Welcome back to Worldwide Exchange. Im wilfred frost along with seema mody this morning in for sara today. Good morning. Good morning. Lets check in on the global markets. Futures after a day which continued the very recent trend of the nasdaq leading the pack of these three main indices. Yesterday the nasdaq gained around about 0. 3, 0. 4 . S p was flat, the dow declined fractionally. Today all three expected to post gains if the futures are anything to go by. Not big gains. Dow higher by 36 points, s p by 1. Nasdaq by 5. 5 points. Tenyear treasury note continued the trend in terms of yields being lower than where they have been. 2. 387 the yield on the tenyear. We were at 2. 42 at close on friday. Asian equities in focus today. Mildly higher today as we look at what bank of japan governor kuroda has been saying. He and shinzo abe met today to discuss the economy. They did not have detailed talks about president elect trump, but he told abe he felt the u. S. Economy is growing steadily. Kuroda said he received no request from the Prime Minister on economic policy. Lets get to uk construction output rising 1. 5 . Below consensus. Markets are mainly green across europe. Yesterday the ftse 1 00 led the pack, for its 11th positive session in a row. Up 0. 2 this morning. Gaining more in the last couple of minutes because of that slightly softer than expected uk construction data. Oil prices did decline about 2 yesterday. Theyre up 0. 8 today. Still nicely above that 50 a barrel level at 51. 2. The dollar, as i mentioned, has seen strength against the pound once again today. The move accentuated by weaker uk data. 1. 2113. Getting close to a record sixmonth low fourmonth low. Lets have a look at the other currencies. A bit of Dollar Strength against the yen. The euro a bit softer. Bitcoin 4 decline this morning. Gold prices to round things off, it was flat yesterday. Up slightly today. 0. 2 . In terms of the currencies, want to pick up a point on kitt jukes story. Its a huge amount of d differentiation at the start of 2017. Its not as simple to think will the Dollar Strengthen because of the fed or weaken. You have the likes of the turkish lira, mexican peso, sterling. Theres a lot of differentiation. When you think about the u. S. , you have to think about it on a trade weighted basis. Of those three that are the weakest, all have political question marks hovering around them. Theres all sorts of different political factors to price into it. Yesterday turkey was named the most vulnerable emerging market. Its currency hits new lows day by day so far this year. Its the worst performing currency globally, down about 5 . A lot of that having do with political instability there. The uk and mexican economies have their own political question marks. Turning to todays agenda on wall street, a light day for earnings and economic data. The Mortgage Bankers association releases the Mortgage Applications at 7 00 a. M. Kb home reports earnings after the closing bell. The bond king is issuing a warning. Jeff gundlach predicts trouble for equity markets if the yield on the u. S. Tenyear treasury note moves above 3 . In his First Investor webcast, he cautioned after the recent run up in u. S. Stocks. Investors should look to peel off exposure to equities as he expects stocks to reverse, despite the post election rally. He said the bar was so low on trump to the point people were expecting markets would go down 80 and global depression, and now this guy is the wizard of oz, is expectations are high. Theres no magic here. Gundlach cited two major risks, shrinking global trade and the president elects temperament. He sees the tenyear not going below 2 before ending up again. And he sees gdp breaking out of the 2 range. He was skeptical what to do if the economy hits 3 , but eventually the trend has been going lower. Another bond investor, bill gross, saying if the tenyear hits 2. 6 well be in a bear market for the bond market, which is interesting. Just four months ago we were talking about a bull market when it comes to the bond market. Well have to see what happens to that. So many people say the equity one, this at some point, the markets will have to take a breather. We have not seen signs of that especially with the nasdaq hitting new record highs. Theres been a lot of rotation at the start of this year and the couple weeks of last year. Banks pulling back, technology taking a charge. The dow has taken a breather. Weve seen a rotation among indices and sectors. Were not pushing new lihighs or the last month gently. Next week, big banks reporting. Ill be curious to see if they can confirm the rally or if thats when people start to the first ones this week on friday. Today is the day donald trump will give his first News Conference as president elect. Its scheduled for 11 00 a. M. Eastern at trump tower in new york. You can watch the conference here on cnbc at 11 00 a. M. Eastern. The mexican peso has tumbled to historic lows ahead of the conference. Traders avoiding exposure to the currency because