>> it's 5:00 a.m cnbc global headquarters 5:00 a.m. also in the nation's capital where some 800,000 federal workers are waking up this morning without another paycheck frustration growing. the government shutdown now in its 35th day we are live in washington. whether there is any impasse that is going to break is straight ahead breaking news out of venezuela the state department ordering all non-emergency personnel out of the country political tensions on the rise we have got the latest on this rapidly unfolding situation. intel shares are down big this morning, and it has a lot to do with china we'll explain. big banks headed to the hill of the nation's topt financial

firms will testify before the house financial services later on this spring, and facebook ceo mark zuckerberg on the defense this morning we'll tell you what he says about protecting your data in a new op ed on this friday, january 25th, as worldwide exchange begins right now. ♪ all right. good morning, good afternoon, good evening happy friday i am brian sullivan. thank you for joining us leer on cnbc as you can see, dow futures, well, you can't see dow futures. they're up fractionally, though. we're going to begin today in washington where some 800,000 furlowed federal workers will miss now their second paycheck in a row the government shutdown drags now into its 35th day. let's get right to nbc's tracie potts in washington with more. tracie >> hey, brian, good morning. a bit of a different story today because for the first time in

five weeks it looks likes lawmakers have some hope they might be able to get government workers back on the job. this came after two plans to do so failed. the democrats' plan and the republican plan. that forced them to come back together the working plan for now seems to be a three-week temporary budget that would bring workers back, get them paid, and provide some time to work out a deal on border security. sounds sof like what the democrats were pitching, except that republicans are saying there's got to be something built in on the wall so far the two sides working together behind the scenes on a deal that has billions for border security, but not necessarily anything for the wall republicans say we need a large down payment the other thing here that's providing some level of optimism, president trump. he says he is going to let the senate work it out, and if they come up with something reasonable, he will sign it.

brian. >> all right, tracie potts thank you very much. staying with the shutdown. two big banks taking down their growth estimates for the american economy due to the shutdown jp morgan chase now seeing first quarter gdp growth coming at 1.75%. that is down from the previous estimate of 2% it is, though, the second time in two weeks that jp morgan has cut their growth outlook as the shutdown simply drags on in the meantime, barclay's also cutting their first quarter growth outlook by half a percent. they're a little more optimis c optimistic they see growth still at 2.5%. let's turn to the rapidly unfolding situation in venezuela. the state department ordering all non-essential u.s. workers out of the country as political tensions continue to rise. this comes now as venezuela's generals, the military, throwing its support behind isolated leader nicolas moduro. the u.s. is now looking for ways to cut off the money to the moduro regime and back that

nation's opt zbligs leader and self-declared interim president. oil prices are pushing higher this morning as tensions rise in that opec nation joining us now is catherine rooney vera chief investment strategist at bulltick capital markets. something we did not know yesterday that we know now is what would the military do, the generals at least. maybe not the whole military, have thrown their weight behind moduro do you believe that will cement his reign in power >> absolutely not. hi, brian. good morning the generals can say whatever they want to say the most important thing, brian, is what the troops decide. if there's even some faction within the very powerful military in venezuela that decides to align with the international community, we're talking 13 plus countries that have already acknowledged mr. guido as the legitimate president, then we can see finally that inflexion point and that much long desired change in

venezuela. >> so we should not assume, catherine, that just because the generals, a couple of maybe who are in his pocket, throw their weight behind him, that the military will follow suit because i hate to say it, money is worthless there, but bullets have a lot of value. >> that's right. that's right look, the jerns are baltimore, sold, and paid for that's why the military has been in alignment with the current regime for so long despite massive starvation, a derth of medical supplies, much death and destruction. this is a really savage humanitarian crisis, brian, and, yeah, the generals, for are sure, are going to stick with the guy who is, you know, lining their pockets, but at the end of the day, if pressure continues to mount as it is, so aggressively against this regime, i think his days are really numbered. >> especially if you cut off the money supply because, as we have noted here, the u.s. refining company, sit go it is the majority of venezuela's economy.

