♪ it's 5:00 a.m. at cnbc, here is your top five at 5 happening right now. high level trade talks getting urn way between america and china. will the markets react wall street closely watching these talks. investors gearing up for a very busy week ahead this coming off friday's monster rally still no signs of progress out of d.c the government shutdown now in its third week wow. tesla breaking ground on a new factory in shanghai. we're going to take you there live and it was a golden night for netflix and amazon at the golden globes. will it help their investors we have all the big highlights coming your way on this monday, january 7th, as "worldwide

exchange" begins right now ♪ ♪ the boys are back in town ♪ the boys are back in town ♪ i said the boys are back in town ♪ all right. good morning, good afternoon, good evening welcome from wherever in the world you may be watching i'm brian sullivan it is good to be back. by the way, happy new year i've been gone a week. here are how the markets look coming off friday's nearly 800 plus surge for stocks. it's a new look for the week futures are down about 30 points again, wildly subject to swings here in the next couple of hours ahead of it very thinly traded at this hour, but this was a big day on friday with that 750 plus point gain for the dow jones industrial average the bond market reacting on friday as well you had that jobs number everybody said listen, the jobs number was nice but came down to j. powell the fed chairman being dubbish on the ten year note you know who likes that realtors because that means that mortgage

rates are going to come down housing showing signs of weakness lately. this move down possibly good for housing, mortgage rates and borrowers. outside of all these marks let's go worldwide and japan following our big rally with a good rally of their own the nikkei 225 posting one of its biggest gains in months up 2.4% that market has been rocked in the last 12 months so a decent beginning or at least couple days to the beginning of their year as well 2.5 points, all green on the screen south korea up 1.4%. now you know how much oil matters for the markets. oil is up again this morning bitcoin back below 4,000 as well comex gold and the euro moving as well. in case you forgot, wall street coming off a megarally on friday the dow jones industrial average soaring nearly 750 points for a more than 3% gain. wow. now much of that fueled by bullish comments from the fed

chair jay powell as always, jim cramer did a breakdown of what powell's comments meant with market. >> the economy gets hot, we generally deserve more rate hikes. i ain't no negative rate hike guy. i just want to be in synch with the economy. if it gets cooler, fed holds off. you know what that's called? rationality. and i applaud rationality. i'm glad powell is invoking it something happens all too often infrequently in washington, three cheers for powell. >> three cheers for powell let's bring in chief market strategist, happy new year. >> happy new year, my friend. >> would you give jay powell three cheers you like that pullback >> i was cheering for that for quite a while. we've had discussions for that and stated it's not crazy to have a pause that reflects after a year of steady hikes and the

market getting hit pretty hard and a lot of other things out there, yeah, i'm cheering. >> it was interesting because we cheered the job gain i don't want to look backwards but we cheered the job gain on friday but doesn't that put the fed back into play that's what i didn't understand. i wasn't totally in the market i was on vacation mode but i didn't fully get the market rally on friday >> i think it was more powell than the jobs. and some of the underlying jobs numbers the wage increases a tnd fact that a lot of people were looking for work and you can see that in the unemployment number ticked up a couple of tenths, but -- >> because more people are looking for jobs which is positive in a weird way. >> it's not a weird way. it's positive. little bit of pressure on the jobs number. but it's all about powell. the fed has been the biggest risk to the economy for months now. >> you have highlighted, jeff, as well or better than anybody about the seasonality of the market, all these historical stats which is what you do best

about how we're in the midyear of a cycle the third quarter, this and that. >> santa claus. >> whatever you want to call it and it hasn't worked out yet do you think that we're maybe just lagging >> i think we did lag. i think the tax cuts pushed the usual midterm correction later in the year. we saw it come in december usually we see bottoms in october and early summer if we hadn't had a correction, that would be make the third year of the cycle, the preelection year 2019 gains little tougher in that year. i think that helps santa came through the last five days of the year, first two of the new year there were some rough days in there, but overall, the market was up a little bit. percent and change so, you know, it's starting in the positive but we're taking our time we have the first five days coming up, the whole month of january. we need to get the shutdown cleaned up thinking about the numbers that that wall they're disputing, $5.6 billion is -- >> they're calling it a barrier.

