up, up and away. the record rally continues on wall street as the s&p 500 posts its best start to a year since 1987 oil surging to a three-year high we'll tell you what's driving that move sg. and break out your rally caps, one investor says this market could jump another 30%. it's wednesday, january 10, 2018, "worldwide exchange" begins right now ♪ good morning a very warm welcome to "worldwide exchange" on cnbc i'm wilfred frost. let's get to the global market

picture. comes off a day of record closes once again the gains were relatively slight they did come off the highs during the course of the feenl few ho final few hours of the session the telecom sector was the worst. healthcare was the best. the nasdaq was the laggard of the three. oil hitting a three-year high thanks to ongoing production cuts led by opec gained about 2% yesterday. up another 0.7%. 63.4, so a great start to the year for oil prices. that continued not just a strong year but a strong q4 in particular ten-year treasury note for you yields did move higher yesterday. for once it's been the longer end of the curve that moved higher, faster than the shorter end.

2.546. this time yesterday flirting with the 2.5 level, yesterday it picked up steam. the 30-year moved noticeably higher people talking about the fact that this is a surprise underlying tapering from the japanese that's driving global bond prices higher that shows the way that the u.s. has been anchored by the international picture over the course of the last couple of years let's look at markets around the rest of the world. asia is down today it's been a very strong start to the year it's mixed as opposed to down. japan down, hong kong and shanghai slightly higher germany is down 0.4% slight gains for most of the other markets. looking at currencies, the dollar moved higher yesterday but only slightly. the move in yields was higher than the move in the dollar. today we're seeing dollar weakness against the yen quite noticeable again that talk, more talk of whether or not the japanese are starting

to taper the bond buying purchase, a slight move of tightening has made it a decent move for the yen the move in the dollar against the euro and the pound less pronounced let's drill down on oil's big move higher. joining me is richard madison from energy aspects. good morning to you. thank you very much for joining me clearly a decent move higher for oil at the start of the year including yesterday what was the reason for yesterday's 2% jump >> i think this is becoming a technical rally. there's some fundamental support from the cold weather at the start of the year, from a couple of supply issues, and we don't have the overhang we had a couple years ago that's putting a much more constructive position on it. the pace of the rally over the last few days has maybe been a bit overdone what about the cold weather, is that a factor?

>> absolutely. i think that in the u.s. and parts of asia that helps in the winter because it pulls down fuel for heating, but as we look to the next few week there's are forecasts of much milder weather. so we might see some of that support for refining margins from fuel oil, from diesel weakening just in the short-term >> will u.s. supply and rising production here stateside be something that could pull prices back in some point in 2018 if so, when? >> i think this is a big factor that everybody in the market is watching we saw some strong growth outperform as we go into 2018 we expect a strong year for u.s. production growth but we also think globally the market will need

that additional production and the main thing will be to watch how much can the international market absorb u.s. crude exports. a big shift from previous years where the u.s. was the big emportee importer it's still importing but also exporting more with global demand growth strong, it can absorb that as we look at prices and where they are now, there's likely to be a seasonal pullback in pricing later this quarter it will be linked most likely to refineries going into maintenance so a softening in crude demand and u.s. production growth will be a factor in that. but it will be temporary and then we'll get back on a constructive course for prices in the latter part of q2 and into the second half of the year >> richard, thank you very much for joining us let's turn back to currencies dollar board for you again decent move in the yen today, up 0.8% that's where we will start in

terms of discussions david bloom joins me, global head of hsbc long time no see >> yeah. yeah happy new year to you and your viewers. >> and to you. let's talk about that yen move a lot of talk about the quiet tapering that they may have begun. is that the reason for the yen move how significant is it? >> i think you hit the nail on the head when you said quiet when the fed did it, it was with thunder and lightning. when the ecb announced it, it was already happening. the japanese have been buying less and less and less and it's becoming very apparent to the market that they might be an exiteer as we call them, and that could cause a stronger yen. yes, we believe in a stronger yen at hsbc, we want to buy anyone exiting from ultra loose monetary policy. does that include the euro then? >> no. i think the euro is done the ecb announced an exit program last year.

