netflix rises very strongly. the streaming giant is now worth more than 1$100 billion followig strong subscriber growth and upbeat guidance. back to business in washington president trump signs a bill to end the government shutdown. and the most powerful business leaders and heads of state are gathering in davos, switzerland today. we'll bring you a front row seat it's tuesday, january 23, 2018, "worldwide exchange" begins right now. ♪ very good morning.

a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's get to the market picture. the nasdaq up yesterday a percent, the s&p just less than that the dow up a half percent. we had nine out of 11 sectors higher led by telco and energy this morning we're expected to open higher, about 79, 80 points for the dow. the s&p up 6 points. the nasdaq up 32 points. ten-year treasury note yields rose again yesterday. up to about -- yesterday we got up to 2.66 today 2.62 the trend of late has been a rising and steepening yield curve. asian trade for you, strong across the board we did have a bank of japan meeting which, as expected, kept things in line as they were. the statement also very, very similar to last month. the nikkei rallied 1.3%.

the yen not doing too much off the back of the season a strong session across all of asia we talk about the rally that's continued at the start of this year the likes of hong kong up sharply. already strong out-performers last year. hong kong up 3.2%, adding 1.6% so asia has taken off this year. european trade, more mixed year to date. positive today, but not resoundingly for most of europe other than germany, up 0.8%. dollar board for you, we saw the dollar slip down 0.2% yesterday. it is stronger today, but not significantly against the euro and the pound. but against the yen it is weaker the pound overnight did cross the all important 1.40 level, but it pulled back the dollar has been weak it's been strong against the

euro, but less so because the euro itself has been strong. netflix shares are popping, the streaming service adding more global subscribers than expected here's what reed hastings had to say about the growth >> the real driver is to make the big titles bigger. so what happens is so many people are talking about bright or stranger things, or "the crown" that pulls in people who have not yet joined, all their friends talking about the shows. that's the dominant accelerator. >> earnings and revenues were in line the company's upbeat guidance pushing netflix shares to an al al all-time high. joining me on the cnbc news line is daniel ernst. daniel, extraordinary performance again from netflix subscriber growth did not just tick up, it accelerated, that's

despite some price increases during the quarter that was the big surprise in the earnings, was it not >> yeah. they added about 8 million subscribers in the quarter alone. estimates were for around 6 million on a global basis. and last year this time they added 7 million. so it's an acceleration of the growth you don't often see that they have 11 million subscribers around the world there's no other network, television network that has a global reach like that netflix's customers are there with them. they have a relationship with customers. there was almost no volatility in the stock around the price increase i think people realized how sticky this business has become. the way i looked at it was is there any other service that you use, whether it's your mortgage,

whether it's your car, whether it's your cable tv, any other service you could think of that actually earns the price increase over the last couple of years? i can't think of it. they keep investing in more content. they have that cycle the more they have content, the more subscribers they have, the more subscribers they have, the bigger budget they have. and it keeps fulfilling itself it's pretty tremendous >> let's talk about that investment in content. clearly it's not cheap and probably more important than ever as we see rivals like disney pull content off the netflix platform and make moves towards launching their own rival coming forward this expectation of how much they'll have to spend on content continues to rise. and the flash flow is still negativ negative >> correct on disney and competition, they

had big competition from the outset 15 years ago it was blockbusterment concern that amazon would get in. amazon gives away their service for free hulu is a fantastic service. but in the course of seven years, they have added 17 million subscribers. in 2017 alone netflix added 24 million. so there's plenty of competition for sure on other content that's happened to them, and that's why netflix has been investing in their own content. clearly they saw that coming there's still going to be networks out there that will say, when you look at the way the syndication of shows are sold, they will say where can we get global distribution and who will write us the biggest check? if you take a cbs with the new star trek show, domestically

that's on cbs, but internationally it's actually a netflix original so netflix co-invested in the content and took the international rights a lot of this could be fluid on the cash burn, absolutely they burned over 500 million in the quarter. they could burn between 3 billion and 4 billion next year. yet the bonds are trading almost at par because of that recurring revenue stream if they wanted to they could be more profitable today. as they grow international, they have to add languages and more depth of content for every country they enter but domestically they have about a 34% contribution profit margin, internationally around 8% so if they were to stop growing as fast today, they would be earning $2 billion more per year which is more than the content increase they plan to spend next year >> okay.

