hello, everyone. good thursday morning. welcome to worldwide exchange. i'm susan li. >> market master class, the fed finally, finally raising rates for the first time in close to a decade. the dots show that the fomc sees four hikes next year. >> the committee expects that economic conditions will evolve in a man thaer will warrant only gradual increases in the federal funds rate. the federal funds rate is likely to remain for sometime below

levels expected to prevail in the longer run. >> fed ex beats the street in the second quarter with profits rising 4%. >> profits falling some 12% in the second quarter but it's cloud business continues to show growth. >> meantime russian president vladimir putin says a $50 oil price is too optimistic. but that is over for the country's economy. >> so we had a 1% gain across the board yesterday. i guess after finally the first rate hike in close to 20 years. this is the day after dow jones industrial up by higher than 2 points. the nasdaq gaining some 18.5 points. >> we final have to lift off.

the federal reserve raised rates. unanimous decision. the quarter point marks. and the most accommodative policy. the fomc still sees four hikes next year. however the market is only predicting two or three for 2016. we're seeing the median forecast of 1.375%. they have taken one hike off the table. let's show you how a different asset classes have reacted. we're seeing a broad based rally and that's gaining more strength throughout the morning session. xetra dax up 3%. cac 40 also showing similar gains up by 2.6%. i'll show you the sectors and you'll see that the cyclicals are leading the rallies. autos up by 3% and doing very,

very well. in terms of the asian trading session it's very similar. there's plenty of relief that we finally got this first fed hike. the relief over the communication but that's pretty clear. the nikkei thanks to the weaker yen against the u.s. dollar. up by 1.6%. the aussie market is up by .5%. we're seeing emerging asian markets sell off. >> i think the question is how long does this rally last for since they're servicing debts go up because of, you know, the higher dollar and also what's happening with the yield curve as well. do people seek more safety and returns when it comes to the u.s. treasury market. let's check it out. the yield curve being pushed up after the first quarter point hike in close to ten years and the short end of the yield curve

is probably more sensitive to a rate hike than any other point across the curve. and the highest that we've seen since 2010. and we only push about 223. close to 230. not the highest on the year since 2015. we hit a one week high versus it's major trade of currencies. we're still looking at a push of 1% in the dollar index and ask for oil. we're still at the lowest since 2 2009 and continuing to drift lower so the west texas crude pricing is telling us we're down 14 cents barrel close to testing the lows for the contract and looking at $37. just two pennies above $37 per barrel. let's get more on this historic fed decision. it took ten years because here's steve with the latest.

>> the federal reserve raising interest rates for the first time in nearly a decade. >> all right. let's get more on this historic fed decision from steve once again. we'll try to get the tape good for you. i think we've got it. >> the federal reserve raising interest rates for the first time in nearly a decade. assuming that future rate rises will be gradual. fed chair janet yellen in her press conference saying that she's raising rates in order to have some amo and also signaling that the economy can with stand these kind of rate rises right now. >> we recognize that policy is accommodative and if we do not begin to reduce the accommodation the odds are good that the economy would end up overshooting both our employment and inflation objectives. >> for a gauge of how the fed

might raise rates, you can look at their summary of economic projections. the fed's own forecast for how rates will rise. it sees a 40 basis point rate at the end of this year. 140 attend of 2016. 240 at the end of 2017. that would be the slowest most gradual rate hike cycles that we have seen. fed chair janet yellen also talked about what a gradual pace of tightening means. >> gradual does not mean mechanical, evenly timed, equally sized interest rate changes. so that's not what the committee means by it. my guess is that the economy will progress in a manner that is not sufficiently even. that we will decide to make evenly spaced hikes. >> we'll wait to see how the markets react and whether or not the expectations for the fed are in line with their views going

into the meeting but with stock markets soaring and bond markets relatively low it appears that the fed delivered pretty much what the market expected. >> that was a tightrope to walk and they did it pretty well. since it was what people perceived to be dovish so you're up a quarter point when it comes to borrowing rates but there's one every quarter they think at least for now but we have seen them kind of at that place for awhile there but it took ten years to finally raise interest rates and what i find interesting is that the decision was unanimous. it was voting consensus. it wasn't the first time to hike interest rates. participation rate at the lowest going back to the 70s. and it's at least 25 bits from now. >> a lot of people expecting the dovish hike. if you take a look at the dot

plots, they took out the plot for 2017. but they left everything in place for 2017. that's still four hikes. they have one guest on the show this morning that agreed with me when i said this sounds more like a hawkish fight from the fed. we'll see how it plays out over the next couple of months. >> no, they didn't. >> they didn't. >> all around the world there's a rally of thank goodness the uncertainty has been lifted and we should point out that utilities have been performing well in low interest rates environment. that shows the dovishness that people are getting. the way it's communicated this was very important. this was very clear. it can take a page out of the fed's play book here but also interesting to see the strength in the dollar. a lot of people said we're going to be selling the dollar on the back of it.

