museum-quality trophy watch without anyone next to you in the restaurant noticing. frank: now, that's what i call "stealth wealth." this was a major breach of trust. and i'm really sorry that this happened >> that's facebook's mark zuckerberg breaking his silence and apologizing in the wake of that damaging data collection scandal. more on his comments coming up. getting tough on china the white house expected to unleash a new round of tariffs today. we're live in beijing with reaction. and new video shedding light on that deadly self-driving car crash. it's thursday, march 22, 2018. "worldwide exchange" begins right now. ♪

good morning welcome to "worldwide exchange" on this thursday morning i'm contessa brewerment. >> i'm dominic chu here are the five big things you need to know right now wall street is pointing to a higher open following yesterday's mixed session. dow futures are down by 65 points we have taken a leg lower. the s&p slated to open up about 9 points to the down side. mark zuckerberg issuing an apology and promising big privacy changes in the wake of that data collection scandal zuckerberg spoke with several news outlets yesterday >> the fed raising rates for the first time this year policymakers upped their growth forecast for the u.s. economy and lowering the unemployment outlook. congress has reached a spending deal but lawmakers still need to approve the 1$1.3 trillion package by midnight friday to avoid a government

shutdown. and the white house is expected to unveil a new round of tariffs against china today the move is aimed at punishing china for intellectual property theft. we'll have more on those stories coming up. first facebook's ceo mark zuckerberg breaking his silence in that data scandal arjun kharpal joins us now what did he have to say here what kind of news is he making with these comments? >> look, zuckerberg and senior management at facebook were criticized for not taking this story and controlling it and laying some of the fears of users and investors. he's finally come out, put out a post last night explaining the steps facebook will take to protect facebook data, whether allowing them to revoke some access by apps he spoke in that post about this, but he never mentioned the word sorry he did rectify that later in an interview with cnn let's listen to what he had to say.

>> this was a major preach of trust. and i'm really sorry that this happened we have a basic responsibility to protect peoples data. if we can't do that, we don't deserve to have the opportunity to serve people. so our responsibility now is to make sure this doesn't happen again. >> so this whole episode has really thrown up questions about how social media firms should be regulated, whether there should be new regulation coming to the fore shares of social media firms in the past couple of days have taken a hit because of fears of increased regulation zuckerberg said he is open to seeing more regulation but they need to work out what that might look like. >> i actually am not sure we shouldn't be regulated i think in general technology is an increasingly important trend in the world i think the question is more what is the right regulation

rather than yes or no, should it be regulated >> what's the right regulation >> there's basic things and then big intellectual debates on the basic side, there's ads transparency regulation that i would love to see. if you look at how much regulation there is around advertising on tv, print, just not clear why there should be less on the internet >> now regulation, the u.s. so far has been absent. but over here in europe you've seen regulation come to the fore one of those is a digital tax. that was yesterday proposed by the european commission. that says that they are looking to tax revenues of some of these big tech companies that have used tactics to perhaps not pay as much tax as they should be. another upcoming regulation is known as the general data protection regulation in europe. that's aimed at giving users more control over data but also finding potential

companies that do breach regulations that are in place. analyst reaction so far to the comments by zuckerberg have been mixed. daniel eaves says this is a step in the right direction an analyst in london says this could hit users. we've seen over the past few quarters that daily average users have not been growing. so still a rocky time for the company. the true impact will be seen in the next few quarters for facebook >> also mark had said in that interview that he had not seen a big delesion of facebook accounts there there has been demand, this is something analysts were concerned about, about how much penalty they could face over this scandal and what the fall oout would be there's been requests for him to show up in the uk and answer those questions. did he have anything to say about whether he's willing to sit in front of lawmakers and hash this out? >> he said that if congress called him, he would be open to

going to testify in front of the lawmakers there. that depends on if he's the right person to talk about that. there's lots of questions about what potential impact regulation would have on facebook whether that means they face fines but for now zuckerberg seems content to allay the fears of those who feel their data had been misused in some ways. >> arjun kharpal, thank you. we'll have much more fallout today on the half time report with regard to facebook. you'll hear from one of the original founders of facebook before it became facebook. divya narendra will join us. his reaction to a terrible week for the social media network, that's today at noon on "the half time report." the fed is front and center

