tv Worldwide Exchange CNBC January 18, 2017 5:00am-6:01am EST
good morning. market alert. global investors try to make sense of donald trump's greenback comments. is strong dollar policy a thing of the past? earnings central. goldman sachs and citigroup set to roll out quarterly results today. and the trump transition. we're talking trade as the president-elect picks for commerce secretary heads to capitol hill. it's january 18, 2017, "worldwide exchange" begins right now. ♪
>> good morning. welcome to "worldwide exchange" on cnbc from a chilly davos, switzerland, i'm sara eisen. >> i'm wilfred frost. good morning to you from me. we're coming to you from the world economic forum in davos, switzerland. the annual gathering of global political leaders, ceos and policymakers. yes, it is chilly, but a fantastic setting. >> a fantastic setting and a lot of news. our guests this morning include jim coulter, he will join us in a few moments. at 5:15, princeton university president christopher eisgruber will be here to join us. at 5:30, stephen pagliuca stops
by. and a wide ranging conversation on the economy with nourie nouriel roubini. another busy morning ahead on "worldwide exchange." a lot of headlines to discuss. here's the cover of the china daily. president xi here at the world economic forum getting a lot of attention, not just in davos, switzerland, around the world. here is his home, boost open economies, a defender of globalism. this is the front and center debate. >> huge is. huge coverage, huge headlines coming from him. big moves in the pound yesterday. we will be talking about that as well. >> best move for the pound since 1998. how do you like that for a back drop for a world economic forum? >> bank share prices off sharply yesterday. we'll talk about that as well. two more big banks reporting
today. let's check in on the global markets first of all and look at what they're doing following a decline yesterday of about 0.3% for the dow and the s&p. the nasdaq down about 0.6%. we are bouncing back this morning. the dow called higher by 13 points. overall, the size of the selloff yesterday, 0.3% for the dow hid the severity in the move in bank share prices. bank of america, morgan stanley down 4%. sara and i will talk more about that in a moment. >> goldman and jpmorgan led the dow lower. >> down over 4%. ten-year treasury note moving yesterday. hit a low of 2.3%. definitely risk off sentiment. trump ral trump rally taking. the dollar sparked some profit taking in various trump bull
trades after donald trump suggested that the strong dollar was too much. and that it needed to weaken. we saw the dollar weaken by the tune of 0.8% for the fourth negative session in a road. the pound the big gainer. we'll talk about that in a bit. across the board the dollar is weaker. it is rebounding today, albeit less than declines yesterday. about 0.2% against the euro. >> the only thing i will say about trump comment on the strong dollar being hurtful for american companies is all of his policies so far are strong dollar policies. fiscal stimulus, corporate tax reform boosting profits, a federal reserve raising interest rates on an economy. he's going to have to keep talking if he wants it to go lower. >> it's a bit rich, i'd say, comically rich given that he criticizes china for managing
its currency in certain ways, and now is talking about the dollar. >> when is the last time a president weighed in on the value of a currency? >> so explicitly. >> it's a different playbook. ceos are starting to learn. they are putting out press releases every time they add u.s. jobs. getting called out on twitter. >> that was a big factor for the banks yesterday. does that mean he wants less rate hikes, he'll change the fed makeup? that's a factor, what the rate curve is doing for bank share prices. big declines yesterday. >> we have economic data in asia to tell you about. new home numbers showed prices in china surged in 2016 at the fast et pace est pace in five y. december home prices were at 12.4%. pulling back from the previous month. there are the november and december numbers. november better. december moderate.