you bring up a good point -- >> such a small number compared to the federal budget. >> it's symbolic from a number perspective, about half of one day's operating revenue or expenses for the u.s. government, but it is more symbolic, i think. symbolic of the fight, the government shutdown now entering its third week at what point does it matter for the macro markets? matters for a lot of government workers, when does it matter for the market >> i think it matters. it's a black eye for the president and democrats to keep this closed down garbage is piling up at the national parks never like to hear that. big fan of the national parks. but it's taking its toll right now around needs to get fixed. and china is starting to come to the table. that's been going on for a while. we need more positive results there, more market gains >> but you remain reasonably optimistic in the short-term >> you know, we look at things

worst based and best case. if they don't get their act together, we could go down further. >> the president must know this, though, he's a stock market president. >> of course he is >> he references it constantly. >> he probably has stock trader's almanac in the white house. >> if he doesn't, you should send him one. >> there you go. >> jeff, always a pleasure. >> thank you very much. happening right now, high level trade talks under way in beijing between u.s. and chinese representatives. let's get now to nbc's janis mackey frayer with more. >> reporter: brian, both sides were optimistic heading into these talks but there are major differences that need to be resolved the american delegation is led by jeffrey garish joined by officials from the agriculture and energy departments politically important industries being targeted by chee these tariffs as well as officials from commerce treasury and the state department now, it's unlikely that they're

going to strike a deal by the first of march, which is the deadline that's been set, but the sense is that beijing's goal is to show enough progress or enough compromise to persuade president trump to extend the deadline there are already tariffs on about $250 billion worth of chinese goods than the threat of more duties to come. and there's little doubt that a trade war could have a punishing effect on the economy here there are already signs of it slowing down factory activity at its lowest point in three years as are profits at some of the big industrial firms according to official data. we're also seeing signs of a slowdown in consumer spending. so the sense is that beijing wants to come to the table to show that it's willing to compromise on some of the issues the problem, of course, is that trust runs very deep, especially since the arrest of the huawei executive last month so we're likely to see both sides saying they're having constructive talks, but it could

still be a long way off from anything concrete. brian? >> janis mackey frayer, nbc news in beijing thank you very much. let's now get analysis and insight from john ratledge, spent a lot of time in china john, great to see you on "worldwide exchange" thanks for joining us. >> good morning, brian. >> good to see you from a macro perspective, do you remain optimistic that something concrete and positive for both sides will come out of these trade talks? >> you know, maybe for the first time i kind of like what they're doing this time. they're spending the worker bees over to get to know each other and work in the weeds before the big guys get together and say anything outloud that's the right way to do trade policy it's almost the right way. the truth is these guys shouldn't have been on camera either but they're learning and maybe when we get to dabos in a few weeks we'll have

president trump and my old friend shake hands on something. i don't think there will be a material difference in the way trade works, but there may be a material difference in how the governments talk about trade and try and restrict trade. >> how would you define, john, a china win in these talks what do they want? >> well, chinese economy is definitely slowing it's slowing partly because it's big now and can't grow 6% forever. it's also slowing because manufacturers are moving out of southern china into places like vietnam and so that's continuing trade hurts it as well not the exports so much because over the last year the dollar is up and rnb is down enough to really offset most of the cost impact of the tariffs on chinese goods. but there are definitely supply chain issues supply chains here have shortened and orders have shrunk going into china

they would like to see something happen what would be a win if they can get by saying we'll buy a ton more of soy beans or steel or whatever and let more banks come in and approve the applications that are on the table from guys like jp morgan, that would be a good pr win for them because it doesn't mean they would be doing a lot different than they're already doing. they have legislation on intellectual property that's moving through their own legislature, but of course china is more of a rule of man place than a rule of law any way and it's the enforcement that really matters. so i think that you're going to see some headway made on certain of these product-related issues. >> you know, i want to focus on apple, but i want to focus, john, on how it reflects in the bigger picture because when the apple news came out, everybody focussed on china, but then i tweeted out a link to an article just nine months ago how apple had record sales in china. we went from record sales less than a year ago to this. and it made me think, how much

