breaking overnight. apple takes on uber. the tech giant investing one billion dollars in chinese ride sharing service didi. and amazon has a huge anti-trust problem. and wait until you hear what he has to say about jeff bezos. friday may 13, 2016. "worldwide exchange" begins now. ♪ ♪ you ooh ooh ♪ >> good morning and welcome to

"worldwide exchange" an cnbc. i'm sara eisen. >> i'm wilfred frost. friday the 13th. that a thing out here as well. >> happy friday, yes. >> ooh ooh ooh what's going the happen to markets? >> the markets are down. that friday the 13th spook. yesterday we were mixed. saw the s&p slightly positive. the nasdaq slightly down and the dow was flat. looking at pretty much mixed flat performance for the week as a whole. which given the extreme negativity we've seen in the retail is not too bad. we are called lower by about .4% which equates to 80 points for the dow. the u.s. 10 year. 1.724% rite naught. >> global market picture. europe, strong gdp numbers. double what analysts were

expecting in terms of annual rate. not doing a lot to help the indices. declines across the board. italy the hardest. the banks have been at the forefront of the selloff. >> over night in asia we saw a mixed picture. half percent gain in the nikkei the day before. 1.4% decline overnight. also losses in hong kong down 1%. and shanghai down .3%. >> nikkei managed to eke out a slight gain on the week. keep that in mind. of course started the week better than it's ended it. >> also in earnings season a lot of even bottom line misses. i think about 60% of the companies that have reported in japan have missed. >> and toyota was jus -- over

the last couple of years they have been benefitting from the weaker yen. oil prices have had a strong weak. we're off today. 47.8 for brent. the dollar the broader index is up today. weaker against the yen. the nikkei suffered in the face of the stronger yen today. not too much movement against the euro and the pound. also a quick look at gold prices. how is gold shaping up this morning? it is in the green and up half a percent, 1277. >> today's top corporate story. and this is a big deal. apple investing $1 billion in didi chew shiuxing the deal comd speculation. the company has hired automotive experts and although the firm

says it is looking to focus on the incar experience, some are wondering if apple is looking to build a self-driving car. that is one speculation. apple shares dropped below $90 a share yesterday for the first time since 2014. concerns about slow demand ahead of its next iphone launch which is expected in september. that is the iphone 7, weighing on the entire apple economy and share price. there is the overnight action. watch out for stocks like these. interesting son so many levels. we care about the apple angle with the stock at 2014 lows. they don't usually do investments like this. the last big deal they did in the billions was -- but they usually fold in companies.

this investment in china, is it about the technology or is it just trying to make nice with the chinese government after we know how critical that market is after icahn raised concerns about whether apple and clyne going to be able do business. >> i completely agree. the two points the apple pay point. last year -- they skipped a level in china. everyone has smart phones. they don't necessarily have laptops. most internet paying does in fact happen on smart phones so getting into that area is an area they want to do. also i think that pr point in terms of smoothing things over with the government by making an investment in a very much chinese company. didi -- is what the company used to be called of.

very much the eeber of china. on the surface it looks like a strange investment but only one billion. it is not huge relative. >> to 230 billion cash which mostly overseas. it doesn't make a dent but it is interesting. because it is apple and because of the backdrop apple is suffering right now in the market. we have our beijing correspondent on the phone right now. u unis are you there? >> i'm here. >> tell us about didi chuxing? >> it's definitely competitive in the marketplace. it really dominates the market with the ride sharing industry and some of the numbers are amazing. 11 million trips a day. this was their biggest single investment in the company and

also something that's interesting about didi is that it is not a state-owned company but it is state-backed. so didi has investment from the china sovereign's wealth fund and because of that i think it really follows upon the discussion that you guys were just having. that some analysts have been seeing this as a way to bolster their relationship to the government and show apple is committed to china. willing to show they are going make a very large investment in the chinese economy as well as in a chinese technology company. >> very interesting eunice. thank you so much for calling in. we know she's on vacation right now. eunice yoon and a critical thing. not stain owned but state backed. also suggests this deal came together relatively quick. in a matter of weeks. we know tim cook has been over in china. he's been really trying to smooth relations as that market is so critical. >> points out another thing with

apple. if you are worried about growth in it's core smart phone business, it can start investing. one billion is a small percentage of the cash pile. it is not going to do anything. they could do this on all sorts of areas and all sorts of geographical regions just to explore why their next innovation could come from. perhaps self driving taxi cars. who knows. >> we'll see if investors give them that privilege and right. the analysts have held on. cramer's been say we need to see some downgrades in capitulation to really get this stock to bottom. below $90 a share this morning. we'll see. it might get more expensive for apple to make peace and that could be considered a negative. o. >> more about central banks. >> janet yellen turns out won't

