Its missile capability without seeking permission from the International Community. One report says the country unveiled a new Ballistic Missile capable of carrying several warheads a live report coming up in a moment. Joining us now lets do it right now, joining us on the squa squawk news line from tehran is ali arouzi. Good morning reporter good morning. President rouhani after returning from the u. N. General assembly attended a massive military parade in tehran where he said iran will strengthen its missile capabilities they wont seek permission from any country to do so that is a reference to u. S. Demands that iran curb its Missile Program and to reinforce the statement the revolutionary guard during that military parade unveiled a new Ballistic Missile, which they say has a range of 1,200 miles its capable of carrying multiple warheads. As you guys are well aware, President Trump has accused iran of playing a destabilizing role in the region. But rouhani in his speech this morning said iran is playing a key role of restoring peace and stability in the region and said iran will always defend downtrodden people of yemen, palestine whether the u. S. Likes it or not. He went to slam washington in statements at the u. N. General e assembly by saying the u. S. Has singled itself out with the statements i think we can expect more tension Going Forward between iran and america as the United States tries to renegotiate the nuclear deal i can tell you theres no appetite in iran whatsoever to renegotiate the nuclear deal in any form i think a lot of tension to watch out for between iran and america again. Back to you. Well leave it there, ali thank you for that report. Lets get a check on the markets as geopolitical concerns display themselves and how were trading around the world a look at u. S. Equity futures, the dow snapped a nineday winning streak it looks like it could be in positive territory today. Looking up about 7 points at the open the nasdaq down about 5 1 2 points earlier this week, Msci Asia Pacific was at a decade high in asia we saw some losses across the board down by a quarter of a percent on the nikkei, 0. 8 for the hang seng shanghai down 0. 15 . In europe, most indexes are up a look at crude, wti down by 0. 10 . Now to the wall street agenda two economic reports to watch. Manufacturing and services pmi out at 9 45 a. M. Eastern time. Also a lot of fed speak. Well hear from john williams, Kansas City Fed president , Esther George and dallas fed president robert kaplan. Internationally, well hear from theresa may today, thats later in the morning shes in italy she will deliver a major brexit speech and try to rescue those stalled brexit talks and try to convince the eu shes ready to cut a fair divorce deal. That speech is expected just after the end of squawk, about 9 15 eastern germany heads to the polls on sunday for a nationwide election to decide whether angle merkel has another four years in power. Right now merkel is leading in the polls. Well get the first results sunday around noon eastern also on the agenda, round three of nafta negotiations gets underway in canada well hear much more about the talks from the commerce secretary, wilbur ross, who will join us on set at 7 00 a. M. Eastern. Back to the broader markets. Here on set is steve wood from russell investments, and bob michelle from jpmorgan Asset Management great to have you with us. Steve, starting off with you where are we in this market . Especially as were seeing some rotation, perhaps cracks in the rally. We have apple, for instance, down to sevenweek lows that had been a leader in technology, which was a leader for the markets. That concentration in Market Performance has been something weve been watching. Weve been thinking for a good while that valuations are the critical issue in u. S. Markets fundamentals look good the earnings are great probably falling back to not bad. Moving into the fourth quarter, we think valuations become more of a headwind in the u. S for some time weve been advising clients to go more global, multi asset and use the assets in the u. S. To diversify globally, do the basic planning investing they should have decision doing do rising rates influence that view or did you have that prior to the fed meeting we had it prior to the fed meeting. The fed always educates everybody on everything. I think the policy information we got this week from the Federal Reserve in terms of the options they got iss will stay u this is a global event so this could investigate momentum in the shortterm in the u. S. , but it could rebalance globally what does happen with rates it feels like the fed lays out its plan for rising interest rates, we see a spike in yields, then a fall back we started seeing that yesterday. Theyve been raising rate foors coupkrates for a couple of years. The ecb talking about normalizing policy i thought the fed was perfect this week. The three things i took away, they realized unconventional tools have expired get them out thats a combination of Balance Sheet and rates. Theyll work on both of them two, that the Balance Sheet is not going to be an ongoing policy tool. Theyll let it run in the background, let it run to a normal size, and it would be a high hurdle in their own words to dial that down. The third thing i took away, dont Pay Attention to the dots. The population of governors that put those dots out are going to change over the next couple of the disparity of the dots was greater than in past meetings. I dont even waste my time looking at them. It was