good morning. global market alert. a flash crash sending the british pound to a new 31-year low. a 6% drop in two minutes. florida authorities sounding alarms not heard in years as an extremely dangerous hurricane matthew approaches. and it's jobs friday. waiting on the september jobs report. likely to set the tone for today's trading session, a busy friday. october 7, 2016, "worldwide exchange" begins right now. ♪ good morning. welcome to "worldwide exchange" on cnbc.

i'm sara eisen alongside dom ch chu. an update on hurricane matthew as it makes landfall in florida. a quick check of futures, under pressure just a bit here. the jobs report at 8:30 a.m. eastern time for september. s&p futures down almost 2 points. nasdaq futures are down 6. we'll keep an eye on that as it unfolds over this morning. a huge story overnight. take a look at this chart. the british pond versus the u.s. dollar. it all started just after 7:00 p.m. last night in new york time, 7:00 a.m. in singapore and hong kong. look at the intraday move. the currency plunging. >> in minutes. >> in minutes, by 6% against the u.s. dollar. an extraordinary move like we have not seen before in this

currency pair before recovering most of its losses. concerns of the uk's exit over the european union, that short-term drop speculating that it could have been triggered by a fat finger, rogue trade. some traders are attributing the move made to comments late yesterday reported by the financial times from french president francois hollande taking a tough stance on brexit saying the uk will have to pay in order to make it clear that european countries cannot just do this brexit. clearly this is a very unushlt move. it comes on a week when the pound already was falling sharply. after the british prime minister theresa may delivered plans for a hard brexit. more on the move in the pound, what the heck happened here, why, and has it means for your investments throughout the show. >> you can see by that chart, we're talking about 1.27-ish for

a while, drifts lower, then the whole thing is reset. right now it's like we found a new range. at least for the last couple hours or so it's that 1.24. certainly something to watch here. >> waking up to 1.24, wilfred would be sitting here, it's another wow moment. >> i'm going to st. andrews to play golf. >> it was hard to get pricing data, and then down to 114. we'll talk about the why and what it means. >> a quick look at european equity side of things. the dax off by 0.01%. same for the cac in france. ftse 100 up by 0.69. whenever the pound moves lower, it helps give those multinationals in britain a bit of a tailwind for earnings, sales numbers. the ftse mib in italy up. and the spain ibex 35 down by

0.36%. in asia, we did see a bit of a mixed picture. the nikkei off by 0.23%. the hang seng off by 0.42%. and shanghai up by 0.23%. >> let's go to the broader markets and show you the price of oil which hit $50 a barrel this week. it's been strong and continues to build on that strength. wti over the 50 mark, 50.61. brent up about 0.3%. 52.65. as for the ten-year treasury note yield, yields have been lifting ahead of the jobs report on better economic data and better hopes for the economy, expectations for a fed rate hike. 1.75. we'll check that after jobs. the dollar has been stronger on the back of higher yields, which is perpetuated by this better u.s. economic data. the dollar is stronger now against the euro, 1.1126.

weaker against the japanese yen. it's been stronger all week, inching towards 104. the pound, the story of the day, 1.2429. it has come back from the 1.18 low but looking at more than 30-year lows for this currency. gold having the worst week in a long time, under pressure pretty much all time. >> still below 1300. markets are a huge part of the narrative, but this morning's other top story, of course, on the weather front. hurricane matthew early this morning the storm was downgraded to a category 3, still the national hurricane center is warning that the eye of the extremely dangerous storm is moving closer to the east coast of florida. a storm that's already left at least potentially 100 dead across the caribbean region. necn's chief meteorologist matt noyse joins us now to talk about

what's happening with hurricane matthew. >> thank you very much. here is the latest. you are right the storm has weakened a bit, but still a category 3, so a major hurricane. that's a big problem here. what we've seen developing arc couple didn't things we've been showing you. the latest imagery, the eye is making its way east-southeast of cape canaveral by 40 miles or so. as it makes its way up the florida coastline, the issues are north of where the center is. you have seen hurricane warnings transferred over to tropical storm warnings when you get south of jupiter inlet. when you get from cape canaveral northward, that's where problems begin. we're just get nook the eyewall now, which is the worst part on the western side of the storm. we can take you to the forecast map. this storm is still forecast to parallel the coastline, the east coast of florida, may start to come inland towards daytona beach. right now it looks like it should stay off shore. that's a lashing wind coming out

