good morning. the trump trade. u.s. markets rally to new highs as the president promises a phenomenal tax announcement. expectations and potential impact coming up. >> president trump will meet with japanese prime minister shinzo abe at the white house today. we'll tell you what's at stake straight ahead. and reckitt benckiser is buying mead johnson for $17 billion in cash. it's friday, february 10, 2017. "worldwide exchange" begins right now. ♪ >> good morning. happy friday.

welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> happy friday. good morning to you from me as well. i'm wilfred frost. it's new music friday. we're kicking off with some brand-new katy perry. would you guess that's katie merry? katy perry. got to see her once. >> you did? >> dow is up almost 50 points this morning. s&p up 3. nasdaq up 11 after a solid rally on wall street yesterday. as for the ten-year treasury note yield back to selling off with higher yields. we've seen that over the past session. springing back from what was a multi week low we saw earlier in the week. back above 2.41 on the ten-year. the catalyst was president trump telling the airline executives that the phenomenal tax plan is

coming within the next couple of weeks. that's all the bulls needed to hear. >> trump with that tax announcement added fuel to the fire. we had seen yield change direction in yesterday morning's trade and with it equities rebounded. it refueled the trump trade. yields had already started to move that direction. either way, we are ending the week with yields low. closed last friday at 2.49. off the lows of 2.34. >> it is rebounding, this is the first dollar up week in the last few weeks. >> economic data out of asia. china's january trade figures topped expectations. exports grew 7.9% from a year earlier. imports rose 16.7%. those numbers particularly strong and better than expected. we are looking at asian market trade, the nikkei up 2.5%. hong kong up 0.2%. shanghai up 0.4%. >> 2.5%. big rise for the japanese

market. weaker yen yesterday. weaker yen this morning. getting economic data out of europe. french industrial production dropping 0.9% in december. manufacturing output sliding more than expected. the uk's global goods trade deficit coming in at 10.9 billion pounds. consensus was for 11.5 billion pound deficit. uk industrial production growing 1.1% in december, up 4.3% on the year. european equities early this hour. green on the screen. led by the german dax up almost a half percent. france is up a quarter percent. the ftse 100 up 0.4%. italy lags again. european yields has been a big story on the politics and the increasing risk priced in by markets of a win by the far-right leader in france, marine le pen. french yields have gone higher. they've come down a bit this

morning and over the last few sessions. looking at higher yields. risk taking back on the table. we'll continue to watch the polls. >> yeah. we didn't actually have the french yield there. the 10-year fell below 1% yesterday. that got attention. the polls have not changed in terms of le pen's chances. she's still not expected to win. she is likely to get 26% in the first round an then beaten in the second round. the headlines have spooked the market as opposed to expectations that she has a better chance. >> she laid out her vision a bit, and that painted a picture of france outside the eurozone. some rating agencies said that would mean potential default for france. >> the more important story in europe this week is greece, headlines coming out there. it's not immediate problem, not a huge problem, but they have about 2 1/2, 3 weeks now to sort out another debt deal. there's clear differences in opinion in the best way forward.

>> between the imf, the credi r credito creditors. >> the imf thinking they should be given debt forgiveness. the germans saying that's not going to happen. it's not crucial yet, because of various elections the consensus is they'll sort it out. people are not super worried, but we've seen a leg up in terms of periphery spreads in greece this week. a new report says global oil demand is improving but a fo slowdown is still forecast for this year. in particular of note in that report was that opec crude production fell by 1 million barrels per day in january. suggesting that there was -- >> the cut is happening. . strong initial compliance with the deal. as we said, oversupply and elevated stockpiles more broadly will remain for the rest of the first half of the year. oil has had two days of gains in a row, week to date is still

