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tv   Worldwide Exchange  CNBC  February 11, 2016 5:00am-6:01am EST

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good morning, and watch out below. stocks selling off around world. >> trouble is trending. twitter user with questions. >> and a hedge fund down nearly 18% for the year. ouch. "worldwide exchange" starts now. >> good morning. welcome to "worldwide exchange". >> it's thursday, and we're playing our favorite hits from the '80s.
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do get your suggestions in to us. now fed chair janet yellen was a professor at uc barkley during that time. and she testified yesterday about the state of the economy. the topic is global markets in turmoil. let's have a look at what futures are doing. the dow expected to open nearly 300 points down. >> yellin's comments yesterday were market moving, especially for bonds. check out the spread between the ten-year and two-year. it's what everybody's talking about. yellin telling the financial services committee that it's unlikely that the fed would have to cut rates soon having just raised them. >> while there is always some risk of a recession, and i recognize and have just stated that global financial
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developments could produce a slowing in the economy, i think we want to be careful not to judgment jump to a premature conclusion about what is in store for the u.s. economy. so i don't think it's going to be necessary to cut rates. with that said, monday tarry policy, as i said, is not on a preset course. >> markets may be indicating otherwise. that spread move suggestive of a weaker economy further down the road. she will have testimony before the banking committee at 10:00 eastern. she will take questions. and the economy, we did get a lot of headlines out of yellin yesterday. and she seemed a little surprised by the moves. >> china was what she focussed on rather than say oil or
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european banks or whatever. it was more china, which is the first few weeks of the year. >> confusion about the currency. >> what a difference 24 hours or 18 hours makes. there was a selloff, not too pro nu nounsed. the hang seng is playing catch up. 3.8% decline. the nikkei is open again tomorrow. it could be a painful open on friday for the japanese stock market. also focussed on china when it opens back up on monday. there's been a lot of red since it's been closed. it could be a painful open. let's have a look at europe, in the red, meaningfully so.
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it was really when the riksbank cut rates at the swedish central bank more than expected. that was at 3:30 eastern time that accelerated. >> there's some serious questions right now about central bankers' ability to control the global economy, to fight inflation and to fight whatever may be brewing in european banking sector, in the credit markets. we are seeing some widespread fear right now. you see it in the dollar versus the japanese yen. the yen is going back to the highest level since 2014, before the bank of japan surprised in 2014 with easier policies. >> 111. >> extraordinary move. almost 2%. you see on the flip side in the rush into gold. rejection of mario draghi's policy, which he's been hinting at easing to try to weaken the euro. check out what's happening in gold. 1219. we're seeing a strong gold
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price, well above that 1200 level, going back to may 2015, suggestive of the fact that there is a blatant questioning in rejection of central bank moves. >> interesting the previous chart in terms of the currencies. 113 on the euro, so far from that often-vetted parity. it shows how much overplay there was in terms of the strong dollar argument last year in traders' minds. let's move on. the european banks are getting slammed. steve sedgwick joins us from london. we got a rebound yesterday. what happened to take the confidence out of markets once again today? >> very good to see you. good to see you as well, sarah. a lot of what you guys have been discussing is absolutely spot on. but let me just say, i think it's a bit of everything. there is no one single factor leading to the declines. you mentioned the riksbank. they've gone from negative .35.
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they have to take it on the chin, which means a net interest margin. the nims are getting tighter and tighter. it wasn't supposed to be that way in 2016. as we get more liquid itd, ity credit and demand. the other thing is the oil price also falling very aggressively. that is raising concerns as we all know in the credit markets. it's not just the energy side of things but the higher high yields. what is the exposure to these guys. you mentioned quantitative easing as well. quantitative easing was supposed to get the euro down and give us a little bit of leeway, give us better turn to trade. but now the euro and the yen and other currencies are moving in the opposite direction and the dollar is falling. what is that doing to the competitive edge of a small but growing european economy?
