breaking news. hurricane maria slams into the caribbean as a category 5 storm. the latest on the storm's path straight ahead. trade has hit the pause button as the fed kicks off two-day meeting and president trump heads to the united nations. a big sign of the times in retail as toys "r" us files for bankruptcy protection. full details coming up it's tuesday, december 19, 2017. "worldwide exchange" begins

right now. good morning warm welcome to "worldwide exchange." i'm wilfred frost. sara eisen is off today. here are the latest developments on maria the hurricane making landfall overnight on the caribbean island of dominica as a category five storm. it weakened slightly within the past few hours to a category 4 storm. but forecasters warn maria could strengthen as it approaches the virgin islands puerto rico is also in the crosshairs we'll bring you the latest updates on hurricane maria as we get them we're following a developing story out of southern california a magnitude 3.6 earthquake shook parts of los angeles it happened around 11:20 p.m. local time residents as far away as costa mesa felt the rumble there have been no reports of injury or damage due to the quake. america's largest toy store

is filing for bankruptcy protection toys "r" us announcing chapter 11 filing late last night. it's one of the largest ever by a specialty retailer the move comes as toys "r" us looks to relive its 4$4.9 billin debt load to reduce that the company says operations will continue as usual at its 1600 toys "r" us and babies "r" us stories around the world for the time being let's focus on markets more generally. u.s. futures at this hour, standing positive, albeit only slightly we got gains yesterday,but onl slight gains the dow up about 10.35%. the nasdaq up 0.1% the s&p just in between. financials led the charge higher they were up a percent yesterday. we did see a nice move up in yields, which we'll come to,

that fed meeting today utility sector was down a per tent asian equities have one stand-out performer today, the nikkei up almost 2%. it was closed yesterday, in part playing catch up to what was a positive session in asia yesterday. given japan was up 3% last week in light of a 3% move south of the yen, the size of this move today is somewhat of a surprise that move south in the yen has stemmed its move somewhat this week compared to last week elsewhere a bit of red, but nothing pronounced european trade was decent yesterday. a third or half percent of gains. pausing for breath we got a move up for the ftse 100. in general a flat or mixed session. broader markets for you. the dollar moved higher by 0.2% yesterday. we could have expected a bigger move, because yields move nicely the ten-year sits at 2.2% today. but the dollar moved only

slightly higher yesterday. today a mixed picture. the euro higher against the dollar the dollar basically flat against the yen. the pound slightly softer. dollar strength against the pound. essentially treading water ahead of the fed meeting all eyes on that tomorrow. oil prices for you, pause for breath yesterday they were flat they had a big move higher by 5% last week. today kicking things off in a positive tone,back above 50, 50.2 half percent higher for gold prices gold which was soft in light of the risk-on trade it was a loser yesterday. down a percent pausing today at 13.11, up slightly let's talk more about market action joining me on the cnbc news line is steve grasso, cnbc analyst and director of sales at stewart frankel. good morning >> how are you >> very well i want to kick off the move up in yields. 0.2% move higher in yields in

about 2 1/2 weeks. coming into a fed meeting. what's driving that move higher in yields? is it a bullish sign for equity markets that yields have been ticking up >> i think it is a bullish sign. we've seen dollar yield, as you mention, we've seen oil dollar, we've seen correlations, sometimes be on, sometimes be off. you can't invest in that you need something more consistent i think yesterday when we saw the financials lead, maybe there will be a misstep, maybe the fed will raise and i shouldn't say misstep. i think that the finance community is worried that the fed will go on this rate rise cycle that will be much to the chagrin of the equity markets. maybe too fast but i think the case is rotation will we see the financials outperform based on the fed or is this the blink of an eye type

episode. >> does tapering versus rate hikes benefit the financial stocks in the bank or do they need to see a rite hiate hike t the full benefit >> i think either would help i think the rate hike is more tangible to investors. but i think what you have to really pay attention to is where you let off on the markets these markets are at all-time highs. if the markets stay at all-time highs, 70% of all stocks trade with the overall index if you're lock market, i would just stay long until you see something that's really conspicuous that the markets might be do for a fail i think that fail could be maybe a north korea incident where china and russia just juxtapose to us versus hearing the rhetoric i think the rhetoric spooks people out of the markets. it's actions that will really sort of take the legs out from under the market what i mean by that, it's been

