good morning, everybody. welcome to "street signs." i'm very glad you're with us. we have an hour together. here at the top of the hour, what a better way to start the show than the german data that's just being published. german business moral rising. business climate index 110.5 in october. so that's what we're hearing.

110.5. a little bit better. i'm look iing at the current conditions. 115 for october. the con season us is forecast was 114.9. they would be just a little bit on that one. here we go on expectations index. 106.1 versus the forecast of 104.5. so expectations is quite a bit better than anticipated. the current conditions more or less in line and the overall business climate index 110.5, which is also a little better than anticipated. the euro dollar, 108.77. we have seen is hovering for the last couple sessions. let's talk more about the lawsuitest round. the senior analyst from the markets is with us here at the top of the show. good morning. so the expectations index, that's a nice one. >> yes, it is, definitely. it's confirming the picture we saw from the pmi figures from

yesterday. they are sending a a signal here in the second half of the year. it's a little bit against expectations because most were expecting the uk's decision to leave the, u would have an impact on economic sentiment. >> why do you think it hasn't had so far? is it one of these things in a year's time things are going to come home to roost? why aren't we seeing more of an impact now? >> first of all, we haven't seen an article 50, which we are still waiting for and it implies it can be a a very short period of time where growth will be strong because we'll have a a lot of political uncertainty next year. the german elections, but looking at the short-term, it's very positive. and it follows a a period where private consumption has been strong for a very long time and the finance and conditions supporting businesses. so that's the reason we see this pickup in investments at the moment. >> the final conditions, especially locking at credit

growth, it's been pretty strong. how do you think the ecb is lock at the data or are they even looking. >> back in september, they have never worked better. now they seem a little bit concerned that the plan we have seen in bank stocks will affect lebding to nonfinancial corporations. usually there's a lead into lending. i think they are following these figures very closely at the moment. that's the way to see if the monetary is work iing. >> you talk about the uncertainties. a a lot of our guests of late are bringing up the uncertainties on the political front. germany with the big elections coming. france as well. you think it's going to translate to trading uncertainty or more going to be trading uncertainty like physical trade uncertainty or more on the markets? >> it could be trading uncertainty at the market, but

we still have the ecb as an important backstop. central banks have stepped in and will continue to do that because they don't like the uncertainty. they are still ahead in terms of reach iing their targets. >> senior analyst from danske bank. the markets have been open for just over an hour now. up by .03%. you saw a lot of upbeat in the states yesterday on these better than anticipated corporate results. we'll get on to more details in a bit. but the main european markets this morning mirroring a similar story as you can see on most of europe. we're trading a slight positive territory. but by and large, we're hanging on to these gains by half aer

percent. to the upside, tell come is up by 2%. basic resources up by 2.5%. you'd note zinc. coal prices reaching new peaks. both helping the auz si dollar giving these are among their biggest exports. that's what we're locking at with regards to basic resources, what do you know? shares rallying after the norwegian producer posted third quarter that beat expect taugss. that happened as higher prices more than offset metal sales and negative currency affects. the forecast global demand to grow by 4 to 5% this year. the cfo of norks is with us. you swung to a profit for third

quarter. a net network over just 1.1 billion norwegian. what's grow iing at the moment? >> we really see growth in all the main markets in the world. obviously, china being the main factor behind this growth. probably growing roughly 7% for last year. so good demand growth in china the way we see this. >> you have affirmed your global demand growth of 4 to 5% for 2016. the ceo saying earlier you anticipate it will be in the higher end of this range. is that down to volume growth as well? is it down to the chinese market driving things? >> basically two things playing together when we look at this. one is we expect to come in at the 4 to 5% range. also the supply side is lower than anticipated earlier this year. we have much more of a a

balanced markets is the way we look at 2016. >> what does that mean, balanced markets? >> it means that the production supply is more or less balanced so e we don't see the inventory build up since the financial crisis. it's quite strong change for us. >> but that's down to an adjustment coming from your consumer or your part? >> the substitution market where we see continued strong substitution going forward. >> how big a market? or how big is the growth switch there?

