tv Worldwide Exchange CNBC January 15, 2016 5:00am-6:01am EST
under pressure. global stocks ending the week as it started with wild swings. a sharply lower open on wall street. >> shares of the tech giant getting hit hard this morning as it's server chip sales miss the mark. >> ge selling it's alliance pliens business to a company for more than 5 beside. it's january 15th, 2016 and worldwide exchange begins right now. ♪ >> good morning and welcome to worldwide exchange here on cnbc.
>> a flood of corporate headlines this morning. news to bring you on ge, intel, goldman sachs and many other closely followed names. but first our top story. market turmoil. u.s. equity futures pointing sharply lower as you can see. 243 points were expected to open down for the dow. the nasdaq down by around about 80 points and the s&p expected to open down by about 28 points. let's have a look at oil price which is have corrected to the down side today. a little bit of a bounce yesterday of course but we're locking at below 30 for wti. below 30 for brent and that reprieve yesterday seems like it will be short lived. >> perhaps technical in nature because futures are down sharply. here's what you missed while you were sleeping. what happened in asia overnight can be part of the story here. shanghai stocks entering bear market territory which means they're down 20% from the december 22nd peak.
if you're having a case of deja vu that's because this is the second time china has dropped into a bear market in five months. it breeched it's august low when the panic started. chinese banks giving 91 beside in new loans in december and that was down sharply from november. the chinese currency which remains a key focus for the markets stabilizing a bit. the people's bank of china setting a slightly weaker midpoint for the yuan but the fix has been steady now for a week despite setting earlier in the day. the yuan traded firmer. there's been a lot of volatility in the offshore market in hong kong. a big gap in the way it's trading relative to the official way that they have been managing it and that's causing a lot of anxiety in the markets. here's how the final session of the weekended in the red for the japanese nikkei index. for the hang seng in china. the hang seng in hong kong and of course i mentioned the
chinese market as well. continued concern about the currency. the new loans data didn't help. >> the lending figures are worth pointing out because even over the last 18 months when the liquidity taps were turned on from the authorities, the lending figures have continued really over that period to be weak. last months particular weak and even though they're loosening it's not feeding through to the market. do they need to do more than monetary policy? >> we come back to the question of whether monetary policy in effective. >> and just point out as well for the week as a whole we haven't seen the falls in the currency but lots of volatility, hots of volume highlighting that it still hasn't settled down and that weighed on the index today so bear market territory for shanghai. what about europe? a couple of hours into trading and they are in the red too of course. a strong bounce in the u.s. yesterday which europe didn't take part in. we thought we might get a bit of a bounce today but oil price
preventing that happening. germany is down 0.7%. joining us on the newsline to discuss this sell off is the editor of the gartman letter. a very good morning to you. yesterday's reprieve for u.s. stocks is it short lived? will it continue at all today or next week? >> well, wilfred, actually yesterday was nothing more than a proverbial dead cat bounce. it was a rather lively dead cat to be honest but only a temporary circumstance. i do think this is a bear market. it began globally last may. it only became obvious here in the united states over the course of the past several weeks. yesterday was nothing more than a modest direction and i'm afraid prices are headed lower still. >> oil sinking below $30 again for wti and brent. that seems to be a huge area of concern and anxiety for stock traders. i read a lot about iran coming to the market within the next few days and that's what is
pressuring crude. the china story and demand. what is it that you think is this gravitational pull downward for the price of oil? >> well, sarah, simply put there's a lot of crude oil out there. it's bidding for storage everywhere. they continue to get wider and wider. it's a problem that people are not paying much attention to and should. what has captured everybody's attention today and the course of the past several days is that brent moved to a discounty to wti as if that's unusual. it's unusual for the past four or five years but not the past 20 years. brent should traditionally trade discount to wti. simply put you have to move brent a lot farther. it takes more to transport the usual amounts of bren crude to their appropriate target zones and it's not unusual to see bren trading at the average discount. historically brent should trade
under. that's what happening and we're there right now. we'll probably stay with brent at a gattis count. iran is coming with a new supply of crude oil to the market. people should understand that and they're going to be aggressive. the saudis understand that. they're going to be aggressive. they're having a war, one with the other, rather than shooting at each other they'll fight a war over prices. >> you're pretty bearish then. where are you hiding? what are you buying? >> cash. that's the proper place to be. cash is the best place of all right now. in a bear market there's only three positions one can have. really bearish and short. modestly bearish and short or neutral. i think for the public neutral holding cash is the best place to be. it feels good at this point. >> you're not buying japanese yen or gold which are both rising today. >> what's happening and again, the yen strength has surprised me recently until it dawned on me what has happened over the course of the hast several