us trying to coerce china to help if you see china and russia stack up on the other side of us, then that's a real problem for the overall markets. i don't think you'll see that. >> steve, what's your view on the dar at tollar at the moment? it's been a soft year for the dollar shoot dollar have bounced more than it has the past couple of weeks? >> i would agree with that that's troublesome for the dollar any real bounce should have happened i guess the dollar is waiting for follow-through to see what we'll see out of the fed you can't blame it this is -- we've had currency traders fooled before. let's see what the fed does. let's see how quick they regain some sort of rate rise cycle then we'll wait for follow through. i think the dollar is the true test i think they realize rates will not be rising any time soon. >> steve, thank you very much for joining us

we have a big newsmaker coming up later this morning bridgewater's ray dalio sitting down with the "squawk box" team. catch that interview at 8:00 a.m. eastern on cnbc turning to today's wall street agenda it's all about the fed. maek makers will kick off o day meeting this morning look for august housing starts and building permits at 8:30 a.m. eastern, along with import prices and current account figures. auto zone reports before the opening bell adobe, fedex and bed bath & beyond are out after the close in corporate news, equifax revealing it was hit with a second cybersecurity attack. landon dowdy has details of that >> that's right a one-two punch for ecb. the credit reporting agency acknowledging it faced a second security incident earlier this year this is splis separate froe

breach announced last week which exposed the personal information of 143 million consumers equifax is denying that. in a statement the company says the two incidents are not related and that it has complied fully with all consumer notification requirements relate to the march incident. new's second breach comes as lawmakers demand answers from company on what happened it also comes as the justice department has reportedly opened a criminal investigation into whether three equifax executives violated insider trading rules by selling company stock before news of the breach were made public shares of equifax down 19% for the week >> the chairman and ceo added to jim cramer's wall of worry -- wall of shame, sorry wall of shame last night landon, thank you very much for that still to come on "worldwide

exchange," intel just made a big bet on self-driving cars we'll hear from the ceo. and senator elizabeth warren will join jim cramer on "mad money" tonight, a mruust-see interview. one to watch later stick with us for the stre of "worldwide exchange. 't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for enterprise. yours. every year we take a girl's trip.ud is the cloud foremember nashville? kimchi bbq. kimchi bbq. amazing honky tonk?? i can't believe you got us tickets. i did.

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good morning

if you're just waking up, let's get you up to speed on market action asian trade for the most part was slightly negative. one stand-out performer was japan. the nikkei up almost 2%. it was closed yesterday, so perhaps a catch up to a positive day in asia. a surprise move when you add that japan was up 3% last week on a tear at the moment, the nikkei, that's down to the yen's weakness the yen down about 3% last week. let's look at european trade, which sees a bit of strength for the ftse 100. elsewhere most of the markets are slightly flat to down, as you can see. the french index going into positive territory germany down 0.2%. we did have german sentiment numbers come out, 87.9, the consensus, 87.3, a slight beat u.s. ektiquities at this hour,

slightly higher. the dow is up 0.05%. nasdaq bang-on flat, coming off a day of gains yesterday the dow up 0.35% the s&p up more than that. the nasdaq fractionally higher we did get record closes for the dow and the s&p once again and an intraday high for the nasdaq. breaking news. hurricane maria has strengthened back into a category 5 storm it's now headed towards the virgin islands we'll continue to bring you the latest on the storm as we get it it was weakened to category 4 overnight, but back up to category 5 we'll keep you up to date with the latest it is expected to head towards puerto rico today. stocks to watch today, the activist investor fightingmerge hundredsman has built a 15% stake in the company white tail was created by the

corvex hedge fund, an investment fund clariant up 0.3% one of sina's biggest share holders launched a proxy fight against a chinese internet company. areta capital is seeking board seats and proposing a possible sale of the company or its stake in china's version of twitter weibo. you can see a bit of movement in the share price. intel invested more than $1 billion into startups working on artificial intelligent it includes autonomous developme development. brian krzanich talked about it yesterday on opening bell. >> you can't provide the complete solution and it rides with a generic software like windows or android there's a lot of integration between the car, the driving

