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Overnight. Big story. Many markets are still closed for the Lunar New Year holiday, but the ones that were open got absolutely slammed. The nikkei in japan closing down 5. 4 . Its been dropping for five of the last six sessions. Main culprit, the dollar versus the japanese yen, dropping to its lowest level since november 2014. A strong japanese yen, a weak u. S. Dollar. Japans finance minister calling the yens moves, quote, rough, and saying hell be watching it closely. As youd expect, exporters in the japanese market closed down sharply. Toyota, nissan, honda, and sony all among the biggest losers. And check out the japanese tenyear government bond. The jgb. Weve been talking about that for a while. Overnight, the yield fell below zero for the very first time. More negative territory for sovereign bond yields. Its absolutely stunning. And i think the yen point clearly crucial for this nikkei reaction. Lets also highlight the point that yesterday the nikkei was up slightly. Then we got this rout across europe and the u. S. , wiping market cap, you know, across the equity markets globally. Asia wakes up. It has to play catch up. And theres only two big markets open in australia and japan. I think the rest of asia is closed for this Lunar New Year. Clearly another thing to point out. The nikkei was up yesterday. Its playing catch up, i think. Though part of it is this break down in trust and efficacy from Central Banks. How many weeks ago, less than two weeks ago, the bank of japan was out in a specific move to try to weaken the japanese yen. It went to negative Interest Rates. It has not gotten a weaker yen. I think just generally, one of the big fears of 2016 for investors has been that Central Banks no longer are all powerful. Weve got to negative rates. This is marginal effects that Central Banks can have. Even scarier looking ahead to janet yellen testifying on the hill tomorrow, which well talk about. Absolutely. Right now we said the nikkei was down, almost stocks selling off down under. The main index in australia down by nearly 3 . Lets have a look at european trade. Thats in full swing. Were actually a little bit positive today. Of course, sharp, sharp declines across europe yesterday. You might even say european financials were leading u. S. Moves yesterday as well. We saw big declines for the likes of Deutsche Bank and Credit Suisse today. A little less bad. We were lightly up at the open. Now down a little bit. The ftse 100 holding just above positive territory. France and germany down a little over half a percent. What does this mean for u. S. Futures today . Lets have a look. We are called to open down but only slightly. Weve just softened a little in the last half an hour as europe has softened as well. Clearly that change in sentiment not as pronounced as this time yesterday. After a more than 200point drop yesterday, recovering from a 400point drop, these moves are crazy with the nasdaq getting hit the hardest. Some people are still blaming oil. Lets show you the commodities picture. Oil did fall again yesterday. Its bouncing back a bit. 2 today. Wti crude has managed to go back above the 30 a barrel level. Well keep a close eye on that for you. That oil stock correlation is still very important. The Brent International bench mark not gaining quite as much. Gold has been one of the stories of 2016. Its been one of the only places thats actually working. Strength in gold. Were going back to highs we saw last june. Gold yesterday above 1200 an ounce. Were just below that right now, off half a percent. Though it has made a huge move higher here over the last few weeks. This is really interesting. If you look at that rise in january, february, so the 2016 move in gold, but particularly yesterday, a 3 move. Thats very, very big for gold in the scheme of the last 18 months. When you think about the last 18 months, gold has hardly moved e despite japan and europe. The fact we have started to see gold respond, particularly yesterday such a big move, does that mean things are about to get much worse . Or does it mean risk sentiment is at its trough because gold is finally responding . I dont know which of the two it is. The fact that gold is responding is definitely a point. Its something were going to talk about. It also gets to that trust factor in Central Banks. Finally getting a move in gold. On the plus side, its meant a weaker u. S. Dollar, which is something Corporate America very much would like to see right now as it continues that strong dollar to erode earnings. Another sign of the riskoff sentiment, particularly in the face of a supposedly tightening fed, is of course the tenyear note. 1. 745 were looking at today. Weve seen yield compression pretty much throughout 2016. Certainly picked up in the last couple weeks. If we look at the twoyear note, similarly big moves there. Were now at 0. 6 . Not negative. Exactly. Thats what you need to know. But very low, nonetheless. Lets have a look at the dollar. The dollar is not moving too much today. In fact, just that yen move the most pronounced one. The pound and the yaeuro relatively settled. Earlier overnight, we got into 1. 