>> crude crushed, stocks slammed. oil prices plunging below $28 barrel sparking a sell off in equities around the world. >> netflix shares rallying on better than expected subscriber growth while ibm getting a hit on a weaker profit forecast. >> plus your money, your vote. donald trump gets a big endorsement from sarah palin. it's wednesday, january 20th, 2016 and worldwide exchange begins right now. >> good morning. another morning for the markets.

welcome to worldwide exchange on cnbc. >> another manic morning for the markets. we'll brick you up to speed on that in just a minute. >> but first a developing story out of pakistan right now. gunmen storming a university in the northwest part of the country early this morning shooting at least 80, killing 20. the attackers scaling walls to get on to the campus and then held some students and faculty hostage. police and security forces moved in and a gun fight followed. we'll continue to monitor this breaking situation and bring you the latest developments through the hour. >> wti crude dropping below $28 barrel. it's lowest level since september 2003. brent also down hovering near a 12 year low. worth watching of course. we'll get stock pile data from the american petroleum institute later today. we'll have a look at stocks down sharply in asia overnight. japan's nikkei dropping nearly 4% entering bear market

territory. by doing so we have been watching that, flirting with bear market territory over the last few days and resoundingly falling into that overnight. now the latest survey shows japanese manufacturing mood did slip this month. that survey coming out overnight and there's worries about a china slow down. more on the overnight sell off in asia from our colleague sri in singapore in a minute. >> but first u.s. equity futures plunging now. we're talking triple digit declines. they have been deteriorating all night. dow futures down 319 points. s&p futures down 35. nasdaq down 80. this after a rebound yesterday. >> just. >> just a rebound. it looks like we are going to go back and retest for the third question those august lows. we drop below that during yesterday's session. closed above it. we'll see what happens today.

this is an ugly picture in u.s. stock futures. let's show you what's happening in europe. red across the screens. this is a global sell off and we're looking at a dax down 3% at this hour. some of these declines are spreading, deepening, worsening, taking their cue from oil but 3% plus declines across the board for major averages in europe. >> all of those five major markets we're looking at over every time frame over the last 12 months. whether you're looking at 9 or 12 months there all in the red now. so no issues there. >> it really is. >> anything is looking green right across the screen. >> i would just mention one more. on the brink of falling into bear market territory which means down almost 20% from the high. >> there we go. so red arrows across the screen in europe and also overnight in asia. sri joins us with a rebound up asian trade. >> heightened risk aversion out

here and you're right. oil is central to the negative feedback loop. i think we're seeing some heightened volatility and down swings in mature developed markets in our region. nikkei 225. as you said in bear market territory now. the market at the lowest close since october 2014. there's money going to the safety of the japanese yen so that's driving down the exporters in the broader market. the hang seng as well. lowest close in 3.5 years. the market was nervous about what is happening with the hong kong dollar. we have seen the lowest levels since 2007. fears of capital dragged down a lot of the rate sensitive stocks. china markets behaving themselves relatively speaking. they're still hitching their wagon to the prospect of policy support by the pboc but broadly a very, very grim session whatever way you slice it out here in asia.

heightened risk aversion. underlying sentiment still remains shot to pieces out here. back to you. >> thank you, sri. with the japanese yen at a one year high against the dollar. sri in singapore for us this morning. breaking news from the institute of international finance. the iif reporting $735 billion was yanked out of emerging markets last year up sharply from 2004. the image tells the story. this is capital outflows. basically financial assets pulled out of emerging markets. they always track this. they have a global picture for the year. the last one just before the line is what happened in 2015 with all the concerns about slower growth and commodities hitting the economies. about all the money coming out and past the line there on the right is the forecast for 2016 which is they predict it's not going to get better. they call this an unusual gloomy

picture of emerging market capital flows. the countries are brazil, south africa and turkey but a big part of the outflow story for 2015 is china. $676 billion in capital outflows. in 2015. this past year, 676 billion in capital outflows which was a majority of the total emerging market flows. >> it's such a crucial factor for global growth as well. we obviously talked about how interest rates going up is going to be bad for the markets where it is going up in -- and the em story has been fuelled over the last six or seven years and that comes to an end as well. >> where money is poured in. it's helped the economies and smoothed over some of the problems the economies are dealing with. >> and hidden the problems artificially and everyone is suffering from particularly the u.s. raising rates but like wise if the u.k. starts to at some point as well it hurts everyone. not just the u.s. markets. >> it's a third of global growth