daniel, great stuff. thank you very much. daniel ernst shares up 9% among the other top stories, trump is slapping tariffs on imported solar panels and large washing machines the u.s. will impose duties of 30% on solar equipment made abroad this threatens to impact a $28 billion industry on parts made overseas for 80% of its supply solar stocks this morning, mixed performance. we have first solar and vivint up 5% and %. sun power is down a bit. tariffs on large residential washing machines will range between 20% and 50%. u.s. officials have said more trade enforcement actions will follow there's some moves at samsung and lg, both are up. i would imagine washing machines

are a small part of samsung earnings it was a strong session across the board in asia either way so these tariffs not affecting those manufacturing. whirlpool up 3.2%. bosch is a big manufacturer in germany of these products, it's a privately held company so not listed. ba bicardi is buying patron landon dowdy has more. >> we have to call it patron >> we do have good business for you. bicardi is buying patron in a deal worth more than $5 billion this comes as more companies scramble to own more top shelf spirits. high-end tequila shares have soared from 2002 to 2016

brad cooper says the deal demonstrates the need to adjust portfolios to be on target with consumer demand as drinke erers shift from beer, rum and vodka patron is facing increasing competition from jose cuervo as well as celebrity-back the brands but diago brought george clooney's brand for $1 billion the rum giant likely saw challenges in the core portfolio and were seeking a stop gap and they found is in patron. back over to you >> patron. i did know that one. i'm annoyed with myself. lovely to have booze news in the morning. the world economic forum's annual meeting is under way in davos, switzerland it brings together heads of state, policymakers, academics the theme this year is creating a shared future in a fractured

world. joining us from davos is scott minnow, chairman of investments at guggenheim partners good morning to you. >> good morning to you >> scott, i thought i would start off the back of an amazing move overnight in net fliflix, l us about the tech and the f.a.n.g. names in particular they kicked off this year in a positive fashion after a great year last year >> i think f.a.n.g. names have had a great run. who know how high up is in this market there's probably some better plays for people who want to take advantage of the change in the tax code in the united states looking at financial stocks, that seems a more interesting place to go. and with the run up in energy prices around the world, you know, the energy companies

certainly are interesting. in the u.s., master limited partnerships are interesting the great laggard has been emerging markets you look at chile, you look at brazil, even china these markets have more head room and i think the run there will be more interesting than playing the f.a.n.g.s. >> in terms of being at davos, clearly a lot of focus on the economy as opposed to the market will this be one of the most upbeat and positive davos gatherings for the better part of the last decade given the global economic outlook? >> i think so. the level of optimism here seems very high. you know, i was thinking this morning about my participation here two years ago when energy prices were approaching 25 theres a barrel for oil. stocks were selling off. the negative tone then really

verged on depression people were talking about a recession. further declines in asset prices sure enough that marked the bottom being here now with optimism so high, it really starts to raise questions in my mind about, you know, how sustainable this run will be. you know, our own internal work says that if we continue, if we're truly in a melt up and this will turn into a bubble for equities, the upside is 3600 on the s&p. but the problem with that is so many people view -- share that view that there's unlimited upside that the euphoria might be getting a bit carried away, and it might be time to lighten up on some risk assets >> what could be a catalyst to make some of those risk assets correct and pull back. interest rates and yield curves

are something people focus on. so far most of the fed fund rates have not derailed optimism at all >> no. it's very interesting. when you look at past tightening cycles, like the one we went through back between 2004 and 2006, equities continue to rally as the federal reserve raises rates. so i don't think it's going to be rates that are going to be the cause of a stock market correction you know, more likely it's going to be something that we don't really see or expect today and we have been spending a lot of time trying to find where the possible catalyst for a selloff would be at this point there's nothing that would be glaring. so i think these kinds of things have a way of playing themselves out. one thing that i've looked at hard is liquidating the cash positions in equities, and buying call options.

