Finally a look at european equities at this moment. Green pretty much across the board except for the ftse 100. Joseph, nice to see you back. About to be here. Couldnt be you know, it if you could do that, monday, tuesday, thursday friday. You like that schedule . A little recess . Yeah. Hump day . Slept until 7 00. Wow. 7 00 a. M. Was up until 9 30 the night before. Whoa. Living dangerously. Threw caution to the wind. Didnt think about going up until 9 00. They say nothing good happens after 8 00 p. M. Theres a song on alt nation, nothing good happens past 2 00 a. M. Little different. Bare hands. You dont know that one . No. You millennials dont listen to the new music. I thought nothing good happens until 2 00 a. M. I know you. I know you. I know you, my man. Any way thats when he gets up to start prepping for squawk box. Thank you. Thank you. Column, tv show, deal book. Davos man. Broader markets. Treasury yields, 2. 6. When is the last time we were at 2. 6 . Two years ago. Did we get there . We did briefly. Gosh, that was crazy. Wasnt it . Wacky fed who would have thunk, two rate increases in two years . Theyre crazy. Nuts, insane. There is the tenyear. 2. 63. Look at the currencies this morning. I saw the yen really got my attention. 1. 18 now. In the euro, people worry at 1. 05. The world will end. Inching towards parity. Good time. Good time to go to paris. Some strike around the eiffel tower, isnt there . Isnt that do i got that right . By the time you book your ticket and go, hopefully youre such a local at this point. I do. I do know i do know that place pretty well. Love it there. Price of crude. Hovering around 50 or so. Up a bit. 51. 29. Other big stories. Big story we would like kayla to do those. Im supposed to be watching some big stories today. Yahoo disclosing another breach, this time affecting 1 billion accounts. The hack attack exposed private information of those users such as names, phone numbers and passwords. Its believed to be the largest theft of personal data topping only the previous breach by yahoo of 500 million users. This breach took place in august of 2013. Its believe to be separate from the breach in september. It calls into questions verizons planned 4. 8 billion acquisition of yahoo which chis expected to close early next year. After the first breach verizon said they may renegotiate some terms of the deal because of the hacking. Yahoo shares down 4 . Well see if we get comment out of verizon or executives about what this means. Other deal news, shares of mondelez on the move after a report surfaced in a swiss magazine that kraftheinz is supposed to acquire or should we say reacquire . Thats what it would be. The stock rose as much as 12 . Thats the stock of mondelez. Cooling off after the potential target said it has not heard from kraftheinz about potential takeover. The stock up about 3 in trading. Mondelez said there is no reason to believe theres truth in the report. Officially Neither Company offering a comment. Hours after uber began picking up riders in San Francisco in selfdriving cars, california regulators ordered the pane to shut dont pilot program. The state department of Motor Vehicles says uber must get a permit to test Autonomous Cars on public roads or face legal action. The dmv issued permits to 20 companies, uber is not one of those companies. Uber says it cars are not truly self driving because they need a driver to take control of the wheel if needed. It is familiar with legal action. In pittsburgh, they got permission. This is different. Always question whether technology or government, who is chicken or egg. Whether the government can actually catch up to the technology. They ask forgiveness rather than permission as a rule generally. We have a jobless claims, Consumer Price index and philly fed surveys at 8 30 a. M. That always excites steve liesman. Followed by the home Builder Sentiment survey at 10 00 a. M. A pair of tech names reporting after the bell, oracle and adobe systems. The fed hiking Interest Rates for the second time in a decade increasing the expected rate hikes in 2017 from two to three. The Central Banks language took a toll on the markets yesterday. Steve liesman has more on the feds message to the market which is still pricing in two rate hikes for next year. Well, if you look at the twoyear this morning. Its up near 1. 20, almost 1. 30. As soon as joe said 2. 60, it was old, because it was 2. 62, 2. 64. The spread between the two is on the rise. Its interesting to me. I thought the market was on board with higher stocks and higher rates. Yesterday got a little spooked. This morning its like im in for a dime, in for a dollar on the idea. The fed was tilted a bit hawkish. We came in the fed survey showed there was a split in the market about whether or not they were going to do two or three next year. We had an average of 2 1 2. Half the market was not priced in for the third hike. Three hikes in 2017, only a slight increase in growth with a somewhat rate inconcrerease in outlook. I want to show you lets listen so what she said when i asked her about do tax cuts increase productivity . Are they the sort of thing youre looking for when it comes to fiscal policy . Tax policies can have that effect. It really depends on the specifics. I dont think theres anything that i could say in general about what tax policy would do. I really cant tell you what the feds response would be to any policy change, is that are put into effect. That was the first of nine, ten, 11 attempts to get the fed chair to comment on the incoming president s policies. She was not really taking the bait. One more thing i want to show you, how did we get to three hikes from two . Didnt take much. You had a decline in those who were in the twohike camp, a decline in those who were in the fourhike plus camp. They met in the middle. We were already close. Its not that big of a change. It only took going in two guys to raise the forecast for 2017 to get there. It strikes me if thats the new news to the market, its over reacting to it. What was dan rathers thing . He said courage. Thats the word i come up with on this. 4. 