nomura did not. after silently reading through the japanese reply, hull looked up and said, i have never seen a document that was more crowded with infamous falsehoods and distortions. infamous falsehoods and distortions on a scale so huge, i never imagined until today that any government on this planet was capable of uttering them. in the immediate aftermath of the attack, the japanese celebrated what seemed at the time to be a spectacular victory. it was in fact a more complete triumph and with fewer losses than even the most optimistic planners in tokyo could imagine. pretty soon they had the loss of two carriers. instead they lost no ships and only 29 planes. and the five midget submarines. the only real disappointment was the american carriers had not been in port. the war warning on november 27 had prompted kimmel to send them off of a deck load of fire planes to reinforce two outlying american outposts, wake island and midway. they were not in harbor when the japanese arrived december 7. takin

nomura believes the iphone eight take a listen.r 1 billion iphones being used today around the world and 100 million of them in the united states, they are poised for a large percentage of that base to upgrade to a new iphone eight, and they have got a lot more coming. it is likely they will have much more integrations of siri. imessage will have bots and other functionality built-in. there is going to be a new operating system next year, likely in the middle of the year. apple has everything they need to be successful, and they don't have to have all of the market. they can skim off the most profitable customers, not only the ones who will not only by their phones but participate in the itunes and app store. caroline: you are sounding pretty bullish. over the past decade since they launched the iphone, the market has been bullish. analysts recommendations on bloomberg, the majority all the way back to 2007 have always said buy. the green chart here shows how many analysts say to buy the stock. 80% at current levels. the lowest the

exposure -- that is the critical leaning in point for nomura.rseas pretax profit came in at 34.1 billion, versus a loss last year of 19.9 billion. a third quarter profit of 180.4 billion. just a little bit of a mess on the asset management fee, 55.1 billion, down from last year. ins a success for nomura terms of delivery for third-quarter numbers. go to top go if you want the details. let me take it to the chart. it was all going so terribly, terribly well, wasn't it? sell again, interest-rate differentials. the transformation from, perhaps, to the whipping boy. this is dollar-yen, and this is the u.s. election. thdown went the yen. but has that moment come into question? last week, it was the spat with mexico. over the weekend, it was the immigration policy. in the past 24 hours it is the firing of the interim attorney general. and the market has gone risk off. the question the market is asking itself is, is this the start of a great isolationist trade? let's talk about the risk radar. anna, you mentioned it -- the dollar dropping with the yen

. >>> coming up, steven chubak of nomura has his take on which banks to buy ahead of earnings.irst, as we head to break, a look at yesterday's best performing s&p and nasdaq names. the nasdaq outperforming. five record closes in a row. >>> good morning. the president-elect speaks and the global markets respond. a live report from washington coming up. >>> and earnings central. the banks ready to roll out results. a financial analyst joins us on set. >>> and alec baldwin could bring his version of donald trump to a new stage. all the details coming up. it's thursday, january 12, 2017. you're watching "worldwide exchange" on cnbc. ♪ >>> good morning. welcome back to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. happy throwback thursday. throwing it back to some of the queens of rap. i don't think we have had any british ones yet. >> there isn't any. >> there is at least one. >> as for u.s. equity futures, stocks managed to close higher yesterday. little softness this morning. dow futures down about 38 points. s&p futures down a little more than five. nasdaq

fx lobal head of g 10 strategy nomura joins us now.et me ask you, first of all, whether or when you expect action to happen beyond weets. >> well, at the trump press conference we had earlier this week, we indicated on the first workweek after his inauguration from january 23 onwards he would start to implement actions. from a currency perspective, one of the first things will be policy. what we know as president he has the ability to implement tariffs on countries without having to go to congress. we think there is a real possibility of some kind of action very early on in his administration. guy: what does that mean for the dollar? the dollar has really been all about what's been going on with the reflation trade. we have seen it come off this week. it has had a pretty weak week. the dollar has been coming under pressure. does that start to reverse? is that jitters before the inauguration or do we start to see that firming up? it looks like healthcare is going to be a priority. >> when trump first got elected, i think the focus was v

