good morning. market alert. the dow pulls off something it hasn't done for 30 years. details coming up. breaking overnight, president trump calls china "grand champions of currency manipulation." reaction from beijing straight ahead. and big winners. a round up of the ceos who have personally made the most money since the election from a rally in their own company's stock. it's friday, february 24, 2017. "worldwide exchange" begins right now. ♪ good morning.

warm friday welcome to "worldwide exchange" on cnbc. i'm wilfred frost along with morgan brennan in for sara today. good morning. >> good to be with you. >> great to have you here. it's new music friday. kicking off a brand-new song from coldplay and the chainsmokers called "something just like this." i am a fan. i'll be downloading it. >> you guys always have the best music. let's get to the markets today. now the dow has notched ten records in a row. this is the longest streak of record closes since the first 13 trading days of 1987. the dow is up about 5% over the past month alone. taking a look at futures this morning, in light of that fact, u.s. equity futures are red across the board. the dow indicated to open 8 points load. the s&p indicated to open 2

points lower, and the nasdaq indicated to end 11 points lower. yesterday, the nasdaq ended in the green just barely, and we have had a shift into safe haven stocks, utilities, telecoms. >> utilities the best performing yesterday. that headline, ten straight record closes in a row masks the true risk-off nature of yesterday's move bit sector performance and the headline numbers. for the week as a whole we are looking at the dow up only about 1%. so those record closes that it keeps hitting have been slight daily gains. s&p up by a half percent. the nasdaq is negative. >> i should note also on relatively low volume. the story that's playing out in u.s. equities is also playing out in the bond market. look at the ten-year treasury noted. ticking lower. that's 2.3 % today. again, this is that safe haven rotation playing out.

investors are piling into bonds as they started to digest the fact that we're not necessarily going to see this strong economic growth from these president trump policies this year. most likely next year or later. >> the story in the bond markets as rick santelli has been talking about is despite strong u.s. data and despite hawkish tones from fed members, yields have slipped from crossing above 2.5 to 2.37%. that's led by international factors. not so much that the optimism domestically has soured, but yields particularly in germany have gone down because of fears around the election. and in france the opposite direction. german yields have gone down. asia ending on a soft note for the week. hang seng down a half percent, and if we look at europe a

little soft yesterday. a little soft today, overall a decent week for continental europe at least, france still just about in positive territory for the week. germany up over 1% still for the week as a whole. ftse 100 is in negative territory for the week. ending this friday on a slightly sour note. let's get to the broader market starting with the energy complex right now. we've got oil prices taking a bit of a breathe their morning. wti crude, that's u.s. oil, is down about a half percent to 54.11. keep in mind we saw u.s. production climb back over that 9 million barrel a day mark in the data released yesterday. ice brent crude, the world's benchmark also lower. trading at about 56.21. we have seen crude really trading in a narrow range between 52 and 55. nat gas slightly higher, up 1% to 2.64. turning to the dollar, getting a read on currencies this morning.

the dollar is weaker against the euro and weaker against the yen and stronger against the pound. the fact we've seen some softening within the dollar against other major currencies recently certainly playing out in the commodity complex as well, which brings us to gold. i wanted to check on gold as well. that commodity has had a really strong go of it over the past two months. it's up right now, again up about $5s to 1,256 an ounce. the fact we've seen lower rates and a weaker dollar, that's good for gold. >> gold just ending a three-day slipping streak, but the last couple of months has been strong. the dollar had had two positive weeks in a row. it's set to be slightly negative. essentially flat today. slightly negative for the week. given how much yields have slipped this week, that's relatively resilient from the dollar. the dollar has been much more flat over the last two, three weeks, either way. slightly decoupled from being

strongly correlated to yields. moving forward on to today's agenda. a pair of economic reports out. january new home sales and the final report on february consumer sentiment will be released at 10:00 a.m. eastern. new home sales are forecast to rebound by 6% following a more than 10% decline in september. a few notable names reporting before the open, foot locker, trivago and jc penny. president trump is calling china grand champions of currency manipulation. his comments during an interview with reuters come hours after treasury secretary steve mnuchin appeared on "squawk box" and said he wasn't ready to pass judgment on china's currency process. >> we have a process in treasury where we look at currency manipulation across the board and we'll go through that process. we are not making judgments