years, people funded their positions in the equities with the yen. now that they're coming out they're under winding those y, nerks trades. those carry trades. i think that if you don't own cash you should own a little bit of gold. the operative word there being a little bit. you don't have to own much and if you do own it you own it in euro terms. euro continues to weaken and will continue to do so. >> thank you for jumping on the phone this morning fresh off writing the news letter as always. a dead cat bounce for stocks yesterday. >> let's get an update on european markets. steve is joining us from london. steve what's happening there. >> well, it's another tough day wilfred. a lot more volatility. that's the fact of the matter. the regulators have changed the rules. central banks changed the rules. in many, many jurisdictions from europe to asia they rigged the markets. it's not just the chinese market. it's the japanese and europeans. the regulators have taken out a
lot of the capacity to banks and hence you haven't got the bufferers there anymore. a lot of the shorts are being taken out and hedges are being taken out. what did we expect when we did all of this? >> i agree. particularly coming to the end of the period of loose policy is weighing on lots of companies around the rld woman standing. tell me this, though, steve. we're looking at the ftse 100 over a week. only down 2.25%. lots of the rest suffering more over that time period and yet the ftse 100 is a commodity and oil heavy index. why aren't we seeing a bigger response in that index. >> i don't like looking at historical charts but the fact of the matter is when we get the big booms to the outside, ftse doesn't take part so much because we're exposed to oh, yeah, commodities. we're exposed to oil and china so the ftse that got to 7100 at
the high last year it's not had any bank on the upside for a long, long time. so when the xetra dax and other indices and the nasdaq in the united states are having great runs to the upside, let's pull out with the camera and have a look at this. it was a 20 pound stock a couple of years ago. it's down 46% and you have stocks like this that have come off so aggressively and where did you think they were trading? are the pes looking cheap in they're trading at 28 or 29 times forward. how can that be? that's double where the s&p is trading as well. so yes the stocks have come up. the operational performers have come off so aggressively that they might not even be cheap despite the massive declines over the past couple of years. maybe we have seen the bad news already there and people like dennis are just coming around to
the idea. >> thank you for that. great to see you. have a lovely weekend. >> among the corporate stories we're watching general electric announcing a deal to sell it's alliance business to higher. they plan to keep using ge alliances brand and the business will remain headquatered in kentucky. ge has been working on selling the eun since regulatory issues forced it to abandon a $3.3 billion sell to elecs ttro. >> uber ceo saying china unit is valued at $8 billion. back here in the u.s. goldman sachs will pay $5 billion. a lot of billion news to resolve civil claims from mortgage backed securities from 2005 to 2007. the agreement will reduce fourth quarter earnings by about $1.5 billion after tax.
so expect that when goldman reports in a few days. that's going to wipe out a big chunk of the earnings. >> but it's a once off. >> correct. >> and wells fargo. black rock as well. citi. intel has been grappling with the downturn in revenue due to slowing pc sales but the company has been able to offset that with growth from its data centers until now. landon has more on that story. >> good morning to you. intel beating fourth quarter forecast but slumming growth is raising new worries. they'll look into whether the slump in demand by focussing on supply and prosetcessors. it rose only 4% from the previous quarter compared to 8% growth in the third quarter and in october intel cut it's 2015 revenue out look for the data center business. intel results suffered in recent
years as consumers shift from pc's to smartphones to tablets. they're making a number of investments to transition itself at the consumer electronics show last week. they debuted drones, robots and new collaborations. stacy smith says the deal adds a new class of products to intel's portfolio. >> because we closed the altera acquisition we have a lot of accounting adjustments but on a non-gap basis we're forecasting a 62% gross margin for the first quarter which is right in the high end of the range that we normally see. >> the stock is down 14%. >> bhp will be writing down the value of u.s.shale assets by 7.2
beside. that move sparking speculation they'll be forced to cut the dividend for the first time in more than 25 years. all of that weighing on the stock down 7%. >> did you see the aussie dollar as well? 1.5% slide partly because of bhp. >> being a big mining producer as well. a lot are getting hit hard. also shares of dialogue rising in europe this morning. the company saying it won't enter a bidding war for atmel. earlier this week they called proposal from the microchip technology superior. >> urging yahoo! to prioritize a sale of the core business. a portion of its assets or the entire company and not waste any more capital on acquisitions. >> a few other stocks, analog devices cutting it's revenue guidance. weaker than expected demand in the portable consumer business down 2.2%.
