Good morning a warm welcome to Worldwide Exchange on cnbc. Im wilfred frost. Im Morgan Brennan. Good morning great to have you with us its not a great picture for the futures market this morning. Big selloff in asia has infected the rest of the world. Futures pointing lower to the tune of 70 points. Less pronounced in the Asian Session or the european session. Nasdaq down 23 the s p down 6 yesterday the broad summary was that a small tech recovery was not enough to spur the other indices higher we were down 0. 4 for the dow and s p. The nasdaq did outperform but down slightly. 10 of 11 s p sectors were lower. Only tech was higher tenyear treasury note has been slipping in terms of yield this week so a riskoff sentiment. A bit of buying of the tenyear bond has pushed yields down to 2. 33 this morning. Over the weekend we pushed above 2. 4. Its been a steady slippage. A bit of buying of bonds over the course of the week turning to asian equities red arrows on that continent lower trading session across the board. The japanese nikkei ending down 2 the hang seng also down 2 for wednesday trading. And actually its worth noting, its down about 5 from the recent tenyear highs we saw that index hit that last month shanghai composite and the korean kospi lower today turning to europe, we have weakness there as well the dax is the weakest performer, thats down 1 . All of these indexes are still slightly higher for the week though in asia we have got a real marked pull back in terms of hong kong not just down 5 from that recent high, but down 5 over the course of the last five trading sessions. That Asian Session its been tech and basic materials that lagged copper did slip 5 yesterday oil prices s down a fair amount yesterday. Gained a little yesterday, sorry. Down 0. 8 today for oil. Dollar board for you as well which did fractionally go up 0. 1 today today were seeing sterling continue its slide issues for the brexit negotiations, a story in the Daily Telegraph in the uk. We have got the dollar board coming the pound down a half percent or so the story today is that theresa may is facing result from the likes of Boris Johnson and the hard line brexiteers within her cabinet. The dollar is lower against the yen, flat against the euro bitcoin at another allhtime hig this morning pushed through to 12,500 just below that now, 12,480. Copper yesterday, a selloff, slipping 5 b . Thats why basic materials are doing so poorly in asian trade today. For more on the market action, lets bring in steve grasso, a fast money trader. Thank you very much for joining us in terms of the u. S. Market. So far the futures not too infected by this rather large asian selloff which is encouraging. It is encouraging. You kind of want to start as a trader, ive been doing this for a while. You want to start down, start in the hole, so you can climb out of it, and everyone gets that selling out early. You never want to hold in there. It leads you to the potential to basically sell off after the u. S. Opening you want to see the weakness im not afraid to see the weakness prethe new yoos the ne opening at 9 30. Most of the talk has been about tax reform how much should investors be focusing now on the potential for a Government Shutdown . You know, every time we start to get bought into the idea of a Government Shutdown being the catalyst for a selloff, its always a fools error. We need to focus on tax policy yesterday, wilf, i mentioned you saw the Tech Companies sort of slightly recover, but they closed weak. For me, if the amt, if you focus on amt getting pulled out of committee on a Conference Committee when the senate and house are mentioning the tax bill plan, you will really see large cap tax take off again and bounce that will drive the markets higher we need to see amt disappear from all negotiations. Because that is the real reason why the market wanted a rally higher its a lackluster tax plan it was just for corporate america. If you dont get it for large cup t cap taxes, whats the point . What do you think about the bond market . We have flirtations breaking higher on the long end of the curve, whether its the tenyear or longer. We crossed 2. 4 over the weekend. Markedly lower again this week what does that tell you . Everybody is worried about the flattening of the yield curve. You can see the projections out there. If we continue to flatten at the same pace we have been, there should be an inverted yield curve to greet us maybe spring or summer. I think people are justify bly so concerned with the flattening of the yield curve its still premature i will tell you the more we look at the fed governors, some dovish ones, what do we hear yesterday . Some of them are still concerned with the lack of inflation maybe we should skip december. December is all but factored in as far as a rate hike. I think they should look at it theres no rush with inflation the way its been tamed to raise rates what are you doing it for . Youre staying ahead of what curve exactly . I think the market would greet it with bullishness. I dont think theres a rush to chase the inflation curve. What do you make of the move lower . Dramatic move lower in copper in the last 24 hours. Its tied to economic its considered an economic indicator. How much should we read into that you never want to look that over its materials, growth, large cap tech if you look at the way to play or the proxy to play growth, its either through copper or through large cap tech whenever you have questions on where growth is heading, thats the first thing to take the chunk out of you have to look at where people have gains this year if you look at december, everyone is so