breaking news. the euro soars to a three-year high on major political headlines out of germany markets now. stocks pointing to a higher open on wall street as investors await the first round of bank earnings and facebook gets a facelift the social media giant making major changes to its news feed it's friday january 12, 2018 "worldwide exchange" begins right now. ♪ good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney reagan in for

sara eisen on this friday. >> tgif. >> thank goodness. >> great day yesterday we were up 0.8% for the major indices. transports yesterday, the russell index, smaller companies up 1.7 that positive momentum continuing, up 100 points on the dow this morning let's have a quick look at the euro popping on news that german lawmakers reached a break through in talks to form a new government the euro had a good session yesterday as well. that was off the back of ecb minutes. but today's move off the back of that german political news up to 1.2121, that's a high we have not seen since december 2014 joining us is willem marx from london with more >> so, essentially what's happened here is the spd and the

cdu have agreed that there will be a coalition they had a media blackout for the last five days over these preliminary talks. we're getting a slew of headlines now coming out of those discussions. those include a lot of the spd wish list items they have been pushing for. angela merkel's party and her sister party, the csu, agreeing to those terms key things like switching germany's energy sources to 6 5% renewables by 2030 fresh tax relief they will end arms exports to countries involved in the yemen conflict primarily targeting saudi arabia there's going to be a ban on genetically modified plants. this is one of the real big sticking points, refugee numbers coming into the germany. the spd wanted to leave the open door policy, by they are now agreeing to a limit of 180,000 to 220,000 refugees.

the big milestone is the 21st of january when martin shuchulz wil be trying to get approval from his members to pursue formal coalition talks with merkel. >> what do we expect the position to be between these two if they do formalize this coalition in terms of european integration? will they take the macron stance and want deeper fiscal union and things like that will the success of some of those further right parties in the election, will the success of those parties make them take a stance which is more anti-european? >> yeah. that's good point. you're talking about the afd, they polled at around 13% in elections, they are a far-right party. they forced the csu into slightly more tougher positions when it comes to immigration and europe but it seems based on headlines we're getting out of this series of meetings that they will be

pushing for that greater integration, that macron model that you're calling it that's an impact on the euro/dollar bouncing up this morning, almost three quarter's percent. that's something we'll be watching to see how far they take that and how quickly during those formal coalition talks >> if we can take a turn here for a second president trump is canceling his trip to the uk what's the reaction there on the ground >> well, we've heard from the mayor of london, sadiq khan, he said many londoners have made it clear that donald trump is not welcome here while pursuing such a divisive agenda. it seems he finally got that message. sadiq khan an outspoken critic of trump what's interesting is that this is not a state visit, it's been downgraded by the british government quietly there was that huge protest online, one of those petitions was launched to number 10

downing street calling for the cancellation of any state visit by mr. trump we heard from one of wilf's favorite british newspapers earlier that that cancellation was taking place and it seems that president trump has responded support in the daily mail saying he wasn't coming due to the location of the embassy, saying obama sold it for peanuts. but that decision was made before obama was elected as u.s. president under george w. bush's administration, and the embassy was never owned by the u.s. government the lease was owned, and that was sold that was neutral many terms of costs for the u.s. government to build the embassy. >> i was waiting to hear which newspaper you were going to claim was my favorite. certainly far from the truth, but i'm sure -- >> i didn't hear denial there. >> i'm sure most of those other facts you reported were

accurate this was not the formal state visit that has been much talked about, a separate one it's odd that it wasn't announced that he was going to go odd back and forth there is that antagonism between him and the mayor of london. going back to the german news, this is a big step forward, but it's a bit of a step back compared to the last year or so. this government will be weaker than angela merkel would have hoped. weaker than a year or so ago, and because it's the spd, the second party, and the cdu, csu, the biggest party, the alternative for deutschland, that far-right party will be the leader of the opposition, which is significant in terms of what the debate will be every day in the chambers we'll see if that gets confirmed. the euro popping on that news. u.s. futures are higher. 100 points or so for the dow just shy of 100 points off the back of strong gains,

