♪ i'm glad you came ♪ good morning welcome to worldwide exchange. what you are seeing here is an inside look live at the e.u. headquarters in brussels where european leaders just reset the time clock on brexit we'll take you there live. that's coming up, but, first, let's get up to speed on what's happening with the markets after yesterday's big rally for stocks futures right now indicating regular trading will open to the down side. again, futures indicating a down side move of about 100 points for the dow when it opens for regular trading. the s&p would be down by about ten points, and the nasdaq off by about 17. if these futures moves hold into

the opening bell. for right now the dollar index is up by a quarter of 1% as you can see over the course of the last week and a half or so, a slight down side move. un.1%. the shanghai composite up .1%, and the same move there in the south korean kos ppi translating here as well the german dax off by .5%. the cac and -- we are going to stick with europe.

e.u. leaders hitting the pause button on brexit for now prime minister of theresa may of the united kingdom has two more weeks to avoid a so-called no deal brexit. let's get out to willem marks with the latest developments what's the new date, willem? >> theresa may wanted an extension until the 30th of june that's the day before if you don't get it through next week, you need to come back to us or the british government of theresa may needs to come back to us and say what they do want instead and that would very likely lead to a much longer extension unless the u.k., for whatever reason, decided that a hard brexit was in order

here's how donald tuss, the man that shared the seven and a half hours of conversation last night, approximate ut it once those agreements had been struck >> the u.k. government will still have a choice of a deal, whole deal, a long extension, or revoking article 50. the 12th of april is a key date in terms of the u.k. deciding whether to hold yourp even parliament elections if it has not decided to do so by then, the option of a long extension will automatically become impossible.

what it means means is for theresa may -- no certainty she will get her deal through, but a huge amount of union nimty from european leaders here having come to this agreement and essentially having put this ultimate mate imto theresa may once again >> so willem, let's just clarify this they have until may 22nd if they can get parliament to agree to the deal that theresa may currently has on the table or some variation thereof, but if they cannot, then it's april 12th am i understanding that correctly? >> you are the question is if it's not passed next week, april 12th is once again a hard brexit deadline, but the u.k. could come back to the european council to these other 27 european heads of state. this is what we would like to try next what that next will look like no one i've spoken to here -- we just had a conversation with the l latvian minister none of them would know.

that would potentially be down to british lawmakers over the next week or so as they hold areas of votes that thief been promised by the government to figure out whether there is a parliamentary government and a way forward. >> thaut for the latest on brexit goldman sachs lowering expectations that u.k. prime minister theresa may's withdrawal plan will be approved by parliament before april 12th raising the odds of a no deal brexit yale professor and chief economist steven roche saying he beliefs the long-term viability of the european union is in doubt. >> you have to wonder about the future of the european union itself it was never an optimal currency zone as the theorists wanted it to be designed it's been subjected to a wide array of shocks from the sovereign debt crisis to the lingering problems in italy and now brexit

you how much can this political arrangement with stand >> let's bring in gutran what exactly do you think is next here? can we see a deal that parliament will agree to to avoid this no deal brexit scenario >> well, i think the choice is really not much different to what it was a week ago either this they agree to this deal or they really have to come back the u.k. house of commons has to come back to the e.u. before april 12th and say what they want now, if they want some long extension and that's the only thing that would be, then sort of acceptable, a long extension plus some sort of a prospect for a new deal, perhaps a new referendum i mean, all of this would mean they will have to hold european elections in the u.k. on may 23.

if we push the can down the road beyond next week, they have to basically agree to hold a european election, which is probably quite unpopular along parts of the tories, at least. >> all right so as we talk about the scena o scenarios that we could see, do you have a sense or do you think that in your opinion is there something that you think that the parliament would want to agree to it's not clear to number right now what the british lawmakers actually want out of a deal on brexit, and do you think that you understand what that is? >> no. i, frankly, think it's complete chaos in the u.s. -- in the u.k. house of commons, and frankly speak, hearing steven speaking on the euro, i think the real thing is on the u.k. side not the euro zone side it seems to me nobody in the house of commons knows how to -- and what they really want.

they can't agree on anything, and they have never really understood, i think up until now, that, you know, you cannot just decide yourself the future relation between the u.k. and the e.u. i mean, that always will involve, of course, the rest of the e.u., and the e.u. has to agree to a deal. so far there's one deal on the table that was negotiated between the british government and the e.u. now, if that deal doesn't pass, then it's all completely open. they could try to have a norway agreement or something like this i'm sure the e.u. might agree to this, or they could even revoke. i think revoking brexit at this stage would be hugely divisive, even more divisive than doing brexit for the u.k. government and for the u.k. as a whole. >> thank you for joining us. we appreciate it kate rogers has our headlines.

