it is 5:00 a.m. here at cnbc is 1:00 a.m. here your top five at 5:00 sounding the alarm while global growth we are going to hear from the imf's managing director christine lagarde straight ahead. beijing blasting the u.s. on reports that washington will formally now seek extradition of huawei ceo we are live in china with the fall-out europe slapping google with a major fine over data privacy former nissan chairman carlos ghosn denied bail again in japan, and one of europe's biggest banks tumbling this morning after missing expectations we will run you through all the numbers on this tuesday, january 22nd, as worldwide exchange

begins right now ♪ dow futures down 122 nasdaq and s&p futures also indicating the market likely to slide at the open trade concerns the shutdown all still out there. around the world in asia kind of a similar story. china is really where the news is today along with davos, and we are seeing declines in the chinese market yet again shanghai down more than %. japan off about one-half a percent. the early trade in europe. remember, they were open yesterday. we were here for the mlk day holiday. we are seeing declines across the board. we have got a lot of great interviews coming up for the world economic forum in daf

yoes the first one kicking off in just minutes we begin today in china. there are two big developing stories. number one, tensions are mounting between beijing and washington it follows reports that the united states will seek extradition of huawei cfo. second, china reporting its slowest economic growth in nearly 30 years. live to break down both of these bi eunice, let us begin with the huawei battle. >> the canadian newspaper reporting that the u.s. plans to advance a formal request for the extradition of the huawei ceo. the paper was quoting the canadian ambassador to the united states as saying that he was informed of the plan and that he had complained to the trump administration that canadians were "paying the price. since he was detained in

vancouv vancouver four of the americans on fraud charges thereby two canadian nationals being held in beijing. also a third was sentenced to death for drug trafficking, and beijing hasn't linked these detentions, but at the same time just this week there was a group of diplomats who filed an open letter to president xi jing ping calling for their release. the chinese got has responded angrily today accusing the canada and u.s. of abusing their extradition agreement, and when asked if china would retaliate against the united states if among was extradited, the ministry said that it would respond based on the u.s.'s next action there's a lot of concern now that this could actually pressure the trade talks, and it's obviously very sensitive as well, because as we were talking, brian, cnbc was just censored >> just now? >> just now, yeah. we're blacked out now.

>> so cnbc just went off air in china because aus ensibleably bah of what you were reporting. >> china is sensitive about a lot of different issues, and so we did go black when i was talking about the tensions right now between canada and china, and the discussion about these detentions the u.s. now has to make a formal filing by january 30th, and that is the exact date when the trade talks are supposed to begin in washington between the u.s. side as well as vice premier.

>> figure came in at 6.6% growth, and what was interesting was that the momentum was slowing towards the end of the year with -- for q4, it dropped to 6.4%, and then the investment missed it was up 5.9%, and so the 6% that analysts had been looking for, the real estate component was interesting because that also slowed down property was a huge driver for the economy and an indicator of future construction activity.

>> i hope you'll be back on the air soon, eunice thank you very much. let's get your market day. market week. market month market year. whatever setup now joining us is james lou. founder of clearnomics good to see you here on this balmy morning in the northeast with western you remain optimistic day 32 of the shutdown you have seen the trade fight. the china slowdown here. is there anything at all -- is there any crack in your optimistic armor to to speak right now? >> there are certainly risks there are short-term and long-term issues >> what is the biggest risk? there's so much out there. if you had to say, james, one thing that you worry about the most, what is it >> yeah. all the issues you mentioned, trade with china and just the pace of chinese growth

those real issues out there. the government shutdown we think that will eventually go away that should limited impact on the markets unless, you know, of course, there's something that occurs, like, in 2011 with some sort of debt downgrade on the trade side of the issue, the question is just how fast is china growing? we know they've been slowing down for at least eight or nine years. we've been talking about things like hard landing, soft landing. we still think they could have a soft landing the government still has a lot of tools at its dispose l a. we don't think there's going to be as big a shock as some people may play out in that market. >> the most amazing thing about the china story is, yes, the slowest growth in 30 years we look at it and go, wow, that's a bad headline. at the same point, 6% growth should be the envy of most of the rest of the world. >> what always comes up with these numbers, too, is are these numbers, know, massaged at all do the underlying economic numbers say -- >> if you look at all the numbers together, you see that china has been slowing down for