0.8% for each of those main indices yesterday. the ten-year treasury note as well, that rose in yield at the start of the week off the back of rising yields, it has paused, gotten close to 2.6. at the middle 2.5 level this morning. international yields have continued rising all week. if we look at the german ten-year now, that's at a why not seen for five or six months. 0.516. you can see that significant move yesterday so, yes, we're seeing the euro moving today because of german political news, but it rose yesterday as well because of the move higher in yields. which came off the back of the ecb minutes. the main take away is people expect more tapering of qe this year and a rate hike early next year that big move in german yields took place yesterday the euro reacting to both bits of news. >> let's check in on asia and

what we saw there overnight. the nikkei was down about a quarter of a percent mainland china was higher as well as the south korean kospi fast retailing announced record profits, the parent of uniglo. for the first time their international revenues were bigger than their domestic revenues something important to watch also because of the significant weighting in the nikkei. not enough to pull the entire average which ended lower. trade data out of china. export and import growth slowing in december after a big run up the proevious month exports rose 11% and imports were up about 4.5% the hang seng was higher by a half percent just to round things out with europe we sort of made a check in there with willem and wilfred telling us what's going on in germany

and other political developments if you look at the equities, we're higher across the board. italy is leading the way higher. let's check in on the commodities. oil prices finishingthe day higher yesterday at this point ohowever they are pulling back a bit wti crude down by a half of a percent. ice brent crude there is down slightly below $70 a barrel, at $69 and change we're watching some of these moves because we have hit some nice multi-year record highs for the price of wti hovering around those december 2014 highs watch that today the energy sector also a leader yesterday. look at the price of gold. just to round things out it was up earlier this morning, up thursday and up week to date. it's also still up this morning hovering around 1331

the dollar did slip a bit yesterday and the day before slipping more meaningfully today. the euro is the big mover, 1.212. not much movement against the yen. the pound is rallying up to 1.36 a meeting yesterday between theresa may and various bank leaders including jes staley of barclays saying they're making progress in terms of getting on the same page of what they want for discussions and financial services for the brexit discussions. let's look at bitcoin. bouncing back as south korea talks down reports that the cryptocurrency ban will be emine imminent the december consumer price index is out at 8:30 a.m. along with december retail sales at 10:00 a.m., november business inventories. eric rosengren and dallas fed

president robert kaplan will sit down with steve lease mran y liesman on the earnings front, jpmorgan, wells fargo, blackrock are all reporting results today. don't miss blackrock chairman larry fink, he will be on "squawk box" in the next hour. >> those blackrock numbers will kick off the earnings this morning. those come out at 5:45 a.m. during this show that interview on "squawk box," and then the banks will continue hitting their numbers throughout "squawk box. jpmorgan at 6:45, wells fargo at 8:00 a.m facebook unveiling its biggest changes to the news feed in years landon dowdy has the details on that for us. >> facebook is getting friendly. you could be seeing more friends photos and updates facebook is changing your news feed preferring posts from friends and family over business

posts. mark zuckerberg announcing he is changing the goal i give our product teams from focusing on helping you find relevant content to helping you have more meaningful social interactions this could have a negative impact in the near-term, not just to the publishers who rely on facebook to reach consumers but on the social network metrics. zuckerberg writing i expect the time people spend on facebook and some measures of engagement will go down, but i expect the time you do spend on facebook to be more valuable and if we do things right we'll be good for our community and for facebook this is in the face of fake news, russian manipulation over the election facebook is up in early trading. back over to you we're just getting started on "worldwide exchange." still ahead, a double dose of tax news how the new law could be a win for retail

