breaking news this morning. two tech giants hit with legal rulings and fines. it's tuesday, september 10th, 2024. you're watching "worldwide exchange." good morning. i'm frank holland. let's get to the breaking news in a moment, but the s&p on

monday closed up 1% for its best day since mid-august. take a look right now. you see in the red across the board. futures turning completely red a short time ago. the s&p fractionally lower. you see it's down six points. the dow would open 40 points lower. the nasdaq is really under pressure down .25%. the ruling against apple weighing on this index right now. we'll get to that story in a short time. turning over to europe. we mentioned u.s. stock futures turning red across the board. we are looking at europe right now. we are seeing a lot of red on the board in europe. the cac up .25%. the ftse is down .50%. the ftse mib is down .25%. in asia, china out with up beat economic numbers. more on that later in the hour. you see the kospi down .50%. the nikkei is down fractionally.

the hang seng and shanghai up .25%. in the u.s., we have a number of stocks on the move with oracle noting a.i. demand helps its cloud business. oracle announcing agreement with amazon web services. big jump after earnings. the big move here. shares up about 9% right now in the pre-market. big banks are in focus on the report that the largest u.s. lenders will be facing a 9% increase in capital requirements. that is nis nearlily nearly hal the original proposal. you see the big banks. jpmorgan chase and citigroup up 1%. wells fargo up 1.5% as well. let's go back to the breaking news. the european union cracking down

on big tech in a big way. apple and alphabet. we have technology reporter arjun kharpal joining me from london on those stories. arjun, apple being hit down 1%. >> frank, the reason for that is we finally have the conclusion of what have been two very long running eu cases. one against apple and one against google. first, apple, the top court ruled against apple over the tech giant's ten-year battle over the tax affairs in viirela. they concluded the company received illegal tax benefits from ireland over the course of two decades. apple appealed the decision in 2019 to europe to the second highest court which sided with the iphone maker. then the european commission appealed to the european court of justice which sided with the

eu executive arm. apple said it was disappointed with the court ruling and they are retroactively trying to change the rules. now on to google. this case stems from 2017 when it alleged it dominated the market by giving illegal advantage to the comparison shopping services. that is google shopping. the european commission slapped google with the 2.4 billion euro fine which google has appealed all the way to the top court now, the ecj, which today upheld. google will have to pay the 2.4 billion euro fine. that's are historic cases. the eu continues to ramp up pressure with the latest regulations. the digital markets act with several investigations ongoing. watch for the conclusion over the coming months. frank, back to you.

>> two big decisions. apple down 1%. i want to turn to alphabet for a second. alphabet facing anti-trust trial here in the u.s. does this eu decision influence u.s. regulators? >> i think one of the things we have seen over the past couple of years is a working relationship with regulators in europe as well as the u.s. and both looking at very similar issues. so, i think the u.s. regulators will be looking very, very closely at what happened here in europe to see if there are similarities over what is going on in the u.s. as well. the overarching theme is that google is large and it's got a dominant position in many, many different areas and that, of course, doesn't create any wrongdoing, but what they are concerned about is the strong position in several markets is google dominating or a becabusi

that decision. that is either google shopping or search. the european case here will be watched closely by u.s. regulators, frank. >> arjun, apple and losing the battle with taxes. it is up on cnbc.com. arjun, thank you very much. turning back to the u.s. stocks bouncing back after suffering the worst week on the year. deutsche bank said they should not argue a slowdown. joining me now is greg branch at branch global capital advisers. he is a cnbc contributor. greg, good morning. good to see you. >> good morning, frank. good to be here, my friend. >> i want to go back to the deutsche bank note. some of the weakness we have seen recently has been driven by

a small group of stocks. that small group ticked down 5% or more in the third quarter. those were the stocks leading the market most of the year. is that a concern those are the stocks leading the declines although it is a small number? >> i don't think so. i want to separate two things, right? there's the market declines and there's this general fear of recession in the economy itself. i agree with deutsche bank on the latter. for now, this is pretty m much much ado about nothing. we saw the inflation come down from the 30 or 40 basis points month over month that we were stuck in for 16 months, what is linked with that is the unemployment. if we are going to get out of the inflationary paradigm into something more neutral, we should have expected a lower