this morning following yesterday's rate hikes steve liesman has more on the central bank's latest moves. any surprises there? >> there weren't t the new fed chairman is seeming to play the role of middle ground chairman on policy. the rate hike is a quarter point. new range is 1.5 to 1.75%, and signal more rate hikes may be ahead. he said his goal even is the middle ground. >> on one hand the risk would be that we wait too long and then have to raise rates quickly. that shortens the expansion. we don't want to do that on the other side, if we raise rates too quickly, inflation then doesn't get sustainably up to 2%. that will hurt us going forward. we need to make sure inflation expectations are anchored at 2%. we're trying to take that middle

ground >> what did wall street think? they were sufficiently confused. look at some of the comments out there. goldman saying the market took the meeting outcome as dovish. barclays says gradual normalization strikes a middle ground like any opening night of a broadway play, powell got his share of reviews from critics, they were generally positive look at what ubs said. powell came through as we anticipated. straightforward and clear. jpmorgan writing powell's first press conference was crisp, uncontroversial and perhaps a bit boring, which may count as a success. let's get back to monetary policy the fed raised its outlook for interest rates not this year it was one forecast short of the four hikes, and upped the outlook to 4% by 2020.

powell said he sees only moderate stability risks, and sees more growth from fiscal stimulus he wouldn't talk about the idea of it being from the supply side or in the demand side. in the words of john lennon, did powell pass the audition yields are little changed so that's probably a win. but stocks were spooked. so they are not sure of the role of the new chairman. >> i wanted to follow up about tariffs and the fact he mentioned them and what he's expecting to watch for when it comes to donald trump and tariffs. >> what he said about tariffs was that the committee discussed it it seems as if the business contacts of the committee talked to executives in their regions all the time they got negative and reactions of concern from the business contacts but powell was not really commenting on tariffs. he said several times the federal reserve does not make

trade policy there is a measure of concern out there clearly. i'm pretty sure that most fed officials think tariffs are a bad idea, but that was not what powell indicated we'll see from the minutes three weeks from now the real talk about tariffs around the table >> steve, one more thing you've been a part of a number -- >> as many as you like don't limit it to one. >> how about this, you sat in on a lot of these press conferences. you've seen a lot of fed chairs come through here with regard to comments tell us what you thought of this first meeting. what were your impressions as a reporter who covers the fed. put it in context of how you think this particular fed chair and jay powell will go down in terms of communication skills against everybody else that you've seen. >> yeah. i tried to count yesterday i think there's been 28 press conferences by federal reserve chairmen i think i've been to all of them the first thing i noticed when i looked at my watch it was 3:15 when they were done. i thought the previous chairs

took the full hour then i said to myself, hey, has he answered as many questions? i looked around the room at my colleagues, all the people who usually get to ask questions did. he answered as many but maybe more questions and did it succinctly didn't give us a lot of theory pretty straightforward it will be easy for those in the markets and maybe those not in the market to understand what powell is saying that's a plus. i think eventually he will sometimes have to talk more theoretically and field more theoretical questions. he didn't have to now. that could be something that is a challenge for him. but i thought he did a good job. he's obviously a smart guy he's been a governor for five years. he's been sitting around the table, picked up the lingo over time so i think he did a good job i also think they're in a tight place on policy. remember, there's a major stimulus from the fiscal side

coming down into what they consider to be a full employment economy. and that's really his challenge. that's the two sides that's the middle ground he's trying to strike at a time when inflation is not at the fed's goal this is a tough time for a fed chairman, tough time for a new fed chairman i thought he did well. >> the yenl fegeneral feedback t jowl succeeded in his first press conference as chair. steve liesman out in washington, d.c., thank you very much. let's continue the conversation and bring in paul donovan, managing director at ubs wealth management. steve hit on a number of the highlights of the report one thing we want to focus on is inflation and wages. jay powell possibly saying the fed thinks we could be at lower levels of unemployment without stoking fears of real runaway inflation is that the take you got from some of this press conference material? >> i think there's certainly a suggestion of that