>> and later breaking down how the changes will impact your take-home pay. stick around these birds once affected by oil are heading back home. thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home

lang angela ameri angela merkel's party that she leads, there's been progress

overnight that they have formed a blueprint to reach a coalition agreement. they still need to go over the finer details. but the euro is up 0.7% off the back of it she says we have seen talks planning to push on european reform with france that's an important part of it, this coalition would be in a similar mindset of emanuel macron, pro europe europe enjoying a good two days. starting to learn more about how the new tax law domestically will impact your take-home pay ylan mui has the details good morning the trump administration has taken a critical step here in turning the tax law into reality. the treasury department and the irs giving new guidance to employers on how much to withhold from wages under the new tax plan treasury secretary steve mnuchin said he expects about 90% of

workers will see an increase in their paychecks as a result. >> the irs will continue to focus on simplification and a user-friendly process. these new tables will help deliver the tax cuts as soon as possible to as many americans as possible >> now, the deadline for companies to make the changes is february 15th. this years will not have to fill out a new w4, that has personal information has helps employers figure out how much to hold the irs is drawing up a new form by the end of the year so in 2019 officials say a significant number of workers will have to submit that new paperwork. democrats have raised concerns that with all these changes to the tax code many people could end up owing uncle sam next year mnuchin refuted that saying the percentage of taxpayers

receiving refunds is steady. >> the percentage of people seeing things fall versus rise is significantly higher than people seeing the overall tax rate rise. >> they estimate 90% of people will see a boost to their paychecks, so taxes will be lore under the new tax plan, but 10% of people will hold steady or see an increase, many of them where you are, in new jersey and new york >> in terms of whether this is a simpler thing to file each year for individuals, that was a big part of this originally. that postcard that they posed with famously. it seems like the transition is tough. once we get through it, next year, the year after, should this be a much simpler process >> they say they are still holding on to the postcard it might be a rather large postcard but as you mentioned, getting to that point is going to be very complicated. workers really need to pay

attention to their forms the irs is putting out a new calculator that people can log into to put in personal information to make sure they're paying the right amount in taxes so they don't get hit with the big bill next year >> ylan mui, thank you very much for that. up next, retail stocks on the move and what to watch in the day ahead. as we head to break, here's the national weather forecast from bill karins good friday morning to you over 50 million people under winter weather advisories, warnings, watches. what a mess in the ohio valley, tennessee valley heavy rain has turned over to freezing rain even a period of snow as far south as louisiana this arctic air is returning and ending the january thaw. on the east coast, it's mostly a rain event interior sections will get freezing rain and ice from tennessee through pittsburgh, scranton, pennsylvania, albany new york and higher elevations the snow portion of the storm, we get the snow out there this

morning, maybe one or two inches as far south as areas of southern arkansas. memphis, bowling green, lexington, then the snowstorm for western new york and western pennsylvania those areas could get 6 to 10 inches today, a lot of patience needed at the airports and on the roads. that's your business travel forecast more "worldwide exchange" when we come back g about you for yea. sorry about that. they're all about me saving for a house, or starting a college fund for my son. actually, i want to know what you're thinking. have a seat. yeah. knowing that the most important goals are yours. with 15,000 financial advisors, it's a big deal. and it's how edward jones makes sense of investing.

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the nation's largest private employer is set to raise starting wages for hourly employees to $11 in the wake of the u.s. tax overhaul. the company says it will give some hourly workers bonuses as high as $1,000 walmart is shutting 63 of its u.s. sam's club locations. walmart tells cnbc that 10 to 12 of those stores will be converted to e-commerce facilities let's discuss this with nina telsey from the telsey advisory group. thank you very much for joining us let's get your take on what you saw walmart do with the wages. we know when they raised wages the last time from $9 to $10, it seemed that store productivity increased. it seemed it helped walmart along with putting more money in the wallets of its workers what do you think about the new announcement >> i think it's going to do the same thing again we're continuing to see labor

costs, wages move higher a lot of what happens is sometimes the wage increases benefits that retailer because some of it goes into store sales, given the fact that their consumers are the walmart employees. that's a helpful boost to sales. so you're seeing other retailers move wages higher. it's no surprise that walmart is also >> so if we can pick up on the second note that came out yesterday about the sam's club stores closing, which flew much more under the raradar we know in general that the u.s. is overstored. we don't always look at store closings as a bad thing, what do you make of the 63 sam's club store closings that's about 10% of the fleet in the country. >> exactly i think overall they assessed what is the productivity of those stores which stores are near their stores. we did a study last night all about what's near those stores,

