. it is 5:00 a.m. in boston and here's your top 5 at 5 it is decision day, waiting on the fed's final rate call of the year futures they're flat to maybe a little higher sam bankman-fried behind bars in the bahamas, the judge there denying him bail and deeming him a flight risk. $300 billion under management and bearish as ever a "worldwide exchange" exclusive. plus, tracking the tesla stock selloff as investors pressure elon musk, gains

momentum. another day, another zero covid policy rollback in china what beijing is doing now that could set the tone for a complete reversal in the year ahead. all happening on this wednesday, december 14th, and this is "worldwide exchange. well, good morning, good afternoon, or good evening, and as always, welcome from wherever in the world you're watching i'm brian sullivan thanks for joining us on this wednesday. let's check on the markets and your money we're seeing dow futures up a little bit dow up 75% that would be a lot. 75% gain retire now, buy a solid gold yacht. everything's fine. they're up 75 points there we go. this after yesterday's modest gains, and they were modest despite, by the way, the huge initial pop.

i mean were you old enough to remember that? yesterday the inflation data came out, futures roared, stocks roared, the dow was up something like 900 and then it quickly came back down to earth, and right now the dow futures are indicating a gain of 75 points the bond market yields, just a smidge under 3.9%. by the way, this is interesting. new numbers out of the iea shows liquid production is almost back to prewar levels at least it was just before the full sanctions kicked in, which might explain why oil has been soft as of late. a bunch of russian oil hitting the market right ahead of those sanctions. the price of wti crude is at $75.74 now, bitcoin has not been soft bitcoin is actually back to its

highest level in more than a month and is nearly back to 18,000 despite everything else that has been going on. all right. now let us go worldwide and get a check on the early trade in europe and some signs there that soaring consumer prices may be slowing just a bit in the uk arabile gumede is standing by in our london newsroom with a little bit of good inflation news arabile, take it away. >> yeah, brian good morning to you. look, certainly that inflation print will be the key perspective to take a look at, right? it is, indeed, decision day out in the u.s we expect decision day as well in england tomorrow. the bank of england is set to make their interest rate decision there and it will follow on from today's inflation number, 10.7% is the mark for the month of november it is better than the 10.9% that was expected, and it, of course, drops off from the 11% we saw, which was the highest in 41

years. so, yes, positive, but still double digit numbers for inflation. not necessarily easing off as the bank of england would necessarily like, and that perhaps still means that outlook for interest rates may still be a little bit high. so you are seeing right across this european market picture, we are also expecting the european central bank to come out with a desoifgs their own with regards to interest rates. bond purchases will be the key factor to be looked at there as quantitative tightening becomes a discussion point whether they set out a path that looks out on their front will be quite interesting, too, as that is set to happen to the north bank as well as the swiss national bank also set to come out with interest rates decision for now, following the print, we're back in the red. >> a lot of red on the screen behind you, arabile. we appreciate that.

let's step out of the markets this morning and get to the top story this morning and the latest around sam bankman-fried and the ftx saga silvana henao is here with that good morning. >> good morning to you sam bankman-fried remains behind bars in the bahamas this morning after the magistrate dwroefr seeing his case there denied a petition by bankman-fried's legal team to set bail at $250,000 now, the court called the disgraced ftx founder a, quote, great flight risk, ordering him to remain in custody until at least february 8th this comes after u.s. authorities officially charged bankman-fried with eight counts including conspiracy to commit wire fraud on customers and lenlers, money laundering, and violation of campaign finance laws when asked if more charges against other ftx players are possible, the lawyer in new york says his team is not done yesterday. bankman-fried faces decades in prison if convicted.

as bankman-fried's future hanks in the balance, so, too, does ftx. the firm's new ceo slamming the company's look of oversight and lack of controls in the front of the house financial services committee. >> this is really old-fashioned embezzlement this is just taking money from customers and using it for your own purpose. not sew firsty indicated at all. sophisticated perhaps in the way that they were able to sort of hide it from people. frankly, right in front of their eyes but this isn't, you know, sophisticated whatsoever this is just plain old embezzlement. >> brian, it's day two of the hearings, and they will be taking play place in front of the senate bank committing tee today. >> yeah. those are quite the hearings. >> yep. >> maybe having more fireworks on capitol hill today.