jobs number to correspond with the 4.2% number. we should have expected a weak ism number in manufacturing which we had for 22 months. i'm surprised the market reacted the way it has. i'm neutral >> you are saying it is much ado about nothing. i want to go to the current quarter for q3. they were half of what they were for q2. isn't that a sign of a dramatic slowdown that deutsche bank says you shouldn't exaggerate, but should focus on? 12k3w4r first, i would note that consensus is notoriously off on the up and down side. frank, you are comparing that to a number which was 11% for q2 which was the heiighest since t fourth quarter of 2021. that sets a really high bar. if we deliver 6% earnings

growth, i don't know if that is indicative of a recession. we will likely top 3% in the third quarter. that doesn't seem like a weakening economy to me. >> greg, one last question. we have to get out of here. rate cuts. 25 or 50 basis points? does that matter? would 50 points spook the market? we have a number of guests saying that could scare the market and lead to more declines. >> we're in unpredictable territory. i don't think so. i think the consensus expectation for the 50 rate cut was 40% two weeks ago. >> greg branch, great to have you back on the show. good to see you. turning to the campaign trail. vice president kamala harris and former president donald trump face-off tonight in philadelphia facing off on the economy and foreign affairs. we have brie jackson joining me

from washington with more. >> reporter: good morning, frank. al allies of former president trump see this as a way to turn the corner from the harris honeymoon. she studied past debate clips of the former president and focusing on ways to try to provoke him. vice president kamala harris arriving in philadelphia for huh herh huh her much anticipated debate with donald trump. >> we are going to defeat comrade kamala harris and we are going to win the white house. >> it's time to turn the page on the divisiveness. it's time to bring our country together. chart a new way forward. >> reporter: a new poll shows more than 60% of likely voters want a major change from

president biden. more than half say trump will bring that change. trump allies touting his strengths over his rival. >> i don't think she is too bright. i think donald will do well and talk about his policies. >> reporter: those backing harris warn of the dangers of the second trump presidency and say her policies will move the country forward. >> i do believe kamala harris is going to prevail on that, but we must -- we can't forget that trump has an appeal in pennsylvania and we need to make sure we show up everywhere. >> reporter: the race remains di tight. voters are keeping a close eye. >> stay on point and what he needs to do. >> just for her to be her and honest and tell us what she's going to do for the country. >> reporter: harris and trump meeting in person for the first

time today for the high stakes 90-minute showdown. police are bracing for protests in philadelphia with pro-palestinian groups upset with harris' continued support. frank. >> thank you, brie. we have more to come here on "worldwide exchange," and one word that investors need to know today and more on the big tech fines in europe and what investors need to know and what the market is missing on the apple unveil yesterday. first, new bank rules in the sector. the ceo of old national bank is here on set with me. we are minutes away from the liftoff of spacex carrying private astronauts. we will have a live update from cape canaveral in florida. we will have the latest. don't go anywhere. because now their network is self-configuring,

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welcome back to "worldwide exchange." the federal reserve is scaling back capital requirements from big banks. jpmorgan and bank of america would face a cut from 19%. the federal reserve is expected to outline the plan later today declined to comment to cnbc.

shares of old national bank shares with the overall positive impact from the expected rate cuts. it said fluctuating interest rates were weighing on profitability. it operates banks in the midwest in illinois and tennessee and wisconsin. joining us now is jim ryan here in studio. >> good morning, frank. >> i want to go back to the news of the big banks. increase of capital requirements. it is half what with originally because. does that i am pact your business? >> absolutely. all cap ral reital requirements rise in the future. at the earnd of the day, all capital requirements will rise. >> you actually increased your

provisions for credit losses by 140%. what does that say about what you're seeing? >> i think we're starting to feel the cumulative interest rates on borrowers. credit has been relatively benign for us. so, i think bwe're starting to see we're prepared for anything that might come our way. >> you also raised your guidance for net interest income. it was slight. let's be clear. you increased it at the same time. what's going on? is it impacting your ability to loan money or impacting the amount you have to pay out on deposits? >> both. banks make money on the shape of the yield curve. that benefits banks. we are seeing less inversion as you see today and will be helpful for earnings. old national is in a neutral position. interest rates go up a little

