good morning. trump meets the media, the global markets in wait and see mode. a new call, jeffrey gundlach said he expects markets to reverse post election moves. and president obama good-bye. he says farewell to the nation in front of a hometown crowd of 20,000 people. it's wednesday, january 11, 2017, "worldwide exchange" begins right now. ♪ good morning.

welcome back to "worldwide exchange." i'm wilfred frost along with seema mody this morning in for sara today. good morning. >> good morning. >> let's check in on the global markets. futures after a day which continued the very recent trend of the nasdaq leading the pack of these three main indices. yesterday the nasdaq gained around about 0.3, 0.4%. s&p was flat, the dow declined fractionally. today all three expected to post gains if the futures are anything to go by. not big gains. dow higher by 36 points, s&p by 1. nasdaq by 5.5 points. ten-year treasury note continued the trend in terms of yields being lower than where they have been. 2.387 the yield on the ten-year. we were at 2.42 at close on friday. >> asian equities in focus today. mildly higher today as we look at what bank of japan governor

kuroda has been saying. he and shinzo abe met today to discuss the economy. they did not have detailed talks about president-elect trump, but he told abe he felt the u.s. economy is growing steadily. kuroda said he received no request from the prime minister on economic policy. let's get to uk construction output rising 1.5%. below consensus. markets are mainly green across europe. yesterday the ftse 1 00 led the pack, for its 11th positive session in a row. up 0.2% this morning. gaining more in the last couple of minutes because of that slightly softer than expected uk construction data. oil prices did decline about 2%

yesterday. they're up 0.8% today. still nicely above that $50 a barrel level at 51.2. the dollar, as i mentioned, has seen strength against the pound once again today. the move accentuated by weaker uk data. 1.2113. getting close to a record six-month low -- four-month low. let's have a look at the other currencies. a bit of dollar strength against the yen. the euro a bit softer. bitcoin 4% decline this morning. gold prices to round things off, it was flat yesterday. up slightly today. 0.2%. in terms of the currencies, want to pick up a point on kitt jukes story. it's a huge amount of d

differentiation at the start of 2017. it's not as simple to think will the dollar strengthen because of the fed or weaken. you have the likes of the turkish lira, mexican peso, sterling. there's a lot of differentiation. when you think about the u.s., you have to think about it on a trade weighted basis. of those three that are the weakest, all have political question marks hovering around them. there's all sorts of different political factors to price into it. >> yesterday turkey was named the most vulnerable emerging market. its currency hits new lows day by day so far this year. it's the worst performing currency globally, down about 5%. a lot of that having do with political instability there. >> the uk and mexican economies have their own political question marks. >> turning to today's agenda on

wall street, a light day for earnings and economic data. the mortgage bankers association releases the mortgage applications at 7:00 a.m. kb home reports earnings after the closing bell. the bond king is issuing a warning. jeff gundlach predicts trouble for equity markets if the yield on the u.s. ten-year treasury note moves above 3%. in his first investor webcast, he cautioned after the recent run up in u.s. stocks. investors should look to peel off exposure to equities as he expects stocks to reverse, despite the post election rally. he said the bar was so low on trump to the point people were expecting markets would go down 80% and global depression, and now this guy is the "wizard of oz," is expectations are high.

there's no magic here. gundlach cited two major risks, shrinking global trade and the president-elect's temperament. he sees the ten-year not going below 2% before ending up again. and he sees gdp breaking out of the 2% range. he was skeptical what to do if the economy hits 3%, but eventually the trend has been going lower. >> another bond investor, bill gross, saying if the ten-year hits 2.6% we'll be in a bear market for the bond market, which is interesting. just four months ago we were talking about a bull market when it comes to the bond market. we'll have to see what happens to that. so many people say the equity one, this at some point, the markets will have to take a breather. we have not seen signs of that especially with the nasdaq hitting new record highs. >> there's been a lot of rotation at the start of this year and the couple weeks of