for instance, you can buy one-year calls against the s&p 500 for less than 5%, and you can buy at the money calls on emerging markets for 6% or 7%. if you want to continue to participate in the upside, a move towards an option strategy, especially when the vix and volatility is so low that gives you the upside bet with the risk of picking the timing on the down side. >> that's an interesting perspective. i guess with volatility low that can be a cheap strategy. dollar for the year ahead does it remain weak >> i think so. going back to the 2004 and 2006 experience that we had, as equities climb, does the fed continue to raise rates, the dollar continue to weaken? i think that will be good for corporate earnings in the u.s. and we could probably see s&p earnings at the end of the year, a year from now running around

$160, which again seems to bode well for equities. >> great stuff thank you very much for joining me keep warm and enjoy the rest of the davos week our cnbc parade of newsmake sers ju newsmakeers is just getting started. coming up next, tim adams. why he's calling 2018 the year of the frogs i don't think that mean the the french i think he's referring to the acronym. in the next half hour, bob dudley will join us. stay tuned u' wyoreatching "worldwide exchange" on cnbc.

. welcome back to "worldwide exchange." the annual meeting of the world economic forum is under way in davos, we are joined by tim adams. good morning to you. >> good morning. glad to see you. >> indeed. tim, we mentioned that you're calling this year the year of the f.r.o.g.s, not necessarily the year of the french in particular but why f.r.o.g. >> here in davos the bulls are running the street, maybe the year of the bull it seems like the bullish sentiment here is overruling any caution. nobody wants to hear anything about bad news or complacency.

>> tell me what you meant by the concept of frif u.r.o.g.s >> central banks are trying to normal size monetary policy after this extraordinary period. how they do that, what the phillips curve looks like is a function of the output gap we have been doing analytical work, trying to understand what that output gap looks like as we better understand where those inflationary pressures might rise that leads to our f.r.o.g.s document >> in terms of where those inflation pressures might rise, stateside, do you expect it to pick up meaningfully this year >> sure. we expect it to pick up. still we're in a different economy than in the past we have to think we live in a services economy, but even then some old models still apply. economic growth is robust.

wages will pick up i think we'll see that in terms of inflation >> one big possible risk for the u.s. many people point to is protectionism, whether that's with china or in the nafta renegotiation. this morning we heard of tariffs being imposed by the president on solar panels and washing machines does that concern you? do you fear for things like nafta falling apart more broadly? what impact would that have? >> i do worry about nafrt ta i think a failure of nafta would be damaging to the u.s. and mexico and canada. the signal it would send globally is unfortunate. the cases you cited were based on good facts, and probably legitimate cases i hope they're isolated and there's not a broad based effort to unwind some of these trade agreements which have led to the growth we were talking about >> is there hope out there for these sorts of discussions the pound rallied past 140 this

morning. it's since pulled back largely this year and last year that rally in the pound has been on hopes that a brexit deal could materialize for all parties included do you think that's likely to happen >> i do i think everyone accepted brexit will happen. it's a question of how quickly and what might be the collateral damage again the bulls are running. i think no one wants to hear a cautionary tale of complacency it's looking through and the glass is half full in just about every market we're priced for perfection. even in brexit people are trying to see the possible aspects rather than downside concerns. >> tim, thanks for joining us. enjoy the rest of your time in davos. coming up, the shutdown is over, but the government is only funded through febar8truy h. what's next? we'll head to capitol hill for answers on that.

the u.s. government is officially reopened for business after president trump signed a bill to end the government shutdown tracie potts has all the latest. >> the latest is that we have a flu deadline it's february 8th. the president signed off on that last night and he tweeted that democrats caved here, and he wants to focus on the military and border security >> with the stroke of the president's pen, the federal

government reopens today with a three-week budget for now and a commitment to finding a solution for d.r.e.a.m.er s next month. >> this immigration debate will have a level playing field at the outset and an amendment process that is fair to all sides. >> what changed? democrats decided to trust a republican promise >> while this procedure will not satisfy everyone on both sides, it's a way forward >> the yeas are 81, nays are 18. >> nearly two dozen democrats voted no skeptical the daca deal will happen before the march deadline the white house says the president is all in on immigration. >> a big priority for this administration is making sure we address this program in its entirety, not just that one piece of it. >> federal employees are relieved the shutdown is over.