the proximity. certainly evaluating the productivity, could those stores be better used for e-commerce fulfillment centers. i think you will see more retailers take careful analysis of productivity levels as you move forward and carefully open other stores, locations do make a difference so i think they're continuing to harness and look at what is the most productive use of the square footage that they have. especially in this new e-commerce and fiscal world combined together. >> going back to the wage hike and the bonus, what percentage of total employees will actually benefit from that? we've seen lots of companies announce things similar to this. it varies how much it means to the company's bottom line and to the number of employees there. if it's just boosting a minimum wage, how many people are on that minimum wage? >> overall that's the store employees for walmart. you have different metrics, but

getting those starting salaries up, getting those hourly wages to increase, it's a feed through, and then you will see the wages of other employees rise in that network so i think it's definitely a roll through that you will see throughout the store network being able to find employees, it just goes to show how difficult the labor market is. >> when we saw the last wage hike that courtney and you discussed at walmart, did it lead to wage rises across the industry is walmart the leader for this particular industry in terms of base wages >> i think they're one of them i think you have other companies. look at gap. they raised wages. you saw the off-pricers like burlington and tjx also raise wages. what we're seeing now and you continue to see the progressive increase in wages. i don't think it was just one time and done. i think they're continuing to

evaluate given the tight labor market >> great stuff thank you very much for joining us still ahead a round up of the top headlines and a check in on global markets. plus bank earnings kick off this morning. we'll tell you what wchtoat when "worldwide exchange" returns. these birds once affected by oil are heading back home. thanks to dawn, rescue workers only trust dawn, because it's tough on grease yet gentle. i am home, i am home, i am home

fut r banks on deck what you need to watch as banks report results and barack obama sitting down with david letterman as the comedian's new netflix series kicks off. it's friday, january 12, 201, you're watching "worldwide exchange." good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. >> i'm courtney reagan in for sara eisen i can't stop singing that song >> you didn't sing it. >> i lip-sync sied it. >> let's check in on the markets this morning pointing higher, about triple digits for the dow it remains there 100 points higher. the s&p up 7 nasdaq up 18 yesterday up 0.8% for each of the indices.

the big mover this morning is the euro, up 0.8%, following gains yesterday as well. we're up this morning because of positive headlines out of the german coalition talks chancellor angela merkel and the cdu and the csu alliance will form a coalition with the martin schulz's spd they have a blueprint for it we were up yesterday off the back of the ecb minutes. the euro has had a good couple of trading sessions. ten-year treasury note, yields have slipped over the course of the week we jumped earlier in the week due to international yields rising mid 2.5s 2.55 let's look at asia and see what happened there overnight. markets were mixed with the nikkei closing lower by a quarter percent. in mainland china the markets were higher. hang seng up by 1% we had mixed data out of china

the december trade data was mixed. exports rose that beat estimates. imports rose but less than expected the overall numbers for the year as well there. we talked about the euro earlier. we checked in on european politics and what's going on with angela merkel and the coalition parties there. the markets across the board are higher in europe germany is higher by 0.2%. italy continues to lead the way higher by a half percent at this point with the euro above 1.21 there's a trio of economic reports out this morning the december consumer price index is out at 8:30 a.m. along with december retail sales at 10:00 a.m., november business inventories. eric rosengren and patrick harker are speaking today. plus we'll also hear from dallas fed president robert cap lan when he sits down with steve

liesman. catch that at 7:10 a.m. eastern time right here on cnbc. on the earnings front, jpmorgan, wells fargo, pnc financial and blackrock are reporting results today. don't miss blackrock chairman larry fink, he will be on "squawk box" in the next hour. >> let's talk more about banks earnings joining us is chris whalen of whalen global advisers good morning to you. we kick off with the likes of jp and wells fargo today. do you think we could see some misses on the q4 numbers, but big beats in terms of the commentary from management, in particular on both fronts as it relates to the tax reform bill >> the taxes are obviously good for corporates in terms of enhancingearnings going forward. i think the narrative that says the tax bill will result in growth for banks in terms of lending is off the mark.

