good morning. breaking overnight, a global market stunner. bank of japan adopts negative interest rates. >> happening now, amazon shares plunging after its holiday quarter results miss wall street's market. >> and a debate without the donald. gop presidential hopefuls square off in iowa. trump wasn't on stage, but the front runner's presence was still front and center. it's friday, january 29th, 2016. "worldwide exchange" begins right now. ♪ >> welcome to "worldwide exchange" here on cnbc. i'm sara ooeisen. >> and i'm wilfred frost.

>> the bank of japan taking the global markets by surprise. the boj cutting interest rates below zero for the first time in its history. >> japanese stocks swinging wildly in the wake of the announcement. the nikkei had been down before the news then spiked by as much as 3.5% before dropping to be down 1%, and by the close, up 2.8%. >> you would say it had the desired effect there. let's show you what happened in japanese bonds. the yield on that benchmark ten-year bond dropped to a record low. yie yielding, what -- >> not 0.1%. >> this is historic. we've seen this kind of policy from mario draghi in europe before. we've seen it in places like switzerland and denmark. now japan takes the plunge. check out the yen. the yen sinking, easing hurts a currency. boy, did we see this currency take a tumble. earlier it was down as much as

2%. that's a strong u.s. dollar. hurts corporations in america, selling abroad to japan. we're still getting a nearly 2% move here. >> as for the global market rip rl effects of the bank of japan decision, the rest of asia closing in positive territory. this very much seen as something that could boost the region's economies as opposed to sparking a currency war that would hurt some of the neighbors. even korea, which of course is very close rival. did end up, albeit slightly. japan, as you can see, up 2.8. hong kong, 2.5. shanghai also doing well, up 3%. what does this mean mofor u.s. markets? set to open higher. yesterday we saw about a half percent gains. also a quick look in europe. bear in mind yesterday europe was down sharply.

the dax was down 2.5%. we had poor earnings yesterday. also, europe closed pretty much at oil lows for the days, which influenced where it ended up and bounce back today what expected. >> so thank you, governor of the bank of japan. looks like markets are going to end what was a brutal january on a high note. keep in mind, the dow and s&p are heading for their worst month since 2010. this is the last trading day of january. the nasdaq having its worst january ever. >> let's bring up points to discuss on this decision. firstly, it was 5-4. wasn't a clear decision. that highlights moving forward, we might not get more easing if one person changes their mind. the decision next time could be totally different. also t shows again how kuroda loves to surprise the market. just eight days ago in the japanese parliament, he was saying negative interest rates are not a consideration and, wham, he goes with it. >> the shock and awe. >> he needs shock and awe

because the ten-year yield was at 0.2%. >> it highlights the communication policy part of monetary policy right now, which the federal reserve is struggling with. you saw that meeting on wednesday. the fed is moving the other way. they left march on the table. strong dollar could still be the trade here with japan and europe easing and hinting at more easing out of europe. and the u.s. hinting at the other way. >> and europe is kind of in between at the moment. dovishness but not quite committed to easing. will this push ecb to act? we're seeing the yen weaken. >> it's a global policymaker's challenge. let's dig into this. bank of japan had kuroda holding a news conference just after the big decision. he told reporters japan's economy is recovering are moderately. he says the underlying price trend is recovering steadily.

kuroda maintained there is more policy ammunition, saying in his words, quote, today's steps don't mean that we have reached the limits to our jgb, that's their bond, buying. we added interest rates as a new easing tool to our existing qqe framework. the message there, we're not out of bullets. don't take this as a sign of desperation. we've got more in the war chest. >> absolutely right. just to point out as well, that intraday volatility we saw of the nikkei, another factor. cpi in line with expectations. household spending, all important. >> they're still dealing with the threat of deflation. >> absolutely right. i suppose the question is, does this change the nature of the consumers? do they stop saving and start spending? that's the big question. global markets caught by surprise today. here's doomsday investor mark fauber on "squawk box" europe

earlier this morning. >> in my view, his ammunition is not working. it worked in the sense that the stock market went up in the last 12 to 18 months. but the yen has been going down. so if you really analyze it, say 18 months ago you were japanese, you had a certain net worth, and now your currency is down more than 30%. so are you richer or are you poorer? of course you're poorer. so these low interest rates in japan, in my view, especially now with the negative interest rates, are rather negative than positive for the economy and for the typical japanese household. >> and this is hsbc co-head of asian economics research, fred newman. >> i'm not sure you're going to see the carry through here in markets. bit of a bounce today, but it may not last necessarily over the last several weeks. >> the bank of japan

