the mexican peso relative to the u.s.ou have to look at the performance of both of these currencies over the last month to get a sense of what the -- gyrationsoes expected. scarlet: it shows the president can be flexible with the tariffs them at 3:30pose p.m. the president noted a trade surplus with australia -- and he called australia a long-term partner. do we expect an exemption from them? argument the president is making is that this is a national security issue. the argument of the australians, germans, canadians, and mexicans have made his we are on your side. the australians are worried about that and they are isolated by steelted overcapacity in asia but there is no word if they will be. julia: let's talk about the chinese as well, got stern comments saying there will be a response from the chinese and that this is ultimately unacceptable. if you start exempting the canadians and mexicans come the u.k. was another one with the skill union president saying they should be exempt. you are making it clear who you are

the mexican peso in emerging markets against the u.s. dollar, here is the move. a 10th of 1%.this was 18 months ago and this was the residence best case ont would have a tariff steel and aluminum with more to come, what the peso move at a 10th of 1%? matt: we take the over. this is a specific issue of mexico and after, this is a global issue and a stance of trade policy change and i think the saber rattling will keep the market concert, especially canada. it is also more about japan and u.s. manufacturing and you see brought volatility -- nothing that is poked at mexico. jonathan: the details remain to be seen but we may get them next week. em when theseo details came out? matt: the spread get in hard currency is not the similar of what you can get in high-yield corporate's, it is modest, but if you see trade tension or global volatility increased -- you could have volatility and not compensated for it. the local site accents because the dollar is likely week when you are hurting the trade policy stance. jonathan: does what matt said resonate with you? it does -- at the gentle

the mexican peso sliding 0.7%.e also under pressure, having a hard time sticking with the 130 handle. we have gdp numbers weighing on the currency. won making the move toward the 1061 level. we are seeing it hedge around the 1069 level. the korean won very much in focus. you so much, sophie kamaruddin, with the state of the markets. let's get to first word news. news, president trump's top economic adviser gary cohn is quitting over the administration's threatened tariffs. cohn always opposed the plan and was part of the campaign to stop the deal. he invited steel and aluminum producers to the white house. trump said he had no choice but to go ahead, claiming the u.s. has a poor trading deal with partners around the world. moments after gary cohn confirmed his resignation, the administration is considering broad curbs against chinese imports and investment in the for, to publish beijing alleged theft of intellectual property after an investigation by the trade representative's office. the president said he would we

the mexican peso in emerging markets against the u.s. dollar, here is the move. a 10th of 1%. if this was 18 months ago and this was the president's base case, that we would have a big tariff on steel and aluminum and potentially more to come, would the peso have moved at a 10th of 1%? matt: we take the over. is less of a specific issue of mexico and nafta this is a , global issue and a stance of trade policy change and i think the saber rattling will keep the markets concerned, it is not just about mexico, it's more about canada, who is a bigger metals and porter -- metals importer. it's also about japan and u.s. manufacturing. you see broad volatility. nothing that is poked at mexico. jonathan: the details remain to be seen but we may get them next week. if you shifted anything to a year -- to e.m. when these details came out? matt: the spread get in hard currency in our not to similar to what you can get in high-yield corporates, very modest. but if you see trade tension or global volatility increase, you're not compensated for. the local side makes sense because the dollar

the mexican peso in emerging markets against the u.s. dollar, on the session, here is the move. a 10th of 1%. matt, if this was 18 months ago and this was the president's best case, that would have a tariff on steel and aluminum with more to come, what the peso -- would the peso move at a 10th of 1%? matt: we take the over. this is less of a specific issue of mexico, and after, -- nafta, this is a global issue and a stance of trade policy change and i think the saber rattling will keep the market concerned. but it is not even really about mexico, it is actually more about canada and jump and and as rationally about u.s. manufacturing. what you are seeing is broad volatility. jonathan: the details remain to be seen but we may get them next week. if you shifted around em when these details came out? matt: we believe it makes a lot of sense on the equity side. more so than the fixed income side. the spread you get in hard currency is not similar of what you can get in high-yield corporate's, it is modest, but we expect that if you do see trade tension or global volatility increased