of this does the chinese consumers are proud people, how much of this is sort of the i don't know, the middle -- i don't know how to say it nicely, the middle finger, if you will, to apple from chinese consumers vis-a-vis the u.s. government, they're not mad at apple they're mad at the u.s. government and going to take it out on the biggest u.s. company >> well, brian, like everything, there are several reasons why apple is having issues there let's not forget that in cook's letter he not only announced they were lowering their projected revenues but they were also announcing record profits at the same time, so apple is not disappear from the face of the earth here the high end iphones have not been selling he talked about foot traffic being down in their stores some of it as i heard tonight from a friend of mine in shanghai is that apple's products haven't really singed anybody recently with any great new tricks they can do apple is very high priced competitor

you know, if our gdps are rough lid the same size and they have four times more people that means incomes are one quarter there what they are here and iphone is very expensive. >> yeah. the average income of a chinese consumer is 7,000 u.s. dollars per year across the entire spectrum, you're asking people to buy a phone or device that is effectively one seventh of their annual income. we get that. you don't think, john, there is an element you'll get canada to arrest one of our leading executives, we're going to take it out on the biggest u.s. company by not buying their product. is there any element of that at all, john? >> absolutely. i haven't seen any explicit requests to do that but i also know that that's happened before in the past, in particular around japanese products we saw. yeah, sure, buying american now is not as popular as it once was. but i think that the decline in the stock market, 25% shanghai

and 33% and thelack of product innovation in the high prices in china really just took a toll on apple's sales. but if you do the math, include their cash and their dividend, apple still selling for something like seven times cash flow so, it's still one of the greatest companies in the world. >> john rutledge, i know it's either really early or really late there outside of los angeles, we do appreciate you joining us thank you for doing that for us. >> my pleasure, brian. take care. wee are getting started here on a monday "worldwide exchange." up next, more on apple's big china problem. we'll go deeper and get an analyst take on that two big winners at the golden globes that may also be good for investors in the stock market later on, more on the ground breaking that tesla just made in china. could tesla be the answer to the trade fight? details when "worldwide

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good monday morning. it's 5:17, here in the east coast. netflix and amazon locking up some big wins at last night's golden globes. let's get the recap with a man like me who didn't watch them. frank holland with the details. >> we get up early so i missed it we have the highlights and the streaming services making a statement at the golden globes last night. netflix and amazon bringing home six awards combined however the

major broadcast networks were shutout in the tv category chuck lori won for best comedy or musical series for the netflix show the kaminsky method he gave a lot of praise to the streaming giant. >> netflix, netflix, netflix netflix, netflix, netflix. >> did he mention netflix? the streaming giant winning two golden globes in the film category for roma and three in tv amazon taking home an award for the best actress in the comedy for the "marvelous mrs. maisel." they won for bohemian rhapsody that film received some mixed reviews but topped 600 million at the global box office and they won four awards total, three for green book and another for first man. comic book movies including

black panther only one winner last night the animated spider man into the spider verse i heard really good things about that that was produced by columbia and marvel studios a lot of success on those streaming sites. >> now we want to see some of these shows. we'll see you in trending in a few minutes. speaking of amazon, we have a big upgrade, pivotal research initiativing coverage buy rating $1920 target brian weeser, the analyst, he has changed firms. brian initiating coverage, despite amazon's large size it has room to grow we'll get more on this initiation from pivotal research on amazon i'm sure throughout the day here on cnbc. staying on the topic of media and technology, we're watching shares of apple today the stocks still down about 6% over the last week the well off its lows companying after the company disappointed

investors be its revenue forecast last week joining us now is ceo of abr investment strategy. brad, i don't know -- thank you for joining us i don't know if you had a chance to listen in on our conversation a few minutes ago with john rutledge about apple and about china. we were wondering if you think there's a pushback by consumers in china not because the slowing economy but because they're punishing the united states and want to do that through our largest company. do you think there's anything to that >> i wholeheartedly agree with that i do think there's some type of boycott happening in china among or about u.s. products i think apple certainly at a disadvantage here. i think there's -- given the u.s. trade war with china, there's certainly this animosity, this bad taste in the mouth. i think there's a tremendous amount of propaganda also coming from the chinese economy to not buy u.s. products. so, i absolutely agree with that comment. i think that is certainly part