experience, the safety, the functional safety. you have to have an open platform that's really both with mobileye on the autonomous driving, the waymo partnership is a great example. >> shares of intel are up 1.3% this morning. glaxosmithkline says the fda approved the new 3 in 1 inhaler to treat copd. the inhaler combines three drugs to open patients airways just slightly negative in uk trade today. walmart will allow some shoppers on food stamps to order groceries online the retailer is testing the option at a store in houston and four near boise, id waho. shop kers oper can order onliney in person when they pick up their groceries. fedex will raise some

shipping rates starting in january. fedex express ground and home delivery will go up 5% the one-rate shipping will increase 3.5%. fedex reports earnings after the close today. it's flat in the premarket in ipo news, best a chinese logistics firm backed by alibaba slashed a u.s. offering after getting a tepid response from investors. ifr reports best plans to raise up to 4$495 million by selling adrs for $10 to $11 each, down from the range of $13 to $15 best was set to price its ipo today. ten cent and china's guangzhou auto are teaming up to work on internet connected cars, and explore investments in car insurance and new energy cars. earlier this year tencent bought a 5% stake in tesla.

tencent down about 1% today. united airlines has been facing serious head winds. the stock is down 21% over the past two months, at the delivering alpha conference the ceo explained why you should buy on the dip >> united has been undermanaged up to about 18 months ago. in the past year or so, a couple of activists have been involved. the current management now is considered to be amongst the best in the sector in addition, cooperman starboard's jeff smith took to the stage revealing a stock he thinks will do well. some clear stock picks from some of those well-sprektwell-respecd invest

investo investors. president trump expected to make his speech in front of the nugs united nations here is the weather from bill karins >> horrendous news out of the caribbean. category 5 maria made landfall in dominiqca now it is heading for the virgin islands. 155-mile-per-hour winds. category 4 status it will fluctuate between a 4 and 5 t will approach st. croix, the injury y virgin islands and puerto rico it will be near puerto rico throughout the day on wednesday. then the storm should be just north of the dominican republic. most concerned about st. croix and eastern portions of puerto rico we have not forgot been jose sitting off the coast as a hurricane. this will bring rough seas and gusty winds to new england and heavy rain to cape cod

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welcome back to "worldwide exchange." president trump is headed to the u.n. today he will address the general assembly for the first time since taking office. let's get to tracie potts live in washington with all the details. good morning >> it's a big day. good morning this will be the first address for the president to the more than 1 00 nations who have

gathered from around the world to hear what the new american president has to say, not only about the hot spots in the world, north korea and iran and the middle east but also about how they operate >> reform is what we're talking about. >> reporter: president trump is expected to walk a fine line later this morning urging nations to solve problems together north korea, iran, mideast peace. while chiding the u.n. for being inefficient. frlts t . >> the united nations has not reached its full potential. >> reporter: sending a clear message other countries need to kick in more cash. >> we must ensure that no one and no member state how old issers a disproportionate share of the burden. that's militarily or financially. >> reporter: amid mheavy security, president trump is making the rounds with israel, france and a phone call with china's president.

>> we discussed trade and discussed a place called north korea. >> reporter: today he'll explain how his america first philosophy doesn't leave everyone else out. >> he will have to decide whether he finds a way to get back into the paris climate change pact. he will have to decide whether he actually pulls out of the iran nuclear deal. >> reporter: and north korea nations united, the key to avoiding a military conflict of course everyone is watching the speech today, but also the president and first lady are hosting a diplomatic reception for those guests later today >> thank you very much for that preview. let's discuss it further with peter spiegel from "the financial times. good morning to you. thank you very much for joining us wanted to kick things off. >> good to be here >> rather than going directly into individual issues at the u.n., but on president trump's approach to it and other institutions as a whole. he got criticism for criticizing

the likes of the u.n., nate to,e eu, whether during the campaign or afterwards. but has that begun to work, whether it's pulling out paris climate accord, but is it starting to work >> it is i think in the speech we'll see a more philosophical approach than what we heard yesterday the briefing from overnight is if you look at american foreign policy, you have the internationalists who looked to the u.n., some of these organizations set up largely by the u.s. in the post-war era talk about ideals, democracy promotion, things we heard a lot about from the bush administration, at the other end is the hard-nose realist, ep epitomized by henry kissinger,