>> hey there new this morning indonesia is cancelling a major order for boeing 737 max planes. indonesia's international airline says it's calling off a nearly $5 billion deal for 49 boeing max 8 jets. garuda is the first airline to cancel its order following two deadly plane crashes within the last five months boeing shares are pretty much unchanged. nike reporting an earnings beat, but the stock is deep in the red this morning sales in north korea came in weaker than expected as fewer people bought converse branded stuff. >> china earned its 19th consecutive quarter of high quality double digit growth. as a chinese consumer increasingly makes sport a part of their daily lives >> nike shares are down about 4.5% a double win for the new york stock exchange reuters is reporting that both uber and pinterest will i list

their upcoming ipo's at the nyse cnbc asked stacy cunningham about those, and here's what she had to say >> we're excited about what's coming we're excited about levy's today and what's -- >> are you going to get uber >> you know i'm not going to answer questions about specific questions. >> you missed out on one of them it would be disappointing to miss out on two. >> when you look at the large companies that value the market model that we saw today, all those traders out there that swapped out their trading jackets for denim jackets today, they're what make this market model unique they take the time to find the right price. as a result, our stocks open and trade with less volatility, and we win the big ipo's >> cunningham wearing her denim jacket and referencing yesterday's blockbuster approximate o for levi strauss elan musk is out with a big call to action. musk is sending an e-mail to all tesla employees last night asking them to help deliver cars no matter their role this comes as tesla tries to

meet end of quarter delivery targets. tesla shares are slightly higher this morning dom, back to you >> kate rogers, thank you for those headlines. we are just getting things started here on the show coming up next, privacy problems facebook under fire again as more data drama unfolds. this time it's over your pass words. the details ahead. and life behind bars former wall street titan rajat gupta breaking his silence in his first tv interview since being convicted of insider trading. we'll bring u s mmtsyohicoen when worldwide exchanges returns after this

zbliefrmt readable format called

plain text facebook saying in a blog post yesterday there's no evidence so far that the pass words were visible to anyone outside of the company or that they were improperly accessed. facebook discovering the pass words were readable as part of a routine security review in january and adding it will notify users who were affected the incident was first reported by krebs yesterday he cited a source saying up to 600 million user pass words may have been exposed in some cases going back to 2012 under europe's privacy laws a company must store pass words securely and notify any authorities within breaches within 72 hours. irish data protection commission saying in a statement yesterday that facebook has been in contact with us and they've informed us of the issue we're currently seeking further information. facebook shares closed flat yesterday, and they're still up more than 20% so far this year despite some of the stumbles in its effort to refocus on privacy

and on security, but the bottom line here, dom, facebook isn't requiring users to change their pass words, but it might be a good idea to do so anyway. back to you. >> so, elizabeth, we kind of have a sense generally speaking of the kinds of regulatory or legislative issues that facebook is running into here in the united states. what exactly is the sense of what they are running into with european regulators, and is this just another big misstep on their part how do regulators view them given what happened yesterday? >> right this is another problem for facebook as it continues to try to get out of this idea that it isn't storing data securely, and some of the regulators that have taken the biggest steps, concrete steps, have been here in europe. the irish data commission is the one that sort of regulates facebook outside of europe under gdpr, which is this huge set of privacy rules that went into effect last year that requires companies to notify authorities of breaches and can carry some really big fines if companies

aren't compliant we've also seen individual countries like france and germany and here in the u.k. taking steps to try to regulate facebook out of concerns everything from their data privacy to how they have ad revenues, to how they share data without consent. we're seeing a general momentum here in favor of more regulation of facebook and other tech companies broadly speaking in europe >> all right complex situations for sure. elizabeth schultzy, thank you for that update on facebook. we've got a huge interview coming your way in the next hour andrew ross sorkin sits down with rajat gupta he is one of the biggest names on wall street to serve time for insider trading. in his first tv interview since being convicted, gupta tells andrew what life behind bars was like >> it wasn't -- i think i describe there -- i had a good time there i wouldn't wish it on anybody, but i had a good time.

