good morning. markets now, u.s. futures in the red as the dow slips away from the 20,000 mark. the trump administration kicks off a whirlwind week of cabinet hearings. and what's in a name. the big changes coming to yahoo!. it's tuesday, january 10, 2017, "worldwide exchange" begins right now. ♪ good morning. very warm welcome to "worldwide

exchange" on cnbc. i'm wilfred frost. >> i'm sara eisen live in orlando florida at the icr investment conference, one of the premiere conferences where consumer companies gather to talk about the state of the industry. boy, has the outlook changed after the election. couldn't be more timely to talk to some of these ceos in restaurants and retail about what they're seeing in consumer behavior. we saw a spike in consumer confidence after november 9th what do they expect when it comes to corporate tax reform? a lot of companies today are domestic. they pay high effective tax rates and are looking forward to lower rates. on the flip side, starting to see wage inflation paying workers more in fast food industries. does that mean you can pay more for your food? a lot of issues on the table. we'll talk to ceos across a wide swath of industries.

in this hour, the ceo of elf cosmetics, one of the hottest ipos in 2016, in what was a lackluster year for ipo activity. they sell makeup for under $20. they've been surging. also talking to the ceo of soda stream, perennial acquisition target going up against the likes of coke and pepsi for sparkling water. all of it around this theme of a check on the consumer. department stores falling last week, a great time to have a pulse check on the consumer. let's look broader at markets. futures are pointing at the moment to a slightly positive open. 13.5 points for the dow. yesterday continued that theme of rotation post-trump rally. the nasdaq was the best performer. up 0.2%. the dow and s&p were down 0.3,

0.4%. also a bad day for the energy sector with oil prices declining. nasdaq's performance since the election is now better than the s&p. still slightly lacking the dow. the nasdaq and s&p up at about 6%, nasdaq fractionally ahead of the s&p. the ten-year treasury note has been relevant for stock rotation. bond yields have pulled back and yield curve flatten a bit as well. to the right-hand side of that graph, the way yields have slipped back from their highs. we were at 2.37 today. that has hurt the bank stocks and seeing some profit taking there that sector over the last week or two. >> rotation into technology has been the theme. global economic data of note today. let's start with asia. in china, producer prices rising to a five-year high in december. that number coming in at 5.5% versus a year ago.

economists were looking for about 4.5% increase in wholesale prices. strong raw material prices sending that number higher. separately in japan, consumer confidence strengthening to its highest level in more than three years, that's according to data from the japanese cabinet office. the sentiment index improved to 43.1 in december. japan's nikkei overnight, first day of trading for the week, opened soft following in the footsteps of global stocks. closed yesterday for a holiday. down 0.8%. hong kong going the opposite way. to europe, where british retail sales picked up speed in december. strong christmas week sent spending to a year on year rate of 1.7%, that was up from 1.3 in november. share prices across europe, the same pitch we've had for the last couple of days.

negative across most of the region with ftse 100 outperforming. in the uk, retailers doing well off the back of that retail data. also holiday spending numbers from the likes of wm morrisons, traditional bricks and mortar retail seems to have done well in december. slightly different from the picture in the u.s. broader markets, oil prices soft yesterday, down about 3%. that's why the energy sector was the worst performing on the s&p. bouncing back today. dollar board, let's look at that. the dollar slipped as did bond yields yesterday. to the tune of about a quarter of 1%. not too significant despite a big rise against the pound yesterday. overall the dollar was soft. today the dollar not doing much at all. gold prices gained 1% yesterday. there face of that softer

dollar. and at the moment gold prices are a little bit softer. down to 1,184. >> a 1% gain for bitcoin. there's a trio of economic reports on today's agenda. we will get the monthly small business survey from the national federation of independent business at 6:00 a.m. eastern time this morning. followed by november wholesale trade and the monthly jolts, we know that janet yellen and the fed members are always looking at the number of new job openings, and quit rates. >> we have goldman sachs upping their gdp forecast overnight. to politics, which will take center stage today. less than two weeks away from the inauguration of donald trump. today senate confirmation hearings will get underway for various cabinet appointments.