bit or down a little bit, we are relatively impacted. >> let's talk about commercial real estate. on the earnings call, you went out of your way to say the holdings in real estate multifamily is not big hig high-rises or office buildings. you are more in suburban office parks and multifamily and widespread. when we talk about the sector, we talk about the entire sector. >> geography matters here. in the downtown urban environment, you see the most amount of pressure where most of our real estate is small as you noted. a handful of floors in a suburban environment. that holds upp better than the bigger environments. >> we talked to a lot of people about whether or not the

economic slowdown is overexaggerated. is it bifurcated. you are in the midwest and in urban areas and what i'll call rural areas like wisconsin and tennessee. you acquired a tennessee-based bank a couple months ago. what's going on? >> i think most of our borrowers would say they're flat to slightly down right now. we are starting to see slowdowns from the previous years. some of the previous years are record years. no doubt about it that most say were flat last year and slightly down. >> i'll give you a last word on one thing. when we are looking at fed rate cuts and what's that going to do for borrowing or lending. is this first cut a meaningful cut or is that a trend and you expect to see more later on? >> i feel the fed will go 25 basis points and get us back to a neutral position most of next year. i think it will be methodical and gradual rate cuts to get us

back to somewhere around 3% or 4% neutral rate. i think that's the right expectation. >> what does that do for lending or borrowing? people will start businesses and buy cars? >> that's a great question. i think it's going to be gradual. helpful for borrowers. deposit rates will come down. savings rates will eventually come down and commensurate with rate cuts. >> i saw reports that cd rates are coming down. so much is in money market funds. >> i think the money market funds will start be effected when the fed cuts rates here. maybe already started to be effected. we saw the bell part of the curve affecting cd rates as long rates have come in. as soon as the fed starts cutting, you will see more money market rates and non maturity

deposits. >> does that help checking or shav savings? >> overall. >> jim ryan. thank you for being a great guest. we'll hear more on the banking sector on cnbc today. the ceo of barclays joins us this afternoon. the ceo of bank of america joins "power lunch" at 2:00 p.m. eastern time. we are going to go live to cape canaveral in florida. we are live with the spacex mission to see the first ever commercial spacewalk. the live look at the launch complex at the kennedy space center. the crew atop the rocket. the chatter as the launch is ready to happen. let's bring in morgan brennan on

the cnbc news line. morgan, how exciting is this to see it happen? >> reporter: i've been up since 3:30 a.m. waiting for this to happen. this mission first announced the polaris two and a half years ago. this is historic where t-minus two minutes from liftoff. the first of three space flights. this is the farthest venture from earth since the apollo era five decades ago. frank, the first commercial spacewalk by a private crew and they're going to be testing the new spacex design space suits to do it. that will happen three days out in the five-day mission.

on top of all that, more than three dozen science experiments. nobody, frank, is a government astronaut. they are all private for the mission. >> we thought we would have you on a couple days ago. a headline from scientific america, they said polaris dawn is the most risky spiace flight. >> reporter: this is particularly risky because they are flying through and orbiting through the radiation belt and testing that on the human body in real time. that is the data you need if you are going to be going to the moon or mars. they're going to be doing this spacewalk. the entire dragon capsule is vented and open up to space. two of the astronauts, isaacman

and sara, a current employee of spacex, two current employees of spacex on this mission, are going to be stepping out into space and testing the space suits and having the experience. it will last a couple hours. there is a lot going on over the course of five days. >> morgan, we are looking at the countdown clock. we are 12 seconds away from the la launch. is there a sign? this is going really well. >> reporter: we're getting liftoff. frank, let's listen in. >> copy, one. alpha. >> vehicle switching downrange. >> propulsion.