it's quite a significant growth for our industry. >> you said 13%, is that right? >> e yes, i did. on an annual basis. >> what do you make of the global environment at the moment? we're still trying to figure out whether or not it's a real recovery that we're e seeing and whether it's speeding through to the patches that are still seeing quite a bit of weakness or whether or not it's a recovery being maintained by this everlasting. it's relatively low levels. the way we see it remains strong. china, very strong. quite a bit on the back of

government stimulus. >> any areas you're seeing a little bit of dampening, you cover the aerospace industry, the auto industry, any areas you're feeling a lult bit of hesitation? >> it's really within what we define as transportation, the truck and trailer demand in the u.s., which had been quite significantly down in second and third quarter this year. we believe that that is very much based on the activity level in the shale and gas in the u.s. >> we have seen shale coming back to a certain extent. >> there's a a little in the activity level when is you pair it to truck and trailer demand. so it wasn't very high levels

back in 2015. obviously the shale plaus will pick up again, that should over time give some growth in the truck and trailer market together. >> how direct is the oil price volatility? how directly do you feel it on your company? >> we feel it mostly on the currency side. obviously, weak price has tendency to weaken currencies. which has effect on the earning situation for our company. >> ivan, good to speak to you as well. atomic number 13. the third most abundant element in the earth's crust, but the

most abundant metal on earth. a little known fact for many of you. net income by 12% to 193 million euros while it's core earnings rose 9% ahead of estimates. it told cnbc the offer for job site monster is fair. it would help to boost their duj tall offerings in the future. >> the acquisition is not because of growth. it's because of improving sbo the digital space. more access to candidates, which is very important. we bought five companies absolutely in the first half year but it's not ours yet. it's too soon to tell. >> third quarter profits beat expectations thanks to a pickup in sweden and baltices.

earlier we spoke to the ceo about sweden's housing shortage. >> you have to remember that the underlying problem is that there's not enough new houses built in sweden. there's a huge undersupply and this is the root cause of this. e we need about 700,000 new houses in the next ten years. the production is around 50 at best a year. so this is a huge problem. it drives prices up. it's not good. >> the third quarter earnings beaten expectations. they delivered 574 million years against estimates of 600 million. the material sciences group spun out back in september of 2015 has also raised uts volume

forecast slightly. the company's ceo spoke to cnbc about the factors leading to the revised forecast. >> we have delivered all our principle promises and saw very strong first nine months and that's what led us to give us stronger outlook. we're giving goi dance around 1.9 billion yore for the full year. >> now at heathrow they await the decision to green light construction on a third runway. amsterd amsterdam's airport is having a little bit of fun. they were letting heathrow eat cake. they have sent them every single time the decision has been delayed. they have confirmed that a cake has been on the way this week. poking a little fun. staying in retail, tesco is testing a contact list system to

do away the annoying paper receipts that you never know what to do with and send a record of purchases to your mobile phone. what do you do when you get them? i bought something and they sent me a receipt by e-mail. but do you have a folder full of old reseep seepts on your e e-mails? and guess what, after a short price dispute with the britain's largest supermarket is seeing sales soar. shoppers have purchased 335,000 pounds worth of additional marmite. because of the fears that the price of marmite could go up. so a lot of you out there buying additional marmite for your cup boards. e-mail us.

you can find us online. always nice to hear from you. you can also find us on twitter. tweet us directly. good morning to all of you already joining. i'll try to incorporate as many of your tweets and e-mails as possible throughout the show. coming up, taste iing the sweetest in spain will be peeling apart a mix ed bag of earnings for the french giant. that's coming up. also talking about e emerging markets and whether or not you should continue to invest in a debt plan. it's been really hard as of late. some are saying it's not going to last. we'll be crossing out to the u.s. to get the latest from the presidential election and also the latest from caroline at heathrow.