the euro went from 1.05 to 1.20. it was super bullish we don't get everything right, we got that right, but now we're flat on the euro it's more like norway, sweden, maybe japan, they are all exiteers we saw something pronounced today in sweden. >> we did, from the rix bank the aussie dollar are not exiting ultra loose policy, are they never got super loose there. >> well, the point is when they do a turnaround, compared to other economies, no. but their economy has been doing quite well but it's the turnaround from loose policy you know, australia is saying, no, we're not going to hike. we're not going to hike. one day you wake up and they say, we'll hike, like canada last year and you get a 10% depreciation in currency that's why we like that. those central banks will turn the corner, when they do, those currencies will rock >> what's your view on sterling?

you were one of the names that expected it to fall significantly last year. which it did the opposite of where do you stand now >> thanks for reminding viewers of one of my failures. that's very kind of you. appreciate coming on the show. i had to tell viewers i got euro right, i suppose i was too bearish on sterling last year. the bank of england raised rates. i haven't given up, i'm afraid to say i'm beaten but not completely giving it up i'm worried cyclically, one of the worst performing economies in the g10, politically we have all these worries, structurally, big account deficit and fiscal currencies it's one of the currencies i don't like this year >> in terms of the dollar, you're more optimistic on the dollar what about against other currencies, would you be buying the dollar here or selling it?

>> our view on the dollar is benign that's great news for emerging markets. some of these yields are delicious. when you go to indonesia, india, those countries, if the dollar is a drifting dollar, it's not a bull market or bear market it goes up and down. if you collect 4%, 5%, 6%, 7% yields, they're irresistible i'm already dribbling out the side of my mouth when i think about it. >> what word do you use for germany's.4% in contrast disgusting >> i don't want to buy the euro against the dollar, when you think of the two currencies, i can't differentiate the two at the moment i have no big view on euro/dollar. that might sound like a currency we're interested in, how boring is that but it's exciting. you don't want, you know, big moves in the dollar.

i don't think there's a big trend in the dollar either up or down i think it's -- like you do in equities, a stock picker's environment. in currencies, if you choose wisely, there's lots to be made. >> david, as ever, thank you very much. good to see you. david bloom of hsbc. if you're yield hungry there's delicious and irresistible yields in emerging markets. bill miller making a bold call on the markets. leslie picker has the details. >> the markets have been on a tear for some time that is prompting fears that we're at a top but bill miller says fear not. he's looking at one key metric that could signal we're headed higher >> i think that's still to come, if we'll get it. it will be driven by -- you mentioned earlier about the ten-year yields. those ten-year yields go through 2.60 and head towards 3.0, we could have the melt up we had in 2013 when the market was up 30%. >> the ten-year treasury yield

hit the highest level yesterday at 2.55% but miller believes the stock market could get another boost from lower corporate tax rates >> you can see the market wants to go up we've got the tax cut bill, i think that was great from a corporate standpoint and most of the rest of it was political christmas tree ornament doings but i think that the economy looks great. usually even if we get the economy accelerating, i think that inflation is probably a year or so away from becoming anybody's concern. i do think the curve is probably going to continue to shift up. >>er is considered one of the best investors ever after beating the market for 15 straight years when he worked for legg mason he said he likes airline stocks and the banks. here's what he said about financials >> we can see the banks getting a return in the high teens, they're not there yet. that would -- with the fed

raising rates, that helps them they're all super liquid the roll back in regulations helps them all the things people are pointing to are good for banks if they were reflected in valuations, we wouldn't be so keen on it, but they don't >> you can find more on bill miller's latest market calls on cnbc.com >> financials becoming increasingly attractive if yields do rise i think it's fascinating debate in terms of rising yields and what that means for equities more broadly as the yields are rising, money is coming out of bonds, probably going into equities. once we get to the peak of yields, that's a different question clearly yields are more attractive relative to where they are now >> exactly the topic that always comes up with hedge managers is inflation and what that means for various markets they're invested in. especially talking to hedge funds in fixed income and equities and have more of a risk neutral portfolio. they look at this, they look at what's been going on with qe and

when the market does turn what does that mean for a basket of different asset classes or their portfolio? it's something that a lot of hedge fund managers are grappling with, being able to protect against the down side because we're in such unprecedented territory here >> leslie picker there, thank you very much. well worth going to cnbc.com for the full interview with bill miller sources tell cnbc toyota and mazda plan to build a 1$1.6 billion assembly plant in huntsville, alabama. the announcement is expected this afternoon the plant will employ about 4,000 workers and build about 300,000 vehicles per year. toyota up 2% in japanese trade nordstrom says same-store sales rose 1.2% during the holidays the retailer was boosted by strong sales at the rack stores. nordstrom is adjusting the full-year earnings outlook slightly higher. it's down 1.1%. domino's pizza says the ceo patrick doyle will step down in june doyle has been ceo since 2010

