welcome to "street signs." i'm joumanna bercetche >> i'm willem marx these are your headlines russian president vladimir putin and chinese president xi jinping speak out against protectionism as the two countries strengthen ties. >> in order for our region to achieve high growth rates it should retain the spirit of economic freedom to be the space of business initiative without sanctions, bans, and political

bias. european commissioner president jean-claude juncker talks up multilateralism in his state of the union and says a united europe is an unavoidable force in world trade angela merkel on the offensive. she uses her bundestag speech to call for solidarity on illegal migration. and the worst storm to hit the carolinas in over 60 years emergency services warns hurricane florence will be extremely dangerous with life threatening storm surges and fierce winds. good morning russia seems to have accelerated its pivot towards the east with vladimir putin taking the stage with the leaders of china,

japan, and mongolia. he warned trade tensions would hurt the global economy. president putin urged asian countries to maintain the spirit of economic freedom. >> translator: i wanted to add that i have already said that the world and global economy are coming up against new forms of protectionism today with different kinds of barriers which are increasing in the past times, basic principles of trade, competition, mutual economic benefit are deprecated and undermined they're becoming hostages of ideological approaches and fleeting political situations. in that we see a sear wrous challenge for all of the global economy, especially for the dynamically growing asia pacific and its leadership we're convinced that in order for our region to continue high growth rates and to keep up with

the economy and trade, it should maintain the spirit of economic freedom. to be the space of business initiative without sanctions, bans and political bias. the chinese president, xi jinping, praised the close relations between those two countries. >> translator: china and russia are the biggest neighbors. we have solid political base we are partners in comprehensive strategic operations chinese/russian relations are at the all-time high level. and the russian leader also used the platform to announce he discussed a peace treaty with japanese prime minister shinzo abe saying he hoped to sign a deal by the end of the year. abe also hailed tokyo's close bonds with moscow. >> translator: the meeting president putin and i just held was our 22nd we will keep taking advantage of

various opportunities and continue to engage in talks again and again. i urge you all to support our steps towards concluding a peace treaty i ask for a hearty round of applause for everyone here in support of this. thank you. >> applause there for japanese prime minister shinzo abe. later in the show we'll hear from the russian energy minister one of our other top stories today, china is seeking permission from the wto to imposebillion a year on retaliatory sanctions on the u.s. amid a dispute over dumping duties beijing began the dispute five yea years ago with a complaint about u.s. dumping rules the wto ruled last year that washington's previous actions had been illegal and christine lagarde warned

that trade tensions could deliver a shock to emerging markets. her comments have raised fresh concerns among analysts that a crisis in turkey or argentina could spread to other developing economies. she said the imf does not yet expect that kind of contagion but that that could change rapidly. canada is reportedly ready to offer the u.s. limited access to its dairy market as a concession in nafta talks. president trump said trade negotiations are going well and that ottawa is keen to make a deal >> let's stop dragging europe's name through the mud, so says eu commission president jean-claude juncker as he gave his state of the union address. he addressed trade tensions and called on europe to speak with one voice. >> when we are united, we europeans as a union have become

a force to be reckoned with, that you cannot do without some in europe are not happy with the agreement i reached with president trump some were surprised by it. but there should be no surprise. whenever europe speaks as one we can impose our position on others where necessary europe must act as one >> that is jean-claude juncker talking in strasburg we're joined by the european head of global markets research at mufg. i have to ask you a quick question about europe. he is president of the union that is about to lose more than 10% of its population through brexit does he have anything to boast about? >> it's a difficult moment in

terms of brexit and also there's that hungarian vote taking place today where hungary could be losing its voting rights there's some definite tensions a lot is related to migration policy he has also spoken about the importance of getting a unified, workable migration policy together i think in terms of resolving these tensions, you can include italy in that, that will be key going forward. there doesn't seem to be much progress on that front that is, i'm sure, concerning the senior politicians in europe at the moment. >> much of the narrative this year has been about trade and trade wars, extra tariffs. in your perspective as an investor, do you think that that meeting between juncker and trump staged a turnaround in terms of expectations in terms of where the negotiations are

going? >> that is one element there's hope that there could be progress and not a major conflict between essentially the two big areas of trade outside of china so there is an element of optimism there canada there may be a shift on the dairy sector which could result if a fresh nafta, which would also be positive >> given that your focus is foreign exchange, has that had any impact on the euro and the trajectory of the currency is it more a function of respective growth outlook? right now europe is growing but not as fast as the u.s., so therefore the love has been with the green back is that the way it's been passed on is via growth expectations rather than actual economic