down, a half percent with today's gains on pace to end a three-week winning streak. oil at this moment will be down a half percent. >> the headline there is that opec implemented 90% of the cut in january. fulfilling its promise to go forward, which was one big question. the u.s. dollar, show you what's happening there. the key today is the middle. dollar/yen is stronger. yen weaker. that's a signal of risk taking. 113.65. the reason i say it's the one to watch, any tensions between prime minister abe and president trump specifically on currencies or that trade deficit, that's the one that could be disruptive. a stronger yen would signal concern. >> interesting to see the dollar will end the week stronger. it will be breaking a four-week losing streak. the broader index up 0.8% before today's moves. that is coming on a week when yields have fallen in the u.s. as we said throughout the week,

they've been falling markedly elsewhere. gold prices to round things off, enjoyed a decent run of late. but were down slightly yesterday for the week as a whole gold is up 1.5%. losing a percent today. still in positive territory for the week. >> turning to today's agenda, the trading week wraps up with a trio of economic reports. january import prices are out at 8:30 a.m. eastern. expected to rise at a slower pace than in december. 10:00 a.m., look for the first report on february consumer sentiment. then at 2:00 p.m., the monthly federal budget statement. in political news, a u.s. federal appeals court upheld a temporary suspension of president trump's order restricting travel from seven muslim countries. this means the travel ban remains on hold. in a unanimous ruling, a three-judge panel said the government has not shown likelihood that it will seek to reinstate the ban or that the

failure to reinstate would cause irreparable injury. president trump tweeting after the ruling see you in court. the security of our nation is at stake. president trump has not spoken to jeff sessions about the ruling yet. this is an audio recording of the president's reaction. >> we have a situation where the security of our country is at stake. it's a very, very serious situation. so we look forward, as i just said, to seeing them in court. >> those comments and the tweets suggest that it will go to the supreme court, which, of course, stands at 4-4 in terms of conservative and democrat appointments. we'll have to see what happens. >> what a first day for jeff sessions as u.s. attorney general. in other news, the senate confirmed tom price as secretary of health and human services. the vote took place early this morning. this is the third confirmation of a cabinet official this week. still waiting on having a

treasury secretary. that has not gone through yet. in geopolitical news, president trump told xi jinping that he intends to honor the so-called one china policy. the leaders spoke by phone last night. trump previously suggested the policy was open for negotiation, which upset beijing. a white house statement says the two men had a lengthy and cordial conversation that covered numerous topics. this is a big development on the geopolitical front if they have an open dialogue and a cordial tone. >> maybe a softer tone than from the first week or two out of the administration. in washington today, president trump will meet with japanese prime minister shinzo abe at the white house. the leaders will hold a joint news conference at 1:00 eastern. sara has been looking into what's at stake. >> front and center here is the economic relationship between the u.s. and japan. prime minister abe will likely bring goodies, maybe investment in high-speed rail for this

country, like japan's shinkanzan high speed rail, to build on what is a strong economic bond. here's the key to that. trade investment and jobs. japan is our fourth biggest trading partner for the u.s., runs the second biggest trade deficit, about $68 billion, number two behind china, something that president trump complained about already, but prime minister abe will make it clear that economic bond is deeper than trade. japan has invested more than $400 billion in the u.s. in businesses, assets and projects. only the uk has invested more money in the u.s. it's also number two when it comes to u.s. jobs. japanese firms employing 839,000 workers in the u.s. importantly for president trump, it's the top source among foreign countries of manufacturing jobs in this country. thanks in large part to the auto sector. some of the biggest employers in the u.s., aon, gonzel

electronics, toyota. abe set to stress a lot of the automakers in particular hire thousands of people in small rural towns across, america. lincoln, alabama. russells point, ohio. where it could go wrong. currencies. last week president trump said you look at what japan has done over the years, they play the devaluation market and sit there like a bunch of dummies. well, japan maintains it does not manipulate its currency, plays by g20 rules, has not manipulated the markets since 2011, and if we have seen a weaker yen it's because the japanese economy is weaker and had loser central bank policy. both leaders have an interest in smen cementing this relationship. for president trump, japan is an important security ally, that's why after this news conference