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it's hurting them across the board. going forward, they've got a turn on equity target which is moderately challenging, it was around 10%, and now they're saying they're not sure whether they can deliver that in 2016 as well. so questions about the future. and then you've got worries about southern europe, about npls in italy and greek banks. one more point for you. a lot of bad news has already been baked in. so i just want to counter some of that negativity. this one trades at .3. this one trades at .55 priced to book. you don't believe two-thirds of the assets. something like welsh bank. anything under one, and people are questioning the value of the book. sarah. willford, back to you. >> i just got -- >> take a breather, steve. >> i got a the e-mail from dennis garthman, which you will
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appreciate. and he says panic, pure, unadulterated panic is in the air. he's watching the euro and the swiss franc. and it is showing signs of a fever, a very elevated fever. i'm curious, steve, as what you are hearing as the big problem in the european sector sparking this. is it the oil and the fears about the global economy? >> i think the global economy fears is everything. we have strange reaction when we get a really good payroll. we're worried about high interest rate. that's good news for the compliment but the problem in europe, some of the pmi data which we've been cling onto, some of the trade data, it's not been very good in the last couple of days. the other point, sarah is liquidity. this is a really liquid sector. that's a good thing, yeah? and the problem is, whether you're an swf or someone who's
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got all kinds of margin calls, what do you sell? do you sell what you have to? or do you sell what you can? and in many cases you do the latter. you sell what you can. some of these valuations are very, very low. for a sector which is very, very different from the last time we had this crisis ecrisis. we've had stress tests. we've had over $300 billion of extra capital put into this sector between 2007 and 2014 when the ecb took over the supervisory regulation. ie, yes, there are huge problems, i mentioned those, but they have a lot more capital than they did previously. >> steve, great stuff. thanks for joining us. >> beyond the janet yellen testimony, look for jobless claims, it is thursday, 8:30:00 eastern time. and we'll get results from pe i
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pepsico and kellogg and manchester united. yellin testimony is going to be key especially as she comes in with another backdrop of global turmoil. will she change her tune? she didn't explicitly take march off the table in terms of raising interest rates. wonder if she'll sound a little more dovish. >> let's bring in dennis gaurtman. we got at that bit of a reprieve yesterday. the main selling has been the european banks. they're selling off sharply again today. what does that tell you, and is there too much selling at the moment? >> i don't think there's too much selling at all. i think there's going to be even
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eveven more selling. and i think the manner in which the yen has risen, the dollar has fallen relative to the yen, in a manner we haven't seen since the days of the tsunami. this is very serious, and i'm afraid it's going to get even worse. it doesn't have a, there's not a good ten neor to be found. >> often in this bull market, we've looked to central banks. is this team differeime differe? >> the central banks at this point i think are as confused as anybody else. i don't think they will be of great help right now. how will this end? it will end in whwhethe when it. suddenly there's an end to the selling, it has reached a
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tsunami-like ending. and it turns around. it happens when it happens. i wish i could be more succincs. the margin clerkinsclerks, when take control, they really don't care what the bids are, what the offers are, all they care about is gaining liquidity. >> thank you very much for joining us many the stocks are down. >> september 2013, that's the low where we're at. 17% for the year almost in bear market territory. >> ftse hitting a low. this is the generic drugmaker's third attempt to buy the condition. you can see share prices down about 10%. a programming note.
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don't miss the ceo on squawk box. cisco reporting a better than expected second quarter helped by demand for its security products and routers, adding $15 billion to its share buy-back program and expecting stronger revenue. cisco ceo chuck robbins will be on squawk on the street at 9:40 eastern time. amazon says the board has signed off on a new stock buyback plan. this replaces a plan they announced back in 2010. originally shares popped on the news. and setesla recording loss, but the stock did rise nearly 10%. elon musk is promising the company will become profitable this year and start generating positive cash flow.