right now. if you wonder why the sell off we're seeing day after day. the relentless sell off. the common thread here is slowing global growth. the imf confirmed it yesterday. you see it in the price of oil and u.s. stock market and global stock market and these flows where money is coming out at stocks, bonds, mutual funds, you name it shows that there's fears and these economies are change fast. >> i mentioned the yen hitting i was aun year high. here's one of the reasons for that. we're below 2% on the u.s. ten year and of course that slight issue why we haven't seen u.s. dollar strength as a safe haven is explained by the fact that we've seen bond buying pushing yields lower compressing the spread between the u.s. and other developed market bond yields. highly correlated with the spread between u.s. and german bonds so as we have fallen below 2% and that's why we're seeing rallying in the euro and the yen.

euro up .2% today and the yen, look at that move, almost 1%. >> risk aversion. also whenever you have fears about global liquidity and the big stock moves happening. the money rushes into the safe haven. the yen, cold and treasuries. we saw it recently but it didn't hold. we'll see if it holds this time. >> exactly and that risk aversion story for bond market now highlighting that that's winning over from the rate hike expectation story in terms of which way traders are looking. >> inflation data and housing data are front and center today. consumer prices were likely unchanged last month although core inflation probably rose about 0.2%. also 8:30 december housing starts. ground breaking on new construction is expected to have risen at awe much slower pace last month than in november. building permits likely fell more than 6%. one big earnings report today

goldman sachs before the opening bell. now morgan stanley ending slightly up. bank of america down. what will the earnings story do? >> we're in earnings season. >> that's exactly right. >> it's a macro driven market but there's corporate news headlines to tell you about. netflix topping estimates last night. outperforming internationally with global expansion boosting subscriber growth. shares up almost 10% in the after hours yesterday on the news. they're up 4% in the premarket. it was the subs internationally that really came in better than estimating. >> joining us on the cnbc newsline to discuss, the head of telecommunications investment research at cm research. good morning to you. great to have you with us. i know you're bearish on netflix in the long-term. we'll get to those reasons in just a second but first of all the earnings yesterday we're seeing a 4 or 5% move in after

hours trade. is that a justified move? do you think the boost in overseas subscriptions warrants a move in the share price? >> we have to congratulate netflix management for getting the numbers. they're fantastic numbers. first move advantage for one of the biggest themes in 2016. they have 75 million streaming customers and that's up 17 million in the last year. so 2015 has been a great year. what worries me is that 2016 may see a whole bunch of problems. >> but has that been priced in the moves we've seen in the first couple of weeks this year? clearly 2015 was strong and we had a nice correction. >> we had a small direction but netflix is a very expensive stock by any measure and we have a sell rating for going into 2016 because we see quite a few fundamental problem with their business model.

>> they come in with subscriber growth. they have a long path toward international expansion and haven't gone into china yet. what are you worried about? >> four things really that i see unfolding in 2016, the first is more competition from am, google, alibaba and so on. these companies have a lot of cash. netflix just has 2 billion of cash and 2 billion of debt problem two is higher content prices. netflix large's cost. and net neutrality. netflix is one of america's heaviest bandwidth users especially at peak times and the fcc in america flip flopped on whether it believes in it or whether it doesn't.

often by political pushing. but next year they may change their mind once again and they'll see cost go up as it pays for bandwidth and there's technology risk. so at the moment netflix is predominantly an app on a smart tv but the smart tv we have in our houses aren't really smart. netflix is probably the smartest thing on it but the next generation of tvs which we will see beginning to flow through in 2016. we call this a pure internet tv and that is a computer which uses the internet to transmit all tv viewing including live programming. it will be competing with an entire tv operating system and that's likely to happen sometime this year and that will change

the competitive advantage considerably. >> great stuff. thank you for joining us. the stocks to watch today, advanced microdevices warning it's current forecast will miss wall street estimates. it blames the china slow down and weaker demand for its graphic chips used in games consoles off 6% in premarket trade. it's official, microchip technology signing a deal beating dialogue semi in a fight for the company it's flat on the news. >> royal dutch shell it's down 6% at the moment in london. bhp warning it sees no recovery in iron ore or coal prices but sees copper and oil prices bouncing back in the medium term and also suffering sharply in london trade. >> the miners, the energy