6 unemployment. The second rate hike in ten year years. Taking the punch bowl away, saying no to people. No, we cant stay at zero. Courage. At 72 no62 now better than z. I have schlossberg here, Boris Schlossberg and david bianco. You speak some russian, dont you . I do speak some russian. We all will speak russian it will become very popular since were being taken over. Exactly. I forgot. I have a russian here. Now its cool. I hope kraft does it, if they buy mondelez, will that name go away . Do you know . Will that name go away . Mondelez . Will it come back to kraft whatever . Can only hope. You know where that word comes from . They had a contest with 1700 entries with employees. They came up with a match up of latin mushing together world and delicious. In russia, it is as profane as you can get. Its some type of oral sex, is it not . If you say that to a russian, theyll slap you or fine you or can you tell us what it means . Are you afraid to do that . I think ill refrain myself from saying what it means. Did you know that . I did not know that. Family programming. 6 10 a. M. I think were okay with saying mondelez, unless theyre watching in russia. As long as you say it with that southern twang. Dont you think of seinfeld when you hear of that . Mandoley industries. How about the fed increase . People dont know that. I have two russians here. Two communists, but any way i thought the feds tone and what happened in the dots is just about perfect. I think theyre signaling they do expect some fiscal stimulus. Theyre awake at the switch but not doing anything or changing the course in a definitive way until they see the fiscal policy. Isnt once again the Global Situation masking how behind the curve they are here . Probably giving them cover to be behind the curve and now, with rates at 2. 6 and people expecting gdp higher, theyre allowed to raise. They may extricate themselves despite their best intentions. They may get out of this. Were all expecting a faster pace of hikes. They may be able to without repercussion. Thats welcome. Growth might pay for the higher Interest Rates. I dont think theyre behind the curve at all. It was surprising to see her rhetoric, which was much more hawkish than the reality on the street. The only factor that matters is wage growth. Wage growth is still not there. Retail spending is still not there. Those two things start to go up, yes, were all on board for further rate hikes if we dont see that improving were dead and done. Heres what i saw yesterday. Fake news is all the rate. Hearing were at full employment, someone on the right of things said fake news with 95 Million People not in the work force and cant get a number. Its a fake number. Say 95 out of context is a bit out of context. You know what the number was before the financial crisis . 85, i believe. Still at 40year lows. Half of that is probably retiry retirees. If were that tight on unemployment what janet yellen did, hey, if we can bring some of these folks back into the work force, we dont have an immediate inflation problem, why not try . The reason is a sophisticated reason, the notion called historesis . Thats the process of when you sit down on a couch, you get up, the pillow doesnt bounce back. The fear at the fed, beginning with bernanke to janet yellen is do we get into an unemployment problem that does not snap back with the economy . Their notion is run hotter. I think now that theres some help coming from the fiscal side, theyll run more neutral to a touch hotter. Only if they get support on the wages. If wage growth is not there, the fed stays still. Mark my words. Theres a new show in town, fiscal still plmulustimulus, the rates pivot on. They want to see the Corporate Tax cut as soon as possible. Thats what the fed wants to see as well. Theres a question do we absolutely get that . Goldman sachs says we wont get that until 2018. It will be talked about for a long time, but we wont get it until 2018. If they want to keep it simple, get it moving quickly, drop the Corporate Tax rate, dont get embedded in complicated thats the question. Is that enough . A simple rate drop as opposed to how do we manage the territorial tax system . Its extremely confusing. If they want effective stimulus do that another day, drop the Corporate Tax rate as soon as you can. Do more later. You may not get the shot the second time. I dont see any good outcome from the border, so i would focus on make the u. S. Corporate tax competitive and not introduce protectionism into the policy. In the meantime the clear benefit here is to the japanese, the biggest winners yesterday were the japanese. In six weeks donald trump made more roads into the japanese economy. And the nikkei economy skyrocketing lower. It went up. I know, but the Dollar Strengthening against the yen, right . The Dollar Strengthening against the yen makes the japanesecorporates the yen is not rocketing, its plummeting. A piece caught my eye, it says why china is so afraid of the u. S. Feds rate increase, because of what happened in january and february of this past year. It creates turbulence in the yuan. Theres bad debt in china. A lot of it is tied to the dollar. Theres fear on the other side. China is the other interesting point. If we have more tensions with china, they warned they will investigate starbucks and gm. If they clamp down on u. S. Corporates in china, the japanese corporates are winners by benefit. Theres no love lost between japan and china but they will benefit by default if theres tension between the u. S. And china. Rick santelli yesterday thought it mattered to the market that janet yellen did not in any way bless the policies of the incoming president. I wonder if thats a good thing by giving the market a wakeup call about the uncertainty surrounding the president elects policies. That we dont know how much is coming, when its coming. Its very hard which was essentially her point, very hard to game the potential