today and after their working lunch in the white house, they'll head to florida together to the winter white house, mar-a-lago with their wives, and he will spend the weekend there. >> as you frame, it is an incredibly clear promise, clear sign that they intend to work strongly together. abe was one of the first to come and visit president-elect trump before the inauguration. there's been a couple of tough exchanges in and around toyota and things like that, but in general this is a relationship that starts on strong footingment. >> absolutely right. abe -- my must read this morning goes to that, how prime minister abe played this smart. he had a good relationship with president obama, but he's not looking in the past, he's looking towards the future and cementing this relationship. in corporate news, reckitt benckiser is buying mead johnson for $16.6 billion in cash.

reckitt benckiser which makes products like lysol cleaning spray will pay $90 a share for mead, which makes baby formula. reckitt benckiser said last week it was in talks to buy mead. reckitt benckiser expects the da deal to add to earnings. blackstone reportedly in talks to buy aon's benefits unit for $4.8 billion. the business processing work benefits for about 15% of the u.s. population. aon acquired the unit back in 2010. the deal expected to be announce the later today. a group of companies including northrop grumman, bae systems have been awarded a $3 billion u.s. missile contract. the pentagon says the contract is for the design, development and demonstration of space high

altitude and missile defense hardware and software. shares are up. when we come back, corporate headlines from around the world including disney announcing its increasing its interest in euro disney. good morning.

welcome back to "worldwide exchange." happy friday. let's check in on the market action. oil prices are still just in negative territory for the week as a whole. since wednesday we have been

rallying. the reason we're rallying today is an oil report coming out to suggest that there has been good implementation of that opec supply cut in the month of january. will that hold for the rest of the year? that's the bigger question. either way that supply cut has been stuck to for the first month or so of it. the report suggested that oversupply exists still for the first half of this year. either way up 1% for oil prices this morning. 53.54. still down about a half percent for the week as a whole. we had a decent rally yesterday. yields up, dollar up and equities up. seeing that positively carried through today. up about 0.16% on the dow. sara? >> global corporate news. italy's unicredit posting a loss of 13 billion euros in the fourth quarter. among the reasons, bad loan writedo writedowns. earlier this week they offered a share sale to shore up finances.

and banco monte dei paschi posted a net loss of 3 billion euros for 2016. this after being bailed out by the italian government to help cover bad loans portfolio. in other corporate news, arcelormittal beat forecasts. the largest steelmaker benefited from a lack of charges relating to decline in prices which resulted in losses in 2015. they plan to increase capital spending this year thanks to recovering steel markets. however they warn markets are volatile due to overcapacity in china. disney is increasing its stake in euro disney from about 77% to nearly 86%. the price for the deal is two euros per share. it will be paid in disney common stock. euro disney, which operates disneyland paris theme park is owned by disney euro next prince

alhid. >> happy memories of going there as a child. >> euro disney? >> yes. >> in paris? >> yes. even though it didn't open until i was a teenager. >> you should go to disney world in florida. >> i've done six flags here. a bit fun. >> you have to have a child to really enjoy it. i don't know. some adults go. >> we shall see. still to come, president trump's immigration order could be heading to the supreme court. the latest from washington as well as a full market day preview. mpanies across the state growing the economy, with the help of the lowest taxes in decades, a talented workforce, and world-class innovations. like in plattsburgh, where the most advanced transportation is already en route. and in corning, where the future is materializing. let us help grow your company's tomorrow - today at esd.ny.gov

