good morning. forget the first 100 days, with less than a week on the job, president trump is getting to work on that u.s./mexico border wall. details straight ahead. and ipo interrupted. cisco snapsdynamics. and corporate earnings reports on focus on the street. it's wednesday, january 25, 201. "worldwide exchange" begins right now.

good morning. welcome to "worldwide exchange." i'm sara eisen, along with michael santoli. we heard the dow was going back up to 20,000, and we called you in. >> i know you have a sense for these things. >> i'm not making a call. we'll get your call in a moment. let's check in on global markets, after record closes for the s&p and the nasdaq, futures look like they're going strong again. global stocks are in rally mode following wall street and dow futures are up 52 points. s&p futures are up 4.5. nasdaq futures are up more than 16 points. the ten-year treasury note yield, higher yields. the trump rally back on track with higher yields, stronger dollar, strong stocks. ten-year yield, 2.48. some selling into bonds and stocks. >> let's look at what's going on in europe. german business morale falling this month.

the ifo business climate i dex h index hitting the lowest level since september. seemed like they were pricing in our gains here. germany up 1%. the story of better economic data in europe remains intact despite the overall trend. we have key data out of asia. japanese exports snapping a 14-month slump. imports fell by a larger than expected 2.6%. exports at 5.6 billion. you can see the trap geez market up 1.4%. weaker yen, strong equities. china with modest gains. as for the broader market picture, oil prices right now, after oil sort of declined last night on the bigger build in supply. there's your oil trade, also lower again. 52.88, down a half percent.

brent down a half percent. 55.15. the u.s. dollar back in stronger mode, at least -- it was yesterday. sort of reversing early this morning. weaker against the yen, 113.57, weaker against the year euro 1. gold declining again a half percent. we wonder is the trump rally back on track now that he's making moves on infrastructure, growth, focusing less on protectionism. it moves day-to-day. >> it does. it's always impossible to say why the market is moving. is it taking its cue from the fact that treasury yields are going up that seems like a prerequisite for stocks going up.

five weeks, you had the pure trump rally, then five weeks of sideways. who knows if it will be that symmetrical. >> notable move in materials, which had to do with the fact that he signed that executive order on the keystone. >> the pure infrastructure stocks were on the move. metals, engineering stocks. >> more to come today. to politics and president trump's first 100 days in office. the president is expected to sign an executive order today to begin paying for the wall on the u.s. mexico border. trump tweeting last night, big day planned on national secure if i tomorrow. among many other things, we will build the wall. trump wants mexico to pay for the wall eventually. he's getting started, busy and fulfilling campaign promises. >> he's going down the list,

checking them off. nobody says you can't sit there for four hours and sign all the executive hours, but he's pacing it out. >> tweeting, signing orders. in other political news, gary cohn's goldman sachs exit package tops $100 million. he left the bank to top president trump's national economics council. cohn received 65 million in cash to cover future potential bonuses, and 45 million of stock that remains locked up or subject to claw back. president trump clearing the way for two controversial pipeline projects that had been rejected by the obama administration. late yesterday trump signing executive orders that will make it easier for transcanada to construct the keystone xl pipeline and to build the final uncompleted portion of the dakota access pipeline. the president said both executive actions were subject to terms and conditions to be

negotiated by the u.s. the stock moved. shares of energy transfer partners and transcanada rose yesterday. among the benefactors of the pipeline news, the ceo, david seton, who spoke yesterday about it on "closing bell." . we don't do anything the way wi did the old way. there's new technologies, new capabilities, and there is the capability existing in the united states to produce that pipe material and other things that would be used in this pipeline, the dakota pipeline or anything like that, it's a matter of retooling the system of the capacities required to actually put that pipe in the ground. >> as for jobs, the ceo says there is likely to be a shortage of workers as the u.s. begins building infrastructure, but he predicts the positions will be filled. >> it's a fascinating angle. in theory, if you have policies that prove effective, it's not as if we are sitting there with

