Now. Good morning and welcome to Worldwide Exchange here on cnbc. Wall street waking up to a world of worry again from china growth fears to investors here at home. We have it all covered for you. Its so good that youre here with Global Investors on high alert. All the threats right now coming internationally. Geo politics, economics, you name it. Its great to be here and discuss it but the real expert is coming up which is special guest Peter Oppenheimer to add all of his perspective north korea with its First Hydrogen bomb test. It could be the First Nuclear test since 2013 and continuing un sanctions, the White House National Security Council not confirming the test claims just yet but in a statement a spokesman called on North Carolina to abide by its International Obligations and commitments. The Global Market on edge as the situation does of course add to already existing geopolitical uneasy. U. S. Equity futures under pressure. Theyre down to the tune of about 20 points the s p. Dow down 162 points and the nasdaq called to open lower by 46 points. Most of asia ended the session lower as well. Shanghai quarter this week but there we have japan down some 1 . Australia dwoun just more than 1 . Korea itself effected, not hugely, and then hong kong off 1 itself. Those Chinese Markets catching a slight bounce today. Other factors there as well like extending that big sellers ban. Now one market in asia writing one analyst in asia writing this afternoon saying that north Korean Nuclear tests added a touch of armageddon fears to the market. This isnt the first provocation. Everyone is trying to figure out how serious of an event it is for markets. Were going to hit the yuan in a minute already going to a record low on the offshore, on less regulated markets. Services number out of china weak. Well hit that but you have to be watching the south korean market. Thats the kospi and it has remained a little bit resilient in the face of the new threat which if confirmed would be the First Hydrogen bomb test by North Carolina. Kospi down a bit. Some of the military companies in South Carolina rallied hard helping offset the decline. The south korean yuan is another market you want to be watching. Its this geo political environment we find ourselves in. Its been the main safe haven beneficiary this year. Particularly in asia. Thats the case again today, the yen is up this year. Its the fear factor. The fear factor. Obviously in the u. S. , thats sort of the option. The gauge on wall street. Dropped below 20 yesterday and to the close people saw that as a good sign. Obviously it looks to be elevated again today with futures under sharp selling pressure as the world reacts to the latest global threat. Exactly right. Lets get a perspective on this korean situation from london. From nbcs bill neely. Bill over to you. Yes, this test is bound to spook the markets and certainly caused concern in washington, london and beijing. It was first announced by the u. S. Geological survey that said there had been a 5. 1 earthquake in an area close to where other Nuclear Weapons have been tested in 2006 and 2009 and 2013 and then up came a north korean state announcer claiming that north korea conducted its First Hydrogen bomb test and claiming this is in response to u. S. Aggression. Now that line is an old propaganda employ. Its always saying that the u. S. Is about to invade. Always saying that it needs as many and as powerful a weapon as it can to resist that but this test certainly was a surprise. South carolina has confirmed it although they are casting some doubt as to whether this was actually a Hydrogen Bomb test or something between an atomic bomb test and an hbomb test. Theres a big difference. A Hydrogen Bomb is about four times more powerful than an awe topic weapon. It is lighter. It can be weaponized more easily so it is causing concern not just among the regional neighbors but in washington and elsewhere as well. Kim jong un said in december that inconorth korea had a hydr bomb. But it appears to be some proof that it has tested Something Like a Hydrogen Bomb for the first time. Back to you. We have a chart that we can look at very quickly and shows the difference in term of the power of these bombs. It shows the size relative to some others. Compared in terms to the number of tests. Separately also just to temper the level of expectation of what this might mean for markets, although this would be a big step forward this does not escalate the immediate threat. So were playing it down. Playing it down, exactly. Therefore expect the immediate Market Reaction we have already seen to be short lived. The kospi down a quarter of a percent. Its a pile on. Its only been three this is the third trading day of 2016 and the notes coming early this morning suggesting hah investors have a world of worry. Yeah. Right now. Its geo politics. Its economics, obviously and then of course the fed and the u. S. And the data really picks up heavy today. We do want to mention china because it did buck