you got a lot of time to yourself to reflect, to read and to develop new friends as i said in the book, i used to play a lot of games, cards, and scrabble and bridge and all that i got very fit you know, i would walk ten miles a day and did lots of pushups and exercises, and, you know, learned a very different -- and met people that i would never have met otherwise you know, i took copious notes i would interview my fellow prisoners for hours together and their stories. it's the most fascinating learning experience. >> well accident be sure to catch andrew's full can't miss interview with rajat gupta coming up next on "squawk box" in the next hour up next on the show, a biotech bomb one japanese company is feeling the fall-out from biogen's massive tumble we'll bring you that name.

that's coming up later on, a brewing beer battle why miller coors is suing anheuser-busch those details when worldwide exchange returns right after this plaque psoriasis can be relentless. tremfya® is for adults with moderate to severe plaque psoriasis. with tremfya®, you can get clearer. and stay clearer. in fact, most patients who saw 90% clearer skin at 28 weeks stayed clearer through 48 weeks. tremfya® works better than humira® at providing clearer skin... ...and more patients were symptom free with tremfya®.

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bund it's at 0% that's the lowest levels we've seen for the german ten-year bund since 2016. if you want to get technical, it's not negative yet. this on the heels of some pmi numbers. we'll bring you more details on those european markets right now the german dax off by .3%. the cac and france off almost a full percent the ftse off by .3% as well. well, let's get a check on some of the big stock moves of data i. shares of eisai tumbling in japan a day after the drugmaker and biogen said they would end a late stage trial for treatment for alzheimer's. the companies will start a phase three trial of another experimental alzheimer's drug. still, those shares down big deutsche bank expects revenues to be slightly higher thanks to improvement in its

corporate and investment banking business the company's annual report also says top executives received their first annual bonus in four years. those shares unchanged right now in european trading. game stop has named george sherman as its new ceo he replaces shane kim who has been interim ceo since michael mueller stepped down last may after just three months on the job. sherman has previously worked at best buy, target, and home depot, and game stop shares up 1% premarket well, let's get a check on the morning's other top headlines. nbc's francis riviera live in a new york newsroom with the latest good morning, and happy friday >> hey, happy friday back to you. we start with a federal disaster declaration that's been approved for nebraska freeing up funding to help recovery efforts after massive flooding hit the region. the cost of the damage is reportedly passed $1 billion in nebraska alone meanwhile, the national weather service's spring outlook comes with dire warnings of major flooding for the midwest more than 200 million americans are at risk.

25 states could see moderate flooding the white house says it has not given up on efforts to denuclearize north korea however, the treasury department has issued the first new sanctions since the hanoi summit going after two chinese shipping companies accused of helping north korea evade restrictions former president jimmy carter snented another major milestone, longest living president james earl carter jr. broke the record owned by the late george h.w. bush at 94 years at 172 days carter, the son of a georgia peanut farmer, was born during the presidency of calvin coolidge until 1924. five years before the depression well, his presidency routinely gets low marks despite several great achievements the 39th commander in chief has monitored elections, building countless homes with habitat for humanity, and writing over 30 boo

books. an extra special birth milestone for the president. still ahead, a deal delay. british prime minister theresa may will get one last lifeline as e.u. leaders put the brakes on brexit. we'll about go live to london. that's coming up plus, another plaque eye for boeing indonesia just canceled a major order for its 737 max planes more on that fall-out when worldwide exchange returns after this (danny) let me get this straight. after a long day of hard work... ...you have to do more work? (vo) automatically sort your expenses and save over 40 hours a month. (danny) every day you're nearly fried to a crisp, professionally! (vo) you earned it, we're here to make sure you get it. quickbooks. backing you.