last year. banks pulling back, technology taking a charge. the dow has taken a breather. we've seen a rotation among indices and sectors. we're not pushing new lihighs or the last month gently. >> next week, big banks reporting. i'll be curious to see if they can confirm the rally or if that's when people start to -- >> the first ones this week on friday. today is the day donald trump will give his first news conference as president-elect. it's scheduled for 11:00 a.m. eastern at trump tower in new york. you can watch the conference here on cnbc at 11:00 a.m. eastern. the mexican peso has tumbled to historic lows ahead of the conference. traders avoiding exposure to the currency because of concerns that the president-elect could take measures that would weigh on mexico's economy. specifically on the trade front. also keep an eye on the chinese yuan amid questions about china,

trade. and another question there has been is whether the president-elect will label china as a currency manipulator. keep in mind, the exact opposite of what we've seen from the chinese central bank this year. they stepped in. they've been defending the currency, that's resulted in an appreciation of the chinese yuan. >> i wrote an article yesterday about that, it was about the three ways beijing could retaliate against trump's trade policies, one way is through the currency, using their currency as a weapon. because we know how much of an impact it can have on global stocks and volatility. >> in terms of trying to weaken it quicker? >> exactly. that could be one way to retaliate to trade protectionism. >> at the moment they're trying to do that in a slower fashion to stem capital outflows. they'll have their own problems if they try do that domestically. >> true. but they know the impacts globally, and that's one way people say they could use the

currency as a way to respond to any type of trade protection. >> i'll have a read of it because the risk of retaliation for the things like we've been seeing recently is very, very high. we saw it in toyota, him tweeting about domestic companies, they had to pay lip service. with toyota, there was a reaction from the japanese government. certainly something to watch. >> the other big political story, reports suggest an intelligence memo contains damaging allegations against president-elect trump's relations with russians. briefings included information that circulated among his points and was passed to u.s. intelligence agencies. there are is a li the information has not been verified by the u.s. agencies. there is a claim which says russia has material had could be used to blackmail trump. trump responded by saying fake news, a total political witch hunt. new this morning, the kremlin

says it does not have compromising material on donald trump adding that the report is a fabrication and an attempt to damage u.s./russian relations. it's not been substantiated yet. so i think we should move on. it's had a lot of attention overnight. until substantiated, it should be ignored. too quick at the moment for everyone to jump on rumors. >> today with the tillerson hearing, that will likely be a topic discussed. and at the press conference at 11:00, i'm sure he will be asked. also on the political agenda more key cabinet hearings. the spotlight will be on trump's choice for secretary of state, former exxonmobil ceo, rex tillerson. he'll testified a 9:15 eastern. jeff sessions will return for day two of his hearings. cia director nominee mike pompeo and transportation secretary

elaine chao will also testify. tillerson is sure to be top of the agenda when he heads to capitol hill. he will call for a clear-eyed assessment of the united states relationship with russia. he will say russia today poses a danger but it's not unpredictable in advancing its own interests. and exploring areas of collaboration with russia is based on common interests. president obama addressed the nation for the final time as president in an emotional speech in his hometown of click go last night. he touched a wide range of topics, revisiting his achievements and challenges. >> if i would have told you eight years ago, that america would reverse a great recession, reboot our auto industry, and unleash the longest stretch of job creation in our history, if i told you we would open up a new chapter with

the cuban people, shut down iran's nuclear weapons program without firing a shot, take out the mastermind of 9/11, if i had told that you we would win marriage equality and secure the right to health insurance for another 0 million of our fellow citizens, if i told y'all that, you might have said our sights were set a little too high. >> more of that coming out throughout the show. still to come, this morning's stocks to watch. first as we head to break, a look at yesterday's top dow gainers. overall day that was down for the dow. the dow down 0.16%. gosh, i shouldn't do that to myself. there were some gainers.

caterpillar tops the list. we're back in a couple minutes.

welcome back to "worldwide exchange." if you're just getting up, let's get you up to speed on the market action. the asian session was broadly positive. hong kong and japan in positive territory. shanghai did decline by 0.8%. european trade picked up in the last hour or so.

