Exchange on cnbc. Im wilfred frost. Im Courtney Reagan in for sara eisen glad to be with you on this happy friday lets get to that breaking news north koreas foreign minister threatening to detonate a Hydrogen Bomb over the Pacific Ocean, this hours after the u. S. Imposed the toughest sanctions yet on north korea irans president said his country will strengthen missile capabilities without seeking permission from the community. The country has already unveiled a new Ballistic Missile capable of carrying several warheads a live report from iran coming up lets start with this new threat from north korea chery kang joins us with the latest good morning good morning so lets put that comment coming out of north koreas foreign minister who is in new york attending the u. N. General assembly into context here because he was first asked by reporters about what its leader, kim jongun meant by the hi highest level of hard line measure in his statement in reaction to the trump speech at the u. N. Assembly earlier this week the one where he talked about totally destroying north korea if the u. S. And allies feel threatened. The top diplomat also added he would not know kim jonguns exact thoughts, but i think when asked about that, thats what he came up with, testing a Hydrogen Bomb in the Pacific Ocean in an unprecedented scale. North korea so far has conducted six Nuclear Tests so far all have been done in underground tunnels. If it goes ahead with Something Like this, its something never done before. We dont know whether he has the capabilities or facilities necessary to do so this is the first statement that any north Korean Leader came out with his own name, has never been done before by any north korean founder now, lets pull up one part coming out of that speech here i pulled up one part he said trump is unfit to hold the prerogative of supreme command of a country, and he is surely a rogue and a gangster fond of playing with fire, rather than a politician. Hes certainly got personal there. Thank you very much for that. China is reportedly stepping up sanctions against north korea. The white house says the peoples bank of china ordered all chinese banks to stop doing business with the nation eunice yoon is live in beijing with more on that. Good morning reporter good morning. Well, sources are telling reuters that the central bank has instructed the banks here to abide strictly by the u. N. Sanctions against north korea. Reportedly were hearing that the banks are being told not to take on new north korean customers and to wind down existing ones. Theyve also been told and warned about the economic losses, as well as the reputational risks that they could take on if they defy the order. Theres been a document that has apparently been circulating among the banks which said that north Korea Related business has become an issue of National Level politics, and National Security however today the Foreign Ministry dismissed that report at a regular press briefing in beijing. The Ministry Said what you mentioned now is not consistent with the facts china always implemented the u. N. Security Council Resolutions in their entirety. They also weighed in on trumps executive order to expand the ability for the u. S. Treasury to impose new sanctions saying china is always opposed to unilateral sanctions outside the framework of the u. N. Security council. The ministry was not only critical of the u. S. But had sharp words for north korea, saying that it opposed any other types of tests, such as the one thats been suggested by north korea, the hbomb in the pacific. Eunice, thank you very much for that report. We should point out the markets in asia are a little soft this morning. But not too pronounced the keyi yakorean index donwn in other china news, the ft reports that steve bannon flew to beijing last week for secret meetings with the second most powerful communist Party Official just about a month ago, bannon declared the United States is at an economic war with china interesting that he took this meeting. The man leading the anticorruption charge thought to be second most powerful after president xi jinping mr. Bannon was in hong kong to speak at the csla conference went on to beijing to take this meeting. It comes ahead of President Trumps trip to china. Wonder if thats related or not. Back to the market picture futures at this hour after the dow ended its nineday winning streak yesterday the nasdaq down about a half percent. The s p and dow down about a quarter percent. Apple was a big decliner, down almost 2 . The iphone 8 out today less than positive reviews over that also some potent sham conneial y issues coming out for the watch. Week to date, the dow is up. 4 the nasdaq down about 0. 4 as we come into todays trade, the s p is flat. We are expected to open slightly negative nasdaq down 10 points. Thats the laggard at the open if things stand. The s p and dow down fractionally we talk about how yields did not rise that much after the fed meeting. But for the week as a whole they have 2. 26 percent as we stand here. Started the week at 2. Or ended last week at 2. 20. We had a tick up in yields over the last two, three weeks. Asian equities wilfred mentioned, we did see those mostly lower across the board overnight on the growing tensions with north korea, with the u. S. , and the sanctions that were mentioned out of china that eunice brought to us the nikkei down a quarter percent. The hang seng down a percent the kospi down three quarters of percent. We want to check the picture in europe, which is mixed this morning. This is actually we have a number of different factors at play here. Still watching the global picture for what were talking about for north korea, but also better than expected numbers out of france for the gdp and the services and Manufacturing Activity thats why the french index is higher overall, the eurozone composite pmi at 56. 