>> morgan, we just saw that launch right now. i want to go back to one of the things you were talking about. the person who was funding this miss and the commander, jared isaacman. founder of the payment platform shift 4. he is the leader of this and a passion of his, like it is for you, space travel. what does it say he's not only the funder, but the commander. is that a trend we're going to see going forward? >> reporter: well, i think the thing to keep in mind with isaac s isaacson, we are watching history as the falcon 9 lifts off and heads to space right now. this is a little bit different than that program because this is a collaboration with isaacman and spacex. it will culminate in a third

space flight of the starship vehicle that spacex has been developing. on board right now, you have is isaacman and scott, the mission pilot, you have sara, as the mission specialist. as i mentioned earlier, gillis is a current spacex employee and worked on crewed space flights. i was watching this on the screen and what's going to happen shortly here is the first stage of the booster will breakaway and these are the key moments in any space launch as you have your vehicle moving toward orbital velocity to be able to hit earth's orbit. the other thing i would note

here, frank, the goal they are achieving is the altitude 370 miles above the rth. part of the reason this launch has been delayed in recent weeks is because the weather needs to look good not just for liftoff, but for splash down. >> morgan brennan with the latest on the polaris dawn launch. thank you for joining us. amazing video. we'll have more "worldwide exchange" coming up right after this break. when it comes to amgen's life-changing medical breakthroughs, every second counts. but without investment, those breakthroughs are often paused. citi's seamlessly connected banking, markets and services businesses, deliver global financial solutions. so our client can keep investing in innovations for patients around the world. without pause. for the love of moving our clients forward.

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it's in your nature. it is 5:30 a.m. in new york. there's still a lot more ahead on "worldwide exchange." breaking news. apple and alphabet in long bitter court cases. this coming after the big iphone rollout. it is getting a mixed response. and futures are lower suggesting yesterday's bounce back to be short lived. it is tuesday, september 10th, 2024. you are watching "worldwide exc exchange" here on cnbc.

welcome back to "worldwide exchange." i'm frank holland. thank you for joining us. let's get you ready for the trades ding day ahead. in the red across the board. the s&p and dow and nasdaq hitting their lows this morning. s&p down just about 10 points. it looks like the dow would open up 50 points lower. the nasdaq is the hardest hit down over .25%. apple weighing on this index. r we'll get to that part of it. the eu holding regulators 2.7 billion fine on google for the anti-competitive prices. apple needs to pay the eu $14 million in back taxing. we'll have more on that in a moment. apple is down 1.3%. alphabet down .50%. both moving lower this morning.

you can see other names on the nasdaq 100. astrazeneca down over 1.5%. followed by two chip names. broadcom down .80%. we're watching shares oforacle. very different story. jumping after better than expected quarterly profit noting a.i. demand is helping its cloud business. the company announcing in the new agreement with amazon web services. shares, we're showing you the wrong chart. shares of oracle were up 9% this morning. up higher in the pre-market. that's the money set up. let's get a check on the morning's other top corporate stories which includes norfolk southern's ceo set for an exit. silvana henao is here with more. silvana. >> frank, good morning. that is right. alan shaw is expected to step down as ceo of the railroad company according to reports. the development comes after norfolk revealed it was probing

shaw over possible conduct that sl violated the code of conduct for the company. shaw has faced a turbulent tenure last year and activist investor campaign this year. cnbc has reached out to norfolk for comment. goldman sachs ceo is warning the trading revenue is expected to fall from a year ago. david solomon citing a challenging economic back drop especially during august. solomon adding investment banking activity seems to be better due to signs in the backlog of business. we are seeing shares slightly lower in the pre-market. and reuters is reporting that boeing is telling suppliers it is delaying a milestone production by six months for the

737. the company schedule calls for max output to hit 42 planes a month in march compared to this month. boeing has been struggling to recover production on the 737 max due to increased safety and regulatory checks since that door panel blowout in january, frank. >> silvana, thank you very much. looking at blooeing shares. down right now. turning back to the top story. apple's top court ruling saying they must pay $14 million in back taxes. cnbc has reached out to the company for comment. the order this morning coming just one day after apple unveiled a lineup of iphones headlined by the iphone 16 pro and iphone 16 max. tim cook says they are built for a.i. from the ground up, but not able until the beta version

rollout next month. joining me now is richard kramer. >> good to see you, frank. >> i want to focus on the headlines. the back taxes that apple has to pay. how big of a deal is it for the stock? we are seeing it move lower in the pre-market down 1%. >> i think more than 1% for a large cap stock like apple not that big of a kedeal. apple has set aside the money in an escrow account and claim it back in u.s. foreign tax credits. i would not worry with the cash balance sheet. >> all right. we're focusing on the stock move for apple this morning on the news. yesterday, after the big event, it was meh. kind of meh. not a big reaction. what was your take on that and the stock move and the

