But were holding down the fort. Japans nikkei reopening after yesterdays Public Holiday and it plunged. 4. 8 . It closed at its lowest level since october 2014. The index is down in seven of the last eight sessions. That is coming as the yen has been rising against the dollar and it comes after yesterdays big selloff in the u. S. This years lowses have erased nearly 1. 8 trillion in value for investors just on that index. The s p is down 10. 5 since the first trading day of 2016. But u. S. Equity futures are rebounding this morning. Part of that is because of firmer oil market. Take a look at what crude is doing. It is bouncing back today following Late Afternoon comments by an opec Energy Minister from the United Arab Emirates that sparked hopes of a coordinated production cut. And though weve heard this story before and havent gotten anything out of it, the markets are interpreting that as a positive. Wti he crude currently up nearly 4 . 27. 21. Brent is sitting above 31 a barrel, up nearly 4 . But we are gearing up for a potentially volatile session next weeks. Markets in china will reopen monday after a week long holiday. U. S. Markets will be closed for president s day. It could make for a wild open on wall street on tuesday morning. Do you have a lot of traders who tend to be really keeping their eye on their trading screens, starting on, you know, 6 00 p. M. Or so the night before. Yeah. Well see what certainly happens, especially given what the japanese markets have been doing. On todays economic calendar, january retail sales out, 8 30 a. M. Eastern time. Sales expected to have edged up slightly last month after dipping in december. Well get january import prices at 8 30 a. M. And then at 10 00, we get february Consumer Sentiment and December Business inventories. Bill dudley speaking at about 10 00 a. M. On Household Debt and credit. Jamie dimon reportedly buying 500,000 shares of his Company Stock recently. Thats worth 25 million. Jpm down nearly 25 this year matching the overall performance of the stock index. Dimons purchase is noteworthy because its only the third time hes bought shares on the market in did 12 years. Now back to joe and becky in pebble beach. It is a nice set you guys are on. Isnt it . It is. Amazing. Now lets get another check on the markets this morning. Were doing a lot of this. Obviously, oil is a little better. Thats helping the futures. But after what weve seen, the beginning of the year, we know that 98 points is not what it used used to be. Thank got 200 is not what it used to be. But 98 well take in the morning. But it doesnt mean anything about where well close the end of the session, especially on a friday. Weve got a little bit of a bounce this morning in europe after another horrific session yesterday. Take a quick look there. Then the ten year, all of these things, watching them out here, mind boggling. I think mark rand said 1. 5 . 1. 35 is the level we hit yesterday. It sounds ridiculously low until you look at the sorchbs debt in europe want or go to japan where the best laid plans didnt work out the way with it was intended. The dollar, what everybody was worried about this year, has not been really the problem, at least against the euro. But the yen with the negative Interest Rates and the flight to quality has kind of the open set of what policymakers were hoping for. Finally, it took the gold bugs a couple of years to be proven right, but im reading on some websites about lines around the corner to buy krugerand. Yesterday, gold watt at its highest level since february of 2015. Five years ago, we had to do the predicts at the beginning of the year and seven out of eight people said it was going to hit 2,000 that year and it never did. No. But its back at 2,000. For more on the selloff in japan overnight, lets get to slee standing by in singapore. How is everything going . Yeah. Japanese markets were punished this week. It was the worst weekly loss since 2008. And we saw the yen at 15month highs. Very bad news for the export sector. Toyota, honda got hit, as well. And then there are lingering concerns about negative Interest Rate policy by the bank of japan. What a does to a japanesemaker margin and profitability. Were not out of the woods yet. But next week, monday, q4 japanese gdp and the Chinese Market and the mainland are back onli online. Back to you. All right. Thank you. Hes in the middle of that mess over there. Joining us to talk about the volatile week in the markets, scott meyer, global chief investment officer. I dont even need to ask you a question, really. I can just say wtf. The way i look at it, scott, if we have a world that for years benefited from central bank policy, which can make things look better but not actually make things better, necessarily, when one place start saying maybe the end is near or goes in the opposite direction, im not saying it was the quarter point that does it, but when you live off that for five years, when its no longer going to work and when you see it hasnt change that. And it combs home to roost that were on our own. And i think thats what were seeing. For sure, joe. Basically, the central bank around the world have gotten themselves stuck in a game where they are forever going to have to hold large amounts of securities and keep Interest Rates low. We havent done anything, as you would know, on the policy side to deal with the structural issues. Weve done nothing in the United States. Weve done nothing practically in europe. Were seeing it now in the banks. We see it in Deutsche Bank where banks had opportunities to clean their bat shes off. They didnt do it. So we are still in a fairley precarious state around the world and Central Banks are the only game in town. So nothing cleared in the last selloff. Can you go back to 2008, 2009 . And if we try to mitigate the pain back then with all of this central bank, these extraordinary measures, and now who is going to