we'll see if it happens over the last couple of weeks. and we've seen so much strength in the u.s. green back. the yield curve, i found the two year note tracing 1%. and 2010 the last time that happened. the ten year treasury yields. it's still pretty sticky. we haven't even hit the highs of the year, can you believe it. it would be much, much higher to be hiking interest rates. >> it's well above 3%. the fed would be comfortable. wouldn't you think that inflation should be a lot higher than where it is right now. i think that's probably the main concern. we're still below that 2% fomc target which we have been at for three years. and that might be a bit of

concern. >> let's get the fall out from the china angle on the first get rate hike we've seen in close to ten years and checking in on the china currency, heading now on the tenth day and the midpoint range at the weakest level since june 2011. a four year low so this is after the fed's decision to raise rates. saying the lift off will have an impact on its trade. let's bring in eunice with the latest from beijing. it's on shore at least. >> i'm actually just really glad that i get paid in u.s. dollars. it would be inconvenient. but overall, the reaction here has been mainly from the commerce ministry. the commerce ministry said that they do expect to see an impact on trade. they're studying the extent of that impact and they're probably

looking at two different things. one is what kind of impact the fed's move will have on the global economy. there has been concern here that the u.s. interest rate hike could potentially hamper a recovery and that the world wasn't necessarily ready for it and that chinese economy is slowing down so that would be a negative. on the other hand there's a lot of speculation that the rate hike and any more tightening cycle could is put an increasing pressure to depreciate and so already we're seeing it at 4.5 year low. that is of course good for exporters but at the same time the authorities here have been conce concerned to be make sure that they're in control with any type of moves in the currency. the other point that's been of concern by some officials here

is the impact that the capital outflows already hit a record in november. there have been rumblings that they're going to continue to hit a record in december and that is putting pressure on liquidity here. overall we have been hearing a lot of talk on social media about how people are saying maybe i should just invest my money some place else. because the expectation now because it's going to continue to weaken. >> meantime i'm looking at commentary on the oil price for goldman sachs. goldman sachs saying this morning although oil prices are now below the three month, $38 per barrel wti forecast it still sees a very high risk that prices may decline further as storage continues to fill. it remains anchored by the high financial stress. near the $40 barrel required to

achieve through declining u.s. production. he has been addressing media at moscow. the $50 barrel oil priced next year. the worst is over from the russian economy. on syria he said a political solution is the ultimate end. russia will continue it's military operations there. >> he said $50 per barrel will be very optimistic. it sounds like it's not realistic. let's turn our attention to the campaign trail in spain because we do have that general election on sunday. take a look at this. tough day for the prime minister on the campaign trail. the spanish prime minister getting punched in the face by a young man at an event in the city which is in his home region. the spokesperson says he was not

hurt in this incident but he later appeared with a deep red mark on his head and his assault comes only three days before spain's general election where the people's party expected to win the vote. let's give you a run down of what to watch for on this thursday. new filings for unemployment likely falling last week. according to the firming labor market. widen in the corner in a 10:00 a.m. december philly fed survey is due out and then we have general mills before the open. red hat is out after the close. looking for 24/7 digestive support?

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these are the headlines. the fed raises rates for the first time in nearly a decade but the fomc still sees four hikes next year. fed ex delivers on earnings with profit and revenues rising 4%. and vladimir putin says the worst is over even as the oil price continues to slide. >> speaking at a press conference following their fomc

decision. fed chair janet yellen saying that some consumer rates. >> a slew of banks to increase it's prime rate to 3.5%. what does this mean for the average consumer in the u.s. let's go live to west palm beach. senior financial analyst. so a slew of banks, wells fargo, boa, hiking their rates but not by that much. is it that big of a deal. >> in and of itself a quarter point rate hike has an impact on the household budget but what they need to be mindful of is what could the effect be if the fed continues to raise interest rates over the next couple of years. in that context that 3% mortgage today could be 5% in the coming years. that spells trouble. that's why people need to be