silvana, we'll see you again. >> we'll keep an eye on it. >> all right. right now let's get back to narths and your money. the fed making its latest rate call at 2:00 p.m. eastern time today. the big murn is on one half of a 1% rate hike, although, 0.75% is not off the table. let's talk about that and what else matters to your portfolio heading into the new year. joining us is the vice president at federated investors all right, linda, it's fed day we're likely to get 0.75% or half of a percent rate increase. for you and your clients, does that extra quarter percent matter that much i mean if we get 75 basis points, do you sell everything, go get the shotgun, and run out to the barn? how do things look based on the different outcomes >> right

you're absolutely right, brian 50 or 75 does gnat not really m difference at this point in time i think what we're concentrating on is how far and how fast that inflation number is going to fall in 2023 and how committed the fed is to have that 2% target and wages really play a big part in this, and the strength of labor market in 2023 together with potential china reopening and also, you know, volatility that you just mentioned around energy earlier on in the segment. so i think all of those things put together means there's not going to be a straight line for inflation, which means that today's number or whatever the fed wants to announce, 50 basis points, 75, really doesn't make that much of a difference right now. investors should be positioning for 2023 >> yeah. that's it.

i mean i don't want to throw water on our fed coverage, of course what they actually do may mean a little bit less. all right. so we're focused as you said, linda, on 2023 it's hard to believe it's already here, my gosh. that said, what are we focused on what are the key things that we need to be watching? >> sure. for federated hermes we expect it to fall we do expect earnings to start to fall, really to get driven by margins coming down. energy and tech are probably not going to be contributors to the earnings number. in addition, volatility is going to be the name of the game in 2023 the pace of economic growth, inflation, china, they're all

going to create volatility and what we're really facing is a slowdown in the economy. we just don't know how fast and how -- if it's going to be a soft landing or a rocky landing, and hence i think having a portfolio to have cash to take advantage of the opportunities as they arise probably, you know, in the first half of next year and also tilt more toward value dividend sectors of the economy. we'd like pharmaceuticals, for example. we do think pharma and health care is an all-weather-type portfolio. you've been covering energy extensively. energy prices are probably going to, you know, move higher if we have a soft landing and china reopens. it's going to put pressure on energy prices again and we like materials on the back of that as well. >> full china reopening could add 2.5 to 3 million barrels a day of oil demand.

of course, we'll see what happens. they've reversed course before linda bakhshian, we always appreciate having you on thanks for getting up early. we will see you soon have a great day. >> thank you. we are just getting started on this business wednesday when we come back, dipping our toes into the water. what retail investors are saying about stocks heading into the new year. and from retail to institutional, why pension fund giant calstrs is worried about the marked we'll going to hear from christopher ailman and why tesla's rough ride may not get any better any time soon we'll talk about all that and more stock futures are up we're glad you're up and we're back right after this.

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we'd probably get a good sense of where we're headed. investopedia has done just that.

caleb joins us now you're kind of like the google of the stockmarket everybody lies in public, but when they search, you know exactly what they're looking for. so from a markets perspective, what are people looking for right now? what are they most worried about right now? >> good to be with you, brian. we've been surveying people before the pandemic, but we look at things they're confused about in the markets or if they're trying to make a decision. in our latest survey which wrapped up last week, we found that 20% are very worried about their investments. down 9% in december. a 20% rally and the dow will help everything a little bit 20%, very worried. 26% said they were expecting a drop 106% or more by february. that's even down 20% 18% from when we polled them back in september. 19% are expecting gains of 5% or

more so you have a mix of both feeling like they're going to fall further, but a very small brave crowd thinking we're going to have 5% or more gains in the next six months. >> all right so go back to your first point one in five of your surveyors -- of those surveyed say they are, quote, very worried, but that's actually less than it was. so the trend -- the numbers are still bad, caleb, but the trend seems more positive. >> yeah, yeah. they're warming up to the markets, and this is over the last month or so they started to get a little more incomfortable with investing again, started buying stocks again, index funds, and also putting money into safer places too so while they're worried, they want to put money to work, but they realize there finally is an alternative. they saw them buy more cds, more money markets, and favor the blue chip stocks again what are they worried about? they're worried an recession a lot of them are making safer