the trend out of asia. Everybody is watching the Chinese Market. The main indices there up. It grew at the slowest pace in 17 months. At the open, the countrys regulator did announce the ban on major investors and it will continue. It was set to expire on friday. That was causing anxiety. It was put in place at the end of last summer during all the selling so thats why you saw a boost there. Also playing into the china story, of course the yuan. The dollar yuan, this has been such a focal point for investors right now around the world. Continued weakness in this currency. The chinese letting the currency depreciate and then in the offshore market less regulated, more traded, more speculative. You see a record low. Investors are worried and analysts about the pace. The chinese currency weakened 2 . From currency terms its worrisome and theyre wondering what it says about the weakness in chinas economy. The other sign of weakness is that Services Data out this morning and part of the economy that was still propping things up was services. So services is now cooling off. Thats another worry for the Chinese Market but the yuan move is certainly very relevant. Lets have a quick look at what this means for euro trade. 1 declines across the board for the three major forces in europe. Investors hoping the free fall in apples stock would end in 2016 and are now holding on to what left the companys triple digit stock price. Apple stock hasnt closed below 100 dollars since october 2015. Hi there wilfred. Good morning to you. Apple shares falling another 2. 5 on tuesday on continued worried about slowing iphone shipments. Those concerns fanned by a report in the nikkei business paper. The Company Plans to cut production of the latest iphone by 30 this quarter due to mounting inventories. Production will return to normal next quarter. Forecasts by some out ward suppliers is stoking fears iphone shipments could fall for the first time and growth is more difficult as the Smartphone Market continues to mature and thats bad news for apple as it depends on iphone sales for the majority of its profit. I do think its getting hard tore really differentiate yourself from what else is out there. If you take a look at most smartphones theyre all rough through same size and thickness and the differentiation is in the software but even at that level theyre all the same. Consumers would like to be dazzled but its hard to guess what apple can do this year to dazzle people. At 102. 71 apple stock lost a quarter of the value. Wiping out 176 billion in shareholder wealth, wilfred. I was going to say were watching that 100 level closely. We havent closed below that level since october 2014. Any action in the asian suppliers . Well, we are seeing that fall out in shares of suppliers in asia as well. Its more than four month low and its funny because we used to watch to see how high apple stock would go and now were waiting to see how low it will go. Back to august lows after a 4. 6 drop last year though. The chart if you zoom it out over several years straight up. Also samsung off nearly 3 today. It has its own guidance coming later this week. Still to come, chief Global Equity strategist Peter Oppenheimer. Well get his perspective taf break here on Worldwide Exchange. A big solution an antiviral. Dont kid around with the flu, call your doctor within the first 48 hours of symptoms and ask about prescription tamiflu. 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The next wave of the internet requires the next wave of security. Were ready. Are you . Welcome back. Breaking news out of north korea. The state did successfully conduct the First Hydrogen bomb test. Only adding to market fears. U. S. Equity moves in the red. Dow futures down at this early hour nasdaq down 53 continuing what has been a bumpy ride in 2016. Now to todays trade stat of the day. This weeks sell off pushed a group of stocks over into oversold territory which has them set up for potential rebou rebound. All could rise by 5 pktd and this is based purely on historical moves and data. Findings based on me tricks used by the best Hedge Fund Traders out there. Gouk to you can go to cnbc. Com. Our next guest expects price levels for major european indices to rise through to 2018. Peter oppenheimer joins us now from london. Peter, good morning to you. A very happy new year. Also i can say happy christmas as well. So far in 2016 markets totally driven by International Events. Is that a phenomenon you think will continue throughout the year or is it a week one issue . No, i think that the number of high degrees of uncertainty and that will continue throughout this year and we see it as high throughout the year. So while we do see some opportunities the main view that we had for this year is one of quite high volatility. A flat market but relatively low returns throughout the year. Given the heightened geo political tensions which youre obviously worried about whats your preferred way to stay safe . Your hide out . Japanese yen . Gold, treasuries . All in rally mode this morning. It will be a difficult year generally because we think that youll get low and not negative returns and fixed income markets. Of course yields are coming down at the moment because of uncertainty. Through the course of the year we think inflation will pick up a bit or inflation expectations. Rates will probably rise but more quickly in the u. S. Than the market is pricing and that will give, we think negative returns in bond markets. But a lot of that will come between differentiating between domestic exposures and between industrial exposed companies and those are the more exposed to the consumer. Peter, lets pick up more on that. I noticed in the Goldman Sachs 2016 out look you write that sector choices for 2016 will be more important than country choices. Why is that this year . And what are the conclusions for investors. In the case of the euro thats already started to be the case through last year. We reversed the pattern of seeing very wide dispersions in country returns which really is a reflection of the financial crisis and europe being at the epicenter of it through the last several years. As we went into last year and europe moved into a qe program and they narrowed and continued to be quite tight we saw differentials across sectors were more important than differentials across countries. I expect that to continue. We saw big differences in sector returns last year. Of course with things related to commodities in particular being big underperformers, exposures to em also being very weak but at the same time we saw quite strong returns in parts of the market, particularly more domestic and more consumer facing areas and that again is the trend that i think will continue for sometime because the valuations are not yet stretched enough across the different sectors to prevent that from continuing. I wonder how you view the china concerns front and center in this new year . Is there something fundamentally to worry about . Or can you brush it aside through the stock market volatility or the perks as they try to figure out the rules toward letting traders trade their market . Well, i think its a fundamental story about a slow down in china. A slow down that we think will continue. A bumpy slow down. The focus at the moment is the on going weakness and the fact that its stabilizing the economy and theres more concerns about further weakness in the Exchange Rates and the way that that is flowing through to markets more broadly is via concerns about other ems as the rnb weakens forcing other em countries to see their currencies weaken and that slows growth expectations. Its particularly important for other em countries but also for europe. Germany, the dax has about 12 of exposure directly to china so it matters a lot. Just a look at your list of top stock picks for the year i dont see a single u. S. Bank in it but quite a few international banks. The likes of Deutsche Bank and barclays. Why no u. S. Banks . That list is specific to europe. We do actually like u. S. Banks and we think theyll do well in an environment where the domestic economy is solid in the u. S. And now actually Interest Rates rise more quickly than the market is currently expecting and that we think will generate better margins and returns. So thats an area we do like. Thank you for joining us this morning. Make sure that i look at the full list next time as well. When we come back the United Nations will be meeting today after north korea successfully conducted a Hydrogen Bomb test. Live from washington on this developing story coming up on Worldwide Exchange. Welcome back. Tow futures down almost 200 points but first todays business travellers forecast. Curtesy of Grant Johnson who joins us from kxas in dallas ft. Worth. Good morning to you. Easy to see where all the action is again today. Its out to the west. Another day of wild, wet weather. Much of california already seeing a couple of inches of rainfall causing problems. More wind and rain on the way today and that stretches up into the pacific northwest. So some travel delays. Potentially seattle, portland due to the wet weather. San francisco more rain coming on shore and los angeles more rain building in from Southern California during the day. Its far from over. A couple more inches of rain as we head into the weekend. Phoenix with wet weather here this morning. Minneapolis will see snow later today and into tonight and of course that big mess out to the west. To the east chilly conditions throughout the midwest and once again in the west coast. Only in the 50 with that Rainy Weather in San Francisco and los angeles. Back to you in new york. Thank you for that. Right if youre just waking up lets get you up to speed on the overnight market action. Weak Services Data and the authorities fiddling with the currency and market rules. Also that issue out of north korea testing a bomb. That weighed on asia markets. Also weighed on europe. Theyre down about 1 . And theyre down more than the main asian. 