impacts. >> there's a divergencdivergence the companies that are much more global growth sensitive are by far the underperforming currencies so australia, new zealand, sweden, those currencies are th worst performing when you move into the core g 10, the performance is different. of course you have the yen and the swiss franc who outperformed the u.s. dollar. and the euro's performance is just behind. when you look at the external positions, currencies that have that kind of safe haven characteristic, those are performing better. it's growth sensitive whereyou get the major under-performance. so it's that rather than saying interest rate differentials are widening in favor of the u.s., all these currencies will perform poorly track record doesn't back that up >> i want to move outside the g 10 briefly we had this warning from

christine lagarde about the potential of contagion, the fact that the situation could change rapidly. how specific are other countries like turkey, argentina, brazil, south africa when it comes to the under-performance of their currencies or how much of that do you ascribe to fed tightening or tensions over trade >> again, the currencies that you just mentioned, there are obvious specifics, in particular turkey and argentina, even brazil south africa is actually in recession. if you move outside of those -- russia is the worst performing you have the sanctions related to the u.s outside of that, the movements have not been of crisis proportion therefore i do think it's more fundamental in nature with specific factors behind those currencies one other important point i would make on this meaning market story, when we look at

china, in 2015/2016 there was a massive capital outflow from china which created instability in chinese markets and broader financial markets. that's different this time even though the dollar has been moving higher there's not the capital outflow. foreign investors have continued to invest into china really we're getting the chinese authorities maintaining looser policy relative to the fed and dollar is moving higher. >> what do you think of the dollar and the future of the dollar as continually the world's reserve currency only this morning we heard remarks from president putin when he was meeting with his counterpart in china saying they would look to start using non-dollar currencies to fund the trade that goes on between them do you think that will have a material impact? is the dollar status under

threat >> what i've been telling our clients is that at the moment in the fx markets we have a conflict between the positive cyclical forces, which are compelling for the u.s. dollar versus the negative structural forces, which longer term look pretty bad in my view. if you look at the performance of the dollar generally, it is not tracking like it should be tracking relative to interest rate differentials so there's something underlying there that's impacting that cyclical performance i think investors who look beyond on a two or three-year time horizon and assume deceleration in u.s. growth or deficits, the debt dynamic, the trade deficit dynamic is not good for the u.s. dollar longer term >> don't go anywhere we'll take a quick break coming up on the show, european commission president jean-claude juncker is aiming towards a

friendly divorce with the uk but he won't budge on key withdrawal terms. more from his state of the union speech next.

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welcome back to "street signs. let's check in on how the markets were doing yesterday was an interesting session for u.s. equities. we opened up weak. by the end of the day we staged a turnaround with all three majors, s&p down, nasdaq ending in the green one of the big out-performers was apple. today is apple day they're expected to unveil new versions of the iphone, the iwatch into that event we saw apple go up about 2.5%. that boosted the tech sector the sentiment in asian time was not as positive. we had a chinese indices again trading weaker in fact, the shanghai composite is 25% down from its year-to-date highs so more than bear market territory there. the mood in asia is focused on

those trade discussions, but europe picked up sentiment from u.s. equities. we're starting up one hour into trading about a half percentage point stronger already let's get into some of the individual bourses here. let's look at how these are faring we have ftse 100 trading stronger today, up 10 points we have some positive news coming out of potential brexit discussions, potential solution in the next couple of months we'll see how that pans out. xetra dax also trading firmer. we have the ecb coming up tomorrow they'll be updating their growth and inflation projections. ftse mib, italian budget discussion front and center of that market. we bucked the recent trends of trading weaker in the italian market up 0.4% today. let's get into sectors we have right at the bottom

utilities down more than 1.2%. telecoms having a tricky session today, down 0.7% up at the top oil and gas up 1.6% let's not forget that we -- it's wednesday today. we get the eia inventory numbers later. retail up 1.2% positive numbers out of hermes and inditex earlier. autos staging a rebound. autos and basic resources the trade sensitive sectors are rebounding up more than 1% >> inditex reported a 3% in profit they have forecast stronger profit margins in the second half morgan stanley downgraded inditex for the first time ever last month the bank said the company is r euro hermes reported record