he will fall in that latter camp the american interests first, but every other country has their own national interests those who have similar interests to the united states, we should work together. i think if he can get back to that message and be more clear about it, because it's muddied by other things he put out in twitter, if he can get back to that message that america first means we look out for our interests, but you look out for your interests, and we do have common interests in places like north korea, that's the way he's approaching it there's not an idealized human rights promotion, democracy promotion. neocons talked about going into iraq, doesn't want to do that. it's not dissimilar from barack obama who did not want to engage in nation building in the middle east it should be a philosophical speech, but it will go to the point, you raised about how they do not view the international organizations as the epitome of what the u.s. should be doing. >> wanted to spin focus away from the u.n. and look forward

to rerm egerman elections at th weekend. i suppose people are confident that merkel will win, and the debate becomes how well the afd does and whether it's the biggest opposition party >> yeah. that is the big problem. we've seen -- we've been in a grand coalition in germany since the last election. the two biggest parties have been in one government the social democrats have cratered over the last couple of weeks. there's a question about whether they will emerge as a second largest party. we've been waiting to see who the third largest party will be. there has to be three parties potentially in the german coalition. if afd for the first time gets in, that would be a bit of a seed change. their polling numbers are going up they're in the 10% to 15% area other parties like the free

democrats look like to reenter we have a splintered opposition now, a large party for merkel but not large enough to have a majority on the government >> we have to leave it there thank you very much for joining us we look forward to the german elections at the weekend lots more still to come on "worldwide exchange. whether it's connecting one of the world's most innovative campuses. or bringing wifi to 65,000 fans. businesses count on communication, and communication counts on centurylink.

hurricane maria restrengthens into a category 5

storm. we have the latest straight ahead. stocks in wait and see mode as the fed kicks off its two-day policy meeting and when life gives you lemons, why beyonce may not be able to make lemonade out of a major manufacturing mistake. details coming up on this tuesday, september 19, 2017. you're watching "worldwide exchange" on cnbc. good morning very warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. sara eisen is off today. we'll get you to the markets in a moment first the latest developments on maria the hurricane has been reupgraded to a category 5 storm after a brief drop in intensity overnight. it made landfall last night on the caribbean island of dominica it's headed to the virgin islands. puerto rico is also in maria's cross hairs. the u.s. territory could face a direct hit later today we will bring you the latest updates that you need to know on

hurricane maria as and when we get them now to a big story breaking overnight in the corporate world. america's largest toy store is filing for bankruptcy protection toys "r" us is announcing chapter 11 filing last night it's one of the largest ever by a specialty retailer the move comes as toys "r" us u.s. looks to leave its debt load the company says operations will continue as usual at its 1600 toys "r" us u.s. and babies "r" us stores around the world let's check in on broader market pictures. we did have gains yesterday, record closes for the s&p and the dow and record intraday high for the nasdaq not a record close up about 0.3% for the dow. nasdaq up 0.1% financials was the best performing sector. a nice increase in yields yesterday to 2.2% on the ten-year this morning, as you can see, essentially flat a bit of red for the nasdaq,

slight gains for the s&p and the dow. treading water ahead of finding out what the fed decision might be the meeting starts today the decision comes 2:00 p.m. tomorrow asian equities for you, which are seeing red across most of the markets. huge gain for the nikkei, up 2%. it was closed yesterday so slightly playing catch up. the size of the move surprising when you consider it was up 3% last week. the nikkei on a tear as of late a bit of gains for the ftse 1 00 and the dax is just below the flat line that is an improving picture. oil prices today up about 0.6% that comes off a pause yesterday. big gains that we saw in oil prices last week, up 5%. back to that $50 level per

barrel price let's look at the dollar board as well. which saw slight gains yesterday, up 0.2% perhaps could have expected bigger gains given the move higher in yields we saw a mixed picture the dollar slightly higher against the yen, lower against the euro and the british pound the pound sort of flat around the 1.35 level. gold prices to round things off a loser last week. a loser yesterday, down 1% flat today at 1312 look at run in tech. the nasdaq up almost 20% this year, beating the dow which is up 13% and the s&p 500 up around 12%. let's discuss with the founder and ceo of cm research cyrus, good morning to you >> nice to be here >> let's dive into the sector, we discussed this lots before. kick off with apple. big launch last week overall overwhelmed or