>> i need the money for my bills. >> reporter: some bracing for another standoff >> we'll be back to the same situation. >> reporter: crisis averted but only for three weeks so, this actually extends c.h.i.p. for six years and rolls back some of the obamacare taxes, the affordable care act taxes that republicans wanted to see go away. >> thank you very much for that. as you say, a few weeks we've kicked the can down the road i'm sure we'll revisit the same issues then. still to come on "worldwide exchange," the top stories including netflix topping 1$100 billion in market capitalization. china responding to president trump slapping a tariff on solar cells. and uk regulators saying a bl'sfox deal is not in the puic interest. that and much more still to come on "worldwide exchange."

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the 1$100 billion club. netflix is the newest member after shares soar. trumponomics the president slapping tariffs on solar panels and large washing machines. and the world economic forum under way in davos, switzerland. bob dudley will join us live from there in a couple of minutes. it's tuesday, january 23, 2018, you're watching "worldwide exchange" on cnbc.

♪ good morning a warm welcome to "worldwide exchange." i'm wilfred frost. good day on the markets yesterday. up about a percent for the nasdaq the s&p was up just less than that we saw the dow up about a half percent. it was broad 9 out of 11 sectors were higher. this morning we're pointing higher, 73 points higher on the dow. the nasdaq doing nicely, up 30 points or so ten-year treasury note, yields ticked up yesterday. just pulled back, 2.63 the yield on the ten-year. markets around the rest of the world, asian equities a strong session across the board the bank of japan having a policy meeting and changing pretty much nothing at all the minutes and the voting pretty much in line with last month's meeting.

markets strong today in asia and have been so far this year as well european trade for you, it's led higher by germany. which is at another record all-time high or was moments ago. up a nice 0.8% the rest of europe higher. but just slightly. today's top corporate story, shares of netflix popping after an upbeat earnings report. >> shares are moving higher thanks to better-than-expected earnings as the streaming giant added more customers than anticipated. earnings and revenue were in line with street estimates as for subscribers, netflix added added 8.33 million in the quarter.tributing that to a strong lineup of content and he expects that trend to continue take a listen. >> the real driver is to make

the big titles bigger. so what happens is so many people are talking about "bright" or "stranger things," or "the crown" that pulls in people who have not yet joined, all their friends talking about the shows. that's the dominant accelerator. >> hastings saying as long as they improve content and experience then asking customers to fund that at higher levels is reasonable look at the stock, netflix is up about 9% in early trading. back over to you >> thank you very much for that. president trump slapping tariffs on imported solar panels and large washing machines china is responding. eunice yoon joins us live from beijing with some of those response headlines good morning, eunice >> yeah, china's commerce ministry almost instantly responded to the trump

administration's decision to impose tariffs on both solar panels as well as washing machines in a statement on its website the ministry called the move an abuse of u.s. trade remedies and threatened to take retaliatory action saying china would resolutely defend its legitimate interests. china's most concerned about solar panels because this country is the largest manufacturer of solar panels and in the past has been criticized for subsidizing the solar industry and flooding the der na international market with cheep p cheap products seoul said they would likely take the case to the wto the minister said the move was based on domestic politics rather than international rules. for south korea the issue is the washing machines that's because two of the best known companies, samsung and lg, are among the biggest manufacturers of home appliances