intellectually dear use, but you have seven seats being replaced who knows what theyll look like and how theyll adjust Monetary Policy thinking of u. S. Companies and comps for next year, in terms of the valuation issue, how bad for those who are out there who are long and who are believers, how bad do you think it will be a lot of the earning strength is on base effects, a lot from energy as well we think earnings in the u. S. Will come off the boil starting next quarter into the end of the year so i think the earnings environment mid Single Digits makes sense for 2018 e the evaluations now that were seeing in the u. S. , you are making an enemy if you overplay that if youre looking at europe, looking at emerging you have no worry if you put all your money in europe, we always say whats the phrase, well catch a cold if you think were about to get a cold, that ultimately they get the cold too andrew, were seeing the complete reverse in the fixed income market. Everyone is talking about international, but ill tell you, in fixed income the capital being exported out of asia and out of europe is enormous. And its flooding our bond markets, its depressing real yield. Everyone is coming to the u. S. In the bond Market Equities may be a different kettle of fish, not in bonds look at the European Economic cycle, they are early stage, we are later innings in the u. S the European Central bank will be in accommodative mode for a while. When you add up the cost benefit, Going Forward theres more mileage you can get out of europe but look global, look emerging, look global credit its not just an equity play, its a multi asset play. As the United States gets longer in the tooth this is a Good Opportunity to rein some of these gains and rebalance. If they had done that in the previous decade, they would have benefitted from that disciplined strategy what if rates stay longer for longer i think the rate also stay lower for longer thats one of the fundamental financial rules of gravity that investors need to deal with that global strategy will have to be active and nimble. Youre not scared theres an upside risk to that in terms of what the fed does, if there is fiscal still plus were more concerned about the Balance Sheet than rates thats the liquidity thats inflating all asset prices this time next show Balance Sheets go from expansion to contraction. Last word lower yield environment is unlikely go away were pushing into a decade and a half of this environment bob, steve, thank you news just crossing the wires. Londons transport regulator says it will not renew ubers taxi license in that city. That means the Ride Hailing Service wont be able to continue to operate in london. The regulator says ubers conduct demonstrates a lack of Corporate Responsibility in relation to a number of issues which have potential Public Security and safety issues uber has 21 days to appeal that decision but a big hit given that it really is the second largest city in the world when it comes to taxi service. Huge debate in the city for a long time about what it was doing taxi drivers medallion prices in new york have gone down in london the incomes of so many taxi drivers have come down. They go through the knowledge i dont know if youre aware of this. Virtually tour guides they spend 18 months, 3 years going around on mow pedestriaper bikes learning the maps of everythi everything this is a win, i guess, for the taxi drivers today well see where this goes. Did you read if they cant compete in london its an important city. They have the seats that come down that face the opposite way. You like trix. Right did you see this article here i dont know what youre referring. They did what you wanted, they started selling allnatural trix made of radishes, purple carrots, and tumarec, it totally bombed for coloring. For flavoring, too. Ugh they changed it back. I know what youre talking about. Theyll use red dye number 4, blue number 1, yellow 6, and High Fructose Corn Syrup back to the original twixt how do you say quinoa totally moving away from did you see a bowl of look at the difference in colors. I like trix you know, i dont know if its going to have a delayed if its going to kill me after eating those when i was a kid. I thought i was fine from those. Who would put radishes, purple carrots and tumerac in a nice, sugary cereal. The pendulum is swinging back. Why is that your cause . High fructose corn syrup. Thats terrible for you you should not be advocating this. I know. I know i cant believe im still alive. I cant believe Warren Buffett is alive did you get sleep last night . Kim jongun says deranged trump will pay dearly for threats. And political analysis from mike allen hell join us. The executive editor of axios. Squawk box returns in a moment what should i watch . Show me sports. Its so fluffy look at that fluffy unicorn hes so fluffy im gonna die your voice is awesome. The x1 voice remote. Xfinity. The future of awesome. We had a war of words but also tightening economic sanctions from the u. S. Side there were u. N. Applied sanctions on september 11th. Yesterday the United States in an executive order from trump announced tightened sanctions on its own. Here are the specifics in terms of trade and Financial Institutions on trade it targets shipping and trade networks theres a 180day ban on vessels and aircraft that visited north korea. Bans them from visiting the United States in that time period it targets Industries Including construction, industry, textiles, mining, manufacturing. It gives treasury the