welcome back. you're still watching "street signs." japan's largest ipo has surged in its initial market debut. people liking this initial offering. >> they liked it very much. it closed up 15% and during the session today it was up as much as 20%. this is the largest ipo in japan so far this year. the railway ipo raised $4 billion. it was priced at the top end of the range at 2600 yen, but right off the bat at the open, the share price jumped 19%. now issues went to domestic investors. let's take a lock at the broader market. the nikkei had a broader showing because of the weaker yen. the yen trading in the 104.45 range.

it showed exporters were not showing as much as expected. a few headlines out of korea. gdp showed growth slowed to 2.7% from the second quarter's 3.3%. central bank also saying part of the reason for the slowdown in growth was because of samsung's troubles with the note 7 and also the strikes from the workers at hyundai and also they do expect some sort of an impact from samsung's note 7 issues in the fourth quarter. the other head line out of korea is something going to affect terrorism-related stocks. and koz bcosmetics brands slidi. . there was an rl in korea that said that local chinese travel agencies were being asked by the chinese government to reduce the

number of chinese terrorists to korea by the end of this month. the article didn't say what the reason was, but it seemed to suggest that part of this might be in retaliation for korea being in favor of the fad anti-missile defense system, which is backed by the u.s. back to you. >> pauline, good to e see you. i'm liking the yellow. more concessions to win approval for its 43 billion for zin jen ta. they said they expect the deal to close in 2017 while feedback is expect ed from the u.s. over the next couple days. the chemicals company saws sales falling by 3%, which is more than what had been forecast on the session today.

after sales that its eye care division and cancer drug continued to decline. the swiss drug maker's net income fell to $2.9 billion. sales slipped by 1% coming in just below forecasts. the struggling italian lender has published its turn around plan. the bank is to tap for additional 5 billion euros in capital while at the same time reducing head count by 2, 600 people. it expects to post a loss of around 4.8 billion euros. shares have been soaring after the company reported third quarter revenues in line with forecasts. good weather boosting sunglasses sales in europe. the maker of ray ban posted a

rise. they confirm targets after slashing sales growth in july. todd's like for like sales dropped 14.6% in the first nine months of the year. this is due to slowdown seen in chinese demand. the italian shoe maker is saying its profit margin target by the end of the year is challenging but achieve achievable. and visa shares falling an extended trade despite the company's fourth quarter earnings beating estimates. they reported ref noose of $1.8 billion. that's an 8% on the previous year. the company expects international payments volume growth to slow down modestly in 2017 due to economic weakness in europe and china. at&t and time warner close iinge trading day deep in the red yesterday after the announcement of this $85 billion tie up.

>> the end is getting closer and media companies are scrambling to position themselves where customers get exactly what they want on mobile devices. we could see other deliberaters follow the lead. >> i think other companies will try to look like us. if our strategy doesn't succeed, other companies won't bothers. it's a function of how well we do together and pull this strategy off. >> apple, google or amazon could be buyers as they put together video offerings. and this deal creates more pressure to consolidate for negotiating power with distributors. >> if you go across the media space, cbs and voiakom already n discussions about a merger, this probably slightly increases the

odds of that happening. >> fox which made a failed bid a few years ago could be looking at other deals. and smaller media assets such as amc networks, discovery communications, scripts networks and m srsg networks whose chann are at risk of being excluded from skinny bundles could be snapped up. but prices would need to come down first. >> i'm not sure there are companies that want to pay. they think they are destroying. they might want some content, but that's different than buying television networks. so if the buyers e emerge, we'll have willing sellers. >> when it comes to netflix, its $55 billion valuation means not many could buy it. but if the likes of apple were to step up, it would be another game changer for the fast-moving media space. cnbc business news, los angeles.

orange has reported third quarter core operating profits that beat expectations thanks to a particularly strong sales growth in spain. this is in contrast to declining revenues in the french home market where tougher competition continues to hurt the margins. now orange confirmed guidance maintaining dividend of 60 cents per share. let's talk more about this company. the director of business consulting, dave, good to have you with us this morning. sales growth up a bit during the third quarter. a a drop though seen in revenues in the home market in france. is this drop or weakness set to continue? >> the main drop was actually a mobile revenues, which was down about 4% in france. partly that's the impact of cheaping rolling costs. they are already falling in europe due to end next year.

