good morning. green for 2017. global stocks rally on this first trading day of the new year. trump tweets. the president-elect taking aim at china on the same day we're expecting his big trade nomination. and ready for takeoff. spac spacex pilots its first launch since its september explosion. it's january 3, 2017, and "worldwide exchange" begins now. ♪ good morning. very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost along with

seema mody. good morning to you. >> good morning to you. happy to be here. >> let's get to the global market action. 2017 has started on a positive note. last week was a little bit lackluster, 2016 fizzling out. we saw about 1% of declines for the week as a whole. big gains, though, for the year as a whole. the dow ending up 13.4%. the s&p 9.5%, the nasdaq 7%. so seven positive years in a row for the dow. let's look back at today's futures market. they are called higher today. we have a general risk-on trade. u.s. futures expected to open very prominently higher. the dow called higher by almost 150 points. ten-year treasury note for you as well, quick look at that, had is at 2.496% this morning.

not too much movement in bond markets today. more in currencies and equities. still below the 2.5% level. >> global economic data this morning, a private china manufacturing survey rising more than expected showing a pick up in factory orders. this follows the official pmi figures over the weekend which slightly came in below forecasts. in other news, chinese regulators announcing new measures to curb capital outflows. markets in new zealand, japan and thailand were closed today for public holidays. hang seng closing higher. shanghai composite up about 1%. ftse strait times having a positive session. >> let's look at how markets did close for the year as a whole in asia. very strong gains that we saw in the nikkei in the fourth quarter, some 16% were really flattering the overall year's performance. they were down sharply before that.

shanghai so sharply down, not all economies doing well last year. certainly not those that are negative for factors off of a stronger dollar. let's look at economic data out of europe. british manufacturing figures growing more than expected in december. the uk pmi increased to 56.1, significantly above 53.6 in november. the best since june of 2014. french cpi increased 0.8%, driven in large part by an increase in energy prices. there's been lots of data out of europe this morning. in general the pmi data was 54.9. in line with the flash estimate. we've seen the likes of germany, france, spain, ireland, all slightly ahead. greece was the one negative. either way, you can see the net effect is positive on european equity markets. up across the board today. banking sector is doing well. seeming to applaud thus far the

attempts to bail out the italian banks gains across the board for european markets. here's the boards for the year as a whole. let's look back at last year. ftse 100 doing particularly well. most gains not coming in the fourth quarter, but the third quarter when the pound fell after the brexit vote. france and germany doing well in the fourth quarter. about 9% gains each, which took them into positive territory for the year. germany ending up about 7%. it was not positive across the board last year. important to note that. lots of different stories happening within the different individual eurozone countries. italy and spain ending in negative territory. >> an interesting year for the markets. let's look at commodities where we saw big moves in 2016. oil right now trading higher by 2.3%. perhaps that data in china fueling the commodity market. nat gas down 0.6% after having a good year in 2016. looking at the dollar. the dollar, of course, been in focus and one of the driving factors behind the move in gold.

the fourth quarter of 2016. you can see here the euro trading lower, but the dollar is higher against the japanese yen. pound slightly rallying here at 1.22 against the u.s. dollar. if we look at gold which did gain around 8% in the year of 2016, you'll see that gold is slightly lower today at 1,148. as we speak about the yearly performance of these commodities, oil stealing the spotlight gaining 45% in the year of 2016 on the back of that opec deal. the weaker dollar that we saw initially in 2016 also playing a big factor. we'll have to see what happens this year. point of contention is the iran sanctions deal, if that's lifted or renewed in some ways what that does to the price of oil. >> oil this morning shy of 55 on wti. near a 12-month high. in terms of the market moves, complete reignition of the post trump election trade with

equities higher, dollar stronger. it does suggest that there was some of those factors of taking those profits as the year ended, the december to january transition. this is a positive, bullish move. if it continues for the rest of this week, that's an encouraging start. it may be a one-day thing, but this is a snap back from a disappointing end last week. december manufacturing pmi out at 9:45 eastern, followed by the december ism manufacturing index at 10:00 along with construction spending. president-elect trump hitting back at north korea and china in cheats. north korea leader kim jong-un warned preparations for launching an intercontinental ballistic missile were in the final stage. trump tweeting in response saying that north korea has just stated that it is in the final

