government shutdown, day three. the senate fails to strike a deal in time for a late night vote but will try again this afternoon.the latest from washington what wall street wants futures under pressure this morning. we'll talk about what a stalemate in washington means for your money coming up. and what carl icahn wants at xerox. it's monday, january 21st, 2018. "worldwide exchange" begins right now. ♪ good morning, very warm welcome to "worldwide exchange" on cnbc i'm wilfred frost.

>> i'm courtney reagan in for sara eisen it's nice to be here even if it's a government shutdown kind of monday. >> it's a shutdown kind of monday nonetheless we continue. let's have a look at what the markets are doing this morning a decent look in the end we're basically 1% down from the weekend. volatility on the most of the banks, management alluded to during the course of their reporting season but we're looking at a bit of a decline in the premarket down 64 points for the dow nasdaq 4 and the ten-year ended last week at 2.66 having started the week at 2.55. a big move, just below that. 2.654. we've seen a big move in the 12 year basically stayed flat at ten-year highs a steepening of the curve. what did it mean for the dollar. and it's moving higher as well

we did see a 30 of a percent decline for the dollar index the dollar index, the fifth negative week in a row for the dollar it starts weak again today down about 0.24% and this week, we do have a ucb meeting and a bank of japan meeting as well. well, let's get to washington where the shut down has entered its third day. ka kayla tausche joins us >> the senate failing to reach a deal they had originally expected to reach a vote at 1:00 a.m. this morning. now federal workers are waking up to a shutdown today a day that many of them were expecting them to go into work they were expecting them to have a vote at noon here's the new proposal that senate leaders were talking about. it would fund the government until february 8th

but it would extend the built for children's health insurance which ran out friday it's beginning to fix the bill for children of undocumented immigrants and a host of other issues before that next deadline comes around on the senate floor last night, senate majority leader mitch mcconnell said he wants those agreements and he's committed to them take a listen. >> on the democratic filibuster, the democrat funding bill ends, when it comes to an end, the serious bipartisan negotiations that had been going on for months now, to resolve our unfinished business. military spending. disaster relief. health care. immigration. and border security will continue t would be my intention to resolve these issues as quickly as possible so that we can move on to other business that's important to our country >> so that is a long list of unfinished business.

dealmaking over the weekend, though, was largely carried out by a bipartisan group of nearly two dozen lawmakers shuffling between the two offices. mcdonnell and schumer met sunday but did not broker a deal. member of this dealmaking group say it's still unclear what deal the president and his advisers would agree to but mark short at the capitol last night said the issues, the two are, quote, extraordinarily close. but the white house said the talks won't conclude until the government reopens we'll see if they can get that deal by noon today the last three shutdowns, november '95, december '95, five days, 21 days, 23 days and 16 days respectively. do we expect that we will stay below those upper bounds in the wall street of 21 days the

longest? >> well, you do have a date on the calendar that republicans very much want to avoid. and that is the state of the union. it is already a bad look for them that the president's one-year anniversary was marked by a government shutdown and they want that state of the union address on january 30th to be looking ahead about the broader republican agenda. and how much more they're going to get done this year to build on last year's momentum with tax reform if that is -- if there's a cloud of a government shutdown looming over that, you can imagine that messaging changes dramatically and they do not want that to happen so that is incentivizing republicans to come to the table. and it seems like there has been some movement but it's about the individual vote at this point. >> kayla is there a sign who takes the blame and has that changed as the length continues to draw out in the opinion polls seem to think that the president is taking the blame at the moment if that prolongs, is that going

to start to shift to the lawmakers themselves >> i think it has shifted to the lawmakers themselves both the white house and congress on the other end of pennsylvania avenue are shouldering quite a bit of blame. but i think it's more broadly, wilf, i think it will underscore the fact that congressional approval ratings are extremely low. people are frustrated with governments, stalemate and bureaucratic process and this will not help the overall look of washington at the time when the president said he wants to drain the swamp and do away with the old goings on in washington. this is very much showing you on display that these are very arcane processes and they're not going away anytime soon >> very true, kayla. they're not making themselves look any better in the eyes of the american people by continuing with all of these partisan fights. thank you very much for being here i appreciate it.