quite some time. this is not really a surprise. the question is, you know, is there going to be a big growth shock or is it just going to be a slow taper right now we still think it's going to be a slow taper if that is the case, then international markets still have time to adjust to this corporations, especially here in the u.s. that work with chinese companies, you know, trade deal aside, can still adjust to that slowing dynamic. >> what about here how much is the slowdown making you concerned if at all? >> so i think in general the question is what is earnings going to look like for u.s. corporations given potentially a slower growth rate in china over the next several years potentially, you know, slower growth here in the u.s. as well. especially after a blockbuster 2018 both for earnings growth and for gdp. the reality is, you know, we should still see for the s&p 50000 about $170 in earnings or in that neighborhood that represents about five or six, maybe even 7% earnings growth >> mid to high single digits >> absolutely. >> down from 20% plus. >> yes down from an incredibly

blockbuster number that basically is unsustainable >> in part because, why, a lot of that was goosed by the tax cuts, correct? >> it was goosed, and it was a bounce back from the earnings recession that we had just a couple of years before that. you saw earnings rise tremendously, and they are going to slow down we are in the middle of this earnings cycle. >> kate rogers has more. >> hey there, brian. france has fined google $57 million for violating the european union's new on-line

privacy rules. it's the largest penalty of this kind against a u.s. tech company. france's data protection watchdog says google lacks transparency and isn't clear in how it tells users about handling their personal data now, the regulator also says google failed to properly get users' consent for targeted ads. the e.u.'s general data protection regulation or gdpr went into effect last may. it gives regulators the power to impose fines of up to 4% of global revenue for violations. the french authority is known for its strict interpretation of privacy rules and has favored a tough approach from u.s. intent companies. in a statement google says they expect high standards of transparency and control from us we're deeply committed to meeting those expectations and the consent requirements of the gdpr google says it's studying the decision, brian, to determine the next steps back over to you >> all right, kate rogers. good morning, kate see you in a bit thank you. >> thank you today's one big stock you must watch is ubs. the swiss bank reporting a jump

in full year profit, but here's the problem. it's still missing analyst estimates. ubs blaming a slowdown and its wealth management unit shares of ubs are down nearly 4% right now to 12.90 per share also new on this tuesday morning, a japanese court denying bail for former nissan chairman carlos ghosn. he has been in prison since november, and he did offer up several concession for his release on bail, including offering to wear a monitoring ankle bracelet a judge in tokyo denied that appeal the court's decision means that ghosn will likely remain in jail until at least early march we are just getting started on a big worldwide exchange morning. up next, sounding the alarm. the if out with a big warning over global growth, and you are going to hear from imf managing director christina la barred straight ahead later on, sales force ceo marcq beniof coming up from davos as we kick off a big week of

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over global growth let's get right now to sarah eisen live in davos at the world economic forum with a special des. sarah. >> good morning, brian, from davos, switzerlanswitzerland. kicking off what will be an eventful week, i'm pleased to welcome the managing director of the imf, christine lagarde thank you for being with us. >> pleasure. >> you kicked off the week with a warning to global growth in a downgrade to your forecast 3.7 goes to 3.5% growth this year what changed in the world? >> if you look at six months ago, there were threats and concerns, but they were not off a magnitude that we have now we look now at tariff increases that have taken place and that are beginning to have an impact. however small. we are looking at threats.

