going to go to break here but when we come back we'll talk about the big ipo expected to land in new york. it's set to carry out the biggest u.s.ipo of the year. details coming your way next. det moves like you do? try always discreet underwear and move, groove, wiggle, giggle, swerve, curve.

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netflix reporting third quarter results after the bell today and one of the key me tricks is subscriber growth. analysts expect a 3.6 million in the net editions in the past quarter, in part, thanks to its international expansion. total subscribers may hit the 70 million mark though at this point it will be too early to

asset the impact of netflix's recent announcement to raise monthly prices by $1 but analysts still see continued strong growth in revenues and shares actually up, what do you think susan? 130% year to date. >> can you illustrate that for me? where's the chart? it's ksomewhere. >> i'll have it for you in five minutes or so. >> but netflix has been on a tear. that's a very smart investment. >> there you go. >> that's netflix. >> although carl icahn closed out his positions he says. maybe too early but we'll see. from earnings to ipos because it's a big day state side for going public. let's get to landon dowdy with the details for us. >> good morning, the us ipo market is sluggish this year due to overall market weakness but this year's most anticipated ipo is set to price after the bell

today. first data is the largest process or of u.s.e-commerce payments. it's looking to price 160 million shares between 18 and $20 a share and estimated to raise about $3 billion. that's surpassing the former record holder, tall grass energy which raised $1.2 billion back in may. meanwhile, neiman-marcus is postponing it's ipo to early next year. citing concerns over the u.s. stock market volatility but it also shines light on the luxury industry as a whole and the slow growth the sector has seen this year. neiman-marcus filed for a u.s. listing back in august. back to you. >> landon, thank you so much. twitter yesterday announcing that indeed they're cutting 8% of their work force. that's about 336 jobs or so but we have a downgrade by jpm this morning downgrading their outlook and recommendation on twitter which is still not making money after all these years.

jack dorse wrry at the helm. twitter shares trading in germany down 6% or so. let's talk about hollywood and j. law, you have to love her. she's speaking out about gender inequality in the work place. she wrote an essay entitled why do i make less than my male co-stars? the academy award winner said she learned about the salary dpap twegap between them via the sony e-mail attack. she has a point. why does she make less in american hustle than bradley cooper did, than jeremy renner did and of course christian bale? she says it's because women in hollywood are afraid to ask for it because they don't want to be seen as spoiled or labeled as difficult where as her male

counterparts aren't burdened by those concerns. she will be making $8 million more than chris pratt in the next movie passengers. i say go girl. >> she raked in $52 million. she is one of the best paid actresses. she is not the first woman to raise that point. there's been so many actresses in hollywood that made that point. patricia patricia arquette using her speech when she won for boyhood. what extent can you transfer that to a real world. if you're a normal woman in the real world, do you have the swagger, do you have the power that jennifer lawrence has? i'm not so sure. >> it should be expected. >> it should be expected. >> we should be not trying to advocate for equal pay but in this time and world i guess that is the change that we'll see in the future. but j. law. you go. let's check in on the headlines

this morning for you before break. u.s. futures are pointing lower as earnings from jpm and intel disappoint. sandisk shares spike on a report that it could be an acquisition target. candidates are are locking horns and did lock horns on the first debate of the campaign season. looking for 24/7 digestive support?

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try align, the undisputed #1 ge recommended probiotic. earnings per share revenue missing fraforecasts. total net income rising 22% in the three months but this was thanks to a one off tax benefit. jamie dimo said the bank faced a challenging global environment promising to cut another half a billion dollars off of costs. other financials are set to

report. that includes boa, bank of america, black rock, wells fargo are out before the bell. goldman will receive their third quarter scorecards tomorrow. jp morgan shares are lower. let's get out to florida where he is standing by. good morning to you. >> look, jp morgan was that a company specific issue or the weakness of capital markets? >> it was both. the company specific issue is the one that interests me the most. in other words, for the last three or four or five years there's been a battle between the united states government and jp morgan and the battle has been that the united states government does not want this bank to get bigger and the management followed policy.