i'm sure you'll be with us throughout the day on cnbc with updates. let's look at other markets around the world asian equities, slight gains for japan. hong kong and shanghai up 0.5% between 2 and 3% japan under under 2% last week european trade, the dax was very strong 1.4% up. the cac slightly higher. ftse a slight lower. to this morning's top corporate stories, ubs is the latest bank to announce a short-term hit over the tax overall. switzerland's largest bank posting a loss for the fourth quarter. among other headlines from ubs, it's increasing its dividends a share buyback program worth up

to 2 billion sfraefranc. >> we got that basel 4 thing significant in the european banks moving forward it's kind of like they're turning the tide coming over, but later than the u.s. in tellers of when they can go to shareholders to announce a reinstatement of that policy even though the earning are down and kind of disappointing to the analysts, going back to the shareholders it's a significant moment >> interesting with the global banks having to deal with regulations in europe and tax laws here changing. >> in other corporate news, carl iza icon has got a message for

xerox. >> they're pushing carl icahn to explore options. they're calling on the company to explore alternatives which could include other transactions breaking up a straight venture with fuji film and firing jeff jacobsen effectively immediately. they have called on the company to break off or the joint venture to xerox saying it's unfavorable to zeer roc xerox. shares have lagged for years but rather decently. back over to you >> landon, thank you very much for that courtney, as we were talking earlier, it's funny that these guys are focused on quite old companies. like xerox, p & g. >> not the new guard >> like netflix or amazon. sat back and enjoyed that bit of

money in the u.s. banks and you wouldn't have to argue >> it's old bank stock >> exactly >> again, just buy amazon. an awful lot of work we'll see if they get it some other stocks to watch, sanofi looking to buy bioverativ a premium for the friday closing price. bioverativ makes drugs to treat hemophilia.

making a new offer until next month. it's said to be keeping its options open on its shares online lender so far has offered its ceo job to twitter according to sources, terms haven't been solidified but announcement is likely in the next few days. still ahead on "worldwide exchange," is good luck good we'll talk about a statement in washington in terms what that could mean for your money on wall street. and the u.s. equity futures right now are under a bit of

pressure as we enter day three of the shutdown. dow jones industrial average indicating they will open lower by 57 points stay tuned you're watching "worldwide exchange" right here on cnbc 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, if it's been dropped... it's completely unique. (dennis woloshuck) if you have a sensor that can keep track of your product, it keeps everybody kind of honest that way. who knew a tiny sensor could help keep the food chain safe? ♪

welcome back to "worldwide exchange." futures right now under a little bit of pressure as we enter day three of the government shutdown dow jones local average is indicating we will open lower by 69 points. if we were to open up the points nasdaq lower by 8.

s&p off by 4.5 points. joining us, jpmorgan assets management, nick, we have to start right there with the government shutdown. it doesn't seem like the market really pays too much attention to these things until it really has to and it's forced to and we are day three, futures according to a lower open. what do you think the government shutdown means to the investor market and if you're an investor how closely should you follow the headlines? >> i think when you look at it, economic impact doesn't seem to be very large in terms of aggregate. when you think about political risks, the reality is markets get fairly decently tied to it. >> what are implications more broadly as to whether the president can deliver more initiatives like he did late last year with the tax bill? >> well, i think when you take a step back and you look at the

economic performance the reality is it's pretty robust when you look forward whether that's in the u.s. and actually more broadly, so, the key, probably something that can be said. and when you look at the fed, the reality is the market is probably underpriced in terms of what we expect the fed to do this year. our sense is we'll be looking at full rate hike and questioned by the market >> the dollar had its fifth negative weekend in a row last week we also have bank of japan and ecb meeting ahead. is the risk set for the upside for the dollar this week, given five weeks of decline if we get suddenly something a little more than people expect could we see the dollar rally particularly with the four hikes this year? >> maybe but when you think of the dollar there's a difference between the thought that it may consolidate here and the structural. and you look at the structural, at the end of the year, there's