skittish. The markets have returned an enormous amount. People are up. Long short hedge funds are not even short anymore theyre all long the rotation, positioning. No one wants to give up gains. So they sell whatever growth in the areas they were invested in. Large cap tech, material space, industrials, the trump play. So everything is in question thats the first thing that people go for is where they have their gains, where they saw their growth coming from and they attach to that. Steve grasso of stuart frankel. Theres a few economic reports on the wall street agenda the november adp employment report is out at 8 15 eastern followed by revised Third Quarter productivity and labor costs at 8 30. On the earnings front, brownforman, h r block, American Eagle outfitters are set to report before the opening bell broadcom and lululemon are out after the close. Shares of dave and busters are shooting higher. Landon has the details shares of dave busters moving higher. The arcade operator posting earnings of 29 cents a share topping projections of 24 cents per share. Rer nekne revenues missing slig samestore sales down as hurricanes took the toll on the business including a delay of a flu openi new opening in puerto rico steve king says he plans on opening 14 new stores this year representing 15 unit growth and they are excited to have a new smaller store format buster says it sees potential of up to 40 Smaller Stores to meet demand in the smaller markets. Back over to you thank you very much some more stocks to watch, General Electric reportedly plans to cut about 4500 jobs in europe after reviewing assets it brought from olstom in 2015. The cuts would take place in switzerland, germany and the uk. Ge says it is reviewing the operations to assure its best positioned to respond to market realities. Shares of aerovironment are soaring today. Revenue rose 47 as the maker of military drones continues to see strong demand. Up 23 shares of rh are pulling back from record highs this is the retail chain formerly known as Restoration Hardware they are projecting Fourth Quarter numbers in line with forecasts. Just off 1. 3 . You would expected this company to be doing much better given what weve seen in housing. Were following a developing story out of Southern California a Massive Wildfire continues to burn out of control. Its tearing through the cant ta santa c clarita area it has score muchedscorched 11,f land this is one more thing from a financial perspective, this is one more thing for the insurers to deal with in this Current Quarter as well. In addition to the other recent tragedies still ahead on Worldwide Exchange, up, up and away bitcoin soaring to another record high. And the one thing that keeps carlyles David Rubinstein up at t. Gh his exclusive comments to cnbc when Worldwide Exchange returns. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Welcome back to Worldwide Exchange. Lets get up to speed on the market action. We are called lower. The dow is down 60 points. The nasdaq down 20 the s p down 6 points following somewhat of a selloff in asia overnight. A bit of one in europe lets look at bitcoin. It is movis jumping through 12,. 12,550 up 7. 5 . Lets get more on bitcoin joining us from the Financial Times is isabella kominska. It seems like every day another record for bitcoin how much higher can this go and what is propelling it at this point . Thats the big question really theres no ceiling on the price of bitcoin there is no real concept of its intrinsic value. It could go to 10,000 tomorrow or 100,000 tomorrow. In terms of whats driving it, probably a combination of things we have the anticipated launch of cme futures cboe is coming in next week beating the cme by a few days. That is the momentum driver at the moment in terms of the volatility that we have seen to the down side recently, is that something that is new . Weve i guess weve all been focused on bitcoin over the last month or two has this kind of big falls and recoveries happened over the course of the year regularly or a new phenomenon what does that suggest if it is . No, this is normal for bitcoin. It has horrific volatility, which is why you never know what the price will be. The trend has been definitely up and into historithat is or how smooth that is is anyones guess bitcoin has the capacity to move 25 , 30 in a day. Not only that, its price is never necessarily smooth across the different exchanges. In some exchanges it can be as much as 5 difference in terms of price certainly focus has been on bitcoin as some of these exchanges roll out futures offerings. How much is this overshadowing other cryptocurrencies and their performances the ethereum platform comes to mind ethereum has been doing well. We have not entered the bubble territory of bitcoin, but its holding its own. The real story is that the ico trend we saw earlier this year is beginning to cool down a bit. There was a point about three, four months ago when icos were rolling out, you know, almost every day. And they were fetching huge amounts of money this has cooled down now no doubt because the money theyre raising, theres no point in spending that money because the price of bitcoin keeps going up when we see other governments, whether its venezuela or others endorse cryptocurrencies but not bitcoin, what does that mean for bitcoin . Is that a good thing or a bad thing . I mean, im a little bit skeptical about the idea of bitcoin being used as a medium of exchange. The funny thing is the more it goes up in price, the more it becomes asset. The less useful it becomes as a daytoday currency. People wont be using it it because of law, people will be