there is the asia picture from overnight. hong kong in particular on fire up 1.1%. it's at a multi month high. shanghai comp up fractionally. the nikkei rebounded from earlier that strong yen trade, which hurts the exporters, looking to change, where the dollar is back firmer against the yen. december eurozone cpi out rising a half percent from the previous month. 1.1% from last year. the figures pretty much in line with expectations there. european stocks are open and they are trading. let's show you the picture. german dax is flat which is an improvement from yesterday. france, ftse 100 in the uk, italy, little changed. i would say watching these currency moves and watching commodity trades. >> yesterday european markets were in the red, only slightly, apart from the ftse 100 down a percent and a half because of the rebound in the pound. oil prices slight gains yesterday in the face of the
softer dollar. slight gains again today. up today by about -- we are softer. we are down by 1.5%. >> it was up earlier. i can confirm that. >> we don't have live prices and computers here in davos. we have a beautiful setting. gold prices, which have been on an eight-week high. gained yesterday, today pretty much flat. >> highest close of the year so far in 2017 yesterday for gold. we are now just two days away from the president-elect's inauguration. confirmation hearings are continuing today in washington for many cabinet picks. among the names to watch, scott pruitt, trump's choice to run the epa. governor nikki haley for u.s. ambassador to the united nations. and perhaps most relevant in our world and certainly in our conversations today with titans of private equity, the commerce secreta secreta secretary designee wilbur ross.
he will say he's not anti-trade but the billionaire investor will argue that the united states should not allow for malicious practices or unfair subsidies from foreign trading partners. he will have a fair trade argument instead of saying he's anti trade. on trump's pick for commerce, ross has promised to sell his stake in his main private equity firm, divest all sorts of other assets and revine from corporate boards. he will keep interests in lending and shipping. >> two other private equity giants joining us in the next half hour. we will discuss wilbur ross's appointment with them. financials in focus today. goldman sachs and citigroup set to post results before the bell. goldman premarket is up sh, mor
stanley reported up pre-market. the q4 numbers were a strong beat, particularly in fixed income. as we knew coming into the earnings season, it's all about the guidance on the year ahead. jpmorgan and bank of america on friday were optimistic. they were saying rate increases have not even come into the numbers yet. the thing on the morgan stanley call that hurt prices yesterday was that they would not be drawn on rate sensitivity. they would not give specific numbers, and that got some worrying that the interest rate hike would not be as beneficial for banks as they thought. >> it probably did not help the banking picture the fact that yields were lower across the board and the dollar, reversal of that trump trade, they have been huge beneficiaries of that. >> we will continue to watch the bank stocks this morning. indeed when those numbers come out, a few hours time. on a programming note, the key thing, it's the outlook, it's
what the ceos are saying. >> they're here. >> key insight on that. live interviews with jpmorgan margen chairman, jamie dimon and lloyd blankfein, that's on squawk on the street later this morning. james gorman joins us tomorrow. joining us now is jim coulter of tpg. good morning. thanks for joining us. >> good morning. pleasure, although cold to be here. >> we'll be warmed by the context of this conversation. interest rates have gone up. is that a good thing for the economy or are we starting to see it's not? >> it's a question of interest rates are just going up or followed by growth. growth is good for the economy. right now we're in a period of uncertainty. i think there's more speculation than knowledge in the markets today. >> so you don't share some of the enthusiasm and optimism out there in the confidence surveys,
whether it's business, home briders, small business, and investors with the stock market at near record highs. >> i came into the year reminded of one of my favorite quotes, which is f. scott fitzgerald, he says the test of a first rate intelligence is keeping two opposing ideas in your mind and still function. the two opposing ideas is there is an enormous amount of uncertainty. anyone who tells you how the policies will be rolled out should be questioned. away from that there are some interesting things happening in the economy that give me optimism. so our goal is to not be too certain about things that one should be uncertain about. but to be more optimistic about the areas that are unlikely to be touched by some of these policies. how do you see access for the capital at the moment, with rates going up, accessing mo
leverage, does it make it harder? >> there is a key problem in the economy around the world today, which is pensions. there's some interesting statistics that while oecd national debt is $44 trillion, pension debt is almost $78 trillion. the reason pension debt has gone up, interest rates have gone down, that liabablablability ha more expensive. >> you have this active/passive thing going on where all the money keeps flowing to passive funds out of active. are alternatives an exception? >> the world is split in two directions. in public markets there's a massive move towards passive. on the other side, active
investing is going totally to alternatives. so the alternative marketplace is growing robustly. returns have been good. as a result more capital is flowing into alternatives at the same time that perhaps the hunting ground has gotten leaner. let's talk about a couple of your famous investments. you were an early investor in huber. got huge scale now, the market leader, yet still not turning a profit. are you pleased with its progress or is it still under threat from others like lyft showing up. >> i think from here it's still an interesting play. we're examining not only what it is as a transportation company but beyond. i think that's going to be the story. as these marketplaces grow, whether it's uber, airbnb, are we understanding the stretch of what they can be. i think people underestimated what amazon could be. the question is will that same underareas.