jeff sessions for attorney general and retired general john kelly for homeland security. all of this following news that donald trump's son-in-law will be named senior adviser to the trump administration. he will work closely with reince priebus. kushner, who turns 36 today, will work on trade deals, middle east peace and overall government operations. to avoid conflicts of interest, kushner will reportedly resign from his position as ceo of his real estate organization and he will have to overcome a federal anti-nepotism statute. his attorney says the law does not bar him from serving, others are putting the issue up for deba debate. happy birthday to mr. kushner today. >> continues to be a source of debate. sticking with the trump administration, president-elect trump and house speaker paul ryan meeting with several top advisers last night to discuss one of the biggest republican

projects of the year, that would be tax reform. the talks were private and included many top members of trump's team. steve bannon said the meeting examined two provisions of ryan's better way tax reform blueprint, according to a border adjustment measure which will tax u.s. imports, not exports. it exempts the business export revenues from corporate taxation. in the meeting they also focused on a house territorial tax proposal that would end taxation on foreign profits of itself-based multinationals. this is important on two fronts for businesses, for the multinationals they have been waiting for that tax break holiday. on the first point, the border adjustment tax, that's something here in this conference that is a major source of debate and concern. because so many retailers, automakers, you name it, source

their products from abroad. they're made in asia. they get it cheaply, bring it to the u.s., sell it to u.s. consumers for low prices. will we pay up for everything? will the consumer even do that in this sort of sluggish consumer environment or will be awfully painful for retailers? just the next wave in what has been a difficult cycle for them. >> will the consumers suffer instead of the workers who would be gaining off this. it's not all protectionist rhetoric. on trump's trade agenda britain will be in the front see the to negotiate a new trade deal with the new administration. this according to reports. senate foreign relations committee bob worker reportedly said as britain prepares to leave the european union, a trade deal between the u.s. and uk will be a priority, this after boris johnson met with corker yesterday. another it's huge shift in the administrations. obama saying if britain left they would be at the back of the queue for a u.s. trade deal.

boris johnson confirming that turn to the front of the queue. >> also on the political agenda today, president obama will be giving his farewell speech. 9:00 p.m. eastern time in his hometown of chicago. it will be the president's last trip on air force one. and he will be joined by the first lady, michelle obama, vice president joe biden and his wife, jill biden. he is expected to share his vision for where the country should still go to a crowd of 7,000 people. billionaire activist investor carl icahn weighing in on the change in power. icahn will serve as trump's special adviser on regulation. he appeared on fast money yesterday. >> i think he's smart, i think he's one of the few people that can really shake up the establishment and stop what i consider to be almost idiocy with this overregulation.

now there was some very good regulations and, in fact, i do believe that you need wall street regulations for some extent so i'm not as much anti dodd-frank as a lot of people, but i think some of them we've run amok. >> acicahn added by cutting bac on regulations the businesses will no longer feel at war with the government. let's get to the top corporate news. big announcement from yahoo! as it moves closer to the $4.8 billion sale of its core assets to verizon. landon dowdy has the latest. a lot of mockery on social media for the name. >> certainly has been. yahoo announcing marisa myer will step down from the board once the deal is completed. five others will also step down following the nearly $5 billion sale of its core internet business, yahoo will change its

name to altaba, which is a combination of alternate and alibaba. the announcement comes amid some uncertainty over whether verizon will follow through with the deal after yahoo disclosed two separate data breaches last year. in a filing yahoo said those incidents could become a material event which could allow verizon to terminate or change the terms of the deal. mayer is expected to remain with the company once it becomes part of verizon. wilfred, back over to you. >> thank you very much. speaking of alibaba, the executive vice chairman jack ma meeting with president-elect trump yesterday to discuss bringing 1 million new jobs to the united states. ma said the expansion would focus on garments, wine and fruits and special focus on trade between the american midwest and southeast asia. alibaba saying the job creation