we are looking at an attempt to resolve itwe believe from the advanced economies, particularly, it will have an impact now, we revisited downward from 3.7% to 3.5 berz it's not a major revision, let's face it. >> still growth. >> we still have growth. it's a little bit more modest than it was. it's not on par with last year where we were at 3.7, and i that i policymakers really have to focus on how do they fix that and how do they resolve the issues that we have out there? >> there are so many unresolved issues from the government shutdown to these tariffs and whether they'll go up in march

do you feel like you have good visibility into 2019 when it comes to the risks >> we are a bit uncertain about the pace at which either risks will materialize or issues will be resolved. that's quite uncertain take just brexit, for example. will it be resolved before march 29th one way or the other clearly one way would be better than the other or will we defer it into time. will there be an extension of the negotiation period, which would prolong uncertainty? that's one if you look at the trade situation, which has improved in many corners you know, the fact that the new nafta agreement, as i call it, has been resolved. the fact that tpp 11 has been ratified by seven members and is actually in place and opening up to others, those are positive signs, but you still have the sort of -- the big elephant in the room with the u.s. and china still trying to come to terms

with the substantive issues of intellectual property, state-owned enterprises, subsidies, and the quantitative issues of how is the balance of trade between the two countries, you know, settled in a satisfactory way that is taking time. both -- on both accounts it's not an easy thing to resolve again, we don't know whether there will be resolution soon, which would be very helpful, or whether it's going to be a protracted process by which difficulties are addressed one after the other, and hopefully addressed altogether that doesn't impact on the way in which some very large economies are great. you look at china. we have not revisited the growth forecast for china it's still at 6.2. we believe that the chinese sthorts for the moment are taking the right policy measures in terms of credit tightening on the one hand and in terms of appropriate stimulus on the other one. clearly, any worsening in termsz

of trade threats would reduce confidence, would have an impact on that growth, which is clearly one of the two key economies in the world at the moment. >> it's all hurting europe that's another big part of what's changed the outlook there has worsened >> that's true we have revisited germany growth forecast by .6%, which is quite a big number now, it's also, you know, some very local and sort of andoginous reasons how does the -- how does it cope with various scandal that is have taken -- that have hit the -- that sector how will they adjust to the new regulations? how will the electrically powered vehicles -- will that sort of precipitate a major change all those issues apply same thing with the drought in germany, which has reduced the volume of trade within the country. there are some, you know,

andoginous factors that will go away, but still, europe is lower in terms of our forecast, and there are uncertainties on the horizon. the european elections, i think, will give us in may a clearer picture of where the political forces stand >> so brexit is one of the biggest swing factors for europe and for the entire world >> it's a big uncertainty. it's a big uncertainty within europe, and certainly for the u.k. economy itself, but it's also an uncertainty because of the role played by london as a financial center and how will that be sort of either rebalanced or kept as it will be the ekwifl enss granted. what will stay in london what will eventually go? >> is there any way to quantify what a no deal brexit would look like for the global economy? >> oh, you have plenty of quantity ficks they're bound in terms of the site of the u.k. economy is and what impact it would have on gdp. it's obviously the worst case scenario, and anything short of

that would be better, but would also hurt the u.k. economy it will, you know, add frictions, will add difficulties, will make transactions, let smooth and transportation less convenient >> are you in the camp that favors a second referendum >> i don't have to be in any campaign in my position, which is my luck >> no politics there i tried. christine lagarde, we're going to continue the conversation and talk a little bit about the u.s. growth picture with the current government shutdown. brian, i'll send it back to you, and we will have more for you on "squawk on the street" with managing director of the imf >> all right thank you very much. up next, with so much going on, do not forget about the shutdown showdown. it is now day 32 of the government closure more on whether we are getting any closer to any kind of a deal to reopen it, coming up. then, a breakfast alert. starbucks making a big push to change how you get your morning coffee wel pln on worldwide exchange

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the morning's other top headlines outside of the world of money and business. nbc's phillip mena is in new york now with those for you. phillip. >> hey, brian. good morning troubling new discovery out of north korea. as president trump prepares for his second meeting with kim jong un set to take place next month, researchers claim in a new report that yet another secret missile base has been uncovered. new satellite images show entrances to bunkers, shelters, and headquarters buildings researchers say north korea keeps around 20 bases secret some relief for if you arelowed federal workers jon bon jovi's restaurant is offering free meals to impacted government employees and their families wednesday from noon to 2:00 p.m new york city's metropolitan opera house is also offering a pair of free tickets to people with government id frz saturday through the end of the month federal employees can go to the barclay's center in brooklyn where a food bank for new york city is hosting a pop-up site from noon until 3:00 p.m. today.

