the media company sees it's u.s. subscriber growth fall short of expectations. shares tading lower in frankfurt. >> burberry goes out of fashion. they miss forecasts on weak performance in china. >> walmart pushing the stock to its worst one day loss in 25 years and weighing on the dow. >> canadian drug maker valiant is subpoenaed as the drug

pricing scandal intensifies. >> good morning, quick look at u.s. futures and we're expecting a bounce back in today's trading session. s&p 500. seen up by 12 points, could add 104 points even. up triple digits and the nasdaq higher by 26 points. this is after we closed lower in yesterday's trading session and one of the biggest factors was walmart taking 44 points off the dow. i want to talk about another company first. netflix. third quarter earnings disappointed missing on the top and the bottom lines. the company cites low subscriber growth in north america adding 880,000 new users versus 1.1 million. for more on the numbers she

filed this report. >> earnings came in a penny lighter than wall street projections. total subscriber numbers grew better than expected to 69.17 million around the world but that was driven largely by international growth while u.s. subscriber growth fell a bit short. the company says that was in part because of the transition to u.s. chip cards making it harder to collect what it called involuntary turn. they were still very bullish on netflix's ability to keep growing it's user base despite growing competition in part because of the value the company is finding in it's original programming. >> the more we have amazing originals then overtime we'll be able to ask consumers for more. to be able to invest more.

that's been the rhythm we have been on. >> as for what type of original conflict netflix could make now, they ruled out sports programming saying it's too expensive and not too entertaining to watch sports content after the fact but he did open the door to making a new type of news content saying that the likelihood that netflix will in the next two years complete directly with vice which is going to start making a daily news show, he said, is very high. back over to you. >> it's been a big earnings day in europe too. burberry trading lower. that missed forecasts which are looking for 5% growth. this is caused by the slow down in demand from china which accounts for between 30 to 40%. >> china is, specifically hong kong, it's been, you know, everybody knows there's been a

struggle there. the important thing is to just keep making sure you have a point of view. making sure that you keep your authenticity and making sure that you give the best customer service in those countries. >> right. let's now look atwal mart which has stunned investors with an earnings warning for 2016. the world's largest retailer by revenues now expects eps to fall by as much as 12%. the company blames the impact of higher wages, spending on e-commerce and lower prices. walmart plans to spend $1.5 billion on investing in staff and payrolls as well as another several billion dollars on lowering product prices over the next three years. >> and the news triggered one of the sharpest one day drops in the stock in 25 years and wiped out nearly $20 billion in market value. the shares also weighed down. the dow as well as other retailers, target and home depot, so walmart could spark a

price war. jim cramer spoke to the ceo that said markets knew the high wage costs were coming. >> all we did today was to quantify the move to $10 for everybody. that surprised some people. >> i think it surprised a lot of people. i think people were shocked frankly. the stock does not get hit like this. communications? >> we've known for a long time it was moving to $10 but it is what it is and the news was going to be new sometimes. >> are you buying the stock tomorrow. >> i don't own banything but walmart. >> rising by .1%. stripping out auto sales it dropped into negative territory even down 0.3%. joining us live from boston is ted peters. chairman and ceo at blue stone financial institutions fund. good morning to you.

we're expecting the cpi print today. that's not going to look very rosy either and if you take a look at what the bond market is pricing in now they're not expecting the first rate hike by the fed until march. do you think the fed is behind the curve? >> we're reaching rate increase fatigue. everybody is ready to get these up and get them going. that's not only in the united states. that's overseas as well. there's so many mixed messages at the fed. we just had two fed directors come out and talk about maybe we shouldn't increase rates this year. janet yellen is saying we should raise them by the end of the year. we're not sure what is going to happen and i think the indecision and mixed messages, it's difficult on the market right now. >> do you think that's going to

influence the fed? those expectations that might be in the marketplace now need to be met? because if they aren't it sends out a signal that they're too concerned about how strong the economy is. >> the fed said consistently that they're data driven. they're very very data driven. on the other hand, 8 of the 12 federal reserve districts voted to increase rates. that's really just going to influence what's going on there. it keeps improving steadily and the thing the fed looks at is employment. employment has been good in the united states. unemployment is down 5.1. job openings are up. people are leaving jobs more which is a good sign because it shows they think they can get other jobs. there's a lot of really positive