of the reason for the miss and i don't think this really subsides any time here in the near term. >> even if we get a deal on paper, everybody shakes hands, there's a photo opportunity, is that going to change things for apple? >> brian, such a good question but first realistically do you think something is actually going to happen? personally we don't. we don't think something is going to happen here in the near term so if you have the belief that something will happen, maybe you get some short-term relief from a stock perspective for apple but for the economy, chinese consumers right now do not want to buy u.s. products because of all this bad hype coming from the chinese economy and chinese government i don't see that changing any time soon. unfortunately i think apple is really disadvantaged here from that perspective if i look at 2019, people were disappointed this year with iphones. looking at next year, there's really no exciting new specks that are coming from the iphone in 2019.

so, there's an under whelming 2019 three version launch. i'm really hard pressed to see anything exciting for 2019 iphones. >> you know, we just talked about the initiation from pivotal research on amazon, $1920 price target there from brian weezer, about 23% upside to the current price i know you're bullish on amazon. i assume you agree with that call, brad. >> yeah. if you look at the long-term growth within technology on a global basis, amazon is dominating if you look at their different business lines, you have marketplace, aws, multiple businesses that they're absolutely crushing it so i actually think in 24 to 48 month time frame the stock is significantly higher than that any weakness there is a buying opportunity. some point in the future, maybe, three, four, five years out you see the company getting broken out because of how big it will get. >> wow, amazon could get possibly broken up there early 2019 prediction from

bradley gastwirth. thank you. still ahead, the shutdown showdown no deal in sight the government shutdown now entering its third week. we take you live to d.c. next. have you ever worked with dr. francis? oh yeah, he's ok. just ok? guess who just got reinstated! well, not officially. nervous? yeah. yeah me too. don't worry about it, we'll figure it out. i'll see ya in there! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network,

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democrats in congress digging in their heels that the government shutdown now enters its third week nbc's tracie potts joining us now with more from d.c. where at least somebody is working. >> somebody is working, but a lot of people aren't, brian, that is the concern here over the weekend, vice president pence led those negotiations they are expected to continue today but we're getting two very different pictures of what's happening over at the white house behind closed doors. >> reporter: parts of the federal government remain closed this morning >> when will the federal workers get paycheck on january 11th >> we'll see what happens. we'll see whether or not it's settled. >> reporter: president trump is predicting progress by wednesday, after weekend negotiations brought no breakthrough. >> we need to open up government and then negotiate not the other way around >> reporter: the president and democrats are at odds over whether americans should pay for a wall at the mexico border. >> we were trying to do our best to get the government open before it became a serious issue. >> reporter: democrats are now

pressing the administration to justify the 5.6 billion the president is asking for as he threatens to declare a national emergency to pay for the wall. the white house insists he is compromising, agreeing to steel instead of concrete. >> a concrete barrier is not going to automatically stop people from coming. >> we need to look at more border patrol agents, technology and other means as well. >> reporter: democrats say they're hearing no compromise on the cost. >> in a pound the table way unless i get it my way, i'm going to hurt all these people that is not the way to go. >> reporter: if this shutdown continues, the irs may be forced to delay tax refunds >> think about the hundreds of thousands of people who will be entitled to income tax refund checks who won't receive them. >> reporter: moving this debate from national parks to the wallets of millions of americans. now if the president declares a national emergency that could shift this whole thing from the white house to the courts, it will likely spark some sort of

legal challenge, brian. >> tracie potts, thank you we appreciate you being there for us on this monday morning. thank you. we'll hear more about all of this coming up later on this morning, commerce secretary wilbur ross sitting down with the squawk box team at 8:00 a.m. more behind the big market shift right here on "worldwide exchange," the one factor that could be at play for these wild market swings and whether they will continue. later on, apple, throwing a little shade at amazon and google in las vegas. we'll show you what they did that is a big mbsyol literally and figuratively stick around ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity.