a lot of, you know, blue collar workers ready to get on the move. despite what you think. >> that's what the funny thing -- funny, ironic for the federal reserve that has been pushing congress for the last eight years, as it tries to do everything to stimulate this economy, get inflation going. begging for fiscal policy. now just when the employment situation, the labor market is tightening up shg, employment r down, we get the fiscal stimulus, higher interest rates, inflation. >> the markets are trying to figure out, does that mean we'll run hot on the inflation front. chinese state media reacting to president trump's trade policies and comments. an article warns a trade war between china and the u.s. could harm both companies. it also says numerous countries would be impacted by a trade war. president trump has been encouraging companies across the world to build countries in the

u.s. to increase jobs. samsonite may be up for the challenge. they are founded in denver, colorado but closed the business there 16 years ago for profitability reasons. but the ceo said the brand could soon return to its roots. >> we manufacture luggage globally. we have a lot of manufacturing which is done in europe. we have been expanding manufacturing in europe. we also do some outsourcing in chin china, vote vietnam, other places. today undoubtedly almost 40% of our sales are happening in the u.s. we will not hesitate to look at possibility of manufacturing in the u.s. >> the ceo insists samsonite has

been looking into the move for a while. >> this is the question especially as the big three auto unions were in washington yesterday. they will decrease regulations, trump promises that, make manufacturing more appealing, but can you profitable produce a small car in the u.s. anymore? without tradeoffs on the other size which is eased environmental standards. can the math work is the question. >> can the economics work? if you're a car company you will build an assembly plant that will last 40 years because the president pushes you in that direction? >> and they complaint a lot about currency manipulation, how do you build currency manipulation or define it into a trade agreement. it's like new territory and it's hard. especially if they complain about the japanese yen. qe is a lot of what we did here. i was watching "mad money" yesterday, jim was saying at some point the car companies, gm and ford may be at a

disadvantage if their hands are tied and they're forced to do manufacturing here. >> the question is forced would not be good for them. >> prodded, threatened. >> cajoled. south carolina governor nikki haley has been confirmed as ambassador to the united nations. the senate had 96 senator force her appointment and 4 opposed. she vowed to fight for human rights and to support international institutions. the president narrowed down his choice to fill the supreme court vacancy to three judges now. reports say the leading contenders, william pryor, neil gorish and thomas hardman, all three sit on federal appeals courts. trump will make his decision in the coming days. now to some corporate deal news, cisco systems is buying appdynamics for $3.7 billion. appdynamics was gearing up to be the first tech ipo of the year.

it was supposed to price tonight with $2 billion. cisco agreeing to pay about $26 a share, well above the price range of $10 to $12 per share. appdynamics makes software to monitor the performance of applications, don't miss chuck robbins on squawk on the street today at 9:00 a.m. alcoa reporting better than fourth quarter revenue thanks to a rise in aluminum prices. alcoa expects 4% growth in global demand even as the market are mains oversupplied. it sees strong demand from china driven by packaging and transportation sectors. the initial gut reaction was lower stock price. it looks like things are moving in the opposite direction. >> the stock is up like 0% year to date. it's been on a huge run. >> good quarter. >> looks like good enough.

at least after this split. we don't know what to compare it to. but seems like the street liked it. the gap says the head of banana republic is leaving as the retailer tries to stem declining sales. andy owen is a 25-year veteran of the company. art peck will oversee banana republic while the search is underway for a replacement. banana republic sales dropped more than 7% in december. sales at gap and old navy both rose. earnings once again dominate the agenda. no major economics expected, before the open look for results from abbott labs, boeing, united technologies. after the close, numbers from at&t, ebay, qualcomm and las vegas sands. coming up, this morning's stocks to watch. first, as we head to break, check out european equities at this hour. stay tuned, you're watching "worldwide exchange." runs on intel? that ride share? you actually rode here on the cloud.