until we continue that process. >> trump said he has not held back in his assessment that china manipulates the yuan. on the campaign trail he promised to call china a currency manipulator his first day in office. the china foreign ministry spokesman said china has no plans to use currency manipulation to its advantage. >> coming off that interview with mnuchin where he was so on point, polished, prepared, didn't say anything crazy and out there, it was a well- well-rehearsed interview on his part, if you look at the things that came out from it, the thing that the ft focused on straight away, top story, still near the top, despite the following comments from donald trump is that this was a step back away from the trade war rhetoric with china that steve mnuchin was saying we won't jump to conclusions on this. a few hours later the president

starts to go back to that kind of rhetoric. it does worry people in terms of how much the president is listening to what otherwise seems like quite a well-formed or well-forming cabinet and people doing the more traditional process of thought with these things. it's a very clear contrast yet again of that conflict of opinion within the administration. >> all this talk about currency manipulation where china is concerned is masking the bigger thing, that's the fact that china has put out major subsidies for industries that export to the u.s. for example, steel and aluminum, and pushed those prices down and flooded the market. when you look at something like manufacturing and those lower prices coming from china, that is the bigger issue rather than currency manipulation. >> that's fair. the currency manipulation we've argued on this show plenty of times, the president gets the facts slightly wrong on that he has got a fair point in terms of the state subsidies. it's not a fair criticism, this

is a communist country. there are lots of state-owned enterprises and thus that is par for the course. you can't really argue outright with the whole system. so there's still a long way to go on that. interesting to see how quickly steve mnuchin's relatively reassuring comments were undone by the president yesterday. some stocks to watch. gap posting earnings in line with expectations. revenues slightly beat guidance. shares pretty much flat this morning. nordstrom beating the street, earnings in line helped by sales of the nordstrom rack stores. on the call, nordstrom's co-president was asked about the impact of president trump's tweet about the brand pulling ivanka trump's brands from the stores. hp enterprise reporting lower than expected sales and is slashing earnings projections

for the year after intense competition in its cloud business. don't missing we whitman at 9:10 a.m. eastern. we have baidu profits estimates but revenue dropped for a second squauquarter. the company says it is expecting to rebound this year as it is working to grow outside its core ad business. shares are slightly lower this morning. intuit posting results in line with prior guidance. the maker of turbotax and quick books offering current quarter and full-year guidance that falls within the street's view. intuit is up about 1% in pre-market. imax reporting a drop in 202 2016 profits. the chairman said the decline was due to weaker profits and not as a result of systemic issues in the china market. imax shares are lower in extended hours trading.

hearing some news from financial names in europe, rbi reporting its ninth straight annual loss in 2016 as the uk bank set aside billions to cover past conduct issues. the loss was expected as rbs announced some provisions last month. management says they hope this is the last year of upheaval. rbs still needs to settle over u.s. authorities over the sale of toxic mortgages. standard chartered swinging to a full-year profit in 2016 as it pared back costs from restructuring programs. the lender, which focuses mainly on emerging markets, posted its first annual loss in more than a quarter century.

they are trying to return to profitability. standard chartered is 4% lower right now. s. still to come here on "worldwide exchange," what china has to say about president trump's claims that it is a grand champion of currency manipulation. a live report in beijing coming up here on "worldwide exchange." you can't predict the market. but through good times and bad... ...at t. rowe price... ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence.

welcome back to "worldwide

exchange." ten straight record closes for the dow in a row. that sounds incredibly bullish, certainly it's not bearish, but we need to put it in perspective. yesterday we did see the dow edge higher by 0.2%. the s&p was basically flat. the nasdaq did decline. for the week as a whole looking at a percent of gains for the dow and the nasdaq is in negative territory for the week. also yesterday it was the risk off sectors, the more boring bond proxy sectors that outperformed. utilities the best performer within the s&p up a percent. records keep rolling in for the dow, but certainly at a slower pace and with less conviction than a week or so ago. as you can see from the futures board. not expecting gains today. at this rate the dow will end that run of ten straight gains, albeit ten is a good number to end on. down 23 points for the dow. oil prices, down about half a percent. we gained yesterday about a percent and a half, just losing a bit of that today for wti.