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happening right now, high level trade talks between beijing and china or the u.s. in china. we'll have the early developments straight ahead. betting big on china tesla breaking ground on its first factory outside of the united states. we'll take you there life. i guess you got to call in the mascot of the year, the priceless reaction following that unbearable loss in chicago last night it is monday, january 7th, "worldwide exchange" rolls on on cnbc ♪ hit me with your best shot ♪ why don't you hit me with you best shot ♪ yeah, the kick heard around the world or as cris collinsworth called it the double doink welcome back and thanks for being with us on cnbc. i'm brian sullivan hope you're having a single doink on this monday frank holland is back with

everything you need to know in 60 seconds and as an eagles fan, congratulations, frank. >> thank you, sir. a fresh round of trade talks between the u.s. and china kicking off today. working team led by deputy u.s. trade representative jeffrey gerish will meet with chinese officials. we'll bring you any developments as soon as we get them some hedge fund news, bridge water pure alpha fund defying the market with 15% gain for 2018 now, this comes as many other big name investors saw losses amid the major market volatility and the happiest place on earth, just got a bit more expensive. disneyland hiking the prices of its cheapest tickets to over $100 now this change comes ahead of the opening of its star wars themed expansion now a one day, onepark ticket is $104 and that's for low demand days brian, back over to you. >> frank holland, thank you very much. let's get a check on this

morning's other top headlines outside of the world of money and business phillip mena in new york. >> good morning. evacuations have been ordered for everyone within a three-mile radius of georgia. emergency management officials confirmed that a train carrying hydrogen peroxyside have derailed and reports of chemical odors and a cloud in that area hazmat units have been sent to investigate. kevin spacey will appear in a nantucket courtroom for arraignment this morning the house of cards actor is facing charges for indecent assault and battery. he is accused of sexually assaulting an 18 in 2016 at a nantucket restaurant last week a judge denied the actor's request to be excused from his arraignment today. winter is coming "game of thrones" fans were left on the edge of their seats when they released a sneaky first look of the season during the golden globes. within a montage promo, the short five-second clip of never

before seen footage shows arriving in winter fell. season 8 will premiere this april. >> i didn't know if that was new. i'm glad you said that i caught that part near the beginning of the golden globes i had to go to bed obviously, probably same to you i thought, did i miss that because it's been so long since it's been on. >> just like that. >> there you go. phillip, thank you very much. >> you got it, buddy. >> the show started in 1978. hopefully it will be over soon. here is how your money and investments look as we're half way through the 5:00 a.m not a follow through on this monday we're down about ten points in the future, take it or leave it. now, it is a big week ahead for your money a lot of market-moving events taking place it is conference season after all. here you go. today, the jp morgan health care conference kicks off in san francisco. jim cramer is there. lot of attention on that given concern over slowing economy

tomorrow, ces begins in las vegas along with the goldman sachs energy conference and the jolts survey, a big jobs one, also tomorrow. on wednesday, you get the fed minutes. thursday the fed really in focus a big speech by j. powell in washington, d.c. the minutes of the ecb meeting and on friday, the inflation story with the consumer price index number the december cpi, that, my friends, is a big week ahead let's talk about all of this and the markets on your monday with chad portfolio manager at washington crossing advisers chad, good monday morning. >> good morning. >> which of those, take your pick, door number one, door number two, do you think will be the most important for you and your team this week? >> it's all about monetary policy not only here thursday. >> powell as well as the ecb we believe that powell now is going on to the third unspoken mandate which is do no harm within the financial system. and financial stress is a meaningful drag on economic

activity. >> do you think j. powell has sort of gotten the message not from the president but from the markets? >> all he has to do is watch the markets. when you look at the forward looking expectations going out a year it looks like the market is pricing in decrease of interest rates. >> now, i know that you've been a little more concerned about the economy than some. >> absolutely. >> and you've been right but you also believe that we still could have positive stock market returns this year. >> yeah. >> square those two. >> the best way to go about investing as a long-term investors to look at long-term forecasts of returns and we think over the next three to five years you can get a positive return on the s&p roughly about 5 or 6% above the rate of inflation. now, for this year, we think there is going to continue to be an economic drag here in the united states as well as global growth drag, but you could also have positive return you see the federal reserve is going to perhaps pivot as you saw last trading session as well as you could also perhaps get just a moderation of economic