>> you're a big investor in airbnb, big disruptors, what do you think the trump presidency will be like for enpra entrepreneurs and disruptors. will be harder for the likes of uber in the next presidency? >> i'm optimistic about the amount of the disruption in the city. we focus on trying to sort out disruptions. one area we've been active in recently is content. with the existence of over-the-top tv, we're in the gelden age of tv shows. people are watching a little less movies and more tv. that's divorced from what might happen in a trade war. >> who is your bet there? >> our bet there, largest bet is for the controlled shareholder in caa, the agency. as content markets become more
complex, the agents play a larger role. >> finally, quickly, on wilbur ross, one of your own as commerce secretary. is that good for you, your industry? business in general? >> i don't think it will affect our industry. we have a lot of respect for wilbur as an investor, and he's following penny pritzker, an investor herself. we have high hopes for wilbur. >> steve schwartzman chair of the policy forum, is that an advantage or a disadvantage that he has access to trump more than you do? >> i don't think his access to trump will affect our returns. having good counselors around the administration will be helpful. >> great stuff. thank you very much for joining us. jim coulter of tpg. >> good to see you. when we come back, we sit down with christopher eisgruber, the president of princeton university. "worldwide exchange" will be right back. >> we are here in snowy davos forum for the world economic
forum. >> much more from "worldwide exchange" after the break. info. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley. may not always be clear. 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. i am benedict arnold, the infamous traitor. and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the...
she faced scathing criticism from teachers unions who say she's seeking to destroy public education. she told lawmakers she would be a strong supporter of public schools but a one size fits all model of learning does not all work. >> i share president-elect trump's view that it's time to shift the debate from what the system thinks is best for kids to what moms and dads wanted, expect and deserve. parents no longer believe a one size fits all model of learning fits the need of every child. they know other options exist, whether magnet, virtual, charter, home, faith-based or any other combination. >> joining us now in davos is kristens christopher eisgruber, president of princeton university. i know you're not up to speed on exactly what she said, but
broadly speaking what do you want to see from her if she gets confirmed and from a future president trump? >> it's important that we support excellence in higher education and equity in higher education. one thing that matters as our society becomes effected more and more by technology is students get an education that prepares them for careers that vary over a lifetime. that means investment at the elementary and secondary school levels and making sure students get four-year college degrees when they can. >> one thing at davos is income inequality this year. princeton is quite an elite school. is there more that needs to be done to give people that wouldn't typically be able to go to a school like princeton access to those types of schools? is it from that end of the approach or boosting the quality of other universities? >> it's got to be both. we've been trying to make sure we're affordable to every student and reaching out to students who may not know about our affordability. so we are ranked as one of the
most affordable places to get a college education. >> how much does it cost? >> the sticker price is in the $60,000 area. but our financial aid is so good that 60% of our students, 60% are on financial aid and the average scholarship is equal to the tuition price, so 80% graduate can no debt, and the other 40% graduate with $5,000 in debt before they leave. for most students going to princeton is more affordable than going to a state college because of our endowment and alumni. >> do you see this as a ticking time bomb? >> no, a lot of the debt cories are focused on the wrong part of the student debt spectrum. education is an investment. you look at investments on the basis of return. if you get a four-year college degree, you can play back your