and finally, this morning a girl who stole the show at this year's golden globes by photo bombing celebrities on the red carpet is headed to hollywood. kelly cupford, now known as the fiji water girl has landed a gig on the soap opera "the bold and the beautiful. how about that, brian? >> it worked out >> it did. >> what are the odds what are the odds? we're going to see a few more photo bombers in the future at these type of events i'm just throwing it out there, phillip. >> if it worked for her, it can work for anybody some well-placed -- she was very well-placed, and she was noticed, and off goes her career >> worldwide exchange brought to you by yeti. thank you very much. appreciate it, brother take care. up next, china posting its slowest growth in nearly 30 years. is this really the biggest risk to your money right now? insight and advice for you ahead. before that, we go back to davos and sit down with one of the world's most influential and outspoken ceos salesforce's marcq benioff rlidan tlyexchgeru wodwe, and we're back after this

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dow futures down triple digits it may be the reason china's economy is growing at its slowest pace in nearly 30 years. will the stimulus plans really work and on the record. one of silicon valley's most outspoken ceos, mark benioff will join us as we head back to davos as worldwide exchange rolls on right now

♪ welcome back thank you for being with us here on cnbc. i'm brian sullivan appreciate you joining us. let's kick off the second half of the hour, as always, with the economicti economictive recap kate rogers is here with that. >> here's what's leading cnbc.com right now pressure is mounting between beijing and washington following reports the u.s. is seeking extradition of huawei's cfo. she's currently being held in canada the u.s. and chand, china says is abusing their extradition policy the beijing is calling for her release. a japanese court denying bail for former nissan chairman carlos ghosn he has been in prison since november concessions for his release. the court's decision to deny him will mean that ghosn will leelk remain in jail until early

march. starbucks is expanding its delivery services. the coffee jiebt's expansion starts today in san francisco and then rolls out to stores in boston, chicago, los angeles, new york, and washington d.c starbucks also plans to test out the service, brian, in london. back over to you >> kate, we'll see you in a bit. thank you very much. as we noted, dow futures are down triple digital it's on this first u.s. trading day of the week now, keep in mind, the dow has had a good run to start the year up nearly 6% in january. if you believe the january effect where the first week of january goes the month, and, therefore, goes the year if january is up, the rest of the year is up the majority of the times things are still looking pretty good, but right now we are down triple digits the asian markets, as we noted, chinese economy growing at its slowest pace in more than 30 years. a lot of concern about a trade war impact there asia down across the board with the domestic chinese market. hit the hardest overnight. down 1.2%. the european markets perhaps on that warning we just heard from the imf about slowing global growth down right now across the board,

again. off about .4% to .5% the price of oil coming down more than 1% remember, on friday we got the weekly oil rig count, the number of new drilling rigs that are being put in the ground in texas and around the country that number dropped by 25. we have been covering that number every week now for about four years i can't remember a day where we saw a bigger drop in that 25 rigs perhaps the drop in oil that we've seen from its highs of last year is finally trickling through. by the way, even if you don't care about the price of oil, maybe you drive two teslas who knows? you might care about the job market if oil growth and production growth slows, we could see a hit to jobs in what is an important state of texas in the treasury market as well, let's get a check on where bonds are trading. we are seeing the benchmark ten-year that's the number to watch at 2.75%. bonds aren't really moving along with the u.s. equity futures

this morning right now there's your view. the dow opening down 127 points right now. let's find out what else you're going to be talking about today. it's amazing how fast kate rogers can go from over there to over here. how -- is there two of you is this, like, the movie -- what's that movie? i don't want to ruin it. the prestige with the twist ending it was twins >> you just ruined it. >> it's a 20-year-old movie. i think the statute of limitations is up. kate, what's trending this morning? >> good morning, again >> hi. >> m. knight shamalin movie "glass" opened with a $47 million debut in north america that's good news for one of the top openings ever for the month of january in an attempt to cut down on the spread of misinformation what's app will now limit users to forwarding a message only five times. what's app's parent company facebook has been under fire for

