the perfect streak comes to an end the nasdaq and s&p 500 posting their first losses of the year as concerns out of china and canada weigh on investors. the death toll rises in southern california as devastating mud slides sweep through the region we have the latest from the ground. and a crypto crackdown bitcoin under pressure as the third largest cryptocurrency market prepares a trading ban. it's thursday, january 11, 2018. "worldwide exchange" begins now. ♪

good morning. welcome to "worldwide exchange." i'm wilfred frost. >> i'm courtney reagan >> let's get to the global market picture declines yesterday, albeit just slight declines, between 10 basis points and 20 basis points we are still up week to date coming into today, a quarter percent. it looks like we'll add to that, about 26 points higher on the dow this morning the story of the week has not been equities so much as bonds significant move higher in yields especially in the long end we've seen a steepening of the curve in the last couple of days we did not quite hit 2.6% on the ten-year yesterday we reached 2.597 the rise in yields has since abated since the peaks of yesterday. 2.54 we stand at today significantly higher than friday's close >> look at the trading action from around the world. starting in asia

a mixed picture in asia. mainland china did see equities turn in higher at the end of the session. the nikkei was down 0.3%, as was the cob p kospi was down a half percent. the shanghai logged some slight gains. bitcoin slipping more than 11% thursday after south korea said it was preparing a bill to ban all cryptocurrency trading that's a big mover overseas because of the biggest market in seoul if you look at what was moving in those markets, chipmakers were down along with automakers and manufacturers look at what was going on in europe marginally mixed to start out trade. you can see here we are ever so slightly higher for most of the major european indices so the german dax is at least extending yesterday's losses into the early going today tesco shares lower after missing christmas forecasts. one of the large uk retailers,

pandora had shares down sharply after profit margins will decline for several years. >> fascinating to see banks outperform yesterday as yields rose let's look at bitcoin. tumbling on the news that south korea is planning to ban trading of the currency. it is down about 8% or so this morning. the mid 3,000 level. as for broader currency markets, the dollar softened. mainly because of such a big move upwards in the dollar/yen the yen was higher by over 1%. it was the spark for higher yields globally. yields rose in japan more than they did elsewhere

the yen reacting more to the upside today as you can see, we have a bit of dollar strength against the british pound and the yen. the euro is flat euro has pulled back from some of its recent highs. checking in on commodities a look at the price of wti as well as brent oil. you can see here that we are slightly higher. brent is higher by 0.4% -- or wti is higher by 0.4%. brent crude is higher by a third of a percent on wednesday, for wpi, sti sett up 1%. and gold to round things out, on wednesday also gaining about 0.4% breaking a two-day losing streak hitting some intraday highs going back to september. >> our top story, china

responding to reports that it could trim its u.s. treasury holdings eunice yoon has the details. >> reporter: well the agency that manages the country's foreign currency reserve put out a statement on its website suggesting that the report might have quoted wrong information and was fake news. the regulator says china manages and invests with a principle of diversification, and that it invests its investment in u.s. treasury bonds is market driven. after the regulators comments, the u.s. ten-year treasury yield edged down to 2.5366%. the dollar gained 0.3% against the japanese yen and just to give you some background, occasionally we see these scares that china could potentially sell down some of its u.s. treasuries and china is the largest holder of u.s.

government debt. and last checked it holds 1.$1. trillion worth but what we've seen in the past is that the number does fluctuate a bit. for example in 2016 we saw the government really pairing back some of its u.s. treasury holdings because it was trying to defend the ailing renminbi. on the whole it is kind of relatively stable. a lot of people here who follow the u.s. treasury holdings say that china is stuck and trapped in a way in holding a lot of these u.s. treasuries. because it does run a current account, that is very large. and it has a lot of dlafr of d needs to put them someplace liquid the real alternative is in u.s. treasuries >> do they actually call this fake news? if so, how often is this a phrase that's kind of getting into chinese mandarin parlance