producers. more to watch for you today here, ibm. sales falling more than 8% in the fourth quarter. the 15th straight quarterly decline. net profit falling almost 19% although adjusted earnings did manage to beat analyst estimates. the dollar ip spending weighing on results. the cfo was on closing bell yesterday and said $7 billion is how much the dollar cost ibm last year and expects that continue this year as they continue to transform the business. when we come back here on worldwide exchange the new numbers this morning showing $735 billion has been pulled from emerging markets in the last year. the man behind that report. the institution of international finance ceo tim adams joins us next. >> in case you didn't know it's earnings season. i asked you on twitter if earnings matter in a market like this. be sure to vote and we'll get the results throughout the show and discuss that further. as we head to break check out futures this morning pointing sharply lower. stay tuned.

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welcome back to worldwide exchange if you're just waking up this morning hold on to your hats. there's no green in equity markets globally to talk of this morning. asia a point of note. the nikkei plunging 3.7%. entering into bear market territory. now down 21.3% from its 17 year high that it touched back in

june and joining the china markets in bear market territory, they're down sharply too as well and it's really oil prices once again leading stocks lower. europe as well down to the tune of 3%. that means u.s. equity futures pointing sharply lower as well. yesterday a little bit of reprieve. slight gains eradicated and we're called lower to the tune of 2 to 3%. the dow by 332 points. >> can't trust rallies lately. now to today's trade of the day. oil prices continue to tumble. wti in this country is below $28. 27.60 barrel. brent 28.05. if oil is down like this sit time to sell stocks. as we are seeing today. here's the official data. so back in 2014 the market actually traded positive. 57% of the time when oil fell 1% but over the past year that's all changed. the impact of crude skyrocketing

with the s&p 500 up only 34% of the time when oil drops 1% during the day. the up shop from our firm is that oil and stocks are very closely linked right now as we can see with the more than 300 point sell off in equity futures. for more go to cnbc.com and check out cnbc pro. new numbers showing in the last year $735 billion was pulled from emerging markets. a huge increase from the year before. joining us now from the world economic forum. the man behind the report, tim adams. president and ceo of finance. thank you for joining us. welcome. these are very -- >> good morning. >> good morning. >> tim these are very ugly sobering numbers that show just how much money is being yanked out of emerging markets. give us some color behind the numbers as to what you guys found. >> yeah, sarah, i hate to add to the gloom here in day voss and i'll look for ways to try to

brighten the picture over the next few days but certainly the numbers are troubling this morning a dramatic increase and a trillion dollar swing compared to 2013. massive movements out of the emerging markets. >> a huge move accounted for by china. put that size of the move into perspective for us relative to the size of their reserves, can they stem this flow in the short-term artificially? >> it's about 676 billion last year. about 50 billion a month. dramatic not only reduction in flows from outside china into china but also flows out of china. we have seen a lot of diverse fireworks kags from chinese investors. is it sustainable? for awhile but not forever. they are burning through reserves at a very fast pace. >> can you describe, tim, the economic impact of numbers like this? how destabilizing is it for

emerging market economies to have so much money flowing out of their economies? >> well, sarah, it's very tough. for those countries like turkey or south africa or brazil they're so reliant on imported capital it puts them in a precarious position. what's required is good policy and good politics and that's in short supply around the world. >> and tim, what does it mean for global growth overall? clearly emerging markets are a smaller part of the pie but china 16% and global gdp, do these outflows, will it also really detablize economies like the u.s. economy? >> you know, emerging markets have been a driver of growth over the last 5 to 10 years. certainly lead by china. the emerging markets and non-developed countries have become really the bright story over the last decade. so it does, it does put a dimmer of outlook for the global economy. we're forecasting flat global growth for 2016 and it could be