it's a bit troubling, to be perfectly honest i think there is too much faith in how accurately the old-fashioned wage statistics are capturing what's going on with cost pressures, labor cost pressures in the u.s. economy. because, of course, we are hearing in the fed's own beige book of increased sign-on bonuses, for example there are shifts with regards to self-employment, which may actually be increasing labor costs, but just not captured in the official data. i think there was a bit of complacency and failure to recognize that things may be changing in labor markets in the way that the old-fashioned methods of data collection are to the picking up. >> in what ways would they end that complacency what kind of tools should the fed use to address that? >> i think there is evidence

that the regional fed presidents, as we were hearing, do talk with business executives on a range of issues the beige book picks up signals which perhaps the official data is too rigid to capture if we see, as we have been seeing, rising pricing power by u.s. companies, that may be something the fed needs to be concerned about. less concerned where headline cpi or headline pc data are sitting, and more looking to the future and where some of these pressures are coming from. >> beyond the headline inflation number and data points, any other pieces of economic data you will look to as being a big indicator for how you think future policy will go down >> absolutely not. if you're looking at one or two pieces of data you're guaranteed to be wrong. so one of the problems that we've had with the u.s. an elsewhere is data has become

less reliable. the revisions to data are larger and larger, they're more an more frequent this is, again, one of the troubling things about the concept of data dependancy data dependency is how to be a central bank chair statement you come out and say we'll be data dependant but the data is not dependable when it's being revised so often. i think that the solution both for the central bank and for those of white house are trying to predict what the central bank will do is not to look at one or two data items we've got to look at the broad trends we've got to look at a wide number of data items to get some sense about what is really going on in real time in the economy >> of course everyone feels as though jay powell as fed chairman will be data dependent fed reserve chair. thank you very much paul donovan for joining us. new videos of that deadly

crash involving an uber self-driving car meg tirrell has those details. >> good morning. police in tempe, zone fa relear released a short video of the uber suv that struck and killed a pedestrian a warning that this video may be shocking to some viewers the video first shows the exterior view of the vehicle which was in autonomousmode as it was driving along a dark road then an image of a woman walking a bicycle is in the headlights the video also shows the interior of the car with the safety driver behind the wheel who appears to be looking down before the crash the pedestrian later died from injuries her death is thought to be the first caused by an autonomous vehicle. police released few details about the accident uber suspended testing temporarily as has toyota, but other companies including ford and waymo are pushing ahead with

this technology. >> this raises so many questions about the role of the driver, the human driver that is supposed to be there for safety checks and whether there was anything that could have been done had the attention been on the road but also about the fail safes that go into the sensors >> the business side of this whole thing, not to be mercenary about it, is there blame to be assigned who is liable in this situation? is it the car, the softwaremaker -- >> the pedestrian crossing in the middle of the road >> this is such an early part of the cycle, the business for these particular companies that the developments here may be -- well, they will be precedent-setting with regard to ou peop how people operate these things going forward. up next, getting tough the white house expected to unleash a new wave of tariffs on china today. we're live in beijing with the instant reaction. later on, up in smoke. protesters struck a big vote in

parliament we'll see the video when "worldwide exchange" returns my time is thin, but so is my lawn. now there's new scotts thick 'r lawn 3-in-1 solution. with a soil improver! seed! and fertilizer to feed! ♪ ♪ now yard time is our time. this is a scotts yard.

welcome back to "worldwide exchange." i'm dominic chu. as you can see right now, the dow futures have taken a leg lower in the last 20 minutes or so we're down about 120 points for the opening bell

the s&p off by 16. this represents a slight, slight move above the session lows in futures so far we're at least deteriorating a bit. president trump set to announce new tariffs on china today the move triggering retaliation from beijing eunice yoon is live in the chinese capital with more. good morning good morning, contessa the message here is shifting from neutral statements like the trade war would be bad for everyone or china seeks cooperation or dialogue to a more stern the world should isolate the united states. the commerce ministry today issued a statement saying beijing opposes the u.s.'s unilateralism and protectionism, this after calling the united states a repeat abuser of world trade rules. the latest editorial also has a headline that reads the rest of the world must stand together to prevent a trade war.