of concerns that the president elect could take measures that would weigh on mexicos economy. Specifically on the trade front. Also keep an eye on the chinese yuan amid questions about china, trade. And another question there has been is whether the president elect will label china as a currency manipulator. Keep in mind, the exact opposite of what weve seen from the Chinese Central Bank this year. They stepped in. Theyve been defending the currency, thats resulted in an appreciation of the chinese yuan. I wrote an article yesterday about that, it was about the three ways beijing could retaliate against trumps trade policies, one way is through the currency, using their currency as a weapon. Because we know how much of an impact it can have on global stocks and volatility. In terms of trying to weaken it quicker . Exactly. That could be one way to retaliate to trade protectionism. At the moment theyre trying to do that in a slower fashion to stem capital outflows. Theyll have their own problems if they try do that domestically. True. But they know the impacts globally, and thats one way people say they could use the currency as a way to respond to any type of trade protection. Ill have a read of it because the risk of retaliation for the things like weve been seeing recently is very, very high. We saw it in toyota, him tweeting about domestic companies, they had to pay lip service. With toyota, there was a reaction from the japanese government. Certainly something to watch. The other big political story, reports suggest an intelligence memo contains damaging allegations against president elect trumps relations with russians. Briefings included information that circulated among his points and was passed to u. S. Intelligence agencies. There are is a li the information has not been verified by the u. S. Agencies. There is a claim which says russia has material had could be used to blackmail trump. Trump responded by saying fake news, a total political witch hunt. New this morning, the kremlin says it does not have compromising material on donald trump adding that the report is a fabrication and an attempt to damage u. S. russian relations. Its not been substantiated yet. So i think we should move on. Its had a lot of attention overnight. Until substantiated, it should be ignored. Too quick at the moment for everyone to jump on rumors. Today with the tillerson hearing, that will likely be a topic discussed. And at the press conference at 11 00, im sure he will be asked. Also on the political agenda more key cabinet hearings. The spotlight will be on trumps choice for secretary of state, former exxonmobil ceo, Rex Tillerson. Hell testified a 9 15 eastern. Jeff sessions will return for day two of his hearings. Cia director nominee mike pompeo and transportation secretary elaine chao will also testify. Tillerson is sure to be top of the agenda when he heads to capitol hill. He will call for a cleareyed assessment of the United States relationship with russia. He will say russia today poses a danger but its not unpredictable in advancing its own interests. And exploring areas of collaboration with russia is based on common interests. President obama addressed the nation for the final time as president in an emotional speech in his hometown of click go last night. He touched a wide range of topics, revisiting his achievements and challenges. If i would have told you eight years ago, that america would reverse a great recession, reboot our auto industry, and unleash the longest stretch of job creation in our history, if i told you we would open up a new chapter with the cuban people, shut down Irans NuclearWeapons Program without firing a shot, take out the mastermind of 9 11, if i had told that you we would win Marriage Equality and secure the right to Health Insurance for another 0 million of our fellow citizens, if i told yall that, you might have said our sights were set a little too high. More of that coming out throughout the show. Still to come, this mornings stocks to watch. First as we head to break, a look at yesterdays top dow gainers. Overall day that was down for the dow. The dow down 0. 16 . Gosh, i shouldnt do that to myself. There were some gainers. Caterpillar tops the list. Were back in a couple minutes. Welcome back to Worldwide Exchange. If youre just getting up, lets get you up to speed on the market action. The Asian Session was broadly positive. Hong kong and japan in positive territory. Shanghai did decline by 0. 8 . European trade picked up in the last hour or so. It is now broadly positive. Yesterday fractionally positive with the ftse 100 the leader. Another record close. Looks set for its 12th straight day of gains. The pound is softer, again down about a half percent against the u. S. Dollar today because of trade deficit data in particular that has led the pound down another half percent after what has already been a very soft start to 2017 for the british pound. Lets look at what this means for u. S. Futures. Yesterday we continued that havent trend of the nasdaq leading among these three and the dow trailing, the s p was flat. The nasdaq up about 0. 