7, prior reading 55. 7 thats one of the reasons the euro is a bit higher oil prices, they were slightly negative yesterday, also lightly negative today its been a decent week, up 1. 3 for the week well above 50. 50. 50 for wti. Not well above, but holding above 50 dollar board for you, eurozone pmi numbers, giving a bit of impetus back to the euro this week, up about 0. 4 . Elsewhere we have a similar move higher for the yen against the dollar the pound is flat ahead of theresa mays speech gold prices had a tough week down about 1. 6 yesterday. Down about 2 for the week as a whole including todays gain, 1,298. Facebook says it will begin sharing information with congress on some 3,000 ads it sold to russialinked accounts during last years president inal election Mark Zuckerberg vowed to make political advertising on its platform more transparent. Going forward, maybe the most important step were taking, we will make political advertising more transparent when someone buys political ads on tvo other media theyre required by law to disclose who paid for them, but you still dont know if youre seeing the same messages as everyone else so were bring facebook to an even higher standard of transparency not only will you have to disclose which page paid for an ad, but we will make it so you can visit an advertisers page and see the ads theyre running to any audience on facebook. Zuckerberg said facebook is exploring ways to share more information about election interference saying its something we must do they got caught in the cross hairs of a lot of the allegations about fake news spreading. Interesting moves. He loves using his own platform to give updates he does kind of weird that video, i thought. You think he just put out a statement he wants people to watch video. Thats part of their push. Any way, slightly odd in my opinion. In other corporate news, hewlettpackard enterprise is set to announce job cuts landon dowdy has the details hewlettpackard enterprise is preparing to cut 5,000 jobs or 10 of its work force according to reports the move comes as the broader effort to rein in expenses amid mounting competition from other cloud providers such as amazon and alphabet the reductions are likely to impact workers in the u. S. And abroad and are expected to start before the end of the year hp is the spinoff of hp and offers cybersecurity, cloud services, servers, and other Corporate Technology under the leadership of Ceo Meg Whitman who has been looking to shed cost on an analyst call earlier this month, hp executives said the company has an opportunity to create an internal structure and operating modeler that is simpler, nimbler and faster and that the firm is tar getting 5 1. 5 billion in savings over a threeyear period. Back over to you thank you very much for that. Still ahead on Worldwide Exchange, a brexit reboot theresa may about to make a big speech in italy. Well tell you what you can expect and later, walmart upped the ante in the delivery wars. Why doorside drop off could be a lexaiof the past. Wel pln. music plays throughou so, i was at mom and dads and found this. Cds, baseball cards. Your old magic set . And this wrestling ticket. Which you still owe me for. Seriously . 25 . I didnt even want to go. Ahhh, your diary. Mom says its totally natural. 25 is nothing. Abracadabra, bro. The bank of america mobile banking app. The fast, secure and simple way to send money. Did you know slow internet can actually hold your business back . Say goodbye to slow downloads, slow backups, slow everything. Comcast business offers blazing fast and reliable internet thats up to 16 times faster than slow internet from the phone company. Say hello to faster downloads with internet speeds up to 250 megabits per second. Get fast internet and add phone and tv now for only 34. 90 more per month. Call today. Comcast business. Built for business. Good morning welcome back to Worldwide Exchange. Lets get you up to speed on the market picture a mixed trade in europe pmis, the manufacturing and the Services Better than expected. Thats led to a strong euro. Were not seeing a resounding performance in european trade. Basically flat today. Germany heads to the polls on sunday for a nationwide election where theyll decide whether Angela Merkel has another four years in power. Right now merkel is leading in the polls. Were expected to get the first results on sunday. I think the key thing on that, shes well ahead in the polls. Still a large portion of undecideds the key thing for markets is the second place, which is the spd, also very pro europe so not a wildcard chance of le pen or wilders like in the dutch elections. The focus coming out is likely who will be the coalition partner, and how long it takes the government to form it. You might get a void of power for a month or so or longer. Its not a big factor for u. S. Markets. To italy where british Prime Minister theresa may will deliver a major brexit speech later this morning germana has a look at what to expect good morning good morning. Its a Beautiful Day in florence will theresa may deliver a glorious speech later this morning . Well see. This is the second speech of the year back in january theresa may said one line that did not go down well with her