1. 5 decline at the open so heavy leadership from the international situation. The yen at 11842. It has risen by over 3 so far this year already. Sarah. Wilfred, north korea successfully conducted the First Hydrogen bomb test. The u. S. Security council not confirming it at this point but they called on north korea to abide by its International Obligations and commitments. Tracie potts is in washington. Nothing official from the white house yet. Nothing official from the white house. We have the first reaction from the United States is from our ambassador to japan. Carolyn kennedy meeting with the Japanese Foreign minister saying that the u. S. Will stand be its allies on this and work closely with them in coming days. Japan says that they definitely see this as a major threat. We have also heard from marco rubio on the campaign trail. Our folks tell us to look for him to hit hard on this in coming days. North korea making this announcement this morning that it has successfully tested what is believed to have a miniature Hydrogen Bomb which could be as much as four times more powerful than the atomic bombs that were dropped during world war ii. The Fourth Nuclear test and although the u. S. Cant confirm it and could take days to verify it were hearing that they recorded a 5. 1 earthquake in an area that south korea says is very close, about 30 miles away from north Koreas Nuclear site. About 55 miles away from their border. The chinese said they felt it near the border. On north korean state tv officials saying it takes them to the next level and its certain to rachet up the tensions that have already been there between the United States and china and japan and north korea. Absolutely. Thanks for the update from washington. When we come back, 140 characters synonymous with twitter since the beginning but could longer messages be the key for the turn around for the company . Im not so sure. I like this. But first as we head to break you have to be watching the major currencies right now. A flight to safety as futures point to a lower start. Dow futures lower by 200 points on continuing geo political fears out of north korea this morning. Much more on the markets when Worldwide Exchange comes back. Sfx ding, toilet flushing sfx music begins febreze air effects heavy duty has up to two times the odoreliminating power to remove bathroom odors youve gone noseblind to and try febreze small spaces heavy duty. To continuously eliminate up to two times the odors for 30 days febreze small spaces and air effects [inhale exhale mnemonic] two more ways to breathe happy. Breaking news this morning. North korea successfully tested a Hydrogen Bomb. The United States Security Council will meet today. European stocks down in early trade. U. S. Futures pointing to a sharply lower open here at home. Plus a little birdie says change is coming. Why twitter should abandon its 140 character limit. Its tuesday, january 6th, 2016 and youre watching Worldwide Exchange on cnbc. Good morning and welcome to Worldwide Exchange. North korea successfully conducted its First Hydrogen bomb came. It came after a earthquake was reported during a nuclear test site. It will be the First Nuclear test since 2013 and violates continuing un sanctions. Lets check in on what this means for Global Markets. The futures pointing to a significant move downward. Getting worse throughout the morning. This is a pattern on Worldwide Exchange. I dont know if its us or the world. Europe and asia, the u. S. Reaction is bigger today than the european well, the european ones are worse as well. Theyre down 1. 5 as you can see the dax and the cac both down that amount. Ftse just ahead of that. If we look at asia the close there which is what were just referencing, japan and hong kong down only 1 and there was other chinese action well come to a bit later. The extent of the short sell ban that was key that is ahead of the governments report. The big jobs report on friday. Calling for a rise of 200,000. Also we have the november trade deficit. December ism services index. Very important ones. Services make up a majority of our economy and also november factory orders and if thats not enough, this afternoon, minutes from the last federal vefsh meeting, not just any meeting. The historic one where they decided to raise rates for the first time in a decade. Look for results from monsanto before the bell. Although theres a big question. Janet yellen says the next one will be gradual. What the pace and trajectory looks like. They have four rate hikes baked in this year. Markets not so sure. Well have to see what they say about the criteria for when theyll go next. Absolutely right but the first one was the big one. Corporate news, Valeant Pharmaceuticals will appoint a chief to replace michael pearson. Last week the company said a group of executives would take over until he returned. Quite sharp declines for valeant. Yum brands chairman david novak will retire in may. The company is in the process of spinning off its China Business and lets have a quick look at verizon which is reportedly launching an auction to sell its data center assets. Reuters says the company is looking to get more than 2. 