will focus on creating small businesses which will sell american goods to china on the alibaba platform. >> alibaba making some deal news. the company said it would be teaming up with the founder of china's in time retail group to take the department store operator private. shares of intime surging on that news in asian trade. up 35%. the move is an effort by alibaba to extend its online presence into physical stores. both firm also pay as much as $2.6 billion to take the hong kong chain private. the deal requires shareholder and court approval. both stocks, though, seem to like this idea it gets into the idea about whether -- you hear talk about retail brick-and-mortar being dead. you hear that amazon is exploring physical retail sales. alibaba also going that way. it reminds me of terry lundgren

who said there will have to be a happy medium. >> they're in a more flexible position, amazon and alibaba but not having that huge stock of bricks and mortar stores to pull away from. other corp frorate news, ba of america is said to owe a half billion of unpaid premiums to the fdic. for a five-year period they failed to assess their own risks correctly. >> when we come back a roundup of today's stock movers, plus as we head to break, the nasdaq hitting an all-time high yesterday. here's a look at the names that led the charge. some massive gains here. we'll be right back on "worldwide exchange."

welcome back to "worldwide exchange." good morning, i'm live from orlando, florida, site of the icr conference where consumer companies in retail and restaurants get together to talk about the issues facing their industry. there are many post elections. now to the corporate news. canadian retailer gildan has won the bankruptcy auction for american apparel after raising

its bid to $88 million. gildan won't take any of the stores but will own the brand and manufacturing operations. american apparel filed for chapter 11 bankruptcy for the second time back in november after a turnaround plan failed. reports say the auction also attracted interests from forever 21. all sorts of speculation that amazon was looking at it, too. >> does it now get changed to canadian apparel or not? >> i don't know. very hot right now to be made in america, as you know. to have a good relationship with the new administration. >> brush that under the carpet make sure no one notices. google is reportedly in talks to sell its satellite imagery business to planet labs. google bought the business for $500 million in 2014. the "wall street journal" says planet labs is seeking to raise funds to pay for the deal.

google has decided to save money by buying images from third parties. no move in alphabet stock this morning. other stocks to watch today, l'oreal is buying three skin care brands from baleant pharmaceuticals. the deal would double revenue from the cosmetics business. baleant is also selling a cancer unit to china's sanpower for $820 million. both parts of the stock down. williams companies offering a launching of shares of its stock. it is also raising its stake in williams partner from 60% to 72%. barracuda networks reports better than third quarter results. they swung to a profit with a 17% rise in revenue from subscriptions. barracuda up 8%. when we come back, cabinet

hearings kicking off. the president-elect's picks will be in the spotlight today. we'll tell wlyou what to expect when we come back.

welcome back. to politics and the trump transition. tracie potts has more. >> reporter: confirmation

hearings expected to be contentious. starting with this morning. today's hearing, senator jeff sessions for attorney general and homeland security nominee general john kelly. sessions will be challenged on his civil rights record. >> i am not a racist. >> reporter: in wrong and as u.s. attorney in alabama. he won murder convictions against the kkk. >> he has a different racist political ideology. >> senator sessions is not a racist. >> reporter: congressman john lewis will testify at sessions' hearing. >> jeff sessions understands the importance of civil rights. >> reporter: more nominees set for tomorrow and thursday. nbc learned four do not have complete ethics reviews. >> democrats feel very strongly that pushing for a thorough and thoughtful vetting process is the right thing to do. >> everybody will be properly vetted as they have been in the past. >> reporter: 70 hours of mock hearings took place at the trump

transition office in d.c. >> the process is meant to prepare the nominee and scare them just a little bit. >> reporter: hundreds of questions here, more wednesday when the president-elect holds hits first news conference since july. questions will now address hiring his son-in-law, jared kushner as senior white house adviser. now, a trump attorney says that the federal nepotism law has been tested in courts and that it applies to federal departments. department of defense, department of homeland security, education, but that it does not apply to the white house, so there shouldn't be a problem with jared kushner working for his father-in-law there. >> tracie potts, thank you very much. moving on to sports, the college football national championship game last night between alabama and clemson. with just six seconds left. clemson's quarterback threw a game-winning touchdown. the tigers beat the crimson tide

35-31 avenging their loss to alabama last year. it's the first national title for clemson in football since 198 1981. >> and as you can imagine, i did not watch it. i was reading research reports for consumer companies all night, but a source tells me it's very nice. they were an underdog in vegas, clemson was. alabama will be number one next year. they'll have another shot. there's my knowledge. >> i also didn't watch it because i was watching up on a show you are making me watch this year. >> "the bachelor." you have to be in the fantasy league. >> i have to be in the "worldwide exchange" bachelor fantasy league. it was tough to watch. >> getting very competitive. >> but i want to win. when we come back, it was one of the better performing ipos of 2016 in an otherwise slow year for the market and for new debuts. the company's stock held up well

sense septembe since september, we are talking about elf beauty. we will talk to its ceo just ahead. lathnsr.