54.2. morgan? >> back to politics and the market. president trump is calling china "the grand champions of currency manipulation." eunice yoon joins us from beijing with reaction. >> thank you very much. there was a lot of reaction from beijing. not only from trump, but also from steven mnuchin. the u.s. treasury secretary was speaking to cnbc and seemed to be much more noncommittal about the president's long-standing pledge to label china a currency manipulator. this is what he had to say. >> we have a process within treasury where we go through and look at currency manipulation across the board. we'll go through that process. so we'll do that as we have in the past. we're not making any judgments until we continue that process. >> well, at the foreign mainisty in beijing today, the chinese welcomed mnuchin's warm

response. >> translator: mnuchin is just new into office. we look forward to cooperation with him to push forward u. u.s./china cooperation and trade. >> reporter: president trump just a couple hours later told reuters that the chinese were the grand champions of currency manipulation. the foreign ministry had a response for that saying that china is a grand champion, just maybe not way the president meant it. >> translator: if you want to label china as a grand champion, indeed china is a grand champion, but a grand champion in economic development, since reforming and opening up policy has been introduced, we have made remarkable achievements, in this regard we are a grand champion. >> the ministry spokesperson repeated that china does not intend to take advantage, have any trade advantage by

de-valuing the currency. he said they want to keep the yuan stable and make sure they press ahead with currency reforms. >> eunice, thank you for joining us. it will be interesting to see how this back and forth within the administration goes. especially when we get that treasury report on april 15th. eunice yoon joining us from beijing. coming up a round up of the ceos who have personally made the most money since the election from a rally in their own company's stock. we all know stocks have been on a tear since -- >> we'll be back. a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create,

not just wealth, but things that matter. morgan stanley

we all know stocks have been on a tear since the election. wilfred has been looking at which ceos have made the most money off of these gains. >> morgan, markets clearly have risen sharply. which ceos have made the most personally from the rise in their own company stock prices? according to data, dow 30 c eshg os have gained nearly billion dollars in three months since the election, just based on the stock in their own countries. here are the top five. unsurprising to see bank ceos at the top. what is extraordinary is to see the extent of their leadership. lloyd blankfein, his holding in goldman sachs soaring $146 million since november 7th.

jamie dimon, close behind gaining $116 million from his jpmorgan shares. apple ceo tim cook, gaining just $23 million. now, why is there such a lead for these two guys? it is not just that bank stocks have outperformed. if we broaden out to the other big banks outside of the dow, blankfein and dimon are still way ahead. him sloan, james gorman and brian moynihan have $7 million of gains. why are blankfein and dimon so far ahead? it it how they have managed to build up such large stakes in answer lutd si absolute side. jamie dimon has also purchased half a million additional shares

himself in recent years. there may be some criticism given the presence of former goldman sachs alumni in the cabinet, but most of the gains have become because of bank share price gains because of the yield curve move rather than specific policies. and it's encouraging to see ceos so tied to the fortunes of the companies they run. former wells fargo ceo, john stumpf received $27 million just sitting at home. >> any names you're surprised not to see on the list? >> not really. the banks have outperformed. it's that huge stark difference between jamie dimon and lloyd blankfein and the rest of the pack. tim cook, just 22 million of gains. a significant distance behind. in political news, president trump will rally republicans at the influential cpac conference

this morning. jay gray joins us from washington with details. >> good morning. he's expected to continue to outline his controversial agenda. should be a friendly crowd. this is the president playing to his base. however she's shown throughout his first five weeks of office that president trump has no problems speaking what's on his mind regardless of who is listening. . i want to thank you for finally inviting me. >> the chief strategy and advise n adviser in a rare public appearance doubling down on the democrats and media. >> if you think they're going to give you your country back without a fight, you're mistaken. >> reporter: it's trump's comments yesterday that many are talking about now. >> would be wonderful, a dream would be that no country would have nukes. but if countries are going to have nukes, we'll be at the top of the pack. >> reporter: then describing his

deportation strategy to a group of business leaders. >> we're getting really bad dudes out of this country. and at a rate that nobody has ever seen before. they're the bad ones. it's a military operation. >> reporter: the white house worked to explain the comments saying military doesn't mean troops. still the president's words made an already tense trip to mexico for rex tillerson and john kelly more difficult. >> there will be no -- no mass deportations. no, repeat, no use of military force in immigration operations. >> reporter: though clearly the president doesn't mind the verbal show of force. now, after three straight weekends away from the white house, president trump plans to spend this weekend here in washington. he'll be working on a speech that he'll deliver to a joint session of congress next week. that's the latest from here in washington. wilfred, back to you.