nomura saying look for 1.118. is that something you subscribe to? 1.18 is right.start dealing with less talkingbps, you're about the market pricing in movement and were just talking about daytraders. shery: let's talk about china, 2017mf bumped their forecast, but warned about the credit-fueled recovery. on my bloomberg, china's corporate and household debt as a percentage of gdp is continuing to rise. percentageing as a of gdp, the yellow bar, still high. how will the recent capital outflows we have seen in china and the yuan depreciation complicate matters for policymakers? >> i think that will continue to rise. transferring away from a purely exporting economy to now more of a spinning economy. , whichwill consume more is a great time for donald trump because now china will be importing more and exporting less. what will that mean within china? that means more debt. how they will deal with it, it will be hard obviously. ,he chinese have a pot of tools because it is a changing economy and going from a producing ,ation to a consuming nation they have a lot of his

nomura says we could be headed back towards 110.als have turned bearish this week on dollar-yen now that yen has strengthened for four straight days. fairly rudimentary analysis, you can see there is not much here, not much support 101 .5 twoto about or thereabouts. that is my rudimentary technical analysis. thank you for that. right, the fallout from park 's impeachment spreads, lawmakers are looking into the country's public tension fund. we are learning about this fund and its role in the scandal. >> the national pension service is the world's third-largest pension fund, only behind japan and norway, about 550 trillion won. billion, and $450 their major shareholder and their major shareholder in samsung electronics, hyundai motor, lg displays come all the major korean blue chips. rishaad: they aren't act fitfully activists investors, aren't they? what is in store for the pension service as a result of what has been going on in this political scandal? npsrosecutors allege the has been involved in the influence peddling scandal. op

nomura downgrading qualcomm's stock from neutral to buy, saying the rulings are more impactful than anticipated. call cam down more than 12% this morning. it's been worse than that at times this morning, but we'll see where it goes. >> definitely off the lows today. to the broader markets as well, the major averages, of course, looking at selling pressure. dow's down 74. let's bring in ubs director of floor operations, art cashin, who joins us here at post 9. good morning to you. >> good morning. >> you said this morning the markets are hoping the focus in d.c. can shift from personalities to policies. is today's meeting a step in that direction? >> well, marginally so. i don't think it's the kind of thing that the market's looking for. they want greater definition on what tax reform will look like. a lot of these companies for forward projection for the balance of the year -- what kind of corporate tax am i going to be paying? how are things going to go? the infrastructure team would be important. what areas of infrastructure are we going into? how much is going to be spent? how soon can it ge

i'm not sure where nomura is coming from. it would have to grow its market cap by, you know, about 20% to overtake mcdonald's, but they're saying that s-bucks is fosed on drinks not food and it's a tough call. stuart: i've left dan out and i've got to bring him in. talk to me about gas prices. i don't think you've got good news there because they just keep going up. are they going to keep going up, gas prices, dan stesich. >> looks like it in the short-term. yesterday i was waiting to fill up with gas, and i paid $2.60 in chicago. the opec deal is hold to go an extent, but it's a short time period that we've seen this thing so we have to see what goes on. i think within the next three to six months, you'll see some cheating on that deal. but the reality is, along with the stronger economy, and the confidence we have here, the gas prices are going to stay somewhat elevated. the good news as they get elevated we have the frackers coming back on-line so we should be able to limit the price of oil to probably the 55 to $65 range.