shares in experian rising this morning. the results helped by strong growth in north america and latin america business. a move of about .5% there. >> morgan stanley naming new head for its fixed income trading unit. they're trying to turn around the struggling sector of the company. sam kelly smith will replace the current global co-heads and take on responsibility for the commodities division. it's flat in premarket trade. >> the docket is full of economic data and earnings today. let's tell you what to get ready for. december retail sales out at 8:30 a.m. eastern time with a small decline expected during the critical holiday shopping month of december. we already heard from macy's and best buy. the december and holiday sales were disappointing though some of them were not bad. also 8:30 we get the december ppi. producer price index with headline inflation there forecast to drop 0.2%.
and then at 9:15 look for december industrial production just before 10:00 a.m. january consumer sentiment and more fed speak. new york fed president bill duddy, san francisco's jon williams and the new dallas fed president are all speaking today. it will be all about the financials in terms of earnings. black rock, citigroup and pnc all reporting results this morning. >> all of the other earnings, also the fed speak more important than normal because of the uncertainty. everybody is looking at the markets through dovishness. >> good news from jp morgan yesterday. >> we did. >> and jim bullard that said that oil is starting to impact inflation. maybe changing the pressure on the four rate hikes. >> those did help rally yesterday and they become porn again today to follow suit and offset the bearishness we had overnight. still to come a live report from hong kong. another rough session there overnight but first as we head to break check out the u.s. stock futures right now pointing
futures have been deteriorating all morning long. session lows down 270 on the dow. down 31.5 on the s&p. a big reason why oil prices crossing below $30 barrel for wti in the u.s. and brent internationally again this morning. we're accustomed to seeing these moves. 5%, 4% down bringing losses to more than 10% for brent crude oil this week. we'll see what happens later in the session. wilfred. >> another bearish factor overnight is that shanghai stocks entered bear market territory now down 20% from the peak on december. on december 22nd. so a pretty sharp move to hit bear market territory so quickly. susan joins us now from hong kong with an update. very good morning from here. good afternoon to you. what's the sentiment as we end the week here? a sharp move ending this week similar to the sentiment of last week? >> yeah, we're characterizing what's happening out here in
hong kong and shanghai as a buyer's strike meaning that will are not a whole lot of buyers out there but there are sellers looking to sell into any rally and that's what happened today on this friday. but we knew that shanghai was going to drift lower after it breached 3,000 this week and technicals reporting to a retest of the 2015 lows and we have gone even below that. that's where we stand right now. the lowest since 2014. also this widening gap on shore and offshore and this despite china's effort to intervene and try to narrow that gap so this has investors shorting the markets, well, the chinese currency, still an overcrowded trade believe it or not because investors are looking to short some of the sentiment out of china. includes consumer names and commodities but there's some buying very little of it because they have to hedge these shorts and they're buying these with proven businesses like aia for
one and this is all part of that portfolio repositioning process we're going through and i should point out to you guys today is a friday and this central bank in china they like to move interest rates and rrr cuts on the friday heading into the weekend. that's something to watch out for. >> i was going to go there. what kind of policy response can we expect? another bear market is a black eye for the government. looks like they're again increasingly losing control of the stock market and the currency. do you think it's going to come down to a simple monetary policy fix? what other solutions are being talked about there? >> yeah, maybe monetary policy because some would say that the monday sell off that we saw was because of some disappointment that we didn't get some easing last weekend given what would happen with the stock markets heading into last weekend but this time around people are looking for some fiscal measures. in fact, speaking to a large institutional chinese investor they said hey that's something
to look for being midterm constructive believe it or not because we do have this change right now whether it's coming from the fiscal spending side refinancing costs are coming down. there's a rolling over of debt and look at the consumer names especially as we have the ending of the one child policy. better social safety nets. so that's something to watch for in the future. >> thank you very much for that and sarah the other factor which i'm hearing from sources out there but the premiere is under a lot of pressure. he's more responsible for the markets and people suggesting he's getting a bit of flac within the party from that. >> that would be stunning wouldn't it? to be a leadership change at the top. >> it would never happen the way we know the party i don't think it would happen in the short-term. after all the dust was settled.