stages of developing a nuclear weapon capable of reaching the u.s. it won't help. in a second tweet he criticized china saying china has been taking out massive amounts of money and wealth from the u.s. in one-sided trade but won't help with north korea. nice. i think it highlights how asia will be a big priority for the president-elect when he comes in on january 20th to the white house. it will be interesting to see how he handles relations with north korea. he lulz he always had an aggressive stance. if they retaliate, we'll be closely watching. another trump transition news, a couple nominations this week will be key to the business community. trump is expected to select lawyer robert lighthizer as trade representative. he served under president ronald reagan. former georgia governor sonny purdue is the leading candidate for secretary of agriculture.

p in other politic news, the obama administration is finalizing a study that could lead to restrictions on chinese investments in the u.s. semiconductor sector. the "wall street journal" said obama's chief science adviser is preparing a report that will be published before the president leaves office this month. it will offer guidance to the committee of foreign investment in the u.s. on china's efforts to dominate the semiconductor sector, which they consider critical to national security. the report could lead to new export controls and restrictions with chinese companies. china has been looking to boost its stake in this sector. nvidia, the best performing stock in the s&p 500 in 2016 and on the nasdaq. you can see gaining over 200%. china playing a role in terms of

outbound m&a, that was a big theme we saw in tech. >> a lot of semiconductor names in asia as well. they all performed well last year. a broad sector rally. investors pumped $375 billion in exchange traded funds last year. the preliminary numbers are from blackrock. among the reasons for inflows, investors looked to cut costs. libor reported that $288 billion in with dradrawals last year. switching gears to corporate news, another executive is leaving twitter. the company's china chief announcing her departure after eight months. kathy chen, tighter twitter's m director in china, said they would keep the hong kong office open. twitter has been blocked in china since 2009, and chen's job

was ultimately to help cult vive relations with chinese clients. we'll see how this departure affects things. former deutsche bank co-ceo is joining canter fitzgerald. its been a year and a half since jain left deutsche bank. he will oversee areas like fixed income, equities, trading and prime brokerage. and howard lutnick will appear on squawk on the street today at 10:00 a.m. eastern. india's prime minister announcing a series of incent e incentives to the poor. in an address over the weekend, he defended his decision to abolish high bank notes. in november he wanted to

withdraw all 5,100 rupee bills. we received a lot of criticism for that. the indian rupee has been moving higher. spacex announcing it is ready to launch rockets again. the rocket company will resume flying next week following an investigation into why one of the rockets burst into flames on a launchpad a few months back. in a statement the company said it expects to launch a falcon 9 rocket from california on january 8th to put ten satellites into europe. airbnb could miss out on bookings in london this year because of new legal restrictions. london will enforce a new 90-day limit for air bshbnb hosts. one-third of the savings they

can offer comes from taxed advantages to those in london. still to come, your 2017 playbook, predictions on how the restaurant business may fare this year, and a new republican controlled congress will convene this week. we'll talk expectations. and ready, set, trade, we'll talk with jeffrey kleintop. >> first our twitter question of the day, which company would you invest in if it went public in 2017? uber, airbnb, snapchat or spotify? we'll bring you results later in the show. stay tuned, you're watching cnbc, first in business. btoat

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good morning. happy new year. welcome back to "worldwide exchange." market action this morning, it's positive. looking good. gains in asia and in europe. we've had a stronger dollar. it's a bit of a reflation -- reignition of the reflation trade. called higher by triple digits on the dow. 125 points to be precise. roughly 0.6 or 0. 7% of gains for the three u.s. indices. they were down last week, down a percent or so. still very strong as a whole. oil prices, wti up about 45%, 11% in the fourth quarter that has not dismayed oil this

morning. up another 2.2%. just shy of the 55 bucks handle and in and around 12 month high at this hour. seema? >> the calendar has flipped over to 2017. so cnbc is getting out the flay book with predictions for how various sectors may fair. today fast food. burgers, fries and shakes. here's susan lee. >> reporter: the restaurant industry is looking for a renaissance in 2017 after suffering through a tough 2016. here's three things to watch in the coming year. regulation rollback. with president-elect trump promising to repeal most of obamacare, cut regulation and suppress the federal minimum wage. the restaurant industry should benefit from lower costs and make more money. this will impact the chains that own more restaurants, so mcdonald's and chipotle will benefit more over franchisers