of the northeast. that's a storm surge issue as well. that's the next thing we'll show you. along the eastern coastline, when you get north of canaveral, four-foot storm surge, but that will get to six to nine feet making your way further up the coastline. and extreme storm surge from the georgia coast to the south korea coastline as well. that's one of the biggest problems, inundation of water. the wind, top gusts so far, 88 miles per hour at satellite beach that will go up over the day. >> great to have you on board. >> thank you. let's get more on the hurricane from the ground. morgan brennan is joining us from daytona beach with the latest. good morning. >> reporter: sarah good morning. things have dramatically picked up here, ramped up here since our last reports at the end of the business day yesterday. a lot of rain here. it's whipping sideways, some lightning. of course, as you can probably

hear, we have this wind. so wind right now, according to the weather channel here, is 40 to 50-mile-per-hour gusts. over the next couple of hours that will ramp up to 80, 85 miles per hour. storm surge will be a big issue as you heard in the previous report. storm surge will be a big issue, as much as 12 feet could come in here along the beach. the other thing, we've been hearing about tornado threats. so the national hurricane center has said that the threat of tornadoes is rapidly decreasing everywhere except volusia county, daytona beach is located in volusia county. first responders up and down the coast saying it's -- the conditions are too unsafe. they can't go out to actually help people right now. this particular area, daytona, is under mandatory curfew until 7:00 a.m. saturday morning. the national hurricane center and noaa, both websites before

midnight going down. they were down for several hours and have since been restored. here things are starting to ramp up, but it will be the next couple hours when things become more intense. >> morgan, thank you. back to the other top story, that is the british pound. sterling dropping sharply suddenly to a fresh 31-year lore in early asian trade this morning, last night in new york before regaining some ground. still under heavy selling pressure. joining us from london is the head of fx strategy at credit agricul. were you on the desk chen this flash crash happened? >> not really, but when i saw the headlines when i woke up, i thought, oh. it feels like a perfect storm for the pound. >> what exactly are you hearing happened? we heard a number of reasons, but with the foreign exchange market, the biggest and most

liquid in the world it's never easy to tell where trades are coming from and what's causing them. >> indeed. we've been following the stories all morning, flash crash, fat fingers, we also suspect that the fx option market or the option traders may have something to do with that. in particular the fact that some of the bearish bets on the pound were cheapened by adding down side barriers, that is a reverse knockout whereby a put option or a bet on the down side in the pound expires if we see a big move on the downside. so presumably those were triggered, and we got that -- that can explain the rapid, if you wish, rebound in the pound after the immediate selloff. that combined with, i would say, the evidence that there was also some one-touches, exotic options

that are betting on extreme levels in the currencies. so a lot contributed to the move lower. the second group contributed to the barriers and put options could explain the sharp rebound after the selloffment. >> it is dom here, barrier options aside and trigger those levels, now that we've seen these barrier options, stop losses, whatever else go and flush out what is the new range for british pound? it's 1.24 right now. what's the next leg? does it go down to parody which is near the lifetime low? >> well, that's not our call, but given the liquidity conditions in the market, especially at these levels, more acce accentuated moves cannot be excluded. despite the rebound we are still well below levels from yesterday. there's still demand, appetite to sell the pound. it does feel like a perfect

storm for the currency. turning to fundamentals, what has been the most worrying development of late is the fact that some uk assets are starting to underperform alongside the pound. until recently i had the comfort in that the pound was selling off but uk stocks were doing spectacularly well. uk bonds were bad. what we're seeing are some concerns reflecting higher gilt yields. if that's an early indication of a potential withdrawal of foreign assets out of the uk that could fuel concerns about balance of payment crisis, and indeed currency crisis. >> we don't want to call a currency crisis, but that's certainly the worry. thank you for the color from the trading floor, the explanation this morning. >> thank you. we are less than 3 1/2 hours away from the september jobs report, which will leakly command the bulk of the market's attention today beyond that