investments. only 10% say they're making riskier in vestments bit down was not on that list in the latest round 55%, a little more than half, expecting a recession next year, and the recession is the biggest concern they have going into 2023 it used to be inflation. it used to be rising interest rates by the fed now it's a pure recession that most of them are worried about but they have walls all around them and they've been worried about recession, inflation, fed rates, but the concerns, brian, are starting to ease a little bit. >> they are, but, again, going back, these data points you got from your survey, caleb, people are still bearish. to your point, it's -- maybe they're a little bess bearish, but nobody -- or that small brave group, i guess, as you called them is expecting gains

we've been doing this a long time when everyone is negative, maybe that's a positive. >> the more people that are scared, the more contrarian. bank of america's fund manager, same thing when people are most scared thash's when things tend to turn around a little bit. not to say that's going to happen this time but people are scared. back in the fall in the depths of the bear market, people were scared to put money back in. week after week they're starting to put back in obviously a big day for investors, maybe the biggest day of the year. we're looking at what they've been looking for, searching for to your earlier point. we finally had the investopedia numbers. are you ready? >> give me your top ones the poison pill? what >> poison pill you can thank elon musk for at

least one or two of these. the poison pill when he put out that 5$54.20 bid expect that to be huge next year hostile takeover thank you again, elon musk, cold storage. thank you sam bankman-fried and ft xcellous. bear market, crypto has been a big word the fed funds, nobody knows about this until they have to. we're going to final out a lot about that today the others are fascinating capitulation, never quite got it gilts, we got that from the uk government that shows you where investors' mind-set was throughout the tumultuous year of 2022. >> caleb, i can't -- i understand -- poison pill number one? well, at least, caleb, we've got gilts in there that's going to be my wordle

starting word. i'll let you know how it goes. caleb silver, great to see you, my man thank you very much. >> thank you. all right. don't start with gilts start with xerox it works every day, trust me. on deck, our relationship with china growing worse as trade tensions continue to rise. we'll tell you about it coming up next right here on w.e.x. dow futures up a touch we're back right after this. let's be honest. the rent-a-car industry is the definition of boring. and the reason can be found in the name itself. rent - a - car? you don't want a friend. you want the friend. you don't want a job. you want the job. the is always over a. that's why we don't offer a car. we offer the car. ( ♪♪ ) sixt. rent the car.

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joo welcome, welcome back. let's take a look at shares of tesla. it's not pretty. shares down 30% only since october 27th that's the day elon musk closed on his twitter deal and appointed himself chief twit it prompted one of the largest company retail shareholders to call for the company's board to, quote, perform shock therapy to resuscitate stock price by way of a major share buyback tesla's selloff hitting musk's bottom line. he's no longer the world's wealthiest person. the world east wealthiest person is now bernard arnault that's right the world's wealthiest person is a european

let's take a view of tesla's stock. looking at that, it's even worse. this could, i guess, count as your rbi, but it's not we have another one coming up. according to the folks at compound research, since its last peak in november, tesla's shares are down more than 60%, and that is the stock's biggest drawdown to date, even bigger than the 28-day selloff it saw in the early days of the pandemic needless to say it's been a rough run for tesla. all right. let's step outside of the stockmarket for a moment and get a check on some of this morning's other key headlines including some really nasty weather across a large part of america. phillip mena is to blame and he's in new york with the latest good morning. >> heying brian, good morning. i don't know if i'm to blame, but we do begin this morning with that deadly winter storm system now marching east blizzard-like conditions have plagued the plains and the

midwest. in the south, deadly toernltss tore through multiple states, levels homes and damaged businesses in keithville, louisiana, one child is dead and a mother missing after a tonight struck the town there are multiple injuries across the state due to severe weather. in texas at least five people were injured after a tornado swept through the dallas-fort worth area. today marks ten years since the deadliest elementary school in u.s. history. one decade ago 26 lives were lost at sandy hook including 20 first graders. schools will be closed today in newtown, connecticut memorial plans are planned to honor the victims. finally a milestone in the sports world alex ovechkin scored the 800th goal of his career after putting off a hat trick in the victory over the blackhawks. he's the third player in nhl history to hit that achooevment