3 . All three up fractionally this morning. In corporate news, shares of volkswagen are trading higher this morning as the company nears a settlement with the u. S. Regulators over its emissions cheating scandal. The auto maker confirming yesterday it reached a draft settlement with the Justice Department and final approval could come today. Volkswagen would plead guilty to criminal misconduct and pay a 4. 3 billion fine. That would raise the total costses the company set aside for the scandal to above 19 billion. Vw would face oversight from an independent monitor for three years. Shares are higher by 2. 5 in todays trade. Authorities say a member of samsungs founding family will be questioned as a suspect in the massive scandal that led to the impeachment of south koreas president. Samsungs vice chairman will be summoned tomorrow by investigators who are investigating whether he bribed a jailed confident to get park favors. Those include a controversial merger in 2015 that was proposed by samsung share holders. Lee and his family were the biggest beneficiaries of the deal. Samsung has had a fantastic last 12 months. Tesla has hired a top Software Engineer from apple to oversee its autopilot selfdriving efforts. Chris latner who worked at apple for a decade is best known for introducing swift, a programming language making it easier for developers to write apps for ios. Teslas autopilot feature had been run on an interim basis by the software chief at spacex. Shares of both stocks in premarket are down right now. Stocks to watch today, ford confirms it will be less profitability this year than in 2016. The company is on track to report 10. 2 billion in pretax adjusted prompt. Ford will be pressured this year as it increases spending ining emerging opportunities. Yunited airlining is raisin its Fourth Quarter forecasts, and boeing will conduct a round of layoffs of engineers as it seeks to cut costs. The cuts include dozens of jobs eligible for voluntary layoffs in california, South Carolina and washington state. More stocks to watch, Veeco Instruments expects Fourth Quarter earnings to come in above analyst forecasts. The Technology Used to make chips and l. E. D. S sees revenues in line with estimates. And Parsley Energy is buying assets in the permian basin. It has a secondary offering of 20 million shares. The stock is down 4. 8 . Shares of village road show fell nearly 3 in australia after 20 people at a theme park owned by the company were trapped on a roller coaster for almost two hours. They were seated in chairs suspended from the track when the ride became stuck. Most were easily rescued, four people could only be reached by a ladder platform. No one was injured that is my biggest fear. I love theme parks, i love roller coasters, but being stuck up there for two hours that cant be fun. Terrifying. At least no injuries. Theres been some more severe tragedies of this nature. Good point. Still to come, the top political stories including Donald Trumps first News Conference as president elect. As we head to break, todays National Forecast from the weather channel. We have some wet weather across parts of the northeast early this morning. That should move out by the afternoon hours. Showers across the ohio river valley down into the Tennessee River valley. Out west, dealing with a deluge across california, another one to two inches on top of what they already had today. Travel delays expected in los angeles as well as san francisco. Blustery conditions along the front range in colorado. And warm air across much of the south. Our temperatures here well above average. A few records could be broken across parts of texas. These are the forecast high temperatures, back into the 70s. A lot of snow melt across the deep south and in the northeast as well. Well have to keep an eye on the potential for flooding over the next couple of days. Happy wednesday. Welcome back to Worldwide Exchange. Futures pointing to a higher open. S p 500 fractionally higher. Dow jones up 25 points. The nasdaq which hit a record high yesterday extending ets gains in the futures market, also calling for a higher open. Keep a close eye on the Biotech Sector which led to the nasdaqs outperformance in yesterdays trade. Look at currencies. In the turkish lira, it continues to hit new record lows against the u. S. Dollar on political instability and the central bank making a move today. But that wasnt enough to shed off those fears around the state of its economy. The turkish lira down about 0. 3 . The euro dollar trade in focus at 1. 