we have a striking comparison this week between wells fargo on the one hand which is barely growing, and pnc financial, which the street has at a 7% revenue growth number for this quarter. the smaller banks are allowed to grow they're allowed to make acquisitions the big banks are basically being told not to do anything. the regulators have explicitly told the top five banks no acquisitions at all. >> but acquisitions is one thing. the big banks are facing less regulation going forward they can grow. >> yeah. >> they can reduce expenses which will be helpful. you are seeing expansion in met interest margins now that rates are slowly going up. overall rending will be down this quarter for wells in particular you will see weakness on the mortgage line because they're pulling back from that market. pnc is picking up share in

mortgages. so i think there's a dichotomy here between the next five to ten below the largest banks, versus the traditional leaders, which is where investors are always focused they don't pay attention to the smaller banks. they want liquidity. >> in terms of the investment banks, trading will be down year-on-year how much will it be down will we start to see a turnaround in terms of the trend as the year starts now compared to last year, which was a tough year for trading >> well, unfortunately the downside effect of quantitative easing has been to reduce market activity, particularly hedging so the big banks have seen a reduction in volumes and trading. since the fed is not going to sell any securities, they're going to let the book run off, we have probably 3 to 5 more years of reduced volatility and reduced turnover in terms of trading simply because the

central banks own all of the paper and they don't hendge. i think this lack of activity will continue for a while. >> in terms of the two biggest names reporting today, we touched on pnc, but wells fargo, jpmorgan, what's your rating on both of those? >> i'm an investment banker, not an analyst, but i can tell you when i look for growth in the industry with clients, i don't look at the top banks. both of them will be growing low single digits f they're lu, if y with the volcker rule and other dynamics in the marketplace, it's hard for these banks to find sustained revenue growth. they're pulling back on lending because we had a great run for the past four, five years in terms of expansion of lending. but banks are now worried about credit you will see a mixed result from

the large banks when it comes to the bank side. jp is only half bank wells fargo is a more balanced business they are much more like a smaller bank, same with bank of america. but jamie dimon always manages to hit his earnings target, the real question is where is revenue. the street is looking for low single digits in terms of growth rates, i think that's where they will come in >> chris, thank you very much for joining us >> my pleasure facebook is overhauling its news feed to feature more posts from friends, family and groups. users will see fewer posts from businesses and media this is part of facebook's efforts to encourage more personal interaction on the site kind of what facebook was originally. stocks to watch, fiat chrysler will shift production of the ram heavy duty pickup trucks from mexico to michigan

it will invest $1 billion in th u.s. plant and add 2500 jobs, and add a bonus to some workers. fiat up 3.5% a mrshgs d is ed amd isposure t the spectkctre flaw is much larr than first thought and intel says patches for the flaws may have bugs which could cause computers with older chips to reboot more often than normal >> they can't win. flaws, bugs in the fix ibm says cfo martin schroeder will shift to a new role as cfo for global markets he will be replaced by james ch

years. shares of pit nney bowes ar higher this morning after rising 15% yesterday. the maker of mail processing equipment has received takeover interest from blackstone and the carlisle group pitney bowes says it does not comment on rumors or speculation. general motors says it is making the first mass produced self-driving car without a steering wheel or pedals it has filed for permission to put the vehicles on the road sometime next year without a human backup driver. gm is not saying how many cars have been made or where it will be tested. >> still a long way go in terse of getting past peoples concerns and psyches. time for our top trending stories. landon dowdy has a look at what is buzzing this morning. >> we're talking the president, but not the president you might

think, we're talking about former president barack obama appearing in an interview with david letterman. he was letterman's first guest on dave letterman's show called "my next guest needs no introduke shuintr introdruk shintr introducti introduction the netflix special started streaming at midnight. >> wow, letterman has a big beard. >> he does >> i had seen it written about, but i had not realized how big it was >> he's retired. he's full out -- >> i didn't think it would be so christmassy and white. interesting, this is a big show for netflix. >> huge. >> they pushed a year or so ago into documentaries, this is up to date interviews and good for letterman. >> he has the guest lineup tina fay, george clooney >> i had not realized it was a

live audience environment as well but recorded a while ago. >> late last year. >> it's going for the sort of time doesn't matter time approach it's not the short-term news-type interviews where you need to get the headlines out that day >> no discussion about the current white house at all >> he avoided it dad dance moves are always relevant >> it hits today, right? >> i think it went on at midnight we can watch it. taylor swift is at it again. she dropped the highly anticipated music video for her song "end game" overnight. the video has scenes shot in tokyo, london. the video already has 900,000 views on youtube, but just five hours after its release. i'm guessing courtney is a fan >> a huge fan. i have a new outfit inspiration. >> have you watched the video? >> yes