things on the employment front. >> okay. well let's talk about the consumer front, though. of course retail sales numbers disappointed. walmart obviously shocking the market with it's earnings revision. does that concern you more broadly for the outlook? not just the economy but equities in general when you see that kind of earnings downgrade from the likes of walmart? >> well, consumer spend z has been strong. that was one of the real positives in the economy. it's hard to look at just one company or whatever. clearly the earnings season so far has gotten off to a very mixed start. walmart down, netflix down, some of the bank earnings that have come out whether they be wells or jp morgan chase, they're kind of mixed right now so we'll see how this thing plays out. a lot of ternihe earnings will coming out. the messages are mixed in everything. in the earnings and the economy

and within the fed itself. >> you mentioned a couple of banks there. we'll talk about that a bit later. stick with us. we'll be back with you in a few minutes time. >> valiant pharmaceuticals received subpoenas regarding drug pricing. they intend to cooperate with the investigations. this comes at a time when the sector is under a lot of scrutiny for rising drug prices which is one of the prominent issues in the u.s. presidential election and of course one of the favorite topics on the part of hillary clinton. >> right. still to come here on the show, hsbc staff feel the squeeze. it's reportedly been a tough week for its investment bankers in london. stay tuned to find out why here on worldwide exchange. (vo) what does the world run on?

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china weighs on sales and twitter ceo's other company gets set to go public. >> just want to share with you a

comment, he says the chances of the oil price going belowbelow . let's check on where we are in terms of oil prices right now. we're lower on the day. this is in part because we saw the jump in u.s. stock piles in yesterday's trading session. brent crude at 49.10 just a fraction on the day. wti crude off 46.14. a little pit more than 1%. now hsbc has given cnbc no comment on a report it will impose a 10% pay cut on hundreds of investment bank employees. a times article suggests they would force staff to take two weeks of unpaid leave as part of cost cutting measures. as routine practice we regularly review rates for contractors. quick look at hsbc shares this morning and we're up by 0.4%. >> we have a slew of bank earnings this morning. we have numbers from citigroup, goldman sax and u.s. bank corp.

after jp morgan's miss on the financial sector for more guidance. still with us is ted peters. ted, in this current environment do you want exposure to investment banks or retail banks? >> well, we like retail banks, actually, specifically blue stone likes community banks because we feel that community banks are going to out perform the market for the next 7 to 10 years for a couple of reasons. large merger and acquisition in the retail space and rising tied is going to lift off ships and rising interest rates. we know they're coming. but rising interest rates are going to help the bank space immensely and help the community bank space because of the really strong core relationship deposit. we're bullish on the bank space in general and bullish on the community bank space. >> at what point are you going to be concerned about credit quality though?

>> well, right now credit quality is really good and they're very good but nonperforming loans continue to go down but you're always worried that things could get risky. bankers sometimes have short memories. i was a bank ceo. they have short memories and go back and start doing things which they shouldn't do whether it be in construction lending or development lending or things like that. >> do you think that ceos in the banking space are too short sited? you mentioned the list of energy lending construction spending. are we getting ahead of ourselves now in terms of lending picture once again having forgotten about what happened during the great financial crisis?

>> you have to remember the regulators are tougher than they were precrisis. they're coming in and going through everything with a fine tooth comb. looking at any concentrations in your portfolio. do you have too much in energy, too much in construction, too much in manufacturing and so forth. so i don't see another crisis coming up. >> the only thing that bothers me is the biggest banks. back doing risky things again. that poses a threat to our economy. hopefully the regulators which have been all over them are are going to continue to do that. >> but let's go after the ten or 12 big banks doing crazy things. let's stay away from the regional community banks who are actually doing the right thing. they're bringing in deposits and taking care of their clients. >> it's pretty clear you like those community banks but let's quickly touch on the big gaps we

heard from jp already and the rest are coming throughout the rest of this week and next week. which of the big banks if you had to own one of them would you own? >> well, you know, we like wells fargo. we like it because it doesn't have a huge amount of international exposure but we like it because it's a very well run company. good retail. good corporate banking so if i had to buy a big bank i would go with wells fargo. we think it's probably one of the best run banks in the country. >> thank you for joining us. we have to leave it there. chairman and ceo at blue stones financial institutions fund. >> angela merkel says her country will work constructively on britain with european reform but some principles are nonnegotiable. chancellor merkel is convinced that the countries will find an acceptable compromise to keep the u.k. in the eu.