welcome back to "worldwide exchange." let's get you up to speed on the market action. after a solid rally on wall street yesterday, gains continued this morning. dow futures are up 47.5 points. s&p up more than 3. nasdaq up more than 10 points. the dollar continues to strengthen. we have this reflation trade back on. selling of treasuries, higher bond yields, stronger dollar and strong stocks, we're seeing it in europe and the u.s. the action is in the japanese yen ahead of the visit by prime minister shinzo abe who will be at the oval office later this morning. a news conference at 1:00 p.m. for now, it's the dollar stronger, yen weaker, which is something that stocks around the world usually like to see. as for the pound, moving up a bit. some stronger data on industrial

production. >> yesterday's turnaround in the yen helped the nikkei in today's trade. in washington news, president trump is vowing to fight an appeals court ruling that keeps his temporary travel ban on hold. edward lawrence has the latest from washington. good morning. >> reporter: good morning. what's interesting about this order here is that it is unanimous. one of the judges was appointed by a republican. the 9th circuit court of appeals decision to uphold the ban on the temporary travel ban angered president trump. he says the security of the country is at stake. >> it's a very, very serious situation. we look forward, as i just said, to seeing them in court. >> reporter: the three-judge panel did not rule on the merits of the case, only that the government gave insufficient evidence to overturn the travel ban stay issued by a lower court. that means people from the seven predominantly muslim countries can still enter the u.s. >> we respect that the president has broad authority when it

comes to issuing executive orders, but they still have to follow the constitution. that's the bottom line. >> reporter: washington state attorney bob ferguson brought the case in response to a tweet from the president moments after the ruling, ferguson says -- >> we've seen him in court twice. and we're 2 for 2. >> reporter: upping the war of tweets, he sent out a picture going over the unanimous decision. ferguson says the president has a choice to continue this fight or tear up the executive order and start over. he recommends starting over. president donald trump could appeal this case to the u.s. supreme court or ask all of the judges in the 9th circuit court of appeals to make a ruling. >> edward, thank you very much for that report. to sports. the miami marlins baseball team may be on the block. owner jeffrey lurie has a handshake agreement to sell the franchise to a group that includes a new york real estate developer for $1.6 billion. espn says that developer is

charles kushner, the father of white house adviser and president trump's son-in-law jared kushner. the "new york times" reports jared's brother, josh who runs the investment firm thrive capital has been pursuing the marlins for months. lurie bought the marlins in 2002 for $158 million. the commissioner's office must be informed of a potential sale and it hasn't heard directly or indirectly of conversation involving charles kushner yesterday. >> the rumors are he could sell it for $1.6 billion. not a bad return on investment. when we come back, the top stories and a round up of global markets. plus apple already took away our headphones, now they may be kitikit i cutting another cord. this idea i love. it's something wireless that makes life convenient. ♪ why do so many businesses rely on the u.s. postal service?

because when they ship with us, their business becomes our business. ♪ that's why we make more e-commerce deliveries to homes than anyone else in the country. ♪ here, there, everywhere. united states postal service priority : you we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

good morning. stocks jump to new highs as the president promises a phenomenal tax announcement. president trump tells chinese president xi jinping that he intends to honor the so-called one china policy. and our top trending stories, including rumors of an iphone with wireless charging. it's friday, february 10, 2017, you're watching "worldwide

exchange" on cnbc. ♪ >> good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. good morning, happy friday to you from me as well. let's check in on the global market action. coming off a day where we did see the trump reflation correlation kick in to effect again yesterday. >> triple records. >> triple records as well. the yields pick up. dollar pick up. equities pick up. we looked at about a half percent of gains for the dow and the s&p. nearly 1% of gains for the nasdaq. goldman sachs at the top of the dow. banks rebounding after a disappointing couple days this week. gains of 46 points for the dow in the pre-market. nasdaq 9, s&p three points. >> also interesting to see retailers flying high and the dow like nike and walmart. there's speculation that if the donald trump plan does get announced on taxes, it won't