had he sell to the u.s., and citgo employing thousands of good american men and women, and they happen to be owned by the venezue venezuelan company if we cut off the money supply, perhaps that will finally be the end to the moduro regime do you believe there is an effective way to do that >> absolutely, brian i have been saying this for years, and i completely align my believes with what marco rubio has long touted. i think president trump has outsourced really this type of venezuelan policy towards marco rubio, and what he said for a long time, and i completely agree, is cut them off we are, get this -- i don't know if you know this, brian, but the u.s. is the only country in the world that's paying full market price for venezuelan crude oil we are, in effect, and indirectly and unintentionally sustaining this regime, which is, in fact, a dictatorship. last year's elections, brian, were illegitimate, and disqualifying him as president

actually, he is not a self-declared president. he is fulfilling the constitutional obligation as the national assembly president to assume power of the executive until free and fair elections can be held, which the constitution is required within 30 days. >> i do know that because their biggest creditors are china and russia i mean, those countries have really stood behind venezuela and moduro they have lent them billions of dollars. they have an economic, if not a political interest in keeping the moduro regime going. there's an economic story here very much as well. catherine, let's hope military intervention by outsiders is not needed, but how do you see this all ultimately playing out >> oh, you're absolutely right i really hope that it doesn't come to that let's say this is such a dicey situation, brian let's say that moduro does arrest or even, you know, concoct a plan to squash in a violent way what is rightfully the venezuelan people's assumption of power. then the u.s. could very well

come in with military intervention at the very minimum to protect our own diplomats that are kind of in harm's way at this point. as you mentioned in the intro, they're being pulled out, but not because moduro, you know, gave them the boot he is not the legitimate president, but for their own safety let's hope it doesn't come to that, brian. i would say the first thing that it is u.s. needs to do, you know, is more sanctions, cut off oil. i think that would break the back of the regime because, as you said, they're only sustained by their cash cow, which is oil. citgo is based in the united states, and we have recourse there. it is the final day of the world economic forum in davos. let's get back to sarah eisen who has another big newsmaker for you. sarah. >> brian, good morning with us now is steven, the co-chairman of bean capital.

steve, welcome >> good to be here >> last day of davos you have talked to a number of world leaders and ceos you yourself touch a number of different issues from health care to technology how would you wrap up the outlook for 2019 on the global economy? >> i think the bottom line is proceed with caution we're seeing a little bit of a slowdown in china, slowdown in europe the major concerns, the three major concerns of folks here at davos are what is going to happen with brexit, and i have talked to 25 people and they all have different opinions. no one knows at this point we have a government shutdown. they have brexit they just don't know bhaets going to happen. that adds uncertainty to the markets. the second is the trade war. we're seeing a lot of, i think, progress there, it sounds like, from all camps and folks i have talked to here they're making progress. >> third, they're probably talking less about, but i think is very important, is what

happens with interest rates? what happens with many of our -- the u.s. government, for example, running a large deficit $700 billion deficit $22 trillion debt now. i know when we talked a few years ago, the debt was $15 trillion it's growing very quickly. if interest rates go up, that's going to cause pressure on the markets. >> i want to talk about trade and your business. you have been pretty active in asia youhad a massive deal with toshiba last year. are the trade tensions and the regulations and barriers preventing deals getting done that you would normally do >> so far our deal got approved, and we sell in china we have -- gaifd gross and jonathan are big asian hands, and they have led that situation, and we have gotten that through the company is doing well. it's truly a great company that's inside of toshiba, and now an independent company it's a leader in making flash drives it's a new 3d chip that's in all

the phones we have plans to take it more global >> i think my colleague brian sullivan has a question for headquarters first off, steven, you guys in boston, you got to stop winning, okay the red sox, the patriots, and your celtics are 30-18 let's just stop the winning if we can, spread some of the love around i'm shocked you're wearing a canada goose jacket given that you have -- you have investments in bob's discount furniture and billabong. you have a pace and pulse on the retail and consumer in the united states. any sign of an economic slowdown on the retailside, steven? nice jacket, by the way. >> canada goose is a great company. we've done many, many retail deals, and right now we're not seeing a slowdown.