there has been some trouble ahead of the meeting as juncker seemed to suggest the u.k. might be better outside of the eu. take a listen. what do you think. >> i am 150% in favor of having britain as a constructive member state of the european union. we need britain. personally i don't think that britain needs the european union but that's a matter of conviction others may have a different feeling on that. they will have the same feeling if ever britain would leave. >> and julia joins us live from brussels. that was quite an embarrassing slip of the tongue. >> well, what an english french little translation slip between friends or frenimies. but the press jumped on this

more because they're not expecting anything news worthy today from the negotiations. the rumor yesterday was as far as future negotiations on the relationship together keeping the uk. in it's not going to make much progress today. it will be pushed back to december. what everybody is waiting for is for david cameron to be straight up and tell what he juans. the belief of course is that he doesn't want to write this down because a he doesn't want a benchmark fwe benchmark against which he'll be accused of failure. so wait for it. there's going to be way more talk around this for the next few months i'm sure. in the interim, let's bring it back to swagger. we have been talking about european swagger and confidence. that's what european leaders like to show here. they also like to he show it back home of course. until we start to see them showing some swagger, a blow up between the u.k. and french i

don't think we're moving toward a more formalized negotiation progress. >> i don't want to air the disagreements we talked about an hour ago. is it fair to say these meetings of all 28 members they're unlikely to be where any deals are actually made on this issue. it is surely the separate bilateral meetings which mr. cameron had a few of with mr. holland and chancellor merkel where the actual progress is going to be made and a lot of that is already going on. it's just behind the scenes. >> you're absolutely right and the technical discussions are going on behind the scenes as well but remember when david cameron did his whirlwind tours he said little about the progress he made so i think he got it short. it really isn't happening until after the german and french election. so there's a lot of willingness to negotiate but only as far as they're willing to negotiate and

david cameron has to be cautious about the request he makes. having said that we know george osborne and the german finance minister are on board with giving more freedom along with closer integrations of the euro zone nations. if both can make those conditions work, it will work. back to you. >> thank you very much. >> still to come on the show, reaching the tipping point. why some restaurant owners are putting an end to that extra token of appreciation. that's coming up after the short break. care of my heart.

that's why i take meta. meta is clinically proven to help lower cholesterol.

try meta today. and for a tasty heart healthy snack, try a meta health bar. the ratings agency expects more prolonged weakness for domestic demand amid the volatility in crude. now the president of the world's biggest aluminum producer told cnbc that glencore's plan to slash it's debt pile is feasible. i spoke exclusively to him and he thought the swiss commodities giant had been unfairly punished by the market. >> rusal may be doing the best of our peers. why? we have been in crisis since

2008. debt crisis was very painful. we had quite a big chunk of debt before we step into the crisis and we have been successful to reduce our debt almost two times. we're a structural business, maybe most profitable in the world. >> you cut net debt from $13 billion back in 2009 to $8 billion at the end of june. that's a really big chunk. what glencore is trying to do is a lot more. they're trying to cut net debt by some $10 billion by the end of next year. with your experience and how you can slash debt and how quickly you can do that, is that feasible? >> 100%. >> 100% it is feasible? why? >> they have a diversified business and they have a lot of opportunity not to find it in some of the assets and i still believe it's very -- it's fundamentally very economically driven company.

not unless it's a, you know, let's say colleague, you know, some are destroying the market. we can see what's happened in some other area. and they're very different. that's why they have been hit hard because of coal and energy prices but still, you know, people immediate our product and commodity, you know, needs a good trading mat form and glencore provides the best trading platform in our sector. >> don't keep the change. danmyny meyer is eliminating tipping from all of his restaurants. they will actively discourage tipping and won't allow a gratuity line on the checks, average hourly wages and menu prices are expected to rise. now $25 an hour. that's what many people are now paying. whether it's front staff -- not

necessarily back staff and they always thought this is so unfair because the kitchen staff doesn't get to share in on the big profits. >> but this is a big change for tipping culture in the u.s. but tipping culture is very different. >> totally. >> here it's added as part of the service and already goes to the restaurant. so this is a big change for the u.s. but it sounds like a sensible change because that's already what's in play here. but anyway, something that's going to change sentiment there but we'll discuss it more later in the show. >> still to come on the show, a chip on netflix's shoulder. they're blaming their earnings miss on a very unusual factor. stay tuned to find out what it is. 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.