in the world so we saw some movement in their stock prices today samsung also put out a statement saying the decision is a great loss for american consumers and workers. as for lg, they called the move misguided and said it would likely threaten many american jobs >> eunice, thank you very much for that report. as we said earlier, washing machines a small percentage of sales for the likes of samsung and a strong session across asia in other corporate news, 21st century fox's bid for sky being provisionally rejected by uk regulators regulators claiming the planned takeover would give rupert murdoch and his family too much control over the media joining us is arash masudi of "the financial times." the headline seems negative for

sky. shares are trading up. is that because there's light at the end of the tunnel despite this initial rejection >> yeah. the headline is negative as you go through the cma's findings you could read it as a win for murdoch. they found a deal would violate media plurality, if you think about all the assets news corp. owns in the uk, the sun, sunday times, and throw in sky news, they found over a third of the country's media would be controlled by rupert murdoch, but there are remedies if you go through the findings, some of that includes a divest picture divesture of sky news, and the fact that sky would be ultimately acquired by disney if a deal with fox goes through as a result, the market is reading between the lines and saying this is not that negative >> do we expect sky news to be divested or shut down?

that's clearly not an outcome that sky initially would have wanted to do, even if it's a remedy that will get a deal over the line. >> bear in mind they held out the threat to regulators that sky news was not guaranteed a concern if the deal was rejected in terms of brinksmanship they have put that card on the table once it's not clear obviously the sky newsroom would be slightly concerned about today's findings, but ultimately it comes down to a question of how committed fox is on pushing and seeing through this deal with sky and keeping sky news versus how it wants to sort of position it vis-a-vis its transaction with disney. so not clear at the moment a couple cards could be played that's why themarket is readin this as positive because murdoch and fox live to see another day. >> and sky news itself is a lossmaker, so if it was shut down, not bad for the shareholders share price up on that the other

big consideration in peoples minds was not just the media plur plurality, that control that the murdochs might have in terms of market share, but corporate governance, whether we point to the phone hacking that took place some years ago in the uk or some sexual harassment allegations with fox news in the u.s. that has not been an issue in the cma's minds, which many thought it would be. >> exactly that's where the market is happy to see the news that they found that there was a genuine commitment to public broadcasting standards, and that fox's ownership of sky would not violate that it wasn't entirely clear which way this would go. most people would say it wasn't a concern for the cma, but the fact it hasn't been identified as a concern or despite the sexual allegations at fox news, and the phone scandal industry, none of this was enough to stop

the cma from basically giving their support for that side of the deal >> so there's now discussions s and the final decision is when >> may 1st is when the final findings of the cma need to go to the government. so there's a period of hearing from people and people will submit concerns. fox will sort of present remedies, which we'll find out what it has in mind for sky news or thinks if they can push through the deal by saying this thing will be owned by disney. it's not a big deal. the cma's concern is that the disney deal itself will take time to close and the cma has to make a ruling based on this transaction. so there's a bit of gamesmanship on timing. >> thank you very much for joining me sky up about 2.5%. landondowdy has a look at what's buzzing this morning.

neil diamond is retiring from touring. he canceled his tour dates for australia and new zealand on advice from his doctors, this coming after recent diagnosis with parkinson disease he was halfway through his 50th anniversary tour >> never got to see him live >> neither did i "game of thrones" stark sisters are teaming up for another special project. sophie turner's wedding. turner asked her to be a bridesmaid to pop singer joe jonas. they are waiting until the final season of "game of thrones" wraps up before planning >> the bigger story is with harrington and his previous love interest on the show as well >> right >> but i love this that's a great thing, and it shows they are getting along well >> it's like us. >> am i going to be a

bridesmaid >> sara already took that role >> i will dress up as a bridesmaid >> you would look lovely if a dress. still to come, we're heading back to davos for another cnbc newsmaker. bob dudley joins us live in a couple minutes

welcome back to "worldwide exchange." let's head back to the world economic forum in davos. joe kernen joins us with a special guest. good morning to you.