>> they did call it fake news. actually it is getting more and more into the vernacular here. even for us reporting, if you do get -- for example, i did some reporting on the steel industry at one point i was detained after being detained, i was asked to wait for the authorities to come just to make sure i wasn't a fake news journalist >> there we go. >> the idea of fake news is much more in the speak here >> i'm sure the mandarin won't catch on quite as much over here clearly the meaning is the same. eunice yoon for us in china. checking in on treasuries this morning yields did not quite cross 2.6 yesterday. they just have come back a bit from that on the ten-year. joining us now is larry mcdonell head of global macro strategy at acg analytics.

good morning to you. >> hi. >> let's talk about this rise in yields it feels like it is sparked by an international rise in yields, especially in japan. what do you think that means going forward in terms of whether it continues in the u.s. or whether it is going to be a temporary phenomenon >> well, first for people watching us right now that are long equities, our bear traps report fed model is really flashing red because that looks at the s&p yield versus price, so earnings within the s&p, total earnings versus price, versus the ten-year treasury so the spread between those two is close to eight-month tights that tells you that that bond yields in the u.s. are starting to -- they're the most competitive with equities in years. we can get into what triggered this, if you'd like.

>> let's go back to your fist poi first point. it might be closer than in years, but if you compare the ten-year treasury yield adjusted for inflation, which is the fair comparison because equities are real assets, they do adjust for inflation, bonds don't, the gap is big the real yield on the ten-year is about a half percent. >> that's right. that's a good point. but you have to remember inflation expectations have broken a five-year down trend line so has the ten-year. so you're talking about a major technical move here that was developing well before what happened in china. ten-years are yielding 1.4% higher than u.s. treasuries. so that's a competitive takeaway if you're in china or if you're an international investor, you can own some of these other higher yielding securities, and

hedge out the currency risk and get a better deal than treasuries that's partially responsible for pushing treasury yields up higher >> we got close to the 2.6% yield on the ten-year, we didn't quite get there. if we push above it, what does that signal to you more broadly about how investors are feeling now? frnlg>> technically short-term t will be tough to get through that level that's been supported twice in the past nine months probably going to bounce off that, rally back to 2.50 back in 2018, as we've been writing in the fourth quarter, our trade for 2018 is short treasuries and if you can't get short treasuries, the second best thing is to be long commodities. at the end of the day about a trillion dollars in passive money has gone into the bond risk parody. as money moves out of that, as 2%, 3%, 4% of that moves into

commodities, you're talking about a phenomenal breakout year, mean reversion, spectacular mean reversion where commodities will catch up with equities we think that's the place to be in 2018. >> going back to the cause of the spike in yields, was it japan? if it was, when that kind of international rise in yields stops, we go back to just short-end fed rate hikes in the u.s., do we see a flattening of the curve again stateside? >> that's a big point. japan clearly, i think, wants a steeper curve. they have been hinting they would be buying less ten-years if you look back to the u.s., our firms in washington, we spen d a lot of time on the hill, they're talking about infrastructure, the only way to fund that in the current budget regime is by deficit spending. trump and the republicans will try to, as they head towards the

midterms, be focused on infrastructure if that doesn't work, trade. trait protecti trade protectionism at the end of the day, you will have more expensive goods coming into the u.s. both of those forces are inflationary be short bonds, long commodities in 2018. >> larry, enjoy your time in london say hi for me. >> domino's pizza ceo patrick doyle giving more details on his decision to leave the company. let's go to kate rogers with more everyone is leaving their pizza companies. >> that's so true. doyle sitting down with jim cramer last night and he explained his decision to leave the company after eight years at the helm saying it was the right time to do it. he also told jim he's confident in the company's future. >> i couldn't be more thrill ed

that rich alison is going to be the next ceo russell wiener is going to be the chief operating officer. we have an amazing team in place and so i would not leave unless i was confident that this business was go to do even better going forward >> jim asked about what is next. here's what doyle said >> i'm thinking about nothing but dom flinos until midnight je 30th then my wife and i will take six months, figure out what our next adventure is going to be i'm not going to retire. i'm too young for that i'll keep doing something, but i have no idea what that will look like >> shares of dominos have climbed more than 2,000 percent under doyle. they're up fractionally in the premarket. recode said during his tenure dominos grew faster than all of the f.a.n.g. stocks with the exception of netflix incredible >> wow, that is incredible if he says he is looking for

something that's next, he's not retiring, any guesses? >> there was quite a bit of buzz about him taking over for steve els at chipotle. they are looking for a ceo the company is similarly troubled the way dominos was when doyle took over jim reminded folks he took that stock from $10 to $200 maybe that could be a fit. chipotle declined to comment >> thank you very much we're following a developing story out of southern california the death toll climbed to 17 as mud slides swept through the region gene f >> reporter: it's a surreal scene, mangled cars in the pristine coastline of santa barbara. a 30-mile stretch of the bumper to bumper highway 101 fult onl y of mud and water and family members who feel trapped in a nightmare