the but he fully understands -- but if you look at the board, take a look at the mexican peso, a bigrsus the dollar. up 8%. perhaps people not taking the wall talk at its face some picking nafta -- but the mexican peso is doing well. joe: and on the commodities front we have oil and gold corn and soy also searching after the usda report. which rechecked checked every day, not a lot of action. for the quarter, a good start for oil and it will be interesting to see if it takes up further. and gold, i know people get excited, but come on, 1.5%, that is not that exciting. [laughter] lisa: real talk by joe weisenthal. scarlet: let's go back to stocks. the s&p 500 and he gets straight of nine straight quarters of gains. here with more is being laidler -- ben laidler. you wouldn't know it would yet the major indexes, what does this make you assess more or less attractive volatility? i'm 100's more uncertainty, but that creates a by opportunity for people who missed the way up. this is back to reality. the last year has been unreal narrative of volatility. the fact bonds have repriced and vo

we saw canadian dollars and mexican peso's gaining. above $65 in an imax -- in the nymex.tures rising as well as older futures of rising. is actually down slightly with the yield up. the u.s. 10 year yield right now 2.869. the battle to take over takei continues. they once again reject melrose's offer. let a tale about about what is coming up in the program. let's go to bloomberg first run update. u.s. president donald trump is set to announce about $50 billion in terrace with china over intellectual property violations today. administration is targeting more than 100 different sites of chinese goods. first -- it will be his first trade agreement with china. the u.k. said to be sharing secret intelligence about the nerve agent attack on a former spy with key allies and an effort to persuade them to expel russian diplomats across europe. minister theresa may ordered retaliation. other countries to follow britain's example condemning russia and taking action against kremlin agents. lamb hass., conor healed his stunning upset for a pennsylvania house seat that had been in rep

i think the real tell is the canadian dollar and mexican peso, telling you instantly what the markets think. all right. so, closing bell just getting started. >>> we have much more on the markets' re action to the departure of cohen, asking larry kudlow, is today's market drop a sign market investors are losing faith in the stock market president? plus, live and exclusive with morgan stanley's ceo, james gorman a great day to hear from a wall street titan we're back in two minutes live from the new york stock exchange today, smart planning is helping the new new york rise higher than ever. as the world leader in unmanned aerial systems, we're attracting the world's best talent to central new york. and turning the airport into a first-class transportation hub. all while growing urban areas into vibrant places to live and work. across new york state, we're building the new new york. to grow your business with us in new york state, visit esd.ny.gov. you know what's not awesome? withgig-speed internet.te, when only certain people can get it. let's fix that. let's give this guy gig- really

the mexican peso and canadian loonie gaining on our poor the u.s.os from those countries. take a look at the korean won. uncertainties surrounding the korean economy are high. moon says a summit between the north and the south could be possible. let's get to first word news with paul allen in sydney. befacebook is said to drawing scrutiny from the main u.s. privacy watchdog and powerful congressional committees over its mishandled data scandal. commission isade investigating whether facebook violated a 2011 decree over private information. cambridge analytica has a suspended ceo alexander nix, saying his secretly recorded comments on acceptable. korea governor says uncertainty over south korea's economy remain high. he was in a confirmation hearing in parliament. he declined to talk about the timing of a rate hike. he also said rates are unlikely to rise to precrisis levels. president trump welcomed mohammed -- saudi prince mohammad bin salman. noted riyadh has finalize the buying in more than $12 billion worth of planes, missiles and warships from

mexican peso's as well. there are a couple of commodities as well.ore is down one and a quarter percent. gold is down 6/10 of 1%. mark: when the ecb held rates week, it released plans to increase qe in terms of size. mario draghi is making it clear he wants to sustain qe beyond 2018 if he decided. ingdhief economist for joins us now. great to see you in person. king quickly talk about dollar, by the dollar and sell gold. >> mario draghi will be very happy to see a strong dollar policy. mark: mario draghi spoke yesterday. where are we? where are we when it comes to the end of 2018? ecb.en: a very dovish they wish inflation would pick up. they are still having some doubts, because that is what featured yesterday in the speech from draghi. the either stop in december or are extended by another three months. vonnie: what are you waiting for in terms of becoming more sure about your position that qe will -- will go away? carsten: is the phillips curve dead or not? is the lower unemployment rate leading to higher wages? even if it would, what higher wages