14 levels. Among the hardest hit sectors of late is financials. Take the u. S. Mar Morgan Stanley posting its biggest oneday decline since 2012. Shares are down 29 just since the start of the year. In europe this morning, Deutsche Bank saying it has sufficient cash to service even its riskiest debt this year. We mentioned the cds story. Shares of Deutsche Bank plunging about 10 yesterday. Theyve been absolutely hammered, the hardest hit so far this year. In the u. S. , the s p financials index is the worst performing sector of 2016. Its now down more than 20 since its july high. Goldman sachs weighing the hardest on the dow yesterday. Lets pause on Deutsche Bank. I think thats been one of the sparks of the turmoil of the last two weeks. European banks more broadly, but Deutsche Bank in particular. For me, this isnt a systemic credit question. I dont think investors ive spoken to are saying were worried theres something in the Balance Sheet there. Then what is it . I think weve seen an aggressive rerating of bank stocks in europe and thats been a capital issue more than a credit issue. I think people are fearful were going to have to see more capital raises by these banks. Dont forget, theyve all had big raises anyway. If youre suddenly thinking theyre going to have to raise again, it would be a big hit. Thats why weve seen this aggressive rerating. I dont think investors are thinking this is something systemic. We could contagion across all sectors. This is clearly a much bigger move than anyone expected. Thats hard to explain, but i dont think its something systemic. I dont think people are worried particularly about that. Because theyre looking at the credit default swaps and these brutal moves. 10 moves in a day. But 2016 has seen big moves. Firstly sparked by china. Joining us on the Cnbc Newsline to help make sense of the major market moves, guy adame. Thanks for joining us. Once again, it seems u. S. Markets have been led by international developments. Would you say that europe and european banks are the things that spooked markets yesterday . 100 . And great job. You guys are in your sixth week. I think you have a great rapport. Its become a mustwatch show at 5 00 a. M. Congratulations on a great show. We manage to hold it together for an hour. Well, its genuine. To answer your question, absolutely. Clearly theres something going on with Deutsche Bank. Youre talking about a bank with probably the large rest derivative book in the history of the world. Clearly there are some concerns. I think you addressed it earlier. The Central Banks, in my opinion, have lost control. Bank of japan going to negative Interest Rates. Youre talking about the third biggest economy on the planet. To me, that was the height of just complete again, i think theyve just lost it. Now theyre pulling all the different levers. At this point, whats to stop them from continuing on that path . So when Central Banks have lost control, the market confidence erodes. I think thats what youve found now. When you see currency moves on 2. 5 , 3 on a daily basis when i did this for a living 15 years ago, these were moves that took weeks, if not months to happen. It really has been amazing, guy. Its just something that by definition cant end well. In a global race to zero as everybody tries to torch their currency, how does it end well . And whats the last resort . I think thats one of the reasons gold is doing as well as its doing. So where do you put your money . Where are you finding safety . I know you have been a fan for treasuries. And i should give you a lot of credit. Ive given you grief about the fact you predicted the yield would go to record lows. And its gone in your direction, pretty much all year. Sara, i appreciate that. I think its going to continue to go that way. If you look at tenyear yields in the u. S. Yielding 1. 75 , just think about it on a relative value basis. You almost got to believe its going to continue to grind down. That sort of flies in the face of everything youve been told over the last year. My contention is, yes, although the fed controls the front end of the yield curve, thats it. They control nothing else. Our fed has lost i dont really of our markets to a certain extent as well. And theyre sort of getting bailed out because our dollar is moving to the downside. But a lot of bad things are happening on our side of the equation as well. And theres really theres not a lot for them to do at this point. Theyre now at the mercy of the market. You mentioned financials. On top of what youre seeing in europe, this flattening yield curve doesnt help either. A lot of people own these growth stocks, facebook, amazon. The nasdaq is down 5 in the last two days. What do you do if you own those stocks . You needed to have a plan ahead of time, respectfully. Im not trying to play monday morning quarterback here. What i will say is when a name like google reports and you see the move from 780 to 820 in the after market, you come in the next day, granted with the lousy tape the stock is trading back down to the 780 level, but at a certain point when it goes from 780, below 700, you have to ask yourself, whats going