some down side risk to that. >> so you're uniquely plugged into the world of banking. you talked to all the ceos globally. what's the feeling of gloom out there in davos and what, i guess, how can you relate it to previous periods? a lot of people are drawing comparisons to august of last year. some are looking to 2011 during the european debt crisis and some even mentioned 2008 during the financial crisis. which one rings true for you? and there's the uncertainty there and uncertainty around growth. the growth story has been for a long time china and a recovery in the u.s. a little bit of recovery in europe but all that is in question now it's the uncertainties causing such angst among the ceo community but they

have to get up and find ways to make money and new businesses so i suspect they'll find a way to power through this. >> cut costs also which is what we're seeing from the big banks. thanks for joining us. thanks for sharing that news for us on capital outflows first on worldwide exchange. that's tim adams. former treasury secretary official and the ceo of the institute of international finance. >> still to come, the biggest losers in this morning's global sell off but first as we head to break check out the price of oil now falling sharply. wti below 28. stay with us here on worldwide exchange.

>> triple digits on the dow. at one point down 400. now down 300. that's still a 2% lower. s&p futures down as well. 33. nasdaq that already closed yesterday in october 2014 low down 85. the s&p 500 down 8% so far for the year. before today it looks like we're in for another wave of selling. one of the main culprits is oil. wti. u.s. oil trading below $28 barrel. brent, the international benchmark just above that level 28.19 after yesterday wilfred energy companies were the biggest losers in the session after wti continues to find sellers in a bear market.

>> absolutely right. creating bearishness globally and when we come back from a short break, european stocks dropping sharply right now. we have a live report from london on the big movers. worldwide exchange is back in a couple of minutes. or across the globe in under an hour. whole communities are living on mars and solar satellites provide earth with unlimited clean power. in less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. and if you thought that was amazing, you just wait. ♪ karl, don't you have fryeah, so? ng over? it stinks in here. you've got to wash this whole room are you kidding? wash it? let's wash it with febreze. for all the things you can't wash, use... ...febreze fabric refresher whoa hey mrs. webber inhales hey, it smells nice in here

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year. the new numbers this morning and what they tell us. >> plus the tale of two tech names. ibm is under pressure. wednesday january 20th, 2016 and you're watching worldwide exchange on cnbc. welcome back. here we go again. among the stories front and center. stocks down sharply in asia overnight. japan's nikkei entering a bear market down more than 21% from the last 52 week high set back in june. equity futures are plunging now off the lows of the session we saw earlier. dow futures down 330 points. s&p futures down 34. nasdaq down 77. oil price is a big reason why. wti trading below $28 barrel. 27.69. brent just above that $28 mark.

the iea out yesterday talking about drowning in oversupply. a lot of people citing that as continued pressure on the price of oil. that gas actually interestingly higher after yesterday. we managed to get a mini rebound if you could call it that with the s&p closing up 0.1%. it was up about 1% during the high of the day. you cannot trust these rallies in this market. the inclination is to sell. whether it's oil and china and concerns about global growth. >> right. i think we're pointing to oil as a big reason today. no doubt that's a factor but a brief reprieve and everyone thinks this is my chance to get cash out again. that's leading to more selling today. risk off across the board. buying of the u.s. treasury market. the yield on the 10 year note below 2%. 1.977 as you can see the trend toward the end of that chart has been one of falling yields or bond buying. the dollar, let's have a look at

that, hasn't responded as strongly as the yield or bond buying might suggest and that's of course because of the yield compression. a big move against the yen. the euro up against the dollar a smaller amount but 0.3% and a little bit of gold movement as well if we have a quick look at the price of gold which hasn't responded super strongly this year but up again today. i want to highlight the scale of these moves today. 4% moves in the nikkei and in hong kong. those two markets are not the shanghai and shenzen casinos. they're developed equity markets and a 4% move to the down side is resounding. >> we were already down 8% on the s&p 500 so far this year. the question today is where is the bottom. we keep wondering whether we've seen enough capitulation. it can put in a bottom and bring

buyers back in. i keep thinking back to the world's largest asset manager saying another 10% to go. and you wonder with these moves, with futures down 300 when are we going to see that. netflix, some of the bigger banks are not turning the tied. we want to show you what's happening in europe. a lot of big users over there particularly in the commodity producers. let's check in with nancy. good morning. >> good morning, sarah. that's right. what a difference a day makes because about this time yesterday we were getting quite a significance bounce here in europe. but now that is proving to be a dead cap bounce. a sea of red across europe. about five stocks now in positive territory and if we can look at the overall stocks europe 600 off about 3%. let's see how this is playing out into the key markets one by one here. the xetra dax off by 3%. the ftse 100 a similar story and that continues to be the trend across the italian market where