margins for the first half of 2018 sales rose across all of its markets with china a bright spot the firm confirmed its medium term revenue growth guidance sse issued a profit warning and blamed it on poor weather conditions and persistently high gas prices the brigtish energy provider added a proposed cap on energy bills would result in significantly lower profits. the first half performance was described as disappointing and regrettable. ryanair has canceled 150 flights out of germany today as pilots and cabin crew strike over a pay dispute the irish airline has threatened that if wildcat strikes continue, it will be forced to let staff go in certain markets. several unions around europe said they will walk out in late september unless ryanair agrees to better working conditions unions have been talking to cnbc

and describe the airline as very difficult and anti-union i'll speak to ryanair's ceo michael o'leary at 1:00 p.m. central european time. a lot to talk about there. what he described himself as a threat to his own business model there, those unions. >> looking forward to that interview. oil prices are higher on the back of solid overnight gains following the release of data that showed u.s. crude stockpiles had declined. geoff spoke to alexander novak at the eastern european forum and asked vladimir putin's focus on the east. >> translator: let me start by saying mr. putin is giving special attention to the development of the far east of russia today he has actually stated there will be a separate national program for the development of the far east which will be dedicated to this

task we know the development of the region is impossible without partners from china and the asia pacific region it is quite clear that china is one of the key drivers of the region's economic growth we see that china's energy consumption will be growing at rates above a global average we see lng demand picking up and we want to work with our partners closely to supply them with energy to benefit from this together the relationship with china is a strategic one. and any strategic relationship works to the benefit of both parties. this gives us an opportunity to invite them to invest if various projects across russia, including hydro carbon refining.

they are looking for more investment at the same time china is offer ing opportunities in their market >> alexander novak there talking a few moment there's to geoff cutmore. in the uk a number of conservative lawmakers are discussing plans to force theresa may to stand town. according to the bbc around 50 mps who oppose may's brexit plans have discussed a leadership change. this morning the environment secretary has hit back saying speculation of leadership challenge is loose talk in an interview he urged mps to unite behind theresa may and wished the prime minister would stay on downing street as long as

possible jean clued ju-claude juncker sa stands to work closely with great britain. >> the united kingdom will always be a close neighbor and partner in political, economic and security terms in the past months when we needed opportunity, britain was driven by the same values and principles of all other europeans. this is why i welcome prime minister may's proposal to develop an ambitious new partnership for the future after brexit we agree with the statement made in checkers that the partnership should be a free trade area between the united kingdom and european union.

derrick penny is still with us let's talk about the pound here. we have obviously bounced a couple points in the last week on expectations that we may be nearing some form of a brexit withdrawal agreement between the eu and uk. why do you think the pound is dismissing leadership concerns at this point in time? a leadership contest which may substitute theresa may with somebody who is more on the hard brexit side. >> we've heard all of this before the markets have become used to the day-to-day news flow in relation to a deal, a leadership challenge, and all of that kind of is there constantly the markets don't respond to each and every move. though, you know, there could also be -- this looks more serious. there's a bit more credibility to it. i think personally it's now or never. if you want to have a challenge

before march 2019, because if the longer you leave us, the more difficult it will be to get that support of course we did have good fundamental news from the uk over the last 48 hours in particular the wage figures which backed up what the bank of england did in august. if a deal does emerge, pricing for uk rates in 2019 looks low to me. i think we could see -- >> so you think the solution is paying interest rates rather than having a position in the currency >> to a degree though there's value there in terms of the currency could have a notable jump and if we get to a point where the markets become convinced on a withdrawal agreement being reached. as i said this leadership challenge, story, it does have some credibility to it though getting the 48 names is quite easy getting half the party is a

different story. >> one other development this week was the decision to keep mark carney on at the bank of england ostensibly to calm markets, reassure investors and make sure there was continuity during this complex phase of negotiations do you think it will have that intended effect? >> in terms of consistency, no uncertainty in terms of who takes over, yeah but i would say it's marginal. at this stage market participants have a high degree of confidence in terms of selection of whoever the new governor would be, not being dramatically different to create big levels of uncertainty. i guess in terms of consistency it helps >> one quick final question on italy. do we ignore the noise out of there politically? >> just a quick question >> our view was up to 300 basis points in terms of the ten-year

spread over bunds, that was excessive. we were going into crisis type levels if we had gone over 300 basis points if you consider where we have begun to widen in may on fierce of big conflict with brussels, the budget deficit, it's not happening. it's not going to happen over the short-term >> thank you very much >> thank you very much for joining "street signs" today we'll have to leave it there that this week marks the ten-year anniversary of the collapse of lehman brothers. >> i think i called my board that saturday and said we have a national emergency i told them what it was, how bad it could get and how we'll handle that. - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up!