paying attention. >> put things in context. the fixed mortgage is at 18%. so 40% right now. 4% for your mortgage rates but that's not bad compare bli. >> but you're absolutely right. but the people sort of anchor to what rates have been. even if they remain low for a long time even as they work their way higher people aren't going to think of it that way. they're going to think of themselves as borrowers before rates go up. on a relative basis rates things are attractive. >> if you say the focus is on the tightening cycle next year, what if we do get the hikes? that's going to have a major impact on the mortgages if you're a mortgage holder. what should you do? especially if you have an adjustable mortgage. >> especially if you have that

adjustable mortgage. now is the time to refinance out of that adjustable. lock in a fixed rate. you can go with a traditional fixed rate mortgage. you can refinance that's fixed for the first say five or seven years. that may coincide. it functioned as a fixed rate loan for you but the point is you don't want to put yourself in a position where you're susceptib susceptible. >> the banks were so quick to raise the prime rate but what they haven't budged on is a rate and what's that going to change. >> well, i think it's going to take at least a couple of rate hikes before savers start to see any type of measurable improvement. but banks are sitting on a pile of deposits already. they don't need to raise rates to bring more in the door. banks will have their margins

squeezed by a low interest rate. raise the rates on loans but not necessarily on deposits. >> remember 2004-2006 when we had 17 interest rate increases and we went into that sub prime crisis into 2008. that's not going to happen this time around, right? >> well, janet yellen certainly hopes not. that's why she keeps pledging this gradual rate of increases. the significance of rate hikes mounts with each additional rate hike. at this point it's a baby step away from a 0% rate. the significance of this is going to mount. you look at the past two rate hike cycles. it popped the housing bubble. 1999 and 2000 it popped the.com bubble. and that's why they keep pledging this gradual pace. >> thank you so much. thanks for getting up so early for us.

the financial analyst at bank rate.com. we're going to go to break here on worldwide exchange. nothing but child's play. we speak to a toy expert that has plenty of tips for last minute shoppers out there.

yes, we're getting ever closer, only 8 shopping days

left until christmas but there's no need to panic if you still haven't finished buying gifts just yet. our next guest is here to run us through the most popular boys and brief us on the brands best this coming season and publisher of the toy insider.com also known as toy insider mom. lori, great to have you so i guess what's old is new once again so i'm looking at the toy that you have next to you right now. you're tell naeg ting me that te awakens is the new item. >> look at him. look how cool he is. everything star wars is hot. we got a taste of it on september 4th for force friday. one in every $11 spent on toys at that point was spent on star wars item and it gave retailers a chance and manufacturers to get ready for this holiday season. so the star wars toys are really, really cool and really, really hot. >> given that the retailers

shafted other toys to make shelf space for the force awakens it better be a hot selling artist. it's the talking toys because barbie now talks as well. >> yes. she loves to have a conversation with you. kids can talk to her. ask her questions. play games with her and it's not just barbie. barbie is great but even with preschoolers. elmo. there's an elmo that responds to children. he has 8 different games. he know what is the kids are doing. if they're playing red light green light he knows if they're running or not running. so he's very interactive and for older kids we're seeing a lot of robotics. there's a g-15 from spin master. out of the box, this robot actually tells kids how to build him. they can program him, control him, and he understands voice commands and even with the star wars toys there's a yoda, a legendary yoda that you can give

him voice commands and he will answer. >> i've heard repeatedly that it is all the rage this year so maybe we should actually take a closer look at it. anyways, coming back to star wars, we talk about the substitution effect. do you see a lot of the other toy makers and other toys, per say, suffering because so many people are simply buying the star wars. >> not at all. star wars has definitely taken up a lot of retail space. but, you know, maybe some of the action figures for the boys have taken a slight hit. a lot of blockbuster movies this summer. they're doing well in helping to drive the market. that's up over 7%. and that doesn't include 4th quarter numbers so everyone is optimistic. shopkins. little collectibles. series four is just launching

tomorrow. we have lego doing amazingly well. so many great toys are driving the industry this year. i have to let you go but i haven't finished my shopping. can you tell me how much it costs this year. this is about $119. but there's lots of choices. so i also have this voice changer and you're looking at $29 for an item like this. blade builders are $49 so really there's something for every single budget. >> okay. 119 for that. thank you so much. thank you up for getting up so early. >> the darth vader voice thing, many grown up guys i know would like that one. >> $19. the light saber was $40. >> $49. >> for a light saber.

still to come on the program if you have junk in the trunk then jeffrey has a warning for you. we'll be hearing what the bond king has to say after this.