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stroos we havele fall-out straight ahead kicking the can. european leaders hit the pause button on brexit we are live in brussels with the latest there the outrage of the day how a group of stranded commuters proved that america truly runs on dunkin'. we'll explain. it's friday, march 22nd, and you're watching wordwide exchange right here on cnbc. >> the bund just turned negative for the first time since 2016. now, this comes on the back of some weaker than expected manufacturing data out of the euro zone region that data showing germany's

manufacturing sector contracted for the third month in a row, and you can see there we are hovering just above positive, flattish for the ten-year bund yield. it's still very negative the five-year as well. we'll keep an eye on the german markets there. especially when it comes to their sovereign debt the trade there is negative. the cac in france about a full percent, and the ftse 100 in the u.k. down by .75%. let's get a check on what else is happening kate rogers is back with your executive recap. >> hi again, dom here's what's leading cnbc.com indonesia cancelling a major order for boeing 737 max planes. indonesia's national airline says it is calling off a nearly $5 billion deal for 49 boeing max 8 jets it's the first major airline to

cancel its boeing order following two deadly plane crashes within the past five months boeing shares right now are unchanged. a double win for the new york stock exchange reuters is reporting that both uber and pinterest will list their upcoming ipo's at the nyse uber was most recently valuing at $76 billion and is seeking a valuation as high as $120 billion. pinterest was valued at $12 billion at its last fundraising round. this comes as tesla tries to meet end of quarter delivery targets. tesla shares were a bit higher last time we checked just under a percent right now, dom. back to you. >> kate rogers, thanks for those headlines. also, topping headlines today, brexit e.u. leaders hitting the pause button on the u.k.'s exit from the european union british prime minister theresa may now has two more weeks to avoid a no deal brexit scenario.

after two years of negotiations for the european union. as i'm sure you know, dom, the british parliament twice refused to approve theresa may's deal. her government spent 18 months working on that with her yourp even counterparts. what that meant is that there was a hard brexit very imminently approaching something that a majority of british lawmakers did not want theresa may did not want european leaders here that she met with last night did not want what they've done is they've given her a little more breathing space if she can get that deal through third time lucky next week. she'll have until the 22nd of may in order to get through all the rest of the corresponding legislation required for the u.k. to exit the e.u. in what they call an orderly manner. if she does not get that through parliament next week, that deal,

then she'll have to either accept a no deal brexit april 12th, two weeks later, or she'll have to come back here or her successor, if she's no longer prime minister, will have to come back here and talk to the 27 european heads of state about what the u.k. would like to do next that could be a much longer extension. it could be a different form of brexit perhaps a softer version that is very unclear i've been asking heads of state about that, theresa may not willing to be drawn on that possibility. the challenge, once again, is trying to find a majority back in westminster to get the withdrawal agreement they've negotiated it successfully through parliament. >> willem, at this point prime minister may has been through the ringer more times than i can count. is there a sense right now i mean, she signed on specifically to try to guide britain through this brexit process, and she has found overwhelming resistance. what is the likelihood that prime minister may stays in office as prime minister in the coming months? >> well, the only real way she

wouldn't it's not going to be her own party getting rid of her because they can't do that again until december they tried and failed. if you remember a couple of months ago it could be that a majority in parliament votes against her in a motion of no confidence, but that majority would rely on some members of her own party trying to get rid of her own government, which doesn't happen very often the other alternative is she could, for whatever reason, resign, and she has hinted at the fact that if brexit went beyond the 30th of june, the date that she wanted this extension to last until, she would not remain as prime minister she's not said that explicitly she has hinted at that if she doesn't get a deal through next week, if she has to come back here cap in hand and beg for a longer extension, that might be finally the trigger that sees the end of her misery. >> all right willem, live in brussels thank you for that update on brexit new this morning, goldman sachs is raising the odds of a no deal brexit the big bank lowering its expectations that prime minister theresa may will get her withdrawal plan approved by parliament within the next two

weeks. we also heard some strong comments from former morgan stanley chief economist steven roche. he spoke with cnbc asia overnight, and said the entire future of the effect u. is in some serious doubt >> it's been subjected a wide array of shocks from the stor sovereign debt crisis to the lingering problems in italy and now brexit how much can this political arrangement with stand in terms of the pressures on the very fabric of this economic union? >> joining us is dan kemp from morning star investment management dan, as we talk about stephen roach's comments, if there is a doubt about the european union and its future, how exactly are investors reacting to every tick