and oversaw domino's turnaround including the move into online ordering and promotions. that's a pizza chain whose name i can say with great ease. there's a pair of economic reports on the wall street agenda december import prices are out at 8:30 a.m. eastern followed by november wholesale numbers at 10. charles evans and rob kaplan are speaking today lennar and kb home report results before the open. still ahead, a big brexit warning. why the eu is putting some big companies on notice. and crisis in california as a powerful storm triggers massive mud slides we're live on the scene with the latest on that stick around it's not theirs. it's mine. mine. mine. mine. the new lexus rx 350l with three rows for seven passengers.

are you excited about your baby sister coming? experience space for the unexpected with the rx l, part of the rx family. experience amazing at your lexus dealer. can this much love be cleaned by a little bit of dawn ultra? oh yeah one bottle has the grease cleaning power of three bottles of this other liquid. a drop of dawn and grease is gone.

we know life can be hectic. that's why, at xfinity, we've been working hard to simplify your experiences with us. now, with instant text and email updates, you'll always be up to date. you can easily add premium channels, so you don't miss your favorite show. and with just a single word,

find all the answers you're looking for - because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today. welcome back the european union issuing warnings to the uk's biggest companies over a brexit no deal scenario joining me now is peter spiegel news editor from "the financial times. good morning to you. this sort of breaking news that you have had has developed over the last couple of days, and it's that the eu is threatening uk companies and warning them how bad a no deal would be if that's the eventuality is that right? >> that's it let's remember where we were just before the christmas break. theresa may finally at long last reached a divorce deal with brussels, it seemed like financially there was peace and

love breaking out between london and brussels what we've seen since then is the european commission has been quietly sending legal notices to every major uk industry saying you guys get ready because this will be a disaster there is no brexit deal between the eu and britain on what the trading relationship is after brexit you guys will be cut out for the entire european market you have to set up subsidiaries in europe. that's been going on david davis found out about it from industry, he's angry about it this whole peace of love going into christmas, the war has broken out again >> how bad -- how antagonistic a move is this from the eu and michel barnier clearly both sides should all -- both sides and all companies should be preparing for every eventuali eventuality, shouldn't they? >> that's the argument you've heard from brussels yesterday when they were forced to make a comment. they said, look, you have the uk

preparing for a no-deal scenario, pe pthey put aside 3 billion pounds to finance studies, why shouldn't we be warning british companies they also face ramifications in europe if this happens yes, that's true, but it's a bit of strong arming tactics by brussels they're very good at this in terms of negotiations. so it is trying to sort of get british industry to put pressure on the british government to be more accommodating in the negotiations so, yes, it is indeed exactly what i would expect the commission to be doing, but it's hard-ball tactics. >> in terms of the strength of the government right now in the uk, clearly theresa may ended on a high note, some of the positive developments in getting the eu negotiations taken a step forward. she executed a reshuffle over the last couple of days, many framing this now showing how weak she is as opposed to the fact her power had hopefully risen again.

>> yeah. again coming back in the new year, she wanted to show she was in control, she was going to sack some ministers, bring others n in, but two or three others said they didn't want to be sacked, others said they would stay the question with all this stuff is how much practical implication will this have on her able ility to execute brexi and her agenda we've seen an incredibly weak prime minister still able to haltingly, no doubt, but move brexit forward relatively well. she got her deal she needed in december the problem everyone is worried about now is securing a trade deal, securing a transition period by next march that's much harder than securing the divorce deal can a horribly weakened prime minister who can't control her own government bring everyone together to a much more divisive discussion about the future deal with the eu. that's the question facing britain now. that's why we've seen volatility

in the markets, both in the 4fox and the gilt markets it has spurred nervousness here. >> peter, great stuff. up next on "worldwide exchange," crisis in california as a powerful storm triggers massive mud slides we're live with the latest when we come back ♪ james r. and associates. anna. ♪ [phone ringing] baker architects. this is anna baker. this is what our version of financial planning looks like. tomorrow is important, but you're ready to bet on yourself today. spend your life living. find an advisor at northwesternmutual.com.