eu counterparts, and that no deal was better than a bad deal since then the tone has softened a bit. Were expecting her to strike more of a conciliatory tone, and perhaps thats the reason she chose to deliver the speech in florence in the heart place of italy, the heart place of europe maybe she wants to send the message that the uk is leaving the eu but not necessarily europe shell be hopefully giving a little bit more detail about what type of trading arrangement the uk does see with the eu once the full brexit has happened give it more detail on the rights of eu citizens living in the uk and another matter of the transitional framework this is something the chancellor, Philip Hammond referred to over the summer. One way to avoid a cliff edge brexit come march 19th would be to remain access to the Single Market and Customs Union by continuing to pay to access those markets. The number touted is 20 billio euros. Whether or not she makes a reference to that number at the speech, we dont know. Well find out in a few hours. Joumanna, thank you very much for that update. The other reason to make the sfree speech from florence is a chance to be in the beautiful city. I was going to say. The other point, clearly shes in europe to give the speech, the audience is waiting for negotiators on the european side, also watching this closely is the conservative party itself, the annual conference is coming up. She also has to make clear her authority ahead of that, continue to sort of hold on to power. Thats the other takeaway over the last two weeks shes got to this point and the conference which is coming up without any real successful threats to her leadership. Many focused on Boris Johnson making a bit of a move over the last couple of weeks it hasnt worked shes in power and likely to see through this brexit process. So many more details still have to be worked out. Well be excited to hear her speech. As brexit talks ramp up, round three of nafta negotiations get underway in canada well hear more about the talks coming up on squawk box with commerce secretary wilbur ross. Still ahead, the countdown to christmas is on im not joking just ten fridays left until black friday which retailers are best positioned heading into the most wonderful time of the year weve got a countdown clock why not i cant believe it. You cant believe it . Thats got to be the big effort countdown clock 135 days dmroglorious Worldwide Exchange will be right back these birds once affected by oil are heading back home. Thanks to dawn, rescue workers only trust dawn, because its tough on grease yet gentle. I am home, i am home, i am home welcome back jamie dimon knocking down speculation that gary cohn could succeed him at the bank. Listen to what he said at the delivering alpha the success of jpmorgan is inside jpmorgan. Let me ask you a question i have enormous respect for gary dont confuse the two. Our company is large, Global Consumer businesses, Cash Management businesses, we have several people who are unbelievably talented. You will want to hear the full jamny diie dimon interview those delivering alpha. Com that speech and interview just posting. The delivery wars just took a twist in news about how lazy americans have gotten, walmart is testing a service that will deliver not just to your door but inside your home so customers can have products delivered to their fridge or freezer. Walmart is teaming up with august home so users can watch the process on their smartphone using the Home Security cameras. Get excited. Were ten fridays away from one of the most yushl day crucial dr retail black friday look at that countdown lock. Joining us with a pulse tech on the sector is stacy witlet thank you very much for joining us i wanted to start with walmart this newest test is one piece of all of the innovations that the retailer is experimenting with i guess overall, what is your take on the Worlds Largest retailer and how much this may or may not move the dial for them yeah, thank noos for that countdown clock. Thanks for the added stress early. Walmart has been doing a terrific job in terms of cleaning up stores, paying people, and doing all the right 101 retail things. Youre talking about restocking peoples fridges when theyre not home this is, you know, not going move the needle here im not sure i would want somebody messing around in your home what they are doing is certainly working on a replenishment program. So is target theyre trying to take on amazon prime. Almost 60 of consumers out there are on amazon prime. Everybody is going after this, trying to get a piece of the pie. Grocery is half the business theyre doing better in the space. Thats the key to winning. You look at toys toys struggrs struggles what a great opportunity for walmart to lead the category this christmas. I believe walmart hat bs the biggest share of toys overall. Lets talk a bit about the Holiday Season we have gotten a lot of holiday forecasts coming out this week looking ahead. Most of them are pretty bullish. Retail investors have been burned in the past what do you take or whats your take on the sentiment going into the Holiday Season this year so the official forecast that you have seen out there are sort of in the 3 to 4 range if you look at investor sentiment, its terrible almost 40 of retailers out there have double digit short positions. Any huge contrast to this time last year when inventories got alined for the first time and everybody was optimistic this year its like investors have been burned. The continued transition to online that is crushing operating