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welcome back to "street signs. i'm willem marx. >> i'm joumanna bercetche. these are your headlines russian president vladimir putin and chinese president xi

jinping speak out against protectionism as the two countries strengthen ties. >> in order for our region to continue t achieve high growth rates it should retain the spirit of economic freedom, to be the space of business initiative without sanctions, bans, and political bias. european commissioner president jean-claude juncker talks up multilateralism in his state of the union and says a united europe is an unavoidable force in world trade anticipation over apple's product event takes the bite out of trade concerns sending the stock into the green and the worst storm to hit the carolinas in over 60 years emergency officials warn hurricane florence will be extremely dangerous with life threatening storm surges and fierce winds

let's check in on how markets fared. you talked about apple and how that worked out yesterday. you can see the picture in europe this morning is pretty firm we have all of the majors trading in the green cac 40 is leading the charge, probably helped by those stronger results out of hermes the mood is more positive as far as the majorsare concerned fro a central bank perspective tomorrow is the big central bank day for the bank of england. we were speaking about carney's tenure being extend ed ed to 200 and we look to central banks for the guidance on the macro side let's talk about foreign exchange and see what's been happening with some of these currency pairs not a whole lot of movement. cable trading around the flat

line despite some positive numbers out of the uk in the last 24 hours. still there being driven by some leadership contest remarks that have come out as well. generally we see the dollar is trading a bit mixed. yesterday we did trade a bit weaker today it's more flat switching to u.s. futures. today the mood is positive we have dow seen opening up about 65 points higher nasdaq about 26 points higher. as i mentioned all eyes will be on the apple and the latest unveiling of their new products. ♪ september the 15th marks the tenth anniversary of the largest bankruptcy in u.s. history the collapse of lehman brothers stunned markets and set in motion the great financial crisis cnbc is looking back at the events and examining the lessons

learned. andrew ross sorkin sat down with the ceo of jpmorgan, jamie dimon who described the events as a national emergency >> i think i was driving home. i called up my whole operating committee. i told them we're about to have a catastrophe take place all hands on tech the next day i think saturday everyone was at work we had work forces, teams going through every part of our exposure which we had been through before i think i called my board that saturday and said we have a national emergency and i told them what it was. i tried to explain how bad it could get. >> when you told them how bad it could get, what did you tell them >> i said you'll see the worst week ever in america's financial history since the greatest depression, that in my opinion that lehman will go bankrupt, aig is a possibility and it will be a domino effect after that. someone asked me what does it mean for jpmorgan? i said each one is an exposure

no one will cost more than $1 billion. we were fine, but the system wasn't fine. the american financial system was about to two through something catastrophic >> do you remember hank paulson explaining why some were not at that meeting >> i think he was talking about lehman, could you bail them out? if we had another week, we could have done it but that was the reason why. >> bonnie frank was a democratic lawmaker at the time, head of the house of representatives committee on banking and a key opponent of the dodd-frank act he talked about wall street's subsequent reactions to those financial reforms he pushed forward. >> i believe it should be regarded as the most highly successful wholly unpopular thing that the government ever did. in 2010 to my dismay, i found

myself in the toughest re-election fight i had. it was the toughest fight sense i first ran. i was getting blamed for the crisis i made one statement about fannie mae and freddie mac i said let's roll the dice on this i was talking specifically about the multi family portfolio, which worked very well but there was no way i could explain that i found myself in trouble, getting blamed for all this. i said it's frustrating because i think what we did was the best that could have been done. and on the over hand i knew that people were unhappy. what do you do when people are unhappy? how do you deal with that? the bumper sticker i made up was things would have sucked worse without me, which is the case but not a great electoral slogan >> catch more interviews from

"crisis on wall street: the week that shook the world" on september 15th at 1:1:00 p.m. central european time. our next guest has a retroactive view of what's happened in the last ten years since that has really caught my attention, i think many people would be surprised to hear this, according to your notes the uk banker's bonus pool today has not changed from where it was in 2008 actually in the u.s. the bonus pool has increased by 50% in the last ten years >> that's right. what is going on >> it's true, but actually what we found is while bankers bonus pools did continue to increase after the financial crisis, as soon as the remunination pools