student loep loans. all the research shows that the problem occurs if students are taking out loans and then not finishing degrees. that's where we need to focus. >> switching focus a bit. you're also a constitutional scholar. what do you make of the fact this year we had an election where one candidate won the popular vote, the other won the electoral college vote. is it time to reform the electoral college. >> it's a great question. there was a time 15 years ago or more than that, 20 years ago, when constitutional scholars would say if we ever got to a situation where the electoral vote went one way and the popular vote the other way, we'll have a constitutional crisis. we've seen it happen multiple pims. it's happened again recently. the prospects for reform are difficult, but it's a serious concern that intersects with other worries about the legitimacy of our system. >> what do you make of the fact that a number of lawmakers are planning on boycotting the
inauguration this week? >> i regret that. whether one agrees or disagrees with the president-elect, we have to come together as the current president said, we need for a government where discussion takes place across partisan lines. i understand and respect the importance of disagreement, but we need to have the conversation. >> how do you see the shape of the supreme court changing over a trump administration? how many picks will he get? >> that's a great question. i think we'll see with the first nomination on the seat that's been empty for far too long, a nominee ending the views of scalia, dividing the court with anthony kennedy in the middle. i suspect we'll see the other justices watching that and frankly what happens now is justices do time their
retirements. >> have a few coming up. >> we don't know. justices on the supreme court seem to enjoy their jobs and stay for a long time. >> what do you make about the structure that trump is building around him in terms of how he makes his decisions? do you worry it's too centralized and he won't listen to advice from various appointees? >> i don't know enough to answer that question. looks like there's a variety of people withover l joefoverlappi jurisdictions. we'll have to see. >> does he need more academics around him? >> i don't know. i think it's important that academics participate in the government and there's things at universities that we do that matter. >> covered a lot of ground there. thank you. >> thank you. >> christopher eisgruber president of princeton university in davos. what pfizer's ceo says donald trump doesn't understand about the pharma industry.
prospects for deal making during a trump administration. we'll be right back live from davos on "worldwide exchange." () ♪ nice work brother dominic. now we just need 500 more... translated into 35 languages, personalized oh and shared across the 7 continents. (other languages spoken) look abbot, i got it. it's a miracle. ♪
switzerland. it's wednesday january 18, 2017, you're watching "worldwide exchange" on cnbc. ♪ good morning. welcome to "worldwide exchange" on cnbc. i'm sara eisen. >> i'm wilfred frost. we're coming to you from the world economic forum in davos. >> a great lineup of guests joining us today. up next, stephen pagliuca, then nouriel roubini will be here. at the top of the hour, the "squawk box" team joins the fun with former treasury secretary larry summers. a busy morning still ahead. a lot to talk about including front page headlines coming out of davos with president xi on the cover of the china daily this morning. boost open economies, just one of the debates. brexit and trump front and center, the chinese president in davos for the first time advocating open markets and free
trade. >> on the brexit front, theresa may ais traveling here to davos today. the first interview with the chancellor will be here on cnbc tomorrow. >> after that 3% move in the pound yesterday. >> last time i spoke to him we had the flash crash in the pound. let's get to market action this morning. declines yesterday around 0.3% for the dow. expected to bounce back a bit higher today. the dow just 11 points higher. those declines yesterday of 0.3% or so, they hide the size of the declines we saw in the banking sector. the sector as a hole off more than 2%, morgan stanley and bank of america were down 4%. sharp moves yesterday. we saw profit taking in various trump gain trades, such as the dollar and the banks a clear
beneficiary of the trump rally. citigroup and goldman sachs earnings to come later this morning. european trade, yesterday slightly negative with the ftse 100 sharply negative. today mixed picture. nothing too significant. asian trade yesterday, the nikkei soft as the yen rallied today. seeing a bit of gains given that the yen itself is soft today. but broadly speaking gains across asian trade. >> as for the broader market, the big selloff in the dollar yesterday. it's back up a bit this morning after that sharp move, especially against the yen. up 0.6%. that was good news for the japanese stock market which rose overnight. as for pound, giving back a bit of that 3% move higher. the biggest move for the pound since back in the late '90s. it is giving back almost a full percent. the euro also weaker against the dollar, 1.0683.