crazy move in the pound. here's the forecast. an increase of 165,000 jobs. that is the non-farm payrolls headline estimate. unemployment expected to hold steady at 4.9%. fed vice chair stan fisher speaking to the institute of finance yesterday, 10:30 a.m. eastern time. they are talking about the economy after the jobs report and talking about the global market picture and brexit as well. that's just the appetizer. coming up, continued coverage of that sharp drop in the british pound. and a number of fed officials saying they would be fine with raising interest rates by the end of this year if the u.s. economic data confirms it, including the jobs report. we'll bring you a full preview of what to expect and some market insight. timetable for the fed, joined by danielle dimartino booth next.

as we look at futures under a bit of pressure. the dow is pretty much flat for the week. we'rerowning in infor. where, in all of this, he stuff that matters? the stakes a so high, uur fute. how you solve this? you don't. you partr th a firm that advises gornments and the fortune 500, and, can deliver insight person to perso on what matters to you morgan stanley.

. welcome back to "worldwide exchange." if you're just waking up, an update on hurricane matthew. the national weather service issued a dire warning about the storm, landfall is expected in

florida in just the coming hours. 2 million people have been urged to evacuate. florida governor rick scott saying "this is serious. this storm will kill you." matthew has been downgraded to a category 3 storm overnight but packing dangerously high winds and rain. you can see from the map behind me, lots more to talk about with this storm. for now that's the update. >> we'll monitor that all day. back to the other top story, markets on the move. there's been no bigger move than overnight with the british pound. there's a look at the pound right now. just breaking below 1.24. earlier at 7:00 p.m. eastern time it crashed more than 6%. that was early morning trading in asia, a new three decade low. some seeing it go below 1.18 against the u.s. dollar. it has since stabilized. it comes hours after the imf world bank meetings in washington. i did ask imf managing director christine lagarde about the

potential weakness last week. >> we saw an immediate and abrupt reaction. markets went down, the pound went down, not recovered massively from that. we think there will be consequen consequences. there will be downside effect as a result of whatever will come. we still are not sure when the negotiations will begin, this famous article 50 has not been triggered it will open two years of negotiates. if that is not called uncertainty with a big u, i don't know what is. >> the pound's plunge has only gotten worse. we are trying to make sense of the move. we heard a series of options orders exacerbated by thin training. outside the bank of england is steve sedgwick. any official word on this move in the pound an what caused it? >> they'll have a look into this, but i have spoken to at least a dozen of the major banks today, no one has a firm line on

what exactly caused it. it could have been a barrier trade or someone searching for stops, it could have been a fat finger. the fact of the matter is all the catalysts there on multiple levels, we heard at the start of the week prime minister may telling the party conference they would be hard ball with negotiations and enact the article 50 for brexit at the start of 2017. added to that overnight, francois hollande, an embattled president if there ever was one, saying how tough he would be on the british and how there will to be risk, almost like a stick and warning to others out there. wloe whoever did this trade did it at thinnest moment of trading. sterling has been pummelled all week. it is the weakest currency in the world all week. many say it will go lower. hsbc downing to 110 at the tail end of next year.

interesting that the comment from david bloom of hsbc talking about the bond vigilantes have been beaten by qe but in the fx market they're alive and well. >> it's interesting to see the vigilantes in the fx market in a move like this. steve sedgwick, thank you very much for that report. we're just three hours away there that market moving event, the september jobs report. joining us now with expectations from dallas is danielle dimartino booth. danielle, let's start with jobs, but it's hard not to started with that move in the british pound and this idea that we continue to have confidence hits on our markets that are increasingly driven by machine orderers. >> they absolutely are. it's been a dramatic morning already between the pound and what's happening in florida with hurricane matthew. it will be all eyes front and center in three hours with the jobs report. we'll see if any data ever gets

to wake up the bond vigilantes. there's a lot of optimism going no this report. >> danielle, this is interesting right now because every jobs report is the most important jobs report since the last jobs report. is there any kind of data this time around that could sway what happens with an eventual possible rate hike, possibly sometime in 2016? >> i hope federal reserve policymakers are paying closer attention to the household survey than the payroll survey. we did see an inflection turning point in the small business survey come out. we've only seen that big of a plunge in job openings and small businesses five other times in the history of that index. there is the potential we're seeing a turn in the market. adp and the types of jobs created have eluded to a turning