unexpectedly cutting its rates, as we've already said. let's get straight to the discussion. andrew people, "wall street journal," joins us from hong kong to discuss. andrew, thanks for joining us this morning. just break down exactly what they have done because this negative interest rate doesn't apply to all savings, does it? >> that's right. it's a little bit complicated. obviously banks in the financial system hold a certain amount of money at the central bank. in japan, that's an awful lot of money. something like 250 trillion yen in total. what they've done is introduced sort of a three-tier system and different interest rates will apply to the bulk of that 250 trillion yen. rates are still going to be positive but just about 0.1% or zero. it's the sort of excess over the basic amount that banks are holding, which we reckon is

around 30 trillion yen. still obviously a substantial amount of money. that's where the negative interest rate of minus 0.1% is going to apply. i think it's slightly different to some of the negative interest rates we've seen that other central banks have introduced. it's sort of begging the question, really, has the bank of japan done anything really meaningful here with their negative interest rates, or is it that they just want to send a strong signal, the sort of shock and awe you were talking about earlier. >> so what's the read on that? what are the analysts saying? clearly we're seeing the market reaction now. what's going to be the lasting effect, given they've tried so many other methods to ease? >> well, i think they tried to strike a balancing act, and analysts and economists we speak to have been a little bit confused about this, as were the markets initially. we saw the nikkei rally

initially after these headlines came out. then it sort of slumped as people realized it wasn't, you know, quite the all-encompassing negative interest rate they had thought. then of course later on in the day, we've rallied again. i think the take on it really is that as kuroda says, they can still do more here. so this is sending an early signal. yes, actually, we will -- we are prepared to go negative with our interest rates, and there's more space to do so if we absolutely need to. and i think that's the read that most people are taking out of this. >> andrew, all of asia rallying today on this news. is this a benefit for the region, or is it just the start or a restarting of the currency war that can hurt various exporters? >> i think that's the danger now. obviously this year already we've seen the yuan, the chinese currency, depreciating a little further after the shock devaluation they did in china

last year. now you see the japanese move. there's already pressure on emerging market currencies, already capital flight we're seeing from emerging markets. so although stock markets may have rallied in the short term today, this does look like a sort of worrying trend and a dangerous trend for some of those markets. >> some are worried that china might have to take another step to devalue. we know how worrisome that is to global markets. andrew, thank you for jumpingn to the camera from hong kong. >> now to corporate news. amazon reporting its best ever quarter c keerly earnings thurst even its best just isn't enough. the stock is getting slammed. landon dowdy joins us with more on that. >> good morning. amazon reporting record earnings thursday, but they fell short of expectations as an increase in customer orders meant sharply higher costs. the online retailer posting fourth quarter revenue of $35.7

billion, a bit lighter than forecast, but profit came in at $1 a share, which missed by 58 cents. amazon's fulfillment costs rising sharply, especially as third-party selling grows so fast. the company spent more than $4.5 billion on shipping orders in q-4, up nearly 33% year over year. the stock tumbling as much as 15% in after-hours trading on the miss,. analysts saying a good result and good outlook just isn't enough for a company trading at 100 times earnings, especially in this market environment. however, some are still optimistic. >> the guidance really wasn't that bad. the consensus is comfortably within the middle of the forward guidance range. on the operating income line, consensus at the high end of the range, but typically other than this quarter, amazon has beaten that range in the past. for us, you know, the way that shares have reacted today, i would use as a buying opportunity. >> amazon is still optimistic as well as it seeks to ship goods

faster. >> landon, 11% here. how much does that hurt jeff bezos? >> he lost more than $6 billion in after-hours trading. he also lost his rank as the fourth richest person in the world. he's now number five. but guys, don't feel bad for him. his net worth has increased dramatically over the past year, up more than 40% since "forbes" put out its list in 2015. >> the stock was up 117%. >> but only number five? tough day. >> he should control his costs. >> he should indeed. i have to have say, beginning of the week, we said, when will earnings come back and drive markets? that's certainly happened. huge moves for apple, facebook, amazon joining the party. we'll come to microsoft. that's up 6% after hours. clearly responding to their individual earnings, not just oil prices or china. >> no, it's true. they're being punished or rewarded heavily. facebook having its second best day ever yesterday. under armour having its fourth best day on a blowout