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in march, its model three sedan. whole foods beat forecast and sales fell for the second straight quarter. they are increasing promotions and discounts as it tries to shed its high price image. expedia swings to a fourth quarter loss. the company says growing demand for travel and cost savings from its recent purchases of orbitz, travelocity. currently at 9% gains. zinn ga projects first quarter bookings that are below estimates. shares dropping 10% in afterhours trade. shares of twitter under pressure
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this. >> mo. earnings beat the streak. but the company said it saw no growth in the key metric average monthly active users. and the currency revenue forecast is light. as you can see, afterhours falling to the tune of 9%, adding to the woes of those last year's fall of 70%. james, good morning to you. we thought with management changes, we thought they might start to be getting things in line a little bit but no confidence being taken by the market after yesterday. >> well, okay. let's step back and see what's actually happening here we can't be blind to the fact that user groups stalled. we can't be blind to the fact that the guidance was we low the streak. the first one on the financial side. we're seeing ariireas of confidence. it was up 16% sequentially.
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measurement pools are helping advertisers get more comfortable with keeping ad budgets there. at the same time, you have opening up monetization. the financial aspect, we see potential for estimates begin to trough rather than the lower bars we've seen the past couple quarters. the other side, if you can get to the point where the confidence in the estimate returns, i think you've bought some time in order to, you know, start to get new product iterations, to get user growth going again. we're hearing clarity on what twitter is, and jack dorsey talked about it live. >> you might be getting confidence, but investors are not. we're looking at potentially another 10% lower in this stock. don't they have to turn around the user growth to get investors on board? >> absolutely. the take away is now is not the
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time to bail on it. for the first time we believe that you are not going to see the more step function estimate cuts. what we needed to see was estimates recalibrate to an int point where we could see positive surprises. if that's the case and we're not going to be cutting estimating then we've bought time on the user front. >> are you confident in the team. we've heard about board members. so is someone really, a team really in control of where they're going, do you feel? >> it's not the ideal situation to have a ceo split between that and square, the management exodus. so clearly there's an issue at the top. but the fact of the matter is dorsey does plan to expand and make hiring a focus this year. when you look at the user growth, yes, it did come down. but when you look at the daily active users, that's stable.
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it was flat, quarter of a quarter. >> to be clear, you're bullish, at least you're hanging on. >> i'm continuing to give it the benefit of the doubt. i want it to be clear that this is not the time to bail on it. you see the numbers. i get it. i'm not blind to it. >> of the internet names you cover, what's your top pick? >> facebook. >> which added 40 million users as we just showed during the same that twitter lost 2 million. >> facebook, you can't combat against them. they're doing absolutely everything right. when you think about the opportunity you have on mobile and the new products like instagram aren't even in the numbers yet. >> so price targets, facebook is. >> facebook is 120. twitter was 35. >> great stuff, james, thanks very much for joining us.
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on a programming note, don't miss twitter coo adam bain live at 10:15 eastern. have to hope good questions will be asked. >> oh, yes, they l the team on "squawk on the street" asks good questions. european banks are getting clobbered. check out stock socgen. we'll hear from the ceo on the market turmoil. >> and our twitter question of the day, what are you most concerned about? right now. yellin? european banks? a recession? or oil. those are your options to pick from this morning. get in touch with us. we'll be back in a couple of minutes. [ male announcer ] fedex® has solutions to enable global commerce that can help your company grow steadily and quickly. great job. (mandarin) ♪
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cut it out. >>see you tomorrow. ♪
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good morning to you. i'm afraid i don't have good news to accompany the good morning. sweden, down 2.8% after the riksbank cut into negative territory. that was at 3:30 eastern time. that is when the selling accelerated. we were already down after socgen results reignited european banks into the red, and that move got to compounded when we got that negative interest rate. and as you can see, france down. germany down 3%.