completely rule out negative interest rates but the fed share also says the tool would need a lot more study before it could be used in the united states. her comments in response to written questions from a congressman following her february testimony on capitol hill. yellen once again saying the fed does plan to raise interest rates gradually. assuming the economy continues to strengthen as expected, remember this is the testimony she said negative rates were just starting to become a thing and she was just elaborating on that point. >> south korea keeping policy rate at a record low today for an 11th straight month. the decision was expected. analysts are expecting a cut next month. india's central bank stuff and here is what when he had to say to our colleagues. >> we have to create a framework

of whereas allowable and what is not allowable in terms of policies and policies that have large adverse effects for other countries should be considered with great caution. and so i've been calling more for rules of the game in deciding monetary policy can't be what's good for me i'm going to do regardless of what the effects on the rest of the world are. >> and then asked whether the fed should hold off a rate hike he says the u.s. central bank has been fairly transparent and it is not his place to tell them how to act. >> we wrap up with no less than four economic reports. big one even is anticipating is april retail sales. sales are expected to rebound after a decline in march. while wholesale inflation is seen ticking up following a surprise drop. 10:00 a.m., may consumerentment and march inventories.

and courtney reagan here this morning. brian moynihan sitting with me yesterday. we talked about stuff. and in particular if the positivity we saw in march compared to january and february had continued into april and may. >> if you think about it from markets activity, trading activity what these guys out there are doing, it is as trong as march and continue to improve. some deals aren't getting done some stuff and it is coming along but it just takes longer to restart the engine. >> -- crucial issue in the first quarter i asked had that spread. >> the activity in our commercial portfolios is still

strong. from the a credit quality is still strong and oil and gas frankly is mitigated because top obvious issue of prices have changed and you are working through things. very strong and continues to remain so. >> resounding answer i think on asset quality. and if you rewind back to february how much that was front and center for the banks just four months an, he was very relaxed. >> so things have really called down. shake shack rising on better than expected report. >> after the strong results company hiked full years guidance. to the successful launch of the

fried chicken sandwich it rolled out in january. and also announcing it's up the number of planned restaurant openings from 13 to 16 additional locations this year. shares spiking 5% after hours. execu overall the firm expects food costs to leverage. >> more stocks to watch. shares of nordstrom getting slammed. latest retailer to post huge miss on top and bottom lines. the higher end department store also warning on sales down 17%. and vimeo report inging a rise profit. and back to retail. dillards missing first quarter

earning earnings. en. >> whempb we come back. that retail --. nordstrom. what is going on in department stores? that's next. and happy birthday to stevie wonder today and it is appropriate that we are playing his song supersticious. and black cats crossing the path, it is not necessarily something the market should be fearful. the market has been positive most of the time. josh, don't you have friends coming over? yeah, so? it stinks in here. you've got to wash this whole room are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use febreze... ...fabric refresher whoa hey mrs. walker inhales hey, it smells nice in here

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x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. nordstrom down more than 17% in the pre market after a huge miss on both top and bottom lines. also warning on sales for the year. courtney reagan joins us with what's been one disaster after another. >> interesting that nordstrom had been a standout for a long time. and now this is the third quarter where they have really disappointed so when we thought perhaps it was an aberration,

there is no hope that is true. it is definitely a trend. and what was very interesting is nordstrom has two parts. the bigger business are the regular, full line department storms. then also nordstrom rack and the website. >> did well. >> yes. almost exactly opposite of the regular store. so those say a lot where consumers are shopping and see value. >> does the nordstrom result suggest online versus offline and not this cyclical consumer fear? >> i think yes or no. i think it is a problem for department stores right now. over time apparent clothing sales have fallen. so that pie has gotten smaller and then the number of players going after that pie has increased and online is definitely playing a part. nordstrom though is actually one of the better retailers on line.