performance. earnings are certainly front and center. with that in mind, we have other big corporate news to tell you ant. xerox may be bowing to pressure from activist investor carl icahn. the company will be splitting into two separate businesses, hardware and services. icahn will be given three seats on the board of the services company. back in november, icahn disclosed a large stake in xerox and said he would seek talks with management. icahn spoke saying, we think this is a major move and will greatly enhance shareholder value. xerox is expected to announce the move officially when it announces earnings. "squawk box" has an interview with the chairman, ursula burns. another old-school technology company looking to split. >> bowing to activist investor pressure. one interview you don't want to miss on "squawk box." other stocks to watch today,

microsoft beating street estimates. cost cutting and growing demand for its cloud products. it's moving higher to the tune of 3.7%. it was a 6% move at its peak overnight. visa did not cut its full-year forecast, as many were expecting. still, revenue came in below consensus. highs sharer after hours. a weak report from electronic arts. shares tumbling after hours, quite significantly. 8% move down. >> more earnings to tell you about. we're going to continue the conversation because we've got more today. we've got a new contract for bo boeing. when we come back, european stocks jumping on the overnight interest rate shocker from the bank of japan. a live report from london straight ahead. u.s. futures, by the way, celebrating the boj move as well. >> and as we head to break, we want to hear from you.

our twitter question this morning, it's a nerdy one. which central banker is doing the best job? is it kuroda, draghi, or yellen? stay tuned. we'll debate and announce your views as well. you're watching "worldwide exchange" on cnbc. the world 21, you can fly across town in 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. ♪ you gein your car. odors you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy.

a very good morning to you. welcome become to "worldwide exchange." it's the final trading day of the month. the bank of japan has delivered

some groeen to our screens. cutting interest rates into negative territory. the nikkei jumping 2.8%, albeit very volatile intraday, down at one point as well, but finishing up. that's unspired grains ed gainse rest of asia. what does this mean for u.s. equity futures? it means green for them too. we're called to open higher to the taun of 0.75% for the nasdaq. what does all this mean for european action? let's get to nancy hulgrave for an update. >> wilfred, central banks to the rescue once again, also putting green on the screen here in europe. let's look at the stocks here. we're up by a solid 1%. we did shoot up sharply higher after the announcement from the bank of japan. the gains continuing here, buying across the board. we can look at the markets one by one. it's a similar picture.

the ftse 100 up about 1%. but remember, these gains will be good news for a month that has been terrible for investors so far. let's take a look at again how the markets are trading here. the kickoff to the year, the dax so far off 10%. the french cac 40 off 6%. the ftse mib off 14%. despite the gains we're seeing on the session, there's no doubt that investors are keen to see if they hold, whether or not wall street will keep these gains going in the last trading day of the year. so far it has not been a pretty picture for investors here in europe. >> nancy, thank you very much for that. sara, interest to be see the ftse 100, the commodity heavy, energy heavy index in europe up higher than the others. but of course it suffered more in 2015. >> one thing we're looking forward to today on wall street is the fourth quarter gdp. that brings us to today's trade

of the day. it's on that gdp report, which could show that the economy barely grew in the last three months of last year. what should you be buying if the economy does dip into negative territory? our data team crunched the numbers. here's what they found. turns out during times of economic weakness, names like home depot, united health grum, walmart, and pfizer were outperformers. for more on that, go to cnbc.com and check out cnbc pro. there's a theme there. big-cap technology stocks that hold up. certainly home depot has bucked the trend. >> absolutely. walmart so far year to date as well performing much better than last year. other news, investors pulled $1.2 from u.s.-based stock funds in the past week as they shied away from risky financial assets for the fourth straight week. money is flowing into taxable bond funds, which took in 3.3 billion in new cash.