it is now broadly positive. yesterday fractionally positive with the ftse 100 the leader. another record close. looks set for its 12th straight day of gains. the pound is softer, again down about a half percent against the u.s. dollar today because of trade deficit data in particular that has led the pound down another half percent after what has already been a very soft start to 2017 for the british pound. let's look at what this means for u.s. futures. yesterday we continued that haven't trend of the nasdaq leading among these three and the dow trailing, the s&p was flat. the nasdaq up about 0.3%. all three up fractionally this morning. >> in corporate news, shares of volkswagen are trading higher this morning as the company nears a settlement with the u.s. regulators over its emissions cheating scandal. the auto maker confirming

yesterday it reached a draft settlement with the justice department and final approval could come today. volkswagen would plead guilty to criminal misconduct and pay a $4.3 billion fine. that would raise the total costses the company set aside for the scandal to above $19 billion. vw would face oversight from an independent monitor for three years. shares are higher by 2.5% in today's trade. authorities say a member of samsung's founding family will be questioned as a suspect in the massive scandal that led to the impeachment of south korea's president. samsung's vice chairman will be summoned tomorrow by investigators who are investigating whether he bribed a jailed confident to get park favors. those include a controversial merger in 2015 that was proposed by samsung share holders. lee and his family were the biggest beneficiaries of the

deal. samsung has had a fantastic last 12 months. tesla has hired a top software engineer from apple to oversee its autopilot self-driving efforts. chris latner who worked at apple for a decade is best known for introducing swift, a programming language making it easier for developers to write apps for ios. tesla's autopilot feature had been run on an interim basis by the software chief at spacex. shares of both stocks in premarket are down right now. stocks to watch today, ford confirms it will be less profitability this year than in 2016. the company is on track to report 10.2 billion in pretax adjusted prompt. ford will be pressured this year as it increases spending ining emerging opportunities. yunited airlining is raisin

its fourth quarter forecasts, and boeing will conduct a round of layoffs of engineers as it seeks to cut costs. the cuts include dozens of jobs eligible for voluntary layoffs in california, south carolina and washington state. more stocks to watch, veeco instruments expects fourth quarter earnings to come in above analyst forecasts. the technology used to make chips and l.e.d.s sees revenues in line with estimates. and parsley energy is buying assets in the permian basin. it has a secondary offering of 20 million shares. the stock is down 4.8%. shares of village road show fell nearly 3% in australia after 20 people at a theme park owned by the company were trapped on a roller coaster for almost two hours.

they were seated in chairs suspended from the track when the ride became stuck. most were easily rescued, four people could only be reached by a ladder platform. no one was injured that is my biggest fear. i love theme parks, i love roller coasters, but being stuck up there for two hours -- that can't be fun. >> terrifying. at least no injuries. there's been some more severe tragedies of this nature. >> good point. still to come, the top political stories including donald trump's first news conference as president-elect. >> as we head to break, today's national forecast from the weather channel. >> we have some wet weather across parts of the northeast early this morning. that should move out by the afternoon hours. showers across the ohio river valley down into the tennessee river valley. out west, dealing with a deluge across california, another one to two inches on top of what they already had today. travel delays expected in los

angeles as well as san francisco. blustery conditions along the front range in colorado. and warm air across much of the south. our temperatures here well above average. a few records could be broken across parts of texas. these are the forecast high temperatures, back into the 70s. a lot of snow melt across the deep south and in the northeast as well. we'll have to keep an eye on the potential for flooding over the next couple of days.

happy wednesday. welcome back to "worldwide exchange." futures pointing to a higher open. s&p 500 fractionally higher. dow jones up 25 points. the nasdaq which hit a record high yesterday extending ets gains in the futures market, also calling for a higher open. keep a close eye on the biotech sector which led to the nasdaq's outperformance in yesterday's trade. look at currencies. in the turkish lira, it continues to hit new record lows against the u.s. dollar on political instability and the central bank making a move today. but that wasn't enough to shed off those fears around the state of its economy. the turkish lira down about 0.3%. the euro/dollar trade in focus at 1.05. analysts still calling for the euro to trade in parity with the u.s. dollar. the pound at a ten-week low