margins, Retail Investors are sitting back saying i will not get burned this year again as promotions, all the retail verse said theyre not easing back this year if anything, they will be heavier. You touched on it who are the biggest winners from toys r ss is it not a factor for other toy retailer the biggest deal is that its the vendors. So the vernd vendors get nervoue want to get paid in cash, up front. Thats the real pressure here, the trust factor it helps, it benefits walmart and target who of the big toy suppliers out there. Expect to see really early Layaway Programs from both as they try to grab share from toys r us thats right. I think walmarts Layaway Program has begun to make changes more attractive for consumers. Here we go sta stacy, thank you so much for joining us appreciate it well talk more over the next several weeks. Still to come over the next 135 days, 18 hours, 41 seconds. Coming up, everything you need to know for the trading day ahead and battle of the beverages. Gatorade just got caught bad mouthing its main competitor we will tell you more about atth we will tell you more about atth when we come back. Cloud. We will tell you more about atth when we come back. Cloud. This is a diamond tracked on a blockchain protected against fraud, theft and trafficking. This is a financial Transaction Secure from hacks and threats others cant see. This is a patients medical history made secure while Still Available to their doctor at their fingertips. This is an asteroid livestreamed to millions of viewers from 220 miles above earth. This is ai trained by experts in 20 industries. Your industry. Hello. This is not the cloud you know. This is the ibm cloud. Built for your business. Designed for your data. Secure to the core. The ibm cloud is the cloud for enterprise. Yours. North korea threatens to test a Hydrogen Bomb while iran promises to step up its missile capabilities Global Market alerts stocks back off recent highs as geopolitical tensions rise. And jamie dimon just made some fresh comments on the north korea threat well tell you what he said straight ahe its friday september 22, 2017, youre watching Worldwide Exchange on cnbc. Good morning welcome back to Worldwide Exchange on cnbc. Im wilfred frost. Im Courtney Reagan thanks for joining us this friday morning lets get to the markets in a moment first, north koreas foreign minister threatening to detonate a Hydrogen Bomb over the Pacific Ocean this comes hours after the u. S. Imposed the toughest sanctions yet on north korea irans president said his country will strengthen Nuclear Capabilities without seeking permission from the u. N. Authority. Joining us from tehran is al ali arudzi with the latest clearly sanctions and things were lifted from iran. Part of that deal was no more nuclear develop. Whats the difference between Missile Development and Nuclear Development . According to the iranians a big difference iran says they have no intention of building a Nuclear Weapon, they never have had, and their missile capabilities are purely for defensive purposes they say they have a right to do this they always reference the war with iraq saying they were badly atacked daught attacks during the iran iraq war, and because of that iran needs a defense program. As you mentioned this morning, at a massive military parade, president rouhani said they will start a missile program, they will not seek u. N. Permission, and a new Ballistic Missile was unveiled at the parade it has a range of 1,200 miles and is capable of carrying multiple warheads rouhani reinforced his support for yemen, syria and palestine and said iran will always support the downtrodden countries, despite criticism from the United States theres a lot of tension building between america and iraq wounds are opening up again. We have to see what kind of position europe will take on this europeans are not keen to exit the nuclear program. I dont think they want to make enemies with the United States as well. We are going into uncertain territory again between america and iran and iran has made it clear that theyre in no mood to renegotiate any aspect of the nuclear deal i think we can look forward to more tensions between iran and america. What could those tensions involve if we did see some kind of collapse of the Nuclear Agreement that was reached under the Obama Administration would it be as severe as what were seeing at the moment with north korea . Well, its hard to say. If the deal did break down, if america did pull out, if america did insist on renegotiating certain aspects of the deal, iran would not stand by that and iran has threatened one of their options is to return to Nuclear Activities which means enriching at high levels, opening up centrifuges that will ruffle feathers in america and in europe. That would be cause for more sanctions and we would have a lot of isolation with iran they would they would get more sanctions placed on them. It will be a more difficult situation than before the jpoa ali arouzi for us in tehran, thank you. Lets get a check on the market reaction. Futures are slightly lower despite that sabre rat ming going on rattling going on around the world. We pulled back up a touch. If markets were to open up now, we would still technically be in the red. If we can look at the tenyear this is something were watching closely as always. Especially after the fed meeting this week. Were sitting back down from where we were prior with the fed meeting reaction so 2. 257 . Asian equities are soft today in light of the ongoing rhetoric not too soft down about 0. 