5 billion for that. This is a crazy stock story and with a ceo out on leave for pneumonia that they would replace. Its unclear whether this is going to be a permanent shift. Exactly and people quite unsure why its happening. He was so much part of the company and turning it around. More corporate stories for you, novartis is working on a new inhaler device. It would let people with chronic obstructive pulmonary disease record data. Planning to launch their models in 2016 and he is confident theyll reach an agreement with regulators on the diesel issues. Listen. The diesel issue damaged us here and we cant dispute that. Our dealership is fighting hard against it and really doing a fantastic job. Also i think theyre doing a fantastic job. I think once we sorted the diesel issue we have a wonderful switch. Volkswagen of america reporting december u. S. Sales down about 9 so clearly it is feeling the impact of this. A little bit disappointing from the enthusiastic forecasts. A bill below expectations but still more record numbers. Volkswagen of course sales in the u. S. Not crucial. Twitter may be reconsidering its time. It stalls ways to jump start user growth. Landon joins us with more on that. Get your fingers ready. Twitter has been considering abandoning their 140 character on tweets for months. The limit could grow to 10,000. The same is for direct messages. The change could come as early as marchand work like this. Only 140 characters of a tweet will be visible in your time line. Users wont see the rest of the tweet unless they click to expand it. Jack dorsey isnt confirming the move but argues longer tweets makes sense. People are already taking screen shots of texts and tweeting it and he did that on tuesday by posting a shot of a 10 paragraph tweet. Theres always room for innovation. Dorsey has fled the challenge long held at the company to boost profits but lackluster user growth in the Third Quarter and gave a weak outlook for q4. Dampening excitement about dorse yes return as ceo. Do we know what he thinks the immediate upside of the company is . Theyre finding ways around it but it makes it searchable so you can see users opinions and their emotions and that data is what is valuable to advertisers. I dont know how valuable it is. The stock dropped 3 on the news. On word of this. This has been a fascinating stock story to watch. It goes lower nearly every day. It has indeed. I like this though. Twitter is not a social media app. Its a news app. You want to be able to get more detailed information. You have to click to read all of the characters. They trained us they were originally trying to do text messages. A new twitter question of the day. We were on the news and top stories. Thanks to your responses we have a poll. We do. The results are going to come up now and well come to that when we do have it. Thank you very much. The question is for how long in 2016 will International Event bs the driving force behind u. S. Markets . And the options were this week, this quarter, or year. Jim cramer says buy fiat until 2017. Good morning, jim. Now for the other top trending stories. Fitbit announcing the blaze. It comes with a heart rate monitor. Can link to your smartphone. Offers differ bands similar to the apple watch. The blaze will sell for 200 when it comes out in march. The stock got hammered on the announcement which came out of the electronic show in las vegas. Take a look at shares of fitness trackers over the past few years. It closed down more than 18 on the announcement of the new product. Very strange to have a new Product Announcement with all the glitz and glam. I picked out this chart which shows the demand projections and if you can see theres a slope up and it really kicks into high gear starting in 2016. Will they gain mass consumer appeal . So far not so much. Its been about evolution and not revolution. Its been about effecting apple where the focus is on the iphone rather than anything new and thats an issue with fitbit. Fossil announced it will be working on it and under armour is getting into the business. Everybody is doing it. Well see which one is the must have. Samsung underwhelemd as well. A beef company is recalling 90,000 bounds of its product. According to the usda, theyre recalling their pattis because they may be contaminated with extraneous wood material. Nobody has been hurt though. Thank god. You see that headline and not good. Still to come, todays must read. Ben bernanke weighs in on the currency wars. Youre watching cnbc. First in business worldwide. Dai. With over 6 million prescriptions and counting, its the 1 prescribed sglt2 inhibitor that works to lower a1c. Invokana® is used along with diet and exercise to significantly lower blood sugar in adults with type 2 diabetes. Its a oncedaily pill that works around the clock. Heres how invokana® reduces the amount of sugar allowed back in to the body through the kidneys and sends some sugar out through the process of urination. And while its not for weight loss, it may help you lose weight. Invokana® can cause important side effects, including dehydration, which may cause you to feel dizzy, faint, lightheaded, or weak, especially when you stand up. 