against the dollar. the pound is lower, that's helping the ftse 100 move higher in today's trade. let's move on to political news. trump's first press conference as president-elect set to start at 11:00 a.m. it's also day two of the confirmation hearings where trump's key nominees will be in the hot seat. tracie potts has more on what to watch. >> reporter: good morning. at that news conference, the latest allegations about russian collecting damaging personal information on the president-elect, that is likely to come up, even though this was called to focus on how he'll divest from his companies. as for the confirmation hearings, rex tillerson and elaine chao coming up today. and all of this is happening in washington on a day when president obama returns after giving his final remarks last night in chicago.

struggling to begin amid wild applause -- >> i can't do that. >> reporter: president obama says good-bye to 18,000 supporters and the nation. >> america is a better, stronger place than it was when we started. >> reporter: he hit on major accomplishments, the fim and auto bailouts, healthcare, killing osama bin laden. he talked about immigration, climate change, opportunity and race. >> for if we don't create opportunity for all people, the disaffection and division that has stalled our progress will only sharpen in years to come. >> reporter: he urged action. >> if you're disappointed by your elected officials, grab a clip clipboard, get some signatures and run for office yourself. >> reporter: he got choked up talking about his staff, vice president biden and the first lady. >> you made me crowd and you

made the country proud. >> reporter: america's first african-american president. >> i'm asking you to believe, not in my ability to bring about change but in yours. yes, we can. yes, we did. yes, we can. thank you. god bless you. >> reporter: ending his term the way he began. >> of course now washington prepares for a very different type of change with the onset of the trump presidency. >> that press conference, all eyes will be on today. thank you very much. coming up, the top stories and a round-up of the global markets. stay tuned. you're watching "worldwide exchange" here on cnbc.

good morning. washington and wall street today's news conference by president-elect trump tops the agenda. we'll talk politics, trade, the economy and more with fred neumann from hsbc. and joebama, why this hashtag is trending this morning. you're watching "worldwide exchange" on cnbc. good morning. warm welcome to "worldwide exchange" on cnbc, i'm wilfred frost along with seema mody

today. >> good to be here. >> yesterday the nasdaq once again led the way and hit a fresh all-time high. it was up around about 0.3%, 0.4%. the s&p was flat. the dow declined by a slight margin. 0.16%. this morning we are expecting positive moves across all the indices, but slight, around 0.1%. 30 points for the dow. european trade looking positive today. it was positive yesterday. similarly for the most part positive today. the ftse 100 is on track for its 12th straight day of gains and another record all-time close. only up 0.2%. largely that small gain is off the back of a further decline in the british pound. down a half percent following disappointing trade deficit data. asian trade was broadly positive, china declined 0. %.

the rest of the region generally eking out gains. we will talk to fred neumann in a couple minutes. oil, wti crude trading at $51.29. ice brent crude, the more international gauge at $54.17, up about 1%. there were reports this morning of saudi supply cuts to asia, perhaps that's something that commodity traders are digesting. nat gas slightly lower. if you're looking for a big mover in the commodity space, it's palladium up 12% on the reflation trade. interesting commodity to watch. switching focus to bonds, ten-year note, slightly moving higher here. yield at 2.39%. investors digesting those comments from jeffrey gundlach overnight. also bill gross, who says that 2.6%, that's the yield to watch on the ten-year treasury note. he said that will indicate a

bear market in the bond pits. the dollar has been rising against a certain number of currencies. the yen and the u.s. dollar higher by around half percent against the yen. the euro at 1.05 against the u.s. dollar. the pound has been stealing the spotlight at a ten-week low. uk industrial output rising, the trade deficit widening in the uk. that has been propelling stocks in the uk higher. the ftse 100 nearing another record. >> indeed. >> turkish lira has been deprecating against the u.s. dollar. the current account deficit in turkey widening, not good news after the most recent report on inflation showing it's been moving higher than expected. now questions around whether turkey's central bank should step in and raise rates but then confronted with the impact that will have on growth. >> the turkish lira one of the