05. Analysts still calling for the euro to trade in parity with the u. S. Dollar. The pound at a tenweek low against the dollar. The pound is lower, thats helping the ftse 100 move higher in todays trade. Lets move on to political news. Trumps First Press Conference as president elect set to start at 11 00 a. M. Its also day two of the confirmation hearings where trumps key nominees will be in the hot seat. Tracie potts has more on what to watch. Reporter good morning. At that News Conference, the latest allegations about russian collecting damaging personal information on the president elect, that is likely to come up, even though this was called to focus on how hell divest from his companies. As for the confirmation hearings, Rex Tillerson and elaine chao coming up today. And all of this is happening in washington on a day when president obama returns after giving his final remarks last night in chicago. Struggling to begin amid wild applause i cant do that. Reporter president obama says goodbye to 18,000 supporters and the nation. America is a better, stronger place than it was when we started. Reporter he hit on major accomplishments, the fim and auto bailouts, healthcare, killing osama bin laden. He talked about immigration, climate change, opportunity and race. For if we dont create opportunity for all people, the disaffection and division that has stalled our progress will only sharpen in years to come. Reporter he urged action. If youre disappointed by your elected officials, grab a clip clipboard, get some signatures and run for office yourself. Reporter he got choked up talking about his staff, Vice President biden and the first lady. You made me crowd and you made the country proud. Reporter americas first africanamerican president. Im asking you to believe, not in my ability to bring about change but in yours. Yes, we can. Yes, we did. Yes, we can. Thank you. God bless you. Reporter ending his term the way he began. Of course now washington prepares for a very different type of change with the onset of the trump presidency. That press conference, all eyes will be on today. Thank you very much. Coming up, the top stories and a roundup of the global markets. Stay tuned. Youre watching Worldwide Exchange here on cnbc. Good morning. Washington and wall street todays News Conference by president elect trump tops the agenda. Well talk politics, trade, the economy and more with fred neumann from hsbc. And joebama, why this hashtag is trending this morning. Youre watching Worldwide Exchange on cnbc. Good morning. Warm welcome to Worldwide Exchange on cnbc, im wilfred frost along with seema mody today. Good to be here. Yesterday the nasdaq once again led the way and hit a fresh alltime high. It was up around about 0. 3 , 0. 4 . The s p was flat. The dow declined by a slight margin. 0. 16 . This morning we are expecting positive moves across all the indices, but slight, around 0. 1 . 30 points for the dow. European trade looking positive today. It was positive yesterday. Similarly for the most part positive today. The ftse 100 is on track for its 12th straight day of gains and another record alltime close. Only up 0. 2 . Largely that small gain is off the back of a further decline in the british pound. Down a half percent following disappointing trade deficit data. Asian trade was broadly positive, china declined 0. . The rest of the region generally eking out gains. We will talk to fred neumann in a couple minutes. Oil, wti crude trading at 51. 29. Ice brent crude, the more international gauge at 54. 17, up about 1 . There were reports this morning of saudi supply cuts to asia, perhaps thats something that Commodity Traders are digesting. Nat gas slightly lower. If youre looking for a big mover in the commodity space, its palladium up 12 on the reflation trade. Interesting commodity to watch. Switching focus to bonds, tenyear note, slightly moving higher here. Yield at 2. 39 . Investors digesting those comments from Jeffrey Gundlach overnight. Also bill gross, who says that 2. 6 , thats the yield to watch on the tenyear treasury note. He said that will indicate a bear market in the bond pits. The dollar has been rising against a certain number of currencies. The yen and the u. S. Dollar higher by around half percent against the yen. The euro at 1. 05 against the u. S. Dollar. The pound has been stealing the spotlight at a tenweek low. Uk industrial output rising, the trade deficit widening in the uk. That has been propelling stocks in the uk higher. The ftse 100 nearing another record. Indeed. Turkish lira has been deprecating against the u. S. Dollar. The current account deficit in turkey widening, not good news after the most recent report on inflation showing its been moving higher than expected. Now questions around whether Turkeys Central Bank should step in and raise rates but then confronted with the impact that will have on growth. The turkish lira one of the worst performers. The worst performing global currency so far in 2017. Already down 5 . Followed by the british pound in terms of the laggards of the year. Lets round things up with the gold price, which gained a bit yesterday and this morning is higher by 0. 