the spread of fake news in the united states, but misinformation abroad is more often spread using messaging apps like what's app now, originally the app allowed you to forward a message to up to 256 people. brian, back to you >> so they're trying, i think -- you know, we saw some examples of perhaps this over the weekend. what's app is taking a step to maybe counter this >> yeah, and obviously, all the facebook backlash leading to them, you know, reigning this in a bit more >> kate rogers, thank you very much do appreciate that let's head back out to sarah eisen live in dave yoeos, switzerland. >> i'm here with marcq benioff, he is the founder and ceo of salesforce >> glad to be here >> we're going to start with the mood in davos. you have your hand in so many different sessions and panels talking to leaders what are you getting >> well, i mean, on one level the economy is rocking you know that. we continue to have good growth. we're going to have more good growth this year

of course, you've got, you know, the mitigation of that growth against brexit, the trade war, foreign exchange, rates. that's on people's mind. it's not dominant. the main thing is people are growing. they're investing and ready to go forward, and it's an exciting dav davos. >> you still feel that level of corporate confidence in the businesses you touch, small and large? >> i see that everywhere i go all over the world i've been seeing that now for quite some time, and i still feel really good especially here at davos this is a great place to take the temperature of companies are they investing are they not investing in where are they right now >> you are here talking about a number of issues >> yes, that's right >> gender inequality, homelessness >> inequality is a major issue for everybody. >> you know, not many ceos are talking about ez that issues >> more ceos are talking about these issues than ever before, and i think that's true at this davos. if you go back ten years ago, then we weren't really -- the conversations we were having here, we were not having ten years ago.

what's exciting is we are having these conversations. for example, an incredible conversation about gender equality you know, men and women deserve the same pay for the same work ceos today are, indeed, committed to that, and they are talking about that openly here in you just had christine lagarde on she's a huge advocate for gender ekwaumt for inclusive capitalism that's a major discussion point here you look at san francisco where i'm from san francisco is kind of a train wreck. we have a real inequality problem. we have -- >> is that because of the tech sector >> it's because of the tech sector we have an incredible technology industry one that every city in the world craves housing prices increase. there's been broad gentrification we have a horrible homeless problem. we're not taking care of the people who need us most, and that is an issue that every ceo needs to focus on. in some ways san francisco is the canary in the coal mine.

you know, we have to look at san francisco and say, wow, here's the best technology example in the world, and, yet, the worst homelessness walking down the street is disgusting, and it has to change that's something that -- >> your effort on prop c >> prop c, that was a great example where, you know, we have people who were very committed to getting that done and improving san francisco or kind of what we say here in davos improving the state of the world. each ceo is responsible for their little part, and in our little part, san francisco, we're committed, but not every ceo was committed, as you know we had people who are fighting us tooth and nail, you know, to stop it. they are just there. they need to wake up ceos need to wake up well, you know what i'm saying not just him, but it was ceos in san francisco. it's like, wake up look at what's happening walk down the street can you see what's happening here we have to do something. they're kind of on their own little eps ambien. they're asleep this is an important opportunity

for them to change >> you made a ton of news here last year when you compared facebook and social media companies to the new cigarettes. interestingly, you are way out front on that issue. a ton of backlash over the past year >> it's a huge -- >> where does it go in 2019? >> you're going to see more of the same we're navigating through a crisis of trust, and, you know ceos don't help themselves if we have a crisis of trust and they're not helping the homeless or they're not helping people who need them. certainly if they're abusing their product or abusing the data that they're collecting, i mean, those ceos need to -- they need to also wake up and they need to realize that they can't do that anymore. this is a new day, and i'm glad there are so many government officials now. fine >> the profit mission -- >> fine. they should change their business model, but you cannot continue to do these terrible things to the world with your technology, and you're going to see more of that as a.i. gets further unleashed. you're getting this next wave of artificial intelligence. the tech lash could get amplified as ceos don't make