include the border adjustment tax, whether that's right or wrong. certainly retailers rallied on this idea that maybe not they had been under pressure in recent weeks because that would make life complicated for retailers that get products from overseas. >> either way, donald trump, the president suggesting two or three weeks away from an announcement on tax. the press secretary reiterated that time frame later in the day. trade around the world, european trade this morning for the most part positive. for the week as a whole basically flat for germany and france. ending with slight gains, germany up 0.4%. france up 0.2%. asian trade, very big gains for the nikkei up 2.5%. we saw the yen turn around yesterday intraday after the nikkei had already closed and softened by about 1%. softer still today. that's why the nikkei has jumped 2.5%. hong kong and shanghai in positive territory coming off the back of strong chinese trade

data. exports up 16% year on year. imports up 25%. also some easing of geopolitical concerns between the u.s. and china as it was reported that president trump and president xi jinping spoke on the phone and that donald trump agreed to respect the one china policy. >> we've got a move higher for oil after a 1.3% gain for it yesterday. oil spiking in the early hours after we did get a report from the iea saying that opec has made good on its promise to cut production, about 90% of those production cuts going through. that sent oil higher, up 1%. 53.51. brent, 56.26 saying it expects higher demand as well for the year. natural gas down about 3.5%. as for the ten-year treasury note yield, higher yields. turnaround midweek. you make the point we're not quite as high as we were last week? >> yeah. 2.49 we closed on friday. the net effect of the week is

yields moving lower. >> we did get a sell ooff yesterday on the announcement of a tax plan coming. the dollar stronger against the japanese yen, which will be in focus all day long as president trump meets with prime minister shinzo abe. any talk of ten nsiontensions, deficits could send that range the other way. >> it's not like we're off to the races again with the strong dollar, it's the first week now in four or five that's rebounding the dollar here. >> gold, quickly shlg the flip side of the stronger u.s. dollar, some weakness in gold which continues this morning. down 0.8%, which is a little less than ten bucks. >> just to round things off, the key story has been yields. we started to see it flip back a

bit at the end of the week. the net effect has been lower yields, but a bigger move in terms of core yields across europe than in the u.s. it's been led by the global picture as opposed to necessarily u.s.-led. i would also say look out for the periphery, the likes of greece have gone the other way. so things happening in the global bond market. in the rest of europe outside of greece, we have seen buying. >> the other takeaway from the week is the resilience of stocks, rallies are bigger than selloffs. so there's a bullish bull market tone to this market and this idea that there is still hope of new pro growth policies to be priced in just when you thought it could all be priced in and banks rallied, you get word of a tax plan coming and you see another strong rally. >> added to that, people have fears that in that good versus bad trump possibility, around

the immigration ban, look at china, a change in tone, a softening of his position saying he will respect the one china policy. let's update on that, president trump and chinese president xi jinping spoke last night. it has been revealed he intends to honor the one china policy following that phone call last night. eunice yoon joins us from beijing with the reaction. good morning. >> good morning. china welcomed the decision. to them it meant that the u.s. as well as trump both acknowledged that beijing and not taiwan is the seat of the chinese government. china appreciated the phone call which the white house described as cordial and lentgthy, and th foreign ministry said the one china policy is the political foundation of the china u.s.

relationship. this would be a new starting point for president trump because in past and previous statements he has been calling into question america's commitment to the one china policy. even going as far as to suggest that the one china policy be used in negotiations on other matters. china long and repeatedly said that the one china policy is a nonnegotiable item and a nonstarter when it comes to discussions. and the "new york times" was reporting today that president xi jinping was giving president trump the silent treatment until he fell in line on this issue. i was talking to a couple of different analysts here today. and largely people are breathing a sigh of relief. one person told me he's cautiously optimistic because it means to him that the administration does want to get things done on china. there are a lot of things to get done. another story that developed is