and headline that happens with brexit in the u.k. >> that's really dangerous for investors because it leads us to focus on the short-term rather than really focus where we should be on long-term and fair values when we look at the long-term, i think we get a different picture from the day to day news that's come out of brussels or indeed out of the u.k. parliament >> so is this just noise then. i mean, short-term we talk about the importance of brexit both to the u.k. economy and the e.u. economy should we just be looking beyond this because in the longer term things should be constructive for both the u.k. and europe

no that's not to say it's going to have a big impact on u.k. equities we have to remember that the majority of revenues for large listed u.k. companies where most people invested are from outside the u.k. although people tend to express their fears and their doubts through the u.k. stock market all through the bond market or the currency market, in reality actually the u.k. stock market may be less affected over the long-term by brexit than the economy. >> so we've been focussing a lot on this idea that if there is a no deal brexit scenario or even maybe over the medium term, that the pound weakens because of these developments we've seen positive reactions to u.k. multi-nationals within the ftse 100 because of the weaker pound. does that mean this could be good for some of the larger british companies out there? >> as sterling weakens, then often we're seeing a bump up in the price of large u.k.

companies. again, as long-term valuation driven investors, we would want to look through that over the long-term and look at the fundamentals of earnings of the companies, and that's why it's so important to try and separate that short-term noise that's coming from all the news flow into longer term impacts of brexit we see a less of an impact for the large u.k. companies that maybe is being priced into markets at the moment. >> that's the western side of the english channel. let's go to the other side we got some data out of the e.u. not as good as expected. german bunds on the ten-year side trading just about flat tick slightly negative for a moment there what exactly do we feel about the yurp even markets now given this idea that the growth is slowing down globally? >> i think that's an important story we're seeing defensive assets like bonds are getting much more expensive, and

they were already at fairly expensive levels, but as people are looking at the latest economic data, they're pricing in quite a lot of bad news. >> the challenge for investors is tro to find a good value defensive asset, and so far we look at the bund, we look at the u.k. gilt, they don't look like they provide us safety that maybe investors will be looking for because they're so expensive. >> all right dan kemp, huge move in rates for sure thank you very much for those thoughts on the markets overall. well, breaking his silence former wall street titan rajat gupta sitting down with andrew ross sorkin in his first tv interview since being convicted of insider trading gupta tells andrew about his biggest regret during that

trial. >> i was going to testify, and in the very end they wore me down and convinced me i shouldn't, and to me it was a personal failure >> all right be sure to catch andrew's can't miss interview with rajat gupta. that's coming up next hour on "squawk box. well, coming up next on the show, a sneaker slipup nike beat on earnings, but its stock is deeply in the red we're going to break down why. plus, running late on dunkin'? how a group of commuters missed their train and the operator is blaming their local morning donut maker. that viral story when worldwide chgeetnsft ts. for your heart...

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prevagen has been shown in clinical trials to improve short-term memory. prevagen. healthier brain. better life. it is 5:43 p.m. out in hopping kong where the hang seng, the main bench mark index there, closed up .1% generally positive markets throughout the course of the asian trade in today's trading also, check out what's happening right now with the dow jones because we are indicated to open down by about 100 points if the futures losses hold into the opening bell for regular trading, the s&p 500 would lower by about ten points, and the nasdaq would open down by about 17 points. also, checking out what's happening right now with european markets because we did, like we said earlier this hour, make a move on the ten-year bund

yield in germany right now we are trading just for all intents and purposes, it's flat. 0.001% is the yield on ten-year government bonds in germany. they did tick slightly negative intraday this is the lowest level that we have seen in ten-year german government debt since 2016 we'll keep an eye on the european markets as well they are fractionally in the red. well, still ahead on the show, time to ride the rally the dow snapping its losing streak, but can the positivity roll on as we head into the weekend? your friday market rundown is coming up. first, a big beer battle brewing. try saying that five times fast. it's miller coors versus anheuser-busch a look behind the lawsuit that has everyone buzzing when we come back on worldwide exchae cc ghafr isng move to the enterprise-grade cloud that's built to handle all your apps. ♪ ♪ the ibm cloud.