nomura saying sales will jump by 5% for starbucks in 2017, but starbucks won't pass its rivals this yearre room for growth when it comes to the beverage industry. china's third biggest search engine is planning an ipo of $5 billion to chase by do. we are talking about soguo, and the ceo saying the company aims to offer 10% in a sale later this year. about 45%, alibaba had 21%, soguo third on 16%. absolutely, well, we have global uncertainty, fragile recovery, brexit, trump, rate hikes, they all contributed to a somber ipo atmosphere last year. hong kong led the world when it came to funds raised. benson wong, we heard about company looking at listing, but tell us about what happened in 2016, characterized where hong kong was and how it did against the rest of the world. >> in terms of the global upket, what we have done has to the ipo to fundraising. was a drop ine total fundraising by 30%. ,s compared to other markets hong kong was still reactive. rishaad: $28 billion? >> the fundraising in hong kong, hong kong dollars around 195 billion, and there were two -- companies listed in hong k

a system that they're both sitting there for most of the his the man, when a king and a king was nomura you think viewers need to keep in mind as they watched the inauguration because the bay area is divided right now. >>: 21 to see a lot of the panoramic views of the reaction will people need to understand is one of the election this process inauguration process it teaches and discipline of our views on to go through the ceremonial process' can't participate and to lay hands on them to say we have very high expectations of youth we have to take a quick break and will be returning with the coverage of today's inauguration. çbreakÑáááábreakáááá çááádaryaáááÑ we're keeping an eye on this morning's inauguration ceremony... right now, various governors from around the country are taking their seats for donald trump's swearing-in... çááámarkáááÑ but right now.. let's get a quick check of bay area weather and this morning's commute... rebecca... çááádaryaáááÑ >>rebecca: areas like a mountain view and los gatos and san jose very hard hat right now 10185 of the committees are going to be very t

nomura, hard brexit equilibrium. flash crash lows. so on and so forth. lot of them saying we could likely see more weakness in the currency this week. on the other side of the trade, the volatility, that is where the money is to be made. that said, we will be getting more this week from theresa may. we also heard from the boe governor a few hours ago. he was speaking at the london school of economics. he talked about the current outlook. let's listen in to mark carney here. a situation right now where, for understandable reasons, business investment has been dampened by uncertainty -- not because -- i mean there is access to finance, but there is some uncertainty about ultimately what is a relationship with our biggest trading partner and that is weighing on investment. david: right. that sets us apart today. we sue some dollar strength on the back of the weakness in pound sterling. strength some dollar on the back of the weakness in pound sterling. of this caution is pervading across markets right now. you look at crude. very quickly, you had comments o

nomura today argues the donald trump honeymoon is over and we're heading into a period of dollar weaknessat was what some tried to allege yesterday. >> really? >> that somehow this was the beginning of the end for this big surge. >> i just don't see it that way. i just see that there's some sort of sense that washington may not be -- i'm old enough to remember reagan where he talked about let's get the government off the backs of its people and there were a lot of people who didn't vote for reagan but came around to the idea that when the dow started going up that maybe there's something new happening here. and i think that there's something new happening here when it comes to business versus some of the personal ways that the president-elect's handling himself is transcending for stocks. may not be transcending for all the other stocks, but for stocks i think people are saying, okay, let's see, wells fargo, you know, the president-elect is not going to call them and say, you know what, it's time for you to be punished for cross selling. i mean, it's just not going to happen. and i think

pertains specifically to the antitrust review of that deal, it shouldn't necessarily -- >> actually, nomuraout today and downgraded the stock i think to neutral lowering the price target to 70 on concerns about the timeline for this nxp deal, to your point. not necessarily on the tax side. >> right. the worry on nxpi seems specific to chinese antitrust approval. >> right. >> with all of that, guys, dow close to session lows here down 48. when we come back a surprise beat from mcdonald's this morning. we're going to break down the fast food giant's global growth and turnaround plans when "squawk on the street" comes right back. yd otrad yolln ou brarr itng79ae mehi itng79ae >>> mcdonald's out with earnings this morning beating on both the top and bottom lines. the fast food giant reporting a 2.7% jump in global comps. that's including gains in the uk and in china. ceo steve easterbrook notes changes in its mean yu and technology delivered a better experience to the customer helping the company achieve its strongest annual global comp growth since 2011, although the debate rages this morning.