>> she came in early to watch. >> it was preparation because we're talking about it. >> totally homework. that was the reason why i watched it this morning. >> mixed reviews on ticket sales. should be interesting. >> it was interesting how they did it with the verified fan through ticket master. it was kind of a pain, but it worked i got the tickets. i got access to the tickets, but you did have to prep she doesn't want the bots and scalpers to get all the tickets. >> i'm sure they will all be sold out >> if there's some available, maybe i'll buy more. big changes coming to hooter's the burger and wings chain is making a push into the delivery space. the company's ceo says the move is part of an effort to entice embarrassed eaters he said the service will be successful because many people would not step foot into our restaurants but they want our product. wilf, have you been to a hooters?

>> i've been to a couple more in my early 20s than early 30s. >> are you going for the wings >> no. >> so silly. >> maybe it works for them i agree. that's not why people go >> talk about the ultimate in-person experience that's why people go to hooters. not for the product. >> having sat in britain from afar, it's disappointing when you go it's awkward and like -- a bit run down it's not like a thriving brand >> is there a british equivalent >> i don't think so. i'm not sure we would do that. >> a little fancier than us. >> we'd be too embarrassed by it >> all right >> good chat it looks like louis vitton wants to make traveling easier screen shots from a smartphone app suggest that the luxury retailer is making a line of luggage with tracking devices inside >> very cool there's some company there's a

do this. but an international tracker for a piece of luggage that's probably very valuable for its contents and the value of the luggage. >> interesting that it is developed by the brand itself versus by the phone or something that you can apply to all types of luggage >> no price tag yet. still to come, the must-reads and more on the early morning rally. dow futures up triple digits bad at t. rowe price we've helped our investors stay confident for over 80 years. call us or your advisor. t. rowe price. invest with confidence.

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welcome back to "worldwide exchange." it's time for our must-reads my pick is in the "new york times. it's entitled a bad idea on immigration. politics say 200,000 immigrants from el salvador that were invited to the united states after two earthquakes in 2001 should not be forced to leave as the trump administration is not insisting. they start out thinking about that 6-year-old elian gonzalez being forced back to cuba in 1999 they write the image of a small frightened boy being pulled from the arms of a sheltering adult by a team of heavily armed federal agents remains seared in the mines of many people as a low point in the immigration debate brace yourself for the possibility of seeing this kind of scene again that was such a visible image for so many of us seeing that frightened little boy in the closet after his mother had died trying to get to florida from

cuba, and then with the u.s. authorities and federal agents ripping him out of the custody of his family members and forcing him back to cuba where he still lives quite a story. i think that's a powerful image. >> my pick is in financial the lesson for diagnosing a bubbles. there are two ways to diagnose a bubble one is looking at fundamentals the other approach is to look around at people giddy with excitement taxi drivers offering to iningis tips at the moment however these two approaches tell a different story about u.s. stocks. there's talk about record highs, tulip mania, and saying the u.s. market is not in that situation.

kind of encouraging. another reason why we keep hitting these highs. >> it's a question so many of us have been asking we're 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. i've got a lot to tease this morning. stay with us i could probably talk from now to 6:00. bank earnings are coming out wilf will be covering that this morning. we have jpmorgan and wells fargo both reporting during "squawk box" this morning. plus we'll kick things off with blackrock earnings they're coming out at the top of the hour we'll be joined by larry fink, the head of blackrock. he will be sitting down with us for a half hour to not only talk earnings, what he sees happening in the sector, how he's been climbing that stock has been an out-performer even in a sector that has done so well. we'll talk to him about what's happening. why he's been doing that what's happening with etfs what risks he sees in the market. maybe talk to him about bitcoin,