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a beautiful every beautiful sight there. yes, the ice rink is still up on this rainy friday morning. well, time for the morning's top trending stories kate rogers back with those. kate, what should we be talking about this morning >> i've got a few for you. good morning, and happy friday >> the beer battle that began with this bud light ad continues. >> this corn syrup was just delivered. >> that's not ours we don't brew bud light with corn syrup >> miller light uses corn syrup. >> miller coors isn't taking that shot lying down they're suing anheuser-busch for the false and misleading ads campaign miller coors is asking a federal court to stop the bud light ads and to force anheuser-busch to launch a new campaign to correct the record, but bud light also isn't backing down saying its campaign is completely truthful. it's just interesting. these are always tongue-in-cheek, in good fun >> bud light put out another ad in response to miller coors sayi

saying. >> america really does run on dunkin', but what if dunkin' is running late new jersey transit was under fire yesterday as early morning commuters missed their trains at hamilton station nj transit blamed dunkin' donuts, tweeting to an angry commuter dunkin' donuts is responsible for opening the doors in the morning at hamilton station. njt has spoken to the vendor multiple times when customers wondered why a donut shop was responsible for such a key part of the train station operation, nj transit didn't have any answers. i mean, the service is a little so-so on nj transit to begin with it looks like they should be the ones opening the doors, no >> i just want to say this story resonates with me not because i live in new jersey folks know i live in connecticut. i go to that hamilton junction train station quite often when i take the train because i have family in central jersey in that

part of the area, and i know exactly what dunkin' donuts they're talking about, but it's very odd to me that a metropolitan or municipally-oriented kind of operation would rely on a vendor to open the doors. >> it seems short-sighted. i wonder if things will change on that one, too this next story is kind of a big deal will ferrell bringing back the legendary role of ron burgundy last night to call a sharks-kings hockey game >> you don't mind if i bite into this burrito right now, do you >> this is amazing >> a huge l.a. sports fan, ferrell stayed in character for his entire stint in the broadcast booth. the kings did get a win for their celebrity super fan outscoring the sharks 4-2. i love will ferrell, and i love anchorman, and i love that he stayed in character the whole time what a treat for everybody, right? >> thank you so much for that update and all those trending stories. shares of nike in the red this morning the sneaker maker manages to beat earnings, but sales came in -- nike says that's thanks in

part to fewer people buying converse branded merchandise >> president at sw retail advisors she's a cnbc contribute or stacy, what went wrong for nike? >> yeah, dom i think, you know, first of all, nike hit an all-time high last week, so you go into earnings with that. of course, north america was up 7% that was a little disappointing particularly where the stock is, and decelerated a little bit if you look at europe, it was still up double digits, and meanwhile, adidas was down 6%. it shows you the market share that they're gaining of course, you throw in china that was up 24%, but i think also, you know, if you look at the guidance, it was for revenue up mid single digits, and i think the street just kind of went, eh, you know, we were looking for a little bitmore upside at an all-time high >> so we've talked a lot about the idea that kind of the retro feel and look for companies like adidas and nike and puma have been driving some of the sales

is there a sense right now that maybe that trend has peaked out a little bit >> so it's so interesting. over the last four years, particularly in europe, you have seen all these retro brands. fila, ls, there's a whole long list of them that have taken shelf space away from adidas and nike i feel like particularly starting in europe that's shifting a little bit, and certainly nike has pushed back to the forefront, and that's really because i think consumers are coming back to really technical brands and athletic brands that are authentic and also that are engaging them, and i think that's part of the reemergence here of nike, not to mention the fact that their product just looks outstanding >> if it's more technically oriented, does that favor perhaps brands like nike's front, but what about underarmour. that's a brand that we think of being from the technical standpoint as well >> absolutely.