>> wilfred, you say "worldwide exchange" exchange so well, then i think of the way you say -- any way, thank you for having me on your show appreciate it with us from davos is bob dudley, ceo of bp one thing i noticed immediately, i saw a lot of your teeth, because you're smiling you didn't expect oil prices to get here this soon, did you? >> i didn't. it takes pressure off. it feels different than last year when we were here >> helps, doesn't it >> it does help. >> what changed with your forecast you in the short-term and intermediate term i don't think expected anything above 55 or 60 some wall street banks are saying now 60 to 80 is the next range. do you believe that? what changed, do you think >> it could happen there's a lot of geopolitical risk premium built in. >> is that what it is?

>> i think there's $5 in it. and people forget there's a weaker dollar, which raises the oil price now. >> aren't we at a point where there's more of a short fall in production than people expected globally with the economies being stronger >> stock levels are coming down. demand has come i more i do think we'll see the shale come back on, moderate this as a shock absorber >> did we get sort of taken in by just arguing on the supply side of things and forget? we didn't -- demand didn't seem to play a role because of the renaissance in the united states it was all about we didn't -- all the ply came supply came on we took our eye off demand demand is stronger than expected >> with low price you create more demand. as the price goes up, some of that will moderate opec has pulled production off the market stock levels have come down,

probably hit the five-year average this year. >> so we hear about domestically things get shut down at lower prices, but they're able to be turned on quickly. in terms of 80%, 90%, whereare we in terms of being all out for production in the united states? >> i think there's discipline pack in the u.s. with cash people have been using the cash, plowing it back into things. putting pressure on the u.s. side to create more returns. so they're more reluctant. you can see it building up in the well inventory i expect u.s. production to rise again. it is coming up. it could be another million barrels a day. 10 million barrels a day >> when it comes to the news from the trump administration on opening up all the offshore leases, out of all the ceos, you seem to be sort of the most tepid in your response i thought immediately burn

once -- whatever the expression is are you hesitant to go full force in that because of the experience of bp a few years ago? >> i think it's more we're long-term industry you have to say yes, there's things out there we want to work with, but go throw we are disciplined now after what happened with our capital frameworks we have a plan >> you're not gun shy offshore >> no, we have a huge business in the gulf of mexico. i think part of the eastern gulf, far away from florida, which is closed. what did you think of the closing in florida you read the cut issthings, but apparently zinke didn't check with the president on agreeing to rick scott's request not to do florida >> i read that >> you don't have an opinion >> i don't have special insight of it. >> where would you -- you said

the problem in florida, you could see the drills, is that the issue or are they worried about a spill on the beaches >> i think geologically, there's an imaginary line that goes down the gulf of mexico, sort of in the middle of it and things way out away from florida on the other side of that could be perspective. going up near the beaches of florida, i think i am gun shy of that i think we're a safe company, but anyone -- >> how will the industry approach anwar >> anwar is -- people have an image of anwar as beautiful white mountains, streams, forests. it's really coastal plain like the rest of the north slope. we signed an agreement in 1997 that's been opened up. we have a piece of anwar >> you're one of the few there's some challenges. >> that's right. we're working with chevron they're the operator of this piece. we'll see what happens i think that area is

perspective. i think alaska wants to -- they would like to gop thedevelop th natural resources. >> we think of it as a place that could add to this -- i mentioned the renaissance in the united states. we think of it as -- we could open up -- is there more challenges than we think is it harder to work up there? >> it's in the arctic. we're been working up there 30 years. >> 65 enough to warrant it >> i think certainly with oil, you know, we will have some infrastructure and roads up there. a real opportunity for alaska is adding more natural gas. then they talk about being able to ship to asia and china. >> where are we in the development of lng, are we 10% of where we will be? 50%? that's an industry that comes into the forefront, isn't it