good morning. you're watching worldwide exchange. >> here are your headlines from around the world. >> red is the new black from netflix as the media companies sees it's subscriber growth fall short of expectations. >> burberry goes out of fashion. the stock plunges after they miss sales forecasts on weak performance in china. >> walmart is stunning investors with an earnings warning pushing the stock to the worst loss in 25 years. >> canadian drug maker valiant

is subpoenaed by u.s. prosecutors as the drug pricing scandal intensifies. >> good morning, everyone. it is 10:30 a.m. here in london. 5:30 a.m. on the east coast. if you're just tuning in and waking up thank you for joining us on the show. a quick peek at how u.s. futures are trading. s&p 500 up by 11 points. the dow jones is seen up by triple digits or 102 points. the nasdaq is expected to open higher. we did close off the session lows in yesterday's trading session but the dow was off in large part because walmart fell 10%. that took 44 points off the dow. i also want to show you what european markets are doing today. we saw the rally in asian trading session. why? because that heightens expectations. the fed first rate hike is going to be delayed some what.

that's sparking the rally in europe. ftse 100 up by 1%. the xetra dax up by 1.4% but we had a couple of corporates that have disappointed. >> indeed, let's start with burberry trading sharply lower after first half sales grew 1% sharply missing the 5% that analysts were looking for. this was caused by the slow down in demand from china which accounts for between 30 and 40% of total revenue. last month cnbc spoke to the ceo in london and asked him about the challenges in china. >> china is specifically, hong kong, it's been, you know, everybody knows there's been a struggle there. the important thing is to just keep making sure you have a point of view. making sure that you keep your authenticity and making sure that you give the best customer service in those countries. >> let's get on to netflix where third quarter performance

disappointing missing on the top and bottom lines. adding only 880,000 new users versus the forecasted 1.1 million. joining us now is tony who is a senior analyst, great to have you with us. clearly there was big initial disappointment to these results although that was paired back. talk us through the main points for you. >> right. first i have to say, netflix is one of the big pioneers of the current tv and media world and, you know, i think that these news is probably a bit overstated. the negativity of it. they added 880,000 subscribers in the u.s. there are some newer services in the u.s. that do sort of copy what netflix are doing that would be happy to gain those numbers. so i mean, for me, as a media

analyst, i would do forecasting on netflix subscriber numbers and these weren't surprising news. according to our forecast. they are tracking in line with what we're seeing internationally and the u.s. so in the earnings quarter they're looking to exceed 74 million subscribers globally by the end of this year. we're look at closer to 73 but, you know, it's certainly not the end of netflix. >> sure. let's also bring in kathie woods. who joins us from new york. good morning to you. thank you for joining us. we talked a little bit about the chip card controversy. do you think that's just a lame excuse for netflix? >> no, i don't. in fact the issue is only a third of the issuers in the united states have transitioned so it could continue to be a problem in the fourth quarter but i think the most important thing is that growth subscriber ads were much stronger than they

expected and average revenue per user continuing to go up nicely both in the united states and internationally adjusted for currency. >> what are the big themes for netflix, it's international expansion. it launched in so many markets in europe last year and now it's looking at asia, recently launched in japan but the big one out there, china, that's been delayed. do you think netflix can crack the china nut? >> it's clear they're still negotiating and we know that china loves great stories just like the rest of the world. they said last night great stories travel and a really good indication is japan. they're surprised at how non-local programming is taking off in japan. it's higher than they expected it to be. there's an appetite for these great stories in asia. >> you're noding your head here

to this international expansion story. how significant is that for you? >> massively important. so i don't know where to start. netflix is going to be global by the end of next year. adding up to 200 new markets or total market by the end of next year and so it's a massive thing. netflix strategy twofold, aggressively expanding internationally, launching new markets and investing in original content to retain new customers and sort of really make the service as attractive as possible. >> let's talk about the content side of things because they're due to launch a talk show next year with chelsea handler and first feature film coming out soon. should traditional broadcasters be very concerned? are they just expanding now into all areas?

>> well, they are areas that perhaps won't work so well on netflix. talking about sports, will netflix branch into sports for example? and i think the answer was sports was something that doesn't really suit the on demand watching. consumers want to see it when it happen. so yesterday's football game might not be so interesting in the weeks to come. but absolutely. what we're seeing is digital video consumption nearing main treatment in mature markets. that means more and more people are watching it and the type of content that's available is starting to compare with what you see on traditional tv. should broadcasters be worried? let's put this into context. so in term of monies earned from digital video about 10 billion

u.s. dollars. compared with the tv market we're looking at 100 million. so 10% of the u.s. market is still digital video and our forecasting period which is five years, that 10% rise to about 50%. >> sure. >> the stock was down 3% after hours. it has risen 130% year to date. is this a stock you want to hold in your fund and why? >> it's a stock we want to hold in our webex fund. the transition to on demand tv is going to take place much more rapidly than your other guest