change now they're going to wake up >> dangers of a.i. you have the new time magazine special. >> we do have the new time magazine >> if you're not involved in it, right, even though you're -- >> i'm the chair, co-chairman. >> yoo you name is all over it >> i'm the co-chairman look, i think this is important to provide some trusted guidance to humanity on some of the most important issues as you can see right here the headline is your move humans it's a robot on the cover playing chess with the founder of the world economic forum claude schwab because that's what's happening robots and a.i. are taking our jobs come to san francisco, you're going to see a grocery store there's no cashiers in the grocery store. you just walk in, you walk out >> finally, i mean, all of this, what you are talking about, a.i., digital privacy, it needs regulation and government, but we're in a shutdown now of record proportions >> yeah. >> how are we going to get anything from the government on this front >> well, i think, you know, the government hopefully is going to get turned back on they've got to be a key partner and player in making this happen they have a more responsible

role look, it has to be a multi-stakeholder dialogue that's why davos is great. the government, business, social leaders, ngo leaders, everybody has to work together today what we have a lot of challenges in the world look at the environment. you know, we're talking here about the oceans at davos quite significantly. we all know there's more plastic in the ocean than fish by 2050 nobody wants a plastic ocean we're still deforesting one acre a second nobody wants a world without forests. right? and we need those forests more than ever because it's getting warmer we're talking about a three degree celsius change on the planet when you deforest and cut down those trees, the co2 gets released, and we get more global warming. we have to put the environment first. those are the things i'm interested in here >> you have a lot on your plate. >> sarah, thank you. >> thank you very much bringing a whole new meaning to ceo activism marcq benioff founder and chairman and ceo of salesforce. >> i know the investing and

hedge fund community is out there as well. ifyou get a chance to catch up with jeff oven there at daf i don't e-- davos what did he have to say? >> it's his first time in davos, and he, too, is thinking he has this new fund, spring fund, where he is thinking long-term and sustainability that's not what you get, actually, from your typical hedge fund manager, and he made that very clear. kind of insulting his industry listen >> the idea that -- that the extreme is this accepted principle that the corporate governance serbs only one purpose, which is to mac miez shareholder value. i think that and specifically that means that the role of corporate governance is not in the interest of the overall firm or in the interest of the assisting in achieving a corporate purpose. you get this weird dynamic where

profit follows purpose or the idea that purpose, you know -- profit leads, and -- >> purpose is secondary. >> to me that is -- that's just ass backwards, right in this way i think capital markets and public companies are showing their limitations in terms of how they can play a role in societial good >> we also did talk, brian, about his view on financials value act has a big stake in citigroup. just arranged from an innovative kind of arrangement with citi and its executives they call themselvesthe friendly activists it's a sample of some of the conversations we're having here at davos hedge fund managers, ceos, policymakers about dealing with the slowing economic growth, but at the same time fixing some of the most critical issues that marcq benioff was just having, and it really fits in there with the oven themes.

longer term, finding companies with purpose over profitability, which, in turn, leads to better investments. back to you. >> all right, sarah. thank you very much. jim cramer, a few minutes ago, tweeting out "got to be careful, markets, because a lot of hedge fund mrgsz in davos who might be calling for the end of the world. just something to watch with regards to the markets this week all right. coming up, inside the slowdown china's economy hitting the brakes a bit we are digging in on the big money impact to you and why you care about their economy next. ♪ when i first came to ocean bay, what i saw was despair. i knew something had to be done. hurricane sandy really woke people up, to showing that we need to invest in this community.