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welcome back to "worldwide exchange." let's get you up to speed on the market action. u.s. equity futures set to build on yesterday's gains. the dow jones industrial closed not at a record, but at about 88 points away from the 20,000 mark. so looking for about a quarter percent gain across the board. we'll look at the dollar, up yesterday. it's backing off a little bit today. here you go. not too much. not dramatic, but it is usually

strong dollar, strong stocks. we'll see if that pattern holds today. to corporate news, wells fargo will eliminate its policy of giving branches advance notice before visits by internal inspectors, that after the "wall street journal" reported yesterday on the advanced notice describing how it gave employees time to cover up problematic sales practices. the move is part of the internal review following charges that it created consumer accounts without customer authorization. stocks to watch today, bob evans farms is selling its restaurants unit to golden gate capital for $565 million including debt. the company says it plans to focus on its refrigerated food business. seagate beating the street and forecasting current quarter revenue above estimates. the hard disc driver gaining as by boost from its cloud based storage products. up 11% after hours. and this morning, cree releasing

second quarter earnings above expectations. up 3.6% after that report. a few other names, c. c.a. technologies posting earnings. the software company is reducing its outlook for the full year. novartis reporting quarterly results that missed expectations because the company is also announcing a $5 billion buyback and may sprin off iin off its e network. once we're out from the patent expiration, that's why we announced the buyback today. we're bullish on the future of the company and the growth trajectory we'll see in 2018. nofrnlg. >> novartis will focus on immune boosting medicines.

and intuitive surgical beating the street. but saying research and development costs will increase. intuitive announcing a $2 billion stock buyback. the stock higher here in the premarket. sort of a volatile one to watch. capital one's fourth quarter profit falling 14%, missing forecasts. despite higher growth. the lender set aside more provision for loan losses. in credit cards, discover financial's fourth quarter profit rose 13%. total loans rose 7%. the company said it booked more new customers in 2016 than in any year since the financial crisis. striker's fourth quarter adjusted results beat forecasts. the medal devicemaker expects sales and profits to improve this year. though at a slower pace than in 2016. and texas instruments beat estimates helped by strong demand for chips in the auto and industrial sector. forecasting first quarter profit

and revenue babove expectati expectations. >> as we head to break, here's the national weather forecast from jen carfagno. >> good wednesday to you. we have our next system, our snowstorm continuing to dump snow from iowa, minnesota, into wisconsin. already about eight inches in iowa. the nor'easter is out of here. left with sunshine, above average temperatures. behind it looking good in new york city. we hehis front that will cross through the ohio valley and tennessee valley. it won't bring a lot of rain, a couple showers, maybe a rumble of thunder. behind it, a big temperature change. temperatures going to highs in the 20s and 30s. that will spread through the midwest. before it gets there, temperatures above average. another day in the 70s and 80s from the southeast into florida. that's your coast to coast forecast, i'm jen carfagno. "worldwide exchange" continues

after this.

welcome back to "worldwide exchange." good morning. let's get you up to speed on the market action. after record closes for the s&p and the nasdaq yesterday, the strength continues. here's your wall street setup. dow futures up 51 points, zap up 4. nasdaq up 17. the dow closed 80 points away from that elusive 20,000 level. will today be the day? we're on watch again. as for the ten-year treasury

note yield, a lot of signals out of the bond market lately. selloffs pushing yields higher. the dollar is weaker, something to watch this morning. ten-year yield, 2.48. not at the highs, but marching back up. strong in europe across the continent as far as the early action in stocks. the global market of stocks is now at a 19-month high. the strength in the u.s. market is translating overseas. you've seen better data, especially out of that manufacturing sector in europe and japan. of course the u.s. market, the trump trade translating across the world. the german dax up 1.2%. let's check on the dollar versus the mexican peso. no economic reports today, but trump is expected to sign more executive orders. today the focus is on the u.s. mexico border wall. what you're seeing is the mexican peso declining. strong dollar, weak mexican peso. that's the trade. this is a currency hammered.