on . Is it time . If you basically you have to have a plan or you plan to fail. Thats whats going on here in terms of trading. I happen to think google at these levels is interesting. I dont think its rich on valuation. I think netflix is another great example of a stock that rallied post earnings, gave it all back within a 24hour period. That price action suggests that something is wrong with the stock. Maybe not necessarily the company, but somethings wrong with the stock. So when you get into names, you have to have an exit vat ji, if nothing else. When it hits that point where you said i need to pull the rip cord, you got to pull it and live to fight another day. Guy, thank you for calling in this morning. Thanks for the support on the show as well. See you on fast money later. Looking forward to it. Thanks for having me. Now to todays calendar. After a late day monday, the data flow picks back up today. The National Federation of independent business puts out its monthly Small Business optimism at 6 00 a. M. Eastern time. Its followed by december wholesale trade and job openings and Labor Turnover survey jolts. Thats become a fun one. 10 00 a. M. Then the earnings kickoff. Cocacola, viacom reporting earnings before the bell this morning. Disney is out after the close. Make sure to check out our interview on squawk on the street with cokes coo James Quincey after the earnings report. He was Just Announced number two, making him a likely successor to take over as ceo. Absolutely right. Ill certainly be watching. Other stocks to watch today, yelp reports smaller than expected Fourth Quarter loss. The results hitting about three hours early on monday due to an error by pr news wire. Shares slumping about 11 in regular trading. A slieg slowdown in growth of its mobile app users. Yelps cfo will step down later this year. 21st century fox reporting a drop in Second Quarter revenue. Its the third time in five quarters fox has had to cut its outlook down premarket. Gap samestore sales fell 7 in the Fourth Quarter, including a 14 decline at Banana Republic and 8 drop at old navy, which had been a bright spot. Shares rose 3 in after hours as gap expects adjusted profit for the year to be at the high range of its forecast. More stocks to watch today, sanofis Fourth Quarter profit fell sharply. The french drug maker it predicting earnings will be stable in 2016 and says sales of its new insulin drug have more than doubled already. Xpo logistics says its rejected bids for the shipping business it acquired. The ceo telling the wall street journal he plans to hold on to the unit. The division had been on sale since last summer. Truckload shippers typically carry goods on Long Distance hauls for one customer per truck. Shares unchanged. Alaska air has reportedly set to order 60 embraer jets. Still to come on Worldwide Exchange, japans nikkei plungesing overnight. Well see if investors in europe and the u. S. Get spooked or if they can shrug it off. Your trade of the day is coming up after the break. In new york state, we believe tomorrow starts today. 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Voila. Remotes you are back. The x1 voice remote is here. X1 customers get your voice remote by visiting xfinty. Com voiceremote. Welcome back to Worldwide Exchange. A very good morning to you. Lets get you up to speed on the overnight market action. Im afraid more red. The nikkei down sharply, 5. 4 as you can see. Do bear in mind that yesterday the nikkei was up to the tune of about 1 . We had big declines in europe and the u. S. As asia woke up this morning, the two major markets that are open, japan and australia, bearing the brunt. The Chinese New Year holiday, meaning lots of asia is closed. Therefore a big reaction in the markets that are open. Australia was also down. Lets have a look at the japanese tenyear government bond, falling below zero for the first time. This is a ten year. Not just a one or two or three. So all of the first ten years of the japanese bond market in negative territory. That also has seen separately the yen rally today. Now, a lot of red in asia. U. S. Futures, although in the red, not too bad to look at. The dow expected to open down by about ten points. Nothing like the type of moves we saw yesterday. Of course, the dow at one point down 400, although it closed 200 points down. Sara . Love when you do that. Around negative rates. Love the reaction. Weve got todays trade of the day. Volatility is spiking as the market selloff accelerates. How can investors trade the rising volatility using history as a guide . Our data team looked back for which Etf Securities tend to move if the vix continues to rally. Turns out investors flock to etfs like the tlt, the treasury bond etf and gold related etfs. All, by the way, have been working very well over the last few weeks. On the flip side, emerging market countries, the materials and the energy sectors, those are the worst performers. For more, you can go to cnbc. Com and check out cnbc pro. Worth saying on the vix, that fear index on wall street, we are elevated and rising on those levels. We are not as high as the panic moments during last summer when china