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this doesn't bode well for u.s. futures. we're pointing to an almost 300 point decline for the dow open. moves to the down side for all of the major indeces in the u.s. european banks have now lost about a quarter of their market value since the start of the year. shares down sharply this morning. the bank set aside money for legal costs. good morning nancy. >> good morning. socgen's results only adding to the nervousness around the european banking sector, and a key part as you just touched on is the litigation provision which hits at the heart of concerns that the european banks have not gone far enough to reduce costs and reduce exposure to regulatory risk. and this is eight years on from
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the financial crisis. the other top concern is the question of profitability and whether or not socgen will have to reduce its target profit. they simply stated that they want to achieve a 10% return on equity, and they're sticking to that for the immediate term, but they would not go beyond that. they would not confirm it for the full year of 2016. i had a chance to speak to the ceo of socgen and asked him how concern he was that the market turbulence could take a turn for the worse. >> all in all, i think globally speaking, systematically, when you look at the system, i think it's much morre robust and i think there's too much nervousness compared to reality. >> so the ceo of socgen the discrediting fears. this is not 2008, this does not take away fears that the new normal for banks is a drag on
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profitability and chief risks, the low interest rate that is here for now or longer. >> thank you strch for that. the results were disappointing because costs eating profitability. so it is worth bearing out of mind that socgen's fallen very sharply, 14%, selling across all the european banks. it's not really the kind of credit fears that have worried investors for the last two weeks. so it's interesting to see how much. >> all the banks have to come out and say this is not 2008. the fear is overdone. the market's not listening right now. >> for continuing coverage of this market selloff. everything is moving right now, including oil. stay tuned on cnbc first in business, worldwide. friends coming over?
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i'm vern, the orange money retirement rabbit from voya. vern from voya? yep, vern from voya. why are you orange? that's a little weird. really? that's the weird part in this scenario? look, orange money represents the money you put away for retirement. save a little here and there, and over time, your money could multiply. see? ah, ok. so, why are you orange? funny. see how voya can help you get organized at voya.com. good morning. if you're just waking up, let's get you up to speed on the overnight market action. here we go again. it looks like we're in for another sharp selloff on wall street. the s&p futures down 84 after a pathetic attempt at a rally yesterday which ended with the dow and s&p ending lower. we're looking at a potential
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fifth day of losses for u.s. stocks at least on the s&p and the dow. check out the dollar. you are seeing a lot of fear and concern manifesting in the currencies right now. the euro is down. check out this move, 1.7%. it's not every day you see these kinds of moves. a stronger japanese yen, moving against what the bank of japan did, cutting interest rates into negative territory. sweden doing it overnight offered a lot of concerns over what banks are doing and whether it's working. >> apart from against the pound, come on sterling, you're embarrassing me as i move over here. other headlines this morning, a rough start to 2016 for bill ackman. his portfolio dropping nearly 19% so far. akman's firm ended 2015 with its
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largest ever, posting a 40% gain in 2014. tough, tough performance for them this year. still to come, worldwide markets under pressure. and why? we want to hear from you. what are you most concerned about now? yellen? european banks? oil? i was surprised by what's leading. we'll give you results and lots of analysis. cathy's gotten used to the smell of lingering garbage... ...in her kitchen yup, she's gone noseblind.