we continue to see a lot of weakness in the lenders in italy especially amid concerns still on the balance sheets there but let's get into the sectors one by one. you have been talking about the oil prices all morning and equities can't seem to fight the volatility there. energy and gas still off about 3.5% but basic resources, the real loser here, declining about 4%. that explains the dax off and we have to keep the moves in perspective but because despite the bounce we still have the dax off about 10% for the year so far so it continues to be an ugly period kicking off january but that 4% move in basic resources followed by insurance and some continued weakness in the banks as i just mentioned but overall energy and basic resources together now hitting their lowest level in 12 years so not a pretty picture here guys. i know it's setting up to be another down day for you as well. back to you. >> thank you for that. other stocks to watch. ibm sells fell more than 8%.

it's 15 straight quarterly decline as the strong dollar weighed on results. shares tumbling on 2016 earnings. on closing bell ibm cfo expects volatile currencies to lower pretax profit by $1.3 billion. >> for us for the full year, currency last year was about a $7 billion impact to our revenue. now our focus in currency always to make sure that we maintain our competitiveness in those countries which we actually are. but there will be a translation impact on that strong dollar again. 7 billion for us last year and we see that head wind continuing with the dollar still stronger than it was at this time. we'll see what happens with the dollar. it has been a head wind to profit for us. >> advanced microdevices is issuing a warning. it's current revenue forecast will not meet wall street expectations. they're blaming the china slow down and gaming consoles off 6% in premarket trade. >> on the flip side, netflix provided a lot of drama for

investors this year but although the streaming service is focussing more on international markets the u.s. subscriber growth may be becoming a fragile house of cards. >> netflix's 4th quarter earnings topping forecasts thanks to a boost from international markets. the company reporting adjusted earnings of 7 cents a share versus 2 cents. other revenues slightly missed for the streaming service, international is the new black as they focus on global growth. adding 5.6 total new subscribers in the quarter with more than 4 million from outside of the u.s. and earlier this month the company expanded service to more than 190 countries. however analysts say that could be distracting from slowing u.s. subscriber growth which fell short of street estimates and the company's own forecast. >> this international growth is where it's at and they're just killing it already and by our estimates there's over 250 million homes they can penetrate in the new markets that they're

addressing and they have 10% penetration now. even if they double that you're talking about millions of new preshrivers. >> netflix will add 6.1 million more new subscribers and plans to reach 200 countries by 2017 and shares up more than 4% in after hours. >> interesting stats hidden in the numbers as well. everyone is binge watching on netflix now. is that right? >> that's right. me included. the average individual watches 568 hours in 2015 and that's about an hour and 33 minutes a day which is completely understandable when you have house of cards, scandal, am i right? >> absolutely right. bring on the new season. >> i'm ready for it. >> orange is the new black is mine. you have to watch full house too. we established yesterday. you've never seen it. top trending stories to share with you today. viacom ceo does not have to testify in the legal battle over

redstone's mental health. attorney for redstone's former girlfriend issued a subpoena asking that he make himself available for a deposition but the new york state supreme court said they need proof as to why his testimony is necessary. viacom had a boost yesterday in yesterday's market because of a letter sent by eric jackson that doesn't have a huge position in the stock but did outline several points of how they could change and unlock value including redstone stepping down. >> one of the few up in trade today. now a tennis story for you yesterday and another one today. venus williams has been fined $5,000 for failing to show up to a post match press conference. this is her second violation in a year. she and her sister were bog fined in 2010 for missing a press conference in wimbledon. this is only the 8th time since 200 a female has been fined.