down about 20% over the last year on this idea that mexico's economy will get hurt by america first policies and the trump bashing of mexico stealing our jobs and making manufacturing back over the border. watch that pair in focus today. >> president trump moving forward with one of the central and most controversial promises of his campaign, building that border wall. tracie potts joins us now from washington with the details. >> he insisted over and over that mexico would pay for it. then it became a reimbursement now american taxpayers are going to have to front that money, that process starts today as he signs off on shifting some federal funds to get this started. >> we will build our own pipeline. >> reporter: now he wants to build on his campaign declaring on twitter that today will focus on national security and we will build the wall. president trump heads to the department of homeland security this afternoon to sign what's

expected to be several executive orders on borders and immigration, including building a wall with mexico. the white house chief of staff said he will hold off on deporting dreamers, children brought to this country illegally. >> for today, i still have protection from deportation. today i still have a work permit. but we know president trump will sign this later on in the week. >> mr. trump insists that 3 million undocumented voted in the election. >> i would urge the president to knock this off. this will erode his ability to govern this country. >> reporter: democrats want to work on the president on infrastructure projects to create jobs. >> we challenge him to join us even if his republican colleagues are not for it. >> reporter: the president also at odds with the chicago police

department throughout the campaign. he talked about the murder rate and the number of shootings in chicago. tweeting some numbers that the chicago police department now says are inflated. >> on the infrastructure question, so key to some of this market's rally, are the republicans on board with trump's infrastructure plans or is this one going to come through democratic support? >> well, it's interesting. the issue becomes merging their two ideas, which infrastructure plans do the democrats want to fund and which ones does the president want to do? republicans in the past opposed some infrastructure projects proposed by democrats. the bottom line is getting even on the same page. does everyone want to create jobs through infrastructure projects? yes, how much and which projects is the issue. >> thank you very much. tracie potts in washington. after the republicans spent last eight years fighting infrastructure. >> the ironies abound. as democrats now figure out how

to block nominees, too we'll see if it works both ways. to sports, losing to lebron and the cavaliers in the nba finals last year has not hurt the golden state warriors popularity. the warriors are still the top sellers of merchandise in stores based on data from october to december, followed by the cavs, lakers, bulls and knicks. amazing the knicks are still there. steph curry still edging out lebron for the best selling jersey. kevin durant and klay thompson also in the top 15. >> steph curry, number one. i'm not surprised. >> you could argue the peak in silicon valley all happened with curry mania. >> they have t-shirts that say make the valley great again. make him president. >> they know they points is more than two. that was their innovation. coming up, a round up of the global markets, which are higher this morning along with u.s.

futures. stay tuned, you're watching cnbc.

good morning. earnings parade. another day, another round of tests for corporate america and the markets. >> dow 20,000, the blue chips make another run at that level. and the top political news, president trump preparing to sign another executive order. this one on the u.s./mexico border wall. it's wednesday, january 25,

2017, and you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen along with mike santoli in for wilfred frost today. >> good morning. >> we said dow 20,000 a few times. >> it's been a while. you never know. 88 points. >> we got within 50 yesterday. >> just about 50. yes. at the highs, backed off towards the close. familiar pattern. >> looks strong again this morning. let's check in on the global markets. s&p 500 and the nasdaq closed at record highs. s&p futures up five. dow futures up 55. nasdaq futures are up about 18 points. as for the early action in europe, also you're seeing green across the screen, particularly in germany. the german dax up 1.2%, even though german business sentiment, efo index did decline. not seeing the trump effect yet.

it is strong across the board. as for asia overnight, also some green arrows. the nikkei closed higher by 1.4%. shanghai comp closing up 0.2%. hong kong continues to outperform, up 0.4%. the broader markets, oil was backing off a little bit. it's been stuck in this range. wti, crude in that low to mid 50s range. natural gas backing off high levels. the ten-year note has been kind of one of the lead markets you could argue. the high was december 13th or 12th at 2.62. backed off from there. started to resume its rise. seems like that reflation trade came back with it. looking at the dollar, we have a little bit of softness after yesterday's gains. so you see it there. euro slightly stronger against