like yum and restaurant brands. >> tax cut triumph. president-elect trump is promising to lower taxes. the restaurant industry is hoping more money in your wallet means more people eating out. couple that with lower corporate taxes, you can expect trump's tax policy to help the bottom line. >> can you say kebob? the national association of restaurants surveyed over 1300 chefs. >> they say the top food trends next year will be new cuts of meat, like shoulder tender and street food inspired dishes, think tempura and kebobs. >> the spelling of that word is different. kebab in the uk. >> it's kebab -- is that what you just said? >> yeah. this was kebob. >> in america we say chicken kebob. >> but spelled -- spelled differently. pronounced definitely differently. that was susan lee with the restaurant playbook for 2017.

still to come on "worldwide exchange," a live report from washington where a new republican controlled congress will convene for the first time this week. plus thousands of angry travelers were stuck in long lines in airports across the country yesterday. as we head to break, here's today's national forecast from jen carfagno. good morning. we have a rainy day ahead for the east. luckily not snowy. temperatures are warm enough it will be all rain for most of the northeast with the exception of extreme northern new england. maine will get some sleet, but changing over to rain. temperatures dropping off behind the front. look at 1 below in bismarck. that's the kind of air that won't be as cold by the time we get to chicago and detroit, big temperature changes coming. rain wrapping up in the south after severe weather yesterday. in the west, a couple of systems lined up for the week ahead. it starts later today with big

snow coming your way for the sierra. temperature-wise, it's all about this big front bringing in a huge temperature drop to a good chunk of the middle of the country. that's your coast to coast forecast. i'm jen carfagno. "worldwide exchange" continues after this.

welcome back to the show. let's get you up to speed on market action. the first trading day of 2017. we're higher across the board.

the sp &p 500 calling higher. look at dow, higher by about 143 points. the nasdaq also calling for a higher open by 32 points. let's show you how currencies a trading around the world. the euro 1.04 against the dollar. the dollar higher against the yen. the weakness in the yen that we saw in the fourth quarter of 2016, a big factor in the push against japanese equities. pound flat against the dollar. let's look at oil know. a lot of focus on the commodity market here on tuesday, the first week of 2017 with crude and brent sharply higher by around 2% in early trade. that deal between opec and nonopec members coming into initiation on sunday. perhaps the move moving off of that agreement. nat gas lower by 6%. we got upbeat data out of china. investor s digesting that.

a nationwide customs outage is over but arirports are still getting back to normal. thousands were stuck in long lines for hours as those arriving from outside the u.s. were being processed by hand. there is no indication the outage was malicious in nature. a new congress will convene on capitol hill this week with the republican majority in both house and senate. tracie potts joins us from washington. good morning. happy new year. >> good morning. happy new year to you as this new year gets underway, so does this new congress. the 115th. a late development last night that has to do with the oversight of ethics investigations here. but also one of their top priorities is going to be getting rid of the affordable care act. >> the taxes will be coming

down. regulations are coming off. we're going to get rid of obamacare. >> reporter: but how? republican leaders headed back to capitol hill today still have no plan for how to replace obamacare. >> he's going to replace it with something great and wonderful. that's the extent of his plan. >> reporter: president obama heads to capitol hill wednesday for strategy session on how to keep the affordable care act. any change to the nation's health insurance program could take years. >> the republicans are torn as to how late, how long to delay the repeal. >> reporter: the congress may investigate russian hacking to influence the presidential election. >> it is clear that russia has attacked the united states of america. >> it's important to have outside bipartisan experts to look at this. >> reporter: trump promises to reveal new information this week, as his press secretary was asked whether to expel 35

diplomats was overkill. >> raises the question on whether the actions are more political than bdiplomatic. >> reporter: so, here's the concern, if there is a lawmaker here on capitol hill investigated for misconduct, the oversight of how that information is released to the public will lie with politicians and not with the independent investigators. >> thank you very much. tracie potts in washington. from politics to sports, the college bowl season rolls on at the rose bowl with usc taking on penn state. the trojans came back from a 14-point deficit to tie it late and kick the game-winning field goal with five seconds left. usc beats penn state in a thriller, 52-49. the highest scoring game in the rose bowl's 1 03-year history. we move from california to louisiana and the sugar bowl which saw the tigers take on the

