by ino have standing london, paul donovan. paul, is this the restarting of the european program? what we witnessed tonight? paul: that is probably going to far. the antiestablishment movement is by no means over. this will be a challenge that we have to face up to again and again. we have elections next weekend in germany. we have the french presidential -- parliamentary election. we have the german federal election, then the atomic and. there is to keep europe occupied before they start sitting down and talking. >> this question of redenomination risk. it was driven by markets, by the bond fidget a lot tase. -- by the bond vigilantes. levers theyt what european union. can -- what can these leaders do for the electorate? >> ultimately, the bureau does not work. it has never worked as a monetary union. it needs to work better. monetary unions are not generally perfect. it needs to work better. you need to have a genuine inking union. it is ridiculous that if you write a check on a french bank you cannot use it in germany. that is absurd. it's like writing a check in california and

paul donovan of ubs wealth management. >> and the u.s.nter and is dictating the global moves. >>> futures down at the moment. that's it for "worldwide exchange." "squawk box" is next. the new guy? what new guy? i hired some help. he really knows his wine. this is the new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad. >>> good morning. the markets woke up yesterday. now this morning it's global. u.s. equity futures as well under pressure right now after the dow and s&p suffered their worst day since september. new this morning -- late yesterday, former fbi director robert mueller named as a special counsel to oversee the investigation into possible ties between president trump's campaign and russia. >>> plus the future of the trump economic agenda. everything else notwithstanding, how does it affect tax reform and trade?

. >> paul donovan, a frequent guest, one of the credit rating agencies, no one cares which one, loweredna's credit rating from something to something else. nobody cares what. there's a flicker of interest but no real new information. we know china has had debt levels and has been trying to keep its gdp in check for a while. >> it's always good to get paul donovan's sarcasm in the morning. these are reactive, not predictive, not proactive. the headline is we think growth will be slightly lower than what is forecasted. >>> the euro has been remarkably strong lately. highest level since november. it's backed off from the highs. about 112.60 yesterday. it is going strong a bit. the dollar is firmer against the japanese yen. sitting below 112. the pound is up by a quarter of a percent, even after the terror warning, the terror threat was raised to a critical level. the highest level yesterday. did see the pound sell off a bit on the back of the manchester attack the day before. we are watching that currency sitting below just 1.30. as for gold prices. gold is down by a third of a percent on

but the quote that i mentioned that jim cramer was referencing from worldwide exchange was from paul donovanne of the credit ratings -- rated it to something else, and made fun of it. but if you look at the hang seng, the shanghai comp also brushed it off as well. >> if you rate countries, you have to have benchmarks and standards. this puts them solidly below the top tier in terms of moody's anyway. granted it's not a market moving call, but an acknowledgment of, you know, potential risks there. >> and none of us expect that moody's is going to come up with the smoking gun when it comes to debt. >> watch iron ore prices. not rating agencies. >> there are things to be f focused on when its comes to china. and china, a possible tax war could be on the horizon as the tax plan may have an impact on china, specifically on its manufacturing sector. our eunice yoon has more on that story. eunice? >> hey, guys, i'm at an apparel company in china. just like where you are, everybody here has been talking about whether or not president trump is going to be able to get tax reform done. the reason for t