the dollar. not a strong move yet this morning but cooling off after yesterday's pop. gold has also been on the defensive here this morning down two-thirds of a percent. >> earnings will dominate today's agenda. no major economic reports expected. before the open look for results from abbott labs, boeing, yew nig united technologies. after the close, at&t, ebay, qualcomm, las vegas sans. some dow components yesterday were disappointing. >> five reported, only dupont to the upside. you had a sell-on effect with verizon, 3m, johnson & johnson, not dramatic but it seems as if the market priced in a pretty good earnings picture. the guidance has been unenthusiastic, not because bad things are coming, but

management wants to be more conservative. >> wait and see approach. and the question is do earnings matter? the multiples have run up so high, and it feels like every time trump makes a news conference or comment, that dominates the action. yesterday the turn came after those executive orders were getting signed on keystone, it shifted to fiscal, stimulus. >> though sectors geared towards building stuff were leading it seems like a general lift with an extra policy kicker. >> the question is what happens next. today the u.s./mexico border wall, not really a market mover, but withdrawing from the tpp, it wasn't taken as well. >> no. there's a complexity in that. you will look at these narrow sectors like the gravel stocks,

vulcan materials, martin marietta, you know there's going to be money flowing in that direction. >> one place to look is the currency market for clues with all of the trade tensions building. the mexican peso is weaker ahead of that planned executive order. let's talk with kathy lee. good morning. welcome. >> good morning. >> how much bad news is priced already into the mexican peso? what does that signal about what's ahead for this economy and the relationship with the u.s. >> i think if you look at the recent price action of the mexican peso, pretty much since trump got elected, there's a lot of fear and anxiety that has already been priced in. i think that the policy actions, executive orders that i expect to be taken today will be no surprise. what was surprising is earlier this week the mexican government was swift to say that they had

to start taking defensive measures. i don't know how much of those will actually work. but i think that this is all pointing to the potential for a trade war. this situation, mexico probably loses out more than the u.s. but this is the beginning of more weakness in mexico's economy, more difficulties to sustain any type of growth they can muster up. and likely more weakness for the mexican peso. we also think the u.s. dollar in the long run is going to head higher. that will affect the currency in mexico negatively. in the long run, the path to stronger currencies is always through a weaker one. so the weaker peso could benefit mexico. because we have so much trade, the u.s. has so much trade with mexico and because the possibility of a border tax as well as the wall, that is going to slow positive effects. >> you say the broader outlook is for the dollar to strengthen. it's off of the highs somewhat

what is really going to be the key swing factors in terms of getting the dollar moving again? is it going to be the policy moves? border tax, or just the way the economy goes and the yield differential in the fixed income markets? >> it's going to be all of it. that's why the trajectory of the dollar in my opinion will be upwards. while there's a lot of uncertainty now and people are watching china closely to see if they take retaliatory actions, depending on how aggressive that border tax will be, protectionism as well as border controls is going to be positive for the u.s. economy. everyone has looked at numbers that say 21% border tax, 15% positive for the dollar index. three years is a long period from now. i think, you know, that plus the inflation effect of these taxes will end up driving the u.s.

dollar higher. that does not preclude short-term u.s. dollar weakness. >> one point i would argue with you on, all the signs and policies do point to a stronger u.s. dollar, inflation, higher fed interest rate hikes, infrastructure spending, corporate tax reform except the fact that president trump said the dollar is too strong and that could get in the way of his policies. >> you're absolutely right. i think presidential rhetoric in regards to the currency only has a short-term effect. it doesn't mask what will happen in the underlying economy. i would be buying u.s. dollars now? probably cautiously. i think there's still a lot of uncertainty, we're still watching it. once the dust settles we could see a stronger dollar rally. right now there's a lot of choppy price action. >> dollar stocks continue to r

march hand in hand here? >> i think you will start to see a divergence. we're seeing a divergence in yields as well as the u.s. dollar, which is a stronger relationship. so i think that the divergence will happen. simply because stocks moved up so much. as you said, the stronger dollar is not positive for earnings. >> yesterday they went together. kathy, good to see you. kathy lien of bk asset management. corporate deal news. cisco systems is buying appdynamics for $3.7 billion. appdynamics was gearing up to be the first tech ipo of the year. it was set to premiere tonight with a price of $2 billion. appdynamics makes software to