>> it defies this uncertainty with brexit and the trade war. the economy continues to go along. we're not seeing any softness whatsoever you are seeing a continued path towards electronic purchases of everything, and obviously, that's changing the whole retail landscape. you have really got to be nimble and have great internet presence and really get that consumer on-line. >> what was going on beneath the headlines? >> i think the big picture is anybody who had reliance on china. apple, for example went down as well, and hopefully that is going to be a temporary blip in what's going to be a resumption of trade with china when we get this resolved. >> where are we in the cycle generally, and how do you see that in terms of what the dealmaking is going to look like in 2019? >> this is the largest expansion i think we've had in history.

>> you cut to miami, and we're building -- there's going to be a dock in miami, and these boats cost $800 million, $900 million. really exciting things like that we're also looking at things like we pulled out the cns portfolio. central nervous system portfolio, pfizer. investing with a former company with adam through our life sciences group you have to be very creative in these kinds of markets you can't pay a top tier multiple and then expect multiples to go up you have to transform those companies. bean capital was set up to do that starting 35 years ago we feel like it's a good time for us, but proceed with caution. >> all right

steve, thank you got the message. steve, good to check in with you, as always >> i'm the warmest man in davos due to -- >> that is a puffy coat. >> it is >> you're not the only one wearing canada goose >> can i get you to ask him a very important question that he will like? >> is it about basketball? >> it is, because he co-owns the boston celtics, but he is a duke guy, played for the basketball team there >> i know. >> will they trade up to get zion williamson? >> did you hear that >> if they do that, they would -- if i knew that, they would shoot me if i told you that, they would shoot me he is a great player that's a great year for boston and for duke.

zblie slowdown can really roast investors. pour yourself another cup of coffee it's:1he ithmoinin the east, and worldwide exchange the east, and worldwide exchange will be right back. hey, how ya doing? uh, phil. are you guys good with brakes? we're ok. just ok? we got a saying here. if the brakes don't stop it, something will. that's not a real saying. it is around here. i wrote it. just ok is not ok. especially when it comes to your network.

at&t is america's best wireless network, according to america's biggest test. now with 5g e. more for your thing. that's our thing.

[ neighing ] [ screeching ] ♪ [ sigh ] it's bring your own phone, not pony. so i could have taken the bus? yeah. bring your phone. switch your carrier. save hundreds a year with xfinity mobile. plus get $100 back when you bring in an eligible phone. call, click or visit a store today. your top single stocks this morning is going to be intel wow. that stock down 5.5% deep in the red. frank holland is here now with more on the chip slip. frank. >> well, brian, that sharp drop that we're seeing right now is largely due to intel's revenue

miss and some weak guidance for 2019 the chip maker's most profitable segment client computing came up short of analyst estimates still, the chip maker did post a solid beat on eps coming in 6 cents above estimates. meantime, intel's data center group also missed expectations the company's interim ceo says those lackluster results are thanks, in part, to slowing demand and trade issues with china. analysts are also weighing concerns about the uncertain demand from apple. that's a key intel customer. separately, there's also concern among investors about intel's ongoing search for a ceo this after former ceo brian was forced out seven months ago for a consensual relationship with an employee. now, amid all these results and the uncertainty, shares of intel, as you mentioned, down 5.5% we're going to hear from intel's interim ceo bob swan later on this morning that's at 11:15 a.m. eastern time i'm sure the team is going to have a lot of questions about that search. back over to you, brian. >> they will we'll see you in a few minutes thank you very much. staying with some of the

chipmakers they're also watching shares of western digital. hard drive maker the company reporting revenues fell more than 20% you say, well, why is that stock up this morning? because their guidance of good the company now expects revenues to improve in the second half of the year shares of western digital right now up nearly 10%. we're also keeping an eye on starbucks. strong results last quarter. same store sales growing 4% here in america just 1%, though, in china. now, starbucks opened 541 new stores in the first quarter. more than one-third of them were outside of the united states starbucks shares are also higher this morning nothing takes the cake like pg&e those shares skyrocketing late yesterday when california investigators cleared the company of any wrong doing as part of the deadly wildfire that has ripped through santa rosa back in 2017 however, do keep in mind pg&e could still face huge liabilities for last year's deadly campfire, and they may

file for bankruptcy. right now pg&e shares are giving back some of yesterday's gains when you have a potential bankruptcy overhang where equity investors would likely be wiped outs, that tends to happen up next, a possible sign of the times. coke is doing something it has not done in 11 years what is it we're going to tell you ahead. first, we're going back to davos. davos. davos. the head of jp morgan chase international, we'll get his take on the global economy he has a good beard. he has a good beard. stick around ♪ hawaii is the first state in the u.s. to have a hundre and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy,

we can take care of this beautiful place that i grew up in. ♪ (sounds of race cars) the same iot technology on the ibm cloud that helps race teams improve performance and safety. bye. girls, don't wave at strangers. can now be built into everything we drive. when you apply expertise across an industry, bye! you can put smart to work.