as for oil prices, they are declining. reversing an earlier trend that we saw this morning. wti slipping below $52 a barrel. 51.64. down 1.6%. brent down 1.5%. 54.62. ten-year treasury note yield, let's show you where the yield sits this morning. 2.35. a bunch of economic data today including industrial production, the fed's beige book, cpi numbers. >> heavy day. gold finished yesterday at the highest level of 2017. a big beneficiary of that dollar selloff now just about flat. let's talk about the global economy, markets and the potential for investments under the new trump administration. with us now is stephen pagliuci of bane capital and co-owner of the celtics. good morning. >> great to be here. >> not just a renowned investor
but a personal friend of donald trump? a golfing buddy? . i golfed with him. socially, i can't tell you i know him well, but i've golfed with him. >> you had something to do with the fact that romney came back into the picture and was under strong consideration for secretary of state. >> i worked with mitt romney for many years, i think he's an extraordinary leader and great person. i thought he would be great in that position. >> let's talk about what to expect from a trump administration. particularly the moves we've already seen. particularly the rise in rates. is that a good thing for the economy or a concern also? >> quantitative easing of this magnitude is something we have never seen before. no matter what administration is in there, the issue is how do you back out of that and get into more normalized interest rates. >> in terms of the investment environment, is it a positive
thing, the talk of deregulation that we're seeing or is that on a relative basis a bad thing for investment firms? it will benefit the banks as opposed to people like yourselves? >> i think it's selective. depends on what type of deregulation. making it easy for businesses to start, gain share, create businesses is positive. the beauty of private equity, we can take a long-term approach. bane capital, which stemmed from consulting analytics in the '80s is a business that's prided itself on building and growing great businesses that can withstand these cycles. we've been through republicans, democrats, all sorts of administrations, sticking to that knitting served us well. >> some people say the animal spirits are getting woken up here in this trump administration. which is set to be friendly towards business, has a lot to of businessmakers in the role. rex tillerson, not your first choice but still coming from the ceo role. do you think that ushers in a
new wave of dealmaking? >> if you step back, it's a republican dominated congress. people looked at those positions as pro business positions. people are excited about that. whenever a new administration comes in with new ideas, it awakens the markets. i think you have to take a long-term perspective. for the short-term with all administrations, there's optimism and then reality sets in. again, at bane capital we try to be micro economists and say how do we look at that globally and make it better. >> how do you exit is also a part of the story. whether it's an ipo, i see you're wearing canada goose. we anticipate that. what do we expect to see there? >> i've always been the warmest person in davos and appreciate canada goose greatly. fantastic company. >> you're the model. this is the new line. >> if it makes me look good, it can do wonders for anybody. in terms of exits, the beauty
private equity has, we can pick and choose when we exit a company. funds are 10, 12 years long. we are not hostage to quarter earnings. that's a huge benefit where we can invest for the long-term. >> where are there opportunities on a sectoral basis? >> plenty of opportunities. you have to be selective because prices are trending towards the high side. we try to size our funds to reflected that. there's disruption in technology, growth in payments technologies, we've done four, five deals of payments technologies. we organized bane capital to take advantage of sectoral expertise, healthcare, technology, industrial, financial services, consumer retail. >> you're on the board of hospital care of america. are republicans being too hasty in terms of the speed with which they wanted to roll back obamacare? >> i'm not on the board now.