so safe haven trades happening there. >> i wonder what's going to happen next week. what we got this week was a little bit of a rebound in commodities like energy and a lot of central bank action and talk, which many people say could turn the tide here on what has been an ugly january for global stocks. >> yes, but at the same time, look at the rally we've seen in oil, particularly wednesday, thursday. we're up again a bit today. and moves like facebook yesterday. huge moves. and we only eked out half a percent. that's not an inspiring move. >> and volatility is back. 100-point moves on the dow every day in january nearly. coming up, highlights from last night's republican debate. the elephant not in the room. donald trump, of course. hear what they had to say about him. stay tuned. you're watching cnbc, first in business worldwide. your path to retirement may not always be clear. but at t. rowe price, we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence.

you gein your car. odors you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy.

welcome back to "worldwide exchange." if you are just waking up, let's get you up to speed on today's breaking market news. the bank of japan taking nearly everyone in the markets by surprise, cutting interest rates below zero for the first time in its history. negative territory. just look at the dollar-yen. dollar shoots higher, japanese yen weakens. it's the biggest move we've seen her in about a year. painful for american companies that sell abroad. helpful for japan and stocks around the world. u.s. equity futures building on top of yesterday's gains. looks like we'll rally into the open. dow futures now up 114.

s&p up nearly 10. nasdaq up nearly fave. central bankers back in the game. >> sara, thank you for that. final trading day of the month as well. hopefully ending with green. in political news this morning, the clock is ticking on the first real contest in the race for the white house. the iowa caucuses now just three days away. last night the gop hopefuls squared off on the debate stage with one well-known face missing. nbc's tracie potts joins us with the highlights. >> reporter: hi, wilfred. good morning, everyone. donald trump promised he would not be there, and he was not. he held a competing event. as we've been tracking social media this morning, it looks like he was very popular on twitter, talking about what was happening across town. look >> look at all the cameras. >> reporter: side by side, donald trump's veterans fundraiser. >> isn't that better than this debate going on? >> reporter: during the fox news debate where candidates mocked

his absence. >> i'm a maniac. and everyone on this stage is stupid, fat, and ugly. >> he's an entertaining guy. he's the greatest show on earth. >> he was a little teddy bear to me. >> i kind of miss him. i wish he was here. >> he's probably looking for me. where's trump? >> miss donald trump out there tonight? >> not at all. that was the best debate we've had of all the debates, easily. >> reporter: issues like immigration, the top facebook issue during the debate. >> you changed your position on immigration because you used to support a path to citizenship. >> so did you. >> reporter: with trump gone, ted cruz accused the moderators of targeting him. >> gosh, if you guys say -- ask one more mean question, i may have to leave the stage. >> don't worry, i'm not leaving the stage no matter what you ask me. >> reporter: the last debate before iowa makes its choice. so immigration the most popular issue out there last night.

donald trump at least on social media the most popular candidate out there last night. by the way, he says he raised $6 million for wounded warriors during that event that he held during the republican debate. >> tracie, thank you very much for that. sara, i have to say, either way, whatever the fallout is, he's a pr machine. >> oh, yeah. at the same time, he's doing his own sort of telethon style rally. the interesting thing will be the ratings. anecdotally, what i heard, a lot of people tuned in just to see what it would be like, whether they would talk about trump in the beginning and zoned out once they got to the heavy-duty policies. >> three days to iowa. still to come, this morning's top stories, including the bank of japan firing another policy easing bullet overnight. we'll talk negative interest rates next. we can't wait. we love this topic. plus, global market reaction, which has been positive. then later in the show, the world health organization warning the zika virusexplosive.

should you be worried? we'll break it all down for you with answers from medical experts. that's coming up on "worldwide exchange." opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. olay regenerist renews from within, plumping surface cells for a dramatic transformation without the need for fillers your concert tee might show your age... your skin never will. olay regenerist.

olay. ageless. (singing alougetting to know you. getting to know all about you... getting to like you. getting to hope you like me... is someone getting to know your credit? not without your say so. credit lock lets you lock and unlock your transunion credit report with the swipe of a finger. getting to know you. getting to know all about you... get one-touch credit lock, plus your score and report at transunion.com

get in the know. good morning. breaking overnight, a global market stunner. the bank of japan adopting negative rates. >> and amazon a big miss. >> and too good to be true? one of today's top trending stories. a perfume that claims to make you skinny. not a joke.