behind wayne gretzky and gordy h howe those are legendary names. >> great to see. phillip, take care. all right. coming up, it is your morning rbi. we'll get random but interesting on what we can see for the markets next year and what some big-time investors really think might be in store. it could surprise you. stk mbs mi ue nuercongp. icaround i was having challenges with my old bank. lots of red flags. yellow ones, too. fees, penalties... unnecessary fees! ...playing dirty. so i broke up with bad banking and moved on with sofi checking and savings. now, i earn higher interest on all my money, and pay no account fees. feels good to get my money right. banker disqualified! [announcer] break up with bad banking. get up to 3.25% interest, and earn up to $250 when you set up direct deposit. what if you were a major transit system with billions of passengers taking millions of trips every year?

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happy fed bank the central banks set to raise rates again. what does it mean for your stocks and your money? we've got the an core vision with the cio of calstrs. >> no bail for the scammer behind bars as they're calling it one of the biggest financial frauds in american history. and shutdown averted congress may have a deal to keep the lights on in dc. it is wednesday, december 14th this is "worldwide exchange. ♪ welcome and welcome back, everybody. hope you're having a great start to your wednesday. thank you very much. i'm brian sullivan let's get right to it. stock future, this time yesterday, they were up a little bit like they are now. the softer inflation -- remember

inflation is not coming down the rate of increases is coming down there's an important distinction there to remember. prices still high. either way, stockmarkets were set to rorkt dow futures down 900 points, opened up soaring and came back down to earth. quite the reversal more than 2% dow futures up about 80 points right now. we'll get more on the markets in just a moment. for now, though, let's get a little more macro, and it is time for nearly $300 billion worth of advice. the california state teers retirement system known as calstrs is known as one of the biggest pension funds in the world and it's the largest pension fund in the world. as of october 31st, it manages about $298 million it was a big holder of stocks, apple, j&j, exxon moe bowl

we began by asking a very simple question are you bullish or bearish on stocks >> brian, i've got to say i'm bearish. everybody is predicting a recession. while it feels like everybody's going to be wrong, all the statistics we have, our internal gauges are all pointing straight down they're all red. it looks like it's going to be a tough year the second half of the yearing i don't know but the begins of 2023, i think you've got to be defensive for sure. >> so you don't believe then that a recession or a slight lee session, whatever it may be, a slowdown, whatever you want to call it, has already been priced into the american stockmarket. >> no, i don't believe it has. i mean we have adjusted to what i consider climbing interest rates. it's good to see inflation slow, but, goodness, 6% on an annual

basis is still a very fast pace. much higher than the fed wants which means they're going to raise rates. obviously everybody is looking into 2023 and waiting for that word "pause. i don't think they should. i don't think they will. they're data-dependent the data shows we have a steady inflation. and i think that the markets have been having these nice little bear market rallies, but we're overbought in this condition, and i think that the market's going to sell off as we get into '23. >> wow you sounded kind of like -- obviously you're super long, buy and hold investor. but, you know, you watch the markets every day. i'm sure you have. to you see about $300 million in teachers and educators' money. you're a good shepherd of that i know you're not a day-to-day guy, chris they were ripped on tuesday only to come back down to earth

is that kind of what you're talking about, that the overall rallies may be a little more negative >> even long term. if you look at how the markets tr traded, which is june 30th we're actually up on the fiscal year so far. i told the board i don't think that's going to hold corporate earnings have got to be hurt by the higher interest rates. we're going to see more squeezes as we get into 2023. the rates are going up very rapidly, and i think they're going to continue to climb so it's going to put pressure on balance sheets we're already hearing about -- the labor market is in a very strange position where small businesses can't find workers, but the tech businesses are laying off and other people are cutting back so everybody thinks it's a recession. the question is what's the adjective in front of that is it going to be mild or severe that's tough to predict at this point. >> it might, to your point, chris, it might ultimately be regional