>> i don't know how far she could have been swept. i don't know i don't know where she is. >> reporter: many of the missing are older retirees and children who didn't have the strength to stand up to the mud that tried to bury them >> i don't know where my parents are. it's a horrific feeling. total devastation. the place looks like war zone. >> reporter: among the missing are the brother and father of 14-year-old lauren canton whose rescue yesterday made headlines around the world among those still stuck are this couple, eight months pregnant. >> the fires now this. we're completely trapped now she could go into labor at any time other than calling 911 and trying to get somebody in here, we don't know what to do >> reporter: the affects of this mudslide will last beyond this week highway 101 will remain shut down through the holiday weekend. officials say 1500 homes are still threatened by the

rain-soaked hills. jinah kim, nbc news. >> thank you very much for that report still ahead on "worldwide exchange," a crypto crackdown. south korea moves towards a trading ban. and why shares of xerox are up so big isth morning stick around (nadia white) the moment a fish is pulled out from the water, it's a race against time. and keeping it in the right conditions is the best way to get that fish to your plate safely. (dane chauvel) sometimes the product arrives, and the cold chain has been interrupted, and we need to be able to identify where in the cold chain that occurred. (tom villa) we took our world class network, and we developed devices to track environmental conditions. this device allows people to understand what's happening with the location, but also if it's too hot, if it's too cold,

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welcome back let's get you up to speed on the market action. we're pointing higher. declines in all three indices yesterday. just slight declines still higher about a quarter percent for the week oil prices rose yesterday about a percent. 63.8 the price of wti. xerox is reportedly in talks to strike a deal with japan's fuji film. the "wall street journal" says it is discussing a range of options including a change of control in xerox a full takeover by fuji film is not on the table shares of xerox are spiking higher, up more than 10% in the early going. kb homes fourth quarter profit and revenue beat forecasts. the company expects solid demand for housing in 2018 citing economic trends like healthy employment and rising home prices

progress software swung to a profit in the fourth quarter the company is projecting revenues to come in slightly above analysts estimates this year those shares are higher by 8.5% in the premarket the global operations chief at ge's baker hughes unit resigned the shakeup comes a few months after ge said it was considering shedding its 62% stake in the oil services firm as it focuses on its core business ge completed its buyout of baker hughes last year toyota is projecting total u.s. auto sales will come in at about 16.8 million vehicles this year u.s. sales fell 2% in 2017 after hitting a record high in 2016. that's raised concerns about excess inventory of unsold new cars that could force automakers to cut prices. toyota is off a percent this morning. waste management will pay a special $2,000 bonus to every hourly employee and others not on an incentive plan

about 34,000 people could be in line to receive the bonus. the company says the move follows the new u.s. tax law which drops the corporate rate to 21% bitcoin shares are under pressure on news that south korea is planning to ban cryptocurrency trading arjun kharpal is live in london with details arjun? >> reporter: this proposal come from the ministry of justice in south korea, they said they're preparing a bill to ban cryptocurrency trading through exchanges. it's important to note this has not been finalized yet it could take months or years to get through the legislative system but the government has been worried for some time about cryptocurrency trading in south korea. it's a country where there are hefty premiums on the exchange there's for the price of bitcoin. the government likened it to gambling there is a bit of confusion at the moment the ministry of finance later came out with a statement saying we have not heard about this proposal from the ministry of justice. it's all up in the air, but the

damage was done this morning about 1 $00 billion of value was wiped off the entire cryptocurrency market. many of the major coins, ethereum, ripple, bitcoin were all off fairly heavily they have pared some of those losses the korean market is key, it accounts for 14% of ethereum trade, 30% for ripple a bit less for bitcoin. the context for all of this is that there's huge run ups in the prices in many of the cryptocurrencies, so there could be a sense of profit taking on the back of this bad news for people who have been able to get those gains. it's looking like 2018 could be a key year that regulators are really starting to look at cryptocurrency space back to you. >> thank you very much for that. up next, countdown to bank earnings what you need to watch when the big six porert results that starts on friday with jpmorgan and wells fargo these birds once affected by oil