>> a good time to get on the phone with your asian buddies. >> investors pulling $9 billion from stock funds in the last week. but shocking figures on that. but first, grant johnston joins us with today's business travellers forecast. grant. >> good morning to you. happy friday. starting off with a radar view here and we're zooming into the southeast. quite a bit of rainfall across florida pushing to the northeast into georgia. atlanta has a days worth of rain on the way. that system will hang out with a few thunderstorms underway pushing into the mid-atlantic states later on. snow moving through the rockies and another batch of arctic air coming down from the north. nice and mild to the south. out to the west more rain by evening. high temperatures show the arctic air up toward bismark. 16 for a high. 70s down in south texas and florida. and mainly 30s and 40s boston
and new york. cold through the rockies. not too bad out on the west coast. more on worldwide exchange after this. 32 years at this place and i've got 9 days left before retirement. look jim, we've been planning for this for a long time. and we'll keep evolving things. so don't worry. knowing what's on your mind and acting accordingly. multiplied by 13,000 financial advisors. it's a big deal. and it's how edward jones makes sense of investing.
stocks. clearly the pessimism is piling up as the worst start to a year ever takes hold for u.s. stocks. >> exactly right. they're pulling money out of all sorts of high risk investments and we're meant to be finishing the week on a positive note. while oil prices are sliding, look at that move in wti. below 30. that is weighing on all of the main bosses for u.s. equities. we're called down by 1.5 to 2%. lots of safe haven trades coming into play. the yen is up 0.6% and also have a look at the u.s. treasury getting close tore 2%. 2.05%. gold up as well about three quarters of 1% so another risk off day to end the weak. >> the highlights of last night's gop show down but first as we head to break we're asking
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>> hold on to your hats. another global market sell off to finish the week. oil plunging below $30 barrel. it's friday. you're watching worldwide exchange on cnbc. >> good morning and welcome back to worldwide exchange on cnbc. >> a flood of corporate headlines this morning. we have news to bring you on ge, intel, goldman sachs and amazon and many other closely followed nam names. the dow called down by 270 points and the nasdaq expected to open lower by 90 points. check out oil prices. wti below $30 barrel. brent at almost the exact same price and that reprieve we saw
yesterday appears to be short lived. >> best day of the year for the dow. best day for the s&p in six weeks. a lot of buying driven by crude oil. following crude oil lower. below 30. the second or third time we've seen that price this week. how low is it going to go? a lot of people talking about sanctioning with lifted as soon as monday. a lot of people talking about china. a slow down in demand and the fact that the shanghai went down into bear market. >> as soon as you get a bit of a bounce it opens up a selling tun for people. >> dead cap bounce. that's what he called it yesterday. >> he told us that this morning. >> right. so we'll see if yesterday -- if we can follow through on yesterday's positivity earnings. economic data and the news flow from overseas continues to heat up. >> i was asked where do you
hide? what do you buy? he said cash. a clear call from him. among the toirs breaking overnight, yen rahal electric selling to a firm for more than $5 billion as ge continues to down size and maximize profits. intel post a strong earnings beat but that was overshadowed. despite the reaction this wall street analyst is hopeful the chip maker has something in the works. >> what we do think that intel can do and is doing is going to align itself more closely with apple going forward and that is not in the numbers yet. we'll see how they do it whether it's through the mobile business they got or whether the foundry business they're developing, we think that's going to be good news later on this year. >> uber's unit in china worth $8 billion. that's according to the chief. there it raised more than a billion but it isn't profitable