caused a major spook about its currency. Which saw a huge one or twoday move. This year, the levels have been lower, but its been six weeks. Staggered. Six weeks of elevated risk aversion. I go back to the bond markets. Not just in japan, but in the u. S. Gold yesterday, thats a clear example of risk aversion. And jeffrey gunlock of double line says hes watching that level. He says maybe itll get to 40, then we could see a bottom in the junk bond market, which is one hes worried about. When we come back, its primary day in New Hampshire. Well talk expectations for both parties, plus talk about another wellknown name who could be ready finally to jump into the race. First, as we head to break, heres todays Weather Forecast from the weather channels jen carfagno with storms on the horizon. On this fat tuesday, weve got winter all across the midwest, the ohio valley, the northeast. All the sudden after a fairly mild start to winter, we are now getting snowstorm after snowstorm, and more snow today back into the area. Fairly light, moving into philadelphia, new york city. Snow showers nonetheless by the end of the day. In the south, cold too. Temperatures in atlanta running more than 15, 20 degrees below average. Youre going to feel that all the way down into new orleans and mardi gras. Theres going to be a windchill factor making it feel like 40 degrees best Case Scenario today. A record of 88 in los angeles today. Were likely going to hit a record today. Phoenix has started the first 80degree stretch of the season. Its there to stay for the week. Plus, great weather today in denver to celebrate the parade. Welcome back. A very good morning to you. Its primary day in New Hampshire. Nbcs tracie potts joins us from manchester this morning with a preview of what to expect today. Tracie . Reporter hi, wilfred. Were expecting first of all Hillary Clinton hoping to become the comeback kid again here like she did eight years ago. Also, were expecting to learn with which of these four, possibly five, republican candidates could come in second to donald trump if, in fact, the polls are correct and hes got a huge lead here. Weve already seen some of the early results. Three small towns voted just after midnight. Kasich and sanders won tiny dicksville notch. Cruz and trump, sanders and clinton tied the others. Lines out the door. Reporter candidates continue their final arguments today. Its Christmas Eve for politicians in New Hampshire. And you all get to play santa claus. This is now crunch time. Reporter donald trump on the competition. Theyre politicians. All talk, no action. Theyre good at one thing, getting reelected. Reporter trump has a huge lead here, but the number two spot seems up for grabs. Polls show cruz, rubio, even kasich or bush have a shot at it. You are the ones that is going to make this happen. Get up early tomorrow and vote. Get up early tomorrow and get your friends and family to vote. Reporter Bernie Sanders fired up supporters. Hes way ahead of Hillary Clinton in the polls. I will ask you respectfully to please consider giving me the chance to do this job for you. Reporter todays the last day, and polls show more than half the electorate is undecided or willing to switch their vote at the last minute. Now, theyre expecting a huge turnout here, wilfred. The secretary of state said that they are looking at maybe half a Million People in this state actually voting. That would be twothirds of all voters. It is sort of interesting with such a large independent contingent there, tracie. Can you run us through the timing of when well get the results today, when well know who wins New Hampshire an when the candidates go off to South Carolina . Reporter sure. Exactly. So the polls close east coast time at 7 00. Depending on how those results are rolling in, how close some of these races might be, it could be fairly quickly, within an hour, within two hours, that we start to see some results. What the polls have told us is true, then as these results start to come in, well start to see whether or not the huge leads that Bernie Sanders and donald trump have, in fact, hold true. If thats the case, we probably get some results earlier rather than later. What could take a long time is to see which of these four or five republicans end up coming in second or third. Absolutely. Tracie, thank you very much for that. Sara, both tracie and you in red today. Is that a we were just feeling patriotic in honor of the New Hampshire primary. Meantime, it is the candidate not on the ballot in New Hampshire today getting a ton of attention. Were talking about, again, former new york mayor michael bloomberg, telling the ft he is considering a run for the white house. Bloomberg has criticized the quality of the current debate in the president ial race. He says he is, quote, looking at all of the options. If a run is in the cards, bloomberg suggests he would need to start putting his name on the ballots by the beginning of march. Again, this was a big deal because previous reports had indicated and sort of reported according to people familiar he was looking into it. Hes actually telling the ft now, with critical words about the debate process being unfair to voters. This is, as you say, big news because hes clearly admitted it. Still rests on hillary, i think. If hillary gets the nomination, he probably steps back. Well see. Still to come on Worldwide Exchange, this mornings top stories, including that big selloff in asia overnight. Check out our official Worldwide Exchange facebook page. Like it for behind the scenes clips, guest commentary and news to get your day started. Lots of silliness there. 