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earnings calls, in particular how it relates to tax reform, the likelihood benefits are competed away or reinvested, the impact of more obscure elements of the bill such as the base erosion anti-abuse tax or b.e.a.t. management will need to address the sudden spike in yields we've seen in the last few weeks, both tax reform and those rising rates should be bullish for forward looking commentary from management morgan stanley should boost 2018 eps by a median of 16% when it comes to the earnings themselves, some things to watch out for. tax reform is bad for this quarter due to the one-off write downs. second, trading will be down again. while consensus forecast is for about 16% year on year decline, q4 last year was the last of the tough comparatives deutsche bank guided down this past week. and loan growth has slowed

driven by commercial and industrial overall, despite tough comparatives for the quarter, optimism about the future has supported bank share prices so far this year. the banks index is up about 4% year-to-date it's been a good last couple of days as well >> thanks. still ahead a round up of the topstories and a check on the global markets. and could canada derail the trump rally? a report from washington othn at topic coming up. is an amazing . but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. 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.

wall street pointing t higher open after the nasdaq and s&p 500 posted their first losses of the year. at south korea prepares a trading ban of bitcoin for the mu ye new year and diet coke getting a new look it's january 11, 2018, you're watching "worldwide exchange." >> a warm welcome to "worldwide exchange." i'm wilfred frost. >> i'm courtney reagan in today for sara eisen >> great to have you here with us good morning to you. let's check the global markets see where things are headed after yesterday we saw losses across the board for the major indices. we could be poised for a slight turnaround, just slightly. we have the dow jones average fair value indicated that the market would open higher by about 16 points.

the s&p 500 and the nasdaq higher just marginally looking at the ten-year, yesterday we got close to 2.6% yield. didn't quite get there right now we're sitting at 2.535. we'll watch that key 2.6 level for yields asian equities for you, a sort of negative mixed session slight gains there for hong kong and shanghai, but almost half a percent of losses for japan and south korea. also in asia, bitcoin tumbling on news that south korea is planning to ban trading of the cryptocurrency you can see down towards the mid 13,000 levels for bitcoin overnight. it will take a while for any laws like that to pass, but the attention is negative for the cryptocurrency european trade, we have, again, a sort of negative but not too negative picture italy is up. the rest of the markets are down it was mainly lower yesterday, but banks had a great day in

europe because of that rising global yield picture >> looking at what's going on with currencies here we've seen some movement based on those reports out of china. today the news that the chinese foreign exchange official is saying perhaps the source was fake news from the report that sent markets lower yesterday also playing with what's going on in the currency market. right now you can see the euro is stronger against the dollar the dollar is stronger against the yen. the pound is weaker against the dollar it will cost you 1.3492 to buy a pound. let's get more on the currency market, joining is us boris schlossberg. thanks for joining us. >> great to be with you guys >> what do you make about the reports out of china on whether or not this is fake news or not and how it is impacting the currency market. how would play it?

>> i think the chinese story is still too early to tell. if somebody told you that the ten-year was going to be at 2.6 and dollar/yen would be at the 1.11 handle, almost nobody would have predicted that. the most interesting thing in the currency market is this divergence between yields going up and dollar going down that's interesting because the market is maybe telling you something. one, perhaps the growth that everybody is anticipating is not there. and the market is being skeptical, or perhaps, this is something interesting ta we're looki that we're looking at, a regime change we could have a massive deficit, the fed and the chinese back away from the u.s. treasury market and under those conditions, higher yields are not positive for the dollar, they could be negative for the dollar this divergence is important

>> the shape of the yield curve has been much debated over the last year or so, particularly as it was flattening, we were all wanting a steeper yield curve. so you're saying depending on the cause that steeper yield curve could be negative what is it likely to mean for equity markets? >> the bond market is always assumed to be the smarter market of the two i think a lot of things are going to depend on the u.s. consumer coming tomorrow we will get the first view as to whether consumption really is picking up or not if we get u.s. consumption growth as everybody is expecting, and the tax cut ramifications are seeping through the economy, a lot of these things will go away. perhaps the dollar will gain strength and a normal scenario will develop but we may not see the 3.5% growth that everybody is anticipating and we could see more of a sideways move.