allowed it to increase market share and put up more branches and jumped to number one in investing banking and trading areas and the government kept putting more and more pressure on the bank by increasing the capital requirement and what we've seen in the last two quarters is that jp morgan lost. jp morgan now is shrinking it's bank and is changing it's whole method of operation and that means that jp morgan is likely to have a number of quarters that will be dispintiappointingl i starts to operate on strategy. but in terms of the broader issue -- >> go ahead. >> sorry just to jump in here, are you saying jpm doesn't want to shrink it's balance sheet? they didn't want to cut head count by 40,000 since 2012? this is being forced upon them? >> yes, i'm saying that very definitely. i'm saying if you look at something which is one of the ratios put on the bank, they

have the highest, if you will, capital requirement, i think of any bank in the world. if you look at things called the liquidity ratio. >> there isn't enough business to go around. isn't that also a reason why they need to cut head count as well? >> depends on the business. if you split the company into two parts. one of which was the traditional bank, traditional bank didn't do badly at all. lending was up. deposits, you know, in the areas of consumer banking were up so you should expect to see regional banks have reasonably good earnings if you take a look at the capital market side of the business, it was seasonably weak in the third quarter and i don't think anyone is going to argue that mergers and acquisitions are going to shrink going into 2016.

you've had two of the biggest deals ever done announced in the last couple of days. trading is simply a function of, you know, the market. trading will come back. money supply will keep growing and asset management values are a function of what market values are. >> but you have to wonder when trading is going to come back and jp morgan had to dampen our expectations saying that everyone is too optimistic now. what do you do with the investment bank as trading and the global environment might still be difficult though we are expecting a rate hike and that will ultimately be positive for the financials. >> well, you know, if i had a husband but i have a wife i tell her to take in sewing to make some money to go buy the stocks. in other words i tell my kids to go get a job washing dishes so they can make some money to go buy the stocks. i think that bank stocks are

incredibly cheap. if you're taking a look at the outlook over the next few months quotas, what are you looking at? at some point interest rates are going to go up. i think maybe in the march meeting of the fed but they're going to go up at some point in 2016. at some point the economy is going to continue to grow at a 2% rate. that's not phenomenal but it will grow at 2% which means it will generate more loans. the money supply of the world continues to grow at an incredibly rapid rate. it's very hard to assume that all of that money is being put into mattresses or into glass jars in the backyard. some of it is going to go into sponsoring trading activity. you're going to see more investment banking deals because the structure of industry around the world requires it. so if you're looking at all the fundamental drivers they're all positive. if the stocks are down now, fundamental drivers are positive you should buy them. >> thank you so much for your

time this morning. asian markets did close lower today. chinese inflation data came in below expectations. this is feeding through to the european market. we're underwater. ftse 100 down by 0.7. >> and this is leading us to price in a lower open for wall street with 7 day for the dow being snapped. yesterday a four day winning streak being broken for the s&p 500. so implied open is telling us we'll be down about 2.5 points. the dow jones lower and the nasdaq pricing in losses of 8 points or so. >> okay. that's it for today's show. >> next up, u.s. squawk box. we'll see you tomorrow. opportunities aren't always obvious.

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>> shares of jp morgan under pressure after the banking giants quarterly results fell short of estimates. china fears inflation data overnight sparking new worries about the health of the second largest economy. the democrats debate. hillary clinton, bernie sanders and three other declared presidential candidates square off for the first time. donald trump was not there but with an assist from twitter he still may have stolen the show. it's wednesday, october 14th, 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 with joe concerner and andrew ross sorkin and earnings season is in swing. a number of stocks on the move including jp morgan and intel. we'll break down the numbers in a minute and then among the companies set to have quarterly results today. bank of america, black rock, wells fargo and delta before the open and then the big momentum stocks reporting as well including netflix. it's not just about the corporate profits. at 8:30 eastern time we have retail sales and the producer price index. later it's august business inventories and the beige book. >> a couple of stories this morning, chinese inflation easing more than