we might have a regional recession somewhere and more mild elsewhere we've seen it in the past, particularly with housing. your job is to grow, but more importantly protect the assets of your educator partners at calstrs. so if we're looking at a pretty tough year for equities, maybe a tough year for bonds -- give us your view -- probably a tough year for real estate and private equity, how do you protect those assets in what could be a tough year for a lot of things. >> brian, you hit it on the head fwhumer one, we're long term, so we put our eggs in multiple baskets. you may be right if it's stagflation, then it's going to be bad for almost every asset class. but so far private equity has held in there. real estate hasn't transacted. obviously real estate should have some price compression, but we really haven't seen it. people that want to pull their money out, there's not enough buyers around to pick up the

properties, and prices haven't readjusted so we're going to diversify the portfolio. we're defensive. you're right we don't try to time this market, but we can leave it aggressive or defensive, depending on our outlook, and we're going to be another asset that pays cash flow. that's going to be the key in 2023, dividends and nice steady cash flow. >> where do you find those public equities? because i do know you're under 5% in your allocation equities. >> that's what i mean about being defensive in this kind of market you're finding it. you're seeing investors going into debt. retailers can't go there that's really a change we saw after '08 due to banks getting out of that business there's still infrastructure investments, and we have many that have a nice steady cash flow in them i think there are going to be opportunities. as brow brought up fixed income,

fixed income has had a tough 2022 rates are going to go higher, but you're already starting to see. if you can be a buy and hold investor in fixed income, you're seeing a nice return on your assets. >> when you speak fixed income, are you speaking medium and long-term equities or more corporate debt >> i'm worried about sovereign debt the u.s. is set up for another problem in washington where they'll probably use the debt ceiling as a bargaining chip that's never good for sovereign credits in the u.s. and around the world, but i think in some good corporate names, i think there's opportunity. as i said, some of the asset-backed areas, things we think of as infrastructure leases and steady payments provide opportunities. but you've got to do your homework this is a time period where people are really going to struggle as rates go higher and not be able to meet their debt service. the key is doing your credit.

>> i want to ask you one quick final question if you have to own it do you stick with apple, microsoft, j and j, and dare i say some of the bill oil companies of the world? >> we don't buy the industries we buy the whole market. so i think the usa, of all the global markets, the usa is in better shape there are parts of europe that might be interesting, but europe as a whole, the eu is going to suffer the uk is kind of a mess right now. asia, i can't say they're going to have any economic growth. good companies, but very slow growth it's very tough around the world. emerging markets are cheap they've been cheap for two years. so within the equity framework, it's really tough to find anything that's super attractive right now. but i think blue chips in the u.s. and blue chips global companies are going to continue to at least hold their value and be worthwhile, and that's being

defensive in this kind of a market. >> all right there you go chris ailman of calstrs saying a recession is likely coming next year he's bearish he is worried about the markets. our big thanks to chris ailman for that. let's get a check on this morning's other key headlines you need to know about including congress may be once again avoiding a potential shutdown. silvana henao is back with that. >> maybe, right? negotiators have announced -- it's a rough agreement on a full-year government funding package. the lawmakers did not reveal how much money they had agreed on. republican senator richard shelby said he and his fellow negotiators should be able to finish the package by next friday the news came hours after the house began moving a stopgap spending bill to avoid a partial shupdown that would have began this friday. rupert murdoch is expected

to testify next week in a defamation la suit against fox news the chairman will be questioned tuesday. dominion is seeking more than $1 billion over allegations fox news and its on-air personalities fueled false claims the company engaged voter fraud that rigged the 2020 election. and the biden administration is reportedly set to putti a company on the black list. meanwhile huawei and other companies would be restricted of accessing u.s. banks, accusing them of espionage against the u.s., brian. >> big stuff there they continue to clash

silvana henao, thank you very much. >> you've got it, brian. a big develop about story around ft kpe. a judge in the bahamas holding sam bankman-fried without bail until february the lawyers in new york outlined their criminal case against him. joining us now is our tech reporter mackenzie segal lis let's talk about bankman-fried he's sitting in the bahamas. how long is it for him >> it was a tough day for sam bankman-fried. not much is expected to happen until february 8th, which is the next date of his hearing unless bankman-fried agrees to be extradited, essentially waiving his righting here, which