>> what are your near-term projections for where yields will be and/or the dollar if you said these are not levels we would have expected to see, what are you expecting to see >> i think it's very, very hard. the jury is still out as to how the economy develops as i said, in many ways everything rests on the power of the u.s. consumer. if the u.s. consumer gets the wage growth and spending growth, these worries will go away if we have a couple more disappointing months of stagnant consumption, we're not seeing the growth, and i think the market is overreached and we'll see a correction in equities and dollar weakness may be signaling that correction to becoming. >> your view of the euro yields have risen this week spiked by some thoughts towards japanese tightening. will we get european tightening? >>i think it's coming. the ecb is uncomfortable with

the china euro higher. but the growth in the eurozone is significant we almost crossed over where the eurozone growth will be almost as good as u.s. growth you still have to get those yields up. yes. i'm much morebullish euro than dollars at this point. >> boris, thanks for joining us. now to washington news trade in focus this morning after investor concerns on nafta weighed on stocks yesterday. kayla tausche has the latest from washington. markets were sent into a bit of a tail spin wednesday on headlines that canada is convinced that a u.s. withdrawal from nafta is imminent a canadian official told me the country is prepared for and concerned about a withdrawal and an outcome it believes is increasingly possible but it has no new information indicating a withdrawal would happen soon we are getting information from mexico that if the u.s. withdrew, mexico would pull out. trump has suggested to advisers

previously that only by withdrawing can the u.s. get the necessary leverage to negotiate the deal it wants. there is speculation that the president will withdraw this round, because of timing such an announcement would trigger a six-month exit window. that would expire just before mexican elections this summer and would put in some view added pressure on the mexican side to reach a deal pulling out of nafta would mean wto tariffs now apply to the three countries. u.s. apaparel exports would see tariffs of 18% to 20%. some agricultural products would see 75% tariffs. and motor vehicles which are among the top nafta imports and exports for the u.s., would get more expensive, too. >> it's going raise the price of vehicles you know, this supply base that all of us have as global automakers in north america is based on nafta and it's very, very difficult and it takes a long period of

time my guess is over the short run, prices go up to consumers, and choice is reduced for consumers. there's also the risk that some makers may pull out of north america. it's not just companies spooked about the u.s. pulling out. republican lawmakers are, too. a group of representatives lead by dave riker plans to attend the next round of nafta talks, those begin january 23rd in montreal >> this spooked markets yesterday when the headline hit. going back to how you framed it at the top, some people dialed back how new this information was during the course of yesterday afternoon. is that fair >> is fair the way this canadian official put it to me, he said we always feared a withdrawal. we always felt that it is a potential outcome and one that the president seems to favor they do believe there's an increasing chance that withdrawal is the outcome that

happens. that's because of timing and where we are in these talks. they wanted to clarify that the white house has not notified them, the office of the u.s. trade representative has not notified them. there's not new information that the parties have been given to indicate the withdrawal is happening. the president, it's not clear whether he wants to withdraw for withdrawal's sake and whether he wants out of the deal or if he feels that's the only way to ramp up pressure and get the u.s. what he wants >> kayla tausche, thank you. not totally dissimilar about stories preparing for the no-deal scenario in brexit it grabs headlines on the day, but everyone is preparing for every eventuality. time for our top trending stories. kate rogers has a look at what's buzzing. >> good to see you how many tech geniuses does it take to changebulb that's the kind of joke flooding

twitter after a power outage at the consumer electronics show. a main issue with the outage was that many attendees phones were locked inside of charging towers while obviously not charging this user tweeted if you want to see people freaking out, lock their phone slowly dying a few inches away from them with no way of getting it back another user writing someone told alexa to turn off the lights even tech brands got in on the action intel tweeting this photo with the caption introducing blackout, the biggest thing to hit ces since 5g >> the irony is so thick on that >> and people freak out without their phones any way >> it's -- of all the events it's sort of embarrassing but amusing. >> yeah. i'm sure they weren't laughing >> no. >> but we were. bad news for pokemon goes. the developer behind the game will stop supporting pokemon go on older iphones, this includes