you mighyour joints...ng for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally discovered in jellyfish, prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life.

here's a look at stock futures, and they're up nicely dow futures indicated up 28 points right now s&p and nasdaq also higher on this friday morning. as always, we're going to have more on the markets in just a couple of minutes, but first back now to the town of davos, switzerland, where some people have gathered to talk about some stuff that's important sarah. very important brian, good to see you again joining me now is jacob frankel. the former governor of the bank of israel and a davos regular. jacob, nice to see you >> nice to be here with you. >> 32nd year at davos at the world economic forum >> consecutively >> how would you describe the mood in terms of the global economy this year?

>> well superficially it looks like the mood is not extraordinarily growing, but if you look at it, you realize that actually the situation is not as bad as some people make it to be the united states is doing pretty well. it's not coming out of the blue. it came from policies. i think that the corporate tax reduction, i think that the deregulation, i think that the release of tracked capital, i think the overall view about the roll of business in the economy have had positive implications of course, there are a lot of issues that create diskmvt the trade relationships, the u.s.-china relationship, the closure issue. things of that type create therefore, risks and, drfr, affect the mood, but when you look at the numbers, i think the u.s. is doing pretty well. of course, one of the things that characterizes this particular year is that it is a situation that is not fully synchronized across the globe.

japan is, of course, sluggish. china, by the way, people speak about china slowdown this slowdown, let's put it in perspective. it is 6% plus. it was engineered. it is something that everyone said two years ago if china does not slow down, there will be a bubble that will be exploding, and there is this slowdown in the government that seems to have its hold on the economy >> i am less concerned i do see clouds, but i don't see it from a perspective of a crisis rather, from generally slowdown. >> you are projecting a more upbeat tone, and that's something i'm actually getting from here, versus the media and volatility in the markets the last year was suggesting the trade risk is real, though, and that's the biggie, right do you share the optimism of

investors and others who see some progress towards a trade deal >> well, it is clear that that's one of the most sensitive ieshsz if you look at the markets, whenever the markets get a glimpse of hope that there is progress in the negotiations, suddenly you see a spike when the markets get disappointed, you see a significant decline. it is markets are eager to see a trade deal, but it's not only because of the affect on trade it is because of the affect on the image of governments do the large two economies of the world, do they get along can they operate together?

>> it's tricky >> well, central banks in contrast with governments are in practice looking much more into the future than governments, and it is in this regard occasionally there seems to be a superficial misconduct however, one of the issues over the past decade was that the central banks have been the only game in town they were very important, very prominent, but it is not a healthy situation. the situation requires now a much greater role of government. si synchronization and not dysfunctional governments. i believe that we will see now a period where central banks go not in the same direction. the u.s. will after polls of maybe a quarter or two will continue its normalization process, and this year we will see probably at least one and maybe two hikes of interest

rates. >> really? >> yes, because the economy is doing well europe is still not well europe will have still both situations and an interest rate will still be delayed in europe, and, of course, japan still a long way to go if you come from outside and you say how come central banks all go to different direction, that's not the case. the economies are not fully synchronized, and, therefore, monetary policy must reflect it in going in different directions >> always good to get a check-in on the state of the global economy. projecting away from the doom and gloom. some optimism. thank you. >> my pleasure >> jacob frankel, former governor of the bank of israel of jp morgan >> sarah, thank you. >> on deck furlowed and furious anger growing at some 800,000 federal workers will not get paid again today it is their second missed paycheck is zuck passing the buck zuckerberg getting defensive in a new op ed. we'll tell you what he said, and