behind the scenes we're getting reports that chinese officials have been preparing a list of u.s. products to target. the themes are generally that these products should be coming from red states, states that supported the president, and also u.s. agricultural products. today economists have been picking through what they believe could be impacted in china. so the feeling is that the impact will be limited because china does have such a large domestic market, and also because exports are a smaller share of the overall economy but there are some vulnerable areas, that includes cork and wood, furniture, apparel and footwear >> best buy is reportedly cutting ties with china's huawei technologies the move following similar actions from u.s. companies like at&t and verizon over growing

scrutiny of chinese tech firms american lawmakers raised concerns about chinese companies using their access to spy on u.s. officials you can see best buy shares down in the early trading >> just one comment here the reason why huawei is important is because we import more machine and electronics from china than any other category if you're curious where the biggest imports are from china, go to cnbc.com we have a great story about where we could see targeted tariffs and that kind of stuff happening. still to come on "worldwide exchange," more on the facebook fallout. mark zuckerberg breaking his silence on that data scandal. and later, grading jay powell, we'll break down the fed chair's firsnet ws conference. "worldwide exchange" will be right back

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i'm frances rivera in new york boston police say they uncovered a 25-minute video on the cell phone of the suspected serial bomber mark conditt. he describes how he built the device but not why he did it his family said he had no idea the darkness he must have been in. eight days after the special congressional election in pennsylvania's 18th district, rick saccone has conceded defeat to democrat conor lamb

lamb won about 750 votes in a district that donald trump won by almost 20 points in 2016. and two u.s. astronauts and a russian cosmonaut are on their way to the international space station. the russian rocket lifted off from kazakhstan on wednesday the crew will arrive at the space station tomorrow afternoon. they'll spend the next five months in orbit. you think they talk about politics at all? that could make for an awkward ride >> there's no place on earth that doesn't talk about politics, but maybe in space -- >> above earth, yes. >> thank you still much more ahead on "worldwide exchange" including the shutdown threat. congress reaching a massive spending deal, but the clock is ticking on lawmakers to avoid that government shutdown and a kangaroo hits the links and the video has gone viral. that clip when "worldwide exchange" comes back after this break. i'm not a bigwig. or a c-anything-o. but i've got an idea sir. get domo.

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>> this was a major breach of trust. i'm really sorry this happened >> mark zuckerberg breaking his silence and apologizing in the wake of that damaging data collection scandal more on his comments straight ahead. grading jay powell, how wall street took the new fed chair's first big news conference. and a viral video alert. something you might be talking about in the office today. a kangaroo pulls some punches on a golf course down under

more of this must-see video ahead. it might have been more remarkable if he was in the united states. it's march 22, 2018. you're watching "worldwide exchange" on cnbc. good morning welcome to "worldwide exchange" on this thursday morning i'm contessa brewer. >> i'm dominic chu brian sullivan is off today. let's get a check onthe global markets. we are seeing red and a deterioration of the futures picture. if the futures market stays where it is, and we do open up close to these levels, the dow will start the day down by 140 points the s&p down by 17 the nasdaq down by 68 points also a check on interest rates, the ten-year u.s. treasury note yield showing activity in the wake of what happened yesterday with the federal reserve's interest rate policy decision.

those ten-year yields, 2.85% the two-year, 2.30%. a check on the dollar, we're seeing some moves there, that complex reaction to the fed decision dollar weakness against the euro against the euro, 1.2342 >> shares of facebook still in the red as the company continues to deal with the fallout from that data privacy scandal. facebook's ceo breaking his silence and apologizing for the harvesting of that data. >> this was a major preach of trust. and i'm really sorry that this happened we have a basic responsibility to protect peoples data. if we can't do that, we don't deserve to have the opportunity to serve people. so our responsibility now is to make sure this doesn't happen again. >> business leaders outside the world of tech are weighing in on the scandal.

listen to what jpmorgan chase ceo jamie dimon had to say yesterday afternoon. >> all of that data, location, shopping, sites, where you travel, places you visit, all of that has been accumulated, sold, marketed around the world. so facebook is a piece of it people have the right to know what it is, twr iwhere it is, hw it's controlled. >> zuckerberg did say facebook will roll out six steps they can use to prevent that from happening in the future. much more on "the half time report." will you hear from one of the original founders of facebook, divya narendra peopled with the winklevoss brothers at harvard before it became this global powerhouse and his reaction to the terrible week for the social media network provider at 12:00. congress unveiling a spending bill as the threat for