in the mainland yet because of heavy competition. >> besides the global sell off the sparks were flying as the two front runners took their gloves off. no more playing nice between donald trump and ted cruz, john. >> well, and you summed it up sarah when you said the two new front runners. that's ted cruz and donald trump. remember donald trump has been atop the field for a long time. we just had a new poll though that showed that the race narrows to a one-on-one fight between ted cruz and donald trump ted cruz is ahead 51% to 48 4 3%. you saw that on stage hast night because donald trump went after ted cruz on the birther issue. the same one he used against president obama. he raised questions about whether ted cruz was eligible to run for president and the fact that there are questions means the republican party has a
burden it doesn't need. >> i tell you what donald, you kindly a moment ago offered me the vp slot. i'll tell you what, if this all works out i'll happy to consider naming you as vp so if you happen to be right you could get the top job at the end of the day. >> no, it doesn't -- i like that. i consider it but i think i'll go back to building buildings if it doesn't workout. >> now ted cruz also was drawing attention for the fact that his wife that is a managing director of goldman sachs along with him took out a loan against their assets in order to finance his senate campaign in 2012. that was not reported on his campaign contribution report. the new york times did a story about it the other day. ted cruz hit back at the new york times. >> the entire new york times attack is that i disclosed that loan on one filing with the united states senate that was a
public filing but it was not on a second filing with the fec. both of those filings were public and i made a paperwork error disclosing it on one piece of paper instead of the other but if that's the best hit the new york times has got they better go back to the well. >> ted cruz faired a little less well when the subject was what he called new york values. this is an attack he made against donald trump suggesting that like many in manhattan he was socially liberal, proabortion, pro gay marriage and in the heart laland of the country that might not play over well. donald trump invoked 9/11. this is a preview we'll hear the rest of the campaign where ted cruz hopes to knockoff donald trump and in new hampshire where donald trump still has a lead. >> are we writing off marco rubio as well adding him to the
likes of jeb bush that slipped too much as the date approaches? because clearly no mention of him in the summary just there. >> i wouldn't write him off yet but marco rubio did not have one of his better nights last night and you can see the graf stational force of the two emotional front runners. the outsiders cruz and trump commanding the energy of this race. and marco rubio found himself like jeb bush and chris christie, john kasich as well trying to elbow his way into this discussion. he does not command center stage the way that he has in debates past. >> thank you for joining us this morning. much appreciated. let's get back to stocks to watch today. bhp will write down the value of its u.s.shale assets by 7.2 beside. the move sparking speculation that they'll be forced to cut
the dividend for the first time in more than 20 years. a sharp move for bhp down 7.5%. we also have the aussie dollar off 1.5%. goldman sachs will pay $5 billion to resolve civil claims related to the mortgage backed securities from 2005 to 2007. the bank says it will reduce fourth quarter earnings by 1.5 beside after tax. it's flat in today's trade. analog devices cutting it's revenue guidance. the company is a key supplier to apple. they blame weaker than expected demand in it's portable unit down 2.2%. >> amazon wants to cut out the shipping middleman now. they may be setting their sights on the high seas. landon, i guess trucks planes and now ships. >> trains, planes and automobiles. amazon's china division registered to become a licensed
ocean freight forwarder. the move would allow amazon china to coordinate cargo shipments between china and the u.s. amazon wouldn't be buying and operating it's own ships. they take on the legal liability and handle the customs paperwork. the filing with the government is for amazon china which amazon bought in 2004 and that could mean they aim to shift goods from china to other countries and allow chinese factories to sell directly to amazon. it's the latest cig until that amazon plans to boost it's business in order to cut it's shipping costs and possibly offer services for other companies. last month the seattle times reported amazon is in talks to launch 20 cargo jets to launch it's own delivery service in the u.s. >> jeff besos has a plan when it comes to distribution. whenever you hear about amazon entering a new business the question is who gets hurt?