any model that can't upgrade to ios 1, that's the 5, 5c or older. >> for me, this is not that relevant clearly back in the day when you were playing on consoles growing up or on your pc, certain games comeout and need to be supported by the latest tech 5 and 5c are older models. >> i've not played either. so that doesn't really hit home for me. diet coke is getting a makeover coca-cola is adding four new flavors of diet coke in a slimmer can. the company says the new flavors and look are aimed at appealing to millennials in hope of finding a new generation of drinkers >> i'm not really a diet coke drinker, but these flavors don't sound good >> i'm not a flavored drinker any way. i like some of the names

>> blood orange. good drink mixers. >> maybe a feisty diet cherry coke for mr. buffett yesterday maybe next time. >> i feel like he's a classic guy. he's sticking to the classic cherry coke. he won't change that >> we should give him the option next time around he's a big supporter of the company. classic comment about him yesterday about apple, saying he likes his classic samsung flip phone. he said the day i buy apple, it is all over. >> i like he sticks with what's comfortable. >> he's clearly on to something on many levels >> right exactly. >> this is my favorite of the day. one shopper put costco's return policy to the test a california woman returned her christmas tree to costco this month for a refund because it was dead the woman apparently managed to get her money back in full >> that is crazy >> i don't know where to start on this.

>> i'm all about great customer service, but you're really opening up a can of worms there. that's ridiculous. >> isn't the personjust unbelievably cheap >> that's terrible i feel bad for the costco employees that had to deal with that >> my tree lived for more than a month. how did she kill it? >> i don't know. >> after christmas people lose interest >> that's how they catch on fire >> that is true. you have to be careful with that stuff. >> thank you very much still to come on "worldwide exchange," is angela merkel done for? the provocative headline getting buzz this morning in the "new york times." the must-reads are coming up first another check on european equities. they are pointing lower. though the ftse 100 is just about flat u'atinyore wchg "worldwide exchange" on cnbc. hey, need fast heartburn relief?

try cool mint zantac. it releases a cooling sensation in your mouth and throat. zantac works in as little as 30 minutes. if these options don't pan out, the president, the german president, frank walter steinmeier will be forced to call new elections, something no one wants. at best the results will be the same this is why pundits are calling for a fresh start at the top of germany's major parties. the article looks at within who the cdu could take over. looks at mr. spann as a potential successor. and brings up the fact that martin schulz of the spd is also under pressure this current week of crucial talks could lead to a massive change if they can't agree at coalition, you could see leaders changing, you could see fresh elections with a spate of younger leaders that we have not gotten to know yet but the best case is that

they'll reach that coalition my pick is in the "wall street journal," more libel law bluster it discusses president trump's tweet about looking at our libel laws and what recourse americans have when someone writes something false about them it includes a quote from brian house, he says there is no federal libel law and the president does not have the authority to change state libel laws furthermore the first amendment provides strong protections against libel liability particularly with respect to statements about public figures or matters of public concern and i just found it interesting. i know sometimes folks will say when slanderous things are libellous things are written, what recourse do they have, it's a state issue, not a federal issue. not much that can be done about that >> there's a difference in uk

law. if i get challenged on this, i'm the one that has to prove it was true in the states, if someone prints something fs something, they know if a challenge comes, the challenge hear to prove it's untrue. that gives u.s. papers more flexibility to think i think we have more evidence of this, let's go with this >> a lot of celebrities won lawsuits as a result of that difference >> it's a slightly different but important difference switching focus, we're approaching the top of the hour. the team is getting ready for "squawk box. becky has a look at what's coming up. >> good morning. wilf, you think those british tabloids hold themselves to a higher standard to some of the papers that we see here with some of these things >> no, that's not my -- >> i think about some things i read in the british papers, i