something like 20% of their sales. from other retailers it is much smaller. but it is just not the merchandise people are wanting to buy right now. >> i've read the nordstrom transcript. and i was stunned at how technical some of the analyst questions were given the fact that this is a sector and a company facing some serious structural exist tenl head winds. what is the questions investors need to ask themselves whether to buy on this major dip? >> there are big questions going forward about the future of department stores and that traditional model. so i think investors really need to ask themselves whether or not they believe this is a sustainable model going forward. i think there will always be a place where physical shopping and brands will always be important. do you need to go to nordstrom

to buy those or go right to that website. >> or amazon. we haven't even -- >> or you go to amazon. all these reports. i don't doubt amazon's dominance but clothing is very hard online. return rates are 30-40% for people buying clothing online. so that is a hard business. but then again look what amazon has done to everything else and they probably don't care about profit in clothing. they just want the market share. still to come smob else that is not doubting amazon's dominance. that's donald trump. he argues they have a big anti-trust problem. stay tuned.

welcome back to "worldwide exchange." politics. donald trump has amazon has a huge anti-trust problem. the online retailer is a monopoly and getting away with murder tax wise. he also said jeff bezos who owns the washington post is using the paper to get congress to not tax amazon the way it's supposed to be taxed. amazon is not commenting on the story.

this is just another example of a war of words between donald trump and a big technology company. it's happened with facebook as well. >> interestingly the kind of anti-trust attack usually goes well with voters. amazon is a darling if the consumer makes things cheaper for them. >> consumers can also relate to how dominant it really is in our lives. we were talking about how department stores are suffering so much. and the tax avoidance and the populist corporate bashing. such a theme on both sides of the aisle during this campaign. >> sticking with trump. mark cuban is supporting him for president. but you may not know it from what he says. he says trump is that friend you just take your head at. describes trump's candidacy to

seinfeld because his campaign so far has been about nothing. cuban says what trump has tapped into is people don't trust government and that is why he has supporters. brian moynihan sitting down with me yesterday. i asked him what a trump presidency would mean for banks. >> our job is not to tell people -- make that kind of analysis. the reality is we need a president and we need a country that is focused on growing and focused on investing to grow. and we take a president and leader and congress because it takes everybody and a business community and a regulatory community to support growth, support investment infrastructure, support reasonable tax reform and getting it right so we don't have the kind of things that go on. a reasonable immigration policy because we need to bring all the talent in the world to get here. people like yourself. and they can do great jobs here. and i think the question is as it comes together in the platforms get known that is when i think people can make their choice about the future. >> i certainly get that broad

view in terms of the economy needs to grow. but the banking sector in particular has been hit by all of the candidates. if we focus on the democratic side for example. would clinton not be a much better candidate than bernie sanders for banks specifically. his rhetoric particularly negative. if you think about -- i'm just -- we don't get into the discussion of individual candidates and i don't think that is right but if you think about what the regulatory fraternity across the world has tried to insure since the crisis is simple set of equations. more capital. get the equations light. the liquidity. the scope of activities right. and largely that is done and both parties whether you agree it is too much or too little. and agree that a a lot of that work is done and we got to make sure it all works and that i think is the challenge head. i'd like to see is constant focus in let's getting these things more correct at the margin because there are

elements that put together quick and we at -- >> a lot of that work is done. -- coming up also the living wills. are you confident that you will pass both? >> we got some task to work with. we probably spent a billion dollars on a resolution plan. it is in our best interest to make it work. we take it very seriously i think we've got to plan in place to make it work and what's important is not only it works for our company, all the participants it works for because at the end of the day we all stand for each other in some prospects because the fdic and liquidation and we've got to be able to lick date the banks and keep the markets calm. that was the lesson from 08. the question is just work and -- >> brian moynihan on politics.

more comie ing up on the intere rate environment. >> good interview. when we come back apple investing a billion dollars that chinese ride share kaud didi chuxing. show me movies with romance.

show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. apple investing a billion dollars in a chinese ride hailing service.

>> bank of america speaks out on markets, economy, interest rates and more. >> retail rack, nordstrom shares plunge. it's friday may 13, 2016 and you are watching "worldwide exchange" on cnbc. ♪ i got a feeling ♪ that tonight's gonna be a good night ♪ >> good morning and welcome back to "worldwide exchange" on cnbc i'm sara eisen. >> and i'm wilfred frost. happy friday to you. let's get you up to speed on the markets now. >> u.s. equity futures under pressure. if we see a decline we could be looking at the nasdaq down four weeks in a row. the dow and s&p looking at the third straight week after losses. we'll see what happens with futures. we do have a number of economic reports, including the april retail sales. later this morning, for now dow futures down 80. s&p down 10. nasdaq down 22.