it's friday, january 29th, 2016. you're watching "worldwide exchange" on cnbc. ♪ >> great song choice from the director there. a very good friday morning. welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> and i'm sara eisen. >> our top story this morning, the bank of japan taking the global markets by surprise. cutting rates below zero for the first time in its history. >> and boy did the markets move on this. japanese stocks swinging wildly after the announcement. the nikkei had been down before the news, spiked as much as 3.5%, before dropping 1%, and surging into the closer, higher by 2.5%. >> the yield on the benchmark government bond dropping to a record low. the yield curve in japan negative, out to six years.

crazy, crazy stuff. 0.1%. >> so you get paid nothing to lend to the japanese government. check out the japanese yen. biggest reaction. a nearly 2% move weaker for the japanese yen. stronger u.s. dollar. biggest move we've seen in about a year. that pair does tend to track global stocks. that's why we're seeing a positive reaction. >> 121.35 was the low for the yen on the day. what does this mean for u.s. equity futures? it means green. we're looking at a move to the up side for the dow to the tune of around 110 points. we're just off those highs. the s&p called to open by nine points higher, the nasdaq by five points. also a quick look at european trade, which is also trading positively for this last trading day of the month. do bear in mind that europe was sharply down yesterday due to some poor earnings. the dax was down 2.5%.

this half percent rally for the dax just a little in perspective. >> we'll see if it holds. the last trading day of january. january has been a rough start for the year, the worst start ever in the first few trading days. the worst month for the dow and s&p since back in 2009. worst january for the nasdaq ever with a 10% decline. we'll see what happens later. we have the bank of japan. we also have a lot of u.s. economic data, which may trump earnings reports today. we'll get the first read on fourth quarter gdp 8:30 a.m. eastern time. it is expected to confirm the economy hit a soft patch. forecast now calling for gdp of 0.8%. not even 1% growth. also at 8:30, we'll get december trade deficit and fourth quarter employment cost index. 9:45, look for january chicago pmi. at 10:00 a.m., want final report on january consumer sentiment. people are watching sentiment closely to see if there's been any reaction to the big selloff. as for earnings, more numbers

today. chevron, mastercard, american airlines, philips 66, and xerox. big news there with reports it's going to be splitting into two. that's all before the opening bell. >> and two big tech firms on the move this morning in very different directions. shares of amazon plunging. the internet retail joint reporting a huge earnings shortfall of revenue that also missed expectations. down 11% in premarket trade. on the other side, microsoft reporting earnings and revenue that beat street estimates. cost-cutting and growing demand for its cloud products helped. it was up about 6% a few hours ago. still decent moves. we said it earlier in the show, earnings has been crucial this week. not just macro factors. we've seen massive moves based off earnings. >> facebook's second best day ever yesterday. closing up 16%. amazon down as much as 15% in the after hours yesterday. we'll sooe what it does. we have other earnings movers this morning.

amgen easily topping estimates on higher sales of its arthritis drug. shares are little changed in after market and premarket trading here. the u.s. navy awarding boeing a $2.5 billion modification to a contract. the firm will now be manufacturing and developing 16 aircraft for the navy, four for australia. shares off, though, in the after hours sessions. it's been a rough week for boeing. video game sales helping sony report a big jump in quarterly earnings. the tokyo based company kept its full-year profit outlook steady. shares off in the after hours session, though they're up in japan. more than 6%. thank you, governor of the bank of j.aapanjapan. with that weakness in the japanese yen, it helps all kinds of exporters. >> u.s. and world health officials are stepping up efforts to try and deter the spread of the zika virus. the w.h.o. says the mosquito-born illness is spreading explosively. meg terrell joins us with more.

some heightened fears. >> very true. so how worried do we need to be about the zika virus, which most people hadn't heard of until a month ago? there is active transmission right now in more than 20 countries across the americas. this is really concentrated in brazil, where they saw more than a million cases since last year. as for the united states, it has reached here for people traveling back into the country. you can see the states here where people have traveled back in. more than 11 states and washington, d.c. 31 cases have been reported in the united states. again, that is not local transmission. those are people who travelled to the affected areas and came back to the u.s. in terms of symptoms, it's generally a pretty mild disease. only one in five people become ill when they get the virus. things that they do see are fever, rash, joint pain, red eyes. symptoms generally only last a few days to a week. but where it's really concerning and why everybody is so worried about this are what you see in pregnant women. there has been an increase in