inflection point here. >> based on your inside knowledge of the fed and these conversations, what you make of the communication we've gotten, how bad does the report have to be today to take december and 2016 off the table for a rate hike? >> it's been about the doves turning hawkish, most recently charlie evans. the fed lowered the bar so much in terms of what they consider a break even level on non-farm payrolls. >> danielle, is it fair to say at this point that the fed wants to get this thing done? >> i think. this is what my mother used to say, because i told you so. this is the because i told you so fed. they want to raise rates because they told us so. they don't have any bullets left in the chamber, it's as simple as that. they see a recession is coming in the next 12, 18 months, they don't know that unconventional

monetary policy is the way to combat that. >> any chance they could go november 1, 2, right before the election? >> we have the most dovish fed speakers on the wires being hawkish in addition to those that dissented -- >> is that a yes? >> it's a potential yes. if they want to prove they're not a political institution, november is the right way to go. days before the election. absolutely. >> that would be something. danielle, thank you. danielle dimartino booth president of money strong joining us bright and early from dallas. of course another one here, right after the jobs report numbers are released, don't miss steve liesman's interviews with cleveland president lorett loretta mester, that's at 8:30 a.m. eastern time. still to come, much more on the market action, plus an update on hurricane matthew as

it begins to march up the florida coastline. stay tuned, you're watching cnbc first in business worldwide.

. welcome back to "worldwide exchange." if you're just waking up, let's get you up to speed on the market action. a bit of selling pressure for u.s. equity future the. not much action ahead of the jobs report. dow futures down about 1 point.

same for s&p. selloff yesterday for the dow, s&p finished positive. the nasdaq down 3.6. as for the real action in the currency markets, the british pound has recovered from the overnight losses. that flash crash, fat finger, we don't know what caused it. the pound plunging 6% within minutes. it's recovered, but it is still weaker by almost 2% and hitting new lows that we have not seen in more than 30 years. we'll keep an eye on that. the british stock market is up by 1%. >> the markets are on the move and so is hurricane matthew. if you're just waking up, this is the update. the national weather service has issued that dire warning about the historic storm here. landfall expected in florida in the coming hours. 2 million people have been urged to evacuate the region. florida governor rick scott says this is serious. this storm will kill you.

he's trying to emphasize that. matthew has been downgraded to a category 3 storm overnight, but packing a lot of high wins, a lot of rain. we'll watch that continuously. coming up, on top of the day's biggest story the and we have ken rogoff joining us on set.

good morning. breaking overnight, a dramatic

move in the british pound, sliding to a fresh three decade low in a mysterious overnight flash crash. and florida authorities sounding alarms they have not heard in years as hurricane matthew approaches its shores. and it's jobs friday. likely to set the tone for the trading session. it's friday october 7, 2016. you're watching "worldwide exchange" on cnbc. good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen alongside dom chu in for wilfred frost. we have economics professor at harvard, ken rogoff, guest host for the rest of the show. couldn't ask for a better day to have you with a flash crash and a jobs report on the horizon. >> thank you. >> a lot to get to, including an update on hurricane matthew as it makes landfall in florida let's check futures at this hour. under a bit of pressure. not a lot of movement ahead of

jobs report, not like the selloff in europe except the ftse 100 in the uk. s&p futures down 1 point. dow futures down 1.5 points. and the nasdaq down about 4 points. basically stocks are flat. huge story of the morning. look at the british pound. just after 7:00 p.m. eastern time here in new york, 7:00 a.m. in hong kong, there's the plunge, 6% in just moments against the u.s. dollar. took about two minutes in total before recovering most losses. concerns over the uk's exit over the european union certainly driving the action. the short-lived drop led to speculation of a fat finger trade, a rogue algorithm made worse by thin liquidity to early asian trading, and then there