>> jay, thank you very much for that. several companies led by tech firms such as yahoo, apple and microsoft are speaking out against the trump administration's action on the rights of transgender students in public schools. on wednesday the u.s. government revoked an obama administration order allowing those students to use bathrooms on which gender they identify with, saying it should be an issue dealt with by individual states. in a statement apple says we support efforts towards greater accept tans n5 acceptance, not less, and students should be treated as equals. >> on monday morning, warren buffett will join "squawk box" for three hours. send in your questions on facebook and twitter, use #askwarren. you're watching "worldwide exchange" on cnbc. that's why i have the spark cash card from capital one.

with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?

good morning. markets now, wall street looks to open lower after another record close by the dow. breaking overnight, president trump calls china grand champions of currency manipulation. beijing's response straight ahead. and ringing up retail. we'll bring you numbers from gap, nordstrom, sax 5th avenue and lord a& taylor.

you're watching "worldwide exchange" on cnbc. ♪ good morning. a warm welcome to "worldwide exchange". i'm wilfred frost with morgan brennan in for sara. it is new music friday. we're getting you started with the latest from calvin harris and frank ocean. >> i'm digging it. >> new song. >> good way to start friday. let's get a global check on the markets. starting with u.s. equity futures. red arrows across the way. the dow indicated to open lower 20 points. the s&p 500 poised to open down three. the nasdaq looking like it will open down about 14, almost 15 points this after a mixed session yesterday in which the dow hit its tenth straight record close. last time we saw that was 1987.

the s&p closed yesterday up about 1%. the nasdaq closed lower. for the week we're on track for gains in the dow and s&p. the nasdaq is poised to end slightly lower. let's look at asia. the action in the equity markets there are mixed. the nikkei ending lower. down about half a percent. that as the yen strengthened against the dollar -- i should say dollar weakened against the yen. hang seng down about 0.6%. the shanghai closing about flat, up less than -- >> a few basis points. >> turning to europe, let's look at the action there. we have red arrows across the board. the german dax down about 0.6%. the french cac down about 0.8%. the ftse 100 down 0.4.

the minute is down nearly 1%. >> europe slipping in the last hour or so. a negative tone which fin a wee has seen mostly positive gains. hsbc was down about 6% earlier in the week, today rbs and standard chartered down about 4%. yesterday barclays was up 3%, carving out itself difference, where they are more poised in the united states. oil prices down about a half percent, coming off the back of a 1.6% gain yesterday. fourth positive session in five yesterday. a bit of profit taking as we end the week. for the most part oil doing well. 54.2 for wti. ten-year treasury note, fascinating to see the way this is tracking.

particularly german yields, but the global yield picture has been leading the u.s. yield picture because, as rick santelli keeps pointing out, over the course of the last couple of weeks we've seen more hawkish tones out of fed members. decent data out of the u.s. briefly allowing the ten-year treasury note to go above 2.5%. about ten days ago. we have slipped since then. more because of international pictures than opposed to what's happening here. 2.37% the yield this morning. that slip in yield has meant the dollar slipped yesterday. down about a quarter percent. the dollar remains just about positive, but it's essentially flat. the last prior two weeks the dollar had gained, albeit slightly. the dollar probably ending the week probably slightly softer. gold prices to round things off, they enjoyed a bit of a bounce