too. also we'll talk with gm's president today. he has news we'll talk about phil lebeau is there he will talk to us about big stuff when it comes to autonomous vehicles. and we have the dallas fed president, rob kaplan, he will be joining us this morning big news there, all types of questions about what the fed will do next, how many times they could raise rates this year. and we have the president of sachs joining us to talk about what's happening in the retail world. numbers there were better than people had anticipated strong numbers from those who are not completely online operations, like an amazon also our guest host from 8:00 to 9:00, senator heidi heitkamp, she has been watching oil, oil prices that's a big deal in north dakota oil prices have risen to the highest level in over three years. we'll talk about those things and other issues in washington, including immigration. i asked you yesterday if you

knew who def leppard was do you >> no. i don't. you sent me home with homework >> listen up this is a band that sold 100 million records worldwide. >> i have heard this song before i didn't know the name >> they're still out there >> well there we go. >> the beatles predated me, the rolling stones predated me i'm familiar with their work >> am i because they're two of the great bands. >> the reason i'm asking about deaf f leppard, we have rick aln on, the drummer. incredible drummer came back after an accident after the breakout record pyro mania. he came back he came back had an amazing

rovrrovr recovery and since then he's been doing all kinds of work for charities. he paynes, tapaints, takes pictt helps him with post traumatic stress he's been selling a lot of those works for charity. we'll talk about an art show he has out. >> i do look forward to that amazing story. i enjoyed the song just didn't do the homework. >> have i heard of shakespeare >> i don't know who that is either we have to go. "worldwide exchange" will be back in a couple minutes happy anniversary dinnedarlin'

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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. welcome back to "worldwide exchange." futures pointing higher. the euro popping on news that german lawmakers reached a break through coalition agreement. let's discuss things further euro has moved higher. ecb minutes yesterday, german politics today is that a breakout

will that continue for the rest of the year? >> there does seem to be pressures building at the euro the fundamentals economically are very strong in the region. we have politics, the french election, dutch election and now the german election and german government which is more settled sort of helping the euro be stronger there is the italian election, and that may keep the euro with a cap on that price. so we expect maybe a bit of strength but not much higher than what we see now until at least march where there's more stability coming from the political space. as rates rise in the u.s. and the ten year gets closer to the 2.6 mark what does that mean for equities does it make bonds more attractive is it higher and higher sector after sector and index after index? >> that's a great question that's one we've been asking

ourselves. investors ask all the time can bonds and equities perform both very well as they did in 2017, looking forward to this year the key question is the sector dispersion within the s&p 500 and global equities. we like financial s because they're the one sector that does well when rates rise and bonds are less of an appealing play because treasuries and government bonds are seeing a bit of yield pick up it's balancing between the sectors and the types of stocks, whether it's value versus growth or financials versus some bond proxies. we prefer the things that do better in a rising interest rate environment. generally speaking the theories tell us that as interest rates rise you would expect equities to not do so well. it depends on where we are in the threshold. we're at an early part of the norm normalization cycle.

>> thank you very much for joining us i'm sorry we are tight on time that's it for "worldwide exchange." banks are kicking off earnings during "squawk box." that's next.

good morning a "squawk" news maker. blackrock's larry fink will join us to talk earnings. the markets are up again triple digits the tax bill and a lot more. he's on set right here for an extended interview earnings alert that's what it says right there. jpmorgan set to report this hour we'll bring you results and reaction in the markets. and presidential profanity a leaked comment from a bipartisan immigration meeting causing a stir the president is canceling his state visit to the uk.

it's friday january 12, 2018, "squawk box" begins right now. ♪ live from new york where business never sleeps, this is "squawk box. good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen andrew ross sorkin is off today. even after yesterday's big gains and everything we've seen since the beginning of the trading year, dow futures are indicated up by triple dij jigits once ag. s&p futures up by 8 points the nasdaq up by 17 points just listen to some of these records. yesterday the dow, the s&p 500, the nasdaq, the dow transports, the russell 2000 all posted record closing