no reason that the euro dollar couldn't be 1.30 or 1.35 because over time the much, much bigger shift comes from the ecb. and it's worth remembering that the hike for the ecb is not priced until 2019. that looks absurd given the expensive great in the eurozone. so this week's ecb meeting will be very critical and they could well start to be a little more hawkish which could surprise the market and give that euro more sprengtreng. >> speaking of the u.s. again, we do have economic strengths and a number of growths, wage growths in which the u.s. seems to be stagnant at what point does this become an hindrance in terms of economic growth in the jus. >> well, let's see, this could be the year that wage growth comes back when you look at 2017, one of the key bits of

data was the amount spent. and that rocketed higher in the u.s. of course when you get spend, you get productivity growth then you can get wage growth so that's the million dollar question this year we could well see wage growth finally in the u.s >> nick gartside thank you for joining us right here on "worldwide exchange," shutdown showdown we're heading into day three with a big senate vote looming around lunchtime we'll have a report from washington straight ahead. as we head to break here's today's weather forecast from nbc's bill karins. good monday morning to you, wilfred and courtney overnight, we saw severe weather including a possible tornado in southeast texas. and blizzard conditions develop f ing in nebraska. this will move towards sioux city and south of minneapolis. blizzard warnings from northern michigan to the eastern portion of colorado. a pretty good snowfall for the central plains

the highest snowfall, in the red, possibility of a foot of snow from mankato to washington and sioux city that's the worst there minneapolis in the south side of town will get hit harder than the north side 3 to 6 inches for downtown today's forecast still the mild air from florida to the east coast. rainy weather in new york. and rain in new england is going to get messy that's your business because i'm retired now. so? we're voya. we stay with you to and through retirement... ...with solutions to help provide income throughout. so, you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that, uh, tie. or the suit. or the shirt. voya. helping you to and through retirement.

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in political news, germany

is taking a big step towards forming a new government seasonal democratses have committed to forming talks with angela merkel's conservativeship could move closer to a more stable government after months of deadlock. merkel is adding she looks forward to the intensive talks so this was a big and crucial step albeit it was so close for the spd the social democrat party voting 3-6-2 it shows how much opposition out of the second biggest party to continue the coalition talks it just means the coalition talks the spd will have more talks. it was a massive and crucial step forward but it was close. and it's not a done deal yet again, it's another factor that

merkel herself will likely be weaker in the next decade than the last decade. >> they're not quite where we are. >> exactly exactly. and compared to other countries, any is better. >> exactly to political news, vice president mike pence is meeting with israeli prime minister benjamin netanyahu in israel the vice president is receiving a warm welcome from the government which has praised the trump administration for recognizing jerusalem. the decision has upset israeli and palestinian allies back in washington, the government shutdown enters day three this morning john horovitz joins us from d.c. good morning, john five days, 21 days, 16 days, respectively if we last as long as the latter

two, 21 days and 16 days, take us through what we likely will see in the next few days and how it may affect the economy and the market >> well, i think what we're likely to see, wilfred is repeated attempts by republicans to put pressure on democrats by forcing them to vote again to keep the government shut down. we have this vote at noon. two republicans that have voted against the short-term bill to keep the government open they're now going to vote in favor of that. it's 53 compared to 57 how many more will they get? somebody i talked to last night said they won't get seven today. but how long do people hold out? people's patience and fortitude gets weaker the longer this goes on >> well, how long does the incentive really work for a government shutdown to make