welcome back to "worldwide exchange." we're keeping an eye on a developing story out of the caribbean. a strong 7.6 earthquake struck in the caribbean sea last night between the coast of honduras and the cayman islands puerto rico and the virgin islands were under a tsunami advisory but that's been removed. officials say there were no early reports of damage on land. another developing story this morning, a powerful rain storm in southern california triggering deadly mud slides kirk hawkins is live in montecito, california with the latest >> reporter: good morning to you. right now we're live in the middle of the 101 freeway, a 30-mile stretch of this highway is shut down a scramble is underway for survivors and access is a big concern at this hour for first responders

as we look at this video, just it's devastating just what has gone on here it was an all-out scramble for first responders as soon as this mudslide began keep in mind this all happened just after 3:45 early in the morning in the middle of the night for many of these residents here a lot of this came as a surprise some residents talked about a wall of mud rushing through their homes. as search and rescue crews worked their way through some of these neighborhoods, in one case they found a young 14-year-old girl and the video of that rescue is just incredible. in another case, there were neighbors that found a small baby and that the baby was rescued and that is the kind of thing that these rescuers are dealing with right now the death toll could go up in the overnight hours we expect an update from authorities later on this

morning. they're concerned that there's a number of -- dozens of people were injured and taken to local hospitals, that there could be fatalities associated with some of those victims but the first responders have stepped up in this area. the coast guard is participating in additionto the local sheriff's departments that are looking for people that may have been caught in this mud and this debris here. and right now as this roadway is closed, it's expected to take at least another 48 hours until it reopens. now back to you. >> kirk, thank you very much for that report. still ahead on "worldwide exchange," the top stories and a round up of the global market picture. talking tech the biggest namesin the industry taking the stage at the annual consumer electronics show we'll tell you what the newly unveiled gadgets are and what to thpect for tech stocks in e year ahead futures pointing slightly lower.

no matter how the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest with confidence.

the nasdaq, s&p 500, russell 2000 and the dow transports have yet to have a down day this year will the rally continue today? betting big on bitcoin how hedge funds are cashing in on the crypto craze. and ikea out with a new ad campaign that has everyone buzzing, and not in a fantastic way. it's wednesday, january 10, 2018, you're watching "worldwide exchange" on cnbc.

♪ good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's look at what the markets are doing. a bit of red across the screen for the three major indices. it's just increased its size of move down this morning in the last half hour 45 points, nearly 50 points for the dow. nasdaq down about 24 s&p down about six yesterday we had gains for the nasdaq, up 0.4%. all three lost steam as we approached the close oil hitting a three-year high. oil prices were up 2% yesterday. up 0.7% for wti today. it's been a great start to the year for wti and brent we saw yields move higher yesterday. so selling of bonds, pushing the yields higher. for once over the last couple of years we've seen the long end

respond more than the short end. we hovered around 2.5 yesterday. 2.57, approaching 2.6. so a big move in the last couple of days. the 30-year moving higher as well banks want that sfeteeper highe yeel curv yield curves slight gains for hong kong and shanghai a blow out week for them for the first week of the year european trade, up 0.4% or so. just mixed today germany pulling back 0.7%. france is lower. ftse and some other markets higher bill miller making a bold call on the markets here's what he said on the closing bell yesterday >> i think that is still to come if we'll get it. it will be driven, if we get it, you mentioned the ten-year yields those ten-year yields go through 2.60 and head towards 3, we could have the melt up we had in 2013 the market was up 30%.

>> ten-year yield again for you, yields pushing higher, 2.45 this morning. let's bring in art hogan good morning thanks for joining us. what is your view on this big move in yields we've seen the last couple of days. is it as bullish as mr. miller suggested? >> it's good news. the good news that comes along with it is the fact that the spread between the 2s and 10s has broadened out. that flattening yield curve, as we head into the new year, it's broadening out a bit that's a sigh of relief. it's a reflection of synchronized global growth but also the bank of japan blinking in terms of what they'll be purchasing in the belly of the curve. love to see it get through 2.60. i think it's a straight line from 2.60 to 3 this year that data reflects what is going on in terms of the pace of the