they did add a lot of mobile connections in france. nearly a couple hundred thousand, which says they are getting less per customer. >> you mentioned that and the roaming fee is having an impact. sales climbing in spain and in africa and middle east. 7.8% in spain. 2.5% in africa and middle east. will they continue to push out business there as opposed to focusing on the home markets? >> spain had strong growth last quarter. the growth is up even more this quarter. but have even more connections in spain than they do in france. so definitely there's strong growth there. they obviously in terms of quantity of numbers almost two-thirds of their mobile connections are in africa and the middle east. the problem is most mobiles are

on prepay rather than post pay. so you have people buying something and waiting until they have used it before they buy another contract. whereas post pay you pay pay for stuff that makes it more profitable for the mobile networks. >> they try to buy tel come for 10 billion euros and failed at doing so. they have three big rivals left in the french market. do you think their strategy is going to have to change with regards to pricing? they are said they are not going to be lower in prices. they want to focus on the quality of their networks. when you look at a market when they get a 4g plan for something around 15 to 20 euros per month, won't they have to move pricing at some point? >> unless they can start to differentia differentiate. they have signed this deal with netflix so it might link to your

previous article. that might drive more revenue through added content and other services. but yes, downward pressure not just in france, in most european countries is downward. they lost a lot of revenue in poland. so the average revenue is generally on the decline unless you can sell more added content. >> should we be thinking of tell comes as a utility? you're kind of indicating that we're seeing a model switch where you have to team up with these content providers if you want to be there a couple years down the line. >> we're seeing that across europe. on a much lesser scale, orange

bought some comes that give them paid tv. not quite the same scale, but it does show the trend is happening so basically we want to provide your broadband, your mobile, content over it. hopefully in their view will justify higher prices. >> before your target of 2016 than what we saw in 2015, they are planning a dividend of.0 euros per share. is that achievable? >> revenues were slightly above expectations. it's an expectation set low. you hopefully overachieve it. the results were prefaced with generally encourages a bit disappointing trying to talk it up. but they are not that exciting. >> good to talk to you.

thank you. director at ek wi knocks business consulting. keep your tweets coming in. good morning to all of you. the list goes on and on. it's nice to have you with us. we're live on twitter. we're also on e-mail. streetsignseurope@cness streetsignseurope@cn streetsignseurope@cnbc.com. getting everything out.

you're still watching "street signs." luxury gains shares dropping to the top as warm weather boosts third quarter revenues putting the ray ban maker on track for the full year. syngenta shares recovering on a report that chemochina is ready

to take over. in italy they have been extending gains as the lender launches an increase and cuts thousands of jobs. it's warning of a 4.8 billion full year loss. and we have lift off after more than 25 years of talks, the uk prime minister is expected to green light a third runway for heathrow. glad you're with us this morning. u.s. futures shaping up for trade five hours away from the u.s. open. the implied open is pointing a little higher. looking for a slightly green start to the session. we close in positive territory yesterday on a whole bunch of these corporate results that have been very upbeat. a third of u.s. companies have

reported and something like 80% of them have beaten expectations. another third of the s&p 500 companies report this week. you have apple, caterpillar, so big ones on the agenda as well. european equity markets this morning hanging on to some slight bit of green for most of them out there. just going in negative territory within the last half an hour. alongside with the swedish market as well. we are hanging on to a little bit of buying out. when it comes to the market just to round off what we're seeing, you're still early on in your trading day. we're seeing the euro dollar hanging on right around 1.08. we have come right back down again after the latest ecb nonactivity. i think we can agree not even dropping a hint about tapering. it does seem we're getting ahead

of ourselves at this stage given they still stand ready to act. now the brazilian hitting the highest level in more than a year boosted by central bank survey that expects the currency to hold on to its recent advances. you're looking here at a real boost. this year something like a 21% change. so the brazilian real stronger by more than 20% over the past 12 months. mexico's inflation rate hitting an 18-month high. supporting bets on a possible interest rate hike in the near future. the peso rebounding from historic lows against the u.s. dollar partly on the back of recent poll data showing us that hillary clinton is leading in the u.s. presidential election race. rob is the co-head of global emerging market debt and he's with us. good morning. >> good morning.