. tech on a tear as the nasdaq eyes another record high. >> the trump boom, one big bank

upping its u.s. growth target. we'll break it down with moody's mark sandy ahead. >> and the company eo of elf an chairman of soda stream will join us straight ahead. it's tuesday, january 10, 2017, you're watching "worldwide exchange" on cnbc. ♪ very good morning. warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost at cnbc headquart headquarters. >> i'm sara eisen in warm and sunny orlando, florida. i'm at the icr conference where all the ceos from america's consumer companies gather every we're. this year a lot has changed. since the election, some

restaurants are up double digits, consumer sentiment has spiked, but is there change in consumer spending and behavior? we heard some negative preannouncements from some big department stores when it comes to holiday spending. was that the prevailing view? these are all questions front and center here at this conference. we'll talk to the ceos of elf and soda stream. later in the market ceos of lululemon, and a fast food roundtable. a lot to talk about heading into the new administration with the nug grags t inauguration ten days away. >> let's look at markets now. futures pointing to a fractionally higher open. we have gained a little bit in the last half hour. up about 30 points now. up about 15 a half hour ago. the s&p up three. the nasdaq up four. yesterday continued that theme of rotation. the nasdaq, the best performing

sector up 0.2%. the dow and s&p down about 0.4%. we also had a bad day for energy sectors, oil prices declined. let's look at european trade right now. it was a negative day yesterday for most of continental europe, but a positive day for the ftse 100, the strong fall in the pound allowed the ftse to continue its winning streak, 11 straight days of gains. another record high which it looks like it will close at again today with the ftse 1 00 up a quarter percent. the rest of europe slightly improving today compared to yesterday. and as compared to the open today, we have green predominantly across the screen. we had some decent uk retail sales out earlier today. as for asian trade, let's check in on that. chinese ppi soared in december. the producer price inflation came in at 5.5% ahead of consensus of 4.6%. albeit cpi was lower, 2.1%.

the picture is hong kong is up, shanghai and japan down a bit today. broader markets. oil prices, which were soft yesterday, they are bouncing back today. having declined about 4% yesterday. just shy of 4%. up 0.6 today at 52.3. the dollar, which was soft yesterday, pretty much flat today. not doing too much. the pound settled down. it's down again today, but not to the tune of the over 1% decline it saw yesterday. gold prices, they gained 1% yesterday in face of that softer dollar. today they are soft at 1,183. the ipo market disappointed last year, but one company had a stand-out debut. we're talking about elf, the beauty products maker up more than 70% since its ipo in september. joining me now at icr conference

in orlando is tarang amin, the ceo of elf beauty. nice to see you again. great to see you. >> i remember that day in september when you went public on the floor of the new york stock exchange. stock popped and has continued to gain since then. makeup is a saturated industry. how you have been getting double digit sales? >> how we're getting those sales is our brand resonates with probably the most important consumer in the category which are young, diverse, makeup enthusiasts. >> millennials. >> millennials, as well as people who love makeup. that's who we appeal to. we have high quality cosmetics, extraordinary value, and it resonates. >> low cost makeup for millennials. it does feel like something that is easy to replicate. do you worry about competitors coming in? especially bigger companies with more scale? if it was only low cost we might worry, but the combination of how great our products are and the innovation we can bring. we introduced 50 things that

originally you could only find in prestige to the mass market. it resonates. we have not seen anyone else replicate that. >> what have you seen after the election? we've soon consumer confidence numbers go up. is that reflected in spending? >> our brand has resonated with core consumers for a long time. we continue to see positive response from consumers. >> so necessary change? >> not for us, given growth rates and how we appeal to the core consumer. >> you have a high effective tax rate, i think one of the highest in the consumer space as a domestic company. what are you paying, 40%? >> 42% is our tax rate. >> you're looking forward to corporate tax reform? >> that would be nice for sure. our profits mainly reside in the u.s. our business is mainly a u.s. business. >> have you don't math, if the tax rate can go down to 20%, as we're hearing, what would that mean for you? >> i think it would be good things. it's a bit premature.