8 for hong kong, but the affected markets, korea, and japan, down a little bit less than that european trade is mixed. We had good pmi data across the eurozone this morning. That has led to a strengthening of the euro. We have not had much of a positive reaction to equities. Lets check in on oil prices. We hit a fourmonth high yesterday in the session, but pulled back to close slightly lower, also a little lower this morning but hanging in at 50 per barrel range for wti if we can look at whats going on with the dollar we see the euro a bit stronger against the greenback. As far as the pound, were pretty flat here the dollar weaker against the yen. If we can move on and check out gold prices. It has been down several days. 1. 6 , hitting a fourweek low yesterday. We recovered just a bit and up 0. 4 just a touch above 1300. Perhaps this is some of that protect shup buying against whats going on in the rest of the world politically. Lets get back to the big news out of north korea. That nations foreign minister threatening to detonat Hydrogen Bomb over the Pacific Ocean. A eamon javers joins us from washington with the latest. Reporter the president and treasury secretary yesterday speaking at the u. N. Seemed to signal new cooperation with china in terms of cracking down on north korean Financial Transactions with chinese banks. They said that was an encouraging sign they also unveiled new sanctions via an executive order by the president of the United States heres has we know about what the sanctions will do, and their intentions the president saying that they target the sources of funding to north korea. They expand sanctions to individuals and companies who finance or trade significantly with north korea and identify new industries that treasury can target with sanctions. They go sector by sector and list which industries can be affected they said the Chinese Central Bank had sent a message to chinese banks telling them they need to comply with the new u. N. Sanctions blocking north korean final transactions if thats held up that could be a significant piece of cooperation between washington and beijing that we have not really seen before in this north korean puzzle so u. S. Officials suggesting that was a positive development. Over in north korea, not greeted warmly kim jongun releasing a Statement Last night blasting President Trump. Heres what the north Korean Leader had to say. He said on behalf ochf the dignt and honor of my state and people and on my own, i will make the man holding the prerogative of the supreme command of the United States pay dearly for his peach calling for totally destroying the dprk, i will surely and definitely tame the mentally deranged u. S. Dotard with fire. So what steps will north korea take will there be another nuclear test the way weve seen over the past couple of months. Lets talk about facebook. They say they will begin sharing information now with congress on some 3,000 ads sold to russia what do we know about this facebook has been under so much pressure over the past couple of weeks since the announcement in which they said that russian agents had anonymously purchased ads on facebook during the president ial campaign designed to help donald trump and hurt Hillary Clinton using divisive and inflammatory rhetoric they said all that, but didnt release the content of the ads yesterday Mark Zuckerberg took to Facebook Live to say that facebook will be turning over 3,000 of the ads what they found so far theyll turn those over to congress, they say, which is the appropriate venue for this of course Mark Zuckerberg knows that once they turn those over, its likely that those will leak and get into the Public Domain and the rest of us will be able to see what the russians were saying anonymously on facebook during the course of the campaign here is Mark Zuckerberg yesterday. Going forward and maybe the most important step were talking is were going to make political advertising more transparent. When someone buys political ads on tv or other media, theyr required by law to disclose who paid for them, but you still dont know if youre seeing the same messages as everyone else so were bring facebook to an even higher standard of transparency not only will you have to disclose which page paid for an ad, but we will make it so you can visit an advertisers page and see the ads theyre running to any audience on facebook. As you can see, that goes further than just the idea of the russian ads, what facebook is saying there that theyll broaden the disclosure in terms of political advertising generally on the surface they also said theyve been in contact with election commissions in countries around the world. I agree, it does go further, but i take slight issue with his tone of saying well go even further on the transparency issue, because its sort of about time, all sorts of issues of data intrusiveness. They realize that they were in untenable positions you cant say the russians meddled in the u. S. Election using our service, in a sophisticated effort that ran 3,000 ads and then hide the ball and not show what ads were you owe that to the American People is what facebook decided. There more broadly theyre f trying to get on the side of democracy and transparency were so far behind regulations on the internet versus Television Ads where the candidate comes on and says im candidate joe, i approve this message we dont have those regulations forcing that disclosure on facebook, twitter and social Media Services this is a step in that direction. Thank you very much have a great weekend speaking of