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breaking news. wall street waking up to a global market selloff. the factors almost too many to list. >> you're watching "worldwide exchange", here on cnbc. ♪ oh, i want to dance with somebody ♪ ♪ i want to feel the heat with somebody ♪ >> almost too upbeat for what's happening in the markets. >> ware're trying to give you a little cheer to what's going on with a throwback thursday. >> hold onto your hats. markets are selling off. i'm willford frost. >> we're expecting a close to 300-point decline for the dow today. 278 points to be precise limit the nasdaq by 77. >> if you look to europe, we're
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going back to lows we haven't seen since september of 2013. sharp moves of 2.5% in germany, more than 3% in france where socgen has been the eye of the storm. the french bank down 14% after releasing results. wti asat 26. as we've been discussing all morning, they've lost a quarter of their value since just the beginning of this year. joining us on the cnbc line, dominick elliot. this is not 2008. what is the market signaling here with this relentless pummeling of these banks? >> well, i think this selloff in european bank stocks was first triggered when it became clear that fourth quarter earnings were going to be a shocker. the results this morning confirm that trend. the real reason i think shares have fallen so far so fast is that investors are worried about
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central banks' ability to do anything. we've had an economic slow down in china and now rate riders are on ice. so it's become increasingly harder for banks to make much money. they do that by offering depositors a low rate that they can make. but when the rates are low, it's hard to make much difference. >> deutsch bank has shed over 40% of its share price year-to-date. are investors suggesting it's more than just a profitability issue? >> i think it started as a profitability issue. and now it's become more than that. it's become a self-fulfilling prophecy. there's this worry about the ability of banks to generate capital. and there's a worry now that, you know, beyond that, they won't be able to trade with each other perhaps, if things get a lot worse. if you look at deutsch's balance
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sheet, it has about 1.5 trillion euros of assets. and a third of that is taken indeed. it's hard to know what it is. that's one reason investors are so concerned. >> you brought up the question about central bank credibility, which is a dangerous idea, that they don't have the power to control, whether it's the banking system or inflation. what triggered this? was it the move to negative rates around the world? >> i think the bank of japan's move to negative rates is certainly one of those worries. it doesn't look like there's any inflation anywhere. certainly, with china slowing down so appreciatably, and that's the problem. where are you going to see the inflation that's required to get those rates back up again to bail the banks out. >> do you think any of them are likely to have to raise capital anytime soon? >> it looks like something they should do. you've got deutsch bank, and then the french banks have been
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low on that measure for a while. there are a lot of potential contenders. the trading is such discounted at book value, most investors, you know, the last thing they want to do is give them yet more money, because they can't see where that return is going to come from. >> dominick, thank you for joining us. deutsch bank, .3 times book. if they had to raise capital, it would be very painful indeed. >> i want to show you what'she markets. let's show you currencies, where you're seeing acute fear in the buying of the japanese yen, selling the u.s. dollar, which has not been good for stocks. you might think it might provide relief to these beaten down nationals, it is not helping. the euro plunging below 1.13. a stronger yen, with that, you're seeing this move into
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gold. a lot of buying into gold. it's been relentless all yearlong. now it's at a critical level, above $1200. credibility is questioned. buy gold. oil getting sharply hit hard this morning. as we've been seeing all yearlong, all week long. wti crude moving to 26.80. down 2.4%. brent crude, saw benchmark trading above $30 a barrel. >> with the yen move, i imagine it will be a painful opening tomorrow. tesla had a loss, but shares are trading higher. phil lebow is here to tell us why. >> we saw the stock rocket higher after hours after they posted worse than expected results for the fourth quarter.
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overall they lost 87 cents per share. the estimate on the street was for a slight profit of 10 centingcents a share. the stock is going to be moving higher likely today. gross margins, 25% to 30%, depending on the model. the model s will be closer to 30%. model x closer to 25%. deliveries of 16,000 vehicles sets up the discussion about what tesla is expecting to deliver for the entire year. and for the entire year, tesla says its deliveries will be in the range of 80,000 to 90,000 vehicles. that is higher than many people were expecting. most people were expecting 80,000, maybe lower than 80,000. elon musk talking about what he sees. and coming out of this period of instability. >> i feel very good about things right now. i mean the last several months
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have been quite excruciating, i'd say. i mean many late nights and weekends. but i think we're through the worst of it at this point. >> tesla investors are certainly hoping so. and that's one reason why the stock moved higher. the mass market that tesla is building next, the third vehicle in its portfolio, that is scheduled to be unveiled or march 31st. and tesla says production begins next year, deliveries by the end of 2017. >> a bright spot in an otherwise down beat and dull market. >> let's move on and talk about cisco. popping after the firm showed surprising strength in second quarter earnings. landon joins us. >> higher demand for cisco products as well as a buyback program helped bolster cisco's
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earnings. 57 correents per share, beating expectations. investors are encouraged by routing and security. however, switching data business centers saw decline, analysts say the fact that cisco can eke out growth in this climate shows staying power. >> it was after adjusting out after a divestiture that they had made. so the year-over-year growth, unless you make that adjustment, looks to be considerably better. i think that was part of it. there were also tax benefits they had on the earnings front. >> the earnings were in line. but its rounding outlook was upbeat. it was popping in afterhours trading. >> a lot of people encouraged by that cash buyback.