we'll have to see how the market infolds, including other changes in policy. it could be a benefit. we'll have to see. >> you've also managed to grow your digital business at a time when a lot of department stores and retailers are complaining about the rise in online spending. they're not ability to offset it with traffic. how do you do that? >> first of all, about 85% of our businesses are in large national retailerswalmart. the direct channel is 15%, at elf.com. it has the broadest assortment of elf, and we can engage their love of makeup and innovation. >> we talked about the competition being bigger, more established customers. how much market share do you think you've taken from them? we've been growing market share significantly. it's come from established players but also from bringing

incremental growth to the category. we can take an initial idea to selling online in as few as 20 weeks compared to years for legacy players. and in addition we're launching something new just about every week. so it's giving us ability to drive news and excitement. >> where you are sourcing your products from. >> currently source in china. >> are you concerned about the bo border adjustment tax? >> i think it's a bit premature. we'll have to see how things unfold. the other thing is we wouldn't be alone this would be an industry effect. >> that the biggest fear from the new administration from you? >> potentially, i would say to. >> what about the biggest opportunity? >> you talked about one of them, which is corporate tax rate, in addition to the overall economic environment. we've grown regardless of the

economic cycle, mainly because of our ability to engage younger millennials. >> we were looking at some of your products yesterday online. a palatte of ten different eye shadows for 10 dollars. how do you get those low prices? do you have to compromise quality at all from what we see in the department stores? >> that's the great thing about elf. we have phenomenal values, but the quality of products matches up to prestige. we often preference test our products versus some of the best in prestige, often the elf products are preferred on a formula to formula basis. it's one of the reasons and biggest advantages we have, our ability to bring this high quality innovation to market at incredible prices. >> i know investors and analysts are eager to hear from you. you're presenting later today. thank you for sharing some time with us. >> thanks. >> tarang amin, ceo of elf beauty. >> thank you very much for that. let's flip back to today's top corporate news. yahoo announcing it will change

its name to altaba once it sells its core business to verizon. the company's ceo, marissa mayer will be leaving its board as part of the deal. that nearly $5 billion deal could be in doubt after yahoo exposed two giant data breaches last year. shares of verizon this morning pretty much flat. top trepi itrending storiese s spotify's ceo tweeting yesterday, hey, barack obama, i heard you were interested in finding a new job, have you seen this one? it points to a president of play lists. the job calling for eight years of experience running a highly regarded nation and promoting

play lists at a federal level. so make the most of the changing job opportunities for the president as he steps down and getting attention off doing so. >> absolutely. probably a smart marketing move. we know the president likes music. facebook wants to cash in on its videos. the company will begin testing mid-role ads on its platform. that change will allow publishers to make money from videos. video competitor youtube runs ads before a video, facebook looks to play the ads within the video. facebook offering publishers 55% of that ad revenue. so they are testing out the user experience. it's been important to mark zuckerbe zuckerberg, why he never wanted to preroll ads. and maybe this signals they're

spending more time with the ad watching 20 seconds into the video. i don't know. i never watch video on facebook. >> i feel mid roll, i feel like, will be more annoying than prerole. we' pre-roll. we'll have to see how it works out. we have become kind of unaware of the adverts. we'll see if this works. still to come. with a new president taking office in a little over a week, the markets will looking for more clues on trumponomics. we will be joined by mark zandi next.