facebook, time for our top trending stories facebook will also start serving ads based on your location including the stores you visit users have the ability to opt out by not allowing the app to track your location. I dont know if folks know, but a lot of apps actually track your location and send you push notifications while in stores. Because you opted in without realizing it i dont think its enough of a back out to say you can on the out of it. Almost all of these apps hardly work unless you allow Location Services you dont know what youre opting into. Even if you say yes to Location Services, if you dont, some are like we dont know where you are, we cant allow you access at all to the app exactly i think its all extraordinarily intrusive. Bring on that extra regulation that evens the playing field. Gatorade is in hot water the company reached a 300,000 settlement with california for bashing water in the mobilegame bolt players guide track star usain bolt around while he collects coins and bottles of gatorade, but he must avoid water because it slows him down. The California Attorney general said gatorade portrayed its product positively and said water had negative effects when i ran the marathon, i had a little too much gatorade, last five miles, i got a little sick then i couldnt have water i should have just had water trix is back to its old ways they are reviving artificial flaifrs a flavors and colors after going all natural. Trix says customers have been complaining after debuting a natural version of the breakfast fo food now classic trix will be back on shelves in october alongside natural. I dont think any cereal available in the United States of america is natural. The amount of sugar on everything is unbelievable i had raisin bran this morning, nothing but sugar. The sugar makes it tasty, did you taste it like every cereal here is covered. Now im used to it if i go home, im like what is this bird food youre feeding me we will switch focus, moving on to sports the rams beating the 49ers 4139 last night making it the highest scoring thursday night nfl game ever the loss deals another blow to the 49ers. They theyre 03 as they hit the road for a threegame stretch was there anybody in the crowd . Thats been a problem. No one is sitting there for that stadium. Kind of a shame. The rams moving to l. A yeah. The 49ers, and both teams have had low attendance. Should have been there last night. 4139, good game. Germans head to the polls on sunday to determine the next chancellor what you need to know and how the markets could react straight ahead. Fiberenabled broadband to more than 65,000 fans. And why a leading car brand counts on us to keep their Dealer Network streamlined and nimble. Businesses count on communication, and communication counts on centurylink. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Welcome back to Worldwide Exchange. Im wilfred frost along with Courtney Reagan. Time for our mustread stories my pick is from the times, its titled the bluffers guide to sundays election in germany penned by matthew elliott. It is exactly what title says, its a bluffers guide to the german election. I enjoyed reading it it has the latest on this election and a look back on the last three elections that Angela Merkel has been involved in, and how they play out and how this one is slightly different. Well worth the read if youre not yet in the know of sundays vote you said you dont think this will ab market mobe a market mot we dont have candidates like le pen or wilders. We have the afp in germany, but theyre polling in the low teens. Not likely to be involved in coalition discussion so its merkel followed by the spd, also pro europe its certainly interesting to keep an eye on probably not going to affect u. S. Markets my pick is in the washington post. Its penned by wilbur ross these nafta rules are killing our jobs hes in favor of renegotiating nafta, the rules of origin which he says were intended to restrict nonnafta content in the final manufactured goods that we buy. He says our nations ballooning trade deficit gutted american manufacturing, killed jobs and zapped our wealth that will change under President Trump and rules of origin are just the beginning. Of course its a complicated issue, nafta i spoke with the best buy ceo earlier this week, it is an International Company because they operated both mexico and canada he said the rules do need to be modernized certain things didnt exist then that exist now its a complicated piece of trade. Wilbur ross will be on squawk box to talk about it. Thats right. Stay tuned throughout the morning because he is the headline guest coming up on squawk box today commerce secretary wilbur ross, first on cnbc interview. Hell talk about nafta, also trade with china off the back of this u. N. Week, lots of news to discuss there. Also bob moritz, hes back from beijing. Hell share his take on everything from trade to u. S. Tax reform squawk box continues straight after Worldwide Exchange. We still have more to come on Worldwide Exchange. Stick with us. The latest threats from north korea and iran keeping investors on edge. A deep drive into the Global Market reaction when we return futures slightly lower youre watching Worldwide Exchange on cnbc. For the holidays, we get a gift for mom and dad. And every year, we split it equally. Except for one of us. I write them a poem instead and one for each of you too that ones actually yours. That one. Regardless, were stuck with the bill. To many, words are the most valuable currency. Last i checked, stores dont take words. Some