believes. 10% now. we think 20% is the tipping point and it could happen. 20% in any consumer adoption product is the tipping point and that could happen quickly. also the program they featured and has become all the rage in my house and my office, that is a very interesting product. it's produced in columbia. very low cast. it's brazilian super stars, a french production company. it's a global company so it's going to happen much more quickly around the world than people believe. >> kathie, thank you so much for joining us. much appreciated. ceo and cio and tony thank you for joining us. >> have you watched it? >> i haven't. >> it's such a good show. i did the binge watching of

course. >> well worth it? >> very well worth it. i'll not going to tell you anything about it. >> very good. it's on the hit list. but the german transport minister suggests it believes 2.4 million vehicles have been fitted with the emissions cheat device. he added that vw must remove the software for all models and needs to present the technical details of the fix by the end of next month. this comes as italian police are searching the headquaters as a result of alleged fraud at vw. >> tesla unfailed it's first semiautonomous car. phil was among the drivers to try out the technology. >> tesla is taking a big step forward. today tesla is pushing out software that it calls tesla auto pilot. what is it and why will it now be accessible to thousands of

model s and model x owners? it allows you to to semiautonomous driving when you're behind the wheel. the auto pilot technology has auto lane steering so the vehicle will stay in the lane by itself without you holding the steering wheel or controlling acceleration or breaking. there's also auto lane changing where you can change lanes if there's not a vehicle next to you. we tested this out on the west side highway here in manhattan and yes it does check to see if there is a vehicle next to you. if there is one and you can't do a lane change it won't go over. if it can make the move it will eventually change lanes. there will be auto parking which many put into their vehicles allowing you to do pair lel parking without holding the steering wheel and side collision avoidance. in a conference call late this afternoon in the united states tesla ceo elon musk talked about

the impact he believes it will have on not only tesla owners but the auto public in general. >> this will be quite a profound experience for people when they do it. we have been testing it for over a year. so we got quite used to it but i noticed that when i put friends of mine in the car and they see the car drive, they're blown away. >> tesla has been talking with the national highway traffic safety administration as well as with other regulators as it has developed the auto pilot technology and again, this software allowing semiautonomous driving is being pushed out to tesla owners starting today here in the united states. that's the story from here in the u.s. back to you. >> before we go to break, we have criss crossed the continent in europe in search of swagger but do the policy makers, ceos and other business leaders have the secret to europe's success? take a listen. >> best way is to have more confidence or swagger as you

might say. >> investment is about animal spirits. you need these animal spirits to gather and sure up. >> but fundamentally america is an upside growth forward looking society. by definition europe has a more negative outlook. i would say even more cynical. >> i don't come here for that. i'm always thinking there's more we need to do. >> i would say we lack consistency on the long-term. >> you mention the word bubble and it's the perfect word. they're in that bubble and does not look outside. very few do. they think about today, training, match and very much else. with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data

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♪ ♪ (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. analysts are expecting a quarterly profit of $2.91 a share. citigroup analysts expect $1.29 cents. up 12% from last year. but investors are bracing for a steep drop in revenues from mixed income currencies.

equities trading should have held up better given the market volatility. also do look out for bright spots in the advisory business but that's where goldman usually holds the lead. >> the volatility could play into the likes of goldman's hands because of volumes but we'll have to wait and see. interesting to see if they can keep the roe up as high as hala time but let's talk about ipos. it's been a flurry of activity. some successful and others less so. let's get out to landon live at cnbc hq. >> good morning to you. first data price last night at $16 per share below 18 to $20 a share. the company raised $2.6 billion and plans to use the proceeds from the offering to pay down debt which totalled $21 billion at the end of june. first data will begin trading today at the new york stock exchange under the ticker symbol fdc.