welcome back. goldman sachs upping its third quarter gdp estimate to 2.3% following last week's trade data, factory orders and auto sales reports. joining us now is mark zandi from moody's analytics. does that upgrade tally with your expectations for the year ahead? >> yeah. i think it should be a good year. the u.s. economy is on very strong fundamental ground. china is stable. europe is improving. yeah, should be a good year. i agree with that upgrade. >> it's only a small upgrade. we're still only talking about 2.3% gdp growth. giving the animal spirits and big moves in the markets, is that actually room for a bigger

beat than that? >> it's possible. a lot depends on fiscal policy in the united states. if we get a big fiscal package, tax cuts, government spending increases, deficit finance that should juice up growth. corporate tax reform should help as well. economists have been overpredicting growth, including myself, consistently for -- really since the economic expansion began seven, eight years ago. i think everyone is shy about getting overly optimistic. >> is that the big swing factor now in terms of what is delivered in terms of policy and when it's delivered? with that in mind are you ability to be more confident of a bigger growth pickup from 2018 onwards to this year itself? >> good point. a lot depends on policy, also monetary policy. because as -- if we get the

fiscal stimulus, because the u.s. economy is at full employment or close that will generate inflationary pressures and the federal reserve will have to normalize interest rates more quickly. that will be a tricky transition. i expect a lot of volatility in markets as a result. i do think 2017 should be a good year. 2018 probably a better year because of all that stimulus. there is downside risk, that is the volatility markets generated by the normalization of monetary policy. >> mark, it's sara in orlando. sounds like you completely changed your tune. i remember during the campaign last summer when you came out with that report looking at the economic policies and immigration policies of donald trump saying it would cut economic growth in his term and cut 3.5 million jobs. have you changed your mind on that? >> no. that exercise was what if donald trump got exactly what he says he wants to get.

that would include asking 11 million undocumented immigrants to leave the country, tariffs, big tariff increases on china and mexican imports, including 9 trillion over 10 years of deficit financed tax cuts, i can go on. if we got that, then the economy would suffer a severe recession. no, my views have not changed. the reality of what we will get is different. i think 2017/201 should be good years. i also will say, even given what i expect what we will get with fiscal policy, i think by the end of the administration the economy will be soft and recession risks high. >> one risks people cite is the stronger dollar. we're focused on certain big pairings with the dollar. can you gauge how strong the dollar has been on a trade weight eed basis and what that means for your forecast?

>> a broad trade weighted basis, the dollar is up about 15% from two years ago. that's a key reason why the u.s. economy has not grown more quickly over the past couple of years. since the election up 2%, 3%, 4%. my expectation is we have another 2%, 5% to go here because of the more rapid normalization of monetary policy. still the european central bank, boj, bank of england will be slower to normalize rates. i expect further dollar strength. if that's the forecast that we get, we should be fine. 2017 and 2018 should be good. you make another good point. if the dollar surges more quickly in value than i anticipate that will do more damage. one way to get there is if we have increased tensions around trade. if we do try to renegotiate t

nafta, the u.s. is still the safe haven, some capital will come flowing leer. th here. >> mark, great stuff. mark zandi. when we come back, an exclusive conversation with the ceo of one of the biggest stock winners of 2016, soda stream. shares surged by more than 140% last year. can the momentum continue? what's driving it? the at-home beverage maker's chief daniel birnbaum will be here.

. welcome back. soda stream was one of the comeback kids of the stock

market in 2016. shares roase nearly 150% last year as the company revamped in the u.s. market as a sparkling water brand and opened new businesses in israel. joining me is daniel birnbaum. we have to talk about this stock sale after a rough patch for the business. what turned it around? >> in 2014 we introduced a new growth plan, which focused the company on sparkling water, a sparkling water beveragemakemaker at home, where you can turn tap water into a sparkling water. and it is fun. consumers want fun, environment thely responsible and health and wellness, so we're hitting some major consumer mega trends. >> but also hitting competition as well. everybody is in the sparkling

water and bottle water business right now, especially your competitors like pepsi and coke. >> but the consumer is voting. we are the largest sparkling water brand in the world. twice the size of perrier, much larger than smart water because we're healthy, economical and sustainable. those other brands what do they bring to the consumer? to me, it's a scab. the whole sparkling water industry as we know it is a scam. it's probably the biggest marketing and advertising scam of all times. why? >> because consumers can get the sw water without the bottle. the bottle is a hazard to their health and the planet's health. i say smart water is from dumb water. it comes from municipal sources. smart water is owned by coca-cola and -- >> aquafina is owned by pepsi, which you work with. >> no, we don't. we work with ourselves now and