yesterday, up 1.5%. broke a three-day losing streak. they're up a bit further today. a half percent. 1,256 the price of gold. the top political story, president trump is calling china the grand champions of currency manipulation. his comments come during an interview with reuters hours after steve mnuchin appeared on "squawk box" where he said he wasn't ready to pass judgment on china's currency practices. >> we have a process in treasury where we look at currency manipulation across the board and we'll go through that process. we'll do that as we have in the past. we are not making judgments until we continue that process. >> trump said he has not held back in his assessment that china manipulates the yuan. on the campaign trail he promised to declare beijing a manipulator his first day in office. the china foreign ministry spokesman said china has no intentions of using currency

devaluation to its advantage. this war of words continues despite a calming set of them from the treasury secretary early yesterday. quickly changing during the course of the day. there's a pair of economic reports out this morning. january new home sales and the final report on february consumer sentiment will be released at 10:00 a.m. eastern. new home sales are forecast to rebound by 6% following a more than 10% decline in september. a few notable names reporting before the open, foot locker, trivago and jcpenney. landon dowdy has more on the retail story this week. we've seen a lot of earnings from retailers. what's going on? >> good morning. it's been a busy week for retail earnings, gap and nordstrom reporting after the bell yesterday. gap, the parent of banana republic and old navy ending the year strong with fourth quarter results in line with expectati n

expectations, a signal that the turnaround plan is working. nordstrom reporting better than expected results helped by sales at its nordstrom rack retailers. on the call the co-president was asked about the impact of president trump's tweet about the brand pulling ivanka trump's brand from the story. he called that negotialigiple. back over to you. in corp praorate stories, capital one says they are being investigated by authorities in new york and the justice and treasury departments over certain former check cashier clients of its commercial banking business. capital one says it is being examined by the u.s. office of

the controller of the currency. in other corporate news, hudson bay says gains at department stores were offset by sales in europe and discount and online operations. same-store sales fell more than 1%. last month they cut their full-year revenue forecast citing a challenging environment in the u.s. and europe. google's self-driving car company is suing uber claiming they stole intellectual property. they say a former google engineer stole design information and went up to start at waymo. toshiba is saying it's not aware that westinghouse was considering filing for chapter

11 protection from creditors. the company making the statement in response to media reports. reports say westinghouse cost overruns at two u.s. projects could result in a write down of about $6 billion. shares in toshiba up today 4%. still down sharply, 44% over the last three months. >> now, italian prosecutors have opened an investigation into the chairman of vivendi. the probe is related to alleged market manipulations over the company's stake in italy's broadcaster mediaset. shares are down about 5% right now. now to our top trending stories. caitlyn jenner is calling out president trump. this after the president trump withdrew obama era guidance on transgender bathroom use in public schools. jenner urged youth to speak up against washington. jenner tweeting well from one republican to another, this is a

disaster. you made a promise to protect the lbgt community. call me, using a fake hand call me signal. we'll have to see if he does. he gets involved with twitter. usually works. and moving on to other entertainment news, beyonce canceling her performance at the coachella music festival. she is pregnant with twins and said she must remain on bed rest. the news causing an immediate dip in the price of tickets on the secondary markets. tickets for the first weekend dropped 12% while prices for the second weekend fell nearly 3% after beyonce's cancellation. could we call this the queen bea market indicator. >> a slight drop in prices, but people need not be too worried. there are some other great acts. rihanna has been named harvard university's

humanitarian of the year. harvard citing her charitable work, including helping to build a breast cancer screening and treatment center in her home country or barbados. the honor has prove xwro t the. and simone biles is heading to the stage. she is set to compete on "dancing with the stars" on abc. she has some big shoes to fell as her summer olympic teammate, lori hernandez won "dancing with the stars" last fall. i'm thinking there will be some flips. >> it's almost a little bit of a cheat, isn't it? a gymnast is almost kind of a dancer. much more talented even. and they've got to be favorites going into it. we'll see. still to come, the must reads, first a check on what european markets are doing. they're in negative territory. germany still positive for the week. france now negative territory. ftse is in negative territory.

we have slipped the last half hour or so. that also weighing on futures which are soft at this hour. ♪ heigh ho heigh ho ♪ ♪ heigh ho heigh ho it's off to work we go here's to all of you early risers, what's up man? go-getters, and should-be sleepers. from all of us at delta, because the ones who truly change the world, are the ones who can't wait to get out in it.