>> i didn't even know you could get fined for that. mcdonald's will start selling chocolate covered french fries in japan. the fries will be available january 26th across the country. reactions on social media were mixed. some saying they're ready to move to japan for the menu edition. i usually like japanese test market with flavors on beverages and food but this one i'm not into. chocolate covered fries. i need to move to japan, mcdonald's there has chocolate covered fries. i don't like the two. >> sweet and savory. it's complex. the stock has been doing quite well. >> it has been since a brit took over at the helm. >> that must be it. >> that must be it. every u.s. company should do the same and your stock will respond. actor jamie foxx helped pull a driver from a burning truck in california. he heard the crash and rushed to

pull the driver out seconds before the car was fully engulfed in flames. >> good samaritan. >> more on today's major global sell off. we're all over this for you. oil sliding, wti below $28 barrel with u.s. futures pointing to a sharply lower start. we have a must read. martin wolfe on why he says china's great economic shift needs to begin. china very much a part of this story. check out the futures. dow futures headed south again. down 341. s&p down 38. nasdaq down 86. you're watching worldwide exchange on cnbc. first in business worldwide. olay regenerist

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welcome back to worldwide exchange. let's have a look at markets. we have been focused on the equity story today seeing red across the screen and we have buying of the u.s. bond market compressing yields down and we are below 2% on the ten year. >> that is significant. that 2% level is important. that's a lot of gloom and doom on the screen. in terms of currencies, action there as well. selling the dollar, buying the japanese yen. that's the one to focus on today. the yen is at a one year high. that means there's a flight to safety going into the safe haven yen and some of the trades that have been so key to the bull market over the last few years are unwinding rapidly.

interestingly the euro has proven to be the safe haven lately. strong euro, weak u.s. dollar. the stock market likes a strong dollar. so this trade is reversing as well and has been very interesting to watch especially given what we have seen in terms of weakness in oil. >> the other factor will be the ecb meeting tomorrow. we're not expecting action but if he is not dovish enough with his rhetoric that could be a bad signal for markets. because we're not going to have action i think the risk is he und underwe underwhelms and there's the spread between the german bond and u.s. bond which is always highly correlated with the euro. we've had this action from the ecb. >> losing the fight against inflation. look at what's happening with oil. the ecb has a single mandate to keep it in target. >> i don't think it. >> he was so disappointed. he disappointed so many on last meeting in december.

>> he did although i still think he's the best central banker in the world but we won't go into that debate. >> a lot of these concerns is underpinning this global market sell off. we're in earnings season in case you forgot. 54% of you said yes. earnings matter. 46% of you say no earnings do not matter. what we're getting at here is there are some good stories in the earnings picture. netflix. some of the big banks beat expectations, morning stanley, bank of america, jp morgan and the banks are among the hardest hit on these concerns about oil, about china, about volatility, about debt, you name it. >> i think it's a very select answer is yes. netflix highlighting that but as you said across the screen today we have red and clearly earnings in general, the sentiment of earnings in general is not doing enough to stem the tide of this international u.s. story. >> and data which has been better. >> let's get to today's must read stories catching our

attention. martin wolf writing for the financial times, china's great economic shift needs to begin. this is a great article on the long-term situation in china. not just the latest moves in the stock market and currency as well. loads of great views and data and he writes the authorities face a dilema and his conclusion is they're focussing on the short-term rather than the long-term and martin wolf will be joining us later in the week on worldwide exchange. i'll bring it back to the opening sentence. he says chinese policy makers have a stellar reputation but the same is true of japan three decades ago. >> it's a learning process and painful. we tried to pick a lot of reads today that have to do with today's market sell off and the global environment. i chose one out of the telegraph

in the u.k. it's titled world faces waves of epic debt default fears. central bank veteran. that's an interview that a journalist did and former chief economist of bis. which is the central banks bank saying that the current situation and listen to this, he says et cete it's worse than 2007. they reached such levels in every part of the world that they're a potent cause for mischief. reminding us that it's not just about global growth concerns. it's about debt build up concerns. a lot in china. a lot in emerging markets as the fed raise it's rates and continue to show they cannot do everything. those debts will come to a head and that will be concern. he talked about credit crisis and a lot of scary fears that you don't hear too many people

talking about and certainly when william white talks about it you pay attention. >> absolutely right. fears that central banks are no longer the market factors. a big factor this year. coming up, asset management chief and investment strategist bill stone joins us with his take on the global sell off and swroe, becky and andrew will be live next hour with an awesome line-up of guests. first as we head to break here's part of andrew's conversation early this morning with facebook ceo cheryl sandberg and microsoft ceo. we'll take you to break. >> i think one thing overlooked is technology doesn't create technology jobs it powers jobs in the nontech sector. >> we have to get to a phase of this fourth industrial revolution which goes from just pure consumption of tech to producing tech. so in other words, you have to use world class technology to