that a u.s. official told reuters that u.s. and chinese military aircraft had a near-miss in the south china sea this week. and, again, that is another point of contention between these two countries. >> surely to come up in the meeting today between prime minister abe of japan and president trump in the u.s. can you give us an update on the china/japan relationship and how the u.s./japan relationship could set the tone on how much the u.s. confronts china? >> well, that's really interesting. the timing has been the source of a lot of speculation. because it doesn't appear to be a coincidence that this call was made on the eve of what's going to be a big summit between president trump and prime shinzo abe. beijing sensitive when it comes to relations between washington

and japan. and the speculation has been that perhaps the white house might want -- may have wanted to clear this issue because they wouldn't want to exacerbate the relationship between the united states and china ahead of this meeting. >> we'll see what happens. eunice yoon, thank you very much live for us today in beijing. in washington today, president trump meets with japanese prime minister shinzo abe at the white house. the leaders will hold a joint news conference aimed for about 1:00 p.m. eastern after a meeting in the oval office. this is key, and the economic and trade relationship will be front and center. i did some digging into this. trade certainly is at the top of the list. japan is the u.s.'s fourth largest trading partner. it has a trade deficit of 68 billion. look at this chart. japan is also a major investor in the united states. this is foreign direct investment and includes investment from japan into companies and assets, all sorts of projects. japan is up there at the top of the list.

that's something that the prime minister will stress to president trump. it's not just about the trade deficit, we're also fueling a lot of growth for american workers. and when it comes to american workers, which president trump has made all sorts of promises about and ran on this campaign, japanese companies do hire a lot. in fact, in terms of foreign countries, number two behind the uk in terms of japanese firms employing u.s. workers in this country. 839,000 of them. that's a significant number. also something that the japanese can point to. in terms of system of the names, the companies of japanese firms that are the largest employers in the united states, aeon, gunze electronics, toyota motor a big one. and something that the prime minister can say to president trump in a tweetible way, they employ a lot of workers in rural

towns across the u.s. because of the auto sector. and a lot of these japanese cars are actually made by american workers. that's at the top of the agenda. it's in both of their interests to have a strong relationship. it's not just economic, it's a security relationship as well. the question is how contentious does the issue of trade an currency get. that's something that the -- it's not going to be productive for the japanese. they maintain they're not a currency manipulator, that the u.s. dollar, if you look back over the last few decades, is weaker than the japanese yen. as much as automakers complain about the yen giving them an advantage, if you look out t shows the u.s. has the advantage. >> the point being that prime minister abe has a lot of ammunition to offer up saying we do give the united states a lot. what might he be looking for in return? >> some assurances that this is the strongest security and

economic ally. it is a partnership. it's a personal bond. they're going to mar-a-lagmar-a they are going to play golf over the weekend. he has already visited him at trump tower before the inauguration. he wants some friendship there, and president trump talked about bilateral trade negotiations. does he come up for a proposal of japan? japan was the key member of tpp, which the u.s. backed out of. abe, this was a key political move for him. he was the only country to get tpp ratified. does president trump put a trade deal on the table? >> great stuff. that press conference at lunch time. in other news, let turn our eyes to tech and mark zuckerberg is dipping his hands into the virtual reality world. as he shows off the next

generation product from facebook's oculus lab. landon dowdy has more. good morning. >> mark zuckerberg showing off a new glove that can interact with the oculus rift vr headset. pictures were posted from the visit to a lab in washington. in one photo he brags about performs like a superhero using white motion gloves. in the caption zuckerberg says you can draw with a virtual keyboard and shoot spweb s like spider-man. zuckerberg has been pushing to make vr the next major computing platform. the ability to type in vr could expand the technology to more enterprising uses. some facebook engineers are

experimenting with coding in vr, because it could offer them infinite screen space. back over to you. >> huh. >> you could be spider-man shooting webs, sounds cool. >> i need to try these out. landon, thank you very much. >> thanks. in other tech news, iphone users say good-bye to your phone chargers. kgi securities, a reliable source for iphone leaks in the past, is reporting the three new iphones for this fall will feature wireless charging. the tech giant is said to be working on over the air charging to allow your phone to charge without needing to be directly connected to anything. how convenient would that be? >> very. it's been discussed for a while. it's out there with some manufacturer's models already. >> i'm in favor of wireless anything. >> i don't like -- >> i want them to invent a wireless heating pad. >> what's a heating pad? >> for your ailments. for your pains.