>> the u.s. is blessed with natural gas. it will be a boost to the economy. it will have so much of it, it will make sense to export some of it. we have three big plants now i could see ten down the road. >> you're on rosneft's board, aren't you >> i am. >> you deal with the russians all the time >> i do. >> we talk about russia in the news occasionally over here. >> i've seen i have a fair amount of experience in russia i lived there for nine years with my family >> are they horrible or -- are they frenemies how should we few putin? >> i could tell you, i've had some adventures there but never difficulties with the russian government i work carefully within the sanctions. but our experience and relationships there are good i think it's good to have people talking to them. i think commerce can bill

bridges. >> you're also not consensus in terms of -- do you think opec and russia will -- that deal won't end immediately. they will continue to, even with prices high that no one will decide to bruise more? >> no one said they could reach a deal, there's always a debate in russia about it, but i think the cooperation will continue. it's good for everything it's not good for the world to have a very, very low oil price, it's not good to have a high price. what should we expect from aramco any nonconsensus thinking there on what happens? will you do anything with aramco >> they're good partners with ours, we work with them on different initiatives. we don't have big projects in saudi arabia they continually say they'll ipo that they're going through the processes of picking which cities to list in. feels like it's moving >> all right thank you. >> thank you

>> great to finally meet you i've been a fan. watched you -- i don't know about fan, but you're constantly being interviewed by someone on cnbc, it's never me. >> it's all steve and hadley >> i will toss it back -- i know, wilf, as a true davos man, you feel the pull to come here, don't you? >> i've been once. >> are you bitter are you happy where you are? how would characterize your feelings being over there as everything is happening here >> pretty pleased. it looks cold, but i'm sure you'll have a busy week. >> who else do you have coming up today >> we have got a list that's beyond belief to be honest we have swartzman. we have dalio. we have rubenstein we have got the guy from hilton. tomorrow we have mnuchin i'm working on trump we'll see what happens i don't know he's going to be busy when he's

over here. it makes davos more exciting this year. the traffic certainly much bigger and that should be interesting to see when mr. trump comes to davos >> indeed it will. we look forward to the coverage. that kicks off on "squawk box" in eight minutes tim > ill ahead, the global market picture and the trading day ahead. oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall.

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this will be the first of many off-shore wind farms in the u.s. ♪for standing in your heart is where i want to be and long to be ah, but i may as well try and catch the wind♪ welcome back to "worldwide exchange." let's bring in simon derrick from bmy melon thank you very much for joining us the dollar continues to weaken is that something you expect to happen throughout the rest of the year >> i think so. this is no longer about yield seeking. this seems to be about concerns about whether funding for the fiscal deficit is coming forth over the course of the last six

months, china pulled away from buying the fed is in some balance sheet reduction. the higher yields are going in the u.s. the more the dollar is under pressure very different world doesn't seem as though that will come unstuck any time soon with the ecb and yields starting to normalize, the dollar will remained under pressure. >> in terms of the ecb, what do you expect from the meeting this week has the euro run up in the short-term too much? >> i think they will be worried about it there are always complains out of the ecb this is where euro becomes competitive, airbus becomes competitive. they will signal a note of caution, but other than throwing down the pace of asset purchase reduction, what can they do? they will be stuck with a higher euro from here >> simon, thank you very much

for joining me simon derrick of bmy monel huge "squawk box" to come live from davos

good morning we are live in davos with a huge lineup including the ceos of bank of america, uber, blackstone and cisco that's just this hour. back in the united states, the shutdown is over for now we'll tell you what congress needs to do to avoid a repeat performance. and netflix soaring. the streaming giant is worth 0 $100 billion we'll dig through that report on this tuesday january 23, 2018. "squawk box" begins right now.

♪ ♪ >> good morning, everybody welcome to "squawk box" on cnbc. we are live from the world economic forum in davos, switzerland. i'm becky quick along with joe kernen and andrew ross sorkin on our first day of coverage from the alps let's look at the u.s. equity futures. we know the major averages ended at all-time highs once again yesterday. dow futures now look like they're up 66 points s&p futures up by 3. nasdaq up by 24. look at what happened overnight in asia. you will see we are talking about gains also in the asian markets. hang seng closed up by 1.6%. and the shanghai was up by 1.3%. if you want to check out what's happening in early trading, green arrows there with the dax up b