Economic Impact because we dont really have a plan. Its normal for a fed chair to not be overly opinionated on fiscal policy. Clearly i think what you have happen is a fed that welcomes fisc fiscal stimulus, one of the best ways to spend that wallet is that Corporate Tax cut. When we see the exact package from the tax cut corporate to personal, then the fed can right size their policy against that. For 2017, are you balls to the wall . Are you what do you think . I think the s p its okay to say that. You know what that means . I follow you, joe. What does that mean . Thats a pilot of a jet, the throttle has balls in his hand. Pushing it all the way to the wall. Nothing dirty. I would think he would have his hand on the throttle. That is the throttle. Never mind. You have a target for 2017 . Yeah, 2400. Not much of a gain. Like kissing your sister. We like it. Thats like 4 . Thats not balls to the wall. Thats, okay, well land. Theres financials, healthcare, tech how about 2800 . Take a stand. 2400 . Well take a stand one step t at a time. All were saying is it doesnt go down. Thats as manly as youll be . We think the markets rallied which is expected and appropriate. The markets should be in the 2200 range. I feel like im on the simpsons and santas little helper, woof woof woof, food. That is not balls to the wall. Why is there any surprise every time hong kong follows the u. S. , as if we didnt know that will happen . Its natural. You make easy money on that. Thats why youre smiling. You sound angry. Emotional. Im not angry. The market knows whats happening, and schlossberg makes money. You flinched again when i said balls to the wall. Its tough. Why did you flinch again . Its fine. Its a throttle. Discussing jobs, immigration with president elect trump yesterday, jeff bay soezos sayi was a productive meeting. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back. Tech ceos representing more than 3 trillion in market value meeting with president elect trump yesterday afternoon. Want to get over to john harwood with more on this story live from outside the trump tower. Good morning to you. Reporter good morning. You had the potential for conflict in this meeting given the fact that some of the people in attendance, including tim cook of apple, jeff bezos of amazon among many others had tangled with donald trump during the campaign, but that was not the donald trump who showed up. Campaign is over, he moderated some of his rhetoric on some issues, and donald trump praised the tech executives gathered around that table as the best in the world and promised to have open lines of communication with them. Heres donald trump. Theyre all talking about the bounce. Right now everybody has to like me at least a little bit. Well try and have that bounce continue. And perhaps even more importantly we want you to keep going with the incredible innovation. Theres nobody like you in the world. In the world. Nobody like the people in this room. And anything we can do to help this go along and well be there for you. You call my people, call me. It denoesnt make any differenc. We have no formal chain of command around here. Interesting phrasing in a meeting where his Vice President was there, saying theres no formal chain of command. Three of his children were there along with jared kushner, that wi will fuel concerns about his businesses and the presidency. The flip side of his message using tariffs against countries and other countries if theyre not competing fairly with the United States. The rubber hasnt hit the road. The policy choices have not come. One thing to watch is the issue of immigration, especially since the incoming attorney general, jeff sessions, has talked about restrict i restricting h1b visas, important to the people in the valley. Well see what happens in january. I think what he meant, about no formal chain of command, that you can call me. Yes. Youll probably make the headline trump admits Management Structure is in disarray. That could be a good headline for you on that. I dont think he meant that. I think you can reach right up to me. You could look at that in a half empty way . Yes, i think thats exactly what he meant. Okay. Thats a good thing. A couple things. I talked to a couple people after the meeting, there was a suggestion, even though i know jeff bezos said it was productive, but they felt like props in terms of the images and what took place there, that the meeting necessarily was not necessarily substantive and didnt have to happen the way it did. It was more theater than, you know, a true meeting of sorts. Well, no doubt about it. This was a principally a symbolic gesture by the president elect to an industry thats extremely important to the american economy. As we discussed before, donald trump said in a rally the other day when some people in the crowd started saying lock her up about Hillary Clinton, he said, well, that was good for its in the campaign, but we dont care about that so much now. I think Donald Trumps attitude for the moment, hes said hes a counterpuncher. You notice these companies did not say much coming out of that meeting. I think theres a reason. Theyre trying to keep their head down, even as they believe john, we have to run. Unless theres questions on how to fix itunes syncing problems, i dont understand why trumps kids were in the room. That was a tweet yesterday. I dont understand that. You dont want his kids there . I dont. Not if theyre planning on running the business. Coming up, full analysis of the rate hike plan and a look at how things could change under the Trump Administration. When whirlpool builds an appliance, they put everything they know into it. But once its sold, there usually isnt a way to keep improving that product. Today, whirlpool can analyze iot sensor data from connected appliances on the ibm cloud. So they can continuously learn how customers are using their products. And how the machines respond. Harnessing data to make great products better thats what the ibm cloud is built for. Its been over 100