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Thats why lifelock does more than free credit monitoring to protect you from identity theft. We not only alert you to identity threats, if you have a problem, well spend up to a Million Dollars on lawyers and experts to fix it. Lifelock. Join starting at 9. 99 a month. Triple digits here in the u. S. All the geo political tensions and word that north korea is claiming to have tested a Hydrogen Bomb. Well tell you about a notable passing on wall street. He guided the firm through a period of major expansion. He was 95 years old. He led the firm in the 70s and 80s. Morgan stanley issuing a statement saying he lead Sweeping Change expanding its scope. He is credited with creating its trading and merger advisory departments and of course we wish condolences to his family. Absolutely right. May he rest in peace. Lets move on and talk at this mornings must read stories catching our attention. First in the Financial Times titled middle east paved the price for a poorer weaker house of saud. He writes that while insecurity may explain why the saudis lashed out the principle victim will be the house of saud itself. Theyre bound to polarize politics further in saudi arabia and beyond helping them kindle an affinity with the community. So far we have focused on whether there will be conflict between iran and saudi arabia. The bigger threat for the royal family in saudi arabia is possible revolution within its own country. And that was enough to put up with the current leadership and this time around theyll have to cut welfare payments and tensions are rising so thats a big concern. Well, that saudi budget was a real eye opener. It showed the damage and destruction on this economy which is also why its so crazy that were seeing the prices crash this morning. This is from ben bernanke taking on his credit in every single point. He wrote what did you do in the currency war, daddy . Then he wrote although the feds monetary policies of recent years likely put downward pressure on the dollar, the effect of the weaker dollar on u. S. Net exports was largely offset by the effects of higher u. S. Incomes on americans. Demand for imported goods and services as well. In other words he is saying we aint getting that weak of a dollar from all of my qe and zero Interest Rate policy and the net benefit was even bigger. He is really taking on those that accused him of starting this competitive devaluations. Firing back. Actually applied for china as well because despite chinese devaluations last year it was slightly positive. You always have to add that perspective. Accuse them of the competitive devaluations as well. Joe, becky and andrew are getting ready for squawk box. The twitter question we asked at the start of the day is for how long throughout the year will international period events be the driving force behind u. S. Equity markets . The results of the poll so far, 15 say just this week. 15 say for the First Quarter but a big 70 say for the whole year ahead. Do you agree . I do and not just events like what were dealing with today but just the globalization of the Financial Markets and the reason that its hard to raise rates in germany has a ten year and it has changed in the last five years id say where globalization is and its gotten to the point where you cant really consider anything without looking around the world and what happened the news out of North Carolina couldnt come probably at a worst time for where our markets are in terms of, you know, we are able to stabilize a little yesterday after testing the lows from monday but well test mondays lows again. More and more wall street firms have seen something that might not look that bullish. They went to 0. 5 on First Quarter gdp which is below where the atlanta fed is now. More and more firms are saying sell these rallies. Maybe its a good time to underweight equities. Going to get close to some resistance and its the first week and thats one of the great i did that for wilfred i think. Im starting to understand the queens english. For people from cincinnati, right . I can sort of understand i get the gist of what you said but you had it already. Do you want me to put on an american accent. Good morning. Now you sound like youre from cincinnati. Well, i dont know where this is from but im going to stop there. Back to my angst and worries, a lot of times you build a better base and well see but 2016 at this point i could invision anything by the end of the year but back to your twitter question, did you do it in 10,000 words . Busy day on the economical l economic calendar. A jump start with john silvia next. Stay tuned. Youre watching