time for our must read stories. my pick is in the financial times. pence shows the path for trump to follow in europe. in brussels this week mike pence pled steadfast and enduring

commitment to the eu. this is in stark contrast to the skepticism and even outright pos untility that president trump and some leading advisers have expressed towards the bloc. this is i picked this because of the steve mnuchin and then the contrasting statement from president trump hours later. and on this issue, mike pence was over there saying we support nato and the eu. i saw one tweet that said we're pleased that you -- the u.s. view is that, please can someone remind the president. clearly the difference in opinion coming across is meaning that people don't have full confidence in this rhetoric when they do hear it. >> not only did the vice president talk about nate to but so did the defense secretary, mattis, before him in a visit there.

we're going to see -- we're already starting to see nato spending increase. this is a bigger story for the defense sector, which brings me to my pick in the "wall street journal." it's titled mattis' pyrrhic personnel war. the former general is about to go into the policy fight of his life and he'll need all the political capital he can muster getting across wise with a white house over personnel, and leaching credibility now on controversial nominees the white house clearly doesn't want and who aren't integral to victory, makes no sense. there's been a back and forth -- reportedly a become and forth between secretary mattis and the white house in terms of getting those positions filled. what has happened, you have obama holdovers in the pentagon.

that could become a hurdle in terms of the increase in defense spending and the rebuilding of the military that the white house and many in congress are looking at. this becomes more of a focus next week. we have a supplemental spending plan that will be submitted for 2017, for the pentagon and beyond that the budget. we talk about fiscal stimulus. this is the fourth leg of the stimulus stool. approaching the top of the hour. the team is getting ready for "squawk box." joe kernen has a look at what's coming up today. good morning. >> my must read is in the daily telegraph. >> very nice. what is it? >> we must leave quickly. the eu falling apart faster than we thought. talking about who is in the stronger bargaining position, the eu who seems to be pretending it's a viable, big, powerful financial behemoth, and that britain better pony up or

the uk better get in line or they won't play ball. this article asks who is really in charge here. i like what it says here, the eurocrats in brussels and the remainders in britain keep on talking as if nothing has changed, as if the uk were leaving a powerful, eternal, economically successful superpower. the status quo is gone and we should leave as quickly problem because trouble is brewing in france, netherlands, greece, itd are you a eurocrat or a remainder? you're one or the other. you said pence, there's some reasoning -- no one understands what is happening, and this crazy trump says maybe the euro -- >> that's not what i said. >> wake up and smell the coffee.

>> going back to my must read and the way you completely twisted what i just said, surely it would be more helpful if the treasury secretary tallied with what the president was saying, the vice president tallied with what the president was saying. >> economic nationalism -- >> don't dodge the point, joe. don't dodge the point. the vice president and the defense secretary echoed a completely different sentiment. >> economic nationalism. jump on board, the world has changed. >> so, joe what you are saying is the vice president and the defense secretary are wrong, and they should be saying the same tones as the president? >> we have to try to ruffle -- we have to try to smooth down the ruffled feathers and everything. but the one thing i do know -- >> but the mixed messages was the point of my article. >> getting back to the markets, do not chase this rally. ten straight new highs. but do not chase this thing.

we had someone on, we would never eat our own, but to be able to nail nine straight new highs by saying don't chase a rally, isn't that -- that's kind of ironic -- becky is here. to get nine straight all time highs after you come on with a big well prepared presentation about how you shouldn't be chasing the rally, in 30 years not has this happened. >> who said that? >> the timing -- i think our first guest today. >> okay. >> becky, great to hear you. joe, to round things off to come back to your original question, i'm not a eurocarat, i'm impartial. but i -- >> are any of us really impartial? >> once negotiations get going, i think there will be more sense as to what you're saying rather than these crazy stories that no agreement will be made. >> you see a lot of mainstream media people that are impartial? does it seem like you see a lot

of impartial people? >> i would agree with that. i don't think i'm saying is unique, joseph, but it's what i aim to try and do. we look forward to "squawk box." happy friday. >> happy friday. all right. coming up, jpmorgan chase chief economist bruce kasman and a programming note, warren buffett will join "squawk box" for three hours monday morning. so send them in, use the the #askwarren.