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The most common side effects are mild to moderate nausea and vomiting. Antiflu . Go antiviral with tamiflu. Watching tvs get sharper, oh remotes, youve had it tough. Bigger, smugger. And you . Rubbery buttons. Enter the x1 voice remote. Now when someone says. Show me funny movies. Watch discovery. Record this. Voila. Remotes you are back. The x1 voice remote is here. X1 customers get your voice remote by visiting xfinty. Com voiceremote. Good morning. Hold on to your hats. A volatile trading session already and the sun still isnt up on wall street. India isnt liking Mark Zuckerberg today. And will the earnings force be with disney, or are cord cutters too powerful to stop espns slide. Its tuesday, february 9th, 2016, and youre watching Worldwide Exchange on cnbc. Good morning. Welcome to Worldwide Exchange on cnbc. Im sara eisen. And im wilfred frost. While you were sleeping, heres what happened in asia. Many markets remain closed for the Lunar New Year holiday. The ones that were open saw stocks slammed. The nikkei closing down 5. 4 . Its been dropping for five of the last six sessions. The dollaryen dropping to its lowest level since november 2014. It had fallen further than it was already. It hit the 114 handle. Its now at is 15 its now at 115. 36. Exporters closed sharply down. Toyota, nissan, honda, and sony all big losers. Worth pointing out, of course, that yesterday japan was slightly up. Then we had those big falls in europe and the u. S. , given that most of the big liquid markets in asia are closed. Theres been an outside response by the nikkei today. Check out the japan tenyear government bond, the yield falling below zero for the first time. Quite extraordinary for a tenyear government bond, no matter what the central bank is doing. It makes you wonder whether Central Banks are going after their currency or after their bond markets. Theyre getting what they want on bonds. Just moving further into negative territory. But its not helping economies. Theyre losing the battle against inflation. And theyre now losing their battle against their currencies, with japan not able to keep its currency weak. Or it begs a bigger question, are they totally desperate, running out of things to do and throwing everything at it. That is really monetizing the curve. Its not the big kind of moves we got to see this time last year when the ecb introduced qe for the first time and it was a big surprise. The only central bank thats got ammunition to make a big move is the pboc. I would say the fed also. The fed is in a tightening cycle. Janet yellen is going on the hill tomorrow before the House Financial Services committee, and a lot of people are expecting her and are hoping that she will pare down the rhetoric when it comes to raising Interest Rates. No hurry from the Federal Reserve. They do have the power to do so. Some on wall street have been saying the next move is going to be easing. The fed could change direction. Clearly theres room to cut the yield. But do you really want to see negative rates or low rates for the long term . I certainly hope the British Central Bank doesnt do that. They also have to signal they have the tools and theyre willing to use them. Lets show you whats happening with europe in early trade. Mario draghi talking tough on easing. The german dax down 20 from its recent high. The dax is flat right now but has been taking a beating over the past few weeks. Were seeing pretty much calm in europe overnight after the big selloff we saw in japan. Potentially a reaction to what we saw in the u. S. Sharply lower close yesterday. Lets show you what futures are doing. Were looking at futures pointing to a higher start. Theyve been lower all morning. There is a sense of calm. Its not the 100point moves we saw over the last new days, though it is early. We get Economic Data later in the session. Dow futures now up 17. S p futures up three. Nasdaq futures up nine. The nasdaq, the techheavy index s the closest to bear market territory, which would be down 20 . Were about 18 Federal Reserve t 18 from the highs we saw last june. Lets have a look at commodity prices. Higher to the tune of about 2. 