cases of a birth defect where you see smaller brains and heads in babies. they haven't proven that link. that's something researchers are really plumbing right now. there's also a rise in the increase of guillain-barre syndro syndrome. they haven't proven that either. but the rise is making everybody very concerned. as for treatments, we have nothing for zika right now. and we have basically only ways of preventing it. that's through the spread of the mosquito. that's how this thing spreads. the nih is developing two vaccines, although they're in the very, very early stages of development. the mosquito is one that also spreads dengue and other diseases like that. you can identify it, although you never want to get that close to one of these mosquitos,

because they have white rings around their appendages. >> a magnifying glass surely because they're tiny. but it can't be spread from person to person. >> mosquitos carry it. there are some cases where they're looking to see whether it can be sexually transmitted, but it's not something that can spread through the air from person to person, that they know of now. where we are now is the w.h.o., you know, trying to really differentiate from how they responded to ebola. trying to respond quickly here. they're holding a special meeting monday. the cdc is taking a different tact in the united states because we have good practices against mosquitos. they're not as alarmed in the u.s. >> but there have been cases here in new york. >> there have been cases of people who have it after traveling. >> a lot of people cancelling trips to the caribbean. >> and we'll be exploring this all day.

>> meg, thanks. now to today's top-trending stories, starting with apple. recalling iphone, ipad, and i-mac chargers sold outside of the u.s. due to electric shock. argentina, australia, brazil, new zealand, and south korea. i guess this is fairly typical. microsoft also had to recall some of its chargers as well. a small number of surface pro power chargers. obviously apple gets a lot of scrutiny any time you see -- and you actually don't see many recalls. >> but not a great week for apple after poor earnings. certainly share prices reacting. snapchat is now offering original political coverage in its discover tab. the social media app is bringing viewers on the campaign trail with a live reporter. before this, snapchat did have live news stories but thenever h a narrator. trying to bring coverage of the

election campaign to the youth through its evolving video coverage. >> trying to get people involved. snapchat has over 100 million users. the question is, will this get them engaged? snapchat, i don't get it. clearly it's come a long way from the sexting days. >> it's now kind of rife. everyone uses it. perhaps we need to start a wex page. >> microsoft co-founder paul allen is being blamed for destroying a coral reef. according to the island's environmental department and according to allen's foundation, they're working with them, complying. i guess they're going to have to pay for the damage. >> i don't know what's more surprising. 14,000 square foot of damage, which is terrible, or a 300-foot yacht. that's enormous. what on earth has he got on that? that's ridiculous. lots and lots of old pcs.

let's get to the final trending story today. james murdoch will take over as chairman of britain's subscription sky tv. quite a lot of reaction to this in the u.k. rupert murdoch brought back rebecca brooks, who was caught up in the scandal. she's ceo again. by bringing back james murdoch, people saying, look, the dust settled and he's bringing them straight back and it's just like it was before. a bit of reaction in the u.k. on that. >> a bit of a recovery. and here is the one of the day. a new perfume that promises to help you lose weight. it's called the prends moi perfume. it has apparently, quote, feel-good chemicals, which trigger a relaes ease of endorp and less emotional eating. it is sold out.

if you look this up and read the article -- >> sold out. have you just been trying to buy some? >> no, i was trying to look at the scientific explanation. it's that idea it makes you feel good. >> i think it's the most absurd thing i've heard all morning. even in light of the surprise interest rate cut from the bank of japan. this is even more surprising. breaking news on the central bank front, a different one. the russian central bank has left its interest rates unchanged at 11%. that just a few minutes ago. of course, very high interest rates. the falling currency would make them want to the hike rates. they've left it. the ruble suffering heavily in the fates of falling oil prices. >> ruble down 50% against the u.s. dollar. tim cook said we are facing extreme conditions. he said the ruble is down 50%. the brazilian rial down.

clearly it matters. >> interesting talk as well of the possibility of russia and opec getting into bed. i don't buy it. i don't quite believe they'll go that far. russia and saudi arabia in particular unlikely to form a truce. but even talk of it shows how much these economies are suffering because of the lower oil price and having to try new measures that in the past they wouldn't have. >> a lot of strategists and analysts agree with that take, that they're pretty skeptical we're going to see a production cut from the likes of saudi arabia any time soon. it has triggered a rally in crude oil over the last week. we've seen big moves to the upside and strong gains for a lot of these energy companies. though, on this last trading day of the month, crude oil still down about 10%. >> absolutely right. wti's 33.3 as we look at things now. still to come on "worldwide exchange," this morning's must reads, including why marco rubio isn't winning the gop race. one reason according to an op-ed in the "new york times" this morning. his baby face.