who stands to lose from it. >> it's all about the losers and right here it's the amazon resellers. those that buy from china and sell to the customers in the u.s. but it's also interesting to note it's not like an amazon prime service. this takes longer. more like four to five weeks. >> thank you very much for that. >> now it's time for this morning's top trending stories. nike extending it's sponsorship deal at ohio state. $112 million in products in nike. they signed contract with the university of texas austin and ohio state's main rival. that would be university of michigan which is an interesting take from addidas. >> i still cannot get my head around the size of college sports here. those kind of figures for sponsorship it's epic. >> it is and still smaller than the nfl. >> but compared to anything in
europe. >> and they continue to battle it out for some of these college teams. >> other trending stories, sad news, the husband of celine dion died last night after a battle with throat cancer. he was 73. a tough week as well for various stars passing away. >> yeah, actors, rock stars. >> chipotle will close all stores for a company wide meeting february 8th as part of the marketing rebound. this after the outbreak that sent the stock plunging. sounding upbeat this week saying he is confident he will recover from this. the stock recovered a bit. it's trading up a percent. interesting marketing destoicis to close the stores for a day saying we're trying to get this under control and clean everything out because shares have been suffering. >> bouncing back a bit this week though. >> right. according to this story brits
are losing their taste for lager. not all britts i can tell you. drinkers in britain are turning to the full body taste of bitter and ale. overall sales of lager have fallen 8% in the past years. they are expected to have consumed 930 million liters. >> this is your expertise. >> i'm not an ale orbiter drinker. i'm a lager drinker. i'm glad we can get european lagers here. because the main u.s. beers. >> they're so strong aren't they? >> yeah but the american beers taste like sparkling waters. this brit still likes european lager. still to come, must read articles including why the global shipping industry may now be stuck on dry land. oil prices plunging to levels we haven't seen since 2003. below 30 for wti and brent.
we'll have more on that as we come back and as we head to break a look at all the international markets currently in bear market territory. we're back in a couple of minutes here on worldwide exchange. 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 odor-eliminating power to remove bathroom odors you've 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.
the nasdaq by 88. the reprieve in u.s. equity markets yesterday appears to be short lived. right now to this morning's must read stories catching our attention, i picked chosen one in the financial times titled shippings globalization woes. here's a shocking stat. this week the baltic dry index fell below 400 for the first time since 1985. the index was well above 1,000. it was around 4,000 so clearly a sharp fall. the focus has been on oil. i thought it was worth highlighting the shipping index as well. the author of the ft says the more recent reason for slow trade is a combination of lower real growth in the emerging markets coupled with currency volatility. inventories are piling up. that leaves the shipping industry quite literally stranded. another thing to consider.
>> it's not as popular as it used to be. it's a measure of shipping prices. a lot of it reflects the iron ore demand but certainly flashing bearish signals there. >> just another industry to be aware of where possible bankruptcies could come up. >> international flows, trade, tourism, all the globalization sper connected economy sort of statistics. so we're approaching the top of the hour and that means that joe, becky and andrew are getting ready for squawk box. we asked on twitter today after shanghai composite went into a bear market overnight, 20% from the high, is the u.s. going to be next? i have to say the votes are coming in and overwhelmingly the answer is yes. it's a bearish signal. gives you a sense of the sentiment right now. >> this morning we have an excellent guest host with us right at the top of the show. larry fink will be here. he's the chairman and ceo of black rock and it's the world's largest money manager. it's earnings day for black rock so we're eager to see the
numbers but we're thrilled to have him joining us from 6:00 to 7:00 a.m. this morning. he's travelled to china and advised china an what they should be doing in terms of their markets so we'll talk to him about china. we'll talk to him about oil and get his thoughts on what the fed has been doing and talkefts. can't think of a better earn person to be talking to. larry is going to be here. he's already in the green room and he'll be on set with us in 12 minutes coming up. plus today we'll be talking to michael froman. he's the u.s. trade representative and one of the huge issues on the political front that might get resolved this year is tpp. the transpacific trade pack. that's what we'll be talking to him about this morning because it's the one area that both sides of the aisle think they'll get accomplished in an election year. a lot to watch with the markets and we'll be checking things out coming up in a little bit. >> we look forward to that.
particularly his forward hooking statements. we had the numbers hit the wire. $4.75. expectation was 480. becky thank you very much. >> thank you. >> immediate reaction to these earnings. >> and the flows. they have such a goodwin doe into the flows about how u.s. investors are reacting to that. >> so squawk box coming up at about 11 minutes time. still to come we have equity chief bob doll on the global market sell off and later today don't miss an exclusive interview with u.s. attorney preet bharara. he'll talk to andrew ross sorkin at 1:00 p.m. eastern. lots still to come here on cnbc today. first in business worldwide. it soon grew from a luxury to a necessity. so at&t built a network just for you. one that connects your entertainment, friends, family, devices and homes.