7 for wti. Gold was really the main story yesterday. Bouncing about 3 . The chart highlights the move weve seen since the start of the year. Of course, that safe haven reacting to the bearishness thats been out there. In particular, that 3 move yesterday, one to note. Gold over the last 18 months despite the debasement of various currencies around the world has been very slow to respond. This move yesterday and over the last month, something worth noting. In corporate news, google ceo is set to become one of the top eight executives of a publicly traded firm. This after alphabet awarded him restricted stock worth nearly 200 million. He took over as chief in august. Staying with tech, a set black for facebook. The companys efforts to roll out basic Free Internet services to the masses took a hit in india. The country launching new rules to prevent Internet Service providers from having different pricing policies for accessing different parts of the web. So far this year, shares of disney are down more than 12 on cord cutting fears. The dow component will report earnings today. While the force of star wars bol stered the most recent quarter, theres another area theyll be yieg. Landon dowdy has the story. Expected to report earnings of 1. 45 a share on revenue of 14. 8 billion. Here are three things analysts will be watching. The biggie, espn subscribers. Theyve lost millions of subscribers as customers are cutting the cord. Also a expectations for the new disney shanghai park. Plans expected to move forward even with slowdown in china. Number three, increasing strategy around hulu as a way to combat subscriber losses. As a bonus, star wars was a force here in box offices but not so much with chinese audiences. Well see if that plays a role. Down 21 over the last three months. Landon, thank you. Now a look at todays top trending stories. Viacom will start selling ads through snapchat. The multiyear deal is an effort to connect with millennials and for snapchat to beef up revenue. The companys ceo is expected to expand on the deal on the Quarterly Earnings call later today. T funny they announce it the day after we join snapchat. Viacom needs to be cool again. Hardest hit media stock last year. Do you think by us joining snapchat we become cool . We tend to set trends. This is just the beginning of the potential for snapchat. Were trying to learn it. I still kind of dont get it. Oscar nominees will definitely not go home empty handed this year. The goodies in the 200,000 gift bag include a tenday firstclass trip to israel, a year worth of unlimited audi rentals, a 15day walking tour of japan, and a lifetime supply of skin creams. This is crazy. Now id be like, who cares if you lose . Only actors in the best acting and best directing categories. Probably the people who wont even use those potential gifts. Its ridiculous. Monica lewinsky is launching a new Emoji Keyboard in honor of Safer Internet day. She says the idea is for people to feel less alone when bullying incidents happen online. Very nice idea. Im a fan of emojis myself. I thought you were going to say a fan of monica. When youre rude to me on twitter, im going to fight back. A mean face . A bullying Monica Lewinsky emoji. Future search and rescue missions could be led by hordes of robot cockroaches. Researchers at cal berkeley found the insects exoskeleton is unique ly automobile to fit into small spaces. Aech robot would be fitted with sensors and part of a genre of soft robots, which means they can stretch, contort, and squeeze into small places. Anything that can help, certainly supported. During fukushima in japan, they sent robots in. A lot of practical uses. Hopefully they work and make a difference. Up next, this mornings must reads. Facebook, amazon, netflix, and google, the socalled f. A. N. G. Stoc stocks, are getting crushed, bringing down the overall markets. This morning, economists questioning those big names. Do stay tuned. Youre watching Worldwide Exchange on cnbc. Friends coming over . Yeah, so . It stinks in here. Youve got to wash this whole room are you kidding . Wash it . Lets wash it with febreze. For all the things you cant wash, use. Febreze fabric refresher whoa hey mrs. Webber inhales hey, it smells nice in here and try pluggable febreze. To continuously eliminate odors for. Up to 45 days of freshness pluggable febreze and fabric refresher. 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Call 1800 lifelock or visit lifelock. Com sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Youre watching Worldwide Exchange. Now to todays must reads. The stories that caught our attention this morning. My pick is in the wall street journal. Its titled bernies wall street slander. The author, finally someone standing up for wall street. Bernie sanders says wall street is fraud, so the authors questioning, is sanders sugge suggesting some large proportion of those 900,000 people that work in Financial Services is in on the fraud that every manage among them is a madoff . And if they are criminals, he alleges, does he mean to put a few thousand of them behind bars . Making the point here that 6 Million People work in a financial related industry in this country. 