sooners last night. oklahoma would take over the game in the second half, scoring on a trick play to go up by two touchdowns. the sooners win big over auburn, 35-19 to wrap up their season on an 11-2 record. to hockey, the nhl's annual winter classic game. this year the blues hosted the blackhawks at the busch stadium. the weather was warm and rainy, but that did not deter more than 46,000 fans from watching in person. the blues reward the home crowd scoring three goals late to win 4-1. coming up on the show, this morning's top stories and a round of the global markets on this first trading day of the new year. and chrysler unveiling its concept minivan for the selfie generation. a look on the inside. stay tuned. you're watching cnbc.

global market alert. u.s. equity futures soaring on this first trading day of the new year. >> a new year, a new playbook. investment ideas from a chief global strategist from charles schwab. and a concept car that take. it's january 3, 2017, you're watching "worldwide exchange" on

cnbc. ♪ >> a very good morning and warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost along with seema mody. good morning. >> good morning. >> great to have you with us. last week was a fizzling out of a strong quarter. we saw u.s. equities decline by about a percent. still strong for the quarter and for the year. the dow was up 13% for the year as a whole. this morning we are bouncing back from last week's slight decline. the dow called higher by 142 points. nasdaq by 32. s&p by 15. that's about 0.6, 0.7% of gains expected at the open. it's a positive picture around the world. that's largely why u.s. futures are higher. let's look at europe, which is green across the board, albeit not huge gains. about a half percent for france. less than that for uk, italy and spain. we had some decent reads in terms of manufacturing data came

in in line for the likes of germany and france. spain, italy and ireland slightly ahead of expectations. uk manufacturing pmi, 56.1 versus 53.6 in november. the best since 014. let's look at what europe did as a whole. the ftse 100 up 14%. germany and france up less than that. weaker currencies have not benefited everyone. there's some individual stories. italy and spain highlighting that, ending in the red for the year. let's look at asian trade today. that's been strong as well. good data there including out of china where the manufacturing data came in one point ahead. best since january 2013. so, this morning, equities up, dollar stronger. it's a good reignition of the reflation trade.

>> it's that relationship between beijing and washington that we'll be watching closely this year if those protectionist trade policies comfort what that means for big companies in china and here in the u.s., like walmart who depend on that relationship. >> probably the biggest bad trump fact their we're watching for that we have not seen yet. markets moved in line with good trump optimism, will we get also some of those protectionist measures that could derail markets. >> following that 12% decline in the shanghai composite in 2016. as for broader markets, oil gaining over 45% last year, breaking a two-year losing streak. here on the first trading day of 2017, oil is sharply higher on hopes of that further cut between opec and nonopec members leading to a global production glut. wti up about 2%.

ice brent up 2%. nat gas down. will the trend continue? the rotation out of bonds and into equities has been a driving force for stocks. la the ten-year note trading at 2.8%. analysts are calling for three additional rate hikes in 2017. >> if we pause on this chart, everyone is saying how we had this massive bond bubble being popped. a new jersey rise in years, fall in prices. indeed the rise in that line is sharp in the fourth quarter. for the year as a whole, not actually seeing that big a change in yields, about 2.3% in the start of the year, 2.5 by the end. the move at the short end, the two-year, the long, the 30-year, is almost nonexistent. only in the ten-year for the year as a whole we saw a 0.2% move, which is not huge in the grand scheme of things. y during the year we saw a sharp move in the fourth quarter, for

the year as a whole, not that much of a change, which is something to remember. bond yields have not changed that much. >> if we look at gold chart, this was a winning trade for investors in the early part of 2016. that changed towards the end of the year. still holding on to a gain for 2016. came off the highs around november. gold trading at 1,148. it's off by $3. we'll have to see if that changes this year. >> rounding things off with the dollar board. the dollar strong in the course of the year. it was up about 3.7% against the broader index of currencies. it's up a half percent against the euro. the dollar was up against the pound until that manufacturing data came out. markets back to work today. a few economic reports on the agenda. december manufacturing pmi out at 9:45 a.m. eastern. followed by the ism