Worldwide Exchange on cnbc. First in business worldwide. Erics gotten used to the lingering odors in his bathroom yep, hes gone noseblind he think it smells fine, but his guests smell this. Sfx ding, toilet flushing sfx music begins febreze air effects heavy duty has up to two times the odoreliminating power to remove bathroom odors youve gone noseblind to and try febreze small spaces heavy duty. To continuously eliminate up to two times the odors for 30 days febreze small spaces and air effects [inhale exhale mnemonic] two more ways to breathe happy. See bright spots in this economy. He joins us now on set. Good morning to you. Good morning sarah. We wanted to go to u. S. Economic data but the news points us to geo political tensions again in north korea when the traders on the floor and the economic impact. Concerns about south korea because again its one of our Major Trading partners. Concerns about japan seasoned what is its relationship with china and building upon the comments that you folks made earlier is that Global Factors at least until the u. S. Election starts to be more in view will be probably the driving factors on the economic performance. When we talk about china, does it have more impact on the u. S. Equity market . Clearly its more on the equity market. Theres a lot of exposure and interest and the bet is on growth and we have economic divergences and youre quite right. Its relative to expectations that really impacts equity markets. Whether its china, the middle east, north korea today, all of it, these unpleasant events. Do you think it will keep the fed on hold this year . More than what the fed is projected. Rate hikes. I dont buy the four rate hikes. Thats way too aggressive. But again it will emphasize more of the u. S. Domestic economy where people focus d d disgretionary spending. Its very interesting how it has changed over the last six months and it is an interesting factor that so much of the markets are overweight the dollar and expectations on performance. You may see less performance than what is in the markets. Given whats happening with the dollar what you said about u. S. Stocks, Consumer Discretionary is the place to be why . The u. S. Consumer will remain resilient in the face of all the turmoil . Yeah. Its basically more job growth. Better wages than salaries and improving Consumer Confidence as well as technology is another overweight that we have because people are using technology and equipment to achieve the output they need given the lack of availability of skilled labor. Im so excited to be here to cover the u. S. Elections this year. Does that have a bigger effect on the markets . You wont see that until probably late march or early april when we narrow the field and theres more real hardcore policy discussions about economics. Tax reform, regulation. Thats going to influence the market. Given everything you just said youre positive on equities. Yeah. What would change your mind . What would bring you there . Going back to your earlier segment. Europe does not improve. Theres a lot more of the immigration issue and the splitting of the euro. People not quite sure about labor movements in europe. Japan having a lot of uncertainty about how effective easing will continue to be and then throw in north korea a little bit and continued disappointment in purchasing managers for china thats the global story which is i think the influence in the first half. Maybe thats where youre seeing wti crude flirt with the 35 level about to break below that getting slammed again. John, thank you. Thank you. Chief economist from wells fargo. That does it for todays episode of Worldwide Exchange. Coming up on tomorrows show, drew matus, chief economist. Hell give us his outlook for the new year. Im heading down to the New York Stock Exchange for squawk on the street. See you tomorrow. Only the best 1 of ingredients make it into our products. For transformed skin without expensive brands or procedures. Its the ultimate beauty victory. Nobody has any idea how old you are. With olay, you age less. So you can be ageless. North korea successfully tested a Hydrogen Bomb or at least a nuclear device. Still some questions that well talk about about whether it was an h not an a and the markets are selling off on the news european stocks falling. U. S. Futures pointing to a sharply lower open. Well test the lows we saw on monday. But a different story in china. Stocks rose sharply after china extended a ban of major shareholders and apple under pressure. The stock trading near lows not seen since october of 2014. It possibly could not mean triple digits. Well see but there is a report on iphone production and that could drive it lower. Its wednesday, january 6th and squawk box begins right now. Live from new york where business never sleeps, this is squawk box. Good morning and welcome to squawk box on cnbc. Breaking overnight north korea successfully conducted its First Hydrogen bomb test. This announcement came after an earthquake was reported near a