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up next, today's must-read op eds and the current market chaos. later we'll be talking with steven england, one not to miss. you're watching cnbc.
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good morning to you. let's get to today's must reads. and the wall street journal this morning, what's going on in
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markets. five theories to explain the chaos. devaluation. the global slow down and oil, all five explained with very good charts. well worth a look. the fifth, which is the one i want to bring up, exposure to suffering wealth funds. some of those stocks which have high exposure, particularly the nasdaq, interestingly, 18% ownership, perhaps a reason why we've seen such sharp selling, because they just have to sell what's liquid as opposed to perhaps the things they should be selling. >> it's something we've heard all along through the selloff. we asked on twitter what was concerning you most today. a majority of people actually responding, thanks for the responses, saying recession, but we also put out there, yellen, testimony yesterday, testimony today. european banks, which are bearing the brunt of the
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selling, oil, which a lot of people are voting for as well. we didn't get to the broader question of central banks and their efficacy. all four of these answers. and we're getting a lot of commentary as well. >> we talk about that when the bank of japan went to negative rates. that started spooking people. today the european banks with down at the open but accelerated their selling at 3:30 eastern time when the riksbank cut further into negative territory, minus .5% now. and they were already in negative territory and they went further. and that accentuated the selling. can central banks really achieve -- >> even janet yellen was asked yesterday about negative rates and even she talked about how they were considering it in 2010. they don't even know if it's legal, which is an odd comment, but just the words coming out of her mouth. it will be interesting to see what she says to the senate
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banking committee. "squawk box" is getting ready for a very busy show we've been talking about the banks. what have you been hearing? >> i woke up to this headline, similar to you guys in the financial times. europe bank shares stage rebound. and what a ditch a few hours can make. it's something you guys have been talking about all morning. the steep selling in the financial sector. the steep continued decline in the price of oil. the surprise legal charge from sew sigh day jen ral. and the u.s. economy. we're going to be watching how the financials open this morning and looking ahead to what chair janet yellen is going to say in front of the senate banking committee. we have senator pat toomey who's going to join us to talk about
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what he plans to ask the fed chair. it has to do with the banks. that's only spoiler i'm going to give you. we also have heather bresh, she's going to join us at about 7:00 eastern time. and the ceo of hasbro. and the rumored deals with mattel. it's going to be a busy show. >> thanks for the preview coming up in 12 minutes time. >> when we come back on "worldwide exchange" steven englander. he says the european banks may be in trouble but disappointment over u.s. rates is even deeper. this is a guy who's lived on the trading desk for decades. you're watching "worldwide exchange". first in business worldwide.
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welcome back. good morning to you. but i'm afraid some red across the screen for equity markets. european stocks down at the moment 2% to 3%.