underwhelmed by that. >> overall they did enough to justify the share price and for us to maintain a buy on the stock. >> in particular why >> in particular they were at risk of falling behind in a number of big technologies, artificial intelligence, the siri system was not as good as other personal assistants. augmented reality, they had not announced anything apart from the ar kit we had not seen much of that we will see that now they caught up in a number of areas. where they're falling behind is internet tv. apple's version of internet tv is a collection of apps, but i think they need to build a pure internet tv, a platform in which they can control ads >> we always talk about the importance of the iphone to their earnings and the loyalty of customers to the iphone, largely because of the ios software, slightly regardless at the margin with whatever upgrades they have to the hardware does that mean from now on we're on version 10 as it

were, 8 to 10, we will only be seen maintaining the sales of the iphone they will never take off again at levels they did two, three, four >> i think growth will slow. but with each technology that they add to the ecosystem, and remember these technologies like augmented reality, they're a mixture of software and hardware it's difficult for other players to copy that with each iteration of these technologies, the ecosystem becomes stronger, and it's much less likely that apple customer also migrate elsewhere >> let's switch focus to one of your latest conviction sells which is disney. what's the reason for that >> digital media is a big theme for us, within that internet tv is the biggest theme and we've been saying for two years now that internet tv, which is essentially video streaming platforms like netflix, attacking old media companies like disney. we've been saying analysts are underestimating the impact of that theme we continue to say that big

media stocks with large tv broadcasting elements like disney will be hit >> but they are protected in the fact they create content themselves >> yes >> that not a hedge? >> it is a hedge but 44 2% 2% of disney's revenur networks we think the driver of profits is tv networking business, in that business the pay tv side of it and the tved ed advertising e of it will be hit. >> let's focus on the equifax data leak. are there some winners from this type of thing? this thing will happen more and more there's a number of things that companies like equifax can do. they can appoint a chief information security officer, they can take cybersecurity more seriously by educating the board on the risk they need to take. the winners from this are within

the cybersecurity sector i wouldn't advocate a blanket buy on cybersecurity of the 12 or 15 technologies out there, like app security, data security, i would focus on unified threat management, next generation network security, and ai the companies that do that are palo alto and fireeye. >> you have buys on both >> we have buys on both. >> softbank, some people argue that they're losing their focus, spreading themselves too thin across all sorts of areas. you don't think that you like the company. >> we like the company we think they're turning around the u.s. telecom sector and are a world leader in emerging markets internet, particularly in india we think they'll do well we like the vision of the founder. >> my final question, looking through all of your calls, tencent, alibaba, facebook, et cetera, all of them are buys clearly you don't fear the sort of valuation across the broader

sector of the f.a.n.g. names and other related names. >> the reason we have all of them as buys, because we are in a position at the moment in the technology world where all the next generation of technologies, artificial intelligence, voice, augmented reality, cloud infrastructure, they all require a big ecosystem. only these big tech giants can do it. that's the reason we have a buy. >> great to see you. >> thank you turning to today's wall street agenda it's all about the fed. policymakers will kick off two-day meeting in washington. look for august housing starts and building permits at 8:30 a.m. eastern, along with import prices and current account figures. auto zone reports before the opening bell adobe, fedex and bed bath & beyond are out after the close time for some top trending stories. landon dowdy is back on set with us what's the focus this morning?

>> i was checking twitter, the #wilfwideexchange is trending >> three great producers >> avril lavigne is named the most dangerous celebrity on the internet mcafee saying the online post about lavigne were most likely to land users on websites that carry viruses or malware bruno mars was the second most dangerous followed by carly rae jeps jepsen, beyonce and katy perry >> when i read this headline, i thought this had to do with her songs but it's nice to see it's quite broad. >> also rumors she's working on an album she was performing on stage last week with her ex-boyfriend, but then conspiracy theories she died >> i didn't see that one good to see these coming back. >> queen bee, beyonce fans who bought her lemonade album on

vinlt a vinyl are in for a surprise. the first half of a canadian punk band album is in place of some of her songs. the company says the mix-up was because of human error everyone who purchased the record will be issued a refund and another copy of the record netflix issuing a cease and desist order on a stranger things themed bar. the statement is going viral the chicago pop-up bar called the upside-down named after the parallel universe from the show has been a big hit with fans it's such a big hit the managers were planning to extend their run in chicago until netflix stepped in the streepi istreaming company d unless i'm living in the upside-down i don't think we did a deal for this pop-up