announcements that apple made? >> i think the stock moves of 1% or 2% stocks in the large cap is irrelevant. there will be a huge amount of noise trading with the names. the tech press and innovations and most ordinary consumers see a new phone. the last note we did on apple is circling the wagons. locking in the install base and make sure they don't leave the ecosystem. apple at 1.2 billion users. they needless than one in five to upgrade this year to make this year a success. next year, you will see a new form factor and the a.i. services rolled out with the language variance. chinese and spanish. all of the stuff by 2025. by the next time they launch the

iphone, that will be in the market for people to try. >> richard, i'm not clear how you feel about yesterday. i got to be honest. i want your reaction and what analysts have to say and see if you agree or disagree. this is from barclays. they said we don't view the a.i. offering as compelling enough to drive significant demand given macro risk in china and regulatory hurdles in china. agree or disagree? you say the analysts and experts are over the idea of a new phone, but consumers are more willing to adopt. one analyst says they don't see this driving iphone churn. >> again, you have to look at the factors. things like carrier programs, the fact that people's phones degrade when they get old. the battery doesn't work as well. they break screens and so for the and people want the product which is the single tech product

they use every single day. people go too far in the direction of scrutinizing the features and underestimate the fact this is the number one brand in the world and they have a huge number of people locked in the ecosystem. the question is not will they churn out to another ecosystem, but will apple come out with attractive features, for example, a hearing test or very simple a.i. features that don't feel threatening to users that compel them to upgrade. again, i think apple as a company, is patient about not needing to hit quarterly numbers and not needing this cycle to be a huge success knowing that they have such a large install base and form factor in the next cycle. >> richard, sit tight. i want to bring in eunice yoon. eunice, coming over to you right now. we're talking about apple here

in the u.s., but one of the biggest rivals in china had their own big event yesterday making waves and trying to one-up apple. give us the story. >> reporter: that's right, frank. huawei launched its new tri-fold phone describing as a tablet in the pocket. it is a 10.2 inch tablet-smartphone in one. it comes in red and black with a portable keyboard. the three storage options mean the phone costs between $2,800 and $3,400. on the web site, it had pre-orders hitting 4 million. it says it will be in stores on september 20th, which happens to be the same day that the iphone 16 is also going to go on sale. >> our eunice yoon right now. richard, back to you.

you heard the report from eunice. the tri-fold phone the same day as the iphone 16. this is a competitor? >> i think this, again, at $2,800 to $3,400, this is a niche product. you could see it is like the vision pro product from apple. how many of them did they sell? not many. this is a great demo project to attract eyes to huawei's brand. they can't produce enough chip force the huawei smartphone that would be competing with the new phones in china. with several hundred million iphone users in the install base in china, will this be enough for them to leave behind all of the connections to the apple ecosystem and switch to huawei, history shows us it doesn't happen simply. >> a lot of questions to be

answered. wedbush states 3 million iphones have not been upgraded in the last three or four years. richard kramer, thank you. coming up on "worldwide exchange," hpe is hit on plans to pay for a $14 billion takeover. you see shares are down 6% in the pre-market. we'll be right back after this break.

welcome back to "worldwide

exchange." take a look at futures. you can see we are red across the board. lower for the s&p and dow. the nasdaq laggards. apple on the list. much more "worldwide exchange" coming up right after the break. thicker fuller hair with just one capsule a day. you are bountiful, it's in your nature. at aes, our energy solutions have powered the world forward for more than 40 years.

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welcome back to "worldwide exchange." time for the big money movers. three big stock stories of the

morning. trump media closed up more than 5% yesterday. shares responding to the national poll out this weekend showing former president trump and vice president kamala harris are neck and neck for the race for the white house. remember, the debate is later tonight coming up. hp enterprise is falling after the stock offering. hpe is using the rowproceeds fo the sale for the takeover. under armour is expecting a bigger operating loss this year. shares are fractionally there aat flat. un underarmour is repopsitioning

itself as a brand. coming up, shares on palantir moving lower. yesterday, they surged 14% following the news the company is added to the s&p 500 later this month. i'll talk about that and much more with ceo alex karp at 11:00 a.m. eastern. you will see much more on that interview friday here on "worldwide exchange." we'll be right back after the break.