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will the u.s. follow suit? look at these results. 78% say yes. it's a clear highlight of the level of bearishness out there. follow us on twitter@cnbcwex. >> here to discuss that is bob doll. you were so optimistic for 2016. really starting on a weak note. you heard our twitter results. does that make your change your mind about the year? >> our official forecast as our predictions suggest we have a single digit return for the equity market. we didn't specify if there was a plus or minus sign in front of that number. so think we'll enter bear market territory but the only way we can avoid that is if the price of oil stops going down and the dollar stops going up because two those two things were the cause of the decline in earnings expectations all year last year
giving us a flat year rather than the up year many of us forecasted. oil price versus to grab hold alt some point otherwise the credit issues will rise to the fore. >> a bit of reaction in gold. a bit of reaction in u.s. treasuries though the vast majority of the moves, the risk off moves this year. >> been in equity markets solely. what does that tell you? >> first of all, technically the fact that the seller that's bigger than usual. foreign wealth funds. that's been publicized. in the absence of a buyer that is corporations. they're in their quite period not buying back stocks. so when you have add buz noond aabsence of a normal buyer and presence of not normal seller that aggravates things more. so maybe that's part of the reason. i think that the equity market is just worried about growth and earnings and here in the u.s.
are we going to import deflation from china? and they're the things that are ganging up and causing people to say let me sell now and ask some questions later. >> are those the things though, bob, we're trying to get the answer today, that fundamentally change your view on u.s. corporate earnings and economic growth which is after all what the u.s. stock market is supposed to be about and if no wouldn't this be a buying opportunity or wouldn't you be scouting for buying opportunities as we enter earnings season. >> i'm nibbling here. i'm not trying to be a hero because if oil prices keep going down which they have, the stock market is not going to go up and that will hurt earnings. there's no question about that. so we need corporate earnings to move higher to have enough stock market. so far not to good. i say the two ingredients that i need to see is a se sags in the fall in oil prices and rise in the dollar. >> what are you nibbling at? what are you buying, bob?
>> i'm buying some health care stocks that have been down a bunch. we have some technology stocks that we think are cheap. if a company has good unit grothment doesn't need pricing power. positive free cash flow and a company gets most of its earnings from the u.s. we think those companies in the long run will look like reasonable buys at this point. >> big falls in international equity markets of course here to date. are you buying anything there at the moment as well? >> no, here at home is the safer place. you know, part of the reason the stock market of the u.s. has lead for six years international markets is growth outside the u.s. is worse. commodity prices have fallen and that hurts most markets more than the u.s. and then the icing on the cake has been the rise in the dollar. so staying here at home has been
a safer place. that may not be a lot of comfort for people. >> great to see you early with advice on these markets. >> let's have a quick look at u.s. futures before we leave you today, pointing to a sharply lower open. >> ugly. >> the dow expect to open down 280 points. s&p by about 33. the nasdaq expected to open down by about 90 points. europe down about 1.6%. >> and oil prices below $30 per barrel. that's a negative signal. the japanese yen strengthening and gold strengthening and flight to safety. it's a repettive pattern we have seen on this desk for two weeks. we have been here and the markets sold off. >> yesterday's reprieve short lived. that's it for today's worldwide exchange. thank you very much for joining
oil plunging. it's been trading below $30. down by like 4% and the futures in the u.s. down almost 300. so a steep decline indicated after one day of respite yesterday. great for us though. not the sell off but the largest money manager and chairman and ceo and founder of black rock larry fink is with us for the entire hour and a look at where that company is investing more than $4.5 trillion. plus dow component intel under
pressure and earnings beat not enough to reassure investors about the company's pivot away from the struggling pc business and it's margins. it's friday, january 15th, and squawk box begins right now. >> live from new york where business never sleeps, this is squawk box. >> good morning, everyone. welcome to squawk box here on krr nbc. i'm becky quick with joe concernconcerand andrew. a global market sell off once again. shanghai stocks entering bear market territory. it is a decline of another 3.5% in shanghai overnight. elsewhere in asia, take a look at these