hit, that changed. >> according to your analysis, how close is the correlation between overall compensation and the incentive to put on risk as you say the effect in europe did not start happening until the last three years in the u.s. it has not happened at all yet banks have been de-riskde-r, so perhaps the premise is wrong to begin with. >> the idea of the bonus cap, that is one reason that the bonus is reduced in the eu, it capped the amount of bonuses that people can get. they can now only get 200% of fixed pay as bonus if the upside is limited, the idea is they should not be incentivized to make such exc s excessive risks. the other thing that made an impact on risk taking is what you do get as bonus is subject

to deferral. so in the uk we have people subject to seven-year deferral and then ten-year clawback so they're making sure they're behaving well, not taking excessive risks. your behavior over the next seven to ten years can have an impact on what you take home >> i understand the logic of that, but there's no hard data showing if you do cap bonuses you necessarily end up with those people reducing their risk exposure in their day-to-day job. are there papers out that i have not seen about that? >> no the bank of england would probably agree with you. the uk was not a fan of the bonus cap. that came from europe, it was just all about capping the amount >> francois hollande pushing hi weight around at the time? >> a lot of people were behind

it the bank of england was not keen on it. it's restrictive only 30 firms in the uk are subject to it. that is something that people have wondered whether that will stay after brexit or not it's possible they could remove it what they believe makes a difference, the long deferral period and the clawback. >> so it's less about capping the bonuses and more about deferring payments over the years to incentivize those people in the managerial jobs where they are but those managers in important jobs, knowing they will get their compensation spread out over the next 5, 0 years will not be incentivized to take one risk but maybe not take any risk. perhaps it's gone too far. >> there's a worry that it could stifle innovation. there are fintech experts, you want them to innovate and take risk, otherwise you can't meet with the times

but at the same time there's a limit on the risks people should take so what these rules do is they look at how much money you bring in but actually it's how you got there. did you take excessive risk? it's not all about the amounts but how you went about it. did you work within the risk limits of the firm and do it in the right way? even if you did it in the rite w right way that year, if there are risks that number can be reduced. >> thank you very much someone else who benefited over the years from performance related pay will talk to our colleagues state side, that's the founder of appalossa, david tepper. stay tuned for an interview with former bank of england governor mervin king at 10:00 p.m. central european time. hurricane florence is expected to strengthen as it approaches the u.s. southeast coast, forecast to make landfall

on friday. the storm is on track to become the most powerful to hit the carolinas in more than three decades. the hurricane will be extremely dangerous through landfall and forecasts life threatening storm surges and rainfall will follow. president trump has declared a state of emergency in north carolina, south carolina, and virginia he has therefore committed federal resources to that storm response >> the safety of american people is my absolute highest priority. we are sparing no expense. we are totally prepared. we're ready. we're as ready as anyone has ever been. it looks to me and it looks to all of the talented people who do this for a living that this looks to be a storm that will be a very large one far larger than we've seen in decades. >> coming up, apple is set to

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welcome back to "street signs. russian energy minister alexander novak has said the trade war between the u.s. and china is contributing to instability in the oil market. geoff is live right now and has just spoken to mr. novak interesting comments >> absolutely. he suggests there may be a premium in the market of $5 to $6 per barrel which effectively means in a shorthand way that every time you, me, or somebody else goes to the petrol pump to fill their car, they could be paying up to 10% more for filling up their tank just because we have this trade war ongoing between china and the

united states and there is that sabre rattling around the prospect of new sanctions on iran so the message from the russian energy minister is that as long as we continue to see these kinds of geopolitical hot spots, then we will continue to see fragility around the energy markets. that means volatility and ultimately prices being a little higher than they should be let's listen to what he said in response to my question. >> translator: indeed we make such assessments we can see the pricing situation today depends not just on the supply/demand balance or the economic situation but also on the uncertainty we observe today in the global markets. the trade wars, the sanctions that the u.s. pursue, if we talk figures, i think the additional premium is about $5 to $6 on top of the usual oil price that

would reflect the supply/demand balance. >> now, this is a fascinating time to talk to minister novak not only have we had this event here discussed deepening ties between china and russia and even a suggestion from president putin that chinese-state oil companies may be allowed to buy stakes in rosneft wells. that was an interesting development suggesting these ties are more diplomatic it's also fascinating because mr. novak flies back to moscow where he will meet the u.s. energy secretary rick perry tomorrow the expectation is that they will discuss what could unfold in the market if, indeed, the