ats dehayothk.t u in th inext

zblierkts taking another turn. u.s. state department now ordering all non-essential personnel to get out of venezuela. that's a fight for power

mark zuckerberg getting defensive. we'll tell you what he is saying about what apparently you don't understand about facebook. futures are up 80 points as worldwide exchange rolls on right now. ♪ welcome back thank you for being with us here on cnbc. happy friday i'm brian sullivan we are entering day 35 of the partial government shutdown. that means 800,000 federal workers are waking up this morning to a second missed paycheck 800,000 men and women who have now gone a month with no pay there is some hope new momentum gathering from lawmakers to try to reopen the government let's get right now to aemon with more on the stand off >> good morning, brian the senate took two cracks athe, voting on two different bills. one with the president's wall funding supported by republicans. one version without it supported by democrats both votes failed in the senate

yesterday. enmooing they weren't able to come up with the required 60 votes for either version. >> negotiations continue lindsey graham and others seemed to support that in the senate yesterday. the president after those two votes failed in the senate yesterday seemed to signal he might support that as long as it came on his terms. here's what the president said yesterday. >> i have other alternatives if i have to, and i'll use those alternative ifs i have to. we want to go through the system we have to have a wall in this country. >> the president there not backing down on his signature

proposal, which is to have a border wall between the united states and mexico. the president wants $5.7 billion for wall funding the democrats have said they're not going to pay a dollar for that wall. the question is where do we go from here? one of the interesting dynamics we saw yesterday, brooirn, was that the president seemed forced to respond to wilbur ross who had made comments on cnbc earlier in the day in which he seemed and was criticized for being out of touch because he suggested that furlowed federal workers could simply go to the bank and get a loan to cover the difference of the paychecks and that, therefore, there wasn't really a problem he didn't see any reason for them to be going to food banks, like a lot of federal workers have been doing here in washington d.c the president went out of his way to praise federal workers in that appearance yesterday. here's that remark >> i love them i respect them i really appreciate the great job they're doing. you know, many of those people that are not getting paid are

totally in favor of what we're doing because they know the future of this country is dependent on having a strong border >> it's not clear what the solution will be that will reopen the government, and, clearly, it would seem that the president is not going to be able to give his state of the union address on tuesday night given that nancy pelosi has said she won't allow that while the government is still shut down. >> it's probably a stupid question on my part to ask, but are congress men and women, are they being paid? >> i believe they are, right >> funny how that works. >> this is a partial government shutdown, right? they passed a number of the appropriation bills that fund different pieces of the government they weren't able to pass all of this em. i believe the legislative branch appropriate yags, which is the one that funds the salaries, that passed last year. >> got it. so they're fine. they're okay they're getting paid they're getting paid >> it's interesting --

>> they're getting paid, for all the speeches and all the stuff they do. everybody is fine there, but men and women on the lower rungs that can't afford to go a month without a paycheck, they're not being paid just to clear that up. >> i looked at the lowest level gs scale pay salary, gs is the government scale pay grades. gs1 is $18,000 a year. it is just not that much money you are talking about some people on the very bottom rung of the federal pay scale bho aren't making all that much money at all the idea that they can go a month without a paycheck, you know, i remember when i made that much money. there's just no way i could go a week without a paycheck. >> aemon, thank you very much. receipts where i in it economic reporter and politico -- congress is paying themselves, right? i just want to clear that up >> they're doing fine. checks are rolling in. >> president is digging in democrats are digging in how does this end? >> i think, brian, that the president clearly wants a way out of this now. the white house wants a way out

of it. >> keeps changing his language right? wall barrier. >> security. >> his attitude has changed on the last couple of days, and there's a few reasons for that the main reason is all the available polling data tells us that people blame president trump for this shutdown. they blame the fact that the last minute he said he would veto a clean spending bill that did pass the senate without any opposition because republicans thought he was okay with it. then he changed his mind shut the government down his approval rating is going down economy is at risk people are suffering he needs a way out at the same time he is so locked into getting wall funding that it's been difficult for him. he doesn't get it. there is this chance that he will do an emergency declaration and try to build the wall that way. i don't think democrats are going to give him any wall funding. if they do, if they make a compromise, that incents him to shut the down down again democrats, i don't think, are willing to budge, and i think they see the polling data too that they are on the better side of this thing. >> isn't that the problem? okay whatever side -- i'm sure we have viewers right now, and

