Biggest monthly decline in a decade. Weve got the latest from a country already reeling. Absolutely. Better than the real thing . Alibabas jack ma says sometimes counterfeit goods are better than the originals. He outlined his plan for the chinese ecommerce giant. He said theyre basically the same goods made in the same factory. Well, the flip side of that, Signet Jeweler is under fire for diamond swapping. There was a bearish note on the stocks a couple of weeks ago. I think its a great deal of smoke. Some say, its old news and the company has intimated its not going to. So was formaldehyde at Lumber Liquidators until it was new news. Now the ceo is fighting back. In the meantime lets talk about the bridge it fears. Bob pisani measuring the brexit fear. Its brt breathtaking. Yeah, it is. Its a problem on both sides. Sort of a triple roymwhammy. Let me put up the bund here. Its been breathtaking. Remember, the bund yields were 2 going back to the early part of 2014. So its 2 . Thats putting all sorts of pressure on european banks. Youve got to throw in the brexit concerns here. Some of the big names Like Deutsche Bank and allianz and barclays. Its spilling on this side of the atlantic. Low bumds overseas mean they come here to try to buy our bond. That keeps the Interest Rate down. Key banks, Huntington Bank shares down. This just in the past five trading sessions. Even the big guys, citigroup down 7 , 8 , 9 . Lets talk about the double whammy. We talked about the triple whammy. Theres a third one for ugs financial systems. Synchrony financial said theyre seeing higher charges. That may concern theres a slowdown in the consumer even though they say theyre not seeing any significant deterioration in credit. This is spilling over as well into the banks a little bit. Of course, they have credit card portfolios as well. Lets call it a triple whammy. Bill mentioned the in the vix. Weve got from 15 to over 20 in the vix in just 2 1 2 trading sessions. Thats a huge move for the vix. Indicates theres a big, big demand for it. Bill, whenever you get that, of course, theres a sudden demand for people selling the protection. They turn around and say, wait a minute, maybe we want some higher prices here. Thats why the vix is going up. This is a tradeable instrument. Its a big business on wall street trading volatility these days. Guys . Well continue to track the polls. Now to the markets. Another big worry, the fed, as policy makers kick off. Today Steve Liesman takes a closer look at the direction of the economy. Stinky is that technological term. You know, 100 of our 41 respondents think the fed will not raise rates at this meeting. It did not include brian sullivan. Hes on the fed will raise camp. Let me show you why it will not raise. Half of them think because of the weak jobs report and half of them say the feds paying too much attention to the High Frequency data. 15 say thachlt interestingly to bob miss zani ice report 15 say because its brexit. 5 are unprepared for a hike. Moving on, why jobs were seen as weak, half say its a statistical blip. Its not reflective of the underlying trend. Others say its the beginning of the trend. What are the factors that are impressing the job growth. Well, its seen by 60 . Before all of you great mathematicians write in, it adds to more than 100. The economy being at full employment was at second choice. Higher minimum wages out there as a potential factor. Rising productivity and election uncertainty. We have a couple others on this side. The Affordable Care act, a skills mismatch. Fed tightening, and, finally, the rise of automation. All of this is online. Were looking to see how the fed adjusts their outlook for their own funds. Its come down, down, and down. The retail report was also interesting. On the one hand, the recent pace is okay, but on the other hand as pointed out, the year on year end decline. You match that with what sin cony said and you wonder whats happening. My next stop after this appearance is to look at that synchrony credit card report because all of the other data has shown that Consumer Credit default rates are at alltime lows. S p and iks peeriexperian has t. We know theres more employment, we know theres a bit higher wages. Not concerned how much there ought to be with potential consumer defaults. Well let you get though that report. Thanks, steve. Lets get to our Closing Bell Exchange for this tuesday. Meg green of meg gren associates. Greg and rick santelli. Meg, youre a voice of reason. Hi. As far as brexit goes, youre telling people relax. Why . Totally. Because first of all, even if they do vote and the vote becomes that they want to leave, youve got years ahead of you. Theres going so much, nothings going to happen instantly. Now, maybe some of the other countries will get hysterical, but the truth of the matter is when i look at the bookies, theyre not voting to leave and people that i know in england, theyre not saying that theyre leaving. I dont think youre going see this be a big deal. I think theyre going to see it come and go. Its another reason for the markets to have tantrum just like we had the paper tantrums. We had a million tantrums here. I think im depressed. People are flocking to cash. Stephen guilfoyle, at some point theyre flocking to that. Thats right. Meg is right. Its going to taketwo years to leave if they vote do so. My friends are in the leave camp. I think its pretty well split. Take a look at the cash levels. 