his lawyers say he is not going to do, it could be a while until the ex-ceo of ftx is back on u.s. soil. one legal expert tells me he could put this off for months if not years. he has his parents, both stanford law professors literally by his side for this they were in the courtroom yesterday, apparently pretty animated at times. this is all happening as the justice department sealed the eight counts against him including conspiracy to commit wire fraud on customers and lenders, money laundering, and violations of campaign laws. you have both the securities and exchange commission and the others charging him. not the best day for sbf, brian. >> yeah. it's not the best year certainly for his investors. what is next for this fraud case is there anybody else that may get caught in the crosshairs

and i'm looking at you. >> right when the prosecutors outlined their criminal case against bankman-fried on tuesday, they made it clear, their pursuit of other potentially involved parties linked to the ftx collapse is not over when asked in they'll charge others, the u.s. attorney for the southern district told the press conference, we're not done remember bankman-frieds with charged with several conspiracy caughts. hard to justify if he was working alone. it's been a big team effort between them all, but it's really sdny that's in the driver's seat because they have the access and the ability to use the grand jury, and that's key because it givens them the chance to hold proceedings secretly i'm hearing the ongoing pieces of the investigation will remain outside the public's view. former prosecutor tl me there may be some koops with former

ftx employees, which is why things have been moving along so quickly. >> yeah, a bit hard to conspire with yourself. i'm just saying if they have conspiracy, that means -- you did it, yes, i didding good for you. anyway, there are other people they're clearly looking at. all right, it's another day of congressional testimony we get to hear how little most members of congress know about crypto that aside, what el are we looking at later today, mackenzie? >> today it's the senate's turn and the knock-on effects for the consumer the banking committee meets at 10:00 a.m. on the east coast we'll hear from a few professors and the actor and author, ben mac kenzie he's also on the list. he described the scandal worse than what he saw at enron when it collapsed 20 years ago. >> there was no corporate

controls, no oversight, no independent board, and the owners of the business, the senior management had virtual control of the accounts of them and couldn't move money around it's as they desired undetected by customers so, you know, to the extent there were rules and very few, obviously they were made to be broken. >> ray pointed to the fact this crime had not much to do with crypto at the end of the day he said it was an example among other things we'll wait to hear to see if we get new information from some of the other withins. >> i still would like to hear from members of congress when they took the money from ftx, when they will be giving it back it's amazing how many have gone silent on that topic it's shocking. mackenzie sigalos, thanks. >> thanks, brian. coming up, how big investors really think the market is going to do next year. and you may want to sit down for

it that is next as an independent financial advisor, i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

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this is ge vernova, helping generate and move the energy that our world needs. this is ge aerospace, advancing flight for future generations. this is the next generation of ge. if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started. then work with professionals to assist your business with its forms and submit the application. go to getrefunds.com to learn more. it's time for your morning rbi. today let's dive into the stockmarket and expectations for next year because it is the time of the year where all the big banks start to put out their price targets for the year ahead. strategists have to go on the record and face being wrong or right. by the waying all of them, all

of them were wrong about this year, every single one that is the topic for another day. right now let's talk about what investors are saying off the record because deutsche bank put out their big annual survey of how their clients really believe the markets will do over the next year, and this one is much more naughty than it is nice all right. so what are we looking at here these columns, there you go, they represent what percentage of respondents think will happen with the s&p 500 the lower line goes to a negative return all the way to minus 30% to the far left to a big gain of the s&p on your far right. can see the majority of ans are kind of clustered right around the middle that is to be expected there are a couple of outliers on both sides. either way, overall investors are far from being bullish on next year. the biggest single response that

clients at deutsche bank got was a drop of about 10% for the in index next year. 20% saw the drop of 10% as the most likely outcome for the s&p 500 next year. maybe in better news, the next highest response was for a gain of about 5% next year followed by 17% of those saying we could rise about 10% over the next 12 months so you can take this as a glass half full or half empty argument, kind of depending on how you look at the world overall. half empty is that the single base response -- excuse me, getting over it -- is for a drop half full would mean that the next biggest responses are for a gain in the s&p 500 and the combined responses were more than the biggest one on the negative side. hey, we're going to call that the sully side up view, right? but either way, you can see that nearly no one is wildly bullish.