>> good thursday morning. hello everybody and welcome to worldwide exchange. i'm susan li. >> these are your headlines from around the world.

>> yes, it took ten years but they finally raise interest rates. the federal reserve moving for the first time in close to ten years but showed the fomc sees four hikes possibly next year. >> the committee expects the economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate. the federal funds rate is likely to remain for sometime below levels that are expected to prevail in the longer run. >> delivering on earnings, fed ex beats the street for the second quarter with profit rising 4% on higher margins. >> cloud supports oracle. the company's profit falling 12% in the quarter but cloud business continues to grow. >> russian vice president vladimir putin says a $50 oil price is optimistic. and that the worst is over for the country's economy.

>> hello, hello. if you're just tuning in thank you for joining us on the program. let's check in on how markets fair the day after the first rate hike in ten years so checking in on the implied open. telling us we're above fair value today. looks like we're pricing in gains of 6.5 points. close to 49 points and the nasdaq price in advance of 20 points or so. yes this is the day after the first fed rate hike in close to ten years european markets as you see with really global markets. relief rally of sorts as we have this uncertainty finally lifted on when we're going to get the first move in close to a decade. so the cac 40 seeing monsterous gains of 2.5 and the german dax powering ahead and the ftse mib with gains of 2.25 and that follows on the advance we saw in asia last night as well.

>> speaking at the press conference following the fomc decision, the fed chairwoman janet yellen says the fed will continue to track development in financial markets very carefully. jeffrey gunlac told cnbc he believes that he does not expect the problem to be remedied any time soon. >> thank goodness it didn't happen a month ago because when you write in a huge redemption cycle at the end of the year while the fed is raising interest rates it would have been a perfect storm but that's been pushed forward since the window of redemption. i have to believe there's credit hedge funds down very significantly. you know they're down more than that. so if your leveraged one time you'll worry about being wiped out. so we'll see big redemptions. that pleasure is likely to wear

in the junk bond market for some months to come. >> let's talk about the fed follow out. joining us now is the head of fixed income economics at ubs asset management. let's kick off on comments. and rightly so. i would say to at least from the fed's perspective. you do have to worry about this thing. and now the liquidity of course is driving things a lot further than they would based upon the fundamentals and of course all of these issues there but i think janet did the high yield market a service by delivering what was expected. the last thing needed at this time of the year was the extra uncertainty or the extra volatility. >> we have seen a sizable rally the last few trading days. let's talk about the performance in the dollar. it's rising once again. still below that 100 level but

actually going into the meeting a lot of people thought we're going to be selling on the news. that didn't quite happen. why is that, do you think? >> it's interesting because i think that the fed, the market was looking for a dovish hike as they call it. oxymoron event. it's a bit more hawkish than i thought. particularly bringing in language like they have confirmed the improvement in the labor market. labor market that's done. now it's about inflation. but for the dollar i mean the dollar had been driven over the last year. one of them is the central bank policy rate divergence. the feds told us where they are going. we have less uncertainty there. meanwhile the ecb and the bank of japan are looking reluctant loosening what the market wants. that means there's less to run in that story. but the other theme which is

commodity weakness and has to do emerging market weakness. >> what are you saying? >> relative to what the market was looking for. i still think they were dovish. >> i think partly because the market was not really -- or at least the bond market, and the fed delivered. this is the case of the fed delivered the statement we expected. that doesn't mean the market believes it. it's a very different view on inflation. the fed have converged on about four rate hikes a year. and that's one of the key things. >> people also identify that inflation has run below the 2% target rate for the last three years and that's the main part of concern. if this is persistent we might

change that. >> if anything that's quite good that they're data dependent. if they were set on a path no matter what that would be terrible for credit. >> why don't you tell us what the path is in terms of interest rate hikes. >> they're looking at something like four a year. there's been that convergence so the high flying hawks and low flying doves, they're all converging and that kind of implies, it's the bank of england where they only hike the press conference. so looking at that, you think doesn't sound very data dependent. one of the things they end up doing is almost purposefully surprising the market. we get one of the next press conference depending on how the data turns out. >> the market was so well prepped. it was so well telegraphed and that's also a nice class in a way for the ecb. they can really take a page out of the fed's play book i think.