dollar, mexican peso, brazil. are any of those undervalued?l realities slightly undervalued. the mexican peso is more or less where it should be. the u.s. dollar is getting undervalued, but it will probably go down further going forward. alix: as we wrap that up here, want to get your take on other areas of emerging markets that you like. you mentioned brazil and mexico and china. what me to other countries and sectors. -- walk me through other countries and sectors. mark: we love africa because they are growing at such a fast rate. that includes commodities and to a great extent telecom. telecom revolution is hitting africa in a big way. people are giving smartphones. smartphone prices are coming down so that would be a very interesting space to be. alix: what about russia? mark: russia, that's a good question. the more that we see these scandals coming out here in the u.k. as you know, the poisoning scandal and so forth, it's very bad. there arey is that great russian companies and some of them are very undervalued. the problem is we face re

we do have the mexican peso softer by a touch.y be fleeting from the trump tariffs, as nafta risks linger. the conditional exemption puts more pressure on canada and mexico as it highlights they may face a more protectionist u.s. if they do not play ball with nafta. key in focus will be the korean won and the potential, the impact from this upcoming announcement from south korean officials in d.c. ramy: we want to get back to that. another line crossing the citing cnn,rminal, north korea said to offer to suspend its missile -- its missile tests with any talks that may come out what we are expecting to see. you are looking at live pictures out of the white house. we are expecting some kind of announcement off of the reports from fox news, saying it kim jong-un has invited donald trump to a meeting to discuss the future of u.s.-north korea ties. definitely unprecedented. north korea now offering to suspend missile tests with talks here, citing cnn. yvonne: we were talking to guests throughout the week, talking about it is important

ratedpulling other dollar currencies so that canadian dollar and the mexican peso are having a betterng many days of weakness thanks to tariff talk. areof the commodities rising on the back of this. mark: great stuff. -- aing a major hurdle ,reen light is given of a deal but they have to sell its agricultural technology and still needs approval from u.s. regulators. bloombergned by the eu antitrust reporter, what does this have to do with what they promised to do? packages to sell a worth $7 billion that is quite sizable and the idea is to -- a smaller player in these markets and make them a competitive force in the merge. that answers regulators concerns about the deal that competition becomes less when one company exits the market. mark: will those measures persuade concerns by u.s. regulators? >> that is a question for the u.s. there are big differences between europe and the u.s., which in practice are rolled out across europe and as you know there are huge regulatory issues and getting some of these products to get planted and sold. the u.s. market is different that way and that

the same dynamic with the mexican peso. yield is 2.90%. it has not breached that.o gmm, picture around the world for the indexes, mexico with a sigh of relief on the exemption from the tariffs. russia is higher as is argentina and south korea. stronger -- won is south korean won is stronger with crude oil up 2.8%. 61.84. nd had weekend -- weake substantially. theie: the british -- mark: parliament would have six months to debate and approve the deal before britain deals -- leaves in march. our london bureau chief. january cuts it fine for businesses and parliamentarians, everybody. >> the history of the talks has been missed deadlines. we can count them. this was the big deadline. the big moment for the deal to be struck and giving enough time for the parliaments, it has to be approved by the european and british parliament for them to approve it before we get to brexit day which is only one year away and a few more weeks, the end of march next year and british officials say that is unrealistic because so many points they do not agree on. we still have distance bet