manufacturing index and construction spending at 10:00 a.m. president-elect trump hitting back at north korea and china in tweets over the last few days. north korea leader kim jong-un warned preparations for launching an intercontinental ballistic missile were in the final stage. trump tweeting that north korea stating that its in the final stages of developing a nuclear weapon capable of reaching the united states t won't help. in a second tweet he criticized china tweeting china has been taking out massive amounts of money and wealth from the u.s. in one-sided trade, but won't help with north korea. nice. clearly airing his views on that quickly. on the trump transition, we're expecting a couple of nominations this week that will be key to the business community. trump is expected to select lawyer robert lighthizer at u.s. trade representative. he served as deputy u.s. trade representative under president ronald reagan.

george governor sonny perdue is the leading candidate for secretary of agriculture. perdue served on trump's agricultural advisory committee during his presidential campaign. in corporate news, south korea is banning the sale of nissan, porsche and bmw models after the automakers were found to have fabricated certification documents. south korea announced in august that it would ban the cars after conducting a probe into whether companies beyond vw falsified information on emissions and noise level tests. last month the government said it would file a criminal complaint against several current and former executives at volkswagen's south korean unit. in the u.s., 2017 could be the year that luxury apartment boom fizzles. according to a new report by mpf research, landlords will likely be forced to slash rents and offer deep concessions as a glut of supply could bring the

seven-year luxury apartment boom to an end. since 2010, u.s. apartment rents have jumped more than 27%, but in 2016, they only rose by 3.8%. developers in new york and los angeles are offering big incentives on some projects. looks like hollywood is ringing up the results from hollywood box office. landon dowdy has more on that. >> good morning. happy new year. the box office closing out 2016 at an all-time record of $11.4 billion in revenue, surpassing 2015's record. rogue one and "sing" helping to push the final tally over that record mark. rogue one taking the top spot earning just under $50 million for the long weekend. and disney accounting for more than 25% of the domestic box office last year thanks to hits like rogue one, finding dory and captain america civil war.

"sing" was the second biggest smash for universal. passengers, which stars chris pratt and jennifer lawrence, earned about $20 million. it was a slow summer and fall. the top five movies of the year, finding dory, $486 million, rogue one at 440 million and counting, captain america, 408 million. secret life of pets, 386 million, and the jungle book with $365 million. >> dory was very cute. i watched that. >> i didn't see that yet. >> i watched that on the plane. >> rogue one coming second in three or four weeks of the year. >> that's right. i think it's exactly a month. per week opening, rogue one clearly the winner. >> disney accounting for 25% of

the domestic box offices for the year, amazing. time for our top trending stories. the fallout from mariah carey's botched new year's eve performance continues. carey's team blaming ridick cla productions. it was rather embarrassing for her, that whole escapade. >> no one wants that to happen. clearly lip-syncing was part of the performance. >> kicking off 2017 with a mini spice girls reunion. victoria beckham and melanie c. getting together to sing their song "when two becomes one" on new year's eve. mel later taking to instagram to post a photo of the reunion saying it's a wonderful start to 2017. does this tell us we'll see a

bit of a reunion of the spice girls in 2017? new songs? >> wouit would be a surprise. but i hope you're right. >> that would be epic. >> great. they tried that brief reunion for the opening ceremony of the london olympics. they made it clear then, that was for one show only. it would be a surprise. they should do it. >> why not. >> bad news for what's app users. the messaging app stopped working on a range of older smartd phones on new year's eve thanks to a change in software. the company said older mobile phones don't have the capability to expand apps features in the future. chrysler unveiling its first electric all self-driving car at ces today. the automaker saying the vehicle dubbed the portal is focused on millennials and will be an integral part of their lives. the portal has a selfie cam and a display for those sitting in the back that encouraging them