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socgen reporting disappointing numbers and has fallen about 12% to 13%. we were down as much as 300 points for the dow and now at 253 pointing. >> it is ugly. janet yellen telling congress that it could raise the prospect of a delay in interest rate hike, though she didn't say march was off the table. joining us from new york to talk about it, steven englander. it's good to see you. how do you interpret these moves when the japanese yen, dollar/yen goes to 111. it started the year at 120. >> it's being exacerbated by liquidity positions in the market. it's one of these trades that's become a one-way bet. and even if you think that the boj's going to be more
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aggressive and respond to this, at this stage, nobody's willing to put their hand underneath it. so it's kind of becoming a one-way market. >> has the bank of japan got any ammunition left? it's in negative interest rates and the yen is rallying. >> it's not rallying because of negative rates. it's rallying because it's a safe haven, and japanese, if they don't take their money abroad, the yen tends to rally. short term, the issue is what's become the conventional, non-conventional weapons, negative interest rates and quantitative easing, perception is that they're infective, but i think it's too early to say all policy pools are infective, but i think the central banks are going to need more time to address the issues that markets are concerned about right now. >> you just said the world is falling apart. so does janet yellen's testimony seem to have missed the mark? was she wrong to not talk a
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little more dovishly? she warned of the risk, but investors wanted her to go further. >> i think investors were looking for two things from janet yellen. one, a little bit more confidence that u.s. has been through these episodes of market turmoil before, and the economy's been relatively stable in terms of its growth path. and the second part, some reassurance that there was something on the table besides negative rates or more qe in that the fed is confident it can address the issue should they arise. and neither of those really came through. so i think, i interprited it as a bit of a downer for markets. >> steven, we've seen european banks get pummeled over the last two or three weeks, that's happening again today, does that worry you that the european economy is seriously under threat and we're going into a deep, deep recession? the share prices of the banks would suggest that's a possibility. >> it's a huge problem for the
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ecb. and they could tell you that the european economy is going into recession. whether you're in the u.s. or in europe, the economic data are mediocre, but they're not quite as terrible as the financial markets data, but i think, as we saw in the response to the riksbank cutting, the market's afraid there's going to be another hit the banks profit from going deeper into negative rates. that's not the same as red flag on recession, even though there are recession concerns out there. >> steven, is the ecb still a powerful enough central bank to act as that lender of last resorts for the joneurozone its? is it a threat today or not? >> you know, it's a threat down the road. i think that the issues with respect to how to deal with immigration, how to deal with the borders issues, the political issues, i think are enormous. and i think that ecb feels and it's come through in some of
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draghi's speeches that getting the strongest growth possible is the best way of avoiding these tensions, and i think that's what they're going to go for. they have one more constraint now which is they have to avoid tanking the banks which are clearly vulnerable. every time we've said central banks have their back against the wall, they've painted themselves into a corner, they've surprised us and come up with something that had a chance of working, that's more, you know, it's less kind of negative than the market was thinking. >> that's a good point, and an optimistic one. steven, finally, as we set you up for the wall street trading day and our audience. the correlations have been fascinating. which asset class is leading the charge right now? >> i think, a, i love that facts, but you have to look at equities and credits and the fear that's being built into those markets, and that kind of spills over into what we're seeing in the foreign exchange markets. i think it's definitely that
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sentiment on earnings. the fact that u.s. rates over the medium term, with the market is pricing in, is not just like a two-six-month slump. but when you take a look at three to five years out, this period of prolonged weakness, i think that's what the deep fear is in the market. >> thank you for joining us this morning from citi group from our studios at 30 rock. >> let's have a look at what we're watching today for me, i'm looking at the european bank stocks. it is today falling sharply, once again, 2.86%. socgen, the leading faller. >> whatever your temperature, whatever your barometer. people are looking to gold. for that, gold prices are surging. they're up $30 just this morning. 1224. we're back to levels since last may, and that is raising a lot
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of questions about that central bank. >> the results of our twitter question, this is what you feel is causing the selloff at the moment. we'll see you tomorrow. but at t. rowe price, we can help guide your retirement savings. so wherever your retirement journey takes you, we can help you reach your goals. call us or your advisor t. rowe price. invest with confidence. you gein your car. odors you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy.
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good morning and look out below. we're going to get you up to speed straight ahead. investors not feeling confident that jack dorsey's timeline tweets will be enough to attract any new tweeters. tesla and cisco bucking the train wreck trend. it's thursday, february 11, and "squawk box" begins right now. ♪ this is our last dance ♪ this is our last dance
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live from new york where business never sleeps, this is "squawk box." ♪ under pressure >> good morning and welcome to "squawk box". joe and becky are off today. traders this morning are waking up to a global market selloff. u.s. equity futures at this hour have recovered, but that's not saying much. the dow by 251 points. a selloff has been the mark of the new year. it's sparked by comments by janet yellen yesterday acknowledging a slow down in the global economy, but she said it's unlikely the fed would cut rates having just raised them. even so, potentially rates was enough to spook the markets in the u.s. and in ee.

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