worst performers. >> the worst performing global currency so far in 2017. already down 5%. >> followed by the british pound in terms of the laggards of the year. let's round things up with the gold price, which gained a bit yesterday and this morning is higher by 0.2%. let's get back to markets and discuss in more detail the picture in asia. with us from hong kong, fred neumann from hsbc. good morning to you. thank you very much for joining us. i want to get into the yuan specifically in more detail in a moment. before that, a broader outlook on asia. i feel like the picture in u.s. investors minds is perhaps overly positive on what's happening in asia at the moment because it's so much better than this time last year. but your most recent note says things look resilient but looks can be deceiving across asia. how -- gauge for us how positive or negative data is across the

region at the moment. >> well, we've seen a bit of an uptick in data here. we saw exports perform better late last year. some of the pmis came up, better chinese inflation data. but there are two big headwinds for asia. one is that exports, if you look closely, are not doing as well. we're barely back to levels we saw in 2014. there's rising risk of protectionism. the other thing is a stronger dollar and higher u.s. interest rates which will hurt in a region that's so credit dependent. that will exert a break this year on growth. it won't lead to a recession, but don't bet on accelerating growth across asia for 2017. >> that stronger dollar you mentioned has particular issues for the chinese who intend to peg their currency. there's been pressure because of the rising dollar and their ability to keep that peg flat. gauge for us the pressures on

the chinese currency at the moment and how big a issue it is compared to last year where it derailed sentiment significantly. >> even though the currency has deprecated last year, it seems the authorities have more control over the process this time around. they played offense in the last several months, and they reinforced some controls. they still have enough foreign exchange reserves. and the draw down on fx reserves is not going to make the regime unsustainable soon. but the costs their bearing with intervention is really rising interest rates on shore. they can't shield themselves from rising global interest rates, they have to allow some rise in interest rates domestically. that will hurt local growth. it won't lead to collapse in growth, but higher interest rates in china are also the result of higher interest rates in the u.s. >> fred, if we switch focus to

japan, the weakness in the japanese yen, that's helped propel japanese stocks higher. how much room does that give the central bank of japan in 2017 to continue to mend the economy? >> it really got the boj out of a bind. a few months ago, everybody thought the boj was out of bullets, they couldn't contain the depreciation of the yen. then came the federal reserve, raised interest rates, and the wren is weaker and the boj can sit on its hands for the time being. they don't have to move. the ball is in the court of the government now, delivering fiscal stimulus, they need to make sure they push ahead with reforms to get sustained growth. the boj has done everything it can, really the government has to deliver. here there's still some question marks, will abe press ahead, prime minister abe, with the reforms necessary to drive up the potential growth rate of

gdp. so far we have not seen much by way of reforms in japan. >> fred, overall, just to sum things up, do you think u.s. equity markets are a little complacent about whether 2017 could be a negative year for asia, which could help or hinder u.s. equities? >> it feels a little bit like that. now, some headlines always exaggerate things. we have structural issues here. we won't see an acceleration growth. so maybe a bit of investor exuberance here with regards to growth potential. also when you read headlines, it says china is reflating. profit margins are going up. remember that china still has enormous excess capacity they need to work through. china will not deliver a growth impulse for the rest of the world soon. so a cooler assessment of asia's

growth potential is needed. >> fred, great stuff. switching attention to corporate news. mylan's ceo said her company has learned from the epipen. landon dowdy has more on what the executive hopes to see in the new trump administration. >> good morning. we heard from mylan's ceo, heather bresch yesterday when she spoke to meg tirrell, bresch saying that the company learned from the controversy over price hikes for its epipen product and she's optimistic on trump's view of her actions. last summer the pharmaceutical giant hiked prices of its anti-allergy device more than five times since 2008, leaving some consumers paying more than $600 for a pack of two. bresch stunned by the criticism, and mylan expanded its

assistance program for payment purchases and introduced a generic version of epipen which sells for $300. when asked if she's afraid of becoming trump's next critic, this is what she said -- >> we took decisive action on epipen. he appears to like decisive, immediate action. i would hope that's how he would look at this epipen -- what the epipen situation was, and the conversation it started. >> shares of mylan are down more than 20% in the past year. back over to you. >> thank you very much for that. time for our top trending stories. joebama dominating social media. president obama's farewell speech last night, after thanking his wife, obama turned his attention to vice president joe biden. the crowd rose to their feet at the mention of biden's name. the vice president smiling back at the president.