were others saying it was france's hollande taking a stuff stance on brexit. we'll have more on the move in the pound and whether investments in the uk are going to be safe with a lot of dire warnings coming owl of that theresa may speech. >> markets are in focus, our other top story is hurricane matthew grinding its way up the east coast of the united states. scott cohen joins us from savannah, georgia. it looks like from the maps, scott, it's going up the gut there. >> well, that's the concern, dominic. the fact that matthew stayed further off shore than some original forecasts had talked about, tracking to the east of what it was, that's potentially a very good development. not only for florida, but as it comes up the coast and makes the

turn, the next big thing in its past is savannah, georgia. it is one of the largest ports in north america, second largest port on the east coast. that port is shut down an will be until at least sichbd. for everybody else, there are mandatory evacuations announced yesterday in six coastal counties. >> i have not been one that has overreacted, but we do want to imply to everyone that it is serious and we stand ready to help but people have to help themselves first. >> people do seem to be paying heed to warnings and evacuation orders with a lot of traffic leading the savannah area and heading inland. even if the storm stays off shore and we don't get the worst of the storm surge, rain. there are forecasts for more

than a foot of rain in georgia as the storm makes its way up the coast. >> thank you very much, scott cohn. stay safe out there. >> we'll keep an eye an eye on the hurricane and bring you updates. let's check on european equities. early trading in europe, a mixed picture. dax is down, just barely. really strong, the ftse 100, that's the british stock market, made up largely of exporters. this morning some strength in italy and weakness in spain. in asia, let's quickly show you the picture. losses if japan. the nikkei down about 0.23%. oil has had a strong week. brent up almost 7%. wti firmly above the $50 mark. 50.63. brent above $52 a barrel.

let's get back to ken rogoff with his new book "the curse of cash." ang expert, i'd say, not just on the global economy but on flows and the foreign exchange market. can you put this move in the pound in historical context? how unusual it is to see the british fall 6% in two minutes. >> i don't think it's 6% in two minutes, but in general. it was like a 2 at one point and now will it reach one some day. the moves are big and what they're doing. i did not think we were going to get hard brexit. i thought they were back pedal out of this, keep everything the same, make it look like they did something. theresa may seems determined to make a clean break. >> you can explain what is hard brexit, what you mean by that

and why it's spooking investors. >> they have a trading agreement and an immigration agreement and the europeans see them as inseparable. they say if you want to keep the trade agreement, you have to work with the immigrants. i thought everything would stay the same, renegotiate. they're just going back to the drawing board here. they're saying we want to control immigration full stop. >>p compromising the trade relationship. >> their view is that in 30 years, this is better. the euro soefzone is not workin they want to do something about it. >> why is it manifesting itself in the sharp type of currency moves. it was 1.52 not long ago.

the economy may not be as strong. why is the currency reacting the way it is on news of a hard brexit versus a nonhard brexit. >> every-day moves are hard to explain. maybe some people are concerned about assets in the uk. i think the british are trying to assure it's all good. everything will be fine. but it's never been done before. people are nervous. >> at this point, with such a move and magnitude over a period of months and weeks, when do you go from yes, it's good for exporters to have a weak currency to, oh, this could be a currency crisis? how do you diagnose that? >> it's more like a country crisis as opposed to a currency crisis what will happen to the british investment and the british economy. >> what is? >> don't know. it's not obvious if you dial

ahead 30 years and where they want to be. i don't know. in the short run it can't be good to go through this after renegotiating trade agreements. president obama said back of the line for the u.s. i don't believe that. do you want to test it? >> back of the queue as he was in the uk. ken rogoff, good to have you here. we'll talk more about the book and the u.s. jobs picture ahead of the report. we have breaking news. >> just crossing lines now, if i have just a second, colombian president juan manuel santos has been awarded the 2016 nobel peace prize for his efforts trying to end the decade long fight with farc revels. for his resolute efforts to the bring the 50-year long civil war to an end. the future of the peace deal is

in question in colombia after a vote last week. but juan manuel santos awarded the 2016 nobel peace prize. >> i can tell you yesterday at the imf meetings, people were drawing parallels from that vote to the brexit vote. we'll talk about that. still to come, more on that mini flash crash in the british pound. we'll discuss what's behind that move. and an update on hurricane matthew. stay tuned.