u.s. goes ahead with fresh sanctions later in the year. so i asked minister novak in an te anticipation of that what he thought in terms of prices if the iranian supply came off the market he said it depends on how other global companies behave around iranian sanctions. as far as he's concerned, though, too difficult to say at this stage what those sanctions may look like and how they may immediately impact the price clearly impact there will be let me send it back to you >> absolutely. plenty of moving parts there that $5 to 6 premium, interesting. apple is expected to release

new iphone models later today. the tech giant normally puts its iphones on sale before the end of the firm's fiscal year in late september just looking at the apple stock price, yesterday we had a good day, up 2.5% the day before, we didn't have a good day because of concerns that there would be political pressure on apple to start producing more on u.s. grounds they're caught in the crosswinds of the trade tariff discussions taking place the president is putting pressure on them this year apple is expected to unveil three versions of its device, including a 6.5 inch smartphone with an oled display, an upgrade to the iphone x, and one with a less expensive screen apple's iphone x cost as much as

$999 and has a 5.inch display and dual camera. the samsung galaxy s9 plus has a larger screen but can cost as much as $859 and the huawei is close to $1,000 >> this comes amid looming trade tensions between the united states and china last week president trump said apple should move production back to the u.s. to lower prices analysts are divided over the potential impact of tariffs on apple. bank of america says a 25% levee could demand destructive measures for apple

neil campling kindly joins us this morning in london do you think that idea that this increase in prices after tariffs would kill demand? is there a price point beyond which apple dare not tread >> not for apple itself. i think apple is able to pass on the cost of the devices through its supply chain you're already seeing that pressure play out at the moment through its supply chain companies in asia and europe but the demand dynamic is a question which i think already we're seeing, if you look at the volume for the overall smartphone market, data shows it's down 2.5% year-on-year in the last quarter for the global industry apple is the premium price vener

as vendor there is not a great volume market here. there are some demand pressures already. so the new devices for apple are expected to come with a high price tag. that has not necessarily impacted them, but it is having shockwaves through the supply chain companies. >> in many ways to quote something you said, it will be evolutionary, not revolutionary. typically when the newer iphone model comes out, there's a bigger screen, better specs, it seems now they're changing the template a bit and calling it a new launch are they at the end of how many new things, new specs they can keep adding to these products to justify the $1,000 price point >> the reason people upgrade more nowadays is based around performance, battery life, the speed of opening apps.

using the services on the phones the actual design itself in terms of how it looks, whether it looks great, brushed aluminum or plastic or an oled screen, they are secondary considerations now compared to actually the use of the device itself so if you think back in apple's history, there's always a software first company i think in many respects we're going back to apple being a software first company we forget there are millions of developers who are on this platform one of the biggest scarcities in the global marketplace is software developers. that's impacting many companies. but actually because of the apple ecosystem where developers can earn millions of dollars from developing apps and services on the flplatform, there's a great pool of talent working for apple that are not on apple's payroll >> what does that mean for margins? when you talk about the development of a new model,

you're saying what people want now is better performance. how does apple keep its costs down when it comes to improving performance in a handset >> if you look at apple's bill of materials, total cost of producing the iphone they have gone up every year by using new technologies, that's a higher bill of materials cost what happens in new technology is apple basically goes to one vendor first, then multiple vendors in the second year this year is the second year what they will do by moving to multiple vendors is put pricing pressure on those suppliers. so apple can keep its own margin, protect it it always has. so looking back in history, device margins, whether it be lower end mobile phones, whether it's notebooks, pcs, often you expect hardware with a mid single digit margin. apple is able to have super normal margins in the 30% area often because it's able as the

biggest acquirer of semiconductor material globally, it can put pressure on that supply chain >> how many of those suppliers are based in china >> many. the majority >> all right neil, thank you very much for coming in today. before we head out, a look at u.s. futures. looks like it will be a more positive day dow opening up 70 points higher. nasdaq about 27 points higher. that is it for today's show. i'm joumanna bercetche >> i'm willem marx "worldwide exchange" is coming up right now man: are unpredictable crohn's symptoms following you everywhere? it's time to take back control with stelara®. for adults with moderately to severely active crohn's disease, stelara® works differently. studies showed relief and remission

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it is 5:00 a.m. in charleston, south carolina here are the five stories to watch. hurricane florence is gathering strength as it closes in on the carolinas. winds up to 140 miles per hour big business sounding off against trump's tariffs. more on the new multibillion dollar lobbying effort group that was formed. it's a sign of the times for nielsen which is reportedly exploring a sale of the company. the countdown is on to today's big apple event. can a new iphone really move the stock? and walmart is getting in on the bitcoin craze, but there