listeners, who supported both sides. 800,000 people are suffering because of it. >> right >> both sides are to blame if the democrats get -- >> i don't necessarily agree that both sides of the situation. >> why not >> because you had the house pass a clean funding bill. you had the senate controlled by republicans unanimously willing to do that the president knew that democrats were not willing to given this money for the wall. don't believe that there's wide support in the public for the wall, which there isn't. they said, okay, this is what we're going to do. the president said, okay, i'm shutting down the government >> fine. nobody is -- whatever you think about the wall, again, is it worse to give into the president and look like you're giving $5 billion -- by the way, the u.s. economy is $20 trillion. $55 billion in economic output every day. the wall funding is 10% of the

daily economic output. one day. 10% of one day's economic output it's nothing it's time to be -- it's symbolic >> it's border wall funding in the past there's another context they could support security funding, but they will not support this wall symbolically supportive is probably the key >> as you talk to people in d.c., even if you give the president $5 billion for "the wall" there's no guarantee the wall is ever going to be built anyway >> no, there really isn't. we are locked into a semiridiculous sam antic argument.

>> this is where trump says it's not about technology i need to call it the wall >> you can't do it for $5.7 billion. you started on more fencing and more updates to existing structures if they were to say not $5 billion, but it's $2.5 billion, and it's a border security package, then you get a deal i think that's possible. >> i grew up partly in san diego, right we would go across the border all the time to. there is a wall. i know physically there's a wall can the democrats have an out where everybody sort of wins by the way, while they fight over words -- >> these are real people >> 800,000 people are suffering. >> 100%. >> give the $5 billion for improvements to the existing

strurgt. these politicians are worried about their own reputation you gaive into this and that both sides yes. >> equal guilty. give $5 billion for the fixing up of what already exists. no one is going to do anything anyaway. >> there is a potential for an agreement in there here's the problem if democrats were to say okay to the number that the president wants he is going to go out there and call it a victory for the wall >> yes, he will, and that's what they don't want. >> that's what they don't want >> it's not just for politics. >> i beat pelosi >> it's also for the basic principle of governance. you can't govern this way. you can't govern by saying every time i don't get exactly what i want in a spending bill i'm going to force a shutdown. democrats don't want for set that precedent

they don't want it to be we've caved on this, and he is essentially getting his border wall funding the next time he wants more border wall funding, and we need to fund the government, he is going to shut it down again. >> fair enough i'll give some advice to the other side as well couldn't president trump -- is there anybody who could wisconsin in his ear and say, mr. president, your approval rating is falling. look magnanamus for once for the good of 800,000 men and women who live, by the way, around us for the most part in d.c., i will cave. >> there is a way to do that >> couldn't he come out of this looking good >> he could. he hates to admit defeat there's a way to spin it that he is fighting hard he showed his people that he is going to fight hard for this wall maybe he does the emergency declaration and finds another path forward and says later on, look, we built more wall structures we are building the wall you need to re-elect me to finish it off. he could do that, and he could look magnanamous it's not his strong suit to do that, but -- >> why not -- i know the president watches cnbc

if he is listening right now or watching cnbc, why not do the unexpected thing >> yeah. >> just admit -- i don't want to say defeat, but just say for the good of these people, right, while we all -- congress is getting paid they're not. i'm going to resume this fight some other day you have gone long enough without a paycheck >> if you are watching, mr. president, good morning to you. we're happy to have you with us. i think there absolutely is that victory that he could say, look, i fought the good fight here we've got to get the government open and get the state of the union. then as we move forward in 2019, i will continue to fight for the wall i will continue to fight for the radio re-election campaign can he get mentally to that point is the question? >> we need to ask joe kernan because the president called joe in pair says at a bistro >> joe is hanging out eating --n >> i think i cursed. >> did you >> i did >> i'll have to look it up on youtube. >> i said the d word that's cable ben blank white.

thank you very much. >> thank you up next, on the defense, facebook's mark zuckerberg is going on the record in a new op ed this morning. he says you don't understand my company. i'm going to tell you what we do and a possible sign of the times. coke is doing something has not done in 11 years you know what, we're going to rock you like a hurricane after the break.