global economy if we get to a point where we move up to 3% on the ten-year. how long is that bullish for in is it only bullish while that's happening? once it gets there doesn't that make bonds more attractive than they've been for a long time that's a reasonable yield we're talking about. >> yeah. that's such a great question it's an interesting dynamic. if the yield on the ten-year and yields in general are moving higher, that should translate into better earnings and be positive for equities. to your point, you can't have the argument that low interest rates have been good for the markets, so high interest rates are good for the markets as well there's a tipping point where yields on the ten-year is a negative for the market. i don't think that's close to 3% or close to 4% i think typically, you know, if we get to 4.5 or something like that, sometime between now and the next three years, i think you start think being that relationship and say okay, wait

a minute i can get 4.5% on the ten-year, but it's not 3.5%. we're not close to being concerned about that that yield on the ten-year drawing money back in to the bond market. >> interesting set of perspectives as someone who graduated and entered the markets in 2008, 4.5% on the ten yo year is beyond anything that i expected what sector do you think can outperform for the full year and q4 earnings? >> technology always gives us surprising upside. some amazing news out of the consumer electronics show. it will be an upbeat friendly show the biggest surprise is out of consumer discretionary some of the stories going on about holiday shopping season, probably the best holiday shopping season in a decade. consumer discretionary names prized material names sneak in there as

a surpriser. we get disappointment on the financials, but the outlook is terrific in 2018 i think energy probably still a mild disappointment, but i don't think the energy equities have caught up to the energy commodity. that's one of the plays for 2018 as well. coming out of earnings season, maybe mild disappointments there, heading into 2018, you can see a rotation into those groups >> are you concerned that places like europe and japan may not handle the removal of significant monetary stimulus as well as the u.s. has >> if it's doned a ed at a mode pace, the u.s. will be fine. i think the bank of japan and ecb need to get into that telegraphing mode. they need to start talking about our bond buying is slowing down. we're tapering september may be the end of the bond buying in the ecb

only because you stick around too long at the zero bound, and you cause disruptions that really don't need to be there. i think the ecb starts talking about september being the end of the bond buying. tapering before that and i think having synchronized monetary policy would be a positive thing exiting '18 >> art, thank you very much for joining me art hogan there discussing the broader market picture the numbers are officially in hedge fund rueturns were up mor than 8% for the year, making it a good year, but not a great one. leslie, you can frame it. >> that's it it's relative to the market. that's the key hedge fun hedge funds posted their best full-year performance in four years, but an index that compiles hedge fund performance showed gains of 8.5% in a year, that's not quite the resounding

affirmation that the industry needs after years of under-performance, that's because when you look at the s&p 500 including dividends that jumped by nearly 22% or 2.5 times the return of hedge funds. so certain strategies did better than others. none of them outperformed the broader index. fundamental growth did the best returning about 19% according to hfr, that was followed by sector strategies, healthcare and technology on the laggard size, short bias funds declined about 10% on average followed by energy focused funds down almost 3% for the year macro funds which declined almost 1% on average but the real stand-out strategy for investors, cryptocurrency and bitcoin. it's not one that captured the mainstream hedge fund's attention last year but the blockchain index surged 3,000% that's not a typo. another index focused fund on

cryptocurrency jumped 3,175% so there is alpha to be made it's just not where most were investing last year. >> 8% relative to the index is still poor particularly if you're charging 2% and 20% versus mutual funds at a half percent or 1%. they make the argument that we base ourselves against cash, we can make money in every environment, and most of their portfolios are in equities they should be benchmarked against that >> that's the thing, two-thirds of hedge fund assets are in equity driven strategies the challenge is to be a hedge fund manager you're expected to hedge. it's a risky strategy to go long the market and lever up super high to generate alpha above the s&p 500. you're expected to hedge to protect against the risk of a downturn the challenge in markets like we've seen is the broader indexes keep going up. so after four years of this, it

is increasingly more difficult for hedge fund managers to justify those fees >> in terms of the cryptocurrency comparison, a bit harsh on the hedge funds not many mainstream mutual funds were exposed to that it's not something that any big managers we know of traditional equity funds or bond funds got exposure to. is that right? t >> the estimates are $2 billion in there right now, that's smaller than the reported $3 million reported a small number that's invested in cryptocurrency and blockchain related strategies that said people are looking at that, especially retail investors, investors who put their money with hedge funds and say there is alpha to be made out there. whether or not it's a speculative bubble as some report it to be, why aren't hedge funds chasing those