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(vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours! (vo) quickbooks. backing you. >> your top market story today is china china saying its economy grew at 6% last year 6.6 to be exact. now, it sounds good for us, but that is the slowest pace of growth in nearly 30 years. all the way back to 1990 wow. what could this slowdown mean for the greater globaleconomy? let's bring in gordon chang, author of "the coming collapse of china." it's an interesting story. 6-6, as we noted earlier, sounds pretty good. we loved -- if we had 6.6% growth here, we would be dancing in the streets for them it's a negative story how bad is it? >> it's not 6.6. >> you think those numbers are fudged >> a university professor in beijing last month created a

sensation across china when he said, look, the economy is either contracting or growing no more than 1.67%. you start looking at some of the underlying indicators. it does look like in december the economy was contracting and we're going to see even it slow further in the next several months for a number of other factors. right now china is at that zero level. maybe a little bit above maybe a little bit elow. it's certainly not growing 6.6 >> i want to get that straight because what you are suggesting is an economics professor at a leading chinese university came out and basically said the chinese government's numbers are 5% off >> yes that's exactly -- >> that's bold, and, by the way, that's brave >> it is brave, but a lot of people have been saying that as well you know, you look at the economy over the last three years since 2016 it's probably been growing in the 1% and 2% range in reality >> what makes you say that, though i'm not going to defend the chinese numbers, but what makes you so confident that that's the

case >> 2016, world bank issues a chart shows that the chinese economy grew 1.1%. that sounds low, but also, that's consistent with the single most reliable indicator of chinese economic activity total primary energy consumption. in 2016 total primary energy consumption, according to official figures, grew 1.4%. what you are looking at as an economy that's been growing in the onesies, two-ies, you look at the december numbers, car sales down 13.0% all the warnings from apple and goldman, this is an economy -- >> don't you love that i mean, we get the numbers everyone is worried about smartphone sales samsung had bad numbers. the car sales have been weak all this anecdotal data, and, yet, we get the 6.6% official prep >> well, but chinese -- >> it doesn't seem to connect, does it? >> no, it doesn't connect. it hasn't connected for a little while, and now i think people are actually starting to say, oh, many i gosh, it really isn't

6.6. in reality we are growing faster than china is, and we've got a bigger economy than they do. >> do you really believe that? >> yes because we're growing, you know, who knows, you know, 3.3 >> you are on numbers are real >> our numbers are real. it's always hard to measure an economy like china's because it is changing so fast, and when you look at those numbers that for more than three years were within the 6.7%, 6.9% band, that's not reality >> they're stimulating the economy. they're offering sneincentives d trying to mess around with tax rates. is that going to work? >> a little bit, but it's inefficient. they've blown up their money supply so much that even adding a lot of money doesn't really have the effect it had, say, ten years ago. >> gordon chang, always great to get your insight, and a clear disbeliever of the chinese economic numbers gordon, we appreciate your view. thank you very much. >> thanks, brian >> up next, it may be a shortened trading week, but it's still a big week ahead for your money. we're going to break down the key things to watch outside of what we just talked about with gordon when "worldwide exchange

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>> anne a holiday shortened trading week there are other things to watch for out there today. we get existing home sales and earnings from capital one, johnson & johnson, and ibm tomorrow more earnings including our parent company comcast go, comcast. on thursday look for additional jobless claims, and we round out the week with another big batch of earnings. that's just getting you started here let's bring in now jim, managing director tjm institutional services cnbc contributor a man who likes to get up early and a man who tweets as well that he is going to bed at 6:00 p.m. on a monday night we'll see if that's true, jim. all right. let's just kind of throw away this week because we want to look bigger picture. china, the shutdown, the fed something else what's the most important thing to you on your radar for our viewers' investments right now >> well, to break it up in

different time frames, the overarching biggest deal is still the fed, and right now the fed is kind of stepping back from its hawkishness, and the one thing that's interesting about that is when we heard little tidbits about the china trade talks last week, it's interesting to me how good a mood the market is and how willing to accept things at face value as long as the threat of higher rates seems to be gone. now, one thing you didn't mention, we're in the midst of earnings season, and earnings basically to me is broken up into two things. there's bank week that we saw last week, and then there's tech week that begins the 31st and goes through about the 8th that's a big deal. a lot of those names have done heavy lifting for a long time. yeah, i mean, china is still the biggest deal now we have until march 1st. now that we've put some good news into the market, i worry that there's a little bit of an opportunity for, you know, some back fill in the market. 2,600 was this huge level in the s&p. a lot of people sold it against that level and those short covering up to the 2680 highs. i expect on the short-term a little down side