activity here, which, of course, could support the market. >> 5 to 6% possible returns. does that include dividends? >> that does include dividends. >> that's not a whole lot of real gain. roughly 3% from the dividend yield, you're looking at maybe couple percent actual return. >> i've been explaining to people you have to be more moderate with your investment ideas here you have to be much more cautious you have to move up your quality spectrum and have to expect that you're going to have a lot more volatility within this system over the course of the next three weeks. >> i don't mean this as an insult, a lot of people were looking very smart the last seven or eight years, you can throw a dart, buy an etf, make money and feel good about yourself which is nice. there's nothing wrong with that. but do you have to go back to picking stocks now >> i think that you should at least look to be more conservative you can get a layer of good companies that seems of opportunities where you can make tremendous opportunities look at the consumer staple

side, look at health care, for example. to go back on why it was so easy to make money, when the fed had rates well below the rate of inflation for a decade, free money, multiples expand and whatnot. as you're expanding the balance sheet, it's pure -- >> we had low rates and expanded balance sheet. >> injection of adrenaline into the system. >> low rates, expanding balance sheet now we have higher rates and contracting. everything we had good for eight years is now reversed. >> it dampens the market multiple within the market. >> how much is the question? >> by how much market, forward looking 14, 15 multiple you could see 13 or 12 p.e. multiples. as you see global growth decelerate, you have to be more cautious what we did over the course of the last couple trading sessions i should say couple of weeks we extended our duration within our bond portfolio we started buying 20 or 30 year

type. >> you're the one. >> we're doing this and becoming much more cautious within our investment outlook. >> i haven't heard anybody recommend a 30-year bond on our network in a long time chad morganlander, a sign of the times. now get you three top individual stock stories today report lid buying nearly 2% stake in dollar tree and asking the company to sell its family dollar business, which of course it just bought a couple of years ago. "the wall street journal" says starboard is seeking majority control of dollar tree board and pushing for them to tweak their pricing model. pg&e weighing whether to file for bankruptcy against potential liabilities resulting from those devastating california wild fires. utilities considering the sale of its natural gas business. pg&e shares are down nearly 60% since the campfire broke out in northern california in november. meantime, maybe some good

news for ge investors. apollo global reportedly in talks for ge's aircraft leasing unit people familiar with the deal say it could be as much as $40 billion and right now ge shares of course much, much hit over the last 12 months, up about 3% in the premarket on this monday morning. in other corporate news today, another high level departure at cbs to tell you about. david rhodes stepping down he's been the head of cbs news since 2011 his contract is nearing its end. long-time producer susan will replace david rhodes will be the first woman to lead cbs's news division in sports world, it was wild card weekend for the nfl the baltimore ravens hosting the much-loved los angeles/san diego chargers baltimore trailed the entire game after pretty lousy fourth quarter. 30 seconds left in the game. the ravens had one last shot to win, but the ball was stripped from baltimore quarterback lamar

jackson. the chargers went on to win. they will face the new england patriots next week and if there's any football gods out there, i, as a long-time, long suffering chargers fan, will be make ming my way to foxborough anybody have a ticket for me thanks came down to the wire in chicago between the bears and the much-loved philadelphia eagles frank holland the bears trailing the eagles with one second left in the game cody parkey comes out and attempts a 43 yard field goal. he made the first kick but time-out was called right before that >> ice the kicker. >> he kicks it again, the double doink hits the up right, the bottom up right he misses. the eagles went on to win. they will face the rams also in los angeles next week. now let's bring in frank holland because that chicago loss is trending for a different reason than just the missed kick. >> by the way, i think the eagles are much more loved