bail us out this time. Theres no Central Banks on mars, right . This is all we got, right . Well, this is the only game in town right now. And i think were starting to see that the Central Banks around the world are upping the ante. The move to negative Interest Rates, the move to try and put more and more liquidity in the system with a means to jack up asset surprises to keep the world aflowed is distracting. Tlgs a big piece in the journal about the credit isnt getting out to where it needs to go. More credit is not yeah. The banks are paying the Central Banks paying banks to hold assets and theres, you know, savers arent making any money. Weve tried this. Weve tried this for seven years. We see where we are. What was last years gdp in 2015. Why keep doing the same thing if youre expecting a different outcome . I think thats the definition of insanity. But look, the rope theyre stuck here is congress isnt doing anything. What do you Want Congress to do . Except for i mean, both sides have different ideas. One side wants, you know, to spend another 1 trillion on infrastructure. Right. The other side wants Corporate Tax reform and to get rid of some of the regulations weve piled on top of already piled on regulations. Which is the right way to go . I would take it all. You would do both, 1 trillion and another trillion to well, you know, its interesting. We take on a trillion of fannie mae and freddie mac and we dont count it os part of on our debt. But if we took on 1 trillion worth of infrastructure debt can, then we would count that. So my view is that the raelz reality is that the government should stay out of the business of building the infrastructure. We should run off fannie mae and freddie mac, right . When you go to a bank today, i can get a conventional mortgage at a rate under 4 . But it doesnt conform. So why do if banks are willing to lend money below 4 for mortgages, why do we need a u. S. Government agency . The thing that you have a problem with all this, scott, is that the sudden hi we can make bolzmakers around the globe for not doing something in the past couple of years. Now, we got along fine with socialist europe for the past 10, 20 years. We got ahopping fine woun the government or congress doing things to make the economy work better. So this is all happening in a concerted fashion at once because governments arent doing enough . Im not saying government is not doing enough. The structure of things in europe and but look at dog fray. Its a fight mayor im not saying theyre not doing enough. Theyre doing the wrong stuff. And we need to get oh back ma care. Go down the list of things. The Supreme Court finally had to step in and say enough with the executive action, right . We need to lighten up the regulation on the banks. We need to let them price loans in a way that makes rational sense rather than having this convoluted thing we call macro peru tental policy which is a spaghetti of regulation. Lets talk about what is happening with the markets. The markets are signaling theres a recession coming. In the wall street journal, theyre saying theres a 350 chance of recession. If you add in the Economic Data, it gets you back to a 25 chance for recession. Which is right . I think you have to be careful that we dont have correlation related to caution ace. Risk asset hes likes stocks, like junk bonds go down in price when economies go into recession. However, if risk assets go down in price, that doesnt necessarily cause a recession. So when you go back to periods like 1987 or 1987 to 1998 where we had severe bear markets, yet at the same time we didnt have a recession. You would say, why didnt we have a recession . Because the policymakers ended up reversing court. In 98 during the asian crisis, the Federal Reserve lowered rates and i think that ultimately policy measures are not going to sit back and let a recession happen and they will do whatever they have to do and that could include the Federal Reserve reversing court. It could mean that joe will get his wish and well do more quantitative easing. And then i wonder about the whole political back drop and whether any of that is you know, people like to ascribe some cause and effect there, as well. You do have one side talking about not less bank regulation, theyre talking about all bankers should be in jail, the whole Capital Market system that we use here were questioning. And on the other side, you have equally extreme views and maybe in certain areas. That helps the current, as well. B but, i dont know, the notion that were going to im portion a recession, i dont know how many people have said, look, with here in the United States, things are fine. The consumer is fine. The auto sales are fine. The housing sales are fine. This is the best house in a bad neighborhood. No reason to in this. And suddenly were watching it on a daily basis import the weakness in the rest of the world and all these people might be wrong. Look, youve always got the chance of being correct me if im wrong. Ir personally always question myself. But in the port war period, every recession in the United States has been a result of Monetary Policy. I think its twitter, social media from around the world. Because . About because we can import everything right now because its all instantaneous. The world has gotten smaller, globalization is more prevalent and we seem more connected. Were at 4. unemployment. Were at 1. 