as for the 10 year treasury note yooeld. we've seen yields back and forth this week.ield. we've seen yields back and forth this week. 1.72 this morning. ppi at 8:30. >> today's top corporate story apple investing $1 billion in didi chuxing. the stake in the uber rival will help apple better understand the crucial chinese market. comes amid months of speculation. although the firm says it is just looking to focus on the incar experience, some wonder if apple is looking to build a self driving car. shares dropping below $90 for the first time since 2014 on concerns of slow demand of its next iphone launch. that is weighing on the apple economy. the tech giant suppliers have

tumbled on demand worries so watch out for stocks like these. this deal is not typical for them going outside of their normal geography and space. this ride sharing service has 80% market share in china. not state-owned but it is state-backed. and how much of this is to appease the kind government to invest in the local company as opposed to the foreign invader. >> because tim cook is very aware of the concerns around apple stock. yes demand and the idea that the smart phone market is matured and stopped growing but china is a big part of that. china was a key growth market for apple two quarters ago growing more than 80% last quarter, sales actually declining there. he pinned it on problems like currencies and then karl icahn

on this network comes out and says whether the chinese government is going to law apple to come in and be friendly and do business. perhaps this deal is a signal that apple is really trying hard to do that. as to eunice's point trying to get on board in terms of investment in a company that has been state backed with china. >> the the other thing is exposure to mobile payments in china. last year in 2015, 360 million people made payments via the mobile internet in china. taken up much faster than here because smart phone access is perhaps people's first access to the internet. so there is a lot of competition -- >> -- >> indeed. ali pay also the big leader in that space. so 80% market share this company has in china and ride sharing. 11 million trips per day. >> apple shares are under

pressure in the pre market again. we'll see. it doesn't make a debit in the cash pile at over $230 billion for apple. but is it going to get more expensive for apple to make nice with the chinese government. slight declines in europe. half a percent decline more the dax. -- and making germany the fastest growing g 7 nation in the first quarter. france down half a percent. heavier declines in places this morning like italy where the banks have been under pressure pretty much all week long. as for the overnight in asia. sharp decline for the nikkei in japan. reversing the day before's gain. the nikkei closing down 1.4%. 1% in hong kong. .3% in shanghai. japanese yen overnight continues to strengthen and continues to

wreak havoc on some of the corporate japanese companies which have all been reporting and a lot have been missing estimates. oil prices also under pressure. wti down 1%. joining us now is john killduff. good morning. >> good morning. >> it does feel like the path of least resistance for oil has changed to the upside. is that correct? >> yes. certainly in a bullish mode right now where the bullish moments or factors that come into this market get seized upon and the bears get ignored at this point. >> how much is the softer dollar helping? and how much is it fundamentals? >> i think the dollar situation is a big part of it and for me it is quite a conundrum. hard to square how the dollar can keep falling and the yen can

keep rallying when you have diametrically opposed plans. but as well there is a push in pull in the fundamentals for oil for sure. several acute outages from several of the major producers. the canadian wild fires are well known. less well known are lot of attacks in nigeria by rebel forces there or just the population once again tapping into the pipeline to get fuel for domestic needs. venezuela problematic l flip side is the iranian production i think has surprised a lot of folks. they are back already. >> isn't that already in the market though. >> no i think that was discounted. most of the market seemed not to believe they had the capacity or will to get back to pre sanction level this is quick. as of this month they already are. >> so does that mean you are forecasting a lower oil price or you think we've found a comfortable area? >> i think we're going lower. i'm forecasting a lower oil price. i think the currency head wind

is going to emerge. there is no way the dollar can stay this low versus some of these major currencies going forward here. and we are still --. the russian energy minister cited this himself this morning. and this will not clear as quick as folks things. i don't see this until at least q1 of 17 or not later. given the problems are easily fixable and rushed back to market because they are desperate for the money. >> big players like china what is the demand outlook there. >> that is the other achilles heel to this maurkt right in and out. the asian demand center which is key, not looking good. china, japan, south korea, all of them struggling mightily. having to step up and do more economic and monetary stimulus to try to get things going again and that is essential to this price holding up here in the face of all of this supply.