good morning. welcome back to "worldwide exchange." we are here with ken rogoff, former chief economist at the imf. our top story is the british pound. sterling falling sharply against the dollar, as much as 6.3% in asian trade this morning. 118.19 was the level that was seen before recovering. still weaker by 2%. this is a huge move and we are trying to make sense of it for you. joining us from london, ken dukes. what are you hearing about the move and the confidence in this market? >> i think the cause of the move was it was a thin market with

somebody putting some prices in was it an algorithm or option trading? i think really at the end markets are thin at that time of day. we get more of these at times of stress, liquidity when people have orders to do things, whether produced by an algorithm or human that forces weird price moves. the spike is fine. it's the net result of another 2% down in sterling, which was falling enough. it's a much bigger fall by the pound now over that three-month period than we saw immediately after the uk left erm in 1992, for example. it's a bigger fall than after the lehman crisis. this is a very big move, irrespective of the madness in the middle of the night. >> kit, it's dom here. as we talk about the future trajectory of the pound moving. the forecast now, do we see that 1.20 level first?

1.30 level first? what range are we expecting given the move that just happened? >> you know, i think we could trade back under 1.20 and settle there. as professor rogoff said, also huge uncertainty about this leap into the unknown of saying let's rewrite our trade agreements with our biggest trading partners and hope for the best. the market prices something closer to the worst than the best in that environment initially. so, we could go lower. i think we'll settle somewhere, not far from here. 120, 125 for the pound versus the u.s. dollar. given we hahave a uk economy that's weaker over the next year, but not a recession. we e. we could go lower in the near-term for sure. >> kit, thank you for the color.

ken, clearly currency moves matter to the just for those in the foreign exchange markets. we've seen how the strong dollar has wreaked havoc all over corporate america in the last year, year and a half. this is coming at a time when the dollar strengthening again, anticipating a rate hike. will that hurt corporate america and the u.s. economy? >> the dollar going up hurts the united states less than the same for other currencies, because so much is priced in dollars. it's not good. it's a tightening of financial conditions. the fed does not need a tightening because everyone else is loosening. >> if the fed hikes in december, is that a mistake? >> if they had not gone on record saying we will absolutely do it, it's hard to see them doing it. >> so they're just doing it because they say they'll do it? >> at some level it doesn't mat their much, a quarter point.

let's not forget the uk initially stopped at at half percent, it was a moral qu equivalent of zero. it's more where are they going, what do they think they're doing. >> much more on that conversation, jobs and the kirs of cash. we are approaching the top of the hour, the team is getting ready for "squawk box." andrew ross sorkin joins us from ohio. my favorite state, not just because i'm from there but clearly the most important for the election. >> absolutely. we're at tommy's diner. we spent some time on the street yesterday talking to people in columbus, trying to figure out where they stand. there are 18 electoral votes up for grabs in the state, you haven't won the white house since 1960 unless you win this state. we have a number of guests we'll talk to this morning.

local people, business people, trying to figure out the big issues that matter to them the most. the most interesting piece is how tight the race has gotten. a couple weeks ago it looked like donald trump was up 4% 5%, now down to about 1.24%. something in that range depending on which poll you look at. over the past couple weeks, clinton has gained ground. you'll see more of them in this state over the next couple weeks as they try to swing the state in their direction. that's what we have on tap today. >> you should drive an hour and a half south and talk to my parents. they will lots of thoughts. >> they could come up. we have coffee, food, locals here. tell them they're welcomed. we'll buy them coffee and pancakes. >> i will. >> is that the speciality? french toast or pancakes everyone likes here. >> french toast. >> come on down. >> andrew, we'll see you on

"squawk box." the second presidential debate is this sunday night. watch the action unfold right here on cnbc, our coverage starts at 9:00 p.m. eastern time. we have corporate news to tell you about. samsung expecting third quarter profits to rise more than 5% as a surge in chips slowed the news on the recall of the galaxy note 7. samsung does report its full results at the end of the month. shares, as you can see, have remained resilient through this recall mess and damage. >> absolutely. still to come, more with other guest host, ken rogoff own this important jobs friday. less than three hours away from that crucial report.

his take on the situation next. guess what guys, i switched to sprint.