2 . Lets get back to markets and discuss in more detail the picture in asia. With us from hong kong, fred neumann from hsbc. Good morning to you. Thank you very much for joining us. I want to get into the yuan specifically in more detail in a moment. Before that, a broader outlook on asia. I feel like the picture in u. S. Investors minds is perhaps overly positive on whats happening in asia at the moment because its so much better than this time last year. But your most recent note says things look resilient but looks can be deceiving across asia. How gauge for us how positive or negative data is across the region at the moment. Well, weve seen a bit of an uptick in data here. We saw exports perform better late last year. Some of the pmis came up, Better Chinese inflation data. But there are two big headwinds for asia. One is that exports, if you look closely, are not doing as well. Were barely back to levels we saw in 2014. Theres rising risk of protectionism. The other thing is a stronger dollar and higher u. S. Interest rates which will hurt in a region thats so credit dependent. That will exert a break this year on growth. It wont lead to a recession, but dont bet on accelerating growth across asia for 2017. That stronger dollar you mentioned has particular issues for the chinese who intend to peg their currency. Theres been pressure because of the rising dollar and their ability to keep that peg flat. Gauge for us the pressures on the chinese currency at the moment and how big a issue it is compared to last year where it derailed sentiment significantly. Even though the currency has deprecated last year, it seems the authorities have more control over the process this time around. They played offense in the last several months, and they reinforced some controls. They still have enough Foreign Exchange reserves. And the draw down on fx reserves is not going to make the regime unsustainable soon. But the costs their bearing with intervention is really Rising Interest Rates on shore. They cant shield themselves from rising global Interest Rates, they have to allow some rise in Interest Rates domestically. That will hurt local growth. It wont lead to collapse in growth, but higher Interest Rates in china are also the result of higher Interest Rates in the u. S. Fred, if we switch focus to japan, the weakness in the japanese yen, thats helped propel japanese stocks higher. How much room does that give the central bank of japan in 2017 to continue to mend the economy . It really got the boj out of a bind. A few months ago, everybody thought the boj was out of bullets, they couldnt contain the depreciation of the yen. Then came the federal reserve, raised Interest Rates, and the wren is weaker and the boj can sit on its hands for the time being. They dont have to move. The ball is in the court of the government now, delivering fiscal stimulus, they need to make sure they push ahead with reforms to get sustained growth. The boj has done everything it can, really the government has to deliver. Here theres still some question marks, will abe press ahead, Prime Minister abe, with the reforms necessary to drive up the potential growth rate of gdp. So far we have not seen much by way of reforms in japan. Fred, overall, just to sum things up, do you think u. S. Equity markets are a little complacent about whether 2017 could be a negative year for asia, which could help or hinder u. S. Equities . It feels a little bit like that. Now, some headlines always exaggerate things. We have structural issues here. We wont see an acceleration growth. So maybe a bit of investor exuberance here with regards to Growth Potential. Also when you read headlines, it says china is reflating. Profit margins are going up. Remember that china still has enormous excess capacity they need to work through. China will not deliver a growth impulse for the rest of the world soon. So a cooler assessment of asias Growth Potential is needed. Fred, great stuff. Switching attention to corporate news. Mylans ceo said her company has learned from the epipen. Landon dowdy has more on what the executive hopes to see in the new trump administration. Good morning. We heard from mylans ceo, Heather Bresch yesterday when she spoke to meg tirrell, bresch saying that the Company Learned from the controversy over price hikes for its epipen product and shes optimistic on trumps view of her actions. Last summer the pharmaceutical giant hiked prices of its antiallergy device more than five times since 2008, leaving some consumers paying more than 600 for a pack of two. Bresch stunned by the criticism, and mylan expanded its Assistance Program for payment purchases and introduced a generic version of epipen which sells for 300. When asked if shes afraid of becoming trumps next critic, this is what she said we took Decisive Action on epipen. He appears to like decisive, immediate action. I would hope thats how he would look at this epipen what the epipen situation was, and the conversation it started. Shares of mylan are down more than 20 in the past year. Back over to you. Thank you very much for that. Time for our top trending stories. Joebama dominating social media. President obamas Farewell Speech last night, after thanking his wife, obama turned his attention to