the canadian loonie and the mexican peso. 'sven the report of cohn plans to other executives, that has been scuttled. the aussie dollar, that is falling for the first time in four days. trade war fears weighing on the currency. shows us curious is not immune to global influences. we'll extending to clients. to clients.ding a last look at players in the region, feeling the pressure. including bluescope in sydney and kobe steel. more cases of misconduct were found. rishaad: more taking place between pyongyang and russia. news go to first world with paul allen. paul: president trump has signaled he is open to talks with north korea. the south korean delegation spent more than four hours with kim on monday. says he is willing to if the weapons tests safety of his regime is guaranteed. china is reinforcing the idea of the asian century with the looking to pass that of the eurozone. eurozone lede china by less than $200 billion. china pushed past the combined economies of north and south america and 2016. told 31 lenders are two pm

dollar to the mexican peso. you can hold a u.s. dollar, sell it and buy xrp. the mexican peso. dramatic decrease in cost and a dramatic increase in speed. tells -- brad darling se from ripple. bank plans to raise 1.5 6 billion shares. reached lending has $100 billion despite a tough environment. sources say, since the start of last year, consumer lending has doubled even as the government quiteotas and has become a financial powerhouse. it is valued at $60 billion. kakao is planning a taxi hailing service in japan in the second half of this year. partnershipking a involving at least 60,000 cabs. the stock is up over the last year. video-- baidu's streaming service recommends investors and drive a hard bargain in the ipo. it is china's most viewed video streaming platform. baidu owns about 70% of iqiyi. the next units may see prices rise by as much as 8%. no slowing down in the hong kong property market. indian inflation dropping below 5% for the first time in three months. what all this means for the reserve bank of india and what policy projector a week at ex

>> rick, we see the dollar continue lower essentipecially against the canadian dollar and% the mexican peso that's no surprise that's logic at work right now what do you expect to happen here >> i look at the dollar index and i understand 57% of the dollar index is based on the euro valuation so it may be distorted but it's acting just fine the dollar index, the pattern year-to-date looks quite friendly interest rates, looks like the tenth day in a row we'll see a ten-year note yield close on the 280s the bund is closing in the 60s, at it covered pretty much its whole range from 62 to 70 basis points after mario draghi. i see a market acting pretty well once again, and i use this analogy many times, if i wasn't aware of the trade war that seemed to be brewing, i would be hard picked to pick it out looking at markets to take it a step farther, i just don't get the whole concept of trade where i'm a free market trader the problem is globalization includes way more than just trade. it includes many things. that's why brexit became an issue. the brexit thread is alive and well throughout the gl

dollar is weakening against the mexican peso and the canadian dollar. we are watching this closely because there have been reports in the last couple of minutes that it is china that's going to be -- but they only create 3% of the imports in steel to the u.s. u.s.. canada and mexico are the two and in you can see the moving higher against the dollar right now. those are the two countries that will be temporarily exempt. how do you feel about that? >> e i think we want to make sure that we are not impacting strong trade partners like canada and mexico but we have to be careful of the potus global tariff on and we don't address those countries we can see products compare those countries and as you suggested with the currency exchange rate those jobs could be going to canada. we have to make sure we prevent slabs coming into canada and ship to the united states or their products as well as just an example. we need to make sure we care about that. liz: where are you going to be when you watch this announcement which is about 24 minutes away? >> i think i'm

the mexican peso canadian loonie are cheering as they will be exempted.he insurance company buying express scripts. one year since -- took on wall street. on the investment firms diversity initiative. after a morning of will they won't say, president trump is expected to sign a tariff at the white house. mexico and canada will be exempted pending nafta talks. washington,st, in michael mckee. back out too get you. this is what we are talking about. the context on this is everything. exemptions for canada are tied to those nafta negotiations. briefing from a the senior administration official that told us canada and next ago will be excluded and there is an opening for other allies to ask for an exclusion or show that it is justified on national security grounds. this is a significant step back from what trump told us he was broadto do, blood tariffs. it has prompted threats of retaliation. beo think countries will breathing a sigh of relief. we will see when he signs this and we see the fine print what exactly will be done. if they can agree does that mean