15year highs. Thats good for stocks down the road. People are really scared. Theyre flying into sovereign debt. That becomes an opportunity. Guys like myself, we look for that. I dont see this as all bad right now. Where do you see the opportunities lining up, sarge . You know, not in financials, okay . Thats your most dangerous area right now. Weve seen that with i cant even say the word. Were seeing that with credit cards and Consumer Financial name, with the banks w real estate, anything that has to do with Interest Rates right now is a real dangerous spot. Im going to avoid that. We got into the technology play. We got into the energy names. That worked out real well. I was thinking about getting into walmart trade. It worked well for the guys that did it. So right now, were looking for the next good one. Rick santelli, what about these global bond deals . Is this going to be after what we learn britain decides to vote . I dont think an Interest Rate trajectory is going to change, even if the uk decides to stay. Sure, thats one of the turnstiles thats putting activity. Most of it is the u. S. The continuation of the negative rates, whether its jgbs or bunds or many of the sovereign securities, i think theyre not really the driving force there. You know, i wish i had the same calm as our guests do with regard to brexit. I dont look at how long its going to take to revamp laws or contracts or various treaties or trade agreements. That isnt the issue. The issue is quite simple. Weve seen a lot of experimentation, whether its on us from central bankers or brussels and the creation of the eurozone from the very beginning. That creation could be adversely affected in a major structural way if the uk decides to leave. It could be a crack in the foundation that starts to get wider as other countries go. So this is a huge issue and i think it transcends the uk and ive said it many times. I think the markets are ramping up, and i think thats just defiable, and when it comes to the vix, you know, in two weeks we move from 15 basis points to minus one in the boons . Theres something we ought to continue to Pay Attention to. Vix . Vix makes perfect sense. Everybody needs options. Options are insurance, and we need a lot of it right now. So let me ask it this way. Let me rephrase it a little bit. You feel that the fundamentals right now justify the fears that the markets are reflecting right now, right . Absolutely, a thousand percent, yes. Okay. By the way, i agree with that 100 . You did what . I agree that right now buying insurance is the best policy, that the move in the vix, the move in gold, these are justified. So, meg, does that have you altering we bring it back to what you said. Investors here, how much do they need to worry about this and how should they be positioning for it . Good investors take advantage of volatility. Always. Look at what we had. We had 20 town in small cap, energy, mlps and high yield energy, emerging managements. Look at whats going on here this year. It all is coming back. If you invest in things that maybe have slid a little bit and you think maybe theyll come back, i do not see a huge down here, you know. And in terms of Interest Rates, remember the fed raised the Interest Rates in december because they had to . There was no reason not to, but there was really no reason to . What happened with the Interest Rate that . They kept going with the natural rate. Thats where f what the fed is alonging to. You cant raise rates in my opinion with Something Like this with no reason to raise them. Did you see the performance of the Financial Sector the past couple of months . I have . Theres no reason to fear negative rates . Right. We dont. Wait minute. You think if they go to negative rates, we have to follow . It seems as though. We may get there. The bond market may actually get there. But were not going to go there because they go there. No. Theyre not going to oh, come on. Stop being so depressing. No reason to be depressing. My news 589 points on a threeday europe. Nothing to worry about there. Give us more specifics, if you woushlgsd on where investors should be . Only to wear, thank you. I do not invest in gold. Ive been wrong too many times. If you want to stuff gold coins away, great, no. Im wearing my gold. About what stocks . Stocks, i love. Financials, energy i dont buy sectors. Energy i have been baying because weve been in mls. Our portfolio is up 15 because were buying the right mlps. Were taking advantage. If you rotate it and i love munis. I still love munis. We can get 4 . Thats way better than stooe or 1. 6 if you want to go there. If you balance stocks and munis, im not crazy about the high yields yet, but ill get there, maybe. Thats actually a great point of the 40 billion dollars thats come, these where people are hanging out. There you go. We even got to go. Its a great discussion. Meg, rick, sarge, we appreciate it. Weve got to send it to dominic chu. Dom . Were watching whole foods. There was a letter issued by the Food Drug Administration to whole foods talking about their sanitary conditions in massachusetts earlier this year. The letter foe on to document a number of infractions dating toward the february, midfebruary area with regard to this year and possibly sanitary conditions at this plant. Tl news helped send some of the shares lower throughout the course of the day. We have reached out with regard to this one letter from the fda. They