900,000 in Financial Services. Why arent people questioning what Bernie Sanders is saying when he says that wall street is fraud . Theres a lot of wall street bashing in this campaign. I could not agree more. And clearly this is a populous stance. This is the attitude from whats left of the financial crisis. If this is going to be the center piece of his campaign and his pep rallies, why not question exactly what he means by that. I couldnt agree more. I have to have say as well, banker bashing, as its called in the u. K. , even more severe in europe. You wonder when is this set to get a little bit of a break, in the media at least. It resonates with the american public. This election, eight years later, became a referendum on the financial crisis. Switching to tech for my pick, which is in the financial times. An interesting article saying huawei, xiaomi and lenovo will snatch at apples crown. Samsungs world market share has fall frighten oen from onethir onefifth. Apple may be a little more trekked but certainly under threat. This article goes on to talk about other u. S. Tech firms as well as apple. It says until recently, these chinese tech groups largely focused on the domestic market, but increasingly, they have global ambitions. The Big Tech Companies may soon be competing more directly with the chinese companies. Google is a good example of that. Such dominant share in the English Speaking world. Very much behind in china. Its ahead with android operating systems. I think at the moment, the competition is at the low end for these companies. As these Companies Get bigger and better, i think theyre going to face competition across the board. And more global. Alibaba going public in the United States in the biggest Public Offering ever. What are the global ambitions of these chinese companies, which have done well in their own market. All right. Were close to the top of the hour. That means joe, becky, and andrew are hard at work prepping for todays edition of squawk box. Becky, thankfully, has taken a brief break from that preparation to join us now with a look ahead at whats coming up. Becky, yesterday a crazy day. 400 points down for the dow at one point. Yeah, were going to be digging through that a lot today. Were trying to figure out whats happening. Obviously you saw the Technology Stocks suffered more than the overall market. Were going to be digging into technology and what were calling tech wreck today. Really trying to get our arms around whats happening. Why all of these stocks that were so in favor, the f. A. N. G. Stocks r now so out of favor, whether or not its justified and if these are bargain prices. Well also talk about the media stocks. You have viacom out with earnings today. Disney is reporting after the bell. Well dig through whats happening with cord cutting and what people are thinking about disney in particular. And were going to talk about politics this morning. Obviously the New Hampshire vote coming up tonight. Well have a lot of people joining us to talk about that, including ed rendell. By the way, guys, i should tease, you said it was joe, andrew and i here at work. Joe is out today. We have a special guest joining us, and im not going to tell you who it is, but hes here working away. How fascinating. Very much looking forward to that. We have squawk box up in 11 1 2 minutes. Still to come before that, a shakeup in japans markets today. Joining us with his take, chris rupkey from bank of tokyo mitsubishi. World wrld baworldwide exchang couple minutes. Retirement savings. An help guidr so wherever your Retirement Journey takes you, we can help you reach your goals. Call us or your advisor t. Rowe price. Invest with confidence. You gein your car. Odors you think it smells fine, but your passengers smell this. {ding} eliminate odors youve gone nose blind too, for up to 30 days with the febreze car vent clip. Wow, it smells good in here. So you and your passengers can breathe happy. Welcome back. If youre just getting up, a very good morning to you. Lets get you up to speed on the overnight market action. The main story, the nikkei off sharply as you can see, 5. 4 . This partly because of the yen strength. Today we saw dollaryen hit the 114 handle. Its now back at the 115 handle. Its worth pointing out that yesterday we saw the nikkei up 1 . We then had big falls in europe and the u. S. Most of asia is closed with the Lunar New Year holiday. Those markets that are open, like japan and australia, have been hit hard today. U. S. Futures not following suit, thankfully. Were called to open by about 30 points for the dow. The dow yesterday down 400 points at one point. Joining us now to discuss all this is chris rupkey. Good morning. Good to see you. The global distress is acute right now. Is it justified by the fundamentals . Yeah, you wonder, the market is talking about the fed skipping a meeting here in march. You have to wonder what type of signal that sends to people. Does it frighten them that policymakers are concerned . You know, how much have financial conditions really tightened out there . I just looked, the dow is down 8 year to date. S p, 9. 