somebody want to come to the table and negotiate? it's not the first time we've been here. the shutdown doesn't seem like it's that bad with some of the things that the concessions that the country is making as far as keeping some of the parks open some of these government workers going in i mean, is there really incentive to compromise? at what point do you really have to come to the table >> there is. eventually, the public gets so sick of what's going on in washington that that heat falls on the people who are running the government the incumbent members of the senate that can be bad for both parties. it usually is one party gets the bulk of the blame. but remember, these are also people who have run for office to affect the government they don't want to shut it down. they don't want to tear it down ultimately and so, you know, people, they have political interests, but they also have institutional interests. especially among democrats this is a more pro-government party than republicans a lot of those people don't like

services not being available people not getting paid. troops not getting paid. all of that generates pressure >> john, how significant will it be, if republicans unite in the next vote and all 53 vote in the same direction, for starting to shift the sort of image of who's to blame for this? if it's just the democrats that are holding out in the senate, does the blame start to move away from the president and republicans in terms of opinion polls and how it sits in people's minds and start to focus on the democrats? >> somewhat. the republican path gets easier if they unite their party. the underlying backdrop of this, though, is that president trump is seen as the most powerful person in washington and so democrats are going to direct their fire on president trump to try to get him to make a deal with them and also to influence not just the senate or the house. a lot of this is ultimately going to play out the things that the democrats want in the

house of representatives they need paul ryan to go along, too. as well as donald trump and he ultimately takes more heat than anyone else. >> thank you, john appreciate it. coming up, the top stories and a look at the global market picture. we'll be right back. faster than the average. that means powering more devices, more video conferencing, and more downloads in seconds, not minutes. get fast internet and add phone and tv for only $34.90 more per month. comcast is building america's largest gig-speed network to give small businesses more. call 1-800-501-6000 today.

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u.s. futures pointing to a lower open this morning. what the shutdown could mean for your money it's monday, january 22nd, 2018. you're watching "worldwide exchange" on cnbc. ♪ just like fire good morning, a very warm welcome to "worldwide exchange." on cnbc i'm wilfred frost. >> and i'm courtney reagan in for sara eisen. >> great to have you here, courtney it comes after a week gains up about 1% for three of the indices. volume and volatility are both up we're looking this morning 70 points for the dow. 5 points decline for s&p, 9 points decline for the nasdaq. the big mover last week was the longer end of the euro the ten-year, friday closed at 2.55 last friday closed at 2.66

at the moment, 2.65. the steepening of the curve, the two-year does stay at a ten-year high and it just be featuring last week of the year sharply, however, over the course of the start of this year the federal government is closed this morning. but it could reopen after a vote this afternoon we're all waiting to see the senate is expected to vote at noon. and the new agreement that would fund the government until february 8th would be shorter than the previous bill it still includes funding for the children's health insurance program. the house is on standby while the shutdown plays out in the senate we talk about the impasse of the shutdown, good morning, lauren. >> courtney, there's a lot of confusion over the scope of the shutdown no one really saw coming unclear how long it's going to last government agencies are

scrambling to shut down things they have not touched in years remember, the federal government is the largest employer in the country. estimated 800,000 workers or more are being told to stay home today. and for essential employees, they're not getting paid that includes members of the military 90,000 national guardmen and 20,000 others this weekend 90% of employees are on furlough 80% of the commerce department and more than half of the irs is out today. now, the white house has been promising that the shutdown is different than the one that happened in 2013 it is encouraging agencies to use less money to stay open as long as possible but there are questions about the legality of that epa administrator scott pruitt has told employees to report for business as usual throughout this week and sanctioning a tweet for hard work and dedication also open today, the smithsonian

museums and some natural parks the press service is worried no one is there to clean. back over to you >> thank you, ylan i understand that government workers were getting happy hour specials in washington, d.c. >> that's right. if you're not going to work, you might as well hit the bar and enjoy a cocktail >> i like some of the names we saw over the weekend and for people to come together and try to take a step lighthearted ylan, thank you for that like being called nonessential >> like do you want to be essential or nonessential? yeah, what do you want >> like the government shutdown. >> there is essential. >> let's continue to talk about the government shutdown joining from us washington, daniel lippman, reporter of the