take a look. >> you were the first decision i made as a nominee, and it was the best. not just because you have been a great vice president, but because in the bargain i gained a brother. we love you and jill like family and your friendship has been one of the great joys of our lives. >> #joebama. what a great bromance. >> you need a hashtag for wex. >> you put me on the spot. >> sara and wilf. >> silf. we have to think of a better one. i think of that address, in terms of the lighter hearted topics, his thanks to his wife and children was even more emotional than that. the problem, of course, for the outgoing president is how much we're focused on the

president-elect's speech today. >> jhasbro is asking the internt to vote for a new lineup of monopoly tokens. voters can choose from current tokens as well as a slew of new options. more than 50 new options are available including a wireless phone, computer, kissy face emoji and a sports car. >> i don't like this. >> voting is open until january 31st. >> this is the first time i said kissy face on business news channel. >> plenty more times for that. i'm not a fan of this i'm a traditionalist when it comes to monopoly, i always win, and i'm always the dog. as long as that piece remains, i'll survive. are they going to change the places as well? >> who knows. >> always play on the traditional london board. i know you can get boards -- >> never played that. the london board? >> like mayfair --

>> maybe i did have that. i don't remember honestly. >> any way -- >> we'll stick with games, pokemon also in focus. bass news for pokemon in china. the state censors saying it would not license the game until potential security risks had been evaluated. the ban was prompted by what china calls a high level of responsibility to national security and the safety of peoples lives. there was that period around summer of 2016 when pokemon was the hot game. people were playing it everywhere. i remember when i was in greece, people were on the streets there. it was amazing. it seems like that that excitement has calmed down a bit. there are some risks associated with it. >> it is still amusing when you see someone playing it. and just on the street. i never played it. i don't want to be critical. i'm sure it's good fun. but it's an amazing thing to watch from the outside. more on "worldwide exchange" coming up. our must-reads, first a look at

trading at this hour in europe. we're broadly higher here. stay tuned, you're watching "worldwide exchange."

welcome back. we've been discussing emojis in the break. we're not allowed to continue that conversation. we have to move on to our must-read stories. my pick is titled the economic

consequences of barack obama's presidency. quite a few discussions in the ft by different economists on different areas of his speech. this is by martin wolf. in all, given the starting point, the performance of the economy has been remarkable. in the third quarter of 2016, the economy was 11.5% bigger than at its pre-crisis peak and gross domestic product per head was 4% above the pre-crisis peak. is he giving a positive and liberal congratulations to obama's economic legacy, though he has a criticism part as well. within that he admits the u.s. economic outcomes have become exceptionally unequal. so pretty positive overall onam

the economy. a good account of his legacy on the economic front. also some good accounts in the ft today on his foreign policy. >> sets the stage for trump to enter in. especially with the most recent jobs report and the unemployment rate under obama's administration, the progress we've seen and the potential for pushing forward. mine is russia's questions for rex tillerson. with russia relations at a possible turning point, the confirmation hearings of rex tillerson need to go beyond superficialities and wave at the true nature of the putin regime. he goes on to say that the former exxonmobil ceo demonstrates an understanding of some of the main issues including the 2015 assassination of the opposition leader, the

2013 boston marathon bombings and 1999 russian apartment bombings. so he's saying that senators should question hill m on any issues we've had with the russians. this will likely ab colbe a col hearing. and maybe are we expecting too much from the head of the state department in terms of what he knows prior to going into this potential role? >> as you say, either way, it will be a juicy hearing. perhaps more than any of the other hearings to come. not least because of new allegations overnight because of relations between trump and russia, unsubstantiated allegations. still to come on "worldwide exchange," investors waiting to hear from president-elect trump. we'll talk about that and what to expect in terms of the market with doug cote. back in a couple minutes. ♪