hoarding it instead of spending it in terms of what sort of service it can provide to countries like venezuela or zimbabwe, were looking at it from a western perspective. When youre on the ground in zimbabwe or somewhere, there is not the prolific use of bitcoin that is suggested. Its hard to spend bitcoin on a daytoday transaction basis it certainly is thank you for joining us still to come, President Trump expected to declare jerusalem the capital of israel. Were live in washington with details when Worldwide Exchange returns. Welcome back to Worldwide Exchange. Im wilfred frost. Red across the screen in asia, quite significantly so both hong kong and japan down the better part of 2 this morning. Hong kong over the course of the last five trading sessions is down almost 5 so quite a marked pullback in asia over the last week or so. Shanghai is down 0. 3 . Lets have a look at europe as well thats lower, but not quite to the same extent. Germanys down a percent or so the ftse is basically flat france is down 0. 66 the sectors that are suffering most, both in asia and in europe are tech and basic materials basic materials suffering because of that 5 slide in copper yesterday futures this morning are not perhaps as red address you mis expect tech is slipping today s p is down 6. 7 yesterday we did see tech attempt a recovery the nasdaq was the outperformer. That recovery didnt last. We were down 0. 4, 0. 5 for the s p and the dow. One famous wall street investor is giving a big green light for the markets. Carlyle groups David Rubenstein speaking at the netnet dinner last night saying he only has one worry over the next couple of years 2017 is obviously doing quite well in terms of gdp growth and every other metric 2018 seems to be strong, based on what were likely to anticipate the tax bill will have favorable consequences for the economy i dont see unforeseen inflation problems or unemployment problems the only thing we have to worry about in 2018 or 2019 is some unanticipated geopolitical event, the socalled black swan. If i told you that tomorrow north korea launched a missle into south korea, that would have an effect on the economy. If there was a 9 11 event that would have an effect short of those things, i think the economy is in reasonably good shape and will be spurred on by the tax bill rubenstein also talked more about the tax bill and what he thinks it means for the Business Community. Right now were playing the game this is going to increase the deficit by 1 1. 5 trillion over ten years who really knows the Business Community is reasonably pleased with the bill everybody will lobby for their little thing in the conference generally the Business Community feels this is a bill that is overdue in some respects theres some things that people in the Business Community dont love most people in the Business Community, i would say they generally think its a mosstipoe for the economy. You can read more about the netnet dinner on cnbc. Com he says really the only major thing hes worried about for markets is a black swan event. Thats different from other investors like ray dalio and jeff gundlach. Sounds complacent also interesting his comments about tax reform i spoke to Steve Schwarzman yesterday, particularly on the political implications for donald trump, Steve Schwarzman was a close adviser to trump for most of his first year, he said it was a game changer it was a whopper for donald trump thats another factor to look at even if we argue over the nua e nuances over which seconder will benefit more in terms of the market this is a big political fact their could change the tone of 2018 theres a lot of focus on what this does for the deficit but what is maybe missing from the conversation is we get tax reform through and it looks like this president and this administration will started focusing on welfare reform theres more to this story speaking of politics, President Trump expected to make a major shift in u. S. Foreign policy today and declare jerusalem the capital of israel. Lets get to tracie potts with the details of that. Good morning that would be a major change in u. S. Policy were also getting reaction before the president makes that announcement pope Francis Cutting that the u. S. Should keep the status quo to avoid conflict. Turkeys Prime Minister calling it a grave mistake move the American Embassy reporter fulfilling a campaign promise, this afternoon President Trump is expected to announce the u. S. Will recognize jerusalem as israels capital and eventually move our embassy there from tel aviv. It could start uprisings in the region reporter the move could anger arab nations, palestinians also consider jerusalem their capital. The state department is watching security, but not talking about secretary tillersons advice to the president. Its ultimately the president s decision to make he is in charge. Reporter the jerusalem announcement comes as donald trump jr. Speaks behind closed doors today to the House Intelligence Committee likely about his meeting with the russian lawyer and the trump organizations dealings with deutsche bank, despite multiple reports the white house denies fbi special Council Robert mueller subpoenaed the bank for records on accounts held by the president and his family no sub bepoena has been issu or received. Thank you very much thank you. Reporter the white house and the president s lawyer, john dowd, also not answering questions about this controversial tweet. It says the president knew former National Security adviser mike flynn lied to the fbi before firing the fbi director investigating flynn. Now, critics say that could be the basis for an obstr