you're creative types, i'm sure you can appreciate it's important for us to have a say in how our fans encounter the worlds we build. >> i love they created a pop-up. i love netflix has not tried to sue them but is giving them a pass, and i hope they bring back more themed type bars in the future they do well back to university, do you remember the bar, the purple turtle at oxford >> i do. >> i knew would. >> like the cheapest place to get waste ewasted. >> i wouldn't know they had harry potter themed drinks it did well. >> i don't remember those. >> okay. >> i remember the prices very, very low >> good to know. this is a good safety one, wayz and spotify taking your car rides to the next level. drivers will be soon able to blast their songs from spotify through waze play lists will be set to auto play once the navigation is l t

started. >> that's like factoring into uber and all the others, almost a bit slow to do it. >> yeah. >> there we go landon, thank you very much. >> thank you now moving on from trending to sports. week two of the nfl season wrapped up last night. the detroit lions dominated. check out this play in the fourth quarter ing a nagnew here ran for the touchdown. the giants record falls to 0-2 disappointing for them. still to come, forget the iphone, why apple's future success relies on the app store adat argument in the must-res. "worldwide exchange" back in a couple inutes.

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welcome back to "worldwide exchange." if you're just waking up, let's get you up to speed on the market action. asia mostly negative apart from the nikkei, which was hugely higher up 2%. it was closed yesterday. playing catch up yesterday european trade is sort of flat mixed. germany has gained throughout the session. it's still negative. it's gained after business confidence was better than expected the ftse and france are slightly higher. u.s. futures are flat coming off record closes again for the dow and s&p. a record intraday high

we gained about 3% for the dow nasdaq up 0.1% the s&p in between financials led the way higher yesterday. pretty much flat in the premarket today. a bit of red for the nasdaq. to the must read segment, i picked an argument in "the financial times" titled now apple needs to reinvent the digital economy. the smartphone has evolved in ways that steve jobs did not envision his primary purpose was to reinvent the telephone by throwing in an ipod and a web browser, but the subsequent launch of the app store that super charged the iphone's growth and created a branch of economic activity. the iphone's killer app was a store for other peoples apps and an interesting perspective after the apple launch last week, we focussed around the launch on all sorts of detail observe the phone's hardware, the screen, the sizes, but this article arguing that's not what will drive the next leg of

growth t needs to be developing the ios platform we are approaching the top of the hour. the team is getting ready for "squawk box. becky quick has a look at what's coming up. good morning >> good morning. how are you. >> i'm very well yourself >> i'm good. >> you have tried to get around new york with the traffic? >> nightmare >> nightmare >> nightmare indeed. it's because the u.n. is in town it's on the front of all the newspapers donald trump will give his speech today we will talk about the u.n. and be joined by someone who will talk to us about how you have public and private partnerships and how that can achieve goals to end hunger and poverty. she will talk about how they need more help from the private sector we have scott mather who is the pimco chief investment officer he is rising up to meet some of those challenges he will talk about new bonds they hope to develop that will do just that, fund investments

in things that are making sure they make progress on some of these goals the u.n. is focused on that's one issue also we have jeff daily, the farmer's group ceo he will join us to talk about what's happening with both hurricanes harvey and irma and the after-effects. stle 9,0 they have 9,000 claims in from florida. 40,000 claims from texas we'll talk about the impact of this how they are making sure that they follow through on some of these claims and what it will mean for the bottom line we are also joined by ray dalio, the hedge fund guru, founder of bridgewater associates he has new plans about how they can take what they learned and export that, make sure other people can learn from it we'll talk to him about all of those things today hey, like i said g day to , gooe in new york getting around >> becky quick, thank you very much >> thank you >> we look forward to that still to come, counting down

to the fed policymakers kick off two-day meeting in new york today. oray tuned, you're watching "wldwide exchange" on cnbc ♪ ♪ ♪ ♪ ♪ ♪