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welcome back to "worldwide exchange." time for the morning call sheet. deutsche bank resuming tesla with the $295 price target. it is a technology platform attempting to reshape industry. and bernstein initiates ge with the $101 price target. adding it consistently delivers the highest margins. price target hikes on oracle following the earnings. goldman sachs moving from $135. barclays going from 160 to 172. shares of oracle are up 9% right now. coming up on "worldwide exchange," the fto o nacrsurext guest says are drivers for the market. if you miss us, check us out on

apple or other podcast apps. more "worldwide exchange" coming up after this.

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welcome back to "worldwide exchange." u.s. stock futures under pressure after the s&p closed in the red yesterday. the nasdaq still under quite a

bit of pressure. w we have a number of movers. apple. the tech giant must pay more than $14 billion in back taxes from the 2016 ruling that ireland recover back taxes from the company. shares are down 1% or more from the ruling. the court upholding e reee regulators. on the other side, we are looking at shares of oracle after reporting a profit. noting that a.i. demand continues its cloud business. shares of oracle up 9%. big banks reporting a 9% increase of capital requirements. let's get more on the broader markets and bring in our wealth advisor. good morning.

good to see you. >> good morning. thank you for having me on the show. >> what do you think of the pre-market with the futures? we saw futures mixed at 5:00 and since taking a move to the down side. >> this market likes keeping us on our toes. it was nice to see the rally and the nice levels revisited. the fact is this is an extremely volatile market. we have the fed change strategy that is about to start with the next week. we have the election on the horizon and the geopolitical tension we're still facing in the world. investors are very aware of it and they're looking at the portfolios that have performed very well for them the last couple of years coupled with the fact we have been in the high interest rate environment. this is the time to be nervous. >> i want to see how you see

today shaping up. what is your "wex" word of the day? >> my word of the day is divided. i think this market is extremely divided and it's confusing for investors because they're looking at their portfolios and they could not help but fall in love with the tech names that reported so well in the portfolios. plus, the fact we were able to get such high yields in cash on short-term deposits. going forward, it's going to be a different picture. we need to change the strategy. we tell our clients to focus on quality and defensive plays and go into sectors like financials and healthcare and industrials, consumer staples. look at strong cash flows and competitive positioning. >> you are saying go to defensives as we go into the fed rate cut. is that contrary to the traditional philosophy for the cyclicals?

>> you are making a great point, but it depends on the perspectives. the volatility we are facing the next couple months is very temporary. we need to have a long-term view of the markets. once the rate cuts start, once we go into some of the cyclical plays that work well in the environment, there is also a larger picture of the sectors that historically do well at the later stages. >> i want to get to your picks. the energy overall is supposed to be earnings. 14% lower year over year. oil and gas, 15% lower year over year. tell us why. >> it's a matter of perspective. when you think about our interest rates ever changing and just a month ago, the energy was one of the top picks for every single firm out there as the defensive plays.

every single time, we see declining oil prices and potential for the increase of production by opec. this is going to present weakness in the oil space, but also buying opportunities. so, energy, if you look at it, definitely has a role. >> thank you very much. one last look at futures in the red across the board, but off the lows of earlier today. nasdaq down .25%. that does it for us. "squawk box" starts right now. good morning. futures just a little bit lower at this hour. pretty good day yesterday. the major averages rebounded. the first positive session of the month. it's still early, though. apple unveiling the new iphone, but the glow gets a wet blanket from the eu in a ten-year case over back taxes. and we have liftoff. the polaris dawn mission is on

its way. it's tuesday, september 10th, 2024 and "squawk box" begins right now. good morning, everybody and welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. andrew is on assignment today. we will hear more from him about what he is doing out in l.a. let's look at the u.s. equity futures. you see modest declines. dow down 13 points. nasdaq off over 50 points. yesterday we saw positive gains in the morning futures and that built through the session. markets had their first positive day of the month. s&p 500 with the best since august. it snapped a f