i was on the board for several years. we've taken it public. we have to take a wait and see attitude. there's 20 million covered who have never been covered before. they have stated they don't want people to be caught in the transition. >> what do you expect in terms of tax reform, carried interest. donald trump when after hillary clinton for not doing enough as a senator about this. >> i think it's a bigger business than just about taxes. we set out 30 years ago to grow rate businesses and good things will happen. nobody went into private equity because of a tax issue. >> this is a relevant issue as we look towards tax reform. >> the bigger issue is looking at the entire code. there's $2.5 trillion of trapped cash overseas. that doesn't make sense for america, it penalizes you -- if
we have companies overseas, if it costs 5% to bring cash back, we are funding factories in other countries. i think the trump administration and any administration should do a bipartisan approach. that's low-hanging fruit. there should be a better process for bringing that money back into america. >> we have to leave it there. thank you very much for joining us. stephen pagliuca joining us. >> the celtics are doing well, right? >> celtics are on a fantastic run, led by one of the shortest players in the nba with one of the biggest hearts. >> good to see you. coming up, we sit down with well known economist nouriel roubini. he's been sounding alarms on the trump presidency and brexit. we've been making the most of our week here after davos. sara put all of her currency
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welcome back to "worldwide exchange" live at the world economic forum in davos, switzerland. xi jinping speaking here yesterday defending globalization and free trade. he did not mention donald trump by name, but much of his speech certainly seemed directed at the u.s. president-elect. xi warned other countries against pursuing their own interests at the expense of others. with us now in davos to talk trade and much more, nouriel roubini chairman and ceo of roub roub roubini macro associates. your level of doom right now as we look forward to some of the economic policies, not just on trade but on taxes, and on the domestic economy from a trump administration is what? >> it's pretty high in the following sense. the market is going higher, but think about his economic policies. he's been elected by the tax policy, regulatory policy, going to lead to fiscal stimulus, higher long-term interest rates,
strengthening of the dollar will continue. that will hurt manufacturing. therefore the supply side trickle down economic policies will not help the white working class, it will lead to a strong dollar, bash globalization, trade and immigration. i think there's inconsistency between trickle down on one side and protectionism on the other side. >> in terms of the interest rate rise, is your criticism of that an inequality aspect, or a bad rise in rates, and fiscal spending, it's the wrong time to approach that. >> when economy is close to full employment if there is fiscal still laws still laws of 2% of gdp -- you had the crowding out of real estate last time, and the fed could not exit the qe. so the same thing could happen right now. for now the market is going higher, but i think if the
fiscal stimulus becomes excessive and leads to the rate rising, the dollar will strengthen more so. donald trump said he saved 1,000 jobs in indiana, but the rise of the dollar based on the fed model, %, will lead to 400,000 j jobs being lost in manufacturing. if you think about the fiscal stimulus, the repatriation tax, the protectionist policies, all of this will lead to a strengthening of the u.s. dollar. what will be driving the dollar is loose fiscal, tight money, strong dollar and protectionism. >> the fed might slow down its path of interest rate hikes, that could calm the dollar down. >> if the dollar is going to be strengthen excessively, the fed might hike rates slower than otherwise. if you have a fiscal stimulus that pushes the dollar much higher, that will lead to a
situation which will be hurting manufacturing. the fed will have to go more slowly. but inflation may rise if it is seen as excessive and it will force the fed to tighten more than the markets are currently expecting. trade arguments aside what is your view on china? there's a feeling i think that this year compared to last year that asia is not an issue in 2017. u.s. markets are relaxedmarket. what do you think? >> if there's a slowdown of growth, they'll do what they have done the next few years, more bad assets, more bad debts, more leverage, so the chinese are talking about structural reform, but because of political strengths they're not doing it. that's good for the short run, but in the medium term it means a harder land for the chinese economy. >> i will push back on the view
for just a moment. if the rest of the world is improving, including china you have in the u.s. this sort of excitement from businesses -- i mentioned the confidence surveys. the fact that regulation, according to executives and inveri investors that we talked to is strangling companies, they that will be loser, you don't have a congress that can get anything done because they're deadlocked, you might have tax reform with favorable ramifications for business, why isn't all of that good an actually positive for the economy as the market indicates? >> the stock market is happy because you have fiscal stimulus and short-term earning increases economic growth, it will cut taxes for the top 1%, cut corporate taxes, it is going to cut the state tax to zero, reduce capital gains taxes, there's regulation on labor, energy, environment. the stock market is going liar.