3 . Thats not enough yet, right. It felt pretty scary yesterday. Its not enough to keep the fed from raising Interest Rates in march . Its not enough Financial Market turmoil for the fed to pause, i dont think, unless its giving a signal that, yes, the u. S. Economy is going to turn down in the future. How long do markets have to fall, and how far do they have to fall for it to actually affect the economy . Well, i hope if i put that number out the market doesnt do that, but i would think down, you know, 15 , 20 and sit down there. It has to be a serious decline. Thats where the nasdaq is falling. Yes, the nasdaq has its own special issues. I dont know if thats the broader market. When we look around the world, perhaps, you know, the markets have overreacted to the changes in fundamental data in various economies. There might have been pockets of bad data. Is that reaction also in part due to the belief that Central Banks can no longer step in so if the fundamental data does get worse, were stuck this time. Look at japan, look at europe. Look where rates already are. Well find out what yellen has to say on that. Im sure central bankers think theres Something Else they can do. Realistically, what did even draghi get from the qe and the two rate cuts in 2014. Monetary policy is supposed to improve Financial Market conditions. They got that. Stocks went up in germany. Now theyre right back down to square one. I mean, Central Banks have been very activist. I think bank of japans move a week ago scared people about negative rates. Now theyre saying, could we have negative rates here in the u. S. . Could we . Dont do it. I think it would scare the american public. I agree. Is that whats happening in banks . What is the action, the relentless and brutal selling in u. S. Banks and global banks telling you . Yeah, im not sure. Im not an expert on that sector, even though i work at a bank. I think people, in addition to concerns about whether they can pay their debt, like what happened with deutsche yesterday, people are wondering if the Business Models change. Frankly, the Business Model look at europe where bond yields are down to very, very low levels. Maybe these banks cant produce the income they used to. Thats not the case in the u. S. Yet. Hopefully rates will stay up here at least 2 for tenyear treasuries. Chris, you come from bank of tokyo. Got the nikkei down sharply again today. The tenyear yield falling into negative territory. Amazing. How bearish a signal is that . Is japan, the economy, a basket case now . I dont understand that. All these Central Banks are very different. The ecb is doing qe, but they have 10 unemployment. Japan, Unemployment Rate is down at 3 . Thats the timehonored signal of a strong economy, low unemployment. Everyone has a job. So why are they doing it . Youre saying its a strong economy. Everyone has a job. Unemployment is very low there. But look at the u. S. Its been 4. 9 unemployment, but it doesnt signal a strong economy. We just came off a quarter where we grew 0. 7 . Yeah, its kind of hard to know what your measure of a good economy. We got to focus more on the jobs market. So youre in the yellen camp. Not just gdp growth. Yeah, its all about jobs. The economy right now is fine. Theres some worries. You know, people are talking recession, increased odds. At the moment, were fine. So bottom line, because of some of those employment pictures, you think perhaps an overreaction to markets at the moment. I think so. We had the three big worries. China, crude oil, world growth. It terrified people. It sent some shares going down and panic sales. But i think were going to stabilize here. His notes are great on the economy because you almost cheer on the good data. Well, its good at the moment. Chris rupkey, thanks for joining us. No time for what were watching today. But thank you for joining us. Have a great afternoon, morning, and trading day ahead. Walk squa squawk box is. Im vern, the orange money retirement rabbit from voya. Vern from voya . Yep, vern from voya. Why are you orange . Thats a little weird. Really . Thats the weird part in this scenario . Look, orange money represents the money you put away for retirement. Save a little here and there, and over time, your money could multiply. See . Ah, ok. So, why are you orange . Funny. See how voya can help you get organized at voya. Com. Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Good morning. Global market alert. Stocks in japan and australia plummeting overnight while much of asia remains closed for the Lunar New Year. Also, new doubts about oils recovery from the International Energy agency. And the race for the white house. New hampshire holding its first in the nation primary today. First votes have already been counted. Its tuesday, february 9th, 2016. Squawk box begins right now. Live from new york, where business never sleeps, this is squawk box. Good morning, everybody. Welcome to squawk box on cnbc. Im becky quick along with Andrew Ross Sorkin and scott wapner. Joe is off today. Breaking overnight, the nikkei closing down by 5. 4 , dropping for five of the last six sessions. The dollaryen fell to its lowest level since november of 2014. In fact, japans finance minister calling the yens moves rough and saying that hell be watching it closely. Also, take a look at the tenyear japanese government bond. This is unbelievable. The yield falling below zero for the first time. Stocks also selling off down under. The main index in australia closing down by nearly 3 . The biggest drags here, the energy, materials, and financial sectors. Take a look at how things are shaping up here in the United States

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