did receive an acknowledgement from whole foods saying they will correct these actions but they found it inadequate. Well keep an yeah on the storying but still an interesting story for a stock that many of us are familiar with, guys. Back over to, you kelly and bill. Thank you. The market is lower. The dow is down 106. The s p. The nasdaq is down 10. Alibaba is rising after the ecommerce founder jack ma tried to drum up investor support. It expects revenue to grow 48 in the current year. Wheel take a look at whether alibaba can deliver. Thats coming up. Also ahead, Venezuelas Oil production dropping in the past month as they fine. Well have a special report after the break. Youre watching cnbc, the first in business worldwide. R japanese is very good. Thank you. speaking japanese exactly. I can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. speaking japanese im a Customer Relationship my namanager with pg e. Er, ive helped customers like plantronics meet their Energy Efficiency goals. So you save energy and you can save money. Energy efficiency and the environment go hand in hand. And i love how pg es commitment to the environment helps a Community Like santa cruz be a better place to live. And being able to pass that along to my family is really important to me. Just being together and appreciating what we have right here in santa cruz. See how you can save energy at pge. Com. Together, were building a better california. Welcome back. Lets mention a few movers. Synchrony is on its biggest paste for a decline since going public two years ago. They expect a 20 to 30point basis increase point over the next months. It should lead to higher reserve builds. Synchrony was spun off from g. E. Back in july of 2014. Yahoo is rising on the report that private equity firm tpg is offering between 5 billion and 6 billion for yahoo s core internet assets. The bidding process is in its final weeks. Other suiters include verizon, at t, quicken loans founder dan gilbert and a partner between Sycamore Partners and venture capital, all of this according to bloomberging kelly. In venezuela, the situation goes from bad to worse. Opec oil is declining sharply. Michelle Caruso Cabrera joins us now. 2. 37 million barrels. Thats a decline of 21 thousand they were producing in december. Lack of investment, parts, workers, has led some experts to predict that their production will be down by half a million barrel as day by the end of the year. Theyve been in talks with china to get a grace period. Thats according to reuters. To say that venezuela desperately needs money from royal sails would be an understatement. Look at this. It shows people storming and looting a bacary in caracas because flour and rice are short. Crowds changt, we want food. Thronging super markets on a sadie basis. More than ten incidents of looting are occurring daily. Venezuelas political opposition is pursuing a recall referendum while he accuses the opponents of deliberately stirring up the trouble and seeking a coup. Back to you. I want to find where theres any ray of light in this. There have been rumors theyve had on occasion, a conversation with the imf, but never confirmed when i reach out to the imf. Theyre not a member or at least they havent paid the bills and as a result, they dont report data, et cetera. Its a mess. Theyre not seeking a lot of advice from a lot of the major institutions in the world. I guess theres some effort or there should be some political effort from other leaders in latin america to push for them to begin the political process that might replace the current government, but if that doesnt happen and the government has no money coming in, whats the next step . What recourse is left . It is chaos on the ground already as you can see from this video, kelly. Ive heard one person refer to somebody involved in the markets, refer to venezuela as the somalia of latin america at this point. To your point, if there isnt some kind of change in government, theres not an election for a while but there could be something done in the meantime, the Biggest Issue has been the opposition hasnt been able to unify. Theyve been pretty prak tured. Thats been problematic. What would come next afterafter. We have 30 seconds. The dow is back. We were back 130 points. Were down 73 right now. Nearly cut that in half. Still some time to go. And coming up the head of one of the biggest auto company, carlos ghosn speaks. The impact that it could have on his companys profits. And up next, look whos at the stock skparj, model, supermodel. Petra. Well talk about why theyre together. Theyll talk about the mission to build schools in disaster stricken areas. A great story coming up on closing bell. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Perfect driving record. Perfect. No tickets. No accidents. 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I kick box all the time. Are you going to be fighting . I fought last year. How did you do . I won. Youd kick my butt. Petra, everyone will remember you survived the graduate great tsunami in 2004 in thailand but since then you felt a need to give back. Youve built 150 home aurnlsd the world where its greatly needed. We started in 2006. We have built 130 schools in ten countries. And by the end of this year well have built over 150 schools so its amazing. Here we are with 130 schools and almost 1506789 but the need is so much greater unfortunately. Just amazing. When is this year . T