Vice President joe biden. The crowd rose to their feet at the mention of bidens name. The Vice President smiling back at the president. Take a look. You were the first decision i made as a nominee, and it was the best. Not just because you have been a great Vice President , but because in the bargain i gained a brother. We love you and jill like family and your friendship has been one of the great joys of our lives. Joebama. What a great bromance. You need a hashtag for wex. You put me on the spot. Sara and wilf. Silf. We have to think of a better one. I think of that address, in terms of the lighter hearted topics, his thanks to his wife and children was even more emotional than that. The problem, of course, for the outgoing president is how much were focused on the president elects speech today. Jhasbro is asking the internt to vote for a new lineup of monopoly tokens. Voters can choose from current tokens as well as a slew of new options. More than 50 new options are available including a wireless phone, computer, kissy face emoji and a sports car. I dont like this. Voting is open until january 31st. This is the first time i said kissy face on Business News channel. Plenty more times for that. Im not a fan of this im a traditionalist when it comes to monopoly, i always win, and im always the dog. As long as that piece remains, ill survive. Are they going to change the places as well . Who knows. Always play on the traditional london board. I know you can get boards never played that. The london board . Like mayfair maybe i did have that. I dont remember honestly. Any way well stick with games, pokemon also in focus. Bass news for pokemon in china. The state censors saying it would not license the game until potential security risks had been evaluated. The ban was prompted by what china calls a high level of responsibility to National Security and the safety of peoples lives. There was that period around summer of 2016 when pokemon was the hot game. People were playing it everywhere. I remember when i was in greece, people were on the streets there. It was amazing. It seems like that that excitement has calmed down a bit. There are some risks associated with it. It is still amusing when you see someone playing it. And just on the street. I never played it. I dont want to be critical. Im sure its good fun. But its an amazing thing to watch from the outside. More on Worldwide Exchange coming up. Our mustreads, first a look at trading at this hour in europe. Were broadly higher here. Stay tuned, youre watching Worldwide Exchange. Welcome back. Weve been discussing emojis in the break. Were not allowed to continue that conversation. We have to move on to our mustread stories. My pick is titled the economic consequences of Barack Obamas presidency. Quite a few discussions in the ft by different economists on different areas of his speech. This is by martin wolf. In all, given the starting point, the performance of the economy has been remarkable. In the Third Quarter of 2016, the economy was 11. 5 bigger than at its precrisis peak and Gross Domestic Product per head was 4 above the precrisis peak. Is he giving a positive and liberal congratulations to obamas economic legacy, though he has a criticism part as well. Within that he admits the u. S. Economic outcomes have become exceptionally unequal. So pretty positive overall onam the economy. A good account of his legacy on the economic front. Also some good accounts in the ft today on his foreign policy. Sets the stage for trump to enter in. Especially with the most recent jobs report and the Unemployment Rate under obamas administration, the progress weve seen and the potential for pushing forward. Mine is russias questions for Rex Tillerson. With russia relations at a possible turning point, the confirmation hearings of Rex Tillerson need to go beyond superficialities and wave at the true nature of the putin regime. He goes on to say that the former exxonmobil ceo demonstrates an understanding of some of the main issues including the 2015 assassination of the opposition leader, the 2013 Boston Marathon bombings and 1999 russian apartment bombings. So hes saying that senators should question hill m on any issues weve had with the russians. This will likely ab colbe a col hearing. And maybe are we expecting too much from the head of the state department in terms of what he knows prior to going into this potential role . As you say, either way, it will be a juicy hearing. Perhaps more than any of the other hearings to come. Not least because of new allegations overnight because of relations between trump and russia, unsubstantiated allegations. Still to come on Worldwide Exchange, investors waiting to hear from president elect trump. Well talk about that and what to expect in terms of the market with doug cote. Back in a couple minutes. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. One of the largest business process companies in the world. Whether its in health care, customer care, technology, transportation or government. We touch millions of lives every day. Conduent. Advancing the everyday. Futures calling for a positive open. The dow up 26 points. Joining us now to discuss the market action, doug cofe from Voya Investment management. Good morning to you. The nasdaq hitting a new record high. What do you make of this outperformance that were seeing in the tech sector . Can it continue . It sure can. Were talking about the new path, the growth in reflation trade. And look at the policies. Were going from higher government, higher taxes, higher regulation, to a belief in capitalism, to lower government, lower taxes, lower taxation. What that will do is shift Economic Growth yawp wards. You will see a rotation out of defensive sectors into cyclical sectors. And what i believe is that it will benefit business investment, the consumer, manufacturing. Were seeing that not only in the u. S. But its starting to catch fire around the world. Doug, the fact that we are seeing rotation now, the likes of tech playing catch up and also healthcare playing catch up while weve seen profit taking in things like banks, does that suggest the easy money, early mopping from the trump reflation trade has been made and it will be a much more bumpy and volatile ride from here . I dont think its over at all. I think it hasnt even started. You will see a lot of incentive back into the system. I would say just lower taxes lower taxes creates incentive for capitalism, for investment, for productivity and what you will see is not covered that much is Small Business has the tax credit or benefits from the lower tax regime. You are going to see Small Business, which is the biggest creator of jobs in america really prosper under this new tax code. Even though it has not been implemented yet, just the belief that this president is more pro growth, pro private capitalism is getting animal spirits up. I dont think its started yet. You have a lot of retail cash on the sidelines, a lot of defensive positioning. This has not even got going yet. But i believe it will be volatile. We have tail risk out there. Most importantly the dollar, trumponomics, excuse risk, how fast does he get the policies implemented. We hear from trump at 11 00 a. M. Eastern. Does it make for sense to focus on domestic stocks and scale back on exposure to the international names, give than we could hear more about these protectionist trade policies from the president elect . Absolutely not. Were having a rotation. Were seeing already this year emerging markets up double the s p 500, international efa stocks ruare up higher than the s p 500. I prefer a rotation out of cyclical out of the sector level and in the asset class, too. Mid caps, small caps, global reits and International Emerging markets will really get a bump. Its shifting global Economic Growth upwards in so s and some Asset Classes have been left behind. Sounds like youre exceptional bullish for the year what you are watching out for in terms of risks . I would say, so, global trade. I dont believe that trump is as protectionist as everyone says. If you look at congress, half of congress is very free trade. Some of his picks, Rex Tillerson, as you mentioned before, wilbur ross, theyre very free trade and i expect thats one risk that wilbur ross is not at all. Well, wilbur ross, theres talk about that. If you look, theyre more for fair trade versus some of the trade deals that weve gone through. I dont buy that theyre going to be protectionists raising tariffs. That would shoot themselves in the foot. I think trump is trying to get in negotiating posture. Thank you very much for joining us and that optimistic outlook. Doug cote. Ten seconds left. I suppose the focus all on the politics today. Thats it for Worldwide Exchange. Squawk box comes next. Id sharey rode here on the cloud. Did not feel like a cloud. That driverless car . I have seen it all. Intels driving. The future traffic lights, street lamps. Business runs on the cloud. And the cloud runs on intel. I wonder what the other 2 runs on. Good morning. Trump talks to the media. His first News Conference as president elect is scheduled for 11 00 a. M. Eastern. It comes a day after a controversial and unsubstantiated claims that the russians have dirt on him. Tiller on the hill. He will begin his confirmation hearings today. And the dow looking to rebound after closing lower yesterday. Well get you ready for the official kickoff of earnings season on friday. Its wednesday, january 11, davos is next week. Squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning. Welcome to squawk box here on cnbc. Were live from the Nasdaq Market site, im Andrew Ross Sorkin along with joe kernen and melissa lee who is hanging out the last day before can i tease it . Becky quick will be back tomorrow morning. Shes clapping a little too much. A little too enthusiastic. Well see if we want to clap about the u. S. Equity futures. Right now the dow will open higher by 26 1 2 points. The nasdaq about 5 1 2 points higher. S p 500 up about a point. Heres whats goi