we'll explain that and other reasons after the break. stay tuned. you're watching "worldwide exchange" on cnbc.

this is the lie that ted's campaign is built on. rand touched upon it. he's the most conservative guy, and earn else is -- you know, everyone else is a rhino. the truth is, ted, throughout this campaign you've been willing to say or do anything in order to get votes. >> that was marco rubio talking last night. it brings us to our must-read

op-eds today. i picked one titled "why isn't marco rubio winning?" i find this fascinating. three, four months ago he seemed like he could have been the obama of the republican party to electrify the race. this has got a list of interesting readings why he isn't polling a up that well. it's all about immigration, it's jeb's fault, he's too conservative. lots of interesting reading points for why he might not be doing so well. this final one, he says, in this election, many republican voters seem to be looking for a richard nixon a hard man for hard times, you might say, which isn't really a slogan that fits the boyish looking first-term senator. i know it's an interesting race, but i can't believe the republican party wants a richard nixon. >> you missed the most important reason. >> which is? >> donald trump stealing the show. >> it's a good read. >> now to my pick. pepsi is getting into the restaurant business. "the new york times" reporting today that the company is building what it hopes will be a trendy space in new york's chelsea meat-packing super hip

neighborhood. but you won't find any pepsi logos. everything will center on the cola nut, which is the bitter fruit that contains caffeine and gives cola drinks their name. but the danger for a big mainstream brand like pepsi is it will look more like a dad at a high school party than a member of the cool kids club. ouch. it is interesting to see these big companies get into more creative approaches as they suffer. pepsi earnings will be out february 11th. this is obviously a small part of the business, but i thought it was an interesting tactic for a company i cover. >> we're approaching the top of the hour. that means joe, becky, and andrew are getting ready for "squawk box." andrew joins us from new york. getting ready for a big xerox interview. also, we have green on this final trading day of january. what are you watching? >> i'm watching xerox. nothing else i could be watching. i hope you'll be watching at 7:00 a.m. we have the ceo of xerox here to

talk about what is a mind-bending deal for me in many cases. the idea that they would split this company up is not something i think was necessarily expected. the role of carl icahn, what he did behind the scenes to get it to this position. the idea that they're undoing what was a rather large transaction back in 2010, which put them into these different businesses. we're going to talk to her, all about this, and try to et get lowdown, what it all means. >> looking forward to it, andrew. interview of the morning. exclusive with the ceo of xerox there. up next, just watching oil prices here turning negative. we'll see what it does to futures, which are rallying on the bank of japan announcing it is taking rates into negative territory. it is the last trading day of the month of january. stocks are on track for multiyear lows. we're going to talk to jeff kleintop, who says brace yourself for more volatility. but importantly, not a prolonged bear market. he'll be joining us next. wti crude oil, 33.19. just went negative. you're watching "worldwide exchange." friends coming over?

yeah, so? 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 and try pluggable febreze... ...to continuously eliminate odors for... ...up to 45 days of freshness pluggable febreze and fabric refresher... ...[inhale + exhale mnemonic]... ...two more ways to breathe happy

weinto 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. ♪

it is the last trading day of the month of january. the dow and the s&p are on pace for the worst january since 2009. the nasdaq on pace for its worst january ever. will the bear market continue? joining us to discuss is jeffrey kleintop, senior vice president and chief global investment strategist at charles schwab. do you think a rebound in cruel oil this week and action from the gbank of japan will turn th tide? >> stabilizing oil prices could help stabilize the market here. the link between oil prices and stocks is through the central banks because lower oil prices causing central banks like the bank of japan to cut interest rates hurts financials, or at least become more dovish. or not be as aggressive. maybe here in the u.s., that's why the financials are the worst performing sector this year and not energy. we've got to see that stabilize a little bit here to see stocks