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futures calling for a positive open. the dow up 26 points. joining us now to discuss the market action, doug cofe from voya investment management. good morning to you. the nasdaq hitting a new record high. what do you make of this outperformance that we're seeing in the tech sector? can it continue? >> it sure can. we're talking about the new path, the growth in reflation trade. and look at the policies. we're going from higher government, higher taxes, higher regulation, to a belief in capitalism, to lower government, lower taxes, lower taxation. what that will do is shift economic growth yawp wards.

you will see a rotation out of defensive sectors into cyclical sectors. and what i believe is that it will benefit business investment, the consumer, manufacturing. we're seeing that not only in the u.s. but it's starting to catch fire around the world. >> doug, the fact that we are seeing rotation now, the likes of tech playing catch up and also healthcare playing catch up while we've seen profit taking in things like banks, does that suggest the easy money, early mopping from the trump reflation trade has been made and it will be a much more bumpy and volatile ride from here? i don't think it's over at all. i think it hasn't even started. you will see a lot of incentive back into the system. i would say just lower taxes -- lower taxes creates incentive for capitalism, for investment, for productivity and what you will see is not covered that much is small business has the

tax credit or benefits from the lower tax regime. you are going to see small business, which is the biggest creator of jobs in america really prosper under this new tax code. even though it has not been implemented yet, just the belief that this president is more pro growth, pro private capitalism is getting animal spirits up. i don't think it's started yet. you have a lot of retail cash on the sidelines, a lot of defensive positioning. this has not even got going yet. but i believe it will be volatile. we have tail risk out there. most importantly the dollar, trumponomics, excuse risk, how fast does he get the policies implemented. >> we hear from trump at 11:00 a.m. eastern. does it make for sense to focus on domestic stocks and scale back on exposure to the

international names, give than we could hear more about these protectionist trade policies from the president-elect? >> absolutely not. we're having a rotation. we're seeing already this year emerging markets up double the s&p 500, international efa stocks ruare up higher than the s&p 500. i prefer a rotation out of cyclical out of the sector level and in the asset class, too. mid caps, small caps, global reits and international emerging markets will really get a bump. it's shifting global economic growth upwards in so s and some asset classes have been left behind. >> sounds like you're exceptional bullish for the year what you are watching out for in terms of risks?

>> i would say, so, global trade. i don't believe that trump is as protectionist as everyone says. if you look at congress, half of congress is very free trade. some of his picks, rex tillerson, as you mentioned before, wilbur ross, they're very free trade and i expect that's one risk that -- >> wilbur ross is not at all. >> well, wilbur ross, there's talk about that. if you look, they're more for fair trade versus some of the trade deals that we've gone through. i don't buy that they're going to be protectionists raising tariffs. that would shoot themselves in the foot. i think trump is trying to get in negotiating posture. >> thank you very much for joining us and that optimistic outlook. doug cote. ten seconds left.

i suppose the focus all on the politics today. that's it for "worldwide exchange." "squawk box" comes next.id sharey rode here on the cloud. did not feel like a cloud... that driverless car? i have seen it all. intel's driving...the future! traffic lights, street lamps. business runs on the cloud... and the cloud runs on intel. i wonder what the other 2% runs on...

good morning. trump talks to the media. his first news conference as president-elect is scheduled for 11:00 a.m. eastern. it comes a day after a controversial and unsubstantiated claims that the russians have dirt on him. tiller on the hill. he will begin his confirmation hearings today. and the dow looking to rebound after closing lower yesterday. we'll get you ready for the official kickoff of earnings season on friday. it's wednesday, january 11, davos is next week.

"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. we're live from the nasdaq market site, i'm andrew ross sorkin along with joe kernen and melissa lee who is hanging out the last day before -- can i tease it? becky quick will be back tomorrow morning. >> she's clapping a little too much. a little too enthusiastic. >> we'll see if we want to clap about the u.s. equity futures. right now the dow will open higher by 26 1/2 points. the nasdaq about 5 1/2 points higher. s&p 500 up about a point. here's what's goi