monitor the performance of applications. don't miss cisco's ceo chuck b robbins on "squawk on the street" this morning. >> i think there's still a reluctance for companies to become public, and also you have these big legacy tech companies like cisco looking for growth stocks that potentially could goose the organic growth. >> investors have given them the benefit of the doubt. stock is up more than 30%. >> cisco. >> it's revived. we'll see. it keeps companies from coming public which is expected to be a big ipo year. anything is better than last year. apple is nearing a deal to manufacture products in india a team of apple executives met with senior government officials

in delhi. this morning apple says it appreciates the open and constructive dialogue. we know apple has been bullish on india. tim cook has mentioned it in the last few conference calls. it's interesting with everything that's going on with the u.s. and china. >> and india requires you to manufacture there. britney spears finally making her snapchat debut. the pop star tweeting -- a little late on snapchat, it's great because it makes you feel pretty. she posted two snap videos, one with a mouse filter and the other with a classic filter. >> i did refresh my memory. she's the oldest millennium. born in 1981. just at the very upper end of the millennium generation. she said her kids got her on snapchat. her kids are about the age of my

kids. >> she's of my time. i feel like i grew up with britneyment. >> the point is we're not -- >> she's late. we're late. the kids are doing it. >> she's late, her kids are late. >> snapchat is still cool with the kids? >> cool enough for britney. >> george orwell's "1984" is back on the best seller's list. as of yesterday the book was the sixth best selling book on amazon. fascinating. it also comes off john lewis's memoir became a top seller after that became -- >> a lot of books on the reading list. "art of the deal" from donald trump. must read. "the death of china" another must-read. by his top trade adviser. >> who knew that president trump would be so good for amazon. coming up, today's must reads.

first, as we head to break, let's check out the futures. still looking at gains in the open. stay tuned, you're watching "worldwide exchange" on cnbc.

welcome back to "worldwide exchange." good morning. it's time for our must-read stories catching our attention in the papers and on the web. mine is in project syndicate titled world order 2.0.

writing that globalization is inevitable. u.s. president donald trump's administration espoused an america first doctrine which is largely inconsistent with what is being suggested here. if it remains the u.s. approach, progress toward building the sort of order that today's interconnected world demands will come about only if major powers push it or it will have to wait for trump's successor. the takeaway, globalization involves more than the economics of trade, but finding places for refugees, climate change and other important issues will come about no matter what, whether the u.s. is in charge or whether it waits until after president trump. >> other countries going in the similar direction. you have the populists in europe, but then the other talk of how the withdrawal from the tpp is leaving an opening for australia and china. >> how about president xi in

davos preaching free trade, saying don't make it a scapegoat. clearly someone has to sort of take the mantle. beijing looks like it wants to do so. >> hard to go back. my pick this morning is from vox, donald trump is about to find out you can't run government like a business. it reads the promise and peril of running an operating unit of a publicly traded company is that on some level you will be judged by your unit's profit and loss. if you're brand-new, you can argue sacrificing profits for growth makes sense, or argue that poor results are not your fault. sooner or later you're either bringing in profits or you aren't. the government is not like this. >> perfect for you. >> the idea is that government is -- it's not clear cut what is successful, what the policy objectives are all the time. you know, government does jobs that are not necessarily worth doing on a profitability basis. it's hard to necessarily know exactly who the constituencies

are. also the piece makes the point that while donald trump has run his own family business for quite some time, but he's not necessarily somebody used to delegating a global corp praora empire it will be interesting how much he can take from business and translate that into being the ceo of america. we're approaching the top of the hour, the team is getting ready for "squawk box." becky quick has a look at what's coming up. >> great to see both of you. you were talking about trade, the new world order, we'll talk about that on "squawk." we have two guests to debate what's been happening with trade. first, bill daley will have his take on what he sees with what's happening with the world, whether we'll go with globalization or be america