>> right. i don't really know what that is. the wireless headphones, i don't like that development. if you can charge without it, you can use the main socket for something else. still to come, getting ready for the trading day ahead with michael gapen. stay tuned you're watching "worldwide exchange."

good morning. happy friday. welcome back to "worldwide exchange." to our must read stories. my pick is in the financial

times. >> shocking. >> i nearly went for the "wall street journal" today. this is a good one. off the back of president trump tweeting about his daughter and nordstrom this week, which has been front and center. it's titled corporate benefits of a trump tweet. the ft looked into various examples of trump tweeting about companies since his election. these are the results. this is striking, she writes. it may not be a fluke. the financial times has crunched data on 30 cases in which companies have been targeted by that account. the sample size is small, and the data only starts from january 1st, however this limited analysis shows mr. trump's tweets have had surprisingly little effect on share prices so far, irrespective of the media hullabaloo. they go through the details and examples of tweets, all of which we cover closely. the conclusion is there's been a few negative effects, but then

it's tended to be short-term, and moving forward it doesn't affect the stock prices. >> this is the key analysis that investors have to be doing now. did you see that online sales for the ivanka trump brand fell 26% in january. >> i did. >> nordstrom complaining about that. approaching the top of the hour. the team is getting ready for "squawk box," a special one. we have a special tease with becky quick and joe kernen from pebble beach, california. hi, guys. >> two for the price of one. >> that's right. >> good morning. >> it's so early out here, you know, we have not seen your must-reads all week long. neither one of us. that's the bonus -- >> monday and tuesday i did. >> that's the bonus for getting up this morning. we're wet. >> it's raining. joe is especially wet. he played yesterday in the rain.

>> sideways rain, which is -- umbrellas don't help. >> i feel bad for you. mm-hmm. >> unless you -- it's raining again. raining again. it's expected -- i have to finish three holes from yesterday's round on a course not right here, and come back and make it -- >> world's tiniest violin. >> do you have any guests? move us along. >> good ahead. >> you have big fish to fry. >> we do have guests. >> jeffrey yang, zazlov. bill murray? >> bill murray. we have a bunch of stuff. we get to talk to kenny g., huey lewis, and bill murray. incredible cinderella story. came out of nowhere. >> he has a new lineup. it's william murray golf. it's a clothing lineup. he's a brand-new entrepreneur. he stopped by yesterday to talk

about what it's like to be an entrepreneur. listen in. >> it's kind of passive. i don't have to do so much. occasionally i chip in with an idea orring is like that. obviously i have to keep in top, physical condition as a model. it's a life of denial. >> so he has this clothing line. wait until you hear the story behind it. it's an amazing way how he got into it. i don't want to tell you too much. he -- it was a fluke. >> are these clothes people would actually -- >> the stuff he had on yesterday. >> you know how he dressed out there. not everyone would want to dress like that. >> he had really nice shorts, pants, shirts it has a bit of flair. >> can i ask you a quick golfing question. your match this within is very important. but also an important golfing competition between prime minister abe of japan and president trump taking place this weekend. you played golf with president

trump. do you think he'll beat mr. abe on the course? >> he's a good golfer. i don't know anything about mr. abe. >> i'll bring it to you on "squawk box." i have some stats for you guys. >> there we go. thank you very much for it. we look forward to "squawk box" in ten minutes time. michael gapen from barclays is coming up next. retirement ra. i'm the money you save for retirement. who's he? he's green money, for spending today. makes it easy to tell you apart. that, and i am better looking. i heard that. when it's time to get organized for retirement, it's time to get voya.