begin to form a base and begin to rebound. i think that's the story of the year. a lot of volatility. that's what we're likely to see. >> interesting to see all of asia bouncing off the back of this move from japan. suggesting it's responding to the idea that it'll boost one of the major economies in the region as opposed to reigniting a currency war. is the same true for u.s. markets in the u.s. economy, or does this mean a stronger u.s. dollar is inevitable? we're going to see the u.s. economy suffer because of it? >> well, more the latter. look, we're likely to see a stronger u.s. dollar as a result of this, and that will be a bit of a drag. we are going to see a fairly soft gdp for the u.s. it's a soft spot. we've seen it in the fourth quarter in several recent years. it was unsustained. we saw economic growth bounce back a little bit. i think that'll be the case this time. don't look for markets to get a lot of strength from these moves by central banks. most of these are prompted by lower inflation and not flagging growth. the imf last week revised their

global gdp growth prospects but not for japan. they still expect japan's economic growth to double in 2016 from 2015. we're not seeing the economy slow there. instead, it's more the reversal inflation that's been the concern. >> one theme we've been talking about is that it pays to have good earnings this week. we saw that with reactions to facebook and under armour. i know you can't talk about individual stocks, but which sectors are you looking at? >> you're right. you know, less sectors and more countries. japan's actually seeing a decent earnings season. europe is actually looking a little better as well. we're seeing gains there, whereas in the u.s., we're still seeing drags, dragged down by the energy sector and materials. i note that in japan there is no energy sector to speak of. none of those drags to profits and all the positives, the tail winds to the energy space. looking for better earnings overseas. >> jeffrey, year to date, big corrections for u.s. equity

marks. are you advising people to be buying cyclical stocks or defensive stocks given the corrections we've had? >> great question. defensive stocks have been huge outperformers. in fact, they've outperformed by the widest margin we've seen in recent years. suggests to me a rebound may be in store for cyclicals. could be led by technologies. a sector that's held up much better than you might have thought over the course of the last month or two. that could be the place to be for the next few months. >> jeffrey, thanks so much for joining us early this morning. have a lovely weekend. >> instead of chart of the week, we're doing chart of the month on this last day of january. what did you pick? >> china. got to go with china. might be boring. i know we've talked about it so much, but it really has been the story of the month. even more so than oil for me. extraordinary solid declines throughout, but with big jumps each day. look at the kind of change in direction you've got. but the trend is clear. it's down 23%. >> plus a quarter of its value. that's crazy. >> and from its high last june, it's down almost 50%.

so a bear within a bear, i saw the phrase earlier this week, which i rather liked. >> although, importantly, this week we decoupled from china in terms of the u.s. mark. we started january, and it was as china would go, so goes the u.s. market. that became oil much more so than china through the end of the month. my pick is the nasdaq, which got beaten up the hardest in terms of all the major u.s. equity averages. nasdaq, as we have been mentioning, the worst january ever for the tech-heavy stocks. biotech had their worst month ever. they've been sold off very hard. they were seen as having high valuations. this whole correction has led to a pillaging of some of these health care stocks. >> but it was better than the other indices. let's get to the results of our twitter question of the day. which stacentral banker is doin the best job? 17% say kuroda. 40% say draghi. yellen beating draghi at 43%. >> i would say yellen has a tougher challenge.

she's the central banker of the world. she has to walk a thin line. >> we've got to leave it there. have a nice weekend. n't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.

it's gotten squarer. over the years. brighter. bigger. it's gotten thinner. even curvier. but what's next? for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv.

good morning. happening now, amazon shares plunging after holiday quarter results missed wall street's mark. gop candidates sparred in iowa last night without the donald, but his presence was still front as well as center. and we're going to ask two political veterans who won, whether trump won the debate by sitting it out or not. plus, we're going to tell you why olympian michael phelps showed up to a basketball game dressed for the swimming pool. it's friday, january 29th. "squawk box" begins right now.

good morning. welcome to "squawk box" here on cnbc. i'm becky quick along with joe kernen and andrew ross sorkin. breaking overnight, a global market shocker. bank of japan cutting rates below zero for the first time in its history. japanese stocks swinging wildly in the wake of the announcement. the nikkei had been down before the news. then it spiked by as much as 3.5%, before dropping slightly and ending the session up by about 2.8%. other asian marks posting green arrows across the board as well. check out the yen. you can see the shanghai composite was up, so was the shenzhen. you can see the yen also trading up. 120.70 is where that stands now. take a look at the european markets and how that's reflected around the globe. you'll see right now the dax is up by about 0.4%. the ftse in london up about 1%. here in the united states,