riskier alpha generating strategies the s&p 500 up 21% could just put my money there >> quickly, the net aun gains or loss losses, what happened there? >> aum gained in 2017. part of that is because of assets rising. they generated positive returns. they're at a report 3$3.1 trillion for the year, but the interesting thing is now there's studies showing hedge funds with leverage and hedging and high fees and certain regulatory protocols represent 8$800 billin of those assets. >> depends on the definition, which is often hard to get to the bottom of. thank you very much for that the annual consumer electronics show is under way in las vegas. nearly 4,000 companies and startups will be showing off

their newest innovations with a focus on ai. joining me from vegas is aaron amy co-founder and ceo of brilliant which specializes in smart lighting and other home automation products. thank you very much for joining me tell us about brilliant and in particular the way you can control all home devices in one particular smart place >> brilliant gives you new smart home control that replaces a standard light switch and gives you access to and control over all your smart home devices by touch and voice. >> does that link in with devices that we talked about often on this show, whether it's amazon, alexa, google home and the like and other appliances? >> it does so you can control it with both amazon alexa and the google assistant.

it interfaces with all other smart home devices, whether music, temperature, whether it's locks, et cetera >> so in your view of those voice controlled home devices, google, amazon, anyone else's, which is leading the pack in terms of best technology, best consumer innovation? >> it's an interesting story last year was all about alexa and amazon had the story of the show this year google's assistant has taken a lot of the buzz. part of that is the rise of hybrid modes, where amazon introduced earlier this year with the echo show, the ability to give a verbal command and get back a visual response and be able to manipulate that on the screen google now at ces has announced a slew of partnerships and taken a very partner-heavy model with this, where they have lg, sony and jbl introducing these smart displaying some of which are tablets, some of which are speakers, but give

that you mixed mode capability where you can tell it to do something, you get back a visual response on the screen that's a compelling experience voice is great for some things, but other things you want a visual display for with this you get the best of both worlds. >> in terms of other smartphonemakers, like apple which has siri, but doesn't have a real clear home device, is this a threat for smartphone manufacturers because people will start doing a lot of things they traditionally did on smartphones with their home activated device >> i don't think it's a threat to smartphones as it is a loss of the initial attraction that smartphones had in home control. they're great for remote control when you're outside the home and for security, when you're inside the home it makes more sense to have an ambient computing capability rather than a smartphone if you have houseguests or children, they don't have a

smartphone or right apps, they need to use the house. this ambient computing ability provided by echo, google home and others is a compelling use case i believe smartphones will keep on going down that path. what we're seeing in terms of winners and losers is that it's turning into a two-horse race between amazon and google. apple has really not capitalized on their early leadership with siri into a more general home control. samsung made a series of announcements with their bixby assistant, but they're late to the game and restricted to the samsung ecosystem. even jbl made a series of announcements with google assistant where they're supporting it on televisions, they have an audio product with it and headphones. >> thank you very much for

joining us i guess it's around 3:00 a.m. there in vegas what's next for you this morning? are you hitting the tables or a nightclub? >> vegas never sleeps, but a lot of work to do here >> very diplomatic answer. thank you very much. the founder and ceo of brilliant. coming up, the top trending stories including a key to a long life. betty white sharing the secret weapon she claims helped her live 95 years and many more. and ikea's new ad is going viral. why the crib promotion is sending the teet iinrnnto a frenzy

welcome back to "worldwide exchange." i'm for our top trending stories. leslie picker has all of what's buzzing. >> that's right. betty white has finally unveiled her secret for living a long life the hollywood icon who turned 95 last year credits her longevity to vodka and hot dogs. adding "probably in that order." she also says enjoying life is key, that it's important to enhance the positives in your life rather than the negatives >> i love this >> i love it, too. >> i'm not sure i would go with vodka and hot dogs, but favorite alcohol and junk food, done. >> more of a begginn gin and --