to post about their trip. that seems a bit distraktding for the dri distrakcting for the driver. it's a way for them to target the millennium. >> i think the selfie cam was in the back which is safer. >> yes. >> but still, when you're driver, you know selfies are being taken in the back, you want to be a part of them. still to come, the must reads. as we head to break, our facebook and twitter question of the day. which company would you invest in if it went public in 2017? uber, airbnb, snapchat and spotify. weigh in and bring your opinion to the show. you're watching cnbc, first in business worldwide. nes a meres

good morning. welcome back to "worldwide exchange." to our must read stories, my pick in the financial times. titled global reflation continues into 2017. the columnist gavin davies writing upgrades are more likely than downgrades in the u.s., eurozone and china during the first half of 2017. if this occurs, there may be further room for the reflation trades in the financial markets to perform well for a while longer unless a protectionist american president upsets the apple cart. it's a positive outlook in terms of the data he's looking at and whether we can get a

continuation of the q4 equity trade. and he thinks gdp growth will tick up. we'll have to upgrade the forecast for the first time in four years. >> the inflation target now. more countries expecting inflation to come back faster than expected after very low inflation in the early part of 2016. negative yield bond story an how that was gaining momentum. very different story starting the new year. >> today is an example of that. the german inflation data this morning led to a decent move in european bond yields. moving them up a bit. that's affected asset classes around the world. >> you have to wonder how the stronger dollar will help europe and japan that weakens their currency. these are two export nations dependent on a weaker euro and yen. does that in itself provide a boo boom for equities? >> you saw japan up 16%, germany and france up about 9% in the fourth quarter. they all benefited from the

stronger dollar. >> we'll have to see what happens. my pick is in the financial times as well. britain should beware consoling fantasies about china. james richards writes china will no doubt seek to make the most of the new realities. chinese investors have been attracted by the openness of the uk market while the tariff free access to other european markets afford by uk membership of eu is critically important to foreign car manufacturers. many chinese investors are interested in british assets for their intrinsic value. we were talking about what this means for chinese companies, but not only the u.s., but how beijing responds to any type of anti-trade policies, perhaps

warming up to other countries like britain and its peers in asia to fill that void. >> britain has been much warmer towards china the last five, six years than the likes of the u.s. have. even though they're separating themselves from one free trade deal, britain is giving rhetoric to being open to the free afraid. getting ready for the new set at the nasdaq for "squawk box." melissa lee joins us with a preview of what's coming up on the show. good morning. happy new year. >> happy new year to you guys. this is an amazing new set. we broke it in on fast money last week. so we'll share our digs with "squawk box." we're excited to have them here and started off the new year with a strong slate of guests here. well looking a the first 100 days and are what it means for the trump rally as we fire away to dow 20,000. kellyanne conway will join us at 8:00. also we'll talk about the potential repeal of obama care

with ezekiel emmanuel. these are great -- look at this back drop, right? can't beat this. >> you use this during the evenings. >> i feel like i should be saying "fast money" starts now. but "squawk box" will be starting. >> in about 12 minutes time. looking forward to it. coming up on "worldwide exchange," jeff kleintop talks about his investment ideas for the new years. stay tuned, you're watching "worldwide exchange" on cnbc.

welcome back. let's quickly look at markets, starting with the german ten-year bond yield. there's been a spike in yields. yields going up, that sharp move at right-hand side of that chart. it's resparked a bit of a global

reflation trade this morning. which has begun with equities around the world. asian equities were nicely stronger. european equities also stronger. green across the screens this morning. it has certainly led to all of the post-election trades being reignited today. if you look at the dollar board, you can see it there as well. we have a stronger dollar against the euro and yen by a half percent. flat against the pound. the pound regained some of its losses earlier after manufacturing data in the uk was stronger than expected. all of this collectively means u.s. futures are looking very good this morning. some triple digits we're expecting higher from the dow, about 150 points or 143 to be precise. 0.6%, 0.7%. almost wiping out last week's declines. last week, we lost about a percent or so as we fizzled out 2016. but looking like we're starting 2017 with a bang. let's discuss what to expect