than the chargers. >> the chargers have not had a big playoff run in -- >> yeah, keep looking. >> 30 years. >> vcr tape material let's play the last clip again check out the bears mascot as parkey's field goal hits the post he completely collapses in grief and the internet is going wild over the mascot's reaction i think it's appropriate because the mascot is supposed to be the spirit animal of the fans and that's how the fans were feeling. >> listen, we got a lot of philadelphia eagles fans here, obviously cramer out of his mind in san francisco you're a big fan. >> huge. >> i like the eagles as well i've been to some of the games, but that was a gut punch for chicago. >> yeah. >> you see the coach's face. >> i saw but you saw the reaction by nick foles. for international viewers, nick foles is the cinderella man. >> all he does is win. >> he's the backup but all he does is win. >> who just won the super bowl >> last year, not just won the

super bowl, frank. new winner coming this year. may be the eagles again. >> it just happened last year. we're going to move on we're not going to argue about this. the fun got started even before the show at the golden globes brand ambassador stealing the red carpet spotlight you can see her photo bombing multiple celebrities as they pose for the cameras just trying to get in on the action i don't blame her. why not? yeah >> listen, she deserves a giant raise because fiji water if that's her job to get promotion for fiji water, she went above and beyond she's in every picture. >> will it make you drink more fiji water >> is that the water of choice for cnbc i don't know. >> i don't know. that's a good question. >> i like mulland spring seinfeld reference. christian bail took home golden globe for best actor for the movie vice he portrayed dick cheney and his speech had

everybody buzzing. take a listen. >> thank you to satan for giving me inspiration on how to play this role. >> wow and amy poehler are getting a lot of oscar buzz. they stole the show by presenting awards at last night's golden globes. now there's a big push to have the pair host next month's oscars kevin hart is on the fence >> they did a great job. >> they're funny in general. >> maya rudolph is in a little movie called way, way back, and if you haven't seen it, it's about a kid in summer and he's tough -- he works at a water park it's a great little movie called the way way back check it out it's a feel-good movie. >> i appreciate the indy movie review this is more mainstream, apple throwing shade at rivals ahead of this year's consumer electronics show the tech giant put up a 13 story advertisement that reads what happens on your iphone stays on

your iphone. the ad seemingly aimed at google and amazon both face just a few privacy issues if that was online, we call that a sub tweet. >> but this is real, in real life not the online life frank holland, good luck to the eagles. still ahead, we have a housing check on deck what you can expect from the real estate market in the new year first, betting big on china. that's what tesla is doing we're in shanghai with this story. >> reporter: thanks so much, brian. well, elon musk, tesla's founder, came to town in order to attend a ground breaking ceremony for the company's first factory outside of the united states more on tea'mo ichsls ven ina after the break.

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the lexus nx, experience the crossover in its most visionary form. experience amazing at your lexus dealer. tesla breaking ground on its first factory outside of the united states in shanghai, china. >> reporter: thanks so much, brian. elon musk described the new factory as just another example of tesla's commitment to the china market the tesla founder was here in town and went to the site which is about a two hour drive from shanghai in order to attend the ground breaking ceremony there he said that the plant is going to be their most advanced one. in tweets before the event, musk said the company aimed to finish construction this summer and start model 3 production by the end of the year and reach high volume production next year. he also added that the production would focus on the

model 3 and the y serving the greatest china region. and that this factory would produce affordable versions of the models for greater china while the rest and higher cost versions would be produced in the u.s. for the worldwide market now, he also had said that the company plans to eventually produce approximately 3,000 model 3 vehicles per week here and ramp up to 500,000 vehicles per year the announcement comes at a very uncertain time between the u.s. and china because trade tensions are high still, musk had said this is going to be a good move for the company because it helps to reduce some of that risk, some of the costs involved with transportation and also with the tariffs. brian? >> very cool story and look forward to seeing more on it cnbc today still ahead, we're talking real estate realities. what you need to watch for in a market you care about this year. and red hot stocks the big names making the biggest moves so far