>> no not gin, but beer and -- the theme is there successful people lived long and they'll live long wer ther withs recipe >> forget green smoothies and sleep. if you were hoping to get behind a scenes intragram look as life as a royal, you're out of luck. markle is off all social media markle shut down her instagram and twitter and her lifestyle website. >> doesn't come as a surprise. this is very royal family type thing to do. i bet they still have a private one that no one knows what the names are, which might be what some others do. >> >> have you found this special secret >> no. >> have you looked for it? >> no haven't looked for it. i'm not surprised by this. there's the official accounts when they release engagement photos, baby photos, we had

princess charlotte's first day of school photos >> thank goodness. >> but not a surprise. there we go. >> maybe we'll get her behind-the-scenes life as a royal through "the crown" viewing. >> years to catch up that's why it's such an amazing show so much room to run with it ikea launching a unique ad campaign that has all of social media talking. they are rolling out an advertisement for their baby cribs. ikea is encouraging women to actually pee on the ad if they're pregnant, a special discounted price for the crib will be revealed this is all apparently thanks to technology similar to that of real pregnancy test kits >> i just -- i'm speechless. who would do this? >> can they not just trust the woman who says she's pregnant? also, don't women who are pregnant tend to oftentimes just

look pregnant? >> just gross. on every level it's not like outrageously controversial like the h & m advertisement yesterday. who would go for it? wlofrnlgts is t >> who is the cashier who takes the ad >> oh, please. maybe it's a swedish thing, i don't know leslie, thank you very much. still ahead, the major indices hitting record highs as earnings season gets ready to kick off we'll tell you which sectors to watch. going to break, let's check in on futures pointing lower losses have gained steam or lost steam, which ever way you want to frame it. they're lower, significantly lower. 134 points that's a big move in the last 15 minutes. we were down 50 points, now down 135 potsin we'll break down the reasons when we come back.

welcome back a bit of a selloff in the futures markets in the last 20 minutes, driven by moves in japan. you can see the selloff in the dollar against the yen the yen getting stronger has moved quite significantly in the last half hour or so already a percent move, it moved yesterday, this on talks that japan may be quietly tightening and piulling back the bopd morn than expected. a decent move in the last couple of days, a decent move higher in the last couple of minutes or last hour or so. if we look at what that's done for the ten-year in the u.s., we pushed comfortably through 2.5%. heading close to 2.6 we're now on the verge of 2.6. again, a rise in yields that is sparked by global moves,

particularly japan, dragging yields higher in the u.s yesterday that was good for equity markets seen as a bullish signal we lost some steam at the end of the session. let's look at futures this morning. they lost ground throughout the course of the show down 120 points on the dow talley what do you think about this move in yields, is it a good thing or a bad thing? >> insofar as it's a reflection of economic growth, it's a good thing for equities and kind of enforces this trend of positive earnings growth that we've been seeing. >> terms of earnings, you think the positivity continues this quarter? >> i do. but we're starting to see a slightly different dynamic and the change this time around is -- estimates have stopped falling in a meaningful way for the first time in quite some time going forward it will be more

difficult for companies to have surprise earnings. >> what level of the yields, short end or the long end do you get concerned about the effect of tightening in the economy >> i would guess that fair value estimate for the ten-year is 3%. that's the long-term trend of nominal gdp growth in the u.s. we would need to see something meaningfully above that to signal tightening in conditions here in the u.s. >> what about tightening around the rest of the world. do you think the rise in yields could hurt global growth this year >> i don't think that it would hurt growth. it would perhaps change the tailwind in a marginal sense but this is something that we've just simply got to come to grips with as investors after a long period of crisis era monetary

settings >> futures pointing lower. thiple digit declines for e dow which moved significantly in the last few minutes "squawk box" is next thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember.

good morning record run the s&p off to its best start to a year since 1987 earnings season kicks off. crude continues its climb as does the ten-year, hitting the highest level since 2014 >> made in america, toyota and mazda announcing plans to build a 1$1.6 billion assembly plant n alabama. it's wednesday, january 10, 2018

"squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box." good morning you hear them? i love bitcoin in the usa. welcome to "squawk box." we're live at the nasdaq market site in times square i'm melissa lee with joe kernen. joining us is brian kelly, founder of brian kelly capital we will be sure to talk about bitcoin. >> not a horrible year alabama much better than your team, notre dame you don't look anything like that guy >> you know what's funny on twitter, every saturday if there's a bad play -- i take the heat >> you do. >> yeah. >> a check of u.s. equities at this hour. yesterday it was a record day. the sixth closing record high in a row for the s&p as well as the