if you do a fiscal stimulus that is excessive, you have rising interest rates, strong dollar, then the market will panic, and you will start trade wars with the rest of the world. with mexico and china. in the short-term, growth is rising. the stock market will rally. if these economic policies are not consistent, then eventually the market and the economy will turn around and good to waste. >> so your end game here, as you predicted, is a trade war? >> a high likelihood of a trade war based on what has been said. xi jinping said free trade, free globalization, the leader of the biggest capitalist country in the world is talking about bashing free trade markets.
it's not going to be good for the market. >> let's round things off with a specific question on the uk. we had a speech from theresa may yesterday what did you make of that. do you think the pound continues its bounce from here? >> i think that essentially the uk is going to have a full break with the union. there's going to be a significant effected on real incomes and consumption coming from the weakening of the pound. i think reaching an agreement will be hard. you might be stuck in a single market, overtime rather than recession, there is the risk of stagnation in the united kingdom over the next few years. >> donald trump sort of casually mentioned that other countries could follow suit leaving the eu. the economics are difficult in europe. as an economist, do you share that view? >> the economic situation is difficult. last year it grew faster than
the united states, 1.7 as opposed to 1.4. it's been the basis of economic prosperity and peace for the last 70 years, now we're saying nato is observe lawsuit, the euro will destroy itself. i think these talks are very dangerous. >> thank you very much for joining us. >> nouriel roubini joining us. still to come, the must read from the swiss alps. later on "squawk box," another great lineup of newsmakers. joe, becky and andrew will catch up with larry summers, blackstone's ceo, steve swartzman, ray dalio and many, many more. stair tuned, you're watching cnbc, first in business worldwide.
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welcome back to "worldwide exchange." you've been listening to and watching our live coverage from the world economic forum in davos, switzerland. let's get you up to speed on some other stories we're watching here on this wednesday. shares of csx, the rail, dipping in the premarket after the company posted missed quarterly results. profited declined in the fourth quarter as the rhey felt the ef lower commodity prices. united airlines out with disappointing numbers, lower fares, and an increase in labor costs. and the botox maker, allergan will pay a $15 million penalty and admit to wrongdoing after being accused of failing to disclose their 2014 merger talks with activist investors.
let's toss it back to davos, switzerland. >> dom, thank you very much. we are here at davos at the world economic forum. >> the sun is out. >> it's beautiful. freezing. i want to hit the banks. they are reporting this morning key driver in yesterday's market, what are you watching here with goldman and some other banks. >> the absolute key on this is the guidance, the comment tear. q4 itself blow out quarter, big numbers, jumped in the premarket. the guidance was not good enough, that partly played into the big bank selloff yesterday. front row see the, jamie dimon and lloyd blankfein coming up later today. >> the dollar driving the center of the action. declining sharply yesterday in trade with all of this talk of protectionism and trade wars. it's going to mean the currency also go on wild moves.
good morning from davos, switzerland, where it's about minus degrees. welcome back. live from the world economic forum in davos, i'm joe kernen along with becky quick and andrew ross sorkin. we have another big lineup this morning. including tobey cosgrove, actor forest whitaker, blackstone chief steve schwarzman, that's just in the first hour. we also have goldman and
citigroup. >> yeah. we will be talking about them. they're on deck today with earnings. >> will you get us caught up on the markets? >> let's look at the markets. we are in davos, switzerland, a lot of the talk coming out of here has been about markets. yesterday we saw moves in the currency markets, especially with what theresa may had been saying. the dow futures are indicated up, up about 19 points. s&p futures up by 3. the nasdaq up by close to 10 points. >> let's take a closer look at what's on the docket today. a number of things we'll be paying attention to. we have december cpi, it's out at 8:30 eastern time, followed by industrial production at 9:15. at 10:00 a.m., let's see, the monthly sentiment survey from the national association of home builders, that's coming up. the fed releases the beige book at 2:00 p.m. janet yellen is speaking in san fran