today and the rest of the year with jeff kleintop. good morning to you. happy new year. >> happy new year. >> so, it looks like last week's sort of lackluster finish to the year will be ignored this morning and a positive start to the year. is that something you expected and that can continue? >> a lot of these trends you've been talking about, we'll call them reflation, higher interest rates, stronger dollar, a rebound in earnings and sales growth, that's good news. it's good news for the u.s. markets. where i'm concerned there might be risk extending from that is in markets in china sure, we saw good pmi data this morning in the manufacturing sector, but interest rates have risen in china. we've seen tighter liquidity conditions and a higher dollar put pressure there as well. we could see some of the hard landing fears resurface that were a big feature of last year as we enter 2016. that could be one of the risks to the global reflation trade. overall good for u.s. stocks, but there are some risks

associated with this outside the u.s. >> do you think u.s. markets are ignoring international risks or are they something we're much more aware of given those volatile moments we had last year, whether it was january or february with china fears, or june for brexit fears. do you think people are aware of them or not? >> i think they're aware of them but learned many of these risks are short-lived. for long-term investors maybe it's best to look past them. we have a number of events in europe regarding elections and votes in 2017. investors don't seem overly concerned about those. those pressures may increase as the elections approach for france, and in april and in may. but investors are focusing on what they can count on, that is improving sales momentum. great news for u.s. equities and the tech sector. >> what about russia? russia was one of the best global performing markets in 2016, gaining over 15%. we saw the strong rebound in the

ruble, also on the potential new relationship between vladimir putin and donald trump and what that means for business. is this an opportunity for investors? >> we might see something with sanctions fade a bit. as i look at the russian stock market, it moves in lock step with oil prices. oil prices may continue to drift higher over the course of this year and next year that couchlt. that could be good news for russia. >> if that deal with iran is torn up, what does that ultim e ultimately mean for oil prices? >> the pace of the rise in oil is likely to moderate. but global demand remains solid. if we look to asia, the demand picture is improving. the focus has been on the supply side of oil for so long. as you mentioned, the deal with

iran. but it's the deplannmand side ts creeping up and turning around. that could be the story that helps to support energy prices going forward. >> jeff, bringing it back to the u.s., talk about valuations. how comfortable are you with where they are at the moment? >> valuations are a bit above average. generally bull markets don't end around average valuations. they get higher than this. one of the surprises we could see is that valuations don't slide, they continue to rise as investors rotate out of bonds where they might see modest returns, maybe some losses into the stock market. individual investors have not been buyers of stocks for a couple years now, particularly u.s. equities, that could support valvaluations, maybe a surprise to me who worry they're too high. >> in terms of u.s. growth expectations, where are you versus consensus on those? >> maybe a surprise on the upside. most global growth will be led by the u.s., maybe some emerging markets in 2017. but remember, this could be the

first year since 2010 that all of the top 15 world economies or make it top 20 are out of recession. that hasn't been the case for many yours. global growth including global trade and profits could benefit from that. could be a good year fundamentally for the market. does that mean things like industrials and banks continued to do well? >> could be the positive. we talked about the rally in the dow and dow futures, the dow is a much more economically sensitive index that could be the case again this year. >> time for the results of our twitter and facebook question. we have a tie between uber and airbnb, 35% each. snapchat and spotify, 15%. my answer is spotify. >> if they even go public. we'll see at this point. >> i like the business model of spotify longer term. >> we'll see what happens.

>> yourself? >> spotify and uber if they were to go public. an interesting story. >> be nice if all four did. >> that's is for "worldwide exchange." "squawk box" is up next.

good morning. starting the new year in the green, bigley. futures rallying. this might be the day. full market run down is coming up it would make sense in our new home. and trump tweets, the president-elect sounding off on north korea and china, and we expect his pick for trade rep this morning. and "squawk" has a new home. we'll give you the grand tour straight ahead. it's tuesday, january 3, 2017. "squawk box" begins right now. ♪

live from new york where business never sleeps, this is "squawk box." ♪ good morning. welcome to "squawk box" here on cnbc from our now home at the nasdaq market site. i'm andrew ross sorkin, along with joe kernen and melissa lee. this is how the markets closed out 2016. the dow was up 13.5%. the s&p 500 rose 9.5%. the nasdaq rose 7.5%. this is your home, we should say. >> it is the home of "fast money" happy to share it for the time being what a great back drop this is, right? do you like this? are you against change. >> i'm against change normally. but also trying to hear you. can i ask to hear you. yes, i think you can. >> normally