politico playbook. daniel, good morning to you. >> good morning. >> thanks for joining us what's your latest take for the likelihood that this gets cleared up in day three. and an important vote in the senate around lunchtime? >> yeah, i don't think anyone in washington is certain about what's going to happen at noon once senators wake up, there's going fob more negotiating between democrats and republicans. i think senate democrats are really worried if they make a deal with mcconnell about bringing up immigration to save those 800,000 d.r.e.a.m.ers, that's no guarantee that speaker paul ryan will do the same and it's hard for him to promise anything because his own base, you know, the gon serve tiff republicans that have elected ryan, they don't want to go along with any deal that that they are not part of making. and they had president donald trump to tell house republicans we have to settle this or else

the government will stay shut down for weeks >> that's actually a very good point. are unsure where president trump would come down exactly when it comes to reform or nonreform with the d.r.e.a.m.ers, that's what the democrats mean that president trump come out and say what he supports, what he doesn't, so that both partisans come together to decide whether to make the compromise or not. >> senate schumer said on the senate floor that negotiating with president trump is like negotiating with jell-o. where he will make a deal with president trump and a few hours later, trump will get pressured by his own staff and also republicans on the hill who say we want to be in this deal, too. you just can't give away the store. and i think trump has to really come down to going to congress and making a deal himself. this weekend, the senate at the white house could have -- would have rather been at mar-a-lago

celebrating the one-year anniversary of his inauguration. he was not a happy camper -- he doesn't like to spend winter weekends in very cold d.c. at the white house. >> daniel, the past shutdowns that we've seen happen, we've seen that they've influenced the upcoming midterms if it happens a matter of months after it. what's your take, as to which party is likely to affect this more with the approach of the midterms >> so in 2013, republicans got the brunt of the blame for the first few weeks or months after they forced the shutdown with president obama. but later that election cycle, in 2014, they actually gained seats. and so, it's a lesson that democrats are facing which is, even if they get is some short-term blame, the average american is not going to remember as much about the shutdown in six months or eight months when they go to the polls for the midterms

and i think democrats feel like a blue wave is coming that, you know, they don't want to jeopardize it. but they also feel confident that their base wants them to stand up to president trump. and especially for those d.r.e.a.mers, you know, that's a core issue for them. they feel pretty good about where they're at >> daniel lippman, thank you for joining us for corporate stories, ubs is the latest to announce the hit from the overhaul from the tax. and it took a 3 billion writedown as a result of the tax changes. among the other headlines from ubs, though, it's increasing its dividend and reintroducing its buyback program for francs >> wilfred, you point out there

are a lot of things going on here >> there's a lot of things at stake here in change of direction in terms of spending and capital. carl icahn and deason are reportedly pushing xerox time to call on the company to explore alternatives which could include selling itself, with a joint venture with fuji film and immediately firing jeff jacobsen and with a pitch coming from twitter. landon dowdy is joining us with the new ceo, he is expected to make a decision in the coming day, with the most valuable financial tech startup in the u.s the online lender has been without a prominent ceo since mike cagney stepped down last

year amid a sexual harassment lawsuit filed against the company. noto is a former executive at goldman sachs. he has led twitter's live video including the streaming of nfl games in 2016. it's recently up 17% in the past six months stock is down just slightly in trading. back to you. >> that's to the weather on "worldwide exchange" and the best reads and 73 points on the dow back in a couple minutes

welcome back to "worldwide exchange." i'm wilfred frost along with courtney reagan this morning the government shutdown, the talk of the market impact. how can that affect you. hi, contessa >> reporter: hi there, it's good to see ou. you know, all weekend long here, wilf, the tourists were culling to battery park in downtown manhattan trying to get on ferries to get to staten island and the statue of liberty. all of this of course, to the government shutdown. we're in day three of the shutdown, they were all told they needed to stay off the job, so they did. what that meant for the tourists, they had to get out there and turn around and make other plans.