other than that, i don't think we're going much lower, unless the fed starts talking hawkish again. >> let's put the fed aside for a second, jim. day 32 of the government shutdown, the dow is up nearly 6% in january. when does the shutdown start to hit the stock market >> well, this is interesting because the s&p is actually up 10% in the tiemds now, and if you look at shutdowns over the last 50 years, the stock market is basically steady during shutdown time. it's not a huge deal, but we have not experienced one that goes this long we've had people that are going out and talking about how it affects gdp. it can affect the market in within the next two or three weeks ahead. provided only if the fed -- i know you said take the fed out of it, but i will not do that. that's one thing i refuse, because the fed is there front and center if they start talking more dovish to counter balance slowdowns from the shutdown, then it shouldn't have much effect on the market if they don't, that's where the problem lies >> okay. when does the fed react? do they react? if so how do they react? >> well, i think they will, and

i think they've showed us a couple of times. this goes back to summer of 2015 when the market broke 8% in two days, and all of a sudden the fed came out and said the case for tightening is less compelling now, this time they tried to be a lot tougher all through 2018, but finally, they caved towards the end. i think they realized that fundamentally there's a lot of excess and a lot of weakness, and the fed needs to be somewhere between dovish or at least very slow in their progression towards hawkishness in order for us to get out of this okay. i think the fed has a ptsd sort of thing much like people like we do after seeing the two bubble busts over the last 15, 18 years. so i think the fed right now has cracked, and i don't think they're going to get more hawkish any time soon. >> the fed has cracked and not getting any more hawkish well, guess what, jim, we're glad you didn't crack and made it in early in kmi, and we'll see you again. thank you very much. >> thanks. >> all right time now for your morning

rbi. a lot of serious stuff going on right now. let's stay a little bit light, right? let's hit the sports world if you missed it yesterday, something pretty incredible happened in basketball golden state warriors guard clay thompson was absolutely dialled in last night. he made ten consecutive three-pointers to open the game in the warriors blow-out win against the l.a. lakers. thompson's ten threes ties the nba record for the most consecutive three-pointers in a single game. here's what's random and hopefully interesting. you may know that, but if somebody comes up to you today in the office and says, wow, thompson, you see him? who did he tie you are going to know the answer he tied ty lawson in 2011 for the denver nuggets who also hit ten consecutive three-pointers ty lawson now plays for the golden warriors in the chinese basketball association ty lawson and clay thompson join together in basketball p

perpetuity we have a lot of coverage coming up from davos all day long and all weeklong here on cnbc. have a great day thanks for watching "worldwide exchange." "squawk box" live from davos next with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪

>> bridgewater's, and the ceos of ups, ibm, bp, and others, but we're going to kick it off this hour with bank of america ceo brian moynihan blackstone ceo steve schwartzman and marriott ceo arnie soren son. he is sporting a new' do january 22nd, 2019 "squawk box" begins right now.

>> this is a special presentation of ""squawk box"" live from the world economic forum in davos, switzerland. >> good morning. welcome to ""squawk box"" here on cnbc, where we are live with the world economic forum in daf yos. i'm becky quick. we already have news from the mountains. the imf issuing a warning on a global slowdown. this comes after china's report that its economic growth for 2018 came in at 6.6% that was the slowest we've seen since 19 the 0 let's take a look at the markets on all of this by the way, we should point out that imf number, the reason that they downgraded things was not because they see a slowdown in china or the united states it was really germany where they see a big slowdown places like saudi arabia and what people here are saying is that the imf tends to be pretty conservative with some of the numbers. you might see other economists kind of reigning in their numbers even more than that. take a look this morning you're going to see that the dow futures are indite