>> emerging market debt, we have seen a surge in emerging markets in general. when look iing at some of the bd fund e flows, we have had more than and 13 weeks of inflows totaling $30 billion or so. in contrast, outflows have tapered off a little bit. do we think it's sustainable the inflows sbo emerging market debts? >> i think there's a huge amount of outflow until early this year. and of course, in the context of all risky assets doing well, emerging markets took its fair share. maybe a bit more than that in case of the absence of retail flows over the last few years. so we think that there's likely to be a continuation because a lot of people have technical opportunistic types have sort of weighed in, but certainly given the huge amount of outflow we have seen only partial catch up

as we feel. >> you say a lot of people -- is it too late to get in now if we're going to see this rate hiking cycle? >> that comes back to the fundamental question of what happened in emerging market itself. . we have seen these waves of in and out flows and have their own dynamics and assets. it's clear that the vulnerability that were exposed were very much over the last few years. the current accounts have moved around in the top ten countries in e emerging markets by 200 billion. that's a massive adjustment. that means the vulnerability is certainly received it. >> you have investor favorites out there like brazil, for an example. a number of people look at brazil and say since the impeachment, we haven't seen proper reforms being put in place by the new government and should hold off on continuing to buy emerging market debt.

would you agree? >> no, we don't. we like brazil. we have liked it for a long time. certainly the challenges are still massive. the supporting factor is the payments being in a dramatic surplus. that's sort of helps the currency and helps inflation coming down. should help the central bank to start cutting rates further, which they have already done. and the fiscal challenges are the main item and you have a government that's tackling these issues. still a a long way to go, but we have confidence that this is going in the right drebs. >> what have some of your other favorites. >> we like countries like indonesia, india, also doing strong reforms. i think those don't get noticed in discussions around china but there's some real pearls out there that we monitor and like. >> you don't think that arkansas

jen tee na has a one up on brazil given the business-friendly president they elected in and some of the reforms they seem to be pushing through quicker? >> they can sort of -- it's interesting that some of the emerging countries like brazil and argentina are going into the orthodox reform path where you see trade protectionist tendencies. so they are doing the right things. it's important not to be too confident or complaisant about it. to continue on the path, but we also are constructive on the prospect. >> what happens to emerging markets debt if trump wins versus if hillary wins? is there going to be a big difference? >> well, as i said earlier, the vulnerabilities has receded and all risk asset classes will

probably have some head winds. mexico is part of that. obviously, we would expect that would be a retracement of the gains we have seen this year, no doubt about it. in that sense, it would be bad news. but the e resilience in place, these countries are better positioned to deal with any head winds than they have been before. >> thank you very much. co-head of global emerging markets debt. the expect three rate hikes as long as inflation in the labor market continue to improve. speaking at chicago university, evans did not hint all tt when next policy change could be. to keep rates unchanged during its november meeting. the u.s. presidential candidates exchanged stinging

attacks on monday as the final two weeks of campaigning got underway. speaking at a rally at tampa, florida, the republican nominee criticized president obama's landmark legislation. the affordable care act warning that its, quote, over for obamacare. he claimed a hillary clinton administration would only make health care costs more expensive for americans. hillary clinton campaigned in the traditional swing state of new hampshire with the massachusetts senator elizabeth warren. the democratic candidate attacked trump's tweet storm declare iing defeat in the batt to retake mosul from isis forces saying, quote, he's proving to the world what it means to have an unqualified commander-in-chief. senator warren also sought to highlight trump's disrespect of women in a bid to galvanize female voters. >> get this, donald. nasty women are tough. nasty women are smart.