your digestive system has billions of bacteria, but life can throw them off balance. re-align yourself, with align probiotic. and try align gummies, with prebiotics and probiotics to help support digestive health

(danny) (client's voice) ...that you're not using smarter tools to manage your business. you work too hard to work this hard! collecting receipts? is it the 80s? does anybody have a mixtape i can borrow? you should be chasing people's pets... ...not chasing payments! quickbooks gives you a sweet set of business tools... ...that do all the hard work for you. you may groom corgis, but you don't have to work like a dog. (vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours. (vo) quickbooks. backing you. sfliefrmt there is a must read

out for you this morning if you are concerned about your own data privacy, mark zuckerberg defending his company in an op ed journal today. it is titled "the facts about facebook." zuckerberg defending facebook's privacy practices writing that it does not sell user data something he has said ochk in the past he adds that facebook's business model is "still evolving and kbroufg. let's find out what else besides that op ed you might be talking about today in time for this morning's top trending stories frank holland, what are the top trending stories >> we got a lot going on we got to get right to it. we're going to talk about our business a little bit. >> what? >> yeah. we like to talk about it for anyone that's ever oned what it's like behind the scenes in a newsroom, like this one, sky news has a treat in store. the u.k.-based network is honoring its 30th anniversary with a 17-hour live stream of its newsroom there will be 32 cameras placed all around streaming live from 5:30 a.m. to 10:30 p.m. local time on the day of this event. the network is calling the event

live news raw. i don't know how it's going to work in glabd, but i think we're going to find out. >> it will be a bunch of people wearing headphones, i think. >> typing a lot? >> valentine's day is coming up. right now if you are still mourning the loss of the iconic conversation hearts, just head to your local krispy kreme the chain is selling a heart-shaped donut with pastel icing and love-themed phrases like crazy for you, pick me, and call me. sweet treats come in multiple flavors and will be available at krispy kreme between january 30th and valentine's day >> is that a donut >> it's in donut form. >> can that be a donut if it's in heart form? >> does a donut have to have a hole in it >> somebody needs to know. >> eclaires. they don't -- >> who is a donut expert >> we already know.

we need our aidence to chime in. does adonut have to have a hole >> no. >> our director elizabeth just said in my ear that a jelly donut does not have a hole that's an excellent point. >> you call a jelly donut a donut. >> that's why liz is smarter than i am where. >> i'm not going to argue. >> for the first time in 11 years coke won't be running an ad during the super bowl instead they've purchased an ad slot before the national anthem during the pregame broadcast the 60-second ad will showcase the themes of diversity and inclusion. this year super bowl ads are going for more than $5 million for a 30-second spot big spender this year? budweiser, actually. they're diagnose a bunch of commercials. >> they're going to advertise beer during a football game? what the heck is that? >> i got one for you their first ad of the big ad is for spike seltzer. that shows you how the world is -- >> now there's spike -- that's the new word for alcohol >> it's hard cider >> you know what i mean?

>> i do know what you mean i'm shocked they're going to advertise spike seltzer. >> that's what it's all about. every commercial break is beer, burgers, and some sort of male problem. >> guess who else is coming back the dude from big lebowski jeff bridges was teasing it on-line. >> i can abide >> let's go bowl thanks, frank. up next, recession risks talk of a potential major pullback dominating wall street recently, but one market pro has got four reasons not to stress he is going to make his case ahead wrrks and furlowed and furious. six billion reasons why federal workers have a reason to be ticked off today stick around

do i use a toothpaste that whitens my teeth, or one that's good for my teeth? now i don't have to choose. from crest 3d white, the whitening therapy collection with new spearmint and peppermint oil. it gently whitens, plus it has a fortifying formula to protect your enamel. crest. healthy, beautiful smiles for life. ♪ lookin' better than a body has a right to ♪