meanwhile, albertsons did not price last night. they signs concerns over current market conditions. the company will reattempt to price today after the bell. early indications at 17 or $18 per share well below the planned range of 23 to $26 a share and last but certainly not least, square files for ipo. the company plans to trade at the new york stock exchange under the ticker symbol sq. perhaps troubling numbers in square's filing though while the total net revenue grew to $500 million in the first half of this year. square saw a net loss in that same time period and are investors still eager to invest? we will soon find out for ourselves. back over to you. >> landon as ever, thank you very much. now we're going to talk a little bit of sports and baseball in particular. canadians out there will be very pleased because jose batista

launched a monster three run home run to lift the blue jays to their first american league championship series for the first time since 1993. the game featured a wild 7th inning where a disputed batter allowed them to grab the lead and lead to a 20 minute delay while they pelted the field with debris. later in the innings three consecutive errors set him up for the go ahead home run. the alcs after the royals dpeetdpee defeated the astros. the designated hitter morales put the icing on the cake with a 3-run homer. >> now the fbi and u.s. justice department are looking into whether the daily fantasy sports business model violates federal

law. that's according to a report by the wall street journal. in 2006 congress banned financial companies from transferring money to online gambling sites. however, fantasy sports sites have operate add under an exemption calling them games of skill. they're trying to determine whether daily fantasy falls outside of the exception. >> we'll take a quick break but let's remind you of the headlines before we do. red is the new black as netflix profits fall 50%. china weighs on sales and twitter chief executive jack dorsey's other company square files for an ipo.

>> you can see the likes of germany and france leading the charge up over 1%. the ftse 100 up shy of 1%. >> also let's show you what u.s. futures are doing this morning. a slightly higher start to the trading session. 106 points if my eyesight doesn't fail me. the s&p 500 seen up by 10 points and nasdaq by 26 points. that's after the dow fell 0.9% in yesterday's trading session. one of the big factors was walmart dropping 10%. >> it stunned investors with an earnings warning for 2016. the world's largest retailer by revenues expects eps to fall by as much as 12%. the company blames the impact of higher wages, spending on e-commerce and lower prices. walmart plans to spend $1.5 billion on investing in staff and payrolls as well as

another several billion on lowering product prices over the next three years. >> the news triggered the sharpest one day drop in the stock in 25 years and wiped out $20 billion in market value. shares aed down the dow as well as target and home depot on fears that walmart could spark a price war. currently walmart shares $60. that is where we are right now but there's been a broad downgrade of the stock by a number of investment banks. the most bearish of which comes from jeffreys which has taken it's price target for the stock right down to $58 a share. also we had barclays cutting the price target. we had credit suisse downgrading the stocks and not looking good on the day after for walmart today. jim cramer spoke to doug mcmillen that said markets knew it was coming. >> all we did was to qualify the moves to $10. >> it surprised a lot of people.

people were shocked frankly. you got to give them that. the stock does not get hit like this. communications? >> we have known for a long time its moving to $10. >> we didn't. >> maybe i should have quantified that in some ways earlier on but it is what it is and the news was going to be new at some point. >> are you buying the stock tomorrow? >> i don't own anything but walmart. >> if i had some cash but everything i have is tied up in walmart. >> maybe there was a messaging problem but higher wages is good for walmart too because much of the money is going to be spent back in walmart stores and boosts consumer spending. maybe that's something walmart lost track of. >> raising the minimum wage and how much will that feed through to the overall economy. in general there's a separate issue for walmart.

it's not something applicable to the market as a whole but added to that we did have disappointing retail sales data more broadly yesterday and if we look at the effect that's having on the overall market you said how the share price move pulled the dow down but if we look at bond yields yesterday we fell below 2% on the u.s. ten year. it's a risk off day and markets were effected by retail in general and walmart as well. >> we'll have to see what the other retailers will be telling us and whether this is a walmart specific issue or an industry wide issue. those numbers from the other big retailers out over the next couple of weeks. >> indeed, we have big banks earnings coming today. for more on that and a preview of the rest of what we can expect in trade, we'll hand you over state side to our colleagues and squawk box. for us here in london for worldwide exchange, that's it. i'm wilfred frost. >> we'll see you tomorrow. bye bye.

good morning, breaking overnight. payment process of first day la prices below it's first range while albertsons delays it's offerings. netflix shares trading lower right now. the video streaming service adding fewer new customers than expected and the reason might surprise you. details straight ahead. plus skip the tip, even for great service. why his restaurants will eliminate gratuities. it's thursday, october 15th, 2015. what is that? 10-15-15. 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 kernen and andrew ross sorkin. troubling data, bank repo sessions soaring 66% year over year in the third quarter. that's according to research firm realty track. a bank's move to take back the house is the final stage of a foreclosure process. these numbers suggest that the backlog from the financial crisis could be clearing up. new foreclosures are back to normal. new jersey has the country's top foreclosure rate with activity more than twice the national average. let's get to stocks and take a look at the futures. yesterday you saw the market was down by almost 200 points yesterday. ended