>> so do you think what the iaea said they are expecting a dramatic reduction in oil stock at a end of the year. >> i'm not buying that. and i think they get swayed to a degree by some short-term indicators or swings. there's certainly been strong gasoline demand here but look for consumer resistance and i don't think the numbers are going to be all that robust. especially again the big achilles heel is asia -- >> against consensus, john. consensus is that supply and demand, we are finally getting rebalancing in the second half of the year. >> i've been off the reservation before. and it is lonely times but that is what they pay you for. >> john thank you for joining us. right, back to bank of america

ceo, brian moynihan who sat down with me late yesterday in new york. i asked about the interest rate environment and with he can hit the bank's roe without further rate hikes. >> it is harder. because as a hundred basis point parallel rate rise means 6 billion dollars now as of last quarter. hard but it can be done. we've managed about -- in the first quarter we had some accounting adjustments that take those about we're about 8.5%. the path to make that up to 10 is in front of us. rates would push it above that. so we've got a path that we can get it to acceptable or bovr our cost of capital without rate raising. it just takes a lot of work. give you a sense. since the beginning in the last five years we're down about 80,000 people. that is the entire employment base --. amount of change going on in our company. we got to keep doing that to

brick the cost structure down and we're working on that. >> cost structure gets focus if you look in absolute terms or relative terms versus your revenue. competitive banks of similar size it doesn't come out top. do you have to get that down lower? particularly if we don't see another rate hike for a year? >> absolutely. and we've done it every quarter for 20 quarters in a row. so if you think we run about 66, 67% efficiency ratio. we should be able to get it down to 60. we got to get it down closer to that without the rate rise asks that will put us above the 10% and thing likes that. the reality of is that is that it is hard work to keep reengineering the company and taking out the cost and doing it careful so we serve the companies. making massive investments. more salespeople this year than last year and almost all the businesses so we keep adding people to generate client

satisfaction, more sales, more service. at the same time you are taking it out of the back end and also making even the front end more efficient. that tradeoff is trickier than originally. if first triage was quick. now it is just grinding it out quarter by quarter. >> and despite that there still remains quite a lot of pressure from shareholders from the investment community on your cost revenue ratio. when you see big financial institutions like aig face up to activist shareholders pressure. just this week mr. paulson's been added on to the board there. do you have a fear you could be next. >> >> we continue to do our strategy. and director got elected by 94, 98%. think the shareholders understand the strategy. that is large company and we continue to make progress. little more to go to get to the threshold level and we'll get that done over the next couple of quarters if you look at the way it will play out. >> brian moynihan ceo of bank of america. and sara the shares are still down 14% year the date despite

the rally since mid february. mr. moynihan telling me he's never saling shares, continues to take a hundred percent of bonus every year in stock. he's happy with it. >> vote of confidence. >> top trending stories today. mcdonald's giving fresh beef a test run in 14 dallas locations. the company's signature sandwiches the bacon clubhouse and double quarter pound we are cheese will be made with freshly ground beef replacing frozen patties. a change for mcdonald's perhaps. they continue to move to where the consumer is going. the question is how expensive would that be if this was a successful test run to put that into 25,000 or so locations? >> better idea in my eyes than those kbarlic fries we talked about. >> i'm into the garlic fries. >> agree to disagree. meanwhile burger king is turning up the heat in a way you might not expect. this burger king in finland

installing an inrestaurant sauna. guests can enjoy their meals while wearing burger king robes and playing video games. >> this has to be a cultural thing. saunas are very big in finland aren't they is this. >> extraordinary. sauna. can you imagine pouring with sweat really hot eating a wurger? >> no. >> and also in a burger king? >> -- colors. >> i think we must have missed the point on that. >> i think it's a cultural nuance here. taylor swift rocking out by herself to the darkness 2003 hit song i believe in a thing called love off her apple music friday night rocks play list following the massive success of the singer's first apple music commercial. the song received a 431% bump in itunes sales worldwide.

this one is much mur taylor swift. this is her risky business dancing around by herself. look what's happened. taylor swift went from having a massive fight to wouldn't even be on apple music. >> its endearing. i'm a big swifty. >> when we come back today's must reads, including why slelden adelson says he's endorses trump for president and republicans should follow suit. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪

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i went to the washington post. and sheldon adelson writes "i endorse donald trump and here's why. he explains the alternative to trump being sworn in is frightening. for nearly 8 years republicans have fought tooth and nail against president obama and his policies. we waged battles over debt, government spending, obamacare and the iran nuclear deal. he said basically if you are voting against donald trump -- and he went straight to republicans who are not voting at all. that is just enabling a third presidential term for obama in the form of hillary clinton. >> i'm not engaging after that revelation. apparently before i arrived. sara campaigned if she be able

to call me will. that's outrageous. try to change my name for me. right. we're approaching the top of the hour so that means the team is getting ready for "squawk box." the beautifully named michelle caruso-cabrera. >> hello. -- retail and election and what he's thinking and maybe about that sheldon adelson op ed you were talk about about. apple in this billion dollar investment and this ride sharing deal in china. and why they doing is that? it's only a billion. they got another 200 billion to go. why do that? and is it a political thing?

is it a real investment in terms of trying to expand the knowledge base in china about apple software platforms as well? all those discussions coming up. >> sounds good. >> michelle we look forward to "squawk box" in 10 minutes time. >> coming up here futures pointing to lower look at wall street. could today's economic data change the picture? a highly anticipated retail sales report. can an established bank move like a start-up? it's a question we get from some of our largest banking clients. the face of their business was tellers.