♪ and shakin' me up so applebee's all you can eat is back. now with shrimp. now that's eatin' good in the neighborhood. ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution that lets us collect near real time data on our power grid. ♪ if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪ let's bring in now steve, portfolio manager at fed rated steve, it's been a good start to 2019 from the equity market

after what has been a december to forget, obviously do you remain optimistic do you think the overall -- i know, listen, you are an investor or stock picker do you think the macro market will end higher this year than it is right now? >> absolutely. >> why >> i think because the market -- look, q4 was one of the worst seven quarters since 1929. you were pricing in a recession. there's just no question about that we're not getting one. i mean, at least there's no -- >> what makes you so confident to say that? >> because there's no indication in the data, right when we take other people's money, it's our job to try to look at the data and make the best informed decision if you look at the indicators of recession, you have a pick-up in claims that occurs beforehand. you have inflation that picks up housing starts roll over spreads blow out the yield curve inverts. ism manufacturing goes below 50. none of those indicators are anywhere near recessionary levels if that's not the case, you are dealing with a non-recessionary pullback there have been 12 since 1930. average of 25% down over six months 12 months later, you are 32%

higher the stock market and the economy are sometimes the same thing not always the same thing. >> bull markets end in recession. they just don't end because. they don't just get tired and stop if you don't have a recession, there's no reason to think that the bull market is over. >> energy, industrials, materials, tech, parts of discretionary. these were all down 30%

between -- or close to 30% between the top in september and then that christmas eve ow, an you started to see rebound there. small caps, defensives are also very attractive, and some of the dividend parts of the market, which is to say quite a bit. >> so are you buying more dividend-heavy stocks? >> we're in the global allocation fund. we generally tend to buy more broad parts of the market rather than individual pieces, but as we recommend to our investors at a firm level, we very much like large cap value, which is not included in a lot of those >> large cap value small caps did so well for a couple of years here in technology the fang -- you ever heard of the fang stocks? the fang stocks did so well. are you saying we need to get backs to basics in some way? >> look at the small caps. they underperformed large caps by 7% last year, and the reason why is because rates were rising 50% of their debt is variable rate

>> i think you are repricing stocks for a different world we're not hiking rates once a quarter between now and the end of time. >> steve, we appreciate your views. thank you. by the way, morgan brennan chimed in. apparently morgan brennan used to work at a donut shop and says that donuts do not have to have holes because there's two shapes rings and shells >> i'm starting to agree because jelly-filled >> last appearance ever. no thank you very much. >> thanks. time for your morning rbi. today it's definitely not random let's call this relevant and important. not random, but interesting. 800,000 federal workers are waking up to another missed paycheck due to the shutdown new study by -- it shows that all those workers will now be owed a collective $6 billion in back pay that number just continues to grow as the d.c. dysfunction drags on just to keep in mind, some 800,000 federal workers have not been paid in a month yes, they will make that money up most of them if you are a contractor, remember, if you are a contractor, this is lost money

you will not get it back in the shutdown, that's it for the worldwide exchange "squawk box" is next because your investments deserve the full story. t. rowe price invest with confidence. ♪ ♪ (buzzing) gather new insights, leave your data protected on-site, and put it all to work with ai. the ibm cloud. the cloud for smarter business.

the ibm cloud. what's a gig of data? well, it's a whole day's worth of love songs. [ baby crying ] or, 300 minutes of baby videos. a gig goes a long way. that's why xfinity mobile lets you... ...pay for data one gig at a time. and with millions of wifi hotspots included, you'll pay even less for data. or, if you need a lot, we have unlimited too. plus get $100 back when you buy an lg or moto phone. it's simple. easy. awesome. click, call or visit a store today.

shutdown, day 35 both sides start talking again, but still no deal as two votes in the senate fail hundreds of thousands of government workers miss another paycheck political crisis in venezuela. how much should the oil market worry about massive unrest in the opec nation. chips and coffee reaction to earnings reports from intel and starbucks. it is friday, january 25th, 2019 "squawk box" begins right now.

why is andrew still there then >> more interviews, i think. we're going to see maybe through the morning? >> i think so too. >> somebody has to pack up all the equipment. you know is it really all those times they do the health care conference and say, oh, everyone really -- the real stuff gets done three days beforehand no one sticks around we'll ask andrew about that. we will see him later this hour. steve was here he is directionor of institutional services and cnbc contributor, and i never get to see either of you guys >> u.s. equity futures at this hour is a positive tone to markets even though there's no real reason why. there is the dow