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futures at this hour are called higher by about 31 points. the s&p and the nasdaq also higher. the trump reflation trade was reignited by talk of a possible tax deal coming within the next couple of weeks. joining us to discuss is michab. were you surprised that a tax deal is just two, three weeks away? are you encouraged by it?

>> i'm not surprised. we're expecting him to give more details as we approach his address to congress later this month. the question is a tax plan on what? is it a general reduction in the tax rate itself? personal income taxes? corporate income taxes or something all the way to paul ryan's preferred border adjustment plan? we think it's the former. i done see trump as completely enamored with the border adjustment tax at this point. i'm not surprised some of these details are coming out. >> can you review for us what -- based on what we know about corporate tax reform, business tax cut to maybe 20%. what that would do to economic growth. >> so, it would depend if this spurs activity in investment and hiring. i think these are typically long planned decisions, medium term decisions by firms. several tenths of a percent.

so maybe not something you notice right away, but much more immediate effect on equity prices. we think equities is go 4% to 6% on the corporate tax cut alone it will be reflected in share prices, dividend buybacks and overtime in stronger spending. >> we've seen over the course of the week the net effect on bond yields being they moved lower. they're also moving lower around the rest of the world. what do you think is driving that? is the u.s. following the rest of the world at the moment? >> there's an improvement in the external environment. some of the data coming out at the beginning of the year, global pmi data stronger. chinese trade data overnight has been shifting. i think the dollar and the bond yields in the u.s. are also in a wait and see mode. as these details about fiscal policy come out, it's hard for bonds and the dollar to move too far in advance of that. it's still just a bit of a

retracement off euphoria. >> what can we expect going forward for the fed? there's an idea that march is off the table. if we see these policies come through and any kind of boost to growth or to markets, doesn't that mean the fed has to start raising rates in 2017? >> it does. i gentlemanly agree that there's very little low odds for margin. it's generally off the table. the labor report was warm, but not too hot. the fed wasn't all that aggressive on declaring victory in the labor market. the fed is in following mode. for the first time in ten years, the fed is not the only game in town. they're waiting to see the details of fiscal policy. i think they will be moving more consistently on rate hikes. maybe even talki ing about bringing balance sheet runoff in time. >> how focused will you be on the meeting between president

trump and president ashinzo abe. we have conversation between china and the u.s. last night, and more meetings that seem to be starting off on amicable footing. >> we generally expected cordial and positive relations between the u.s. and japan. what comes out of that will be constructive. anything that does reduce the odds of a global trade war would be helpful. so maybe the comments with china there are a nod in that direction. we think anti-trade policies on balance are coming, particularly as it -- in respect to mexico and china. it's just the magnitude there that is really the issue. how much do you do in advance of renegotiations trade deals. >> we'll watch the body language, the headlines, all of it today. michael, thank you. >> the golf handicaps. >> that's over the weekend. it won't be public, likely. >> it might be. >> knowing president trump, he

might well tweet those. >> handicaps, golf and currencies. the topic of the day. >> "squawk box" is next. have a great weekend.

good morning. the trump trade. u.s. markets rally to new highs as president trump promises a phenomenal new tax announcement. and president trump will meet with japanese prime minister shinzo abe at the white house today. and news breaking overnight. president trump speaking with china's president and pledging to respect to the one china policy. we have details. it's friday, february 10, 2017. "squawk box" begins right now. ♪

>> good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the at&t pebble beach pro am in pebble beach this morning. i'm becky quick along with joe kernen. sitting in with us is tony krazinzi from pimco. we have a big lineup ahead including glenn hutchins, discovery ceo, david zazlav, at&t ceo, randall stephenson, and we got the chance to speak to actor bill murray, he will talk about investing, entrepreneurship and a lot of other things. michelle caruso-cabrera and mike santoli are holding down the fort at the market nasdaq site in times square. they have the top stories for us.