♪ [dramatic ♪ ic begins] ready! charge! charge! (in chinese) charge! let your reign begin. evony, the mobile game. download now. welcome back to "worldwide exchange." the dow has now notched ten record closes in a row, the longest streak of record closes since the first 13 trading days of 1987. with us now, bruce kasman chief

economist from jpmorgan chase. good morning to you. does the data in the u.s. justify the record highs we keep hitting? >> i don't think by themselves. there's two things playing out here. one is the idea that u.s. policy is changing in a pro corporate fashion. i've been describing that as u.s. exceptionalism because what's happening here is so different than the rest of the world. but also a global reflation story playing out. one that's increasing pricing power for companies as well as increasing volumes. that is a big boost for corporate profits. it's not particularly u.s. sent tri centric but helping the u.s. >> could we not only see the fed tighten but other central bankers around the world if inflation moves higher than expected? >> i don't think we're in the same position in the business cycle. i think we will see a more hawkish tilt elsewhere, but it's unlikely to leave rates moving

up in the major central banks. it's quite possible we see the ecb announce a dialing back of its qe program later this year. it's possible that the bank of england will tighten if the economy doesn't slow in the way we and they are expecting. i don't think rate hikes are in the cards for the japanese. >> bruce, we have had a more hawkish tone out of various fed members. yields have slipped. we hit a high above 2.5 on the ten-year, now 2.3%. what's leading that? is the international yield picture now leading the u.s.? >> you know, i think yields have moved up. there's a technical story about where supply and demand in the market is now. we think the overriding message is that if we're right on the macro economy, if we're right on the fed and we have the next fed tightening in may, yields will continue to move up. they're trading in a range here, but the trend is towards higher yields. >> what about the u.s. dollar in light of that, bruce? clearly we had a massive rally

in the dollar immediately after the election. it sort of plateaued recently. also the performance against major currency pairs very different to what we're seeing against emerging market currencies. >> i think the basic message is that u.s. exceptionalism is good for the dollar. global reflation is bad for the dollar. when we have the election, the first wave in markets was to price in u.s. exceptionalism. what's happening now, we're moving towards a world where we're seeing the realities of slow congressional action in the u.s., plus the data move in the reflationary direction. that's weighing on the dollar a bit. we think there's a tug of war this year. depends a lot on what we get on u.s. policy. the dollar is basically moving sideways in a broad sense. the idea of american exceptionalism, given the fact that president trump has such a focus on bringing back manufacturing to this country and given the fact we've seen the industrial part of the economy just coming out of a so-called industrial recession,

i realize this is still a small part of the economy, but if we see manufacturing come back full throttle, what does that do to broader u.s. growth? >> i think it's a positive. it's really where the global reflationist story helps the u.s. as an industriment but we' industry but we're not the central player in that. i think industry will do better, it's a supportive player for the markets in the u.s., but keep in mind it's helping other economies in the world as much and probably more than in the ursz. >> could we actually get to 3% growth in the u.s.? >> that's not our forecast. we would have to deliver on the fiscal stimulus that we think is unlikely to happen this year. if you get fiscal still plmulus that's how you get to 3%. >> bruce kasman, thank you.

that's it for "worldwide exchange." morgan, thanks for joining us. have a lovely weekend. "squawk box" is coming up next.

good morning. those lucky enough to have gone against the naysayers are still riding this rally. the dow pulling off something it hasn't done in 30 years. in washington, watch president trump call china grand champions of currency manipulations. reaction from beijing straight ahead. and the battle of two tech titans over self-driving cars. google's waymo is suing uber over its designs.

it's friday, february 24, 2017, "squawk box" starts right now. >> live from new york where business never sleeps, this is "squawk box." good morning, everybody. welcome to "squawk box" here 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. we'll start things out this morning with this news. ten straight record closes for the dow. that is the longest winning streak the index has seen since 1987. look at the u.s. equity futures. things are not looking as rosy this morning, dow futures are down by 31 points. s&p down by 4 points. nasdaq down by 19 point. if we actually see an 11th close today, that would push us all the way to 1983 since we have seen a record like that. overnight in asia, you did see some weakness in stocks. the nikkei down by a half percentage point. the hang seng down