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we have a huge day on tap here on cnbc jim cramer sitting down with the owners of bristol-myers and celgene. the debut of "the exchange." everyday kelly will take a deep dive into the stories moving the market, the economy and more 2:00 p.m., kelly will join us for "power lunch." if that's not enough, 3:00 p.m. eastern, secretary of state michael pompeo jam-packed lineup. keep it here all day long on cnbc just take the remote, throw it away do you still have a remote let's talk housing, what's in store for the real estate

market in the new year tim rude chairman of the kolingwood group we appreciate it >> thanks. >> bottom line, first off a lot going on between the democrats talk about flipping it backwards, the new chairman of the fanny and freddy what's the most important thing for housing right now? >> wow housing is local, so it's kind of hard to pinpoint it that way. obviously interest rates and appreciation have been the biggest factor in the housing market, the softness i think it's a break it needed to take a break. you can't go up 7% a year in perpetuity without having a big nasty ending the big deal going on right now, the big opportunity, christmas come early for fannie mae and freddie mac investors. >> why do you say that the overseer for fannie and freddie is republican and wants to get them out of conservativeship where they have spent a decade. >> the investors of fannie mae

and freddie mac have been under the boot of obama administration by their appointees or under the administration as a result, that stock is down to $1 each really the main reason behind that is because through conservatorship that for whatever reason they have ignored basically all the domestic and international standards around bankruptcies and conservatorship and gutted these companies. as a result, the stocks have faltered the opportunity right now is that the trump administration has indicated, says look, we have to get these guys out of conservatorship. there has to be a path to build capital and get them out. >> connect the dots. they're so massively important for housing market people in des moines, iowa, dallas, denver, wherever you are don't realize maybe how important fannie and freddi mean for them to get a mortgage how does this change matter, if at all, for just the average sort of american to be able to get a mortage.

>> it's huge think about it, fannie mae and freddie mac right now the government entirely when you consider the other government insurance programs right now are about 95% of the mortgage market you talk about people who want to do sack fannie mae and freddie mac for principled reasons, it's one of the reasons you say absolutely when you think about it, that will raise the cost of financing by about a percent to a percent and a half we had a 50 point increase the last year and the whole market has gone apoplectic. that acts like a 10% tax fannie mae and freddie mac are subsidizing the housing market in the absence of them, then you're entrusting wall street private capital to come in and save the day and there aren't in good examples of that. >> this should help housing? >> the conservatorship has been a goat rally the last ten years. they perverted every law using the gse as instruments of public policy instead of doing what

they were supposed to be doing as a result, you're seeing that credit has tightened and as a result of that then there's fewer people able to buy a house. >> like everything else, they became politicized tim rood, it's a pleasure. thanks for seeing yo happy new year. first full week of trading stocks rbi is going trend spotting. seven stocks in the s&p 500 up more than 10%. one is up because it got bought. we'll toss that out as a special situation. six major stocks posted double digit returns this year. dish net, incyte and noble energy the first week represents how the whole year will go, bio tech, aluminum oil and video platforms will be hot in 2019. oh, and argentina is the single best performing stock market this year so certainly don't cry for them either way, a trendless but interesting start to the year. there's your monday rbi.

thanks for watching. "worldwide exchange" will be back tomorrow. "squawk box" with a big lineup as always begins right after this have a great day

good morning big moves in stocks overseas as well as crude prices this morning after friday's 700 point rally for the dow. we'll talk about the fed comments that sparked the rally in addition to that great jobs number happening now, high level trade talks getting under way between the u.s. and china we'll take you live to beijing and speaking of china, tesla breaking ground on its first factory outside the united states we'll show you that ground breaking in shanghai it's monday, january 7th, 2019 "squawk box"" begins right now

♪ live from new york y business never sleeps, this is "squawk box"". good morning, everybody, welcome to "squawk box"" here on cnbc we are live from the the nasdaq market site in times square. let's take a look at the u.s. equity futures at this hour. as joe mentioned, big moves on friday first we were up in the morning bouncing back from some of the declines we had seen earlier in the week, but then it was really powell that moved the markets. jobs report we didn't move much. it was very strong jobs report, but as we said at the time, we didn't know that the market would think about a strong number it was really powells comments softening things and pulling things back a little bit saying we are not on auto pilot necessarily when it comes to the balance sheet. >> she was afraid to steal his thunder, but i remember at one point i said we're up about 300. a jobs report like this without the fe