sprint? i'm hearing good things about the network. althe networks are great now 're lking thin a diffence in reliability of each oer. and, sprint saves you %t now on most currt national carrier rates. save money on your phone bill, wouldn't you leur more customers? i would definitely love some new customers.

sprint will help you add customers and cut your costs. switch your business to ri and save 50% on most current rizon, at&t and t-mobe rates. sprint will help you add customers and cut your costs. don't let a difference cost you twice as much. whoooo! for people with hearing loss, visit sprintrelay.com. now, hurricane matthew early this morning downgraded to a category 3. the eye of the dangerous storm is moving closer to the east coast of florida. a storm that has already left at least 100 dead across the caribbean. necn's chief meteorologist matt noyes joins us with the latest. >> the latest is this, just tallying up across the state how many outages we have. should be at about 350,000. what's amazing is the track. you can see the forecast loops this thing around over the next couple of days.

comes up the seaboard and back down to the bahamas again by the time we get to early next week. it will be interesting to see how this plays out with regard to the bahamas getting hit again by it. let's take you right now to florida and where the eye of the storm is. last position officially was 40 miles east-southeast of cape canaveral. these are the winds associated with the storm. a lot of water will be pushed against the shoreline from daytona beach to points north. just got to gusts over 100 miles per hour at port canaveral. >> thanks for being here, matt noyes. for more on the market news, let's get back to ken rogoff. jobs report today. expecting another 200,000 jobs added. 4.9% unemployment rate. a lot of people think that's enough to push the fed to raise interest rates this year. wonder if will have -- these

numbers start to have an election impact as well. what are you expecting? >> i mean, i'm expecting a number like that. i think the economy is doing okay as employment goes. pro productivity is disappointing. it seems like it would take a lot of date a to dissuade them. it would have to be really bad data. >> is the u.s. economy on sound footing? i've gotten comments saying they don't believe the data. from your standpoint is the u.s. in dire straits? it's not going gang busters, but are we okay as a nation? >> we're more okay than everybody else. the imf had the uk growing

faster than the u.s. this year. >> which had all the brexiteers saying look at us. >> 2017, not so much. things were better all along, the imf has been marking down forecasts for eight years in a row. but the uk is the one place that sometimes marks them up. >> you have made a lot of headlines with comments on china, which you think people are not paying enough attention to and not worried enough about. why? >> certainly going on there politically is making it difficult to do reform. they have debt problems. they have slowing growth. probably more than the official numbers. if you're looking at a spot in the world that can cause problems over the next couple years, i would point to china more than europe. >> it seems as long as the currency is stable and they have it under control, investors

don't worry about it. >> they don't know anything about it. the chinese don't even have good data on it. it's one of these things that can move really fast when it moves. you go, oh, i didn't realize they had debt, 220% of gdp what do you know. >> as you look at the global landscape for the economy what is the most important risk? what is the big the downfall that we could see that derails everything? >> that's a tough question. china, i would think, i would put as number one. europe clearly has problems, brexit puts pressure. you could get a populous vote in one country. i don't think it's the united states. though when you least expect it, i guess it's the most painful. >> what about the election uncertainty? economic risk? clearly is a big risk. i don't know if it's economic but clearly uncertainty. people are so unhappy with both

candidates, if clinton wins, there will be a crash. if trump wins there will be a crash. >> that does it for us. "squawk box" is next.

good morning. hurricane matthew battering florida's atlantic coast. the storm killing more than 300 people in haiti and left hundreds of thousands in florida without power. a live update from the path of the storm straight ahead. a flash crash in the british pound. at least at one point it fell as much as 6% against the dollar. market watchers suspect one of those fat finger trades. we'll get a live update from london. i would just change it to like a full figured finger. i just don't think fat -- i don't think i should say that.

it's jobs friday. we're just hours away from the september employment data that could move the market and influence the fed's rate hike decision. remember what happened to gold when we had that lousy number a few months back? gold is back down below 1300. i'm talking too much. october 7, 2016, "squawk box" starts now. live from new york where business never sleeps, this is "squawk box." if you have fat fingers, it's okay. you should be comfortable with yourself. don't stress about it. >> full figured finger. it's not easy, a lot of ill l i'm michelle caruso-cabrera. becky quick is off today. andrew is in