is it a fallacy to believe. >> i think it would definitely not be as smooth. i would argue that this first rate hike has never been that smooth. the reason everyone is expecting december is so well signalled is because they had messed up in december. they stopped mentioning issues about world economy. >> we tend to forget about that. >> they focused on that. the pricing of the first rate hike moved all over the shop so they took october. they said no guys really it's going to be december unless something bad happens. it's the october one that really fixed that. so this one was right. but just because they did such good repair job. >> all right, josh. >> thank you for that insight. head of fixed income economics at ubs asset management. >> okay. we got some earnings to run through that. includes fed ex is the second

quarter profit. and that beats estimates as higher margins of also lower tax rate and cost cutting offset weak industrial production and global trade. so revenue in the company's ground provision rising 32% thanks in part to higher parcel volume, higher prices being charged to customers. ceo fred smith says that fed ex is seeing a record number of holiday packages driven by the steady rise of online sales. fedex rising 5% in after hours. >> oracle shares are lower trading after the technology company posted a 12% fall in q-2 profits. however oracle does expect the cloud business to grow at a quicker rate over the next two quarters. josh has the story. >> it has been not easy being an oracle bull this year. the stock down more than 14% heading into the latest earnings

report but at least initially there does seem to be relief for this report. the software maker reporting earnings per share of 63 cents on revenue. $9 billion. the street was looking for 60 cents on 9.06 billion. so a beat there on the bottom. basically in line on the top. now looking down on to the report, oracle said total cloud revenues jumped 26% in u.s. dollars to 649 million or about 7% of the quarterly total revenue and that was better than what analysts had forecast. new software licenses, a me trick for customer deals clocking in at 1.7 billion. he rates oracle neutral called this report better than feared. a slight beat called a plus. there was white knuckles going into this print he tells cnbc but this was a step in the right direction. for cnbc, i'm josh lipton in san francisco. >> pier 1 imports is cutting

it's guidance after saying a drop in same store sales amid soft customer traffic. the home goods retailer continues to be challenged by the decline in the casual in store shopper and added it reflects a modest start to the holiday season so far amid a very competitive promotional environment. pier 1 falling 15% in after hours and down in frank further trade. >> hilton worldwide is reportedly seeking approval to spin off it's hotel properties and to a real estate investment trust. the move would be tax free and the company is pursuing a blessing for the irs. the transaction would involve most of the 147 properties hilton owns across the globe. in october it raised it's full year guidance held by higher occupancy and rates. german trade up by 1.7. now shares in other hotel moves also moving higher on the back of that hilton news.

accor making gains up over 4% and now over 5% in paris trade. >> this after buying up in the last few days. a buyout possibly coming from cerberus and close to a deal to buy most of avon's north american business for a price tag of $170 million. the private equity firm will also pay 435 million for the close to 17% stake in the cosmetics company and they'll get three seats on the board in return. avon will also name two independent directors and a new chairman will be chosen by cerberus. avon is trying to fend off the activist investor which called for cost cutting and a new ceo. checking in on avon we're up some, wow, 13.25% reaction in frankfurt trade. >> aig is ramping up it's stock buy back plan to a total of

4.3 billion. it's under activist investors pushing the company to cut costs and consider splitting into separate businesses. they already bought back nearly $10 billion in stock this year. aig shares in germany up 2.5%. >> we're going to go to break here but still to come on the program it's going to cost you more to stream on pandora and other online radio stations from your favorite artists. if you want to hear katy perry and the like, music industry is looking for more cash. we'll get you more after this short break. no matter how fast the markets change, at t. rowe price, our disciplined investment approach remains. we ask questions here. look for risks there. and search for opportunity everywhere. global markets may be uncertain. but you can feel confident in our investment experience... ... around the world. call a t. rowe price investment specialist, or your advisor...

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welcome back to the show. general electric shares up more than 2% yesterday. one of the best performers on the dow. this is after double digit growth in operating profits. next year up to 15%. it's annual investor day and the company said it will return about $26 billion to shareholders and the earnings targets are in line with analyst estimates. a nice surprise for many. ge expects a boost from the power and energy management unit but a decline in oil and gas transportation. they're giving back $26 million to shareholders and lift the

stock price. which hasn't been doing badly. >> up to 20%. that isn't bad. >> there's been criticism that they haven't gone anywhere. that's pretty good performance in the last quarter. music streaming pandora and other similar streaming services have to give up a bigger chunk of their profits. and standing by at headquaters. a u.s. panel of judges ruling to raise penalty rates. they offer add supportive services and we'll face a bigger deal next year. the copyright royalty board is from 14 to 17 cents to 100 song plays. it goes down from paid subscriptions. it will rise for inflation over the next five years and the ruling does apply to on demand services such as apple music and