do. Not everyone can be the poetic voice of a generation. I know, right . Such a burden. The bank of america mobile banking app. The fast, secure and simple way to send money. Welcome back to Worldwide Exchange. Jamie dimon weighed in on the risk of nuclear war from north korea. Heres some comments he made overnight to cnbc. I think it would be a mistake to allow a person he whos like that to have a Nuclear Weapon. That Nuclear Weapon can reach tokyo, beijing, shanghai, manila, seoul, korea i think its a scary concept most peoplethat have Nuclear Weapons today responsible. He doesnt seem to be responsible. So, no, i think that would be a mistake. Jamie dimon speaking in new delhi, india this morning. Lets talk more about the geopolitical risks out there joining us is stevie inine iniin whiting. Jamie dimon also said its not an eventuality he expects to happen, to knit ahit any of thoe cities he listed is that why markets are relaxed this morning . Selling in asia, but not too pronounced we have to remember this is a seven decade long cold war how long it continues as a cold war is unclear the technology is ever more deadly, dangerous. We cant tell theres some sort of nuclear conflict. I just remember, too, if we look at since world war ii, theres been 20 cases that we can come up with, six involving the koreas, you know, where theres been some serious security threat, and our Financial Markets have been higher, global equities, u. S. Equities higher one month later on average we want to be careful. Something that ends a business cycle, a downturn that lasts a year and a half is different from that. Using this in a market context is not the right way to look at the severity of the event. Lets bring it back to markets. The big event of the week was the fed. We saw a big reaction in yields afterwards, but that already changed direction. It was a quick oneday reaction, the dollar of tsofter yesterdayd today. Its fortunate that the reaction was rather small initially. I dont think in the grand scheme of things the Federal Reserve is anything other than going very, very modestly slowly in terms of tightening what they plan to deliver is half historic tightening cycle markets have been priced for a more dovish fed than that. We had powerful rallies and markets that we overweight in emerging markets weve seen a significant speculative repositioning now short the u. S. Dollar, long u. S. Treasuries so that can create bumps in the marketplace. We want to be careful that the u. S. Dollar rallied for six years heading into 2017. There was expectation for massive Interest Rate outperformance in the United States thats not going to happen were sticking with our comfortable overweights. Lets talk about your picks fof inve for investors. Youre neutral for the United States, despite the fact we had that rally thats been strong for quite some time. The dow has been up 600 points or something in the last nine sessions why are you not so excited about the u. S. What if we get tax reform or see 3 gdp tax reform means well have a refocusing on u. S. Assets for a while. Tax reform would affect growth for a year and change things meanwhile if you look at international equities, we have a 40 discount in emerging markets valuations below their longterm average valuation. Places like brazil are just coming out of an economic slump. The u. S. Is in an eightyear expansion. If you look, weve been overweight u. S. Assets, telling investors to overweight the u. S. Dollar for most of the last several years, but that played out in the marketplace already the opportunities are International Assets and equities side. Fixed income the u. S. Ranks more competitively with higher yields steven, thank you very much as always. About 20, 30 seconds left. Chart of the week . I look at retail, with the rlx, or the xrt, because if you can see here the xrt is down, but we have bullish holiday forecasts. The sentiment is not following along. I went for the banks etf. A steady and pronounced rise over the course of the week. Yields have risen following fed tightening that is it for Worldwide Exchange. Have a lovely weekend. Squawk box is next for years, at t has been promising fast internet to small businesses. But for many businesses, its out of reach. Why promise something you cant deliver . Comcast business is different. We deliver superfast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at t. We do business where you do business. Iran promises to step up its missile capabilities the latest straight ahead. Traders are on high alert. Geopolitical risks intensify a full rundown of the reaction in the Global Markets. Facebook is handing over 3,000 political ads to congress that were likely purchased by russians during the president ial campaign if you believe in numerology or that tomorrow may be a problem, get your trades set up the 23rd is supposed by theend of the world squawk box begins now good morning welcome to squawk box on cnbc. Were live at the Nasdaq Market site in times square im andrew ross sorkin, along with joe kernen and melissa lee. North koreas foreign minister threatening to detonate a hyd Hydrogen Bomb over the Pacific Ocean. This hours after the u. S. Imposed the toughest sanctions yet on north korea china also stepping up sanctions against north korea. The white house saying the peoples bank of china has now ordered all chinese banks to stop doing business with that nation a lot more on the north korea threat in just a couple of minutes. Separately, news breaking a few hours ago that irans president said his country will strengthen