it's not the only thing that has been a problem here. according to the governor's office, he said the shutdown affects 12,000 people who would have paid $21.50 each to see lady liberty have been turned away in 2016, those flocking to the sights spent more than $620 million. and $65,000 from the state tourism budget it's more than they did in 2013 during the government shutdown to keep the place up and running today when tourists come the plan is they won't be turned away they'll be able to get on the ferries to see the statue of liberty. what else is open, we're told that the washington view which is run with federal dollars will be accepting tourists. the smithsonian will be up and running today. the whole part on the plan of the white house was not to the weaponize, their term, the

government shutdown. so some national parks are put in the private institutions like the cafeterias, perhaps if run by private institutions up and running so people could continue to visit the parks and the shuttle service very important. we also know that tsa will be at the airports today so that continues but death benefits for military survivors, they won't be getting those checks. though, social security is being processed. things like that get very frustrating. and it's time to get the information and means you have to spend a lot of time on google tracking down what's important to you >> contessa, thank you for doing that for us. live in new york this morning. now for must-reads the stories catching our attention my take in the "usa today" titled government shutdowns are now normal and compromised he goes through the full reason that government shutdowns used to be rare and including that quote compromise is now a four-letter

word that can be used in a company. in today's hyper partisan political compromise, compromise is seen as collaborating with the enemy. pretty strong words there. but i think he's trying to make a point in trying to get that appoint. and stalemate seals to be common these days but we've really only had three shutdowns in recent history. it's not like it happens every day, every month, all the time but good luck, it seems to be becoming a norm. >> absolutely, you're right. clearly, all of the opinion pages have their takes on the shutdown a similar one in "the new york times" entitled what the shutdown says about the future of the democrats michael thomasse writes, schumer has led the party through a risky shutdown not because he's a different person it's because the democratic base would have demanded the way that base would not have a decade or

so ago it goes into complications of more of a stalemate. one of the conclusions is we could be heading here in the u.s. to more of a parliamentary system where the two parties take aheadline views against each other that's one of the possible outcomes >> if you're looking for an opinion, those pages are full of it today >> exactly let's move on to top trending landon is back with this hey, landon. >> hey, guys, we're still talking shutdown bun d.c. bar is capitalizing, capitol lounge a spot for staffers is now offering a special shutdown cocktail menu some of the drinks include the fake or not to plake >> a lot of fun. it's a positive in everything. this is one of the positives

>> you can shut down the government but you can't shut down -- >> drown your sorrows. it's also awards seasons making headlines, kristen bell hosted the awards all with the me too and times up initiative the night's winner and talking home the best female actress. >> and what's the big deal is that how far they're going to jump >> like in the 40s again >> i finished season two last week i think it's still outstanding season one is a lot better, i thought. >> okay. all right. you're entitled to your opinion. i like them both equally i think they're great. looks like harry styles has caught the eye of james bond

bosses sayi sayi saying styles could pull off the role >> i love harry styles >> he's 23 versus 49 he's like debonair >> yeah. he just have started 10 or 12 years ago. you want somebody mid to late 30s when they start so they have time you got to look -- but he looks even younger >> yeah. >> he is young >> you know -- >> he's played a role. >> well, we could be taking you shopping, guys amazon check out free grocery store opens with the store known as amazon go with cameras and sensors to track the shoppers customers are billed after

leaving the store using a credit card on file >> this is huge. the big question will be do they now take on every single retailer >> it's like uber as a taxi. >> they've become the most piece of software in every retrailer across the country >> this is only 1800 square feet it took them a long time to figure it out. they had to teach the algorithms for the unpredictable shopper patterns and that took a long time >> it adds to the stores across the country. they say so far they're not planning to roll it out. >> that's rubbish. >> you know, this is a massive next test for another area of amazon >> it is it does of course open up debates for what happened to the store workers. amazon is saying, look, they've redeployed and using them in different areas.