think what >> i agree the british tabloids have all sorts of spurious things in them they're not well-intentioned either but that's the difference in the law. we could conclude by saying they get sued more successfully but that is the -- yeah, an important difference >> it is we have a lot going on this morning. you have been talking about these issues all morning one of the things we've been watching is this continual market rally yesterday you saw the slightest of pull backs, but you saw the s&p 500 and nasdaq on this incredible rally, continuing with the rally we had seen last year that started at the end of the year before that it has people wondering what could shake that rally what could affect stocks one issue is if there is a trade war or trade dispute, canada now signalling that they are increasingly convinced that trump is going to pull out of

nafta. we'll talk about that as a potential problem for the markets. we are joined by bruce hayman, former u.s. ambassador to canada we'll get his thoughts on whether this is something that will be in the works if so, when we might hear something about that ka ncanadian sources are sayings could happen this month. that would be a shock to the markets. we'll talk about that. we'll also talk about what's next on the washington agenda. is this going to be something where we're focusing on the budget and then potential immigration issues is there room for infrastructure we'll talk about those issues with kevin mccarthy, house majority leader. he will have an idea of what is shaping up and also what to expect with midterms what can you do in a situation where you need to get at least 60 members in the senate to get anything passed. is that a move for bipartisan legislation coming this year versus last year we will talk about all these

issues, and we have a special guest host, wilfred frost will be joining us from 7:00 to 9:00. >> i'll be there as quick as i can. you know what? it's about time, too it's my first experience of your new set. you have been going for how long there? this is myfirst invitation >> i forget when we started. >> so long ago >> it's not that there's not always an open invitation, you have to hurry, get in the car and get up here. the show starts at 6:00. >> more "worldwide exchange" still to come. exan" lddeack here on "worwi chgein a couple minutes.

welcome back to "worldwide exchange." futures are pointing a bit higher in terms of similar size moves to what we saw yesterday to the down side still up a quarter percent for the week treasuries for you, nearly 2.6

for the ten-year yesterday we pulled back to 2.54 toning us is tony craseni. what do you make in the spike in yields wh yields, what is causing it and will it continue >> it's a spike and it's what we're become accustomed to, low level of interest rates so any movement seems jolting last year the ten-year traded between 2% and 2.60. largely confined to 2.20 to 2.50 range. so it's still within that range. so we probably shouldn't make too much of it then the context of history, of course, rates remain low very, very important is that the markets still think the federal reserve, when it finishes raising interest rates, it will finish around 2.5%, which is roughly half of where it went in the last cycle ending in 2006.

it went to 6% in 1995. while rates are higher, they're not high >> tony, we saw the major indices here in the u.s. close lower for the day. of course things are pointing higher today i know one day does not a trend make, but some folks think valuations are high. where do you sit could we be poised forever correcti for a correction or will this rally continue to march higher >> our outlook, in europe it's not likely the ecb will raise the current minus 4% deposit rate to a higher rate until the middle of 2019 and it won't turn positive until 2020 or 2021. japan might raise its rate a quarter point from zero. this is the back drop for equities which is supportive therefore and with the fed, as i mentioned earlier, likely to

keep policy rates in the 2s as a peak it's possible that equities can march on important in this, it's likely that global nominal gdp which includes real growth plus inflation will be about 6% this year, as it was last year, enough to power profits in the double digits which is support i of equities. all that said, it's likely there will be some disruption somewhere. we recommend keeping dry powder for that period. >> we ve thao leave it there thank you very much for joining us that's it for "worldwide exchange."

good morning a report that china might halt u.s. treasury purchases. you saw it yesterday, right in see all the news, drudge, rattling the markets it said

the dow was down 16 points after being up 700 points. now we're finding out it may have been fake news in the first place. luckily we didn't emphasize it much we'll tell you about the statement from a chinese regulator that is moving the dollar and ten-year yield. people wanted to do the story, you know why because it could -- trump's tough talk with china is backfiring, so it's trump's fault. that's why everyone wanted the story. >> crypto crackdown. the world's third largest cryptocurrency trading partner threatening a ban. >> people were mad at buffett when the tech ipos ran up in the ear early2000s and he was opposed to

some of those. >> lights out for techies in vegas. now i'm going to get in trouble. we'll show you the tweets -- >> and we had to restart the music. >> the tweet going viral as a power outage left the consumer electronics show in the dark how funny is that? it's thursday, january 11, 2018,