i think under armour's issues are a bit different. they obviously went downstream and were certainly over inventoried in the channel, and they are going very much through a clean-up process you know, nike has really been able to hold the brand in a premium status, and also nike certainly has really cleaned up their wholesale channel. if you go into a footlocker, they're no longer promoting and giving all the product away. the fixtures are better. the marketing is better. i think, you know, nike just continues to pull out front not only with innovation, but also with the relationships in the wholesale channel. >> who was your frontrunner in this industry? no pun intended. >> oh, well, i would say nike 100% again, the stock is giving back a bit today because, you know, certainly an all-time high with guidance that was sort of less than inspiring. i think if you look forward, they have certainly guided to the fact that they will start to see leverage again on the cost front. i think investors will welcome that when it happens

i think the margin stories are very much intact, and the product story looks better than it ever has. zoo stacy live with that look on nike thank you so much for joining us this morning >> gooed to see you, dom >> let's get you up to speed on what's happening with the broader markets overall. futures in the red following yesterday's big rally. the dow pointing to a triple digit drop if the futures losses hold into the opening bell, and we're keeping a close eye on what's happening with europe the german ten-year bund posting a negative yield for the first time since 2016. we're hovering just about flat right now. danielle, we have you here for a very specific reason >> oh, dear. >> it is because we have heard from a multitude of voices over the course of the says past week about how constructive and positive things are in the economy in certain places and the marketplace, but that is not your take. you feel a little bit less optimistic than others tell us what's driving that and do these european numbers today

play out in your thesis? >> i think they do, and i think the fed's new stance, which is so much more dovish than even the market was anticipating. the fact that we've got the ten-year trading at 249 this morning. that is, by the way, three basis points away from the yield of the three-month. why is that important? because all of wall street's sell side firms, all of their recession models, that is the spread that they use they don't use the two-year treasury i to the ten-year they're going to have to increase their recession odds in about three basis points more of flattening between those two, and i think that that is starting to play out just in what we just heard about nike. the weakness wasn't from -- this wasn't global weakness this was weakness here in north america. i think we're starting to see some of the same -- look, we have mortgage rates at more than a year low, and we're not seeing a response in residential real estate that's not how this is supposed to play out. >> what's driving that

you mentioned this idea that we're getting closer to an inversion in the yield curve what exactly are the main driving forces behind that >> i think people need to understand something about wage inflation. the reason that wage inflation is the most lagging of all economic indicators, which jay powell knows full well, towards the end of cycles, as managers start to lay off employees, right? people are so focused on fedex and missing because of the international and the global weakness i was focused on the fact that they had voluntarily layoffs layoffs are up seven months in a row year-over-year what we're seeing is managers are beginning to fire the workers underneath them. if you have people on higher salaries in the wage pool and fewer on lower incomes, it's going to naturally skew wage inflation up for all of the excitement in the last labor report, i say you have to fade that because what's much more telling is the fact that we had initial jobless

claims trough in september and weave seen them slowly but surely tick up >> does the fed have it right? >> i think the fed is trying to desperately avoid a 1937 remake. i really do. i think jay powell understands his history. he understood that maybe the december hike was more than the economy could take i think he is -- the reason he is swinging the pendulum so far back over, which basically it's taking 2018 and 2019 all the -- all the statements from 2018 have been taken off the table. the fed has broadcast that we're going into recession

that's it for worldwide exchange a lot is happening in the marketplace, including negative yields on german ten-year bunds. "squawk box" comes up next have a nice weekend. yeah, i'm afraid so. it's okay. this is what we've been planning for. knowing what's important to you is why 7 million investors work with edward jones.

>> brexit delay. the e.u. giving theresa may more time to come up with a deal. and speaking of more, boeing 737 max fall-out is continuing indonesia's national airline wants to cancel now a huge order. nike beats the street, but there are some concerns about north american sales and that is hurting the stock of the dow components this morning. it's march 22nd, 2019, and "squawk box" begins right now.

>> wilbur frost, the news is from him and brexit. >> this song has far too much flare. >> kind of catchy, though. >> we'll hear that today >> we will a little later today let's take a look at the u.s. equity futures at this hour. you are going to see that right now it looks like things are under a little bit of pressure dow futures down by over 107 points s&p futures indicated down by over ten points, and the nasdaq indicated off by 13 points this all comes after a big day of gains for the markets yesterday, though, with the dow up by 216 points, and the s&p up by about 30 points that gave the major averages a boost too. take a look, though,