nasty women vote. and on november 8th, we nasty women are going to march our nasty feet to cast our nasty votes to get you out of our lives forever. >> tracie potts joins us from washington. what's the latest from where you sit? >> yeah, so the big picture here is that we're two weeks out now. still a lot of people undecided. our crews were talking to folks in florida who said they were at the polls doing early voting and weren't even sure who they were going to vote for. still not really liking either choice. however, the polls are definitely skewing in favor of hillary clinton. when you average all the national polls, she's up by more than 5%. some of them 12%.

so she's now refocusing on senate democrats and trying to help them retake the senate mentioning several of the democratic challengers in her latest campaign events. on the other hand, you have donald trump spending another day in florida talking about the media, claiming that the polls are rigged, claiming that the media is rigged against him. interestingly not talking as much about obamacare, even though you just talked a little bit about his mention there. but not baring down on something that republicans as a whole have been after for years to try u to change. now the administration admits that those premiums are going up again next year. but it was something that he barely mentioned in his last campaign event. but the bottom line here, donald trump now admitting he's behind trying to catch up by focusing on his base of republican supporters and maybe not so much those folks in the middle. >> clinton campaigning in massachusetts with the

massachusetts senator elizabeth warren as well. is that going to make a difference to the female vote or do you think again that most women at this point have decided? >> it's not clear. cle clearly, there's a lot of people that have not decided. but they have decided to bare down on donald trump's comments on women. she has a lead and has had a lead with female voters. she's now trying to expand that going into these last couple of weeks. that's one reason why she has elizabeth warren on the campaign trail with her, who clearly has not been afraid to take on donald trump in anything. >> tracie potts, thank you, joining us live there from washington. belgium's government has said that it can't formally back a trade agreement due to regional opposition. belgium faced a monday dead line

to get on board if the deal was to be signed at a planned summit on thursday. khcanada's trade minister remaid optimistic about a possible breakthrough. >> canada is ready to sign now. we have done our job. now it's up to europe to do its job. and the europeans have acknowledged at all levels that it's their job to do and they have all been saying today publicly that they are hard at work. let's wish them well. >> the european parliament president also held out hope of a deal being reached. >> there's not only still hope, we are on the way to find a compromise and to find a solution for questions raised by a lot of citizens all over in europe. we have to give an answer to. after all my meetings, i'm optimistic that we will find an answer. >> it seems it's decision day

for heathrow. will the government approve building of a third runway for the uk's busiest airport? we'll bring you there live after the break. keep your tweeting coming through. keep us also on e-mail. and we'll see you imminently. speed always wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business.

the islamic state has claimed responsibility for an attack on a police academy in the city in which 59 people were killed and more than 100 wounded. we will keep you up to date with that story as it continues to develop. after more than 25 years of debates, the government is set to announce its decision today

about whether to build a new runway at heathrow airport. is that heathrow, it's taken them a very long tomb. >> reporter: there have been so many delays and so many decisions that have been rejected by the governments over the last 25 years. so it's really hard not to be too cynical about today's decision. even if heathrow gets the go away, even if that happens, we won't see the start of construction for another few years because, first of all, they are going to have to vote on it in about a year's time. there will be a period of public consultation and a special select committee will be scrutinizing that decision. and then there's also a rift in the cabinet. one of the primary opponents to this expansion is foreign secretary boris johnson.

he once said he would lie in front of the bulldozer if construction were to begin. he's expected to make a statement after the announcement. at 12:30 in which he will argue the decision is wrong and is a mistake because it will increase pollution and noise levels. cost is another very important issue here because this option, the heathrow additional runway option is the most costly and most ambitious one. the price tag is $22 billion. but a lot of people argue we need that runway because heathrow is at full capacity and clearly wants to send a message that even after the brexit vote, the uk is open for business and that's why the go ahead will be for heathrow. most likely we'll get the decision in about two hour's time. >> a lot of it also comes down to how much they pay out to the people living in the neighborhoods that are going to

be affected. there's a lot of speculation that that cost is going up as well. >> reporter: absolutely. we're expecting a a number of legal claims, legal appeals by some of the councils here. five councils threatened legal actions and other opposition groups because of the massive noise levels. that's one of the most densely populated areas in all of europe. we see another runway that could severely compromise the quality of life for many of the people living here when it comes to pollution and air quality. >> caroline, thank you very much. it does look nice and fresh outside. they have broken a 35-year losing streak.