authority to impose sanctions on any Foreign Financial Institution that is conducting business with north korea. And also the authority to block funds that are originating from, destined for or passing through accounts linked to north korea that is an expansive new package of authorities for the United States treasury to use against north korea. Importantly, though, the u. S. Government said that the Chinese Central Bank had sent a message to chinese banks requiring them to abide by those u. N. Sanctions. That could be an important area of cooperation between beijing and washington all of that frustrating to pyongyang. The inconorth Korean Leader iss a statement. He said on behalf of the digny and honor of my state and people on my own, i will make the man holding the prerogative the supreme command in the u. S. Pay for dearly for his speech calling for totally destroying the dprk, i will surly and definitely tame the mentally deranged u. S. Dotard with fire we will see if this results in another nuclear test, Missile Launch or several other things weve seen dotard, huh an old and dottery person weak, senile. Did you have to look that up . I did you did yeah. You knew. I knew it yeah several people in my life qualify. People say you work with kernen, you say no, no, no i would never say such a thing you think that was a was that translated into dotard or i think its a translation issue. Im not an expert on north korea or their language, but i think its a translation thing maybe a result of the north koreans using flowery official lank w language, thats why it gets translated into more flowery english. All the top stories about dotard, heres what it means Business Insider he wrote a peace. Dota doctor, old lunatic cnn says the north Korean Leader choose their words carefully it is something that people did sort of have the same response did you see the folks at the dictionary company, i think m e Miriam Webster said searches for that word skyrocketed on the site were all learning something together here. They have a Hydrogen Bomb the last one was more powerful than the previous one. All of the fingerprints that show truly that theyve mastered that technology wasnt there, i dont think. So the question is would do they havedwlash ds and they test to shot world what they have publicly you could see an escalation here in the statement the north Korean Leader threatening to go to the maximum extent of their capabilities implying they have Something Else up their sleeve not clear what that could be i guess we will talk to wilbur we have the commerce secretary, wilbur ross on. Trying to figure out what this means, if the Chinese Central Bank really is not going to fund north korean banks that sounds like a problem i would be so serious curious as to get his take on this what the Chinese Central Bank is saying to chinese banks broadly is that they ought to stay out of the north korean transactions if thats real, it could be a serious problem for north korea in terms of getting access to the Global Financial system through those chinese banks. Is this being delivered with a wink and a nod, or do they mean it how does the United States determine that those are all interesting questions. He might have some answers thanks. You bet coming up, the third round of nafta negotiations kicking off today. Wilbur ross has a new oped making the case for an overhaul of the trade deal. He will join us at 7 00 a. M. First a report from washington on the progress of deal talks and some potential aticking points. Ths next. Take out the trash . sigh dad molly trash whoo mom hey, molly . Its time to go bell ringing class, lets turn to page 136, recessive traits skip generations. Who would like to read . molly i reprogrammed the robots to do the inspection. Its running much faster now. See . Its amazing, molly. Thank you. welcome back youre watching squawk box live from the Nasdaq Market site in times square. Good morning welcome back to squawk box. Look at u. S. Equity futures at this hour. Well show you whats going on s p 500 looks like it will open off down marginally. Nasdaq down as well. About 4. 5 points dow jones looking to open higher close to 7 points higher breaking news overnight. North koreas foreign minister threatening to detonate a high kro j Hydrogen Bomb over the pacific oce ocean, china stepping up sanctions against north korea. The white house saying the peoples bank of china ordered all banks to stop doing business with north korea news breaking a few hours ago. Irans president said his country will strengthen its missile capabilities without seeking permission from the International Community. One Iranian News Agency is reporting that the countsry unveiled a new Ballistic Missile capable of carrying several warheads for more on the headlines out of washington, we bring in axi axioss cofounder mike allen. Great to see you happy friday. A lot to talk to you about i want to talk too you about facebook, taxes. I do want you to comment if you could on this latest threat from north korea and what you think is going to be going on inside the white house this morning as they wake up to that news. Andrew, inside the white house they may talk outside about immigration or tax reform, but as your viewers know, north korea is the issue that matters. People close to the president say this is going to wind up being the issue that defines him. They talk about it in very grave terms. And now you have the war of words continuing the worry is that this this north Korean Leader who senator mccain calls the fat