first. then we'll be joined by peter navorro, the national trade counc council director. it will be interesting to get both of their views. and we'll talk to senator heidi heitkamp today. you saw what's happening with the pipeline. and also president trump made a point of saying he wants the pipelines we're using to be made in america so that this is creating jobs. we'll talk to senator heidi heitkamp, she is a democrat but she's behind the pushing of some of these pipelines. and then the former nfl star, hall of famer, emmitt smith will be talking with us. owe holds the rushing record for

the nfl. we'll talk to him about what he sees going on. an exciting time for football. >> nfl is cool, but i'm excited about peter navarro. i was talking about how -- >> you are wearing your nerd colors. you're excited about peter navarro over emmitt smith. >> i think the whole world will watch that one. >> i'm excited to hear about emmitt smith and what he has to say about the two teams in the super bowl not really running the ball anymore. >> maybe he will hold that record forever. he took it over from walter peyton. it's been standing since his career. we'll see. that's a great question. maybe i'll ask that. i can use a little help with some of these football questions. when we come back, we'll talk global markets with bruise kazmit. stay tuned, you're watching "worldwide exchange."

stocks are at record highs. the momentum continues, dow futures up 60 points after the s&p and nasdaq closed at all-time highs. is the optimism about president trump's policies justified? with us to discuss is bruce kasman of global research at jpmorgan what do you think about this market's run up, trump rally back on. is it justified by the fund fundament fundamentals? >> there's a tail to the upside, with fiscal stimulus and regulations, possibly some negatives on trade. but the fundamentals of the global economy are based on inflation an growth. when you look at markets you don't want to lose sight of the fact that there's a more organic macro story playing out here. >> you say the indicators are

hitting new highs in terms of economic surprise. we will get our first look at fourth quarter gdp on sfrfriday. we've had slowdowns, do you think we can escape that pattern? >> i would hope so, but i can't fully understand the slowings in the first part of the year. we don't think there's anything that can be explained by persistent seasonal problems, weather has been okay. but i can understand the dynamic we've seen giving people concerns. i would say the data, the surveys which did signal weakness as we turned into the last couple of years is moving up. >> from an economist point of view can president trump set out to apccomplish what he wants to when it m comes to manufacturin

a rez sanaissance to bring jobsk to this country do the economics support that? >> no, policies that work on a company basis, policies that work to slow down fwloebl trade m global trade may gave us a marginal improvement, but we need strong demand, better underlying productivity growth. i don't see the things that will give that on a sustained basis. >> bruce, there's a sense out there in the markets that both because of the economic trajectory that the world seems to be on and maybe the addition of policy stimulus, that a lot of signs point towards a lift in inflation. that could be one of the stories for 2017. do you think we're in a zone where that is certainly going to happen? will it be a benign type of increase? >> yes, it's happening and i think we'll see that happen quickly as we go through the first few months of the year,

particularly as we lose the base effects of price increases in 2016. i think it's a benign story. we've been living with too low inflation, and it's not only a story about inflation but also corporate performance, which i think will perform as we refl e reflate. the one issue we have to keep in mind is that the u.s. is getting close to full employment, inflation is back to normal, fed policy rates are easy. the dynamics of the feed in relation to inflation normalization here is an issue. ultimately is a risk if the economy begins to overheat. >> we'll keep it in mind. bruce, thank you. bruce kasman of jpmorgan wh. what are you watching today? >> i think it's an earnings day. >> and the political headlines? executive orders? >> you can never get away from them. >> we'll see if the high dollar

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good morning. the trump rally, would you say it's resuming? i don't know. did it ever stop? floe global stocks hitting a 19-month high. the dow is taking another run today perhaps at 20,000. we're only 78 points away. the first 100 days, president trump quickly ticking off top campaign promises. today's big agenda item, the u.s. mexico border wall and some other immigration moves. not so fast, cisco snaps up a business software company for nearly $4 billion. just a bay before that company was set to go public. it's wednesday, january 25,

2017. "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. our guest host is jason trenner. >> 88 points off 20,000. >> 87. >> 87 points off. yesterday the dow was up by 113 points. markets were up across the board. the dow 87 points away from 20,000. it looks like the dow will open up by 61 points. we're within striking distance of that 20,000. app was up by 15