a government shutdown still looms. ylan mui has more. congress reached a deal to fund the government through the end of this fiscal year. that 1$1.3 trillion spending bil came out last night. it's more than 2,000 pages long. lawmakers do not have much time to read it before money for the government runs out after midnight tomorrow. both parties are claiming wins here republicans are framing this deal as a victory for national security it boosts defense spending by $61 billion including a 2.4% pay raise for the military that's the biggest investment in the defense department in 15 years. democrats are touting a 2$2.4 billion increase in child care subsidies for low-income households as well as more money from the epa they also say they got republicans to back off of poison pills on issues like abortion and on immigration. of course there are compromises in here as well. both sides say they came out ahead on border security

the spending bill includes 1$1.6 billion for a border system. democrats point out it won't be trump's big beautiful border wall trump did tweet last night about this deal saying he fought for the military and for the wall. he blames democrats for not taking care of the so-called dreamers so the house is hoping to vote on this bill today if they can avoid procedural snafus congress may be able to get this done before the friday deadline at midnight back over to you >> thank you very much for that update. let's get reaction to this big spending bill. joining us is phil guarko from jpmorgan private bank. so, phil, as we talk about the way that the markets are going to perceive policy out of washington, can we glean anything from this proposed spending package do the markets care that much about it one way or the other?

>> i don't think the markets care that much about what is in this spending package. i think the biggest issue is pretty much more that it just gets done. it seems like trump won a bit on extra spending, not necessarily for a wall, but maybe a better fence. and the democrats gave that up he gave some concessions on enforcement. i think it's a mixed bag but overall this is positive because the down side of not getting something done was just too large. i don't think markets are taking this as a huge positive because we're down today but i think, you know, what the futures are telling us, more has to do with trade than the spending bill or with jay powell's comments yesterday, which i thought both of those were positive for the economy going forward. >> if uncertainty is one of the big factors driving market moves here, you have congress just kicking the can down the road to

september, assuming they come to a final deal you have president trump planning to unveil new tariffs today against china. how much does that factor into the decisions investors will have to make decision? >> i think that the tariffs are the wildcard that the market is focusing on. kicking the can down the road on the spending bill, that's kind of been a bit of a modus operandi what is more different about the tariffs is we've seen more tougher response from china about the latest round we'll see that today, tomorrow at the latest. but i think the response has been a little bit tougher. and i think that's partially having to do with what's making people nervous i think that's what blings tbrie uncertainty. what will be the response to the new round of tariffs which are larger than people thought they would be a couple weeks ago. >> uncertainty does bring about opportunity in many cases.

are there still places in the market now given this kind of no man's land consolidation, kind of near record highs, are there still places of value in the marketplace that you are advising clients of? >> yeah. the one thing is on the fundamentals, jay powell did a good job about being transparent about how he's going to communicate. the fed leader's john is much more of a communications job in some ways to the market than it is atheoretical economist. he did a great jb on tob on that if you look at his background, he was jesuit educated at georgetown prep and georgetown law. i think he picked up a bit from his teachers and clarity there that's from personal experience. that's a real positive going forward. why is that? because it allows us to focus more on the fundamentals and the fundamentals are quite good. it mshows markets are not that

expensive. if you look where multiples are right now, we're at a bit below 17 after today it could be below that so i don't think the market is as expensive as people generally think it is given the effect of taxes and given the effect that earnings still come in very strong in terms of volatility, where that's going to provide opportunities, i think that there's some isolated examples and emerging markets that are good with the fallout from some of the tech issues that are going on in terms of the elections, all that, i think there's a lot of tech that's very healthy especially in semiconductors and software if there's a knock-on effect on those stocks from what's going on with facebook, that could be where opportunity presents itself >> a lot of opportunities out there despite the fact we have a market that is seeming to find direction right now. thank you for joining us on "worldwide exchange.