later this week we're going to bring in more of the official strategists targets. next year certainly should be random but interesting and maybe a little painful if all those deutsche bank clients are right. w.e.x. is back right after this.

welcome back time for your w.e.x. wrap-up six stories you might have missed as we close in on the east if you think inflation is bad here, try england. inflation is still over 10% as energy costs continue to spike on nearly everything. in crypto, binance revealing deposits are returning and have, quote, stabilized. this is after they temporarily paused transactions. story number three, jack dorsey admitted he made

mistakes he says the platform still has significant problems and does not meet any of his principles for son-in-law media, whatever that means you built the company, jack. anyway, apple reportedly allowing third-party app stores on the iphone next year. the move would put apple in compliance with european competition law. china is reporting what it's calling asymptomatic covid cases. that marks the latest return from the rapid retreat of its covid zero policy. and tesla reporting, quote, shock therapy to resuscitate the stock price. tesla's stock has been crushed in the last few months that is your w.e.x. wrap-up. so now let's wrap up what to watch today. here you go, at 7:00 a.m. eastern, you get the weekly mortgage applications numbers. they're out. speak of housing, home builder

lennar will post their earnings after the close today. i think there's something else going on today oh, yes, the federal reserve and their rate call and projections for the future they're out at 2:00 p.m. eastern followed by jay powell's last press conference of the year that's at 2:30 that will be likely a must-watch for all of you with money in the market so let's wrap it all up with global investment strategist and share provider simeon, were you aware there was a fed meeting today? is this on your radar? >> my advisers have informed me there is a meeting today, so i think i'm going to have to watch it with many of the rest of you. >> now s there going to be a difference, all kidding aside, whether they go 0 president 75% or half a percent? is that quarter percent difference going to matter how

you allocate and recommend allocating your clients' money next year? >> the news on the inflation front has been, of course, encouraging. but the odds of getting close to 2% any time soon are pretty darn low. if we look at wages, that's the stickiest thing. it's been sitting right around 5% if we look at a more old school measure, capacity organization, 79.9, right on that 80 inflcz point. so i think the story is we probably have had a peek of inflation, but it's not going to moderate as quickly as people had hoped, but we're going to hear something and that's the most important signal. >> yeah. let's say they give kind of a hawkish take, that they lean more toward -- you know, saying we might need to be more aggressive or words like that.

is that a net negative for the equity market heading into 2023? >> i think only modestly we've already had the big rally on the long end of the curve, and the question of that's got to be more concerns about a hard landing. interestingly, if you look at the equity markets mathematically, the entire rally and the equity markets, of course, in the short run it's about multiple expansion, but the interesting thing is it sits right on that trend line of 10-year yield versus multiples lower 10-year yield, higher multiple the more concerning thing for the equity markets is that the earnings bill is due in 2023, and we've seen margin compression in the last half of this year, and that's, i think, should be much more at the top of the list for equity concerns than a few words here or there from the federal reserve. >> yeah. it's going to be it, and

certainly that guide an and that press conference, that's going to be what matters hopefully next year, simeon, we can focus on things for the fed. appreciate you getting up early, my man we'll see you soon thank you. have a great day. folks, with that, we wrap up another "worldwide exchange" for this wednesday morning we're going to see you back here in 23 hours at 5:00 a.m. eastern. in the meantime, squk awand the gang picking up the coverage next have a spectacular day we'll see you tomorrow

good morning the countdown to today's fed decision we'll get jay powell's reaction to the cooler than expected inflation data we got yesterday. the markets liked it and then

started yawning. up this morning as well. sam bank man not freed that's good. the hearing in the bahamas we'll tell you what comes next. plus, tesla shares have been dropping tesla's major shareholder is calling for shock therapy for the stock in the form of a buyback wednesday, december 14th, 2022, and "squawk box" begins right now ♪ good morning, everybody. welcome to "squawk box" here on cnbc we're live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at the u.s. equity futures first up, talking about what happened yesterday, the inflation numbers that were softer