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>> global economy may be slowing but is the selling justified? what say you? >> i'm more in the optimistic camp. it's really hard to see, i know you can say well, manufacturing has been slowing here in the united states. it's really hard to see any true signs of recession here in the u.s. even with some of the slowing from the global side. so i guess i'm one of those people when you did your poll that is optimistic that maybe when you get real data other than that wall of gloom, real data from earnings that maybe that will snap a little bit. >> it's though the so far but it's so early. we only have even this week 56 stocks reporting in the s&p but it adds up and does seem to be the fear of tun known at the

moment. >> clearly international events are influsing markets. so far the markets in bear market territory were ems like china and brazil or commodity linked like brazil again or canada. japan entering bear market territory this morning. that's a developed market and net importer of oil. does that point a picture that we're likely to see germany and the u.s. follow suit for example? >> it raises some of the pressure because i think what you see, to me anyway the signal is that flight to safety puts that upward pressure on the yen. >> it's like the whole world does. >> a lot of it is you just see this consistent signs of risk off. we kind of moved out. started in the commodity currencies et cetera and it's definitely headed out in to

develop. so you're right. >> it does feel like it's hard to bin point an exact reason for all the selling we have been seeing globally. all of these trades that highlighted the bull market. rally in stocks. rally in oil. rally in the dollar against the yen. all of these things that were the highlights of the bull market and was much faster on the way up. that's what is scary is what exactly that looks like. >> i think what you have to watch for is the bigger unwinds happen in things where you have gone too far and it's worth taking a step back and saying i can't argue that u.s. stocks are dirt cheap because they're not even after the sell off and they probably won't be even after today. what you can do is sit back and say in the past when you had a

dividend yield probably close to 2.4%. we have a yield rally on the s&p 500 and the 10 year below too you start to see relative value getting much more stronger there. but i also think at a certain point it's relative value. >> optimistic enough to dig the toe in? you trying to buy broader markets or particular areas you're saying are attractive now? >> particularly in the u.s. we still like the consumer discretion nary because it's a story. i know the market doesn't like low oil but it puts money in the pockets of consumers. we like the technology sectors and still think it's a place where as jobs continue to grow here we get to see some pressure on wages. people look to technology to fill that gap and help productive. >> look at what netflix reported yesterday. i wanted to pick up on your

dividend statement. it's a really important point. if you're a long-term investor looking for opportunities is the best advice now to just go to these dividend paying stocks and as cramer actually pointed out on the show action make sure they don't have a lot of exposure to china. at&t or verizon that pays you income. has some growth and perhaps might be a little more insulated. >> we love that idea and also consider, he hit it his way but i would say looking for dividend growth. you don't want to pick the highest dividend paying stocks but keep the dividend going because if you pick the highest dividend stocks a lot of times they're in danger of cuts but i do think that that style is, well, it's pretty much in vogue long-term all the time but it's particularly good in times like now. >> bill, we're going to have to leave it there. a pleasure to have you with us. bill stone joining us. that does it for worldwide exchange. squawk box coming up next live from davos. an amazing line-up from them. but for all of us from worldwide

exchange, despite the market turmoil, a very good morning to you. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪

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>> all right guys. here we go. >> good morning. markets in turmoil. that figures right? we're over here in davos but it's a global market. from asia to wall street nothing but red arrows. the nikkei in bear territories and the u.s. futures down more than 300 points. all of this comes as we're drowning in oil. not literally but $27. crude prices hitting another 12 year low. below $27 barrel and while all of this is happening corporate giants and world leaders are gathering in davos to discuss

hotspots and global worries and to fix all of our problems. seems appropriate for some reason. it's wednesday, january 20th, 2016 and squawk box begins right now. >> live from davos switzerland and the world economic forum, this is squawk box. >> good morning, everyone. and welcome to squawk box here on cnbc. i'm becky quick with joe kernen and andrew ross sorkin. we're in switzerland. our line-up includes steve schwarzman. at&t chief randall stevenson and bank of america ceo.