lower, thetracking mexican peso and canadian loonie.rsday, are waiting to learn if trump will follow through on speculation he will announce $50 billion in tariffs against china over intellectual property violations. this continues, wall street journal reports china is considering countermeasures. the aussie falling to a december low, but it has since recovered, supported by higher commodity prices, ahead of the aussie jobs data. they expect a 20,000 gain in payrolls last month. we have that to consider for the aussie dollar. aussie stocks on the back foot this morning. indonesia and the philippines up to bat today. as courtney mentioned, we started with new zealand, rates held at a record low. the rbnz expects inflation to weaken in the near term. david: that seems to be a 2019 story. hong kong raising their base rate to 2%. japan is coming back online. anything to know about? >> not a great start to spring, we have tsunamis to look forward to, cherry blossoms. and the grizzly bears. that could add pressure on the japanese stocks. bill

dollar relative to the canadian dollar and mexican peso. s were a big driver of those positive moves in canadian and mexican stock exchange traded funds which go up in value when the currencies go up in value. one quick way to see how much impact there is on a particularly geographically focussed fund is to make sure there are currency hedged versions of the same funds. there are much smaller and very tiny versions of the country funds that use derivatives to keep fund performance tied to underlying stock movements abroad rather than currency effects themselves. as long as trade talks continue between america and other countries many funds and those associated with them where we do see that debate over the headlines play out. back over to you guys. >> thank you. when we come back we have a deep dive into market impact of today's jobs report and tariffs. and less than an hour from now treasury secretary steven mnuchin will be with us. squawk on the street will be right back. today, the new new york is ready for take-off. we're invested in cre

. >> they do just one historical note 1994 we had the mexican peso crisis, the bankruptcy of orange countyrnia on a bad derivative bet it was a flat year but it was still unnerving. >> good to have you. >> thank you >> the pictures out of china confirming the high level meeting between kim jong-un and president xi jinping is this a signal president trump's hard line tactics are working against korea and will lead to a deal joining us, the senior fellow and director of the center on peace and liberty at the independent institute, ivan fellow thanks for joining us. we may be going to the white house. excuse me one second we have to go to the press briefing to hear sarah sanders and if she addresses the president's ideas on amazon. >> -- went into effect in 2012 the u.s. trade deficit increased by 70% from 6.3 billion to 10.7 billion. through negotiations the u.s. trade representative secured changes to reduce the trade deficit and ensure chorus is a good deal of prosperity and the security of the american people. this is a big deal for the american automotive industry, a big deal for our par

the canadian dollar and mexican pay s peso are also retreating as it is seen that washington could walk away from nafta talks. it is unclear whether president trump is using the threat of steep tariffs as a negotiating tool or whether he really means it, but they say the markets can't ignore the risk of protectionism. many strategists view that as a potential threat to the growth of the u.s. economy, but they also say any neglect taf market reaction could be short term. so we'll have to see how it shakes out, but it could be a wild day on wall street. >> kate rogers for us, thank you. >>> turning now to what appears to be a major breakthrough in resolving the tensions on the korean peninsula. during his first ever sitdown with south korean official, kim jong-un raised the possibility ever talks wi of talks with the u.s. and denuclearization. andrea mitchell has more. >> reporter: good morning. this could be a turning point. north korea's kim jong-un meeting with south korean officials face-to-face for the first time. and holding up the prospects of meeting with the u.s. as well. a stunn

mexican presidential election on july 1. their dollar is stronger. and of course in mexico, the deputy finance minister said volatility with the peso may persist with naftaions and election concerns swirling around. joe? joe: on commodities, take a look at oil and gold, very quiet day. bit, golda little down a little bit. scarlet: breaking news across the bloomberg, broadcom reporting quarterly results and of course the ticker -- they reporting $5.12. it had given guidance earlier on pretty announcing that it would be $5.10, so this is higher than indicated. net revenue of $5.3 billion, pretty much in line with what it expected. and it had anticipated $5.3 billion to $5.35 billion. and net revenue anywhere from $5 billion plus or -$75 million, and analysts looking for $5 billion, looking to sell the stock. and the company announcing a quarterly interim dividend. that is something that the company is saying, i am looking to see what the exact size of that dividend is going to be. julie: i did a word search through the release for the word qualcomm and no finding of that. presumably, they will get questions about where they go from here after the governmen