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welcome back to "worldwide exchange." let's look in on the ten-year treasury note. yields have moved markedly higher we were down to 2.05%, up above 2.22% as we speak. of course we areheading into a fed meeting today. we'll get the decision tomorrow. let's disus wicuss that with bre kasman from jpmorgan let's talk about ma move hithat higher in yields it's a marked move higher in yields has that been driven by general global risk sentiment or expec expectations of what the fed might do today and tomorrow? >> i think it's about both the continued good signs on the global and u.s. economy as well

as the idea partly off of what we saw in the last inflation report that the fed is not done, and that there's still a good chance the fed will be moving not only in december but multiple times as we move into 2018 >> is that what moves the yield curve and the dollar, expectations of rate hikes as opposed to the balance sheet normalization that we are expecting to happen as early as today and tomorrow if we get that balance sheet normalization do we not see a reaction in the yield curve? >> the balance sheet normalization is important it's been so well telegraphed with lots of detail that we believe the market is already processing that to a large degree what's been news, i think, is the economy and to some degree not just the fed but the broader messaging we're getting from central banks, which includes the surprise we got from the bank of england last week. >> do you think that would force the fed's hand if they see other central banks increasing rates and yields rising around the

rest of the word >> i don't think that's the way to look at it. we're seeing central banks as a group in the advanced economies feel more comfortable with growth and also feel somewhat less comfortable with the complacency of markets in terms of how they're seeing what is a significant normalization procession in monetary policy that will need to take place over the next couple of years. >> as you mentioned, the balance sheet normalization part of this has been well telegraphed, including some details on how they plan to do it what other details do you want to hear from them if it is all confirmed and announced over the next 24 hours? >> the one detail we'll need to know that they haven't announced is when they'll start. will they start it after the meeting? will they wait until the beginning of october or beyond that i don't think that's an important detail the detail, which is really important but we're not likely to hear anything much on that tomorrow is where are they going in terms of the equilibrium level of the balance sheet

that's an important variable we think it's $3 trillion. that's way up from where they started before the financial crisis i don't think they'll talk about that at this point >> bruce, let's talk about the picture around the rest of the world. it has been encouraging, albei it was the encouragement at the start of the year? have things come off the boil a bit in the recent weeks and months. >> i don't think that's the case at all i think we were moving into the year shaking off the drags that were holding us back in 2014 through 2016 and what's happened more recently is we're seeing a reinforcing strength show up in the global economy, as sentiment rises, financial condition supports are boosting activity in a broad based way i would note probably the big story here is the capital spending side of the equation. >> that the main reason that encouragement around the rest of the world why we have seen dollar weakness so far this year is it perhaps due a rebound if we consider the fact that at

least the first central bank that will move on things like balance sheet normalization is the fed? >> i think the dollar move has three components the first and most important one is the pick up in growth has been more outside the u.s., it's been in em and europe. expectations about u.s. policy, which got optimistic after the election have faded. the third is the fed the fed was price the much more passively as we saw the inflation news come down in the spring that's the one which i think is changing now and perhaps provides a bit of support for the dollar going forward >> bruce, thank you very much for joining me bruce kasman of jpmorgan just about 30 seconds or so to go let's look in on what futures are doing at this hour comes off a day of gains, albeit slight gains record intraday high but not close for the nasdaq the dow called higher by 40 points this morning. the s&p by 9 points. the nasdaq just a fraction lower.

coming off slight gains in europe and losses in asia apart from the nikkei which is up sharply. that's it for "worldwide exchange." thank you very much for joining me quawk box" is next it's not just a donation. it's a warm blanket. it's a bottle of clean water. it's a roof and a bed. it's knowing someone cares. it's feeling safe. it's a today that's better than yesterday. every dollar you can spare helps so much more than you can imagine.

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breaking news. hurricane maria slams into the caribbean as a category 5 storm. it's headed towards puerto rico. the latest on the storm's path is straight ahead. markets right now, the fed kicking off a two-day meeting, and president trump heads to the u.n. we'll tell you what else is on the docket and toys "r" us files for bankruptcy protection ahead of the holiday season it's tuesday, september 19, 2017 "squawk box" begins 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. yesterday the dow was higher, s&p and the nasdaq were, too this morning the dow futures are indicated up once again. we saw a gain of 63 points yesterday. futures indicated up 37 points s&p 500 futures indicated up by 9. the nasdaq down by just over 2 points overnight in asia, the nikkei, which was open again after a closed session the day before, up by 2% hang seng index was weaker down by almost 0.4%. shanghai composite down by 0.2%. in europe this morning, in the early trading, things look mixed. the ftse is up by