here's more. >> this is a benchmark study because it's in large part based on the responses of millions of people who say here's what works or doesn't work in my vehicle. the top three brands and this is note worty because we see lexus and toyota in the top three but it's number three buick. it's the first time we have seen a domestic brand ranked in the top three by consumer reports in more than 35 years. buick has been steadily improving its quality and they finally broke through to the top three. who were the worst of the auto brands ranked by consumer reports? this is not a good day for fiat chrysler. it dominated the bottom of the list. with ram being the worst. right behind fiat and chrysler. and also right behind dodge. one other note about this survey. it is ranking individual vehicles as well. sort of one of the subsets and what they have to say about the tesla model x was not encouraging. the model x rates as the sixth

least reliable vehicle overall and the lowest rated vehicle in terms of mid-size luxury suvs. the doors are a a main complaint according to folks. that's why the model x did not do well. we should point out that it the model s, which good poor marks last year improved its reliability. we have tesla reporting third quarter earnings after the bell on wednesday. that's always one of those earnings reports that a lot of people like to tune in for not just for the number, but also for the commentary. >> apple, the largest company in the world, reports fourth quarter earnings after the close today. will it pose another fall in iphone sales or looking at its earnings to new highs? josh lipton filed this report previewing the numbers. >> when apple reports results, all eyes will be on that iphone business.

analysts think apple shipped 45 million iphones in the quarter. that's true, that would be the third straight quarter of declines. but the iphone cycle has bottomed. they think the new iphone 7 is going to return the iphone franchise to growth. investors seem optimistic apple is up nearly 20% in just the past three months. also in focus, apple's business in greater china where revenue did slip more than 30% in q3. the question for investors is that due to slowing economic growth or as some analysts note because local brands are now catching up. and finally apple did reportedly approach time warner about pursuing a combination. analysts might ask tim cook about that on the conference call. dawson says cook was smart not to pursue that deal. better for apple to than to spend billions acquiring it.

let's talk more about this. what do you think people will think of the numbers today? is there disappointment waiting around the corner? >> some of that's been priced in already. there was a isn'tment towards the iphone 7. analysts were expecting this third straight quarter of declines. it's also worth noting it's only been on sale for a couple weeks. we might see an up tick in the next quarter when sales start to feed through. >> is it down to the numbers or believing that apple has another device that people want. do people care whether they ship 45 million or 48 million? >> the iphone sales is an

important number. that's key to focus on is the supercycle, which analysts expect to see happening over the next few quarters. especially when apple bring out their next anniversary addition iphone 8, which is supposed to have the latest and greatest which could restock growth for that device. the stock is up by 52% of the time after earnings over the last six years. that people tend to buy apple on the news. but almost regardless of what the news is unless it's been like a massive disappointment. >> there's still a view in the market this stock is undervalued for what it is. there's a lot of growth to come still. there's new emerging markets coming on board and those are potential new areas for apple to jump into. it's also one of the big key areas of growth. their software and services.

what they do with apple music and all these little services that they add on to their users. that's quite an attractive business model. if apple can bring in revenues, that's something that investors see as an area they can really grow. >> thank you very much. further look at what to anticipate from the apple numbers. they are out after the close later. u.s. futures, we're four and a half hours away from market open. we're looking at a little bit of a rise on the open. the implied open. that's it for "street signs." thank you for being with us. we'll see you tomorrow, same time

. good morning, components ready to roll out quarterly results before the opening bell rings. year zone approves a 2.8 billion loan for groeece. the final stretch presidential hopefuls hillary clinton and donald trump hit the campaign trail with just two weeks left until election day. it's tuesday, october 25th, 2016. "worldwide exchange" begins now.