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for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy. welcome back to "worldwide exchange." the dow on pace for its third straight negative week. futures pointing to a lower open. joining us now is chad morgan -- portfolio manager . thanks for joining us. look at declines in the market today but for the week as a whole we're basically flat. is that encouraging given how negative the retail sector as has been. >> it has been quite negative

and we believe global growth and in particular here in the united states will continue to be subpar, below trend. and just retail sales is one indication of it. we're telling investors to move up the quality spectrum and become much more pragmatic and expect volatility. we're in a lower turn environment. expecting 3-5% total returns for the s&p on 2016. >> e with see number likes nordstrom. kohls yesterday. macy's before that and the entire sector gets hammered. beyond just department stores. we saw walmart, for instance, dragged in and nike and all these other names. so what is the strategy. do you bottom pick now for the winners in retail or avoid the sector is this. >> retailers, we think walmart is quite fair and all you need is a modicum of improvement to get that 15% over the next 18

months on total return base. also you may want to look at tj max. but you want to go with the highest quality names. yes there is an issue with amazon coming in and repricing in a deflationary environment on retail. so you want to be quite comfortable with the best of where'd. >> markets more generally, markets suggesting more conviction in and around these levels. is it suggesting people believe the valuations or is it just a flush out before the summer and people move off heavy trade skblg i think there is a lot going on. investors are trying to figure out what is going to happen with the brexit, the federal reserve and trying to square the books here. we're at a full valuation. forward looking multiples ruffle 17 times forward. and at this juncture. >> what do you buy in stead? are bonds better price to you? >> in some cases yes. what happens if you do get a

brexit? what happens to the long end of the yield curve? and this is a shortsighted view now. what happens if the federal reserve does decide to move in let's say december? you're gonna get a yield curve we believe that will flatten. it won't steepen. so you want to take this into consideration. that is the short-term view. talking about six months. when you go longer term and look at the s&p total return you have about 5 and three quarter to 6% total return within the s&p next three the five years annual basis. >> if you like treasuries you also like stocks with bond like -- dividend payers is that the strategy is this. >> great question. we don't like companies that just have high yield because they have a tremendous amount of debt. we'd be going with a dividend grower. look at dr. pepper, pepsi. squalt companies where revenue growth is apparent and value

sheets are underleveraged. in particular as you start to see central banking changes not only here in the united states but also within bank of england as well as bank of japan. >> does apple below 90 a buy opportunity? >> i would wait to see revenue again and operating and gross margins. this may be a situation where you start to see margin pressure over the next 18 months so they are going to be taking down estimates. >> is it a head wind for the entire market. >> ominous point. we are look at the technology company here. so obsolescence and competition. i do believe it is an indication of global growth, particularly within china is going to be somewhat lackluster. >> thank you. >> thank you for having me. >> what are we watching for me? nordstrom and the retail sales. >> and for me it is apple.

that does it for us on "worldwide exchange." "squawk box" next. have a great morning. ♪ make a statement... make sure it's an intelligent one. ♪ the all-new audi a4, with available virtual cockpit. ♪ technology moves faster than ever. the all-new audi a4, with apple carplay integration.

good morning. retail wreck, nordstrom the latest victim joining gap, macy's and kohls with losses of more than 15% this year. and apple take on uber with a billion investment in a chinese ride sharing service but apple stock continues to slide, down nearly 20% in a month, below 500 billion now and below google in market cap. and donald trump is taking on amazon saying they have a huge anti-trust problem. friday may 13th, 2016. a very lucky day and "squawk

box" begins right now. ♪ ♪ >> live from new york where business never sleeps, this is "squawk box." >> good morning. welcome to "squawk box" here on cnbc. i'm michelle caruso-cabrera and joe kernen. becky quick is off. u.s. equity futures at this hour are negative. they suggested dow would open lower nearly 89. overnight in asia, down across the board, nikkei lower 1.5%. hang seng lower. shanghai lower. european equities are negative this morning as well. the dollars stronger this morning. wti is