spotify that have direct deals with companies. the ruling will add to cost as it increases competition. the company has never been profitable. it paid more than $400 million in royalties last year. 44% of its revenue but pandora ceo is okay with the increase which is much less than industry watchers had expected. he says the hike is balanced and is something that the company can work with and some say the board didn't go far enough. sound exchange for record labels and individual artists was pushing for higher rates between 25 and 29 cents and more than half of a streaming services revenue. the music is used and recently settled royalties. and paid $90 million to big record labels including sony and

universal. and expand international presence as it takes on apple music and spotify. and 50% in after hours today. thank you for that. need a ride home? now you can hail a uber from book messenger. people can sign up for the ride sharing service and log into their accounts which is tied to credit card. just like that users can track their drivers and when their cars will arrive and get a reseat. facebook has been working steadily on building marijuana into a marketing app for brands. >> i can't believe this. but it's been 26 years today since we first heard it. don't, yeah, the first episode of the simpsons. is that what i'm hearing from the gallery? i'll work on it guys. so the simpsons aired in the

u.s. on fox 26 years ago. so homer, marge, lis aa and mage have been 583 episodes over 27 seasons making the simpsons the longest running u.s. sitcom and scripted primetime tv show in history. they go traveling overseas. >> the australian one was great with all the frogs. >> the boot. >> i didn't know they had it. >> also by the way, in a historic -- they're calling this a historic special edition of running wild with bear grylls. he takes commander and chief president obama himself on an adventure in the alaskan wilderness. and melting glacial water and marshmallows at the campfire.

it gives him a true taste of alaska. have one favor to ask. i promised my wife -- >> the only thing i can find in the airport. >> this is the classic. this is classic obama bottle opener. >> you look ripped. >> i am pretty ripped actually. i'm fairly cut but it's possible that that bottle opener, he is a little dated. there's no grey hair on the obama figurine and clearly the president is taking a little bit of a toll. but michelle tells me i'm holding up okay. >> fairly cut. good thursday morning folks here are your headlines today. the fed raises rates for the first time in close to a decade and the dots show the fomc is

looking at four hikes next year. federal express and fedex delivering on q-2 earning with profits and revenues rising and russian president vladimir putin says the worst is over for the country's economy even as the oil price continues to slide. victoria stilwell, you appear on tv working with canines. are you a dog lover, watson? i do not own a dog. but i work with veterinarians. how do you do that? i help them analyse over one hundred thousand pages of medical studies. that's great... 'cause they can't exactly tell us what's wrong with them. isn't that right, rosco? rosco. who is a good boy? who is a good boy? you are. yes, you are. watson, i think you need to work on your dog voice.

the day after the fed finally hiking interest rates for the first time in close to ten years and we're looking at a positive start priced in so far so the s&p 500 and dow jones industrial is by 50 points now and the tech heavy nasdaq should be looking at gains of 22 points or so when markets kick off. we waited a long time and finally got it. in some ways it's a relief as the uncertain city lifted.

>> there really wasn't a storm. it was a storm and a teacup because we saw markets higher across the board. we saw no major volatility. 8.5 billion shares being traded and it's part of communication leading up to the december hike has been very, very good. that was a complete mess up so september rather, that was a big mess up and they improved throughout december. >> they had to walk a very tightrope have to say. delivering pretty much the markets as expected. so still looking hawkish but the statement was the dovish sounding part of the statement and the fomc. the press conference outdoors saying we're not in a rush, by the way, we're at a gradual pace of normalization. and they're still looking at -- we're looking at trend growth of 2.4% for the u.s. economy. it's not bad. >> not bad at all. >> that's it for today's show.

i'm carolyn roth. >> i'm susan li. u.s. squawk box is up next. every dollar count. t grg that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

good morning, the world is watching after global stocks rally on those rate hikes. the first time since the financial crisis. and music to pandora's ears. shares in the streaming service following a ruling on music royalty rates. and uber gets a big light from facebook. it will allow users to hail a car directly from the social media network's private messaging app. it's thursday, december 17th 2015. first day of the rest of our live where is we're actually charging an interest rate on money. we'll see if it's okay as squawk

box begins right now. ♪ >> live from new york where business never sleeps, this is squawk box. i don't know who it is but you know the song? good morning, everybody. welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. the u.s. and cuba reaching a deal to resume commercial flights between the two countries. we'll have more on this story just lal ba little bit later th hour. the global markets reacting to the first fed rate hike in nearly a decade. u.s. equity futures are up again this morning. the dow is up 50 points above fair value with the s&p futures up by 6.