consumers who create their own sparkling water at home. we have 24 million consumers around the globe who sparkle soda stream every day. and they love it. we stay the course, that's what we'll do in '17 also. we won't change our strategy. we're a home sparkling water company. consumers love what we do. >> have you seen interest from larger players? you're constantly mentioned as a takeover target for a big company. what we are getting from big players are cease and desist letters. they hate us. we got seven letters from the likes of nestle in the last six or seven weeks, demanding that we stop advertising and messaging that tap water is healthy and that people can drink it and sparkle it. and they want us to stop that messaging because they are making so much money from that sparkling water and bottle water industry, romanticizing it

saying it's coming from the alps and selling bottles for $1.50. but they're not scaring us. we continue do what we're doing and doing it it well. we're the largest sparkling brand in volume. >> you have a big north american presence. have you seen a change in consumer habits or spending after the election? north america represents about 20% of our volume. we're selling in about 45 countries of the world, our largest region is europe and the largest market is germany. while north america is important, it's only 20%. we don't see shakes. we're not too concerned about where -- everyone is talking about the trump effect. but we're not too concerned, it's only 20% of our business. >> what about the trump effect on relationship between u.s. and israel? as a big business leader there, you must have a view. do you expect a president trump to be better for the relationship than president obama? >> everyone in israel has a view. and my view and soda stream's

view is that we can contribute to co-exist and send peace by employing people from different backgrounds, different areas. we employ in our factory in israel which is now up and running, a beautiful state of the art factory, which contributed to our turnaround in 2016. in that factory we employ arabs, israelis, palestinians, jews, they all work together in peace. we are call it the economy of peace. we think that the people make peace and not politicians. we need the politicians to get out of the way and let the people do what they do so well and engage and meet each other. the politicians should stop inciting for hate and inkritding f inciting for terror. let the people make peace. we can do it. >> avoiding the u.s. question on politics, understandable. i know this has been an issue that's been important to you on bringing everyone together in your factories. daniel birnbaum, thank you very

much. the ceo of soda stream here. >> thank you very much. great interview. what else have you got lined up for us today? many more interviews to come. >> yes. on squawk on the street, we'll have the ceo of lululemon. you have heard commentary from department stores and retailers about soft holiday spending, not from lululemon. yesterday they came out to icr and narrowed their profit and revenue guidance towards the top end. what they're doing is working at a time when nike and under armour stock down double digits last year, lululemon soared. we will also have the fast food roundtable in red ssquawk alley. we'll talk about what they expect on wage inflation, corporate tax rates, consumer spending after the election. you can imagine there's a change. is there still a retail recession? all of those topics in focus

later. >> sara, look forward to that on cnbc. futures pointing to a slightly positive open. that's it for "worldwide exchange." "squawk box" is up next. ir

stocking pulling away from dow 20,000 yesterday, but u.s. equity futures pointing to a rebound today on wall street. and we're in the countdown to the inauguration. top trump advisors met with speaker ryan to talk taxes and confirmation hearings are kicking off today. a full political rundown straight ahead. what's in a name? yahoo will become altaba, altaba. if you have to ask, is it a good name? i don't know. altaba. after it spins off its core internet business. a nice ring to it, doesn't it? we'll tell you how they came up with it.

that should be good. it's tuesday january 10, 2017. "squawk box" begins now. ♪ ♪ shot through the heart and you're too blame, darling you give love a bad name ♪ live from new york where business never sleeps, this is "squawk box." ♪ >> good morning welcome to "squawk box" on cnbc live from the nasdaq market site in times square. let's check u.s. equity futures at this hour. we were further away from dow 20,000 yesterday, but futures indicating a slightly higher open with the dow up 24 1/2, nasdaq looking to add about 4, s&p looking to add 2.5 points. in asia, china producer prices rose to a five-year high in december. the hang seng rising by 0.8%. shanghai down by 0.3%. in europe, this is the