it doesn't mean we're getting rid of people. >> landon, thanks very much for joining us now to sports, super bowl lii in the afc title game, the patriots came back from a ten-point deficit. the pats beat the jaguars 24-20. tom brady will be going for his record sixth super bowl victory. in the nfc, philadelphia eagles versus the minnesota vikings eagles dominated 38-7. philly goes to the super bowl for the third time in history. you can watch the game on february 4th las vegas already has the patriots as the favorite >> i want to say congrats to our number one james kramer as well.

i went to a pats game. i'm available for next year's games as well. the government shutdown take a bite out of the u.s. economy we'll talk to one of the nation's top forecasters coming up next. these birds once affected by oil

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prevagen. the name to remember. welcome back to "worldwide exchange." joining its now, the chief economists for the americas. good morning >> good morning, wilfred >> thanks for joining us, the last major shut downs, '95, 2013, did that have a big economic effect? >> no, they haven't. fortunately. the last one in 2013, the economy grew 4% in the fourth quarter, so, no, they don't have any impact the only time in the past the markets have gotten nervous, wilfred, is when the government shutdown has coincided with the need for congress to increase the debt ceiling fortunately, that's not a part of this one.

so, i don't see any lasting effect so my guess is the economy if the weather isn't horrible, will probably get around 3% growth. >> other things that you have to pay attention for that to welcome a real event like wilfred said in the past five days to 21 days what if it goes four months? >> it would be unusual, courtney for it to go that long, from 21 days we've had so many of these, 18 in total, that the markets are pretty comfortable and because the people haven't gotten paid ultimately get paid retroactively for any pay they've lost, there's no real income effect. so, my guess is unless markets were to wobble, which i don't expect to happen based on this this would be just yet another government shutdown. a lot of bloviating by the

parties and move on next to the next crisis. >> what could make markets wobble what's the key respect that you're looking at? >> i'm very bullish on growth, wilfred. and have been for the past 16 months or so if the economy performs as i believe it will this year, i'm scared that the feds might become more hawkish and all of a sudden the market is up a lot more tightening and that causes risk change and stocks to sell off. that would be my big risk. that things are actually too good on the growth side. >> what's the number of hikes we see this year? >> i have two hikes because i don't see any inflation. but that doesn't mean the market can't price four or five which is where the trend is going. there's just not any inflation >> if we had two to four that wouldn't be enough to scare the market, right? >> well, here's the thing, wilfred, if the market right now is agrees with me, two hikes, if all of a sudden, we're pricing four, okay, that's two extra,

that shouldn't make a big deal for 2018 but all of a sudden, what does that say for 19 and 20 you get more hikes with indication of similar rates higher that's where you get a problem >> joe, great stuff. thanks for joining us. we'll leave it at that "squawk box" is next being rammed by a shopping cart. sitting in gum. and walking into a glass door. but for everyone else, there's directv. for #1 rated customer satisfaction over cable, switch to directv and get a $200 reward card. call 1.800.directv

good monday morning, it's government shutdown day three. the government tries to strike a deal with a late night vote. the latest from washington straight ahead plus the top corporate stories including banks, 11 million pharma deal and what carl icahn wants done with zeer rockxerox. as you may now know, the stage is set for super bowl lii.

we've got the stocks and highlights right now live from new york where business never sleeps. this is "squawk box. ♪ good morning, welcome to "squawk box" right here on c nbc live from the nasdaq market site i'm scott watson along with shelli evans joe and becky are making their way to the economic forum in davos. guy is here. >> with a replacement. >> bright and early. >> this is a tough role to be in >> it's great! >> monday, the three of us will have fun for an hour >> let's get to it >> we will let's take a look at how economic futures are shaping up after a fairly volatile week the dow down by 70 points. s&p also a touch negative off the open this morning. take a look at how the trading sessions are going one overnight in