39 minutes past the hour time for the top trending stories. when it comes to partisan disagreement congress has nothing on kosovo's parliament during a debate on a boshd ebora yesterday, an opposition leader deployed tear gas canisters to disrupt the vote >> i didn't think it could get worse than those pictures of parliaments around the world where they throw punches -- >> throwing chairs in this case nobody was seriously injured. it did not disrupt the vote. it continued later in the session and the vote passed. >> despite tear gas. an 85-year-old supreme court justice, yes, justice bader ginsberg, might be in better shape than you justice ginsberg welcomed stephen colbert to join her for her workout. the two engaged in squats and some planks. despite colbert's suggestions to the continue trar, justirary, jg

stuck to her workout music, which is opera she is a model of fitness at 85 years old. >> mental fitness. physical fitness that's incredible. >> so are his shorts, which you can't see if you're listening. >> would you try opera as a workout track? >> i would try anything. it doesn't cross moral boundaries for me it gives me a better workout, i would give it a whirl. if you think the squirrels on your local greens are annoying, be happy you don't live in australia. golfers in greensland had their putting attempts ruined bay kangaroo who is mesmerized by the flag >> it's like the flag is a speed bag for this particular kangaroo who is trying to box it. it's funny and adorable. it resonates with me because maybe i'm a golfer and everything this is getting attention. if i saw a kangaroo on a golf course, i would stop, take video

and see if he would participate. >> maybe there could be a benefit to your golf score, too. >> it could be >> mulligan? >> mulligans all around. still ahead on "worldwide exchange," the big outrage over facebook's privacy scandal today's must-reads are straight ahead. and here we are digging out. the snow is still falling in some parts of the northeast as a major spring snowstorm winds down we'll tell you about the big digout when "worldwide exchange" contueins.

welcome back to "worldwide exchange." let's get you up to speed on the market action. futures gained a bit of ground off the session lows we're slated to open down about 120 points for the dow 16 points for the s&p. 64 points down for the nasdaq overall. time for the must-reads. my pick is from the "washington post" called yes, we should be outra outranged about base fobacke. we also need to confront conflicts between the public interest and the ways that social media companies are making their profits where do privacy rights come in? are they unduly blocking transparency about how political

campaigns are conducted and who is financing them? on the bigger effect of our overall society, the scandal with cambridge analytica harvesting data from 50 million users from facebook, appearing to slap their hands insisting on deleting the data, but it didn't happen it all raises questions about how that affects the future of our nation >> it's all about opt in versus opt out. years ago grocery stores were asking you to sign up for frequent shopper cards so they could track the purchases you made >> also, for the record, i think it also weighs on us as individual consumers to be educated about what we're giving away, to be okay with it >> absolutely. my pick is from the "wall street journal. the fed gets optimistic for the fed. at least some at the central bank are conceding that tax reform and other policies will

provide at least some growth boost for a couple years the bottom line is the powell fed is continuing on the path set force by janet yellen as widely expected. he will be tested but not just yet. they talk about this idea they're optimistic that we can get the unemployment rate lower without triggering massive amounts of inflation it doesn't suggest that we are going to see any real policy mishaps, but that there will be a time down the line when jay powell will have to figure out how to react in certain situations >> 47 minutes past the hour now. 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 >> good morning. great to see both of you it is a packed show. i know we say that every day, but we really mean it today. we'll talk about all the things you guys have been talking about, the fed impacts on the markets, what's happening with the washington budget, what's happening with china tariffs we have kevin brady, the chairman of the house ways and

means committee to talk about these issues coming out of washington what it means for wall street. want to get his take on what it means to be issuing these tariffs on china, targeting them for all of the intellectual property theft we think they've been doing to our corporations over the last several years. is this the beginning of a trade war? we'll speak with him about that. and we'll talk about what's happening with facebook. now that mark zuckerberg and sheryl sandberg have come out and given that take on kind of the takedown, the tick tock on what happened around all of this we have neil ferguson, a stanford professor and author of a book that chronicles much of this it's called "the square and the tower. he will join us. and a usc professor who will be joining us they'll address this and say what needs to happen next from both mark zuckerberg and sheryl sandberg, and what facebook

needs to do to keep regulators at bay and it seems like it's been weeks since that united scandal with the dog who passed away in the overhead bin but again, we're going to be hearing some bits and pieces from oscar munoz, the ceo. phil lebeau will bring us that interview. and we have some philanthropists who will join us to talk about big ways they are trying to change the world first of all, holly branson will be joining us. she and some colleagues have written a book called "weak economy. trying to help you understand businesses and individuals, ways that you can map out what you best like to be doing to impact the world. and did you know today is world water day? >> i did not >> world water day today long-time viewers of squawk know that actor matt damon and gary white have joined us over the years to talk about the efforts they've been making to make sure