5 on the ten year and thats bureauly because of being dragged down by the rest of the world rates. And probably going lower. And probably going lower. So if you think rates are going lower, what do you do right now . Are you buying stocks . Look, in the respect that i said in davos, im sort of in the howard marx camp, which is risk assets are getting so cheap that you have to start putting money to work there. But, you know, the other side of it is if your risk budge, whatever that is, you shouldnt be fully invested. So one of the things that were looking to do is buy call options on treasuries. As an offset to the deterioration in the credit market. But i think for the average investor, catch isnt a bad place to be right now. Opportunistically, i would be putting money to work, especially if youre a retail client. You can look at things like closed down funds that are yielding 13 , 15 and if wefth the recovery thald expect sometime in the second half of the year, youll be well pleased to own it. And people say theres nothing this time around system ekly or existentially dangerous to us. I dont know whether the European Banks are enough of a problem. I dont know how many cvss theyre holding on to. But the last time ben bernanke himself told you subprime isnt big enough to take us down. We never know whether something is big enough to take us down. Is there Something Big enough to cause the threat to the Global Financial system that we dont know about right now . Yeah. The i mean, joe, you certainly have risks in European Banks system because they didnt clean the mess up. But vs having said that, the policymakers today as oppose dollars to seven years ago, five years ago have a mechanism to step in and resolve the issue. Now, you know, the question about some of the cocoas, the contingent coupon bonds in europe, this was spoef to give us cushion so we could shut off Interest Payments. My view is if we stop paying the Interest Payments on the contingent debt of any bank, that bank is gone. So the then that the policy measures have invented to turnon us from a down turn might be the thing that causes the crisis. To david stock to know and just the idea that, you know, its been all Central Banks for the last five years and weve paid failure a lot of prosperity that they didnt deserve, perhaps. And now were not going to be able to service the dealt thats built up. The world only ends once and were always talking about it happening. It will happen at 450 co2 parts per million, i guess. Anyway, with weve got that going for us, as well. Thank you. Much more from scott throughout the next two hours. The futures at this point, if we can show the board, you are looking at the futures, the s p 500 futures up by about 14 points above fair value. Also, you can see the dow futures are up into triple digits. When we come back, up 4. 5 in yesterdays stock market selloff. Dennis gartman gives us his read on the fly to safety. Next. Were the hottest Young Company around but if we want to keep the soda pop flowing we need fresh ideas got it. We slow, we die. What about cashing out . No im trying to build something here. How about using fedex ground for shipping . I dont need some kid telling me how to run a business ive been doing this for 4 long months. Fedex ground can help us save money and deliver fast to our customers. Not bad, kid. You remind me of a younger me. Aiden the dog is eating your retainer again. Lets take a short 5minute recess. Fedex ground is faster to more locations than ups ground. All right. Welcome back to squawk box. Were going to get back out west to joe and becky and pebble beep. In the meantime, lets talk gold. It is stapling a km back as equities remain under pressure. Price of gold right now, that is where it is right there, 1242. Had its biggest oneday move yesterday since the crisis. So it sort of gives you an yp idea what kind of assets people have been flocking to lately. Hey, dennis. Good morning. How are you . Im good, thanks. So talked to mark cuban yesterday miss day and he said he was buying way out of the money calls as a momentum trade. Not necessarily for the fundamentals, just trying to ride the momentum. Is there more room toug. Do i think its a wise move over the next three or four days or so . Probably not. Having been bullish of gold in yen terms and bullish of gold in gold derls for the past several weeks, i have to say having taken spot gold to 1250 yesterday, would it tell anybody to buy gold this morning . No, i wouldnt. I think that would be ill advised. It has been a sporty run to the up side. The public hat suddenly gotten a little interesting and that is a good reason to say i bes bet we settle backwards, go back down to 1225, 1215 or so. Is that because you think the stock market sg go to have a bit of bounce here . The stock market needs to have a bit of a bounce. Today, you might get a little bit more than that. Its a long weekend. The stock market has been under duress. A correction in gold is probably necessary. Before a long weekend, before the president s day holiday, a movement in the other directions that have prevailed for most of the week will probably occur. It shouldnt be unexpected. Its very normal. Its usually what happened. Youve seen the the correlation as clear as day every day, dennis, between oil and the market. You only need a really regarding opec and you can see what happens not only in the commodity itself but ekds. Would you believe anything that you hear . Do you think opec is ready to make a move and cut production . If you had told me that several days ago, i would say likely not. But the fact that the fellow who has been most adverse to change who has been absolutely opposed to a meeting has change his tenor a little bit. Most of their production comes from siberia. They cant shut those wells off because theyll freeze have have to be redrilled. So do you think the meeting is going to be held . Probably. Will anything come of it . Maybe. If an agreement is made, do i think theyll all agree to it and follow through . Absolutely not. Whatever opec says about curtailing product, never comes to fruition. Everybody cheats. Yeah. You learn that opec cheats. Tt margin, can you expect venezuela to follow through even though venezuela is having for a reduction in production . They cannot. They wont. All things considered, that is a surprisingly optimistic tone from mr. Gart man. Yeah, shortterm. You expect t