that millions of people in the developing world get access to clean water. today they'll tell us what progress they've made. how big the world problem continues to be and they'll be joined by a couple of executives, bank of america vice chairman and anheuser-busch inbev's chief marketing officer to talk about how they're teaming up with water.org to make a difference. all of that coming up. >> that's a crucial issue facing the global economy >> that's a big partnership. >> we're looking forward to that thank you. still ahead, could the fed face a tariff tantrum? we'll discuss when "worldwide exchange" returns. t thing they d t thing they d was 'are you ok?' they always thank you for your service, which is nice because as a spouse you serve too.

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>> there's no thought that changes in trade policy should have any effect on the current outlook. second thing is i would say that a number of participants reported in about their conversations with business leaders around the country and reported that trade policy has become a concern going forward for that group >> that was fed chair jay powell talking trade concerns and the economy at yesterday's fed news conference the first where he was the chairman joining us now is james leu. when we talk about this intersection of washington policy and fed action, what could possibly be the motivation for the fed to get involved where trade policy is concerned? >> good morning, contessa. the issue around trade policy is a hard one to gauge. it depends on what the

competitive reaction is from other countries. obviously if there are trade wars, the market is concerned about that and there's the worry that there could be a negative impact on the global economy we think about why the fed is raising rates, it's because the global economy is fundamentally strong the most important number that the fed released yesterday is they took the unemployment target down from 4 b% to 3.6%. so the fed sees more slack in the economy before they need to step on the gas and accelerate the pace of rate hikes because there's more slack, this is more a positive for the market than in people worried about going into the fed meeting, which is generally positive for the 12 to 18-month outlook especially for u.s. equities >> james, one thing i've heard in the market so far from participants is the idea that the fed is dealing with rate normalization regime not only trying to raise

short-term interest rates on the normal tools that they use, but also this campaign to reduce the balance sheet. is there a fear in the market that that could be too much or how wary is the fed of maybe being too aggressive on this particular front with raising short-term rates and maybe trying to reduce the balance sheet size >> that is a concern you look at history, most cycles don't die of old age, they die of some fed or policy mistake. the specific concern around the balance sheet, that's less of a concern here the fed made it clear that will play in the background when you look at the glide path of reducing the balance sheet, that's a 6 to 7-year process it is about interest rates we will probably see four rate hikes this year based on data we have today we did see an acceleration over the pace of rate hikes if the fed thinks there's more slack in the economy than they suggested in the past, then that means that we're still in this

goldilocks phase where solid fundamentals are positive for the market the fed is not stepping on the brakes fast enough to stop this market rally and we generally favor staying invested in the global stock market from here. >> we have the president talking trump tariffs on china today we have congress tackling once again this issue of a budget and trying to move forward what's the big issue you'll be watching today >> generally we would look at the trade issues over the budget issues unfortunately the markets have become numb to all the washington bu washington budget issues that have taken place over the last five years trade is only an issue if it affects the global economic outlook. right now the global economic outlook looks solid. that's why the fed is raising rates and why central banks are raising rates and why we still favor equities from here >> thanks to james liu

that does it for "worldwide exchange" today. g owawk box" is coming up. bish for them. >> have a great thursday ♪ i made my own way, now it's time to make yours. ♪ ♪ everything is working, working, just like it should ♪

good morning stocks swinging lower this morning after a similar reaction yesterday after that initial pop. we will show you the reaction to fed chair jay powell's first news conference and look at the biggest market movers. getting tough on china the white house expected to unleash a new round of tariffs today. china already threatened to retaliate. details straight ahead. and facebook's ceo, mark zuckerberg, breaking hisogizingf that data collection scandal it's thursday, march 22, 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 and mike santoli. andrew is off today. we've been watching the u.s. equity futures as the markets started to give back at the end of the day, you'll see that that trend continues this morning with lots of red arrows. dow futures down by 124 points s&p futures off by